Tableau Software 10-Q 6 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information Statement - shares	6 Months Ended
	Jun. 30, 2018	Aug. 02, 2018
Document Information
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Entity Registrant Name	TABLEAU SOFTWARE INC
Entity Central Index Key	1,303,652
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Class A common stock
Document Information
Entity Common Stock, Shares Outstanding		70,047,244
Class B common stock
Document Information
Entity Common Stock, Shares Outstanding		12,896,296

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 611,091	$ 627,878
Short-term investments	301,054	226,787
Accounts receivable, net of allowance for doubtful accounts of $1,097 and $1,003	170,907	203,366
Prepaid expenses and other current assets	115,605	30,514
Income taxes receivable	778	673
Total current assets	1,199,435	1,089,218
Long-term investments	89,991	148,364
Property and equipment, net	95,603	106,753
Goodwill	42,530	35,083
Deferred income taxes	4,072	5,287
Other long-term assets	41,626	14,090
Total assets	1,473,257	1,398,795
Current liabilities
Accounts payable	3,829	4,448
Accrued compensation and employee-related benefits	75,129	96,390
Other accrued liabilities	54,745	37,722
Income taxes payable	1,986	4,743
Deferred revenue	320,305	419,426
Total current liabilities	455,994	562,729
Deferred revenue	15,615	28,058
Other long-term liabilities	53,686	54,385
Total liabilities	525,295	645,172
Commitments and contingencies (Note 10)
Stockholders' equity
Preferred stock, $0.0001 par value, 10,000,000 shares authorized; none issued	0	0
Common stock	8	8
Additional paid-in capital	1,256,854	1,168,563
Accumulated other comprehensive loss	(11,811)	(11,991)
Accumulated deficit	(297,089)	(402,957)
Total stockholders' equity	947,962	753,623
Total liabilities and stockholders' equity	1,473,257	1,398,795
Class B common stock
Stockholders' equity
Common stock	1	1
Class A common stock
Stockholders' equity
Common stock	$ 7	$ 7

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets Balance Sheet Parenthetical - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Allowance for doubtful accounts	$ 1,097	$ 1,003
Preferred Stock, Par Value (in usd per share)	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Class B common stock
Common Stock, Par Value (in usd per share)	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	75,000,000	75,000,000
Common Stock, Shares Issued	12,896,296	14,492,846
Common Stock, Shares Outstanding	12,896,296	14,492,846
Class A common stock
Common Stock, Par Value (in usd per share)	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	750,000,000	750,000,000
Common Stock, Shares Issued	70,044,042	65,969,499
Common Stock, Shares Outstanding	70,044,042	65,969,499

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues
License		$ 137,848	$ 103,296	$ 246,641	$ 200,540
Maintenance and services		144,441	109,584	281,855	212,246
Total revenues		282,289	212,880	528,496	412,786
Cost of revenues
License		4,626	2,942	8,580	6,209
Maintenance and services		30,599	23,723	59,070	47,111
Total cost of revenues	[1]	35,225	26,665	67,650	53,320
Gross profit		247,064	186,215	460,846	359,466
Operating expenses
Sales and marketing	[1]	144,150	124,160	282,556	242,178
Research and development	[1]	94,033	81,067	187,538	165,369
General and administrative	[1]	29,846	25,875	62,096	50,320
Total operating expenses		268,029	231,102	532,190	457,867
Operating loss		(20,965)	(44,887)	(71,344)	(98,401)
Other income, net		6,866	4,029	8,328	5,254
Loss before income tax expense (benefit)		(14,099)	(40,858)	(63,016)	(93,147)
Income tax expense (benefit)		(2,033)	1,664	(4,478)	4,022
Net loss		$ (12,066)	$ (42,522)	$ (58,538)	$ (97,169)
Net loss per share:
Basic		$ (0.15)	$ (0.54)	$ (0.72)	$ (1.25)
Diluted		$ (0.15)	$ (0.54)	$ (0.72)	$ (1.25)
Weighted average shares used to compute net loss per share:
Basic		82,247	78,511	81,647	77,966
Diluted		82,247	78,511	81,647	77,966
[1]	Includes stock-based compensation expense as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands)Cost of revenues$3,299 $2,790 $6,286$5,367Sales and marketing22,150 18,526 42,16536,618Research and development26,837 25,648 51,99449,163General and administrative6,026 5,150 13,63010,161

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Operations Parenthetical - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Cost of revenues
Stock-based Compensation Expense	$ 3,299	$ 2,790	$ 6,286	$ 5,367
Sales and marketing
Stock-based Compensation Expense	22,150	18,526	42,165	36,618
Research and development
Stock-based Compensation Expense	26,837	25,648	51,994	49,163
General and administrative
Stock-based Compensation Expense	$ 6,026	$ 5,150	$ 13,630	$ 10,161

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Loss Statement - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (12,066)	$ (42,522)	$ (58,538)	$ (97,169)
Other comprehensive income (loss), net of tax:
Foreign currency translation	(1,314)	(6,384)	(728)	(7,208)
Net unrealized gain (loss) on available-for-sale securities	74	0	(775)	0
Comprehensive loss	$ (13,306)	$ (48,906)	$ (60,041)	$ (104,377)

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities
Net loss	$ (58,538)	$ (97,169)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization expense	19,050	23,837
Amortization of premiums on investments, net	137	0
Stock-based compensation expense	114,075	101,309
Deferred income taxes	(3,965)	465
Changes in operating assets and liabilities
Accounts receivable, net	31,490	72,493
Prepaid expenses and other assets	(44,925)	19,519
Income taxes receivable	(125)	(97)
Deferred revenue	(3,893)	30,072
Accounts payable and accrued liabilities	8,663	(16,421)
Income taxes payable	(2,713)	523
Net cash provided by operating activities	59,256	134,531
Investing activities
Purchases of property and equipment	(11,076)	(33,860)
Business combination, net of cash acquired	(10,947)	0
Purchases of investments	(156,591)	0
Maturities of investments	139,685	0
Sales of investments	99	0
Net cash used in investing activities	(38,830)	(33,860)
Financing activities
Proceeds from issuance of common stock	25,581	21,646
Repurchases of common stock	(60,013)	(40,014)
Net cash used in financing activities	(34,432)	(18,368)
Effect of exchange rate changes on cash and cash equivalents	(2,781)	1,884
Net increase (decrease) in cash and cash equivalents	(16,787)	84,187
Cash and cash equivalents
Beginning of period	627,878	908,717
End of period	611,091	992,904
Non-cash activities
Accrued purchases of property and equipment	$ 2,513	$ 1,875

Description of Business

Description of Business	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Tableau Software, Inc., a Delaware corporation, and its wholly-owned subsidiaries (the "Company," "we," "us" or "our") are headquartered in Seattle, Washington. Our software products put the power of data into the hands of everyday people, allowing a broad population of business users to engage with their data, ask questions, solve problems and create value. Based on innovative core technologies originally developed at Stanford University, our products dramatically reduce the complexity, inflexibility and expense associated with traditional business intelligence applications. We currently offer five key products: Tableau Desktop, a self-service, powerful analytics product for anyone with data; Tableau Server, a business intelligence platform for organizations; Tableau Online, a hosted software-as-a-service ("SaaS") version of Tableau Server; Tableau Prep, a data preparation product for combining, shaping and cleaning data; and Tableau Public, a free cloud-based platform for analyzing and sharing public data.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial information has been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet data as of December 31, 2017 was derived from audited financial statements but does not include all disclosures required by GAAP. The condensed consolidated financial information should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 26, 2018 . In the opinion of management, the accompanying unaudited condensed consolidated financial information includes all normal recurring adjustments necessary for a fair statement of the Company's financial position, results of operations, comprehensive loss and cash flows for the interim periods, but is not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . All intercompany accounts and transactions have been eliminated in consolidation. We adopted the new revenue recognition accounting standard, codified as Accounting Standards Codification (“ASC”) 606, effective January 1, 2018 on a modified retrospective basis (see Recently Adopted Accounting Pronouncements ). Financial results for reporting periods during 2018 are presented in compliance with the new revenue recognition standard. Historical financial results for reporting periods prior to 2018 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard, ASC 605. These financial statements include additional information regarding the impacts from the adoption of the new revenue recognition standard on our financial results for the three and six months ended June 30, 2018 . This includes the presentation of financial results during 2018 under ASC 605 for comparison to the prior year. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates include but are not limited to: the collectability of our receivables; the useful lives of our property and equipment and other lease-related assets, liabilities and costs; the benefit period for deferred commissions; the valuation of investments and the determination of other-than-temporary impairments; and the reported amounts of accrued liabilities. For revenue, we make estimates and assumptions related to the standalone selling prices of our products and services and the nature and timing of the delivery of performance obligations from our contracts with customers. We also use estimates in stock-based compensation, income taxes and business combinations. Actual results could differ from those estimates. Risks and Uncertainties Inherent in our business are various risks and uncertainties, including our limited history of operating our business at its current scale and development of advanced technologies in a rapidly changing industry. These risks include our ability to manage our growth and our ability to attract new customers and expand sales to existing customers, as well as other risks and uncertainties. In the event that we do not successfully implement our business plan, certain assets may not be recoverable, certain liabilities may not be paid and investments in our capital stock may not be recoverable. Our success depends upon the acceptance of our technology, development of sales and distribution channels and our ability to generate significant revenues from the sale of our technology. Segments We follow the authoritative literature that establishes annual and interim reporting standards for an enterprise's operating segments and related disclosures about its products and services, geographic regions and major customers. We operate our business as one operating segment. Our chief operating decision makers are our Chief Executive Officer and Chief Financial Officer, who review financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources. Revenue Recognition - ASC 606 We generate revenues primarily in the form of software license fees and related maintenance and services fees. Software license revenues include fees from the sales of perpetual, term and subscription licenses. Maintenance and services revenues primarily consist of fees for maintenance services (including support and unspecified upgrades and enhancements if and when they are available), training and professional services. We recognize revenues related to contracts with customers that meet the following criteria: • the contract contains reasonable evidence of approval and both parties' commitment to perform their respective obligations; • the contract includes identifiable rights to goods and services to be transferred and payment terms related to the transfer of those goods and services; • the contract has commercial substance; and • collection of substantially all of the consideration we are entitled to under the contract is probable. We identify performance obligations in our contracts with customers, which may include software licenses and/or related maintenance and services. We determine the transaction price based on the amount we expect to be entitled to in exchange for transferring the promised goods or services to the customer. We allocate the transaction price in the contract to each distinct performance obligation in an amount that depicts the relative amount of consideration we expect to receive in exchange for satisfying each performance obligation. Revenue is recognized when performance obligations are satisfied. Our contract payment terms are typically net 30 days . We assess collectability based on a number of factors including collection history and creditworthiness of the customer, and we may mitigate exposures to credit risk by requiring payments in advance. If we determine that collectability related to a contract is not probable, we may not record revenue until collectability becomes probable at a later date. Our revenues are recorded based on the transaction price excluding amounts collected on behalf of third parties, such as sales taxes which are collected on behalf of and remitted to governmental authorities. Nature of Products and Services Our on-premises software licenses are sold through both perpetual and term-based license agreements. These licensing arrangements provide customers with the same product functionality and differ mainly in the duration over which the customer benefits from the software. We deliver our software licenses electronically. Electronic delivery occurs when we provide the customer with access to the software and license key via a secure portal. Revenue from on-premises software licenses is generally recognized upfront at the point in time when the software is made available to the customer. Our contracts with customers for on-premises software licenses include maintenance services and may also include training and/or professional services. Maintenance services agreements consist of fees for providing software updates on an if and when available basis and for providing technical support for software products for a specified term. We believe that our if and when available software updates and technical support each have the same pattern of transfer to the customer and are substantially the same. Therefore, we consider these updates and technical support to be a single distinct performance obligation. Revenues allocated to maintenance services are recognized ratably as the maintenance services are provided. Revenues related to training services are billed on a fixed fee basis and are recognized as the services are delivered. Payments received in advance of services performed are deferred and recognized when the related services are performed. Revenues related to professional services are billed on a time and materials basis and are recognized as the services are performed. We also provide cloud-based subscriptions, which allow customers to access our software during a contractual period without taking possession of the software. We recognize revenue related to these cloud-based subscriptions ratably over the life of the subscription agreement beginning when the customer first has access to the software. Revenues from our cloud-based subscriptions are included in license revenues. Judgments and Estimates Our contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately from one another sometimes requires judgment. Judgment is also required to determine standalone selling prices (“SSP”) for each distinct performance obligation. We typically have more than one SSP for each of our products and services based on customer stratification, which is based on the size of the customer, their geographic region and market segment. We use other comparable software license sales to determine SSPs for perpetual software licenses. For our cloud-based subscriptions and for maintenance services, training and professional services, SSPs are generally observable using standalone sales and/or renewals. Our on-premises term-based software licenses generally do not have directly observable inputs for determining SSP. Therefore, we determine SSP using other observable inputs including customer buying patterns, renewal rates, cumulative spend comparisons and other industry data. We evaluate contracts that include options to purchase additional goods or services to determine whether or not the options give rise to a separate performance obligation that is material. If we determine the options are material, the revenue allocated to such options is not recognized until the option is exercised or the option expires. Our revenue recognition accounting policy for ASC 605 is included in our Annual Report on Form 10-K for the year ended December 31, 2017, which was filed with the SEC on February 26, 2018. We applied the revenue recognition accounting policy for ASC 605 to our disclosures in Note 7, which include amounts presented for 2018. There were no changes to the ASC 605 policy during the six months ended June 30, 2018 . Assets Recognized from the Costs to Obtain a Contract with a Customer We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain costs related to our sales incentive programs meet the requirements to be capitalized and deferred. Assets recorded are included in other current assets and other long-term assets. We amortize these deferred costs proportionate with related revenues over the benefit period, currently estimated to be four years. We consider the benefit period to exceed the initial contract term for certain costs because of anticipated renewals and because our sales commission rates for renewal contracts are not commensurate with sales commissions for initial contracts. Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments and accounts receivable. Our investment portfolio consists of investment-grade securities diversified among security types, industries and issuers. Our cash and cash equivalents and investments are held and managed by recognized financial institutions that follow our investment policy. Our policy limits the amount of credit exposure to any one security issue or issuer. We extend credit to customers based upon an evaluation of the customer's financial condition. As of June 30, 2018 and December 31, 2017 , no individual customer accounted for 10% or more of total accounts receivable. For the three and six months ended 2018 and 2017 , no individual customer represented 10% or more of our total revenues. Recently Adopted Accounting Pronouncements We adopted the new revenue recognition accounting standard, ASC 606, effective January 1, 2018. The new revenue recognition standard changed the way we recognize revenue, including the identification of contractual performance obligations and the allocation of transaction price, to depict the transfer of promised goods or services to customers at the amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. We adopted the new revenue recognition standard on a modified retrospective basis and applied the new revenue recognition standard only to contracts that were not completed contracts prior to January 1, 2018. Upon adoption, we recorded an adjustment of $146.8 million to our accumulated deficit. The adjustment was offset by a $105.9 million reduction to deferred revenue, which was primarily related to on-premises term licenses, and the addition of a $40.9 million contract asset. The new revenue recognition standard materially impacts the timing of revenue recognition related to our on-premises term license agreements. Prior to our adoption of the new revenue recognition standard, we historically recognized revenue related to on-premises term license agreements ratably over the term of the licensing agreement. Under the new revenue recognition standard, revenue allocable to the license portion of the arrangement is recognized upon delivery of the license. Maintenance revenue related to on-premises term license agreements continue to be recognized ratably over the term of the licensing agreement. Under the new revenue recognition standard, we allocate total transaction price to performance obligations based on estimated standalone selling prices, which impacts the timing of revenue recognition depending on when each performance obligation is recognized. These impacts to the timing of revenue recognition also affect our deferred revenue balances. The new revenue recognition standard requires the capitalization of certain incremental costs of obtaining a contract, which impacts the period in which we record our sales commissions expense. Prior to our adoption of the new revenue recognition standard, we recognized sales commissions expense as incurred. Under the new revenue recognition standard, we are required to recognize these expenses over the period of benefit associated with these costs. This results in a deferral of sales commissions expense each period and subsequent amortization of those costs over the estimated benefit period. Upon adoption of the new revenue recognition standard, we reduced our accumulated deficit by $25.5 million and recognized an offsetting asset for deferred sales commissions related to contracts that were not completed contracts prior to January 1, 2018. For further discussion regarding the impacts of adopting the new revenue recognition standard, see Note 7. In October 2016, the FASB issued ASU 2016-16 related to the accounting for income tax effects on intra-entity asset transfers of assets other than inventory. The new guidance requires reporting entities to recognize tax expense from the sale of assets when the transfer occurs, even though the pre-tax effects of the transaction are eliminated in consolidation. We adopted the new standard in the first quarter of 2018 on a modified retrospective basis. The adoption resulted in the recognition of a U.S. deferred tax asset, which was fully offset by a corresponding increase to the valuation allowance on our U.S. federal and state deferred income tax assets, and therefore did not have a material impact on our consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02 related to lease accounting. The new guidance will require lessees to recognize right-of-use assets and lease liabilities on the balance sheet for operating leases that do not meet the definition of a short-term lease. ASU 2016-02 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018 and requires modified retrospective transition. Under the new standard we anticipate that our current real estate leases will continue to be classified as operating leases and a significant amount of our currently outstanding operating lease commitments will be recorded to the balance sheet as right-of-use assets with corresponding lease liabilities. We expect the adoption of the new lease accounting standard to have a material impact on our balance sheet on the date of adoption. Our evaluation of the new standard will extend into future periods and we will update our disclosures as we progress towards the required adoption date. In June 2016, the FASB issued ASU 2016-13, related to credit losses. The new guidance replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. ASU 2016-13 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact that this standard will have on our consolidated financial statements.

