Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-36180 | |
Entity Registrant Name | CHEGG, INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 20-3237489 | |
Entity Address, Address Line One | 3990 Freedom Circle | |
Entity Address, City or Town | Santa Clara | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95054 | |
City Area Code | 408 | |
Local Phone Number | 855-5700 | |
Title of 12(b) Security | Common stock, $0.001 par value per share | |
Trading Symbol | CHGG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 120,981,819 | |
Entity Central Index Key | 0001364954 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and cash equivalents | $ 450,457 | $ 374,664 |
Short-term investments | 345,392 | 93,345 |
Accounts receivable, net of allowance for doubtful accounts of $31 and $229 at September 30, 2019 and December 31, 2018, respectively | 13,678 | 12,733 |
Prepaid expenses | 9,654 | 4,673 |
Other current assets | 24,888 | 9,510 |
Total current assets | 844,069 | 494,925 |
Long-term investments | 340,118 | 16,052 |
Property and equipment, net | 77,667 | 59,904 |
Goodwill | 149,068 | 149,524 |
Intangible assets, net | 20,622 | 25,915 |
Right of use assets | 16,312 | 0 |
Other assets | 15,836 | 14,618 |
Total assets | 1,463,692 | 760,938 |
Current liabilities | ||
Accounts payable | 4,197 | 8,177 |
Deferred revenue | 27,457 | 17,418 |
Current operating lease liabilities | 4,982 | 0 |
Accrued liabilities | 52,199 | 34,077 |
Total current liabilities | 88,835 | 59,672 |
Long-term liabilities | ||
Convertible senior notes, net | 887,215 | 283,668 |
Long-term operating lease liabilities | 15,315 | 0 |
Other long-term liabilities | 3,815 | 6,964 |
Total long-term liabilities | 906,345 | 290,632 |
Total liabilities | 995,180 | 350,304 |
Commitments and contingencies (Note 9) | ||
Stockholders' equity: | ||
Preferred stock, $0.001 par value – 10,000,000 shares authorized, no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value 400,000,000 shares authorized; 120,668,843 and 115,500,418 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 121 | 116 |
Additional paid-in capital | 894,660 | 818,113 |
Accumulated other comprehensive loss | (1,758) | (1,019) |
Accumulated deficit | (424,511) | (406,576) |
Total stockholders' equity | 468,512 | 410,634 |
Total liabilities and stockholders' equity | $ 1,463,692 | $ 760,938 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable, current | $ 31 | $ 229 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 120,668,843 | 115,500,418 |
Common stock, shares outstanding | 120,668,843 | 115,500,418 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Net revenues | $ 94,151 | $ 74,237 | $ 285,422 | $ 225,408 |
Cost of revenues | 22,164 | 19,918 | 66,017 | 57,926 |
Gross profit | 71,987 | 54,319 | 219,405 | 167,482 |
Operating expenses: | ||||
Research and development | 36,442 | 29,045 | 101,199 | 80,796 |
Sales and marketing | 16,822 | 15,690 | 47,334 | 42,463 |
General and administrative | 23,752 | 20,000 | 70,044 | 57,735 |
Restructuring charges | 28 | 17 | 97 | 252 |
Total operating expenses | 77,044 | 64,752 | 218,674 | 181,246 |
(Loss) income from operations | (5,057) | (10,433) | 731 | (13,764) |
Interest expense, net and other income, net: | ||||
Interest expense, net | (13,548) | (3,772) | (31,294) | (7,456) |
Other income, net | 7,751 | 1,209 | 14,571 | 2,667 |
Total interest expense, net and other income, net | (5,797) | (2,563) | (16,723) | (4,789) |
Loss before provision for income taxes | (10,854) | (12,996) | (15,992) | (18,553) |
Provision for income taxes | 623 | 713 | 1,832 | 1,682 |
Net loss | $ (11,477) | $ (13,709) | $ (17,824) | $ (20,235) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.10) | $ (0.12) | $ (0.15) | $ (0.18) |
Weighted average shares used to compute net loss per share, basic and diluted (in shares) | 120,085 | 114,184 | 118,547 | 112,621 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (11,477) | $ (13,709) | $ (17,824) | $ (20,235) |
Other comprehensive loss: | ||||
Change in net unrealized loss on available for sale investments, net of tax | (73) | 43 | 379 | 66 |
Change in foreign currency translation adjustments, net of tax | (1,067) | (347) | (1,118) | (749) |
Other comprehensive loss | (1,140) | (304) | (739) | (683) |
Total comprehensive loss | $ (12,617) | $ (14,013) | $ (18,563) | $ (20,918) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Common stock, beginning balance (in shares) at Dec. 31, 2017 | 109,668,000 | ||||
Beginning balance at Dec. 31, 2017 | $ 391,062 | $ 110 | $ 782,845 | $ (282) | $ (391,611) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity component of convertible senior notes, net of issuance costs | 62,444 | 62,444 | |||
Purchase of convertible senior notes capped call | (39,227) | (39,227) | |||
Repurchase of common stock (in shares) | (983,000) | ||||
Repurchase of common stock | (20,000) | $ (1) | (19,999) | ||
Issuance of common stock upon exercise of stock options and ESPP (in shares) | 2,799,000 | ||||
Issuance of common stock upon exercise of stock options and ESPP | 23,461 | $ 3 | 23,458 | ||
Net issuance of common stock for settlement of RSUs (in shares) | 3,080,000 | ||||
Net issuance of common stock for settlement of RSUs | (45,666) | $ 3 | (45,669) | ||
Warrant exercises (in shares) | 34,000 | ||||
Warrant exercises | 0 | 0 | |||
Share-based compensation expense | 37,503 | 37,503 | |||
Other comprehensive income (loss) | (683) | (683) | |||
Net loss | (20,235) | (20,235) | |||
Common stock, ending balance (in shares) at Sep. 30, 2018 | 114,598,000 | ||||
Beginning balance at Sep. 30, 2018 | 388,582 | $ 115 | 801,355 | (965) | (411,923) |
Common stock, beginning balance (in shares) at Jun. 30, 2018 | 113,551,000 | ||||
Beginning balance at Jun. 30, 2018 | 388,719 | $ 114 | 787,480 | (661) | (398,214) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options and ESPP (in shares) | 765,000 | ||||
Issuance of common stock upon exercise of stock options and ESPP | 5,413 | $ 1 | 5,412 | ||
Net issuance of common stock for settlement of RSUs (in shares) | 282,000 | ||||
Net issuance of common stock for settlement of RSUs | (5,355) | $ 0 | (5,355) | ||
Share-based compensation expense | 13,818 | 13,818 | |||
Other comprehensive income (loss) | (304) | (304) | |||
Net loss | (13,709) | (13,709) | |||
Common stock, ending balance (in shares) at Sep. 30, 2018 | 114,598,000 | ||||
Beginning balance at Sep. 30, 2018 | $ 388,582 | $ 115 | 801,355 | (965) | (411,923) |
Common stock, beginning balance (in shares) at Dec. 31, 2018 | 115,500,418 | 115,500,000 | |||
Beginning balance at Dec. 31, 2018 | $ 410,634 | $ 116 | 818,113 | (1,019) | (406,576) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Equity component of convertible senior notes, net of issuance costs | 206,747 | 206,747 | |||
Purchase of convertible senior notes capped call | (97,200) | (97,200) | |||
Repurchase of common stock (in shares) | (504,000) | ||||
Repurchase of common stock | (20,000) | $ (1) | (19,999) | ||
Issuance of common stock upon exercise of stock options and ESPP (in shares) | 2,545,000 | ||||
Issuance of common stock upon exercise of stock options and ESPP | 27,720 | $ 3 | 27,717 | ||
Net issuance of common stock for settlement of RSUs (in shares) | 3,064,000 | ||||
Net issuance of common stock for settlement of RSUs | (91,073) | $ 3 | (91,076) | ||
Issuance of common stock in connection with acquisition (in shares) | 64,000 | ||||
Issuance of common stock in connection with prior acquisition | 3,003 | 3,003 | |||
Share-based compensation expense | 47,355 | 47,355 | |||
Other comprehensive income (loss) | (739) | (739) | |||
Net loss | $ (17,824) | (17,824) | |||
Common stock, ending balance (in shares) at Sep. 30, 2019 | 120,668,843 | 120,669,000 | |||
Beginning balance at Sep. 30, 2019 | $ 468,512 | $ 121 | 894,660 | (1,758) | (424,511) |
Common stock, beginning balance (in shares) at Jun. 30, 2019 | 119,336,000 | ||||
Beginning balance at Jun. 30, 2019 | 459,571 | $ 119 | 873,104 | (618) | (413,034) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options and ESPP (in shares) | 991,000 | ||||
Issuance of common stock upon exercise of stock options and ESPP | 11,674 | $ 1 | 11,673 | ||
Net issuance of common stock for settlement of RSUs (in shares) | 319,000 | ||||
Net issuance of common stock for settlement of RSUs | (8,824) | $ 1 | (8,825) | ||
Issuance of common stock in connection with acquisition (in shares) | 23,000 | ||||
Issuance of common stock in connection with prior acquisition | 1,843 | 1,843 | |||
Share-based compensation expense | 16,865 | 16,865 | |||
Other comprehensive income (loss) | (1,140) | (1,140) | |||
Net loss | $ (11,477) | (11,477) | |||
Common stock, ending balance (in shares) at Sep. 30, 2019 | 120,668,843 | 120,669,000 | |||
Beginning balance at Sep. 30, 2019 | $ 468,512 | $ 121 | $ 894,660 | $ (1,758) | $ (424,511) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities | ||
Net loss | $ (17,824) | $ (20,235) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization expense | 21,369 | 16,631 |
Share-based compensation expense | 47,355 | 37,503 |
Loss from write-off of property and equipment | 832 | 29 |
Amortization of debt discount and issuance costs | 30,114 | 6,958 |
Deferred income taxes | 59 | (315) |
Operating lease expense, net of accretion | 3,284 | 0 |
Other non-cash items | (370) | 51 |
Change in assets and liabilities: | ||
Accounts receivable | (850) | 2,409 |
Prepaid expenses and other current assets | (20,741) | (24,250) |
Other assets | 1,989 | (587) |
Accounts payable | (3,983) | (3,001) |
Deferred revenue | 10,039 | 11,841 |
Accrued liabilities | 18,095 | 16,044 |
Other liabilities | (2,793) | 1,589 |
Net cash provided by operating activities | 86,575 | 44,667 |
Cash flows from investing activities | ||
Purchases of investments | (822,869) | (113,276) |
Proceeds from sale of investments | 53,261 | 1,800 |
Maturities of investments | 190,744 | 118,080 |
Purchases of property and equipment | (31,520) | (18,048) |
Acquisition of businesses, net of cash acquired | 0 | (34,650) |
Net cash used in investing activities | (610,384) | (46,094) |
Cash flows from financing activities | ||
Common stock issued under stock plans, net | 27,723 | 23,463 |
Payment of taxes related to the net share settlement of equity awards | (91,076) | (45,669) |
Proceeds from issuance of convertible senior notes, net of issuance costs | 780,180 | 335,618 |
Purchase of convertible senior notes capped call | (97,200) | (39,227) |
Repurchase of common stock | (20,000) | (20,000) |
Net cash provided by financing activities | 599,627 | 254,185 |
Net increase in cash, cash equivalents and restricted cash | 75,818 | 252,758 |
Cash, cash equivalents and restricted cash, beginning of period | 375,945 | 126,963 |
Cash, cash equivalents and restricted cash, end of period | 451,763 | 379,721 |
Supplemental cash flow data: | ||
Interest | 901 | 55 |
Income taxes | 1,492 | 1,560 |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | 3,847 | 0 |
Right of use assets obtained in exchange for lease obligations, operating leases | 2,638 | 0 |
Non-cash investing and financing activities: | ||
Accrued purchases of long-lived assets | 4,452 | 2,993 |
Issuance of common stock related to prior acquisition | $ 3,003 | $ 0 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - Reconciliation of cash, cash equivalents and restricted cash - USD ($) $ in Thousands | Sep. 30, 2019 | Sep. 30, 2018 |
Statement of Cash Flows [Abstract] | ||
Cash and cash equivalents | $ 450,457 | $ 379,020 |
Restricted cash included in other current assets | 125 | 0 |
Restricted cash included in other assets | 1,181 | 701 |
Total cash, cash equivalents and restricted cash | $ 451,763 | $ 379,721 |
Background and Basis of Present
Background and Basis of Presentation | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | Background and Basis of Presentation Company and Background Chegg, Inc. (Chegg, the Company, we, us, or our), headquartered in Santa Clara, California, was incorporated as a Delaware corporation in July 2005. Chegg is a smarter way to student. As the leading direct-to-student learning platform, we strive to improve educational outcomes by putting the student first in all our decisions. We support students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials. Our services are available online, anytime and anywhere, so we can reach students when they need us most. Basis of Presentation The accompanying condensed consolidated balance sheet as of September 30, 2019 , the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive loss, and the condensed consolidated statements of stockholder's equity for the three and nine months ended September 30, 2019 and 2018 , the condensed consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018 and the related footnote disclosures are unaudited. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position as of September 30, 2019 , our results of operations, results of comprehensive loss, and stockholder's equity for the three and nine months ended September 30, 2019 and 2018 and cash flows for the nine months ended September 30, 2019 and 2018 . Our results of operations, stockholder's equity, and cash flows for the nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year. We operate in a single segment. Our fiscal year ends on December 31 and in this report we refer to the year ended December 31, 2018 as 2018 . The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2018 (the Annual Report on Form 10-K) filed with the U.S. Securities and Exchange Commission (SEC). We have changed the captions on our condensed consolidated statements of cash flows from “purchases of marketable securities” to “purchases of investments” and from “maturities of marketable securities” to “maturities of investments.” This change does not impact any current or previously reported results. Except for our policies on leases and convertible senior notes, there have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Annual Report on Form 10-K. Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right of use (ROU) assets, operating lease liabilities within current liabilities, and operating lease liabilities within long-term liabilities on our condensed consolidated balance sheet. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. Our leases do not provide an implicit rate and therefore we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future minimum lease payments. Our incremental borrowing rate is estimated based on the estimated rate incurred to borrow, on a collateralized basis over a similar term as our leases, an amount equal to the lease payments in a similar economic environment. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. We do not record leases on our condensed consolidated balance sheet with a term of one year or less. We do not separate lease and non-lease components but rather account for each separate component as a single lease component for all underlying classes of assets. Some of our leases include payments that are dependent on an index, such as the Consumer Price Index (CPI), and our minimum lease payments include payments based on the index at inception with any future changes in such indices recognized as an expense in the period of change. Where leases contain escalation clauses, rent abatements, or concessions, such as rent holidays and landlord or tenant incentives or allowances, we apply them in the determination of straight-line operating lease cost over the lease term. Convertible Senior Notes, net In March 2019 , we issued $700 million in aggregate principal amount of 0.125% convertible senior notes due in 2025 (2025 notes) and in April 2019 , the initial purchasers fully exercised their option to purchase $100 million of additional 2025 notes for aggregate total gross proceeds of $800 million . In April 2018 , we issued $345 million in aggregate principal amount of 0.25% convertible senior notes due in 2023 (2023 notes). Collectively, the 2025 notes and the 2023 notes are referred to as the “notes.” In accounting for their issuance, we separated the notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of similar liabilities that do not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the carrying amount of the liability component from the par value of the notes. The difference represents the debt discount, recorded as a reduction of the convertible senior notes on our condensed consolidated balance sheets, and is amortized to interest expense over the term of the notes using the effective interest rate method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the issuance costs related to the notes, we allocated the total amount of issuance costs incurred to liability and equity components based on their relative values. Issuance costs attributable to the liability component are being amortized on a straight-line basis, which approximates the effective interest rate method, to interest expense over the term of the notes. The issuance costs attributable to the equity component are recorded as a reduction of the equity component within additional paid-in capital. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States (U.S. GAAP) requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities; the disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, assumptions, and judgments are used for, but not limited to: revenue recognition, recoverability of accounts receivable, restructuring charges, share-based compensation expense including estimated forfeitures, accounting for income taxes, useful lives assigned to long-lived assets for depreciation and amortization, impairment of goodwill and long-lived assets, the valuation of acquired intangible assets, the valuation of our convertible senior notes, and operating lease ROU assets and operating lease liabilities. We base our estimates on historical experience, knowledge of current business conditions, and various other factors we believe to be reasonable under the circumstances. These estimates are based on management’s knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ from these estimates, and such differences could be material to our financial position and results of operations. Recent Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted In May 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. ASU 2019-05 provides entities with an option to irrevocably elect the fair value option for eligible instruments. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. ASU 2019-04 provides codification updates to ASU 2016-01 and ASU 2016-13. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 replaces the existing incurred loss impairment model for trade receivables with an expected loss model which requires the use of forward-looking information to calculate expected credit loss estimates. Additionally, the concept of other-than-temporary impairment for available-for-sale investments is eliminated and instead ASU 2016-13 requires an entity to focus on determining whether any impairment is a result of a credit loss or other factors. It also requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction to the amortized cost basis. These changes may result in earlier recognition of credit losses. Early adoption is permitted and these guidance updates require a modified retrospective method of adoption, though a prospective method of adoption is required for available-for-sale debt securities for which an other-than-temporary impairment had been recognized before the effective date. These guidance updates are effective for annual periods beginning after December 15, 2019. We plan to adopt this guidance on January 1, 2020 and we are currently in the process of evaluating the impact of these guidance updates. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with existing guidance contained within subtopic 350-40 to develop or obtain internal-use software. Early adoption is permitted and the guidance allows for a retrospective or prospective application. The guidance is effective for annual periods beginning after December 15, 2019. We plan to adopt this guidance on January 1, 2020 under the prospective application and we are currently in the process of evaluating the impact of this guidance. In July 2018, the FASB issued ASU 2018-09, Codification Improvements . ASU 2018-09 provides updates for technical corrections, clarifications, and other minor improvements to a wide variety of topics in the ASC. The transition method of adoption is dependent on the ASC topic impacted by this guidance. Additionally, some of the ASC topic updates are effective upon issuance of ASU 2018-09 and some of the ASC topic updates are effective at a future date. The ASC topic updates effective upon issuance of ASU 2018-09 do not impact our accounting for the respective ASC topics. For those ASC topic updates effective at a future date, we are currently in the process of evaluating the impact of this guidance update. Recently Adopted Accounting Pronouncements The FASB has issued four ASUs related to Accounting Standards Codification (ASC) 842. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements and ASU 2018-10, Codification Improvements to Topic 842, Leases . In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASC 842 requires an entity to recognize a ROU asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement, and presentation of expenses will depend on classification as a finance or operating lease. The amendments in this update also require certain quantitative and qualitative disclosures about leasing arrangements. We have adopted ASC 842 on January 1, 2019 and have elected the transition method of adoption that allows for a modified retrospective adoption with a cumulative-effect adjustment to the opening balance of accumulated deficit and recorded an immaterial decrease to our opening balance of accumulated deficit. As a result, we have not changed previously disclosed amounts or provided additional disclosures for comparative periods. We initially recorded ROU assets of $17.2 million and lease liabilities of $21.1 million on our condensed consolidated balance sheet. ASC 842 does not have a material impact to our condensed consolidated statements of operations. We have elected a package of transition practical expedients which include not reassessing whether any expired or existing contracts are or contain leases, not reassessing the lease classification of expired or existing leases, and not reassessing initial direct costs for existing leases. We have also elected a practical expedient to not separate lease and non-lease components. We did not elect the practical expedient to use hindsight in determining our lease terms or assessing impairment of our ROU assets. See Note 8. Leases for more information. |
Revenues
Revenues | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The majority of our revenues are recognized over time as services are performed, with certain revenues, most significantly the revenue share we earn from our print textbook partners, being recognized at the point in time when print textbooks are shipped to students. The following tables set forth our total net revenues for the periods shown disaggregated for our Chegg Services and Required Materials product lines (in thousands, except percentages): Three Months Ended September 30, Change 2019 2018 $ % Chegg Services $ 69,304 $ 54,201 $ 15,103 28 % Required Materials 24,847 20,036 4,811 24 Total net revenues $ 94,151 $ 74,237 $ 19,914 27 Nine Months Ended September 30, Change 2019 2018 $ % Chegg Services $ 224,903 $ 172,327 $ 52,576 31 % Required Materials 60,519 53,081 7,438 14 Total net revenues $ 285,422 $ 225,408 $ 60,014 27 During the three months ended September 30, 2019 , we recognized $15.7 million of revenues that were included in our deferred revenue balance as of June 30, 2019 . During the nine months ended September 30, 2019 , we recognized $16.0 million of revenues that were included in our deferred revenue balance as of December 31, 2018 . During the three and nine months ended September 30, 2019 , we recognized $2.2 million and $2.7 million , respectively, of previously deferred revenues recognized from performance obligations satisfied in previous periods related to variable consideration recognized from our agreement with our Required Materials print textbook partner. The aggregate amount of unsatisfied performance obligations is approximately $29.0 million as of September 30, 2019 , of which substantially all is expected to be recognized into revenues over the next year and the remainder within two years. Contract Balances The following table presents our accounts receivable, net and deferred revenue balances (in thousands, except percentages): Change September 30, 2019 December 31, 2018 $ % Accounts receivable, net $ 13,678 $ 12,733 $ 945 7 % Deferred revenue $ 27,457 $ 17,418 $ 10,039 58 % During the nine months ended September 30, 2019 , our accounts receivable, net balance increased by $0.9 million , or 7% , primarily due to timing of billings partially offset by an improvement in cash collections. During the nine months ended September 30, 2019 , our deferred revenue balance increased by $10.0 million , or 58% , primarily due to increased bookings for our Chegg Study service and eTextbook rentals driven by the seasonality of our business. We had no contract assets as of September 30, 2019 and an immaterial amount as of December 31, 2018 . |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including stock options, restricted stock units (RSUs), performance-based restricted stock units (PSUs), and shares related to convertible senior notes, to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential common shares outstanding would have been anti-dilutive. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net loss $ (11,477 ) $ (13,709 ) $ (17,824 ) $ (20,235 ) Denominator: Weighted average shares used to compute net loss per share, basic and diluted 120,085 114,184 118,547 112,621 Net loss per share, basic and diluted $ (0.10 ) $ (0.12 ) $ (0.15 ) $ (0.18 ) The following potential weighted-average shares of common stock outstanding were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Options to purchase common stock 2,122 3,961 2,715 4,282 RSUs and PSUs 3,831 7,479 4,952 8,075 Shares related to convertible senior notes 4,098 1,221 3,709 — Employee stock purchase plan 7 17 3 12 Total common stock equivalents 10,058 12,678 11,379 12,369 Shares related to convertible senior notes represents the anti-dilutive impact of our issuance of $345 million in aggregate principal amount of our 2023 notes as the average price of our common stock during the three and nine months ended September 30, 2019 was higher than the conversion price of $26.95 . While these shares are anti-dilutive during the three and nine months ended September 30, 2019 , they may be dilutive in periods we report net income. However, as a result of the capped call transactions, there will be no economic dilution from the 2023 notes up to $40.68 , as exercise of the capped call instruments will reduce dilution from the 2023 notes that would have otherwise occurred when the average price of our common stock exceeds the conversion price. None of the shares related to our issuance of $800 million in aggregate principal amount of our 2025 notes were anti-dilutive during the three and nine months ended September 30, 2019 . The average price of our common stock during the three and nine months ended September 30, 2019 was lower than the conversion price of our 2025 notes of $51.56 . See Note 7, Convertible Senior Notes, for more information about our convertible senior notes. |
Cash and Cash Equivalents, and
Cash and Cash Equivalents, and Investment | 9 Months Ended |
