Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 18, 2020 | Jun. 30, 2019 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 001-33368 | ||
Entity Registrant Name | Glu Mobile Inc | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 91-2143667 | ||
Entity Address, Address Line One | 875 Howard Street, Suite 100 | ||
Entity Address, City or Town | San Francisco | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94103 | ||
City Area Code | 415 | ||
Local Phone Number | 800-6100 | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | ||
Trading Symbol | GLUU | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 879,331,800 | ||
Entity Common Stock, Shares Outstanding | 150,031,695 | ||
Entity Central Index Key | 0001366246 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 127,053 | $ 97,834 |
Accounts receivable, net | 29,304 | 27,325 |
Prepaid royalties | 15,347 | 8,520 |
Deferred royalties | 5,067 | 4,410 |
Deferred platform commission fees | 29,239 | 25,862 |
Restricted cash | 110 | |
Prepaid expenses and other assets | 8,629 | 6,940 |
Total current assets | 214,639 | 171,001 |
Property and equipment, net | 17,643 | 13,888 |
Operating lease right of use assets | 35,170 | |
Long-term prepaid royalties | 26,879 | 1,667 |
Other long-term assets | 2,733 | 2,505 |
Intangible assets, net | 4,758 | 9,145 |
Goodwill | 116,227 | 116,227 |
Total assets | 418,049 | 314,433 |
Current liabilities: | ||
Accounts payable | 16,892 | 10,480 |
Accrued liabilities | 643 | 1,384 |
Accrued compensation | 11,260 | 17,896 |
Accrued royalties | 20,802 | 14,139 |
Accrued restructuring | 294 | |
Short-term operating lease liabilities | 3,528 | |
Deferred revenue | 97,629 | 85,736 |
Total current liabilities | 150,754 | 129,929 |
Long-term accrued royalties | 26,842 | 1,649 |
Long-term operating lease liabilities | 37,351 | |
Other long-term liabilities | 15 | 5,542 |
Total liabilities | 214,962 | 137,120 |
Commitments and contingencies (Note 10) | ||
Stockholders' equity: | ||
Preferred stock, $0.0001 par value; 5,000 shares authorized at December 31, 2019 and December 31, 2018; no shares issued and outstanding at December 31, 2019 and December 31, 2018 | ||
Common stock, $0.0001 par value; 250,000 shares authorized at December 31, 2019 and December 31, 2018; 147,778 and 143,870 shares issued and outstanding at December 31, 2019 and December 31, 2018 | 15 | 14 |
Additional paid-in capital | 634,721 | 617,781 |
Accumulated other comprehensive (loss)/income | (37) | 1 |
Accumulated deficit | (431,612) | (440,483) |
Total stockholders' equity | 203,087 | 177,313 |
Total liabilities and stockholders' equity | $ 418,049 | $ 314,433 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 250,000 | 250,000 |
Common stock, shares issued | 147,778 | 143,870 |
Common stock, shares outstanding | 147,778 | 143,870 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
Revenue | $ 411,381 | $ 366,561 | $ 286,827 |
Cost of revenue: | |||
Platform commissions, royalties and other | 140,655 | 128,445 | 103,499 |
Impairment of prepaid royalties and minimum guarantees | 457 | 711 | 27,323 |
Impairment and amortization of intangible assets | 4,387 | 9,119 | 10,331 |
Total cost of revenue | 145,499 | 138,275 | 141,153 |
Gross profit | 265,882 | 228,286 | 145,674 |
Operating expenses: | |||
Research and development | 95,127 | 94,934 | 92,420 |
Sales and marketing | 140,298 | 113,860 | 104,356 |
General and administrative | 23,216 | 31,667 | 34,425 |
Restructuring charge | 240 | 6,019 | |
Total operating expenses | 258,641 | 240,701 | 237,220 |
Income/(loss) from operations | 7,241 | (12,415) | (91,546) |
Interest and other income/(expense), net | 2,101 | (235) | (6,850) |
Income/(loss) before income taxes | 9,342 | (12,650) | (98,396) |
Income tax (provision)/benefit | (471) | (549) | 826 |
Net income/(loss) | $ 8,871 | $ (13,199) | $ (97,570) |
Net income/(loss) per common share - basic | $ 0.06 | $ (0.09) | $ (0.72) |
Net income/(loss) per common share - diluted | $ 0.06 | $ (0.09) | $ (0.72) |
Weighted average common shares outstanding: | |||
Basic | 145,838 | 141,402 | 135,715 |
Diluted | 157,383 | 141,402 | 135,715 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) | |||
Net income/(loss) | $ 8,871 | $ (13,199) | $ (97,570) |
Other comprehensive income/(loss): | |||
Foreign currency translation adjustments | (38) | 7 | (252) |
Other comprehensive income/(loss) | (38) | 7 | (252) |