Short-Term and Long-Term Invest

Short-Term and Long-Term Investments	6 Months Ended
	Jun. 30, 2018
Schedule of Short-Term and Long-Term Investments
Short-term and Long-term Investments	Short-Term and Long-Term Investments The following tables represent our short-term and long-term investments in available-for-sale securities as of June 30, 2018 and December 31, 2017 , based on remaining contractual years to maturity: June 30, 2018 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Short-term investments U.S. treasury securities $ 178,842 $ — $ (395 ) $ 178,447 U.S. agency securities 21,403 — (112 ) 21,291 Corporate bonds 101,626 — (310 ) 101,316 Total short-term investments 301,871 — (817 ) 301,054 Long-term investments U.S. treasury securities 59,340 — (400 ) 58,940 U.S. agency securities 3,578 — (33 ) 3,545 Corporate bonds 27,695 2 (191 ) 27,506 Total long-term investments 90,613 2 (624 ) 89,991 Total short-term and long-term investments $ 392,484 $ 2 $ (1,441 ) $ 391,045 December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Short-term investments Commercial paper $ 9,970 $ — $ — $ 9,970 U.S. treasury securities 160,206 — (121 ) 160,085 U.S. agency securities 9,917 — (24 ) 9,893 Corporate bonds 46,901 3 (65 ) 46,839 Total short-term investments 226,994 3 (210 ) 226,787 Long-term investments U.S. treasury securities 79,371 — (202 ) 79,169 U.S. agency securities 18,570 — (102 ) 18,468 Corporate bonds 50,880 — (153 ) 50,727 Total long-term investments 148,821 — (457 ) 148,364 Total short-term and long-term investments $ 375,815 $ 3 $ (667 ) $ 375,151 As of June 30, 2018 and December 31, 2017 , there were no investments that had been in a net loss position for 12 months or greater. The unrealized losses on investments as of June 30, 2018 were primarily caused by increases in interest rates. None of the unrealized losses represent other than temporary impairments based on our evaluation of available evidence as of June 30, 2018 .

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements We categorize assets and liabilities recorded at fair value based upon the level of judgment associated with inputs used to measure their fair value. The levels of the fair value hierarchy are as follows: • Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3—Inputs are unobservable inputs based on our own assumptions and valuation techniques used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of fair value assets and liabilities and their placement within the fair value hierarchy levels. We value our investments using quoted prices for identical instruments in active markets when available. If we are unable to obtain quoted prices for identical instruments in active markets, we value our investments using quoted market prices for comparable instruments. To date, all of our investments can be valued using one of these two methodologies. The following tables present the fair value of our financial assets using the fair value hierarchy as of June 30, 2018 and December 31, 2017 : June 30, 2018 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents Money market funds $ 516,081 $ — $ — $ 516,081 Short-term investments U.S. treasury securities — 178,447 — 178,447 U.S. agency securities — 21,291 — 21,291 Corporate bonds — 101,316 — 101,316 Long-term investments U.S. treasury securities — 58,940 — 58,940 U.S. agency securities — 3,545 — 3,545 Corporate bonds — 27,506 — 27,506 Total $ 516,081 $ 391,045 $ — $ 907,126 December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents Money market funds $ 582,835 $ — $ — $ 582,835 Commercial paper — 8,984 — 8,984 Short-term investments Commercial paper — 9,970 — 9,970 U.S. treasury securities — 160,085 — 160,085 U.S. agency securities — 9,893 — 9,893 Corporate bonds — 46,839 — 46,839 Long-term investments U.S. treasury securities — 79,169 — 79,169 U.S. agency securities — 18,468 — 18,468 Corporate bonds — 50,727 — 50,727 Total $ 582,835 $ 384,135 $ — $ 966,970 We did not have any investments in prime money market funds as of June 30, 2018 . We had no financial assets or liabilities measured using Level 3 inputs as of June 30, 2018 and December 31, 2017 .

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity Common Stock Our certificate of incorporation, as amended and restated, authorizes us to issue 75,000,000 shares of Class B common stock at $0.0001 par value per share, and 750,000,000 shares of Class A common stock at $0.0001 par value per share. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Each holder of Class B common stock is entitled to ten votes per share and each holder of Class A common stock is entitled to one vote per share. Shares of Class B common stock may be converted into Class A common stock at any time at the option of the stockholder and are automatically converted upon sale or transfer to Class A common stock, subject to certain limited exceptions. At its discretion, the board of directors may declare dividends on shares of common stock, subject to the rights of our preferred stockholders, if any. Upon liquidation or dissolution, holders of common stock will receive distributions only after preferred stock preferences have been satisfied. Preferred Stock Our certificate of incorporation, as amended and restated, authorizes us to issue 10,000,000 shares of preferred stock at $0.0001 par value per share. Our board of directors has the authority to provide for the issuance of all the shares in one or more series. At its discretion, our board of directors may designate the voting rights and preferences of the preferred stock. As of June 30, 2018 and December 31, 2017 , no shares of preferred stock were outstanding. Stock Repurchase Program On November 1, 2016, we announced that our board of directors approved a stock repurchase program, under which we were authorized to repurchase up to $200 million of our outstanding Class A common stock. On April 26, 2018, our board of directors authorized us to repurchase up to an additional $300 million of our outstanding Class A common stock under our previously announced stock repurchase program. The repurchase program has no expiration date and may be modified, suspended or discontinued at any time. Repurchases under the program may be made from time to time on the open market at prevailing market prices, in privately negotiated transactions, in transactions structured through investment banking institutions or a combination of the foregoing, in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. During the six months ended June 30, 2018 , we repurchased 679,081 shares of our outstanding Class A common stock at an average price of $88.37 per share for $60.0 million . During the six months ended June 30, 2017 , we repurchased 703,086 shares of our outstanding Class A common stock at an average price of $56.91 per share for $40.0 million . All repurchases were made in open market transactions using cash on hand, and all of the shares repurchased were retired. As of June 30, 2018 , we were authorized to repurchase a remaining $340.0 million of our Class A common stock under our repurchase program.

Business Combination

Business Combination	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Business Combinations	Business Combination On June 7, 2018, we acquired all issued and outstanding stock of Empirical Systems, Inc., a privately-held Delaware corporation, for $11.0 million in cash. Empirical Systems, Inc. is a startup specializing in automated statistical analysis. As a result of this acquisition, we acquired all of the assets and assumed all of the liabilities of Empirical Systems, Inc., and we accounted for this transaction as a business combination. Pro forma results of operations for this acquisition have not been presented as the effects were not material to our financial results. The following table summarizes the purchase price allocation based on the estimated fair value of the net assets acquired: June 7, 2018 (in thousands) Cash $ 53 Technology asset 3,500 Goodwill 7,447 Net assets acquired $ 11,000 The technology asset acquired in this business combination is being amortized on the straight-line method over a period of five years. Goodwill generated from this business combination is primarily attributable to expected synergies between the technology asset acquired and our key products. None of the goodwill recognized with this transaction is expected to be deductible for U.S. income tax purposes. Certain employees hired in conjunction with the acquisition receive restricted stock units ("RSUs") that are subject to service conditions as well as the completion of certain technology milestones. We will account for these awards as a post-business combination expense. Additional information, such as that related to income taxes or other contingencies, existing as of the acquisition date but unknown to us may become known at a later time. In accordance with GAAP, if this occurs during the next 12 months, we may update the amounts and allocations recorded as of the acquisition date, which are presented in the table above.