Sep. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents, and Investment | Cash and Cash Equivalents, and Investments The following tables shows our cash and cash equivalents, and investments’ adjusted cost, unrealized gain, unrealized loss and fair value as of September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 302,779 $ — $ — $ 302,779 Money market funds 140,193 — — 140,193 Commercial paper 7,496 — (11 ) 7,485 Total cash and cash equivalents $ 450,468 $ — $ (11 ) $ 450,457 Short-term investments: Commercial paper $ 48,198 $ 6 $ (1 ) $ 48,203 Corporate securities 232,803 321 (82 ) 233,042 U.S. treasury securities 39,095 44 — 39,139 Agency bonds 25,001 7 — 25,008 Total short-term investments $ 345,097 $ 378 $ (83 ) $ 345,392 Long-term investments: Corporate securities $ 309,989 $ 524 $ (366 ) $ 310,147 Agency bonds 30,000 — (29 ) 29,971 Total long-term investments $ 339,989 $ 524 $ (395 ) $ 340,118 December 31, 2018 Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 351,345 $ — $ — $ 351,345 Money market funds 5,052 — — 5,052 Commercial paper 18,267 — — 18,267 Total cash and cash equivalents $ 374,664 $ — $ — $ 374,664 Short-term investments: Commercial paper $ 40,500 $ — $ (12 ) $ 40,488 Corporate securities 38,616 — (87 ) 38,529 U.S. treasury securities 14,333 — (5 ) 14,328 Total short-term investments $ 93,449 $ — $ (104 ) $ 93,345 Long-term investments: Corporate securities $ 14,429 $ 9 $ (14 ) $ 14,424 U.S. treasury securities 1,630 — (2 ) 1,628 Total long-term investments $ 16,059 $ 9 $ (16 ) $ 16,052 The adjusted cost and fair value of available-for-sale investments as of September 30, 2019 by contractual maturity were as follows (in thousands): Adjusted Cost Fair Value Due in 1 year or less $ 352,593 $ 352,877 Due in 1-2 years 339,989 340,118 Investments not due at a single maturity date 140,193 140,193 Total $ 832,775 $ 833,188 Investments not due at a single maturity date in the preceding table consist of money market fund deposits. As of September 30, 2019 , we considered the declines in market value of our investment portfolio to be temporary in nature and did not consider any of our investments to be other-than-temporarily impaired. We typically invest in highly-rated securities with a minimum credit rating of A- and a weighted average maturity of 10 months, and our investment policy generally limits the amount of credit exposure to any one issuer or industry sector. The policy requires investments generally to be investment grade, with the primary objective of preserving capital and maintaining liquidity. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment, we review factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates and our intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s cost basis. During the three and nine months ended September 30, 2019 and 2018 , we did not recognize any other-than-impairment charges. Restricted Cash As of September 30, 2019 and December 31, 2018 , we had approximately $1.3 million of restricted cash that primarily consists of security deposits for our corporate offices. These amounts are classified in either other current assets or other assets on our condensed consolidated balance sheets based upon the term of the remaining restrictions. Strategic Investments In October 2018, we completed an investment of $10.0 million in WayUp, Inc., a U.S.-based job site and mobile application for college students and recent graduates. Additionally, we previously invested $3.0 million in a foreign entity to explore expanding our reach internationally. We did not record other-than-temporary impairment charges on our strategic investments during the three and nine months ended September 30, 2019 and 2018 , as there were no significant identified events or changes in circumstances that would be considered an indicator for impairment. There were no observable price changes in orderly transactions for the identical or similar investments of the same issuer during the three and nine months ended September 30, 2019 and 2018 . |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement We have established a fair value hierarchy used to determine the fair value of our financial instruments 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 inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. Level 3—Inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value; the inputs require significant management judgment or estimation. A financial instrument’s classification within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Financial instruments measured and recorded at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 are classified based on the valuation technique level in the tables below (in thousands): September 30, 2019 Total Quoted Prices Significant Assets: Cash equivalents: Money market funds $ 140,193 $ 140,193 $ — Commercial paper 7,485 — 7,485 Short-term investments: Commercial paper 48,203 — 48,203 Corporate securities 233,042 — 233,042 U.S. treasury securities 39,139 39,139 — Agency bonds 25,008 — 25,008 Long-term investments: Corporate securities 310,147 — 310,147 Agency bonds 29,971 — 29,971 Total assets measured and recorded at fair value $ 833,188 $ 179,332 $ 653,856 December 31, 2018 Total Quoted Prices Significant Assets: Cash equivalents: Money market funds $ 5,052 $ 5,052 $ — Commercial paper 18,267 — 18,267 Short-term investments: Commercial paper 40,488 — 40,488 Corporate securities 38,529 — 38,529 U.S. treasury securities 14,328 14,328 — Long-term investments: Corporate securities 14,424 — 14,424 U.S. treasury securities 1,628 1,628 — Total assets measured and recorded at fair value $ 132,716 $ 21,008 $ 111,708 We value our investments based on quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. Other than our money market funds and U.S. treasury securities, we classify our fixed income available-for-sale securities as having Level 2 inputs. The valuation techniques used to measure the fair value of our financial instruments having Level 2 inputs were derived from non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models such as discounted cash flow techniques. We do not hold any investments valued with a Level 3 input. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Financial Instruments Not Recorded at Fair Value on a Recurring Basis We report our financial instruments at fair value with the exception of the notes. The estimated fair value of the notes was determined based on the trading price of the notes as of the last day of trading for the period. We consider the fair value of the notes to be a Level 2 measurement due to the limited trading activity. For further information on the notes see Note 7, Convertible Senior Notes. The carrying amounts and estimated fair values of the notes as of September 30, 2019 and December 31, 2018 are as follows (in thousands): September 30, 2019 December 31, 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value 2025 notes $ 593,058 $ 735,584 $ — $ — 2023 notes 294,157 443,918 283,668 416,156 Convertible senior notes, net $ 887,215 $ 1,179,502 $ 283,668 $ 416,156 The carrying amount of the 2025 notes and 2023 notes as of September 30, 2019 was net of unamortized debt discount of $193.6 million and $45.4 million , respectively, and unamortized issuance costs of $13.3 million and $5.4 million , respectively. The carrying amount of the 2023 notes as of December 31, 2018 was net of unamortized debt discount of $54.8 million and unamortized issuance costs of $6.5 million |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill consists of the following (in thousands): Nine Months Ended September 30, 2019 Year Ended December 31, 2018 Beginning balance $ 149,524 $ 125,272 Additions due to acquisitions — 24,673 Foreign currency translation adjustment (456 ) (421 ) Ending balance $ 149,068 $ 149,524 Intangible assets as of September 30, 2019 and December 31, 2018 consist of the following (in thousands, except weighted-average amortization period): September 30, 2019 Weighted-Average Amortization Period (in months) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technologies and content library 71 $ 31,667 $ (16,757 ) $ 14,910 Customer lists 47 9,970 (7,872 ) 2,098 Trade names 44 6,113 (5,681 ) 432 Non-compete agreements 31 2,018 (1,865 ) 153 Indefinite-lived trade name — 3,600 — 3,600 Foreign currency translation adjustment — (571 ) — (571 ) Total intangible assets 61 $ 52,797 $ (32,175 ) $ 20,622 December 31, 2018 Weighted-Average Amortization Period (in months) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technologies and content library 71 $ 31,667 $ (13,737 ) $ 17,930 Customer lists 47 9,970 (6,847 ) 3,123 Trade names 44 6,113 (4,863 ) 1,250 Non-compete agreements 31 2,018 (1,735 ) 283 Indefinite-lived trade name — 3,600 — 3,600 Foreign currency translation adjustment — (271 ) — (271 ) Total intangible assets 61 $ 53,097 $ (27,182 ) $ 25,915 During the three and nine months ended September 30, 2019 , amortization expense related to our acquired intangible assets totaled approximately $1.5 million and $5.0 million , respectively. During the three and nine months ended September 30, 2018 , amortization expense related to our acquired intangible assets totaled approximately $1.8 million and $4.7 million , respectively. As of September 30, 2019 , the estimated future amortization expense related to our finite-lived intangible assets is as follows (in thousands): Remaining three months of 2019 $ 1,455 2020 4,816 2021 3,423 2022 2,943 2023 2,276 Thereafter 2,109 Total $ 17,022 |
Convertible Senior Notes
Convertible Senior Notes | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes In March 2019 , we issued $700 million in aggregate principal amount of 0.125% convertible senior notes due in 2025 (2025 notes) and in April 2019 , the initial purchasers fully exercised their option to purchase $100 million of additional notes for aggregate total principal amount of $800 million . In April 2018 , we issued $345 million in aggregate principal amount of 0.25% convertible senior notes due in 2023 (2023 notes). The aggregate principal amount of the 2023 notes includes $45 million from the initial purchasers fully exercising their option to purchase additional notes. Collectively, the 2025 notes and 2023 notes are referred to as the “notes.” The notes were issued in private placements to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended. The total net proceeds from the notes are as follows (in thousands): 2025 Notes 2023 Notes Principal amount $ 800,000 $ 345,000 Less initial purchasers’ discount (18,998 ) (8,625 ) Less other issuance costs (822 ) (757 ) Net proceeds $ 780,180 $ 335,618 The notes are our senior, unsecured obligations and are governed by indenture agreements by and between us and Wells Fargo Bank, National Association, as Trustee (the indentures). The 2025 notes bear interest of 0.125% per year which is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2019 . The 2025 notes will mature on March 15, 2025 (the 2025 notes maturity date), unless repurchased, redeemed or converted in accordance with their terms prior to such date. The 2023 notes bear interest of 0.25% per year which is payable semi-annually in arrears on May 15 and November 15 of each year, beginning on November 15, 2018 . The 2023 notes will mature on May 15, 2023 (the 2023 notes maturity date), unless repurchased, redeemed or converted in accordance with their terms prior to such date. Each $1,000 principal amount of the 2025 notes will initially be convertible into 19.3956 shares of our common stock. This is equivalent to an initial conversion price of approximately $51.56 per share, which is subject to adjustment in certain circumstances. Each $1,000 principal amount of the 2023 notes will initially be convertible into 37.1051 shares of our common stock. This is equivalent to an initial conversion price of approximately $26.95 per share, which is subject to adjustment in certain circumstances. Prior to the close of business on the business day immediately preceding December 15, 2024 for the 2025 notes and February 15, 2023 for the 2023 notes, the notes are convertible at the option of holders only upon satisfaction of the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on June 30, 2019 for the 2025 notes and June 30, 2018 for the 2023 notes, if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the respective conversion price for the notes on each applicable trading day; • during the five-business day period after any 10 consecutive trading day period (the measurement period) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; • if we call any or all of the notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or • upon the occurrence of certain specified corporate events described in the indentures. On or after December 15, 2024 for the 2025 notes and February 15, 2023 for the 2023 notes until the close of business on the second scheduled trading day immediately preceding the respective maturity dates, holders may convert their notes at any time, regardless of the foregoing circumstances. Upon conversion, the notes may be settled in shares of our common stock, cash or a combination of cash and shares of our common stock, at our election. If we undergo a fundamental change, as defined in the indentures, prior to the respective maturity dates, subject to certain conditions, holders of the notes may require us to repurchase for cash all or any portion of their notes at a repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if specific corporate events, described in the indentures, occur prior to the respective maturity dates, we will also increase the conversion rate for a holder who elects to convert their notes in connection with such specified corporate events. During the three and nine months ended September 30, 2019 , the conditions allowing holders of the 2025 notes to convert had not been met and were therefore not convertible. During the three and nine months ended September 30, 2019 , the first circumstance allowing holders of the 2023 notes to convert had been met and are therefore convertible. None of the holders of the 2023 notes elected to convert their notes into shares of our common stock during the three and nine months ended September 30, 2019 . During the three months ended September 30, 2018, the conditions allowing holders of the notes to convert had not been met and were therefore not convertible. In accounting for the issuance of the notes, we separated the