Revenue Revenue

Revenue Revenue	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue	Revenue We adopted the new revenue recognition accounting standard, ASC 606, effective January 1, 2018 on a modified retrospective basis and applied the new standard only to contracts that were not completed contracts prior to January 1, 2018. See Note 2 for a description of our ASC 606 revenue recognition accounting policy. Financial results for reporting periods during 2018 are presented in compliance with the new revenue recognition standard. Historical financial results for reporting periods prior to 2018 have not been retroactively restated and are presented in conformity with amounts previously disclosed under ASC 605. This note includes additional information regarding the impacts from the adoption of the new revenue recognition standard on our financial results for the three and six months ended June 30, 2018 . This includes the presentation of financial results during 2018 under ASC 605 for comparison to the prior year. Our revenue recognition accounting policy for ASC 605 is included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017, which was filed with the SEC on February 26, 2018. There were no changes to our ASC 605 policy during the six months ended June 30, 2018 . Condensed Consolidated Balance Sheets (Unaudited) - Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard The following schedule summarizes the impacts from the adoption of the new revenue recognition standard on our condensed consolidated balance sheets as of June 30, 2018 : June 30, 2018 December 31, 2017 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) As Reported (ASC 605) (in thousands) Assets Current assets Cash and cash equivalents $ 611,091 $ — $ 611,091 $ 627,878 Short-term investments 301,054 — 301,054 226,787 Accounts receivable, net 170,907 — 170,907 203,366 Prepaid expenses and other current assets 115,605 (85,423 ) 30,182 30,514 Income taxes receivable 778 269 1,047 673 Total current assets 1,199,435 (85,154 ) 1,114,281 1,089,218 Long-term investments 89,991 — 89,991 148,364 Property and equipment, net 95,603 — 95,603 106,753 Goodwill 42,530 — 42,530 35,083 Deferred income taxes 4,072 1,509 5,581 5,287 Other long-term assets 41,626 (24,972 ) 16,654 14,090 Total assets $ 1,473,257 $ (108,617 ) $ 1,364,640 $ 1,398,795 Liabilities and stockholders' equity Current liabilities Accounts payable $ 3,829 $ — $ 3,829 $ 4,448 Accrued compensation and employee-related benefits 75,129 — 75,129 96,390 Other accrued liabilities 54,745 — 54,745 37,722 Income taxes payable 1,986 2,264 4,250 4,743 Deferred revenue 320,305 121,922 442,227 419,426 Total current liabilities 455,994 124,186 580,180 562,729 Deferred revenue 15,615 12,022 27,637 28,058 Other long-term liabilities 53,686 (775 ) 52,911 54,385 Total liabilities 525,295 135,433 660,728 645,172 Stockholders' equity Common stock 8 — 8 8 Additional paid-in capital 1,256,854 — 1,256,854 1,168,563 Accumulated other comprehensive loss (11,811 ) 411 (11,400 ) (11,991 ) Accumulated deficit (297,089 ) (244,461 ) (541,550 ) (402,957 ) Total stockholders' equity 947,962 (244,050 ) 703,912 753,623 Total liabilities and stockholders' equity $ 1,473,257 $ (108,617 ) $ 1,364,640 $ 1,398,795 Condensed Consolidated Statements of Operations (Unaudited) - Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard The following schedules summarize the impacts from the adoption of the new revenue recognition standard on our condensed consolidated statement of operations for the three and six months ended June 30, 2018 : Three Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (in thousands) Revenues License $ 137,848 $ (15,267 ) $ 122,581 $ 103,296 Maintenance and services 144,441 (23,456 ) 120,985 109,584 Total revenues 282,289 (38,723 ) 243,566 212,880 Cost of revenues License 4,626 (91 ) 4,535 2,942 Maintenance and services 30,599 106 30,705 23,723 Total cost of revenues 35,225 15 35,240 26,665 Gross profit 247,064 (38,738 ) 208,326 186,215 Operating expenses Sales and marketing 144,150 6,352 150,502 124,160 Research and development 94,033 — 94,033 81,067 General and administrative 29,846 — 29,846 25,875 Total operating expenses 268,029 6,352 274,381 231,102 Operating loss (20,965 ) (45,090 ) (66,055 ) (44,887 ) Other income, net 6,866 118 6,984 4,029 Loss before income tax expense (benefit) (14,099 ) (44,972 ) (59,071 ) (40,858 ) Income tax expense (benefit) (2,033 ) 2,529 496 1,664 Net loss $ (12,066 ) $ (47,501 ) $ (59,567 ) $ (42,522 ) Six Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (in thousands) Revenues License $ 246,641 $ (18,394 ) $ 228,247 $ 200,540 Maintenance and services 281,855 (42,492 ) 239,363 212,246 Total revenues 528,496 (60,886 ) 467,610 412,786 Cost of revenues License 8,580 (143 ) 8,437 6,209 Maintenance and services 59,070 167 59,237 47,111 Total cost of revenues 67,650 24 67,674 53,320 Gross profit 460,846 (60,910 ) 399,936 359,466 Operating expenses Sales and marketing 282,556 10,959 293,515 242,178 Research and development 187,538 — 187,538 165,369 General and administrative 62,096 — 62,096 50,320 Total operating expenses 532,190 10,959 543,149 457,867 Operating loss (71,344 ) (71,869 ) (143,213 ) (98,401 ) Other income, net 8,328 80 8,408 5,254 Loss before income tax expense (benefit) (63,016 ) (71,789 ) (134,805 ) (93,147 ) Income tax expense (benefit) (4,478 ) 8,266 3,788 4,022 Net loss $ (58,538 ) $ (80,055 ) $ (138,593 ) $ (97,169 ) Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard The following schedules summarize the impacts from the adoption of the new revenue recognition standard on our condensed consolidated statement of comprehensive loss for the three and six months ended June 30, 2018 : Three Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (in thousands) Net loss $ (12,066 ) $ (47,501 ) $ (59,567 ) $ (42,522 ) Other comprehensive income (loss), net of tax: Foreign currency translation (1,314 ) 2,383 1,069 (6,384 ) Net unrealized gain on available-for-sale securities 74 — 74 — Comprehensive loss $ (13,306 ) $ (45,118 ) $ (58,424 ) $ (48,906 ) Six Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (in thousands) Net loss $ (58,538 ) $ (80,055 ) $ (138,593 ) $ (97,169 ) Other comprehensive income (loss), net of tax: Foreign currency translation (728 ) 2,094 1,366 (7,208 ) Net unrealized loss on available-for-sale securities (775 ) — (775 ) — Comprehensive loss $ (60,041 ) $ (77,961 ) $ (138,002 ) $ (104,377 ) Condensed Consolidated Statements of Cash Flows (Unaudited) - Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard The following schedule summarizes the impacts from the adoption of the new revenue recognition standard on our condensed consolidated statement of cash flows for the six months ended June 30, 2018 : Six Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (in thousands) Operating activities Net loss $ (58,538 ) $ (80,055 ) $ (138,593 ) $ (97,169 ) Adjustments to reconcile net loss to net cash provided by operating activities Depreciation and amortization expense 19,050 — 19,050 23,837 Amortization of premiums on investments, net 137 — 137 — Stock-based compensation expense 114,075 — 114,075 101,309 Deferred income taxes (3,965 ) 3,784 (181 ) 465 Changes in operating assets and liabilities Accounts receivable, net 31,490 — 31,490 72,493 Prepaid expenses and other assets (44,925 ) 45,078 153 19,519 Income taxes receivable (125 ) (270 ) (395 ) (97 ) Deferred revenue (3,893 ) 29,522 25,629 30,072 Accounts payable and accrued liabilities 8,663 — 8,663 (16,421 ) Income taxes payable (2,713 ) 2,263 (450 ) 523 Net cash provided by operating activities 59,256 322 59,578 134,531 Investing activities Purchases of property and equipment (11,076 ) — (11,076 ) (33,860 ) Business combination, net of cash acquired (10,947 ) — (10,947 ) — Purchases of investments (156,591 ) — (156,591 ) — Maturities of investments 139,685 — 139,685 — Sales of investments 99 — 99 — Net cash used in investing activities (38,830 ) — (38,830 ) (33,860 ) Financing activities Proceeds from issuance of common stock 25,581 — 25,581 21,646 Repurchases of common stock (60,013 ) — (60,013 ) (40,014 ) Net cash used in financing activities (34,432 ) — (34,432 ) (18,368 ) Effect of exchange rate changes on cash and cash equivalents (2,781 ) (322 ) (3,103 ) 1,884 Net increase (decrease) in cash and cash equivalents (16,787 ) — (16,787 ) 84,187 Cash and cash equivalents Beginning of period 627,878 — 627,878 908,717 End of period $ 611,091 $ — $ 611,091 $ 992,904 Disclosures Related to our Contracts with Customers Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers. We record assets for amounts related to performance obligations that are satisfied but not yet billed and/or collected. These assets are recorded as contract assets rather than receivables when receipt of the consideration is conditional on something other than the passage of time. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations. These liabilities are classified as current and non-current deferred revenue. Contract Assets and Contract Liabilities A summary of the activity impacting our contract assets during the six months ended June 30, 2018 is presented below: Contract Assets (in thousands) Balances at December 31, 2017 $ — Adoption of ASC 606 40,854 Contract assets transferred to receivables (12,286 ) Additions to contract assets 43,991 Balances at June 30, 2018 $ 72,559 As of June 30, 2018 , our contract assets are expected to be transferred to receivables within the next 12 months and therefore are included in other current assets. There were no impairments of contract assets during the six months ended June 30, 2018 . A summary of the activity impacting our deferred revenue balances during the six months ended June 30, 2018 is presented below: Deferred Revenue (in thousands) Balances at December 31, 2017 $ 447,484 Adoption of ASC 606 (105,933 ) Deferred revenue recognized (220,112 ) Additional amounts deferred 214,481 Balances at June 30, 2018 $ 335,920 Assets Recognized from the Costs to Obtain our Contracts with Customers We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We amortize these deferred costs proportionate with related revenues over the benefit period, currently estimated to be four years. A summary of the activity impacting our deferred contract costs during the six months ended June 30, 2018 is presented below: Deferred Contract Costs (in thousands) Balances at December 31, 2017 $ — Adoption of ASC 606 25,489 Additional contract costs deferred 15,011 Amortization of deferred contract costs (4,578 ) Balances at June 30, 2018 $ 35,922 As of June 30, 2018 , $10.9 million of our deferred contract costs are expected to be amortized within the next 12 months and therefore are included in other current assets. The remaining amount of our deferred contract costs are included in other long-term assets. There were no impairments of assets related to deferred contract costs during the six months ended June 30, 2018 . There were no assets recognized related to the costs to fulfill contracts during the six months ended June 30, 2018 as these costs were not material. Remaining Performance Obligations Our contracts with customers include amounts allocated to performance obligations that will be satisfied at a later date. These amounts include additional performance obligations that are not yet recorded in the consolidated balance sheets. As of June 30, 2018 , amounts allocated to these additional contractual obligations are $138.5 million , of which we expect to recognize $111.4 million as revenue over the next 24 months with the remaining amount thereafter.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation Our 2004 Equity Incentive Plan (the "2004 Plan") authorized the granting of options to purchase shares of our Class B common stock, RSUs and other stock-based awards to our employees, consultants, officers and directors. Our 2013 Equity Incentive Plan, as amended, (the "2013 Plan" and, together with the 2004 Plan, the "Plans"), which is the successor to our 2004 Plan, authorizes the granting of options to purchase shares of our Class A common stock, RSUs and other stock-based awards to our employees, consultants, officers and directors. Options granted under the Plans may be incentive or nonstatutory stock options. Incentive stock options may only be granted to employees. The term of each option is stated in the award agreement but shall be no more than ten years from the date of grant. The board of directors determines the period over which options and RSUs become vested. Currently, the vesting period for our options and RSUs is typically four years. Our 2013 Employee Stock Purchase Plan ("2013 ESPP") allows eligible employees to purchase shares of our Class A common stock, at a discount, through payroll deductions of up to 15% of their eligible compensation, subject to plan limitations. The 2013 ESPP currently includes purchase periods approximately six months in duration starting on the first trading date on or after June 1 st and December 1 st of each year. Participants are able to purchase shares of our common stock at 85% of the lower of its fair market value on (i) the first day of the purchase period or on (ii) the purchase date, which is the last day of the purchase period. A summary of the option activity during the six months ended June 30, 2018 follows: Options Outstanding Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Balances at December 31, 2017 3,017,113 $ 10.13 Options exercised (890,382 ) 9.16 Balances at June 30, 2018 2,126,731 $ 10.54 3.87 $ 185,469 Vested and expected to vest at June 30, 2018 2,126,731 $ 10.54 3.87 $ 185,469 Exercisable at June 30, 2018 2,084,543 $ 9.64 3.78 $ 183,660 The intrinsic value is the difference between the fair value of our Class A common stock as of June 30, 2018 and the exercise price of each of the respective stock options. A summary of the RSU activity during the six months ended June 30, 2018 follows: Number of Shares Underlying Outstanding RSUs Weighted Average Grant-Date Fair Value per RSU Non-Vested outstanding at December 31, 2017 7,178,015 $ 62.79 RSUs granted 2,982,656 85.22 RSUs vested (1,975,245 ) 66.40 RSUs forfeited (445,779 ) 66.42 Non-Vested outstanding at June 30, 2018 7,739,647 $ 70.31 An RSU award entitles the holder to receive shares of our Class A common stock as the award vests, which is generally based on length of service. Our non-vested RSUs do not have nonforfeitable rights to dividends or dividend equivalents. For awards subject to technology milestones, we recognize compensation cost over the estimated requisite service period if we believe it is probable that the associated technology milestone will be met. If our assessment of the probability of the technology milestone being met changes, we recognize the impact of the change in estimate in the period of the change. Stock-based compensation expense is amortized using the straight-line method over the requisite service period. We account for forfeitures as they occur. As of June 30, 2018 , total unrecognized compensation expense related to stock options and non-vested RSUs was $505.4 million , which is expected to be recognized over a weighted average period of 2.9 years . The summary of shares available for issuance of equity-based awards (including stock options, RSUs and shares issuable under our 2013 ESPP) during the six months ended June 30, 2018 follows: Shares Available for Grant 2013 Plan 2013 ESPP Balances at December 31, 2017 7,207,291 3,666,392 Authorized 4,023,117 804,623 Granted (2,982,656 ) (291,447 ) Forfeited 445,779 — Balances at June 30, 2018 8,693,531 4,179,568