notes into liability and equity components. The carrying amount of the liability components for the 2025 notes and 2023 notes of approximately $588.0 million and $280.8 million , respectively, was calculated by measuring the fair value of similar debt instruments that do not have an associated convertible feature. The carrying amount of the equity components for the 2025 notes and 2023 notes of approximately $212.0 million and $64.2 million , respectively, representing the conversion option, was determined by deducting the carrying amount of the liability components from the principal amount of the notes. This difference between the principal amount of the notes and the liability components represents the debt discount, presented as a reduction to the notes on our condensed consolidated balance sheets, and is amortized to interest expense using the effective interest method over the remaining term of the notes. The equity components of the notes are included in additional paid-in capital on our condensed consolidated balance sheets and is not remeasured as long as it continues to meet the conditions for equity classification. We incurred issuance costs related to the 2025 notes of approximately $19.8 million , consisting of the initial purchasers' discount of $19.0 million and other issuance costs of approximately $0.8 million . We incurred issuance costs related to the 2023 notes of approximately $9.4 million , consisting of the initial purchasers' discount of $8.6 million and other issuance costs of approximately $0.8 million . In accounting for the issuance costs, we allocated the total amount incurred to the liability and equity components using the same proportions determined above for the notes. Transaction costs attributable to the liability components for the 2025 notes and 2023 notes of approximately $14.6 million and $7.6 million , respectively, were recorded as debt issuance cost, presented as a reduction to the notes on our condensed consolidated balance sheets, and are amortized to interest expense using the effective interest method over the term of the notes. The issuance costs attributable to the equity components for the 2025 notes and 2023 notes were approximately $5.3 million and $1.7 million , respectively, and were recorded as a reduction to the equity component included in additional paid-in capital. The net carrying amount of the liability component of the notes is as follows (in thousands): September 30, 2019 December 31, 2018 2025 Notes 2023 Notes 2023 Notes Principal $ 800,000 $ 345,000 $ 345,000 Unamortized debt discount (193,637 ) (45,440 ) (54,817 ) Unamortized issuance costs (13,305 ) (5,403 ) (6,515 ) Net carrying amount (liability) $ 593,058 $ 294,157 $ 283,668 The net carrying amount of the equity component of the notes is as follows (in thousands): September 30, 2019 December 31, 2018 2025 Notes 2023 Notes 2023 Notes Debt discount for conversion option $ 212,000 $ 64,193 $ 64,193 Issuance costs (5,253 ) (1,749 ) (1,749 ) Net carrying amount (equity) $ 206,747 $ 62,444 $ 62,444 As of September 30, 2019 , the remaining lives of the 2025 notes and 2023 notes are approximately 5.5 and 3.6 years, respectively, and are classified as long-term debt. Based on the closing price of our common stock of $29.95 on September 30, 2019 , the if-converted value of the 2025 notes was approximately $464.7 million which is less than the principal amount of $800 million by approximately $335.3 million and the if-converted value of the 2023 notes was approximately $383.4 million which exceeds the principal amount of $345 million by approximately $38.4 million . The effective interest rates of the liability components for the 2025 notes and 2023 notes are 5.40% and 4.34% , respectively, and each is based on the interest rate of similar debt instruments, at the time of our offering, that do not have associated convertible features. The following tables set forth the total interest expense recognized related to the notes (in thousands): Three Months Ended September 30, 2019 2018 2025 Notes 2023 Notes 2023 Notes Contractual interest expense $ 252 $ 217 $ 218 Amortization of debt discount 8,939 3,161 3,160 Amortization of issuance costs 614 375 377 Total interest expense $ 9,805 $ 3,753 $ 3,755 Nine Months Ended September 30, 2019 2018 2025 Notes 2023 Notes 2023 Notes Contractual interest expense $ 517 $ 645 $ 428 Amortization of debt discount 18,363 9,377 6,217 Amortization of issuance costs 1,262 1,112 741 Total interest expense $ 20,142 $ 11,134 $ 7,386 Capped Call Transactions Concurrently with the offering of the 2025 notes and 2023 notes, we used $97.2 million and $39.2 million , respectively, of the net proceeds to enter into privately negotiated capped call transactions which are expected to generally reduce or offset potential dilution to holders of our common stock upon conversion of the notes and/or offset the potential cash payments we would be required to make in excess of the principal amount of any converted notes. The capped call transactions automatically exercise upon conversion of the notes and cover 15,516,480 and 12,801,260 shares of our common stock for the 2025 notes and 2023 notes, respectively, and are intended to effectively increase the overall conversion price from $51.56 to $79.32 per share for the 2025 notes and $26.95 to $40.68 per share for the 2023 notes. The effective increase in conversion price as a result of the capped call transactions serves to reduce potential dilution to holders of our common stock and/or offset the cash payments we are required to make in excess of the principal amount of any converted notes. As these transactions meet certain accounting criteria, they are recorded in stockholders’ equity as a reduction of additional paid-in capital on our condensed consolidated balance sheets and are not accounted for as derivatives. The fair value of the capped call instrument is not remeasured each reporting period. The cost of the capped call is not expected to be deductible for tax purposes. Impact to Earnings per Share The notes will have no impact to diluted earnings per share until the average price of our common stock exceeds the conversion price for the 2025 notes and 2023 notes of $51.56 and $26.95 per share, respectively, because we intend to settle the principal amount of the notes in cash upon conversion. Under the treasury stock method, in periods we report net income, we are required to include the effect of additional shares that may be issued under the notes when the average price of our common stock exceeds each respective conversion price. However, as a result of the capped call transactions described above, there will be no economic dilution from the 2025 notes and 2023 notes up to $79.32 and $40.68 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases We have operating leases for corporate offices worldwide, which expire at various dates through 2024 . Our primary operating lease commitments at September 30, 2019 are related to our corporate headquarters in Santa Clara, California. We have additional offices in California, Oregon, Georgia and New York in the United States and internationally in India, Israel and Germany. During the three months ended September 30, 2019 , we reassessed the lease term for two of our leases in India resulting in $2.6 million of ROU assets obtained in exchange for operating lease liabilities. As of September 30, 2019 , we had operating lease ROU assets of $16.3 million and operating lease liabilities of $20.3 million . As of September 30, 2019 , we do not have finance leases recorded on our condensed consolidated balance sheet. As of September 30, 2019 , our weighted average remaining lease term was 4.0 years . During the three and nine months ended September 30, 2019 , our weighted average discount rate was 4.7% . Operating lease expense, net of immaterial sublease income, was approximately $1.2 million and $3.7 million during the three and nine months ended September 30, 2019 , respectively. Variable lease cost was immaterial during the three and nine months ended September 30, 2019 . We did not record short term lease cost during the three and nine months ended September 30, 2019 . The aggregate future minimum lease payments and reconciliation to lease liabilities as of September 30, 2019 , are as follows (in thousands): September 30, 2019 Remaining three months of 2019 $ 1,437 2020 5,834 2021 5,362 2022 5,147 2023 3,742 Thereafter 780 Total future minimum lease payments 22,302 Less imputed interest (2,005 ) Total lease liabilities $ 20,297 The aggregate future minimum lease payments as of December 31, 2018, are as follows (in thousands): December 31, 2018 2019 $ 5,222 2020 5,251 2021 4,775 2022 3,999 2023 3,421 Thereafter 788 Total $ 23,456 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, third parties may assert patent infringement claims against us in the form of letters, litigation, or other forms of communication. In addition, we may from time to time be subject to other legal proceedings and claims in the ordinary course of business, including claims of alleged infringement of trademarks, copyrights, and other intellectual property rights; employment claims; and general contract or other claims. We may also, from time to time, be subject to various legal or government claims, disputes, or investigations. Such matters may include, but not be limited to, claims, disputes, or investigations related to warranty, refund, breach of contract, employment, intellectual property, government regulation, or compliance or other matters. On November 5, 2018, NetSoc, LLC filed a complaint in the U.S. District Court for the Southern District of New York for patent infringement against Chegg alleging that the Chegg Tutors service infringes U.S. Patent No. 9.978,107 and seeking unspecified compensatory damages. The patent was deemed invalid in a different litigation in July 2019. In August 2019, Chegg filed a motion seeking dismissal of this complaint based on the finding that the patent-in-suit is invalid. The motion is currently pending before the court. We have not recorded any amounts related to the above matter, as we do not believe that a loss is probable. We are not aware of any other pending legal matters or claims, individually or in the aggregate, that are expected to have a material adverse impact on our condensed consolidated financial position, results of operations or cash flows. However, our analysis of whether a claim may proceed to litigation cannot be predicted with certainty, nor can the results of litigation be predicted with certainty. Nevertheless, defending any of these actions, regardless of the outcome, may be costly, time consuming, distract management personnel and have a negative effect on our business. An adverse outcome in this action, including a judgment or settlement, may cause a material adverse effect on our future business, operating results and/or financial condition. |
Guarantees and Indemnifications
Guarantees and Indemnifications | 9 Months Ended |
Sep. 30, 2019 | |
Guarantees And Indemnifications [Abstract] | |
Guarantees and Indemnifications | Guarantees and Indemnifications We have agreed to indemnify our directors and officers for certain events or occurrences, subject to certain limits, while such persons are or were serving at our request in such capacity. We may terminate the indemnification agreements with these persons upon termination of employment, but termination will not affect claims for indemnification related to events occurring prior to the effective date of termination. We have a directors’ and officers’ insurance policy that limits our potential exposure up to the limits of our insurance coverage. In addition, we also have other indemnification agreements with various vendors against certain claims, liabilities, losses, and damages. The maximum amount of potential future indemnification is unlimited. We believe the fair value of these indemnification agreements is minimal. We have not recorded any liabilities for these agreements as of September 30, 2019 . |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stockholders' Equity | Stockholders' Equity In conjunction with our 2025 notes offering in March 2019, we repurchased 504,286 shares of our common stock at an average price per share of $39.66 . Share-based Compensation Expense Total share-based compensation expense recorded for employees and non-employees is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Cost of revenues $ 96 $ 106 $ 295 $ 303 Research and development 5,741 4,528 15,876 12,190 Sales and marketing 1,843 1,675 5,405 4,994 General and administrative 9,185 7,509 25,779 20,016 Total share-based compensation expense $ 16,865 $ 13,818 $ 47,355 $ 37,503 RSU and PSU Activity Activity for RSUs and PSUs is as follows: RSUs and PSUs Outstanding Shares Outstanding Weighted Average Grant Date Fair Value Balance at December 31, 2018 10,804,808 $ 11.87 Granted 1,972,614 39.56 Released (5,343,183 ) 9.94 Canceled (1,069,392 ) 10.65 Balance at September 30, 2019 6,364,847 $ 22.28 As of September 30, 2019 , our total unrecognized share-based compensation expense related to RSUs and PSUs was approximately $84.2 million , which will be recognized over the remaining weighted-average vesting period of approximately 1.6 years . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We recorded an income tax provision of approximately $0.6 million and $1.8 million during the three and nine months ended September 30, 2019 , respectively, primarily due to state and foreign income tax expense. We recorded an income tax provision of approximately $0.7 million and $1.7 million during the three and nine months ended September 30, 2018 , respectively, primarily due to foreign and state tax expense offset by federal and state tax benefits related to deferred tax liabilities of acquired intangible assets. |
Restructuring Charges