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The income tax provision for interim periods is generally determined using an estimate of our annual effective tax rate, excluding jurisdictions for which no benefit can be recognized due to valuation allowance, and adjusted for discrete items, if any, in the relevant period. The impact of adjustments to our effective tax rate for discrete items and non-deductible expenses is greater in periods close to break-even. Each quarter we update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment. Our effective tax rate is impacted by and differs from the federal statutory rate primarily due to the full valuation allowance on our U.S. federal and state deferred tax assets, the effect of income or losses incurred in foreign jurisdictions where the statutory tax rate differs from the federal statutory rate and non-deductible stock-based compensation. We recognized an income tax benefit of $2.0 million and $4.5 million under ASC 606 for the three and six months ended June 30, 2018 , respectively, compared to an income tax expense of $1.7 million and $4.0 million for three and six months ended June 30, 2017 , respectively. Our effective tax rate was 14.4% and 7.1% for the three and six months ended June 30, 2018 , respectively, compared to (4.1)% and (4.3)% for the three and six months ended June 30, 2017 , respectively. The difference in the effective tax rates is primarily attributable to additional income as a result of our adoption of ASC 606 combined with a year to date tax benefit in foreign jurisdictions, which was increased by the recognition of excess tax benefits of stock-based compensation during the period. We recognized an income tax expense of $0.5 million and $3.8 million under ASC 605 for the three and six months ended June 30, 2018 , respectively, compared to an income tax expense of $1.7 million and $4.0 million for the three and six months ended June 30, 2017 , respectively. Our effective tax rate under ASC 605 was (0.8)% and (2.8)% for the three and six months ended June 30, 2018 , respectively, compared to (4.1)% and (4.3)% for the three and six months ended June 30, 2017 , respectively. The difference in the effective tax rates was primarily attributable to an increase in taxes in foreign jurisdictions, offset by an income tax benefit from the recognition of excess tax benefits of stock-based compensation during the three and six months ended June 30, 2018 . The difference in effective tax rates between ASC 606 and ASC 605 is primarily attributable to the differences in the amount of revenue recognized under ASC 606 compared to ASC 605. As a result of adopting ASC 606 in the first quarter of 2018, we recognized an immaterial amount of net deferred tax liabilities, which reduced our opening adjustment to stockholders' equity. During the first quarter of 2018, we also adopted ASU 2016-16 and recognized a U.S. deferred tax asset, which was fully offset by a corresponding increase to the valuation allowance on our U.S. federal and state deferred income tax assets. We periodically evaluate the realizability of our net deferred tax assets based on all available evidence, both positive and negative such as historic results, future reversals of existing deferred tax liabilities, projected future taxable income, as well as prudent and feasible tax-planning strategies. Generally, more weight is given to objectively verifiable evidence, such as the cumulative loss in recent years. As of June 30, 2018 , we maintain a full valuation allowance on our U.S. federal and state deferred tax assets. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the "Act") was signed with an effective date of January 1, 2018. The Act, which significantly revised U.S. tax law, included many important changes. On the same day, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to assist in addressing uncertainty in applying GAAP to the accounting and reporting of tax reform changes related to the Act. We considered these changes, including all available guidance, in determining our income tax provision for the period ending December 31, 2017. As of June 30, 2018 , we have not yet completed our analysis of historical foreign earnings as well as potential correlative adjustments. As we complete the analysis, any subsequent adjustment to these amounts may be recorded to current income tax expense in that period. We expect to complete our analysis within the measurement period in accordance with SAB 118. No adjustments to the provisional amount have been made.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Operating Lease Commitments and Expected Sublease Receipts As of June 30, 2018 , our principal obligations consisted of obligations outstanding under non-cancellable operating leases that expire at various dates through 2029. The following table represents our non-cancellable minimum lease payments, net of future expected sublease payments to be received under non-cancellable subleases, remaining as of June 30, 2018 (in thousands): Period Ending Operating Lease Commitments Expected Sublease Receipts Net Remainder of 2018 $ 21,833 $ (4,401 ) $ 17,432 2019 41,019 (10,606 ) 30,413 2020 42,637 (7,113 ) 35,524 2021 43,152 (1,180 ) 41,972 2022 42,828 (597 ) 42,231 Thereafter 175,708 (121 ) 175,587 Total $ 367,177 $ (24,018 ) $ 343,159 Contractual Commitments Our contractual commitments are associated with agreements that are enforceable and legally binding and that specify all significant terms, including fixed or minimum services to be used, fixed, minimum or variable price provisions and the approximate timing of the transaction. Obligations under contracts that we can cancel without a significant penalty are not included. There have been no material changes in our contractual commitments compared to those discussed in Note 10 in our Annual Report on Form 10-K for the year ended December 31, 2017 . Legal Proceedings We are subject to certain routine legal proceedings, as well as demands and claims that arise in the normal course of our business. We make a provision for a liability relating to legal matters when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. We are not aware of any pending legal proceedings that we believe, individually or in the aggregate, would be expected to have a material adverse effect on our business, operating results, or financial condition. We may, in the future, be party to litigation arising in the ordinary course of business, including claims that we allegedly infringe upon third party intellectual property rights. Such claims, even if not meritorious, could result in the expenditure of significant financial and management resources.

Segments and Information about

Segments and Information about Revenues by Geographic Region	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segments and Information about Revenues by Geographic Area	Segments and Information about Revenues by Geographic Area The following tables present our revenues by geographic region of end users who purchased products or services for the periods presented below: Three Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (dollars in thousands) United States and Canada $ 196,992 $ (27,758 ) $ 169,234 $ 146,102 International 85,297 (10,965 ) 74,332 66,778 Total revenues $ 282,289 $ (38,723 ) $ 243,566 $ 212,880 Six Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (dollars in thousands) United States and Canada $ 364,791 $ (41,114 ) $ 323,677 $ 287,598 International 163,705 (19,772 ) 143,933 125,188 Total revenues $ 528,496 $ (60,886 ) $ 467,610 $ 412,786 For the three and six months ended June 30, 2018 and 2017 , no individual country other than the United States represented 10% or more of our total revenues. Revenues from Canada represented less than 5% of our total revenues for the three and six months ended June 30, 2018 and 2017 , respectively.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share The following tables present the computation of basic and diluted net loss per share for the three and six months ended June 30, 2018 and 2017 and include additional information regarding the impacts from the adoption of the new revenue recognition standard for the three and six months ended June 30, 2018 : Three Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (in thousands, except per share amounts) Net loss per share - basic and diluted Net loss $ (12,066 ) $ (47,501 ) $ (59,567 ) $ (42,522 ) Weighted average shares outstanding used to compute basic and diluted net loss per share 82,247 82,247 78,511 Net loss per share - basic and diluted $ (0.15 ) $ (0.72 ) $ (0.54 ) Six Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (in thousands, except per share amounts) Net loss per share - basic and diluted Net loss $ (58,538 ) $ (80,055 ) $ (138,593 ) $ (97,169 ) Weighted average shares outstanding used to compute basic and diluted net loss per share 81,647 81,647 77,966 Net loss per share - basic and diluted $ (0.72 ) $ (1.70 ) $ (1.25 ) The following shares were excluded from the computation of diluted net loss per share for the periods presented as their effect would have been antidilutive: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) Shares subject to outstanding common stock awards 10,078 11,452 10,078 11,452

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial information has been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") and applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. Certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet data as of December 31, 2017 was derived from audited financial statements but does not include all disclosures required by GAAP. The condensed consolidated financial information should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 26, 2018 . In the opinion of management, the accompanying unaudited condensed consolidated financial information includes all normal recurring adjustments necessary for a fair statement of the Company's financial position, results of operations, comprehensive loss and cash flows for the interim periods, but is not necessarily indicative of the results that may be expected for the year ending December 31, 2018 . All intercompany accounts and transactions have been eliminated in consolidation. We adopted the new revenue recognition accounting standard, codified as Accounting Standards Codification (“ASC”) 606, effective January 1, 2018 on a modified retrospective basis (see Recently Adopted Accounting Pronouncements ). Financial results for reporting periods during 2018 are presented in compliance with the new revenue recognition standard. Historical financial results for reporting periods prior to 2018 are presented in conformity with amounts previously disclosed under the prior revenue recognition standard, ASC 605. These financial statements include additional information regarding the impacts from the adoption of the new revenue recognition standard on our financial results for the three and six months ended June 30, 2018 . This includes the presentation of financial results during 2018 under ASC 605 for comparison to the prior year.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates include but are not limited to: the collectability of our receivables; the useful lives of our property and equipment and other lease-related assets, liabilities and costs; the benefit period for deferred commissions; the valuation of investments and the determination of other-than-temporary impairments; and the reported amounts of accrued liabilities. For revenue, we make estimates and assumptions related to the standalone selling prices of our products and services and the nature and timing of the delivery of performance obligations from our contracts with customers. We also use estimates in stock-based compensation, income taxes and business combinations. Actual results could differ from those estimates.
Risk And Uncertainties	Risks and Uncertainties Inherent in our business are various risks and uncertainties, including our limited history of operating our business at its current scale and development of advanced technologies in a rapidly changing industry. These risks include our ability to manage our growth and our ability to attract new customers and expand sales to existing customers, as well as other risks and uncertainties. In the event that we do not successfully implement our business plan, certain assets may not be recoverable, certain liabilities may not be paid and investments in our capital stock may not be recoverable. Our success depends upon the acceptance of our technology, development of sales and distribution channels and our ability to generate significant revenues from the sale of our technology.
Segments	Segments We follow the authoritative literature that establishes annual and interim reporting standards for an enterprise's operating segments and related disclosures about its products and services, geographic regions and major customers. We operate our business as one operating segment. Our chief operating decision makers are our Chief Executive Officer and Chief Financial Officer, who review financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance and allocating resources.
Revenue Recognition	Revenue Recognition - ASC 606 We generate revenues primarily in the form of software license fees and related maintenance and services fees. Software license revenues include fees from the sales of perpetual, term and subscription licenses. Maintenance and services revenues primarily consist of fees for maintenance services (including support and unspecified upgrades and enhancements if and when they are available), training and professional services. We recognize revenues related to contracts with customers that meet the following criteria: • the contract contains reasonable evidence of approval and both parties' commitment to perform their respective obligations; • the contract includes identifiable rights to goods and services to be transferred and payment terms related to the transfer of those goods and services; • the contract has commercial substance; and • collection of substantially all of the consideration we are entitled to under the contract is probable. We identify performance obligations in our contracts with customers, which may include software licenses and/or related maintenance and services. We determine the transaction price based on the amount we expect to be entitled to in exchange for transferring the promised goods or services to the customer. We allocate the transaction price in the contract to each distinct performance obligation in an amount that depicts the relative amount of consideration we expect to receive in exchange for satisfying each performance obligation. Revenue is recognized when performance obligations are satisfied. Our contract payment terms are typically net 30 days . We assess collectability based on a number of factors including collection history and creditworthiness of the customer, and we may mitigate exposures to credit risk by requiring payments in advance. If we determine that collectability related to a contract is not probable, we may not record revenue until collectability becomes probable at a later date. Our revenues are recorded based on the transaction price excluding amounts collected on behalf of third parties, such as sales taxes which are collected on behalf of and remitted to governmental authorities. Nature of Products and Services Our on-premises software licenses are sold through both perpetual and term-based license agreements. These licensing arrangements provide customers with the same product functionality and differ mainly in the duration over which the customer benefits from the software. We deliver our software licenses electronically. Electronic delivery occurs when we provide the customer with access to the software and license key via a secure portal. Revenue from on-premises software licenses is generally recognized upfront at the point in time when the software is made available to the customer. Our contracts with customers for on-premises software licenses include maintenance services and may also include training and/or professional services. Maintenance services agreements consist of fees for providing software updates on an if and when available basis and for providing technical support for software products for a specified term. We believe that our if and when available software updates and technical support each have the same pattern of transfer to the customer and are substantially the same. Therefore, we consider these updates and technical support to be a single distinct performance obligation. Revenues allocated to maintenance services are recognized ratably as the maintenance services are provided. Revenues related to training services are billed on a fixed fee basis and are recognized as the services are delivered. Payments received in advance of services performed are deferred and recognized when the related services are performed. Revenues related to professional services are billed on a time and materials basis and are recognized as the services are performed. We also provide cloud-based subscriptions, which allow customers to access our software during a contractual period without taking possession of the software. We recognize revenue related to these cloud-based subscriptions ratably over the life of the subscription agreement beginning when the customer first has access to the software. Revenues from our cloud-based subscriptions are included in license revenues. Judgments and Estimates Our contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately from one another sometimes requires judgment. Judgment is also required to determine standalone selling prices (“SSP”) for each distinct performance obligation. We typically have more than one SSP for each of our products and services based on customer stratification, which is based on the size of the customer, their geographic region and market segment. We use other comparable software license sales to determine SSPs for perpetual software licenses. For our cloud-based subscriptions and for maintenance services, training and professional services, SSPs are generally observable using standalone sales and/or renewals. Our on-premises term-based software licenses generally do not have directly observable inputs for determining SSP. Therefore, we determine SSP using other observable inputs including customer buying patterns, renewal rates, cumulative spend comparisons and other industry data. We evaluate contracts that include options to purchase additional goods or services to determine whether or not the options give rise to a separate performance obligation that is material. If we determine the options are material, the revenue allocated to such options is not recognized until the option is exercised or the option expires. Our revenue recognition accounting policy for ASC 605 is included in our Annual Report on Form 10-K for the year ended December 31, 2017, which was filed with the SEC on February 26, 2018. We applied the revenue recognition accounting policy for ASC 605 to our disclosures in Note 7, which include amounts presented for 2018. There were no changes to the ASC 605 policy during the six months ended June 30, 2018 .
Deferred Commissions	Assets Recognized from the Costs to Obtain a Contract with a Customer We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We have determined that certain costs related to our sales incentive programs meet the requirements to be capitalized and deferred. Assets recorded are included in other current assets and other long-term assets. We amortize these deferred costs proportionate with related revenues over the benefit period, currently estimated to be four years. We consider the benefit period to exceed the initial contract term for certain costs because of anticipated renewals and because our sales commission rates for renewal contracts are not commensurate with sales commissions for initial contracts.
Concentrations of Credit Risk	Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents, investments and accounts receivable. Our investment portfolio consists of investment-grade securities diversified among security types, industries and issuers. Our cash and cash equivalents and investments are held and managed by recognized financial institutions that follow our investment policy. Our policy limits the amount of credit exposure to any one security issue or issuer. We extend credit to customers based upon an evaluation of the customer's financial condition. As of June 30, 2018 and December 31, 2017 , no individual customer accounted for 10% or more of total accounts receivable. For the three and six months ended 2018 and 2017 , no individual customer represented 10% or more of our total revenues.
Recent Accounting Pronouncements	Recently Adopted Accounting Pronouncements We adopted the new revenue recognition accounting standard, ASC 606, effective January 1, 2018. The new revenue recognition standard changed the way we recognize revenue, including the identification of contractual performance obligations and the allocation of transaction price, to depict the transfer of promised goods or services to customers at the amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. We adopted the new revenue recognition standard on a modified retrospective basis and applied the new revenue recognition standard only to contracts that were not completed contracts prior to January 1, 2018. Upon adoption, we recorded an adjustment of $146.8 million to our accumulated deficit. The adjustment was offset by a $105.9 million reduction to deferred revenue, which was primarily related to on-premises term licenses, and the addition of a $40.9 million contract asset. The new revenue recognition standard materially impacts the timing of revenue recognition related to our on-premises term license agreements. Prior to our adoption of the new revenue recognition standard, we historically recognized revenue related to on-premises term license agreements ratably over the term of the licensing agreement. Under the new revenue recognition standard, revenue allocable to the license portion of the arrangement is recognized upon delivery of the license. Maintenance revenue related to on-premises term license agreements continue to be recognized ratably over the term of the licensing agreement. Under the new revenue recognition standard, we allocate total transaction price to performance obligations based on estimated standalone selling prices, which impacts the timing of revenue recognition depending on when each performance obligation is recognized. These impacts to the timing of revenue recognition also affect our deferred revenue balances. The new revenue recognition standard requires the capitalization of certain incremental costs of obtaining a contract, which impacts the period in which we record our sales commissions expense. Prior to our adoption of the new revenue recognition standard, we recognized sales commissions expense as incurred. Under the new revenue recognition standard, we are required to recognize these expenses over the period of benefit associated with these costs. This results in a deferral of sales commissions expense each period and subsequent amortization of those costs over the estimated benefit period. Upon adoption of the new revenue recognition standard, we reduced our accumulated deficit by $25.5 million and recognized an offsetting asset for deferred sales commissions related to contracts that were not completed contracts prior to January 1, 2018. For further discussion regarding the impacts of adopting the new revenue recognition standard, see Note 7. In October 2016, the FASB issued ASU 2016-16 related to the accounting for income tax effects on intra-entity asset transfers of assets other than inventory. The new guidance requires reporting entities to recognize tax expense from the sale of assets when the transfer occurs, even though the pre-tax effects of the transaction are eliminated in consolidation. We adopted the new standard in the first quarter of 2018 on a modified retrospective basis. The adoption resulted in the recognition of a U.S. deferred tax asset, which was fully offset by a corresponding increase to the valuation allowance on our U.S. federal and state deferred income tax assets, and therefore did not have a material impact on our consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02 related to lease accounting. The new guidance will require lessees to recognize right-of-use assets and lease liabilities on the balance sheet for operating leases that do not meet the definition of a short-term lease. ASU 2016-02 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018 and requires modified retrospective transition. Under the new standard we anticipate that our current real estate leases will continue to be classified as operating leases and a significant amount of our currently outstanding operating lease commitments will be recorded to the balance sheet as right-of-use assets with corresponding lease liabilities. We expect the adoption of the new lease accounting standard to have a material impact on our balance sheet on the date of adoption. Our evaluation of the new standard will extend into future periods and we will update our disclosures as we progress towards the required adoption date. In June 2016, the FASB issued ASU 2016-13, related to credit losses. The new guidance replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. ASU 2016-13 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact that this standard will have on our consolidated financial statements.

Short-Term and Long-Term Inve21

Short-Term and Long-Term Investments (Tables)	6 Months Ended
	Jun. 30, 2018
Investments, Debt and Equity Securities [Abstract]
Short-term and Long-term Investments	The following tables represent our short-term and long-term investments in available-for-sale securities as of June 30, 2018 and December 31, 2017 , based on remaining contractual years to maturity: June 30, 2018 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Short-term investments U.S. treasury securities $ 178,842 $ — $ (395 ) $ 178,447 U.S. agency securities 21,403 — (112 ) 21,291 Corporate bonds 101,626 — (310 ) 101,316 Total short-term investments 301,871 — (817 ) 301,054 Long-term investments U.S. treasury securities 59,340 — (400 ) 58,940 U.S. agency securities 3,578 — (33 ) 3,545 Corporate bonds 27,695 2 (191 ) 27,506 Total long-term investments 90,613 2 (624 ) 89,991 Total short-term and long-term investments $ 392,484 $ 2 $ (1,441 ) $ 391,045 December 31, 2017 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Short-term investments Commercial paper $ 9,970 $ — $ — $ 9,970 U.S. treasury securities 160,206 — (121 ) 160,085 U.S. agency securities 9,917 — (24 ) 9,893 Corporate bonds 46,901 3 (65 ) 46,839 Total short-term investments 226,994 3 (210 ) 226,787 Long-term investments U.S. treasury securities 79,371 — (202 ) 79,169 U.S. agency securities 18,570 — (102 ) 18,468 Corporate bonds 50,880 — (153 ) 50,727 Total long-term investments 148,821 — (457 ) 148,364 Total short-term and long-term investments $ 375,815 $ 3 $ (667 ) $ 375,151

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	The following tables present the fair value of our financial assets using the fair value hierarchy as of June 30, 2018 and December 31, 2017 : June 30, 2018 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents Money market funds $ 516,081 $ — $ — $ 516,081 Short-term investments U.S. treasury securities — 178,447 — 178,447 U.S. agency securities — 21,291 — 21,291 Corporate bonds — 101,316 — 101,316 Long-term investments U.S. treasury securities — 58,940 — 58,940 U.S. agency securities — 3,545 — 3,545 Corporate bonds — 27,506 — 27,506 Total $ 516,081 $ 391,045 $ — $ 907,126 December 31, 2017 Level 1 Level 2 Level 3 Total (in thousands) Cash and cash equivalents Money market funds $ 582,835 $ — $ — $ 582,835 Commercial paper — 8,984 — 8,984 Short-term investments Commercial paper — 9,970 — 9,970 U.S. treasury securities — 160,085 — 160,085 U.S. agency securities — 9,893 — 9,893 Corporate bonds — 46,839 — 46,839 Long-term investments U.S. treasury securities — 79,169 — 79,169 U.S. agency securities — 18,468 — 18,468 Corporate bonds — 50,727 — 50,727 Total $ 582,835 $ 384,135 $ — $ 966,970

Business Combination (Tables)

Business Combination (Tables)	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Purchase Price Allocation	The following table summarizes the purchase price allocation based on the estimated fair value of the net assets acquired: June 7, 2018 (in thousands) Cash $ 53 Technology asset 3,500 Goodwill 7,447 Net assets acquired $ 11,000