Restructuring Charges | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges 2017 Restructuring Plan In January 2017, we entered into a strategic partnership with the National Research Center for College & University Admissions (NRCCUA) where they assumed responsibility for managing, renewing, and maintaining our existing university contracts and became the exclusive reseller of our digital marketing services for colleges and universities. As a result of this strategic partnership, approximately 55 employees in China and the United States supporting the sales and account support functions of our marketing services offerings were terminated. Costs incurred to date are expected to be fully paid within five months. 2015 Restructuring Plan We recorded a reduction of $0.3 million to our 2015 Restructuring Plan liability related to our adoption of ASU 2016-02, Leases (Topic 842) during the three months ended March 31, 2019. Our 2015 Restructuring Plan is now complete. The following table summarizes the activity related to the accrual for restructuring charges (in thousands): 2017 Restructuring Plan 2015 Restructuring Plan Workforce Reduction Costs Lease Termination and Other Costs Lease Termination and Other Costs Total Balance at January 1, 2018 $ 44 $ — $ 221 $ 265 Restructuring charges 253 19 317 589 Cash payments (151 ) (19 ) (218 ) (388 ) Write-offs — — (18 ) (18 ) Balance at December 31, 2018 146 — 302 448 Cumulative-effect adjustment to accumulated deficit related to adoption of ASU 2016-02 — — (302 ) (302 ) Restructuring charges 97 — — 97 Cash payments (200 ) — — (200 ) Balance at September 30, 2019 $ 43 $ — $ — $ 43 |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions Our Chief Executive Officer is a member of the Board of Directors of Adobe Systems Incorporated (Adobe). During the three and nine months ended September 30, 2019 , we had purchases of $0.4 million and $1.9 million , respectively, and during the three and nine months ended September 30, 2018 , we had purchases of $0.6 million and $2.8 million , respectively, from Adobe. We had no revenues during the three and nine months ended September 30, 2019 from Adobe. We had no revenues during the three months ended September 30, 2018 and $0.1 million of revenues during the nine months ended September 30, 2018 from Adobe. We had an immaterial amount of payables as of September 30, 2019 and December 31, 2018 to Adobe. We had no outstanding receivables as of September 30, 2019 and December 31, 2018 from Adobe. One of our board members is also a member of the Board of Directors of Cengage Learning, Inc. (Cengage). During the three and nine months ended September 30, 2019 , we had purchases of $4.2 million and $14.8 million , respectively, and during the three and nine months ended September 30, 2018 , we had purchases of $3.8 million and $10.3 million , respectively, from Cengage. We had $1.3 million and $2.9 million of revenues during the three and nine months ended September 30, 2019 , respectively, and $1.2 million and $3.2 million of revenues during the three and nine months ended September 30, 2018 , respectively, from Cengage. We had an immaterial amount and $0.1 million in payables as of September 30, 2019 and December 31, 2018 , respectively, to Cengage. We had an immaterial amount of outstanding receivables as of September 30, 2019 and December 31, 2018 from Cengage. The immediate family of one of our board members is also a member of the Board of Directors of PayPal Holdings, Inc. (PayPal). During the three and nine months ended September 30, 2019 , we incurred payment processing fees of $0.4 million and $1.2 million , respectively, and during the three and nine months ended September 30, 2018 , we incurred processing fees of $0.4 million and $1.0 million , respectively, to PayPal. One of our board members is also a member of the Board of Directors of Synack, Inc. (Synack). During the three and nine months ended September 30, 2019 , we had purchases of $0.1 million and $0.4 million , respectively, for services from Synack. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Acquisition of Thinkful, Inc. On October 1, 2019, we completed our acquisition of Thinkful, Inc. (Thinkful), a privately held online learning platform that offers professional courses directly to students across America. We acquired Thinkful for approximately $80.0 million in an all-cash transaction. There are potential additional payments of up to $20.0 million , which may be paid in cash or restricted stock units, at Chegg’s sole discretion, subject to performance-based contingencies. The initial accounting for this acquisition is in process as of the issuance date for our financial statements and therefore we are unable to make any additional disclosures. FedEx Supply Chain, Inc. (FedEx) Strategic Logistics Agreement On October 7, 2019, we signed a strategic logistics agreement with FedEx to provide logistics and warehousing services. The agreement begins on December 1, 2019 and continues through March 31, 2025 and the total fixed commitments are approximately $15.4 million . |
Background and Basis of Prese_2
Background and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated balance sheet as of September 30, 2019 , the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive loss, and the condensed consolidated statements of stockholder's equity for the three and nine months ended September 30, 2019 and 2018 , the condensed consolidated statements of cash flows for the nine months ended September 30, 2019 and 2018 and the related footnote disclosures are unaudited. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position as of September 30, 2019 , our results of operations, results of comprehensive loss, and stockholder's equity for the three and nine months ended September 30, 2019 and 2018 and cash flows for the nine months ended September 30, 2019 and 2018 . Our results of operations, stockholder's equity, and cash flows for the nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the full year. We operate in a single segment. Our fiscal year ends on December 31 and in this report we refer to the year ended December 31, 2018 as 2018 . The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2018 (the Annual Report on Form 10-K) filed with the U.S. Securities and Exchange Commission (SEC). We have changed the captions on our condensed consolidated statements of cash flows from “purchases of marketable securities” to “purchases of investments” and from “maturities of marketable securities” to “maturities of investments.” This change does not impact any current or previously reported results. Except for our policies on leases and convertible senior notes, there have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Annual Report on Form 10-K. |
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right of use (ROU) assets, operating lease liabilities within current liabilities, and operating lease liabilities within long-term liabilities on our condensed consolidated balance sheet. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. Our leases do not provide an implicit rate and therefore we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future minimum lease payments. Our incremental borrowing rate is estimated based on the estimated rate incurred to borrow, on a collateralized basis over a similar term as our leases, an amount equal to the lease payments in a similar economic environment. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise such options. We do not record leases on our condensed consolidated balance sheet with a term of one year or less. We do not separate lease and non-lease components but rather account for each separate component as a single lease component for all underlying classes of assets. Some of our leases include payments that are dependent on an index, such as the Consumer Price Index (CPI), and our minimum lease payments include payments based on the index at inception with any future changes in such indices recognized as an expense in the period of change. Where leases contain escalation clauses, rent abatements, or concessions, such as rent holidays and landlord or tenant incentives or allowances, we apply them in the determination of straight-line operating lease cost over the lease term. |
Convertible Senior Notes, net | Convertible Senior Notes, net In March 2019 , we issued $700 million in aggregate principal amount of 0.125% convertible senior notes due in 2025 (2025 notes) and in April 2019 , the initial purchasers fully exercised their option to purchase $100 million of additional 2025 notes for aggregate total gross proceeds of $800 million . In April 2018 , we issued $345 million in aggregate principal amount of 0.25% convertible senior notes due in 2023 (2023 notes). Collectively, the 2025 notes and the 2023 notes are referred to as the “notes.” In accounting for their issuance, we separated the notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of similar liabilities that do not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the carrying amount of the liability component from the par value of the notes. The difference represents the debt discount, recorded as a reduction of the convertible senior notes on our condensed consolidated balance sheets, and is amortized to interest expense over the term of the notes using the effective interest rate method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the issuance costs related to the notes, we allocated the total amount of issuance costs incurred to liability and equity components based on their relative values. Issuance costs attributable to the liability component are being amortized on a straight-line basis, which approximates the effective interest rate method, to interest expense over the term of the notes. The issuance costs attributable to the equity component are recorded as a reduction of the equity component within additional paid-in capital. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States (U.S. GAAP) requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities; the disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, assumptions, and judgments are used for, but not limited to: revenue recognition, recoverability of accounts receivable, restructuring charges, share-based compensation expense including estimated forfeitures, accounting for income taxes, useful lives assigned to long-lived assets for depreciation and amortization, impairment of goodwill and long-lived assets, the valuation of acquired intangible assets, the valuation of our convertible senior notes, and operating lease ROU assets and operating lease liabilities. We base our estimates on historical experience, knowledge of current business conditions, and various other factors we believe to be reasonable under the circumstances. These estimates are based on management’s knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ from these estimates, and such differences could be material to our financial position and results of operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Pronouncements Not Yet Adopted In May 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. ASU 2019-05 provides entities with an option to irrevocably elect the fair value option for eligible instruments. In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. ASU 2019-04 provides codification updates to ASU 2016-01 and ASU 2016-13. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . ASU 2016-13 replaces the existing incurred loss impairment model for trade receivables with an expected loss model which requires the use of forward-looking information to calculate expected credit loss estimates. Additionally, the concept of other-than-temporary impairment for available-for-sale investments is eliminated and instead ASU 2016-13 requires an entity to focus on determining whether any impairment is a result of a credit loss or other factors. It also requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction to the amortized cost basis. These changes may result in earlier recognition of credit losses. Early adoption is permitted and these guidance updates require a modified retrospective method of adoption, though a prospective method of adoption is required for available-for-sale debt securities for which an other-than-temporary impairment had been recognized before the effective date. These guidance updates are effective for annual periods beginning after December 15, 2019. We plan to adopt this guidance on January 1, 2020 and we are currently in the process of evaluating the impact of these guidance updates. In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with existing guidance contained within subtopic 350-40 to develop or obtain internal-use software. Early adoption is permitted and the guidance allows for a retrospective or prospective application. The guidance is effective for annual periods beginning after December 15, 2019. We plan to adopt this guidance on January 1, 2020 under the prospective application and we are currently in the process of evaluating the impact of this guidance. In July 2018, the FASB issued ASU 2018-09, Codification Improvements . ASU 2018-09 provides updates for technical corrections, clarifications, and other minor improvements to a wide variety of topics in the ASC. The transition method of adoption is dependent on the ASC topic impacted by this guidance. Additionally, some of the ASC topic updates are effective upon issuance of ASU 2018-09 and some of the ASC topic updates are effective at a future date. The ASC topic updates effective upon issuance of ASU 2018-09 do not impact our accounting for the respective ASC topics. For those ASC topic updates effective at a future date, we are currently in the process of evaluating the impact of this guidance update. Recently Adopted Accounting Pronouncements The FASB has issued four ASUs related to Accounting Standards Codification (ASC) 842. In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements and ASU 2018-10, Codification Improvements to Topic 842, Leases . In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) . ASC 842 requires an entity to recognize a ROU asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement, and presentation of expenses will depend on classification as a finance or operating lease. The amendments in this update also require certain quantitative and qualitative disclosures about leasing arrangements. We have adopted ASC 842 on January 1, 2019 and have elected the transition method of adoption that allows for a modified retrospective adoption with a cumulative-effect adjustment to the opening balance of accumulated deficit and recorded an immaterial decrease to our opening balance of accumulated deficit. As a result, we have not changed previously disclosed amounts or provided additional disclosures for comparative periods. We initially recorded ROU assets of $17.2 million and lease liabilities of $21.1 million on our condensed consolidated balance sheet. ASC 842 does not have a material impact to our condensed consolidated statements of operations. We have elected a package of transition practical expedients which include not reassessing whether any expired or existing contracts are or contain leases, not reassessing the lease classification of expired or existing leases, and not reassessing initial direct costs for existing leases. We have also elected a practical expedient to not separate lease and non-lease components. We did not elect the practical expedient to use hindsight in determining our lease terms or assessing impairment of our ROU assets. See Note 8. Leases for more information. |