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	The following schedule summarizes the impacts from the adoption of the new revenue recognition standard on our condensed consolidated balance sheets as of June 30, 2018 : June 30, 2018 December 31, 2017 As Reported (ASC 606) Impacts from Adoption Without Adoption (ASC 605) As Reported (ASC 605) (in thousands) Assets Current assets Cash and cash equivalents $ 611,091 $ — $ 611,091 $ 627,878 Short-term investments 301,054 — 301,054 226,787 Accounts receivable, net 170,907 — 170,907 203,366 Prepaid expenses and other current assets 115,605 (85,423 ) 30,182 30,514 Income taxes receivable 778 269 1,047 673 Total current assets 1,199,435 (85,154 ) 1,114,281 1,089,218 Long-term investments 89,991 — 89,991 148,364 Property and equipment, net 95,603 — 95,603 106,753 Goodwill 42,530 — 42,530 35,083 Deferred income taxes 4,072 1,509 5,581 5,287 Other long-term assets 41,626 (24,972 ) 16,654 14,090 Total assets $ 1,473,257 $ (108,617 ) $ 1,364,640 $ 1,398,795 Liabilities and stockholders' equity Current liabilities Accounts payable $ 3,829 $ — $ 3,829 $ 4,448 Accrued compensation and employee-related benefits 75,129 — 75,129 96,390 Other accrued liabilities 54,745 — 54,745 37,722 Income taxes payable 1,986 2,264 4,250 4,743 Deferred revenue 320,305 121,922 442,227 419,426 Total current liabilities 455,994 124,186 580,180 562,729 Deferred revenue 15,615 12,022 27,637 28,058 Other long-term liabilities 53,686 (775 ) 52,911 54,385 Total liabilities 525,295 135,433 660,728 645,172 Stockholders' equity Common stock 8 — 8 8 Additional paid-in capital 1,256,854 — 1,256,854 1,168,563 Accumulated other comprehensive loss (11,811 ) 411 (11,400 ) (11,991 ) Accumulated deficit (297,089 ) (244,461 ) (541,550 ) (402,957 ) Total stockholders' equity 947,962 (244,050 ) 703,912 753,623 Total liabilities and stockholders' equity $ 1,473,257 $ (108,617 ) $ 1,364,640 $ 1,398,795 Condensed Consolidated Statements of Operations (Unaudited) - Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard The following schedules summarize the impacts from the adoption of the new revenue recognition standard on our condensed consolidated statement of operations for the three and six months ended June 30, 2018 : Three Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (in thousands) Revenues License $ 137,848 $ (15,267 ) $ 122,581 $ 103,296 Maintenance and services 144,441 (23,456 ) 120,985 109,584 Total revenues 282,289 (38,723 ) 243,566 212,880 Cost of revenues License 4,626 (91 ) 4,535 2,942 Maintenance and services 30,599 106 30,705 23,723 Total cost of revenues 35,225 15 35,240 26,665 Gross profit 247,064 (38,738 ) 208,326 186,215 Operating expenses Sales and marketing 144,150 6,352 150,502 124,160 Research and development 94,033 — 94,033 81,067 General and administrative 29,846 — 29,846 25,875 Total operating expenses 268,029 6,352 274,381 231,102 Operating loss (20,965 ) (45,090 ) (66,055 ) (44,887 ) Other income, net 6,866 118 6,984 4,029 Loss before income tax expense (benefit) (14,099 ) (44,972 ) (59,071 ) (40,858 ) Income tax expense (benefit) (2,033 ) 2,529 496 1,664 Net loss $ (12,066 ) $ (47,501 ) $ (59,567 ) $ (42,522 ) Six Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (in thousands) Revenues License $ 246,641 $ (18,394 ) $ 228,247 $ 200,540 Maintenance and services 281,855 (42,492 ) 239,363 212,246 Total revenues 528,496 (60,886 ) 467,610 412,786 Cost of revenues License 8,580 (143 ) 8,437 6,209 Maintenance and services 59,070 167 59,237 47,111 Total cost of revenues 67,650 24 67,674 53,320 Gross profit 460,846 (60,910 ) 399,936 359,466 Operating expenses Sales and marketing 282,556 10,959 293,515 242,178 Research and development 187,538 — 187,538 165,369 General and administrative 62,096 — 62,096 50,320 Total operating expenses 532,190 10,959 543,149 457,867 Operating loss (71,344 ) (71,869 ) (143,213 ) (98,401 ) Other income, net 8,328 80 8,408 5,254 Loss before income tax expense (benefit) (63,016 ) (71,789 ) (134,805 ) (93,147 ) Income tax expense (benefit) (4,478 ) 8,266 3,788 4,022 Net loss $ (58,538 ) $ (80,055 ) $ (138,593 ) $ (97,169 ) Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard The following schedules summarize the impacts from the adoption of the new revenue recognition standard on our condensed consolidated statement of comprehensive loss for the three and six months ended June 30, 2018 : Three Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (in thousands) Net loss $ (12,066 ) $ (47,501 ) $ (59,567 ) $ (42,522 ) Other comprehensive income (loss), net of tax: Foreign currency translation (1,314 ) 2,383 1,069 (6,384 ) Net unrealized gain on available-for-sale securities 74 — 74 — Comprehensive loss $ (13,306 ) $ (45,118 ) $ (58,424 ) $ (48,906 ) Six Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (in thousands) Net loss $ (58,538 ) $ (80,055 ) $ (138,593 ) $ (97,169 ) Other comprehensive income (loss), net of tax: Foreign currency translation (728 ) 2,094 1,366 (7,208 ) Net unrealized loss on available-for-sale securities (775 ) — (775 ) — Comprehensive loss $ (60,041 ) $ (77,961 ) $ (138,002 ) $ (104,377 ) Condensed Consolidated Statements of Cash Flows (Unaudited) - Reconciliation of the Impacts from the Adoption of the New Revenue Recognition Standard The following schedule summarizes the impacts from the adoption of the new revenue recognition standard on our condensed consolidated statement of cash flows for the six months ended June 30, 2018 : Six Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (in thousands) Operating activities Net loss $ (58,538 ) $ (80,055 ) $ (138,593 ) $ (97,169 ) Adjustments to reconcile net loss to net cash provided by operating activities Depreciation and amortization expense 19,050 — 19,050 23,837 Amortization of premiums on investments, net 137 — 137 — Stock-based compensation expense 114,075 — 114,075 101,309 Deferred income taxes (3,965 ) 3,784 (181 ) 465 Changes in operating assets and liabilities Accounts receivable, net 31,490 — 31,490 72,493 Prepaid expenses and other assets (44,925 ) 45,078 153 19,519 Income taxes receivable (125 ) (270 ) (395 ) (97 ) Deferred revenue (3,893 ) 29,522 25,629 30,072 Accounts payable and accrued liabilities 8,663 — 8,663 (16,421 ) Income taxes payable (2,713 ) 2,263 (450 ) 523 Net cash provided by operating activities 59,256 322 59,578 134,531 Investing activities Purchases of property and equipment (11,076 ) — (11,076 ) (33,860 ) Business combination, net of cash acquired (10,947 ) — (10,947 ) — Purchases of investments (156,591 ) — (156,591 ) — Maturities of investments 139,685 — 139,685 — Sales of investments 99 — 99 — Net cash used in investing activities (38,830 ) — (38,830 ) (33,860 ) Financing activities Proceeds from issuance of common stock 25,581 — 25,581 21,646 Repurchases of common stock (60,013 ) — (60,013 ) (40,014 ) Net cash used in financing activities (34,432 ) — (34,432 ) (18,368 ) Effect of exchange rate changes on cash and cash equivalents (2,781 ) (322 ) (3,103 ) 1,884 Net increase (decrease) in cash and cash equivalents (16,787 ) — (16,787 ) 84,187 Cash and cash equivalents Beginning of period 627,878 — 627,878 908,717 End of period $ 611,091 $ — $ 611,091 $ 992,904
Contract with Customer, Asset and Liability	A summary of the activity impacting our contract assets during the six months ended June 30, 2018 is presented below: Contract Assets (in thousands) Balances at December 31, 2017 $ — Adoption of ASC 606 40,854 Contract assets transferred to receivables (12,286 ) Additions to contract assets 43,991 Balances at June 30, 2018 $ 72,559 As of June 30, 2018 , our contract assets are expected to be transferred to receivables within the next 12 months and therefore are included in other current assets. There were no impairments of contract assets during the six months ended June 30, 2018 . A summary of the activity impacting our deferred revenue balances during the six months ended June 30, 2018 is presented below: Deferred Revenue (in thousands) Balances at December 31, 2017 $ 447,484 Adoption of ASC 606 (105,933 ) Deferred revenue recognized (220,112 ) Additional amounts deferred 214,481 Balances at June 30, 2018 $ 335,920 Assets Recognized from the Costs to Obtain our Contracts with Customers We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We amortize these deferred costs proportionate with related revenues over the benefit period, currently estimated to be four years. A summary of the activity impacting our deferred contract costs during the six months ended June 30, 2018 is presented below: Deferred Contract Costs (in thousands) Balances at December 31, 2017 $ — Adoption of ASC 606 25,489 Additional contract costs deferred 15,011 Amortization of deferred contract costs (4,578 ) Balances at June 30, 2018 $ 35,922

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Option Activity	A summary of the option activity during the six months ended June 30, 2018 follows: Options Outstanding Shares Weighted Average Exercise Price Per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Balances at December 31, 2017 3,017,113 $ 10.13 Options exercised (890,382 ) 9.16 Balances at June 30, 2018 2,126,731 $ 10.54 3.87 $ 185,469 Vested and expected to vest at June 30, 2018 2,126,731 $ 10.54 3.87 $ 185,469 Exercisable at June 30, 2018 2,084,543 $ 9.64 3.78 $ 183,660
Summary of RSU Activity	A summary of the RSU activity during the six months ended June 30, 2018 follows: Number of Shares Underlying Outstanding RSUs Weighted Average Grant-Date Fair Value per RSU Non-Vested outstanding at December 31, 2017 7,178,015 $ 62.79 RSUs granted 2,982,656 85.22 RSUs vested (1,975,245 ) 66.40 RSUs forfeited (445,779 ) 66.42 Non-Vested outstanding at June 30, 2018 7,739,647 $ 70.31
Summary of Shares Available for Grant	The summary of shares available for issuance of equity-based awards (including stock options, RSUs and shares issuable under our 2013 ESPP) during the six months ended June 30, 2018 follows: Shares Available for Grant 2013 Plan 2013 ESPP Balances at December 31, 2017 7,207,291 3,666,392 Authorized 4,023,117 804,623 Granted (2,982,656 ) (291,447 ) Forfeited 445,779 — Balances at June 30, 2018 8,693,531 4,179,568

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Future Minimum Lease Payments for Operating Leases, Net of Expected Sublease Receipts	The following table represents our non-cancellable minimum lease payments, net of future expected sublease payments to be received under non-cancellable subleases, remaining as of June 30, 2018 (in thousands): Period Ending Operating Lease Commitments Expected Sublease Receipts Net Remainder of 2018 $ 21,833 $ (4,401 ) $ 17,432 2019 41,019 (10,606 ) 30,413 2020 42,637 (7,113 ) 35,524 2021 43,152 (1,180 ) 41,972 2022 42,828 (597 ) 42,231 Thereafter 175,708 (121 ) 175,587 Total $ 367,177 $ (24,018 ) $ 343,159

Segments and Information abou27

Segments and Information about Revenues by Geographic Region (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Reconciliation of Revenue by Geographic Area	The following tables present our revenues by geographic region of end users who purchased products or services for the periods presented below: Three Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (dollars in thousands) United States and Canada $ 196,992 $ (27,758 ) $ 169,234 $ 146,102 International 85,297 (10,965 ) 74,332 66,778 Total revenues $ 282,289 $ (38,723 ) $ 243,566 $ 212,880 Six Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (dollars in thousands) United States and Canada $ 364,791 $ (41,114 ) $ 323,677 $ 287,598 International 163,705 (19,772 ) 143,933 125,188 Total revenues $ 528,496 $ (60,886 ) $ 467,610 $ 412,786

Net Income (Loss) Per Share (Ta

Net Income (Loss) Per Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of Net Loss Per Share, Basic and Diluted [Table Text Block]	The following tables present the computation of basic and diluted net loss per share for the three and six months ended June 30, 2018 and 2017 and include additional information regarding the impacts from the adoption of the new revenue recognition standard for the three and six months ended June 30, 2018 : Three Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (in thousands, except per share amounts) Net loss per share - basic and diluted Net loss $ (12,066 ) $ (47,501 ) $ (59,567 ) $ (42,522 ) Weighted average shares outstanding used to compute basic and diluted net loss per share 82,247 82,247 78,511 Net loss per share - basic and diluted $ (0.15 ) $ (0.72 ) $ (0.54 ) Six Months Ended June 30, 2018 2017 As Reported Impacts from Adoption Without Adoption As Reported (in thousands, except per share amounts) Net loss per share - basic and diluted Net loss $ (58,538 ) $ (80,055 ) $ (138,593 ) $ (97,169 ) Weighted average shares outstanding used to compute basic and diluted net loss per share 81,647 81,647 77,966 Net loss per share - basic and diluted $ (0.72 ) $ (1.70 ) $ (1.25 )
Schedule of Antidilutive Securities Excluded from Computation of Net Loss Per Share	The following shares were excluded from the computation of diluted net loss per share for the periods presented as their effect would have been antidilutive: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) Shares subject to outstanding common stock awards 10,078 11,452 10,078 11,452

Description of Business Narrati

Description of Business Narrative (Details)	Jun. 30, 2018product
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of key products	5

Summary of Significant Accoun30

Summary of Significant Accounting Policies (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018segment	Jan. 01, 2018USD ($)
Accounting Policies [Abstract]
Number of Operating Segments | segment	1
Terms of Payment due	30 days
Deferred Commissions
New Accounting Pronouncements or Change in Accounting Principle
Adoption of ASC 606		$ 25,489
Deferred Commissions | Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle
Adoption of ASC 606		25,500
Contract Assets
New Accounting Pronouncements or Change in Accounting Principle
Adoption of ASC 606		40,854
Contract Assets | Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle
Adoption of ASC 606		40,900
Deferred Revenue
New Accounting Pronouncements or Change in Accounting Principle
Adoption of ASC 606		(105,933)
Deferred Revenue | Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle
Adoption of ASC 606		105,900
Retained Earnings | Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle
Adoption of ASC 606		$ 146,800