Revenue Recognition | Revenue Recognition Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The majority of our revenues are recognized over time as services are performed, with certain revenues, most significantly the revenue share we earn from our print textbook partners, being recognized at the point in time when print textbooks are shipped to students. |
Net Loss Per Share | Net Loss Per Share Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including stock options, restricted stock units (RSUs), performance-based restricted stock units (PSUs), and shares related to convertible senior notes, to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential common shares outstanding would have been anti-dilutive. |
Revenues (Tables)
Revenues (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables set forth our total net revenues for the periods shown disaggregated for our Chegg Services and Required Materials product lines (in thousands, except percentages): Three Months Ended September 30, Change 2019 2018 $ % Chegg Services $ 69,304 $ 54,201 $ 15,103 28 % Required Materials 24,847 20,036 4,811 24 Total net revenues $ 94,151 $ 74,237 $ 19,914 27 Nine Months Ended September 30, Change 2019 2018 $ % Chegg Services $ 224,903 $ 172,327 $ 52,576 31 % Required Materials 60,519 53,081 7,438 14 Total net revenues $ 285,422 $ 225,408 $ 60,014 27 |
Schedule of Accounts Receivable | The following table presents our accounts receivable, net and deferred revenue balances (in thousands, except percentages): Change September 30, 2019 December 31, 2018 $ % Accounts receivable, net $ 13,678 $ 12,733 $ 945 7 % Deferred revenue $ 27,457 $ 17,418 $ 10,039 58 % |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net loss $ (11,477 ) $ (13,709 ) $ (17,824 ) $ (20,235 ) Denominator: Weighted average shares used to compute net loss per share, basic and diluted 120,085 114,184 118,547 112,621 Net loss per share, basic and diluted $ (0.10 ) $ (0.12 ) $ (0.15 ) $ (0.18 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following potential weighted-average shares of common stock outstanding were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Options to purchase common stock 2,122 3,961 2,715 4,282 RSUs and PSUs 3,831 7,479 4,952 8,075 Shares related to convertible senior notes 4,098 1,221 3,709 — Employee stock purchase plan 7 17 3 12 Total common stock equivalents 10,058 12,678 11,379 12,369 |
Cash and Cash Equivalents, an_2
Cash and Cash Equivalents, and Investment (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents and Investments | The following tables shows our cash and cash equivalents, and investments’ adjusted cost, unrealized gain, unrealized loss and fair value as of September 30, 2019 and December 31, 2018 (in thousands): September 30, 2019 Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 302,779 $ — $ — $ 302,779 Money market funds 140,193 — — 140,193 Commercial paper 7,496 — (11 ) 7,485 Total cash and cash equivalents $ 450,468 $ — $ (11 ) $ 450,457 Short-term investments: Commercial paper $ 48,198 $ 6 $ (1 ) $ 48,203 Corporate securities 232,803 321 (82 ) 233,042 U.S. treasury securities 39,095 44 — 39,139 Agency bonds 25,001 7 — 25,008 Total short-term investments $ 345,097 $ 378 $ (83 ) $ 345,392 Long-term investments: Corporate securities $ 309,989 $ 524 $ (366 ) $ 310,147 Agency bonds 30,000 — (29 ) 29,971 Total long-term investments $ 339,989 $ 524 $ (395 ) $ 340,118 December 31, 2018 Adjusted Cost Unrealized Gain Unrealized Loss Fair Value Cash and cash equivalents: Cash $ 351,345 $ — $ — $ 351,345 Money market funds 5,052 — — 5,052 Commercial paper 18,267 — — 18,267 Total cash and cash equivalents $ 374,664 $ — $ — $ 374,664 Short-term investments: Commercial paper $ 40,500 $ — $ (12 ) $ 40,488 Corporate securities 38,616 — (87 ) 38,529 U.S. treasury securities 14,333 — (5 ) 14,328 Total short-term investments $ 93,449 $ — $ (104 ) $ 93,345 Long-term investments: Corporate securities $ 14,429 $ 9 $ (14 ) $ 14,424 U.S. treasury securities 1,630 — (2 ) 1,628 Total long-term investments $ 16,059 $ 9 $ (16 ) $ 16,052 |
Schedule of Available-for-sale Securities Reconciliation | The adjusted cost and fair value of available-for-sale investments as of September 30, 2019 by contractual maturity were as follows (in thousands): Adjusted Cost Fair Value Due in 1 year or less $ 352,593 $ 352,877 Due in 1-2 years 339,989 340,118 Investments not due at a single maturity date 140,193 140,193 Total $ 832,775 $ 833,188 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Financial instruments measured and recorded at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 are classified based on the valuation technique level in the tables below (in thousands): September 30, 2019 Total Quoted Prices Significant Assets: Cash equivalents: Money market funds $ 140,193 $ 140,193 $ — Commercial paper 7,485 — 7,485 Short-term investments: Commercial paper 48,203 — 48,203 Corporate securities 233,042 — 233,042 U.S. treasury securities 39,139 39,139 — Agency bonds 25,008 — 25,008 Long-term investments: Corporate securities 310,147 — 310,147 Agency bonds 29,971 — 29,971 Total assets measured and recorded at fair value $ 833,188 $ 179,332 $ 653,856 December 31, 2018 Total Quoted Prices Significant Assets: Cash equivalents: Money market funds $ 5,052 $ 5,052 $ — Commercial paper 18,267 — 18,267 Short-term investments: Commercial paper 40,488 — 40,488 Corporate securities 38,529 — 38,529 U.S. treasury securities 14,328 14,328 — Long-term investments: Corporate securities 14,424 — 14,424 U.S. treasury securities 1,628 1,628 — Total assets measured and recorded at fair value $ 132,716 $ 21,008 $ 111,708 |
Fair Value Measurements, Nonrecurring | The carrying amounts and estimated fair values of the notes as of September 30, 2019 and December 31, 2018 are as follows (in thousands): September 30, 2019 December 31, 2018 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value 2025 notes $ 593,058 $ 735,584 $ — $ — 2023 notes 294,157 443,918 283,668 416,156 Convertible senior notes, net $ 887,215 $ 1,179,502 $ 283,668 $ 416,156 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Goodwill consists of the following (in thousands): Nine Months Ended September 30, 2019 Year Ended December 31, 2018 Beginning balance $ 149,524 $ 125,272 Additions due to acquisitions — 24,673 Foreign currency translation adjustment (456 ) (421 ) Ending balance $ 149,068 $ 149,524 |
Finite-Lived Intangible Assets | Intangible assets as of September 30, 2019 and December 31, 2018 consist of the following (in thousands, except weighted-average amortization period): September 30, 2019 Weighted-Average Amortization Period (in months) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technologies and content library 71 $ 31,667 $ (16,757 ) $ 14,910 Customer lists 47 9,970 (7,872 ) 2,098 Trade names 44 6,113 (5,681 ) 432 Non-compete agreements 31 2,018 (1,865 ) 153 Indefinite-lived trade name — 3,600 — 3,600 Foreign currency translation adjustment — (571 ) — (571 ) Total intangible assets 61 $ 52,797 $ (32,175 ) $ 20,622 December 31, 2018 Weighted-Average Amortization Period (in months) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technologies and content library 71 $ 31,667 $ (13,737 ) $ 17,930 Customer lists 47 9,970 (6,847 ) 3,123 Trade names 44 6,113 (4,863 ) 1,250 Non-compete agreements 31 2,018 (1,735 ) 283 Indefinite-lived trade name — 3,600 — 3,600 Foreign currency translation adjustment — (271 ) — (271 ) Total intangible assets 61 $ 53,097 $ (27,182 ) $ 25,915 |
Indefinite-lived Intangible Assets | Intangible assets as of September 30, 2019 and December 31, 2018 consist of the following (in thousands, except weighted-average amortization period): September 30, 2019 Weighted-Average Amortization Period (in months) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technologies and content library 71 $ 31,667 $ (16,757 ) $ 14,910 Customer lists 47 9,970 (7,872 ) 2,098 Trade names 44 6,113 (5,681 ) 432 Non-compete agreements 31 2,018 (1,865 ) 153 Indefinite-lived trade name — 3,600 — 3,600 Foreign currency translation adjustment — (571 ) — (571 ) Total intangible assets 61 $ 52,797 $ (32,175 ) $ 20,622 December 31, 2018 Weighted-Average Amortization Period (in months) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Developed technologies and content library 71 $ 31,667 $ (13,737 ) $ 17,930 Customer lists 47 9,970 (6,847 ) 3,123 Trade names 44 6,113 (4,863 ) 1,250 Non-compete agreements 31 2,018 (1,735 ) 283 Indefinite-lived trade name — 3,600 — 3,600 Foreign currency translation adjustment — (271 ) — (271 ) Total intangible assets 61 $ 53,097 $ (27,182 ) $ 25,915 |
Estimated Future Amortization Expense Related to Intangible Assets | As of September 30, 2019 , the estimated future amortization expense related to our finite-lived intangible assets is as follows (in thousands): Remaining three months of 2019 $ 1,455 2020 4,816 2021 3,423 2022 2,943 2023 2,276 Thereafter 2,109 Total $ 17,022 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule Of Net Proceeds From Debt Issuance | The total net proceeds from the notes are as follows (in thousands): 2025 Notes 2023 Notes Principal amount $ 800,000 $ 345,000 Less initial purchasers’ discount (18,998 ) (8,625 ) Less other issuance costs (822 ) (757 ) Net proceeds $ 780,180 $ 335,618 |
Schedule of Debt | The net carrying amount of the liability component of the notes is as follows (in thousands): September 30, 2019 December 31, 2018 2025 Notes 2023 Notes 2023 Notes Principal $ 800,000 $ 345,000 $ 345,000 Unamortized debt discount (193,637 ) (45,440 ) (54,817 ) Unamortized issuance costs (13,305 ) (5,403 ) (6,515 ) Net carrying amount (liability) $ 593,058 $ 294,157 $ 283,668 The net carrying amount of the equity component of the notes is as follows (in thousands): September 30, 2019 December 31, 2018 2025 Notes 2023 Notes 2023 Notes Debt discount for conversion option $ 212,000 $ 64,193 $ 64,193 Issuance costs (5,253 ) (1,749 ) (1,749 ) Net carrying amount (equity) $ 206,747 $ 62,444 $ 62,444 |
Schedule Of Interest Expense Recognized | The following tables set forth the total interest expense recognized related to the notes (in thousands): Three Months Ended September 30, 2019 2018 2025 Notes 2023 Notes 2023 Notes Contractual interest expense $ 252 $ 217 $ 218 Amortization of debt discount 8,939 3,161 3,160 Amortization of issuance costs 614 375 377 Total interest expense $ 9,805 $ 3,753 $ 3,755 Nine Months Ended September 30, 2019 2018 2025 Notes 2023 Notes 2023 Notes Contractual interest expense $ 517 $ 645 $ 428 Amortization of debt discount 18,363 9,377 6,217 Amortization of issuance costs 1,262 1,112 741 Total interest expense $ 20,142 $ 11,134 $ 7,386 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | The aggregate future minimum lease payments and reconciliation to lease liabilities as of September 30, 2019 , are as follows (in thousands): September 30, 2019 Remaining three months of 2019 $ 1,437 2020 5,834 2021 5,362 2022 5,147 2023 3,742 Thereafter 780 Total future minimum lease payments 22,302 Less imputed interest (2,005 ) Total lease liabilities $ 20,297 |
Schedule of Property Subject to or Available for Operating Lease | The aggregate future minimum lease payments as of December 31, 2018, are as follows (in thousands): December 31, 2018 2019 $ 5,222 2020 5,251 2021 4,775 2022 3,999 2023 3,421 Thereafter 788 Total $ 23,456 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense for Employees and Non-Employees | Total share-based compensation expense recorded for employees and non-employees is as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Cost of revenues $ 96 $ 106 $ 295 $ 303 Research and development 5,741 4,528 15,876 12,190 Sales and marketing 1,843 1,675 5,405 4,994 General and administrative 9,185 7,509 25,779 20,016 Total share-based compensation expense $ 16,865 $ 13,818 $ 47,355 $ 37,503 |
Summary of Restricted Stock Unit Activity | Activity for RSUs and PSUs is as follows: RSUs and PSUs Outstanding Shares Outstanding Weighted Average Grant Date Fair Value Balance at December 31, 2018 10,804,808 $ 11.87 Granted 1,972,614 39.56 Released (5,343,183 ) 9.94 Canceled (1,069,392 ) 10.65 Balance at September 30, 2019 6,364,847 $ 22.28 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the activity related to the accrual for restructuring charges (in thousands): 2017 Restructuring Plan 2015 Restructuring Plan Workforce Reduction Costs Lease Termination and Other Costs Lease Termination and Other Costs Total Balance at January 1, 2018 $ 44 $ — $ 221 $ 265 Restructuring charges 253 19 317 589 Cash payments (151 ) (19 ) (218 ) (388 ) Write-offs — — (18 ) (18 ) Balance at December 31, 2018 146 — 302 448 Cumulative-effect adjustment to accumulated deficit related to adoption of ASU 2016-02 — — (302 ) (302 ) Restructuring charges 97 — — 97 Cash payments (200 ) — — (200 ) Balance at September 30, 2019 $ 43 $ — $ — $ 43 |