Short-Term and Long-Term Inve31

Short-Term and Long-Term Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Schedule of Short-Term and Long-Term Investments
Amortized Cost	$ 392,484	$ 375,815
Unrealized Gains	2	3
Unrealized Losses	(1,441)	(667)
Fair Value	391,045	375,151
Short-term investments
Schedule of Short-Term and Long-Term Investments
Amortized Cost	301,871	226,994
Unrealized Gains	0	3
Unrealized Losses	(817)	(210)
Fair Value	301,054	226,787
Short-term investments | Commercial Paper, Not Included with Cash and Cash Equivalents
Schedule of Short-Term and Long-Term Investments
Amortized Cost		9,970
Unrealized Gains		0
Unrealized Losses		0
Fair Value		9,970
Short-term investments | U.S. treasury securities
Schedule of Short-Term and Long-Term Investments
Amortized Cost	178,842	160,206
Unrealized Gains	0	0
Unrealized Losses	(395)	(121)
Fair Value	178,447	160,085
Short-term investments | U.S. agency securities
Schedule of Short-Term and Long-Term Investments
Amortized Cost	21,403	9,917
Unrealized Gains	0	0
Unrealized Losses	(112)	(24)
Fair Value	21,291	9,893
Short-term investments | Corporate bonds
Schedule of Short-Term and Long-Term Investments
Amortized Cost	101,626	46,901
Unrealized Gains	0	3
Unrealized Losses	(310)	(65)
Fair Value	101,316	46,839
Long-term investments
Schedule of Short-Term and Long-Term Investments
Amortized Cost	90,613	148,821
Unrealized Gains	2	0
Unrealized Losses	(624)	(457)
Fair Value	89,991	148,364
Long-term investments | U.S. treasury securities
Schedule of Short-Term and Long-Term Investments
Amortized Cost	59,340	79,371
Unrealized Gains	0	0
Unrealized Losses	(400)	(202)
Fair Value	58,940	79,169
Long-term investments | U.S. agency securities
Schedule of Short-Term and Long-Term Investments
Amortized Cost	3,578	18,570
Unrealized Gains	0	0
Unrealized Losses	(33)	(102)
Fair Value	3,545	18,468
Long-term investments | Corporate bonds
Schedule of Short-Term and Long-Term Investments
Amortized Cost	27,695	50,880
Unrealized Gains	2	0
Unrealized Losses	(191)	(153)
Fair Value	$ 27,506	$ 50,727

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	$ 907,126	$ 966,970
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	516,081	582,835
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	391,045	384,135
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	0	0
Cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	516,081	582,835
Cash and cash equivalents | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	516,081	582,835
Commercial Paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value		8,984
Commercial Paper | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value		8,984
Commercial Paper, Not Included with Cash and Cash Equivalents | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value		9,970
Commercial Paper, Not Included with Cash and Cash Equivalents | Short-term investments | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value		9,970
U.S. treasury securities | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	178,447	160,085
U.S. treasury securities | Short-term investments | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	178,447	160,085
U.S. treasury securities | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	58,940	79,169
U.S. treasury securities | Long-term investments | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	58,940	79,169
U.S. agency securities | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	21,291	9,893
U.S. agency securities | Short-term investments | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	21,291	9,893
U.S. agency securities | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	3,545	18,468
U.S. agency securities | Long-term investments | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	3,545	18,468
Corporate bonds | Short-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	101,316	46,839
Corporate bonds | Short-term investments | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	101,316	46,839
Corporate bonds | Long-term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	27,506	50,727
Corporate bonds | Long-term investments | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis
Investments Fair Value	$ 27,506	$ 50,727

Stockholders' Equity (Details)

Stockholders' Equity (Details)	6 Months Ended
	Jun. 30, 2018USD ($)votes$ / sharesshares	Jun. 30, 2017USD ($)$ / sharesshares	Apr. 26, 2018USD ($)	Dec. 31, 2017$ / sharesshares	Nov. 01, 2016USD ($)
Class of Stock
Preferred Stock, Shares Authorized | shares	10,000,000			10,000,000
Preferred Stock, Par Value (in usd per share) | $ / shares	$ 0.0001			$ 0.0001
Stock Repurchase Program, Authorized Amount | $					$ 200,000,000
Stock Repurchase Program, Increase to Authorized Amount | $			$ 300,000,000
Stock Repurchased and Retired During Period, Shares | shares	679,081	703,086
Stock Repurchased, Average Cost Per Share | $ / shares	$ 88.37	$ 56.91
Stock Repurchased and Retired During Period, Value | $	$ 60,000,000	$ 40,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $	$ 340,000,000
Class B common stock
Class of Stock
Common Stock, Shares Authorized | shares	75,000,000			75,000,000
Common Stock, Par Value (in usd per share) | $ / shares	$ 0.0001			$ 0.0001
Votes per Share Entitled to Share Holder | votes	10
Class A common stock
Class of Stock
Common Stock, Shares Authorized | shares	750,000,000			750,000,000
Common Stock, Par Value (in usd per share) | $ / shares	$ 0.0001			$ 0.0001
Votes per Share Entitled to Share Holder | votes	1

Business Combination (Details)

Business Combination (Details) - USD ($) $ in Thousands	Jun. 07, 2018	Jun. 30, 2018	Dec. 31, 2017
Business Acquisition
Technology asset amortization period		5 years
Goodwill		$ 42,530	$ 35,083
Empirical Systems
Business Acquisition
Payments to Acquire Businesses, Gross	$ 11,000
Cash	53
Technology asset	3,500
Goodwill	7,447
Net assets acquired	$ 11,000

Revenue (Details)

Revenue (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Revenue from Contract with Customer [Abstract]
Amortization period, deferred commissions	4 years
Deferred Contract Costs, Current	$ 10.9

Revenue (Balance Sheet) (Detail

Revenue (Balance Sheet) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Revenue, Initial Application Period Cumulative Effect Transition
Cash and cash equivalents	$ 611,091	$ 627,878	$ 992,904	$ 908,717
Short-term investments	301,054	226,787
Accounts receivable, net of allowance for doubtful accounts of $1,097 and $1,003	170,907	203,366
Prepaid expenses and other current assets	115,605	30,514
Income taxes receivable	778	673
Total current assets	1,199,435	1,089,218
Long-term investments	89,991	148,364
Property and equipment, net	95,603	106,753
Goodwill	42,530	35,083
Deferred income taxes	4,072	5,287
Other long-term assets	41,626	14,090
Total assets	1,473,257	1,398,795
Accounts payable	3,829	4,448
Accrued compensation and employee-related benefits	75,129	96,390
Other accrued liabilities	54,745	37,722
Income taxes payable	1,986	4,743
Deferred revenue	320,305	419,426
Total current liabilities	455,994	562,729
Deferred revenue	15,615	28,058
Other long-term liabilities	53,686	54,385
Total liabilities	525,295	645,172
Common stock	8	8
Additional paid-in capital	1,256,854	1,168,563
Accumulated other comprehensive loss	(11,811)	(11,991)
Accumulated deficit	(297,089)	(402,957)
Total stockholders' equity	947,962	753,623
Total liabilities and stockholders' equity	1,473,257	1,398,795
Impacts from Adoption | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition
Cash and cash equivalents	0	0
Short-term investments	0
Accounts receivable, net of allowance for doubtful accounts of $1,097 and $1,003	0
Prepaid expenses and other current assets	(85,423)
Income taxes receivable	269
Total current assets	(85,154)
Long-term investments	0
Property and equipment, net	0
Goodwill	0
Deferred income taxes	1,509
Other long-term assets	(24,972)
Total assets	(108,617)
Accounts payable	0
Accrued compensation and employee-related benefits	0
Other accrued liabilities	0
Income taxes payable	2,264
Deferred revenue	121,922
Total current liabilities	124,186
Deferred revenue	12,022
Other long-term liabilities	(775)
Total liabilities	135,433
Common stock	0
Additional paid-in capital	0
Accumulated other comprehensive loss	411
Accumulated deficit	(244,461)
Total stockholders' equity	(244,050)
Total liabilities and stockholders' equity	(108,617)
Without Adoption (ASC 605)
Revenue, Initial Application Period Cumulative Effect Transition
Cash and cash equivalents	611,091	$ 627,878
Short-term investments	301,054
Accounts receivable, net of allowance for doubtful accounts of $1,097 and $1,003	170,907
Prepaid expenses and other current assets	30,182
Income taxes receivable	1,047
Total current assets	1,114,281
Long-term investments	89,991
Property and equipment, net	95,603
Goodwill	42,530
Deferred income taxes	5,581
Other long-term assets	16,654
Total assets	1,364,640
Accounts payable	3,829
Accrued compensation and employee-related benefits	75,129
Other accrued liabilities	54,745
Income taxes payable	4,250
Deferred revenue	442,227
Total current liabilities	580,180
Deferred revenue	27,637
Other long-term liabilities	52,911
Total liabilities	660,728
Common stock	8
Additional paid-in capital	1,256,854
Accumulated other comprehensive loss	(11,400)
Accumulated deficit	(541,550)
Total stockholders' equity	703,912
Total liabilities and stockholders' equity	$ 1,364,640

Revenue (Income Statement) (Det

Revenue (Income Statement) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition
License		$ 137,848	$ 103,296	$ 246,641	$ 200,540
Maintenance and services		144,441	109,584	281,855	212,246
Total revenues		282,289	212,880	528,496	412,786
License		4,626	2,942	8,580	6,209
Maintenance and services		30,599	23,723	59,070	47,111
Cost of Revenue	[1]	35,225	26,665	67,650	53,320
Gross Profit		247,064	186,215	460,846	359,466
Sales and marketing	[1]	144,150	124,160	282,556	242,178
Research and development	[1]	94,033	81,067	187,538	165,369
General and administrative	[1]	29,846	25,875	62,096	50,320
Operating Expenses		268,029	231,102	532,190	457,867
Operating Income (Loss)		(20,965)	(44,887)	(71,344)	(98,401)
Other income, net		6,866	4,029	8,328	5,254
Loss before income tax expense (benefit)		(14,099)	(40,858)	(63,016)	(93,147)
Income tax expense (benefit)		(2,033)	1,664	(4,478)	4,022
Net loss		(12,066)	$ (42,522)	(58,538)	$ (97,169)
Impacts from Adoption | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition
License		(15,267)		(18,394)
Maintenance and services		(23,456)		(42,492)
Total revenues		(38,723)		(60,886)
License		(91)		(143)
Maintenance and services		106		167
Cost of Revenue		15		24
Gross Profit		(38,738)		(60,910)
Sales and marketing		6,352		10,959
Research and development		0		0
General and administrative		0		0
Operating Expenses		6,352		10,959
Operating Income (Loss)		(45,090)		(71,869)
Other income, net		118		80
Loss before income tax expense (benefit)		(44,972)		(71,789)
Income tax expense (benefit)		2,529		8,266
Net loss		(47,501)		(80,055)
Without Adoption (ASC 605)
Revenue, Initial Application Period Cumulative Effect Transition
License		122,581		228,247
Maintenance and services		120,985		239,363
Total revenues		243,566		467,610
License		4,535		8,437
Maintenance and services		30,705		59,237
Cost of Revenue		35,240		67,674
Gross Profit		208,326		399,936
Sales and marketing		150,502		293,515
Research and development		94,033		187,538
General and administrative		29,846		62,096
Operating Expenses		274,381		543,149
Operating Income (Loss)		(66,055)		(143,213)
Other income, net		6,984		8,408
Loss before income tax expense (benefit)		(59,071)		(134,805)
Income tax expense (benefit)		496		3,788
Net loss		$ (59,567)		$ (138,593)
[1]	Includes stock-based compensation expense as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands)Cost of revenues$3,299 $2,790 $6,286$5,367Sales and marketing22,150 18,526 42,16536,618Research and development26,837 25,648 51,99449,163General and administrative6,026 5,150 13,63010,161

Revenue (Comprehensive Income)

Revenue (Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition
Net loss	$ (12,066)	$ (42,522)	$ (58,538)	$ (97,169)
Foreign currency translation	(1,314)	(6,384)	(728)	(7,208)
Net unrealized gain (loss) on available-for-sale securities	74	0	(775)	0
Comprehensive Loss	(13,306)	$ (48,906)	(60,041)	$ (104,377)
Impacts from Adoption | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition
Net loss	(47,501)		(80,055)
Foreign currency translation	2,383		2,094
Net unrealized gain (loss) on available-for-sale securities	0		0
Comprehensive Loss	(45,118)		(77,961)
Without Adoption (ASC 605)
Revenue, Initial Application Period Cumulative Effect Transition
Net loss	(59,567)		(138,593)
Foreign currency translation	1,069		1,366
Net unrealized gain (loss) on available-for-sale securities	74		(775)
Comprehensive Loss	$ (58,424)		$ (138,002)

Revenue (Cash Flow) (Details)

Revenue (Cash Flow) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenue, Initial Application Period Cumulative Effect Transition
Net loss	$ (12,066)	$ (42,522)	$ (58,538)	$ (97,169)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization expense			19,050	23,837
Amortization of premiums on investments, net			137	0
Stock-based compensation expense			114,075	101,309
Deferred income taxes			(3,965)	465
Changes in operating assets and liabilities
Accounts receivable, net			31,490	72,493
Prepaid expenses and other assets			(44,925)	19,519
Income taxes receivable			(125)	(97)
Deferred revenue			(3,893)	30,072
Accounts payable and accrued liabilities			8,663	(16,421)
Income taxes payable			(2,713)	523
Net cash provided by operating activities			59,256	134,531
Investing activities
Purchases of property and equipment			(11,076)	(33,860)
Business combination, net of cash acquired			(10,947)	0
Purchases of investments			(156,591)	0
Maturities of investments			139,685	0
Sales of investments			99	0
Net cash used in investing activities			(38,830)	(33,860)
Financing activities
Proceeds from issuance of common stock			25,581	21,646
Repurchases of common stock			60,013	40,014
Net cash used in financing activities			(34,432)	(18,368)
Effect of exchange rate changes on cash and cash equivalents			(2,781)	1,884
Net increase (decrease) in cash and cash equivalents			(16,787)	84,187
Cash and cash equivalents
Beginning of period			627,878	908,717
End of period	611,091	$ 992,904	611,091	$ 992,904
Impacts from Adoption | Accounting Standards Update 2014-09
Revenue, Initial Application Period Cumulative Effect Transition
Net loss	(47,501)		(80,055)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization expense			0
Amortization of premiums on investments, net			0
Stock-based compensation expense			0
Deferred income taxes			3,784
Changes in operating assets and liabilities
Accounts receivable, net			0
Prepaid expenses and other assets			45,078
Income taxes receivable			(270)
Deferred revenue			29,522
Accounts payable and accrued liabilities			0
Income taxes payable			2,263
Net cash provided by operating activities			322
Investing activities
Purchases of property and equipment			0
Business combination, net of cash acquired			0
Purchases of investments			0
Maturities of investments			0
Sales of investments			0
Net cash used in investing activities			0
Financing activities
Proceeds from issuance of common stock			0
Repurchases of common stock			0
Net cash used in financing activities			0
Effect of exchange rate changes on cash and cash equivalents			(322)
Net increase (decrease) in cash and cash equivalents			0
Cash and cash equivalents
Beginning of period			0
End of period	0		0
Without Adoption (ASC 605)
Revenue, Initial Application Period Cumulative Effect Transition
Net loss	(59,567)		(138,593)
Adjustments to reconcile net loss to net cash provided by operating activities
Depreciation and amortization expense			19,050
Amortization of premiums on investments, net			137
Stock-based compensation expense			114,075
Deferred income taxes			(181)
Changes in operating assets and liabilities
Accounts receivable, net			31,490
Prepaid expenses and other assets			153
Income taxes receivable			(395)
Deferred revenue			25,629
Accounts payable and accrued liabilities			8,663
Income taxes payable			(450)
Net cash provided by operating activities			59,578
Investing activities
Purchases of property and equipment			(11,076)
Business combination, net of cash acquired			(10,947)
Purchases of investments			(156,591)
Maturities of investments			139,685
Sales of investments			99
Net cash used in investing activities			(38,830)
Financing activities
Proceeds from issuance of common stock			25,581
Repurchases of common stock			60,013
Net cash used in financing activities			(34,432)
Effect of exchange rate changes on cash and cash equivalents			(3,103)
Net increase (decrease) in cash and cash equivalents			(16,787)
Cash and cash equivalents
Beginning of period			627,878
End of period	$ 611,091		$ 611,091

Revenue (Contract Assets) (Deta

Revenue (Contract Assets) (Details) - Contract Assets - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jan. 01, 2018
Contract Asset Rollforward
Balances at December 31, 2017	$ 0
Adoption of ASC 606		$ 40,854
Contract assets transferred to receivables	(12,286)
Additions to contract assets	43,991
Balances at June 30, 2018	$ 72,559

Revenue (Deferred Revenue) (Det

Revenue (Deferred Revenue) (Details) - Deferred Revenue - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jan. 01, 2018
Deferred Revenue Rollforward
Balances at December 31, 2017	$ 447,484
Adoption of ASC 606		$ (105,933)
Deferred revenue recognized	(220,112)
Additional amounts deferred	214,481
Balances at June 30, 2018	$ 335,920

Revenue (Deferred Contract Cost

Revenue (Deferred Contract Costs) (Details) - Deferred Commissions - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Deferred Contract Costs
Capitalized Contract Cost, Net	$ 35,922		$ 0
Adoption of ASC 606		$ 25,489
Additional contract costs deferred	15,011
Amortization of deferred contract costs	$ (4,578)

Revenue (Performance Obligation

Revenue (Performance Obligations) (Details) $ in Millions	Jun. 30, 2018USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, Remaining Performance Obligation	$ 138.5
Recognized Over Next 24 Months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
Revenue, Remaining Performance Obligation	$ 111.4

Stock-Based Compensation (Detai

Stock-Based Compensation (Details - Narrative) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Option expiration period (in years)	10 years
Vesting period (in years)	4 years
Share-based Compensation Arrangement by Share-based Payment Award
Unrecognized compensation expense	$ 505.4
Recognition period (in years)	2 years 10 months 24 days
2013 ESPP
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Maximum Payroll Deduction, Percent	15.00%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Purchase Period	6 months
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	85.00%

Stock-Based Compensation (Det45

Stock-Based Compensation (Details - Options) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Shares
Options Outstanding, Shares, Beginning of Period | shares	3,017,113
Options Outstanding, Shares, Options Exercised | shares	(890,382)
Options Outstanding, Shares, End of Period | shares	2,126,731
Options Outstanding, Shares, Vested and Expected to Vest | shares	2,126,731
Options Outstanding, Shares, Exercisable | shares	2,084,543
Weighted Average Exercise Price Per Share
Options Outstanding, Weighted Average Exercise Price, Beginning of Period, USD per Share | $ / shares	$ 10.13
Options Outstanding, Weighted Average Exercise Price, Options Exercised, USD per Share | $ / shares	9.16
Options Outstanding, Weighted Average Exercise Price, End of Period, USD per Share | $ / shares	10.54
Options Outstanding, Weighted Average Exercise Price Per Share, Vested and Expected to Vest, USD per Share | $ / shares	10.54
Options Outstanding, Weighted Average Exercise Price Per Share, Exercisable, USD per Share | $ / shares	$ 9.64
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options Outstanding, Weighted Average Remaining Contractual Term, End of Period (in years)	3 years 10 months 13 days
Options Outstanding, Weighted Average Remaining Contractual Term, Vested and Expected to Vest (in years)	3 years 10 months 13 days
Options Outstanding, Weighted Average Remaining Contractual Term, Exercisable (in years)	3 years 9 months 10 days
Options Outstanding, Aggregate Intrinsic Value, End of Period | $	$ 185,469
Options Outstanding, Aggregate Intrinsic Value, Vested and Expected to Vest | $	185,469
Options Outstanding, Aggregate Intrinsic Value, Exercisable | $	$ 183,660

Stock Based Compensation (Detai

Stock Based Compensation (Details - RSUs) - RSUs	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Number of Shares Underlying Outstanding RSUs
RSU Shares Outstanding, Beginning of Period | shares	7,178,015
RSUs granted, Shares | shares	2,982,656
RSUs vested, Shares | shares	(1,975,245)
RSUs forfeited, Shares | shares	(445,779)
RSU Shares Outstanding, End of Period | shares	7,739,647
Weighted Average Grant-Date Fair Value per RSU
Weighted Average Fair Value, Beginning of Period, USD per Share | $ / shares	$ 62.79
Weighted Average Fair Value, RSUs Granted, USD per Share | $ / shares	85.22
Weighted Average Fair Value, RSUs Vested, USD per Share | $ / shares	66.40
Weighted Average Fair Value, RSUs Forfeited, USD per Share | $ / shares	66.42
Weighted Average Fair Value, End of Period, USD per Share | $ / shares	$ 70.31

Stock-Based Compensation (Det47

Stock-Based Compensation (Details - Shares Available)	6 Months Ended
	Jun. 30, 2018shares
2013 Plan
Share-based Compensation Arrangement by Share-based Payment Award, Equity Awards, Outstanding [Roll Forward]
Equity Based Awards, Beginning of Period, Shares	7,207,291
Authorized, Shares	4,023,117
Granted, Shares	(2,982,656)
Forfeited, Shares	445,779
Equity Based Awards, End of Period, Shares	8,693,531
2013 ESPP | Class A common stock
Share-based Compensation Arrangement by Share-based Payment Award, Equity Awards, Outstanding [Roll Forward]
Equity Based Awards, Beginning of Period, Shares	3,666,392
Authorized, Shares	804,623
Granted, Shares	(291,447)
Forfeited, Shares	0
Equity Based Awards, End of Period, Shares	4,179,568

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Tax Expense Benefit
Effective tax rate	14.40%	(4.10%)	7.10%	(4.30%)
Income tax expense (benefit)	$ (2,033)	$ 1,664	$ (4,478)	$ 4,022
Without Adoption (ASC 605)
Income Tax Expense Benefit
Effective tax rate	(0.80%)		(2.80%)
Income tax expense (benefit)	$ 496		$ 3,788

Commitments and Contingencies49

Commitments and Contingencies (Details) $ in Thousands	Jun. 30, 2018USD ($)
Operating Lease Commitments
Remainder of 2018	$ 21,833
2,019	41,019
2,020	42,637
2,021	43,152
2,022	42,828
Thereafter	175,708
Total	367,177
Expected Sublease Receipts
Remainder of 2018	(4,401)
2,019	(10,606)
2,020	(7,113)
2,021	(1,180)
2,022	(597)
Thereafter	(121)
Total	(24,018)
Net
Net, Remainder of 2018	17,432
Net, 2019	30,413
Net, 2020	35,524
Net, 2021	41,972
Net, 2022	42,231
Net, Thereafter	175,587
Net, Total	$ 343,159

Segments and Information abou50

Segments and Information about Revenues by Geographic Region (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information
Total revenues	$ 282,289	$ 212,880	$ 528,496	$ 412,786
United States and Canada
Segment Reporting Information
Total revenues	196,992	146,102	364,791	287,598
International
Segment Reporting Information
Total revenues	85,297	$ 66,778	163,705	$ 125,188
Impacts from Adoption | Accounting Standards Update 2014-09
Segment Reporting Information
Total revenues	(38,723)		(60,886)
Impacts from Adoption | Accounting Standards Update 2014-09 | United States and Canada
Segment Reporting Information
Total revenues	(27,758)		(41,114)
Impacts from Adoption | Accounting Standards Update 2014-09 | International
Segment Reporting Information
Total revenues	(10,965)		(19,772)
Without Adoption (ASC 605)
Segment Reporting Information
Total revenues	243,566		467,610
Without Adoption (ASC 605) | United States and Canada
Segment Reporting Information
Total revenues	169,234		323,677
Without Adoption (ASC 605) | International
Segment Reporting Information
Total revenues	$ 74,332		$ 143,933

Net Income (Loss) Per Share (De

Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net loss per share - basic and diluted
Net loss	$ (12,066)	$ (42,522)	$ (58,538)	$ (97,169)
Weighted average shares outstanding used to compute basic and diluted net loss per share	82,247	78,511	81,647	77,966
Net loss per share - basic and diluted (in usd per share)	$ (0.15)	$ (0.54)	$ (0.72)	$ (1.25)
Antidilutive shares excluded from computation of diluted net loss	10,078	11,452	10,078	11,452
Without Adoption (ASC 605)
Net loss per share - basic and diluted
Net loss	$ (59,567)		$ (138,593)
Weighted average shares outstanding used to compute basic and diluted net loss per share	82,247		81,647
Net loss per share - basic and diluted (in usd per share)	$ (0.72)		$ (1.70)
Accounting Standards Update 2014-09 | Impacts from Adoption
Net loss per share - basic and diluted
Net loss	$ (47,501)		$ (80,055)