Background and Basis of Prese_3
Background and Basis of Presentation (Details) - USD ($) | 1 Months Ended | |||||
Apr. 30, 2019 | Apr. 30, 2018 | Sep. 30, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Right of use assets | $ 16,312,000 | $ 0 | ||||
Operating lease liability | 20,297,000 | |||||
Senior Notes | 0.125% Convertible Senior Notes Due 2025 | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Face value | $ 100,000,000 | 800,000,000 | $ 700,000,000 | |||
Interest rate, stated percentage | 0.125% | |||||
Proceeds from issuance of debt | $ 800,000,000 | |||||
Senior Notes | 0.25% Convertible Senior Notes Due 2023 | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Face value | $ 345,000,000 | $ 345,000,000 | $ 345,000,000 | |||
Interest rate, stated percentage | 0.25% | |||||
Proceeds from issuance of debt | $ 345,000,000 | |||||
Accounting Standards Update 2016-02 | ||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||
Right of use assets | $ 17,200,000 | |||||
Operating lease liability | $ 21,100,000 |
Revenues (Details)
Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||
Total net revenues | $ 94,151 | $ 74,237 | $ 285,422 | $ 225,408 | |
Change in total net revenues | $ 19,914 | $ 60,014 | |||
Change in total net revenues, percent | 27.00% | 27.00% | |||
Contract with customer, liability, revenue recognized | $ 15,700 | $ 16,000 | |||
Contract with customer, liability, revenue recognized, prior period | 2,200 | 2,700 | |||
Aggregate amount of unsatisfied performance obligations | 29,000 | 29,000 | |||
Accounts receivable, net | 13,678 | 13,678 | $ 12,733 | ||
Change in accounts receivable | $ 945 | ||||
Change in accounts receivable, percent | 7.00% | ||||
Deferred Revenue, Period Increase (Decrease) | $ 10,000 | ||||
Deferred revenue | 27,457 | 27,457 | $ 17,418 | ||
Change in deferred revenue | $ 10,039 | ||||
Change in deferred revenue, percent | 58.00% | ||||
Chegg Services | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenues | 69,304 | 54,201 | $ 224,903 | 172,327 | |
Change in total net revenues | $ 15,103 | $ 52,576 | |||
Change in total net revenues, percent | 28.00% | 31.00% | |||
Required Materials | |||||
Disaggregation of Revenue [Line Items] | |||||
Total net revenues | $ 24,847 | $ 20,036 | $ 60,519 | $ 53,081 | |
Change in total net revenues | $ 4,811 | $ 7,438 | |||
Change in total net revenues, percent | 24.00% | 14.00% |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator: | ||||
Net loss | $ (11,477) | $ (13,709) | $ (17,824) | $ (20,235) |
Denominator: | ||||
Weighted average shares used to compute net loss per share, basic and diluted (in shares) | 120,085 | 114,184 | 118,547 | 112,621 |
Net loss per share, basic and diluted (in dollars per share) | $ (0.10) | $ (0.12) | $ (0.15) | $ (0.18) |
Net Loss Per Share - Shares Exc
Net Loss Per Share - Shares Excluded From Computation Of Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Apr. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Total common stock equivalents (in shares) | 10,058 | 12,678 | 11,379 | 12,369 | ||||
Options to purchase common stock | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Total common stock equivalents (in shares) | 2,122 | 3,961 | 2,715 | 4,282 | ||||
RSUs and PSUs | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Total common stock equivalents (in shares) | 3,831 | 7,479 | 4,952 | 8,075 | ||||
Shares related to convertible senior notes | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Total common stock equivalents (in shares) | 4,098 | 1,221 | 3,709 | 0 | ||||
Employee stock purchase plan | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Total common stock equivalents (in shares) | 7 | 17 | 3 | 12 | ||||
0.25% Convertible Senior Notes Due 2023 | Shares related to convertible senior notes | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Face value | $ 345,000,000 | $ 345,000,000 | $ 345,000,000 | $ 345,000,000 | ||||
Conversion price | $ 26.95 | |||||||
Interest rate, stated percentage | 0.25% | |||||||
0.125% Convertible Senior Notes Due 2025 | Shares related to convertible senior notes | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Face value | $ 800,000,000 | $ 800,000,000 | $ 100,000,000 | $ 700,000,000 | ||||
Conversion price | $ 51.56 | $ 51.56 | ||||||
Interest rate, stated percentage | 0.125% | |||||||
Capped Call | 0.25% Convertible Senior Notes Due 2023 | Shares related to convertible senior notes | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Conversion price | 40.68 | 40.68 | ||||||
Capped Call | 0.125% Convertible Senior Notes Due 2025 | Shares related to convertible senior notes | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||
Conversion price | $ 79.32 | $ 79.32 |
Cash and Cash Equivalents, an_3
Cash and Cash Equivalents, and Investment - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | Oct. 31, 2018 | |
Schedule of Investments [Line Items] | |||
Weighted average maturity | 10 months | ||
Restricted cash | $ 1.3 | $ 1.3 | |
Cost method investment | $ 10 | ||
Other Assets | Equity Investments | |||
Schedule of Investments [Line Items] | |||
Investments | $ 3 |
Cash and Cash Equivalents, an_4
Cash and Cash Equivalents, and Investment - Schedule of Available For Sale Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | $ 832,775 | |
Fair Value | 833,188 | |
Cash and cash equivalents: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 450,468 | $ 374,664 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (11) | 0 |
Fair Value | 450,457 | 374,664 |
Short-term investments: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 345,097 | 93,449 |
Unrealized Gain | 378 | 0 |
Unrealized Loss | (83) | (104) |
Fair Value | 345,392 | 93,345 |
Long-term investments: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 339,989 | 16,059 |
Unrealized Gain | 524 | 9 |
Unrealized Loss | (395) | (16) |
Fair Value | 340,118 | 16,052 |
Cash | Cash and cash equivalents: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 302,779 | 351,345 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 302,779 | 351,345 |
Money market funds | Cash and cash equivalents: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 140,193 | 5,052 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | 0 | 0 |
Fair Value | 140,193 | 5,052 |
Commercial paper | Cash and cash equivalents: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 7,496 | 18,267 |
Unrealized Gain | 0 | 0 |
Unrealized Loss | (11) | 0 |
Fair Value | 7,485 | 18,267 |
Commercial paper | Short-term investments: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 48,198 | 40,500 |
Unrealized Gain | 6 | 0 |
Unrealized Loss | (1) | (12) |
Fair Value | 48,203 | 40,488 |
Corporate securities | Short-term investments: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 232,803 | 38,616 |
Unrealized Gain | 321 | 0 |
Unrealized Loss | (82) | (87) |
Fair Value | 233,042 | 38,529 |
Corporate securities | Long-term investments: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 309,989 | 14,429 |
Unrealized Gain | 524 | 9 |
Unrealized Loss | (366) | (14) |
Fair Value | 310,147 | 14,424 |
U.S. treasury securities | Short-term investments: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 39,095 | 14,333 |
Unrealized Gain | 44 | 0 |
Unrealized Loss | 0 | (5) |
Fair Value | 39,139 | 14,328 |
U.S. treasury securities | Long-term investments: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 1,630 | |
Unrealized Gain | 0 | |
Unrealized Loss | (2) | |
Fair Value | $ 1,628 | |
Agency bonds | Short-term investments: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 25,001 | |
Unrealized Gain | 7 | |
Unrealized Loss | 0 | |
Fair Value | 25,008 | |
Agency bonds | Long-term investments: | ||
Debt Securities, Available-for-sale [Line Items] | ||
Adjusted Cost | 30,000 | |
Unrealized Gain | 0 | |
Unrealized Loss | (29) | |
Fair Value | $ 29,971 |
Cash and Cash Equivalents, an_5
Cash and Cash Equivalents, and Investment - Contractual Maturity (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Cash and Cash Equivalents [Abstract] | |
Due in 1 year or less, Cost | $ 352,593 |
Due in 1-2 years, Cost | 339,989 |
Investments not due at a single maturity date, Cost | 140,193 |
Adjusted Cost | 832,775 |
Due in 1 year or less, Fair Value | 352,877 |
Due in 1-2 years, Fair Value | 340,118 |
Investments not due at a single maturity date, Fair Value | 140,193 |
Total, Fair Value | $ 833,188 |
Weighted average maturity | 10 months |
Fair Value Measurement - Financ
Fair Value Measurement - Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | $ 345,392 | $ 93,345 |
Long-term investments | 340,118 | 16,052 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured and recorded at fair value | 833,188 | 132,716 |
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured and recorded at fair value | 179,332 | 21,008 |
Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured and recorded at fair value | 653,856 | 111,708 |
Commercial paper | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 48,203 | 40,488 |
Commercial paper | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Commercial paper | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 48,203 | 40,488 |
Corporate securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 233,042 | 38,529 |
Long-term investments | 310,147 | 14,424 |
Corporate securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | 0 |
Corporate securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 233,042 | 38,529 |
Long-term investments | 310,147 | 14,424 |
U.S. treasury securities | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 39,139 | 14,328 |
Long-term investments | 1,628 | |
U.S. treasury securities | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 39,139 | 14,328 |
Long-term investments | 1,628 | |
U.S. treasury securities | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | 0 |
Long-term investments | 0 | |
Agency bonds | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 25,008 | |
Long-term investments | 29,971 | |
Agency bonds | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 0 | |
Long-term investments | 0 | |
Agency bonds | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term investments | 25,008 | |
Long-term investments | 29,971 | |
Money market funds | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 140,193 | 5,052 |
Money market funds | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 140,193 | 5,052 |
Money market funds | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Commercial paper | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 7,485 | 18,267 |
Commercial paper | Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Commercial paper | Fair Value, Measurements, Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 7,485 | $ 18,267 |
Fair Value Measurement - Debt (
Fair Value Measurement - Debt (Details) - Senior Notes - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Carrying Amount | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible senior notes | $ 887,215 | $ 283,668 |
Estimated Fair Value | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible senior notes | 1,179,502 | 416,156 |
0.125% Convertible Senior Notes Due 2025 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unamortized debt discount | 193,637 | |
Unamortized issuance costs | 13,305 | |
0.125% Convertible Senior Notes Due 2025 | Carrying Amount | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible senior notes | 593,058 | 0 |
0.125% Convertible Senior Notes Due 2025 | Estimated Fair Value | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible senior notes | 735,584 | 0 |
0.25% Convertible Senior Notes Due 2023 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unamortized debt discount | 45,440 | 54,817 |
Unamortized issuance costs | 5,403 | 6,515 |
0.25% Convertible Senior Notes Due 2023 | Carrying Amount | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible senior notes | 294,157 | 283,668 |
0.25% Convertible Senior Notes Due 2023 | Estimated Fair Value | Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible senior notes | $ 443,918 | $ 416,156 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 149,524 | $ 125,272 |
Additions due to acquisitions | 0 | 24,673 |
Foreign currency translation adjustment | (456) | (421) |
Ending balance | $ 149,068 | $ 149,524 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Finite-lived and Indefinite-lived Intangibe Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period (in months) | 61 months | 61 months |
Accumulated Amortization | $ (32,175) | $ (27,182) |
Net Carrying Amount | 17,022 | |
Indefinite-lived trade name | 3,600 | 3,600 |
Foreign currency translation adjustment | (571) | (271) |
Total intangible assets, gross carrying amount | 52,797 | 53,097 |
Intangible assets, net | $ 20,622 | $ 25,915 |
Developed technologies and content library | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period (in months) | 71 months | 71 months |
Gross Carrying Amount | $ 31,667 | $ 31,667 |
Accumulated Amortization | (16,757) | (13,737) |
Net Carrying Amount | $ 14,910 | $ 17,930 |
Customer lists | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period (in months) | 47 months | 47 months |
Gross Carrying Amount | $ 9,970 | $ 9,970 |
Accumulated Amortization | (7,872) | (6,847) |
Net Carrying Amount | $ 2,098 | $ 3,123 |
Trade names | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period (in months) | 44 months | 44 months |
Gross Carrying Amount | $ 6,113 | $ 6,113 |
Accumulated Amortization | (5,681) | (4,863) |
Net Carrying Amount | $ 432 | $ 1,250 |
Non-compete agreements | ||
Finite Lived Intangible Assets [Line Items] | ||
Weighted-Average Amortization Period (in months) | 31 months | 31 months |
Gross Carrying Amount | $ 2,018 | $ 2,018 |
Accumulated Amortization | (1,865) | (1,735) |
Net Carrying Amount | $ 153 | $ 283 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Acquisition-Related Intangible Assets | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization expense of acquisition related to acquired intangible assets | $ 1.5 | $ 1.8 | $ 5 | $ 4.7 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remaining three months of 2019 | $ 1,455 |
2020 | 4,816 |
2021 | 3,423 |
2022 | 2,943 |
2023 | 2,276 |
Thereafter | 2,109 |
Net Carrying Amount | $ 17,022 |
Convertible Senior Notes - Conv
Convertible Senior Notes - Convertible Senior Notes (Details) | 1 Months Ended | 9 Months Ended | ||||
Apr. 30, 2019USD ($) | Mar. 31, 2019USD ($)shares | Apr. 30, 2018USD ($)day$ / sharesshares | Sep. 30, 2019USD ($)$ / shares | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||||||
Net proceeds | $ 780,180,000 | $ 335,618,000 | ||||
Senior Notes | 0.125% Convertible Senior Notes Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Face value | $ 100,000,000 | $ 700,000,000 | $ 800,000,000 | |||
Proceeds from issuance of debt | 800,000,000 | |||||
Interest rate, stated percentage | 0.125% | |||||
Less initial purchasers’ discount | (18,998,000) | |||||
Less other issuance costs | (822,000) | |||||
Net proceeds | $ 780,180,000 | |||||
Conversion price | $ / shares | $ 51.56 | |||||
Equity component | $ 206,747,000 | |||||
Debt issuance costs | $ (19,800,000) | |||||
Debt instrument, remaining useful life | 5 years 6 months | |||||
Debt conversion, converted instrument, amount | $ 464,700,000 | |||||
Debt instrument, if-converted value less than principal | $ (335,300,000) | |||||
Interest rate, effective percentage | 5.40% | |||||
Senior Notes | 0.25% Convertible Senior Notes Due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Face value | $ 345,000,000 | $ 345,000,000 | $ 345,000,000 | |||
Proceeds from issuance of debt | $ 345,000,000 | |||||
Interest rate, stated percentage | 0.25% | |||||
Option to purchase additional notes | $ 45,000,000 | |||||
Less initial purchasers’ discount | (8,625,000) | |||||
Less other issuance costs | (757,000) | |||||
Net proceeds | $ 335,618,000 | |||||
Conversion ratio | 0.0193956 | 0.0371051 | ||||
Conversion price | $ / shares | $ 26.95 | |||||
Equity component | $ 64,200,000 | $ 62,444,000 | $ 62,444,000 | |||
Debt issuance costs | $ (9,400,000) | |||||
Debt instrument, remaining useful life | 3 years 7 months 6 days | |||||
Share price (in dollars per share) | $ / shares | $ 29.95 | |||||
Debt conversion, converted instrument, amount | $ 383,400,000 | |||||
Debt instrument, if-converted value in excess of principal | 38,400,000 | |||||
Interest rate, effective percentage | 4.34% | |||||
Sale Price Is Greater Or Equal 130% | Senior Notes | 0.25% Convertible Senior Notes Due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Threshold trading days | day | 20 | |||||
Threshold consecutive trading days | day | 30 | |||||
Threshold percentage of stock price trigger | 130.00% | |||||
Trading Price Per $1,000 Principal Amount Less Than 98% | Senior Notes | 0.25% Convertible Senior Notes Due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Threshold trading days | day | 5 | |||||
Threshold consecutive trading days | day | 10 | |||||
Trading Price Per $1,000 Principal Amount Less Than 98% | Senior Notes | 0.25% Convertible Senior Notes Due 2023 | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Threshold percentage of stock price trigger | 98.00% | |||||
Liability component | Senior Notes | 0.125% Convertible Senior Notes Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Net carrying amount | 588,000,000 | |||||
Equity component | 212,000,000 | |||||
Debt issuance costs | (14,600,000) | |||||
Liability component | Senior Notes | 0.25% Convertible Senior Notes Due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Net carrying amount | $ 280,800,000 | |||||
Debt issuance costs | (7,600,000) | |||||
Equity component | Senior Notes | 0.125% Convertible Senior Notes Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs | $ (5,300,000) | |||||
Equity component | Senior Notes | 0.25% Convertible Senior Notes Due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs | (1,700,000) | |||||
Capped Call | Senior Notes | 0.125% Convertible Senior Notes Due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Net proceeds | $ 97,200,000 | |||||
Conversion price | $ / shares | $ 79.32 | |||||
Shares covered by capped call transactions (in shares) | shares | 15,516,480 | |||||
Capped Call | Senior Notes | 0.25% Convertible Senior Notes Due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Net proceeds | $ 39,200,000 | |||||
Conversion price | $ / shares | $ 40.68 | |||||
Shares covered by capped call transactions (in shares) | shares | 12,801,260 |
Convertible Senior Notes - Net
Convertible Senior Notes - Net Carrying Amount (Details) - Senior Notes - USD ($) | Sep. 30, 2019 | Apr. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Apr. 30, 2018 |
0.125% Convertible Senior Notes Due 2025 | |||||
Debt Instrument [Line Items] | |||||
Principal | $ 800,000,000 | $ 100,000,000 | $ 700,000,000 | ||
Unamortized debt discount | (193,637,000) | ||||
Unamortized issuance costs | (13,305,000) | ||||
Debt discount for conversion option | 212,000,000 | ||||
Issuance costs | (5,253,000) | ||||
Net carrying amount (equity) | 206,747,000 | ||||
0.25% Convertible Senior Notes Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Principal | 345,000,000 | $ 345,000,000 | $ 345,000,000 | ||
Unamortized debt discount | (45,440,000) | (54,817,000) | |||
Unamortized issuance costs | (5,403,000) | (6,515,000) | |||
Debt discount for conversion option | 64,193,000 | 64,193,000 | |||
Issuance costs | (1,749,000) | (1,749,000) | |||
Net carrying amount (equity) | 62,444,000 | 62,444,000 | $ 64,200,000 | ||
Carrying Amount | Fair Value, Measurements, Nonrecurring | |||||
Debt Instrument [Line Items] | |||||
Net carrying amount (liability) | 887,215,000 | 283,668,000 | |||
Carrying Amount | Fair Value, Measurements, Nonrecurring | 0.125% Convertible Senior Notes Due 2025 | |||||
Debt Instrument [Line Items] | |||||
Net carrying amount (liability) | 593,058,000 | 0 | |||
Carrying Amount | Fair Value, Measurements, Nonrecurring | 0.25% Convertible Senior Notes Due 2023 | |||||
Debt Instrument [Line Items] | |||||
Net carrying amount (liability) | $ 294,157,000 | $ 283,668,000 |
Convertible Senior Notes - Inte
Convertible Senior Notes - Interest Expense Recognized (Details) - Senior Notes - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
0.125% Convertible Senior Notes Due 2025 | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 252 | $ 517 | ||
Amortization of debt discount | 8,939 | 18,363 | ||
Amortization of issuance costs | 614 | 1,262 | ||
Total interest expense | 9,805 | 20,142 | ||
0.25% Convertible Senior Notes Due 2023 | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | 217 | $ 218 | 645 | $ 428 |
Amortization of debt discount | 3,161 | 3,160 | 9,377 | 6,217 |
Amortization of issuance costs | 375 | 377 | 1,112 | 741 |
Total interest expense | $ 3,753 | $ 3,755 | $ 11,134 | $ 7,386 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Right of use assets | $ 16,312 | $ 16,312 | $ 0 |
Operating lease liability | $ 20,297 | $ 20,297 | |
Weighted average remaining lease term for operating lease | 4 years | 4 years | |
Weighted average discount rate used to determine the operating lease liability | 4.70% | 4.70% | |
Lease expense | $ 1,200 | $ 3,700 | |
INDIA | |||
Lessee, Lease, Description [Line Items] | |||
Right of use assets | 2,600 | 2,600 | |
Operating lease liability | $ 2,600 | $ 2,600 |
Leases - Maturities of Operatin
Leases - Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Remaining three months of 2019 | $ 1,437 | |
2020 | 5,834 | |
2021 | 5,362 | |
2022 | 5,147 | |
2023 | 3,742 | |
2024 | 780 | |
Total future minimum lease payments | 22,302 | |
Less imputed interest | (2,005) | |
Total lease liabilities | $ 20,297 | |
2019 | $ 5,222 | |
2020 | 5,251 | |
2021 | 4,775 | |
2022 | 3,999 | |
2023 | 3,421 | |
Thereafter | 788 | |
Total | $ 23,456 |
Stockholders' Equity - Share-ba
Stockholders' Equity - Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 16,865 | $ 13,818 | $ 47,355 | $ 37,503 |
Cost of revenues | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 96 | 106 | 295 | 303 |
Research and development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 5,741 | 4,528 | 15,876 | 12,190 |
Sales and marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 1,843 | 1,675 | 5,405 | 4,994 |
General and administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 9,185 | $ 7,509 | $ 25,779 | $ 20,016 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 9 Months Ended |
Mar. 31, 2019 | Sep. 30, 2019 | |
RSUs and PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation costs related to restricted stock units | $ 84.2 | |
Weighted average vesting period for recognition of compensation expense | 1 year 7 months 6 days | |
Common Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares repurchased (in shares) | 504,286 | |
Share price (in dollars per share) | $ 39.66 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Restricted Stock Unit Activity (Details) - RSUs and PSUs | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Shares Outstanding | |
Number of RSUs and PSUs Outstanding, Beginning (shares) | shares | 10,804,808 |
Number of RSUs and PSUs, Granted (shares) | shares | 1,972,614 |
Number of RSUs and PSUs, Released (shares) | shares | (5,343,183) |
Number of RSUs and PSUs, Canceled (shares) | shares | (1,069,392) |
Number of RSUs and PSUs Outstanding, Ending (shares) | shares | 6,364,847 |
Weighted Average Grant Date Fair Value | |
Weighted Average Grant Date Fair Value, Beginning balance (in dollars per share) | $ / shares | $ 11.87 |
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares | 39.56 |
Weighted Average Grant Date Fair Value, Released (in dollars per share) | $ / shares | 9.94 |
Weighted Average Grant Date Fair Value, Canceled (in dollars per share) | $ / shares | 10.65 |
Weighted Average Grant Date Fair Value, Ending balance (in dollars per share) | $ / shares | $ 22.28 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 623 | $ 713 | $ 1,832 | $ 1,682 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) | 9 Months Ended |
Sep. 30, 2019position | |
2017 Restructuring Plan | Workforce Reduction Costs | |
Restructuring Cost and Reserve [Line Items] | |
Number of positions eliminated | 55 |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | $ 448 | $ 265 | $ 265 | ||
Restructuring charges | $ 28 | $ 17 | 97 | 252 | 589 |
Cash payments | (200) | (388) | |||
Write-offs | (18) | ||||
Ending balance | 43 | 43 | 448 | ||
2017 Restructuring Plan | Workforce Reduction Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 146 | 44 | 44 | ||
Restructuring charges | 97 | 253 | |||
Cash payments | (200) | (151) | |||
Write-offs | 0 | ||||
Ending balance | 43 | 43 | 146 | ||
2017 Restructuring Plan | Lease Termination and Other Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 0 | 0 | 0 | ||
Restructuring charges | 0 | 19 | |||
Cash payments | 0 | (19) | |||
Write-offs | 0 | ||||
Ending balance | 0 | 0 | 0 | ||
2015 Restructuring Plan | Lease Termination and Other Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning balance | 302 | $ 221 | 221 | ||
Restructuring charges | 0 | 317 | |||
Cash payments | 0 | (218) | |||
Write-offs | (18) | ||||
Ending balance | $ 0 | 0 | $ 302 | ||
Accounting Standards Update 2016-02 | |||||
Restructuring Reserve [Roll Forward] | |||||
Write-offs | (302) | ||||
Accounting Standards Update 2016-02 | 2017 Restructuring Plan | Workforce Reduction Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Write-offs | 0 | ||||
Accounting Standards Update 2016-02 | 2017 Restructuring Plan | Lease Termination and Other Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Write-offs | 0 | ||||
Accounting Standards Update 2016-02 | 2015 Restructuring Plan | Lease Termination and Other Costs | |||||
Restructuring Reserve [Roll Forward] | |||||
Write-offs | $ (302) |
Related-Party Transactions (Det
Related-Party Transactions (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)board_member | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Adobe Systems | Chief Executive Officer | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related party | $ 400,000 | $ 600,000 | $ 1,900,000 | $ 2,800,000 | |
Revenue from related parties | 0 | 0 | 0 | 100,000 | |
Receivables from related party | 0 | 0 | $ 0 | ||
Cengage | Chief Executive Officer | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 1,300,000 | 1,200,000 | 2,900,000 | 3,200,000 | |
Due to related parties | $ 100,000 | ||||
Cengage | Board Of Directors Member | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related party | 4,200,000 | 3,800,000 | $ 14,800,000 | 10,300,000 | |
Number of board members appointed to Board of Directors of related party | board_member | 1 | ||||
PayPal | Board Of Directors Member | |||||
Related Party Transaction [Line Items] | |||||
Expenses from transactions with related party | 400,000 | $ 400,000 | $ 1,200,000 | $ 1,000,000 | |
Synack, Inc. | Board Of Directors Member | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related party | $ 100,000 | $ 400,000 | |||
Number of board members appointed to Board of Directors of related party | board_member | 1 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event - USD ($) | Oct. 01, 2019 | Oct. 07, 2019 |
Thinkful, Inc. | ||
Subsequent Event [Line Items] | ||
Cash paid to sellers at the closing of acquisition | $ 80,000,000 | |
Potential additional payments, subject to performance-based contingencies | $ 20,000,000 | |
Logistics And Warehousing Services | FedEx | ||
Subsequent Event [Line Items] | ||
Fixed total commitments | $ 15,400,000 |
Uncategorized Items - chegg2019
Label | Element | Value |
Accounting Standards Update 2018-02 And 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (77,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (111,000) |
Accounting Standards Update 2018-02 And 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (77,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (111,000) |