Comprehensive income/(loss) | $ 8,833 | $ (13,192) | $ (97,822) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY - USD ($) shares in Thousands, $ in Thousands | Common stock | Additional Paid-In Capital | Accumulated other comprehensive income/(loss) | Accumulated Deficit | Total |
Beginning balance at Dec. 31, 2016 | $ 13 | $ 571,243 | $ 246 | $ (338,688) | $ 232,814 |
Beginning balances (in shares) at Dec. 31, 2016 | 134,001 | ||||
Net loss | (97,570) | (97,570) | |||
Stock-based compensation expense | 14,845 | 14,845 | |||
Issuance of common stock upon exercise of stock options | 2,564 | 2,564 | |||
Issuance of common stock upon exercise of stock options (in shares) | 1,083 | ||||
Issuance of common stock upon exercise of warrants | 3,000 | 3,000 | |||
Issuance of common stock upon exercise of warrants (in shares) | 1,000 | ||||
Taxes paid related to net share settlement of equity awards | $ 1 | (3,369) | (3,368) | ||
Taxes paid related to net share settlement of equity awards (in shares) | 1,767 | ||||
Issuance of common stock pursuant to Employee Stock Purchase Plan | 1,567 | 1,567 | |||
Issuance of common stock pursuant to Employee Stock Purchase Plan (in shares) | 894 | ||||
Non-cash warrant expense | 260 | 260 | |||
Other comprehensive income/(loss) | (252) | (252) | |||
Ending balance at Dec. 31, 2017 | $ 14 | 589,962 | (6) | (436,110) | 153,860 |
Ending balances (in shares) at Dec. 31, 2017 | 138,745 | ||||
Cumulative effect adjustment from adoption of ASU | ASU 2016-09 | (148) | 148 | |||
Net loss | (13,199) | (13,199) | |||
Stock-based compensation expense | 24,592 | 24,592 | |||
Issuance of common stock upon exercise of stock options | 6,922 | 6,922 | |||
Issuance of common stock upon exercise of stock options (in shares) | 2,721 | ||||
Taxes paid related to net share settlement of equity awards | (7,097) | (7,097) | |||
Taxes paid related to net share settlement of equity awards (in shares) | 1,634 | ||||
Issuance of common stock pursuant to Employee Stock Purchase Plan | 2,356 | 2,356 | |||
Issuance of common stock pursuant to Employee Stock Purchase Plan (in shares) | 770 | ||||
Non-cash warrant expense | 1,046 | 1,046 | |||
Other comprehensive income/(loss) | 7 | 7 | |||
Ending balance at Dec. 31, 2018 | $ 14 | 617,781 | 1 | (440,483) | 177,313 |
Ending balances (in shares) at Dec. 31, 2018 | 143,870 | ||||
Cumulative effect adjustment from adoption of ASU | ASU 2016-09 | 8,826 | 8,826 | |||
Net loss | 8,871 | 8,871 | |||
Stock-based compensation expense | 17,383 | 17,383 | |||
Issuance of common stock upon exercise of stock options | $ 1 | 4,553 | 4,554 | ||
Issuance of common stock upon exercise of stock options (in shares) | 1,723 | ||||
Taxes paid related to net share settlement of equity awards | (8,408) | (8,408) | |||
Taxes paid related to net share settlement of equity awards (in shares) | 1,457 | ||||
Issuance of common stock pursuant to Employee Stock Purchase Plan | 3,412 | 3,412 | |||
Issuance of common stock pursuant to Employee Stock Purchase Plan (in shares) | 728 | ||||
Other comprehensive income/(loss) | (38) | (38) | |||
Ending balance at Dec. 31, 2019 | $ 15 | $ 634,721 | $ (37) | $ (431,612) | $ 203,087 |
Ending balances (in shares) at Dec. 31, 2019 | 147,778 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income/(loss) | $ 8,871 | $ (13,199) | $ (97,570) |
Adjustments to reconcile net income/(loss) to net cash generated/(used in) operating activities: | |||
Depreciation | 4,225 | 3,855 | 3,195 |
Impairment and amortization of intangible assets | 4,387 | 9,119 | 10,331 |
Stock-based compensation | 17,383 | 24,592 | 15,063 |
Warrant expense | 1,046 | 631 | |
Net loss from the sale of a foreign subsidiary | 6,468 | ||
Other non-cash adjustments | 156 | 1,095 | (1,577) |
Impairment of prepaid royalties and minimum guarantees | 457 | 711 | 27,323 |
Non-cash lease expense | 3,348 | ||
Changes in operating assets and liabilities: | |||
Accounts receivable | (1,975) | 7,028 | (13,061) |
Prepaid royalties | 389 | (947) | (18,868) |
Deferred royalties | (657) | (835) | (1,088) |
Deferred platform commission fees | (3,377) | (5,416) | (8,876) |
Prepaid expenses and other assets | (1,957) | 1,345 | (4,151) |
Accounts payable, accrued restructuring, and other accrued liabilities | 3,090 | (10,709) | 5,223 |
Accrued compensation | (6,636) | (2,707) | 8,094 |
Accrued royalties | (1,029) | (947) | 4,125 |
Deferred revenue | 11,893 | 17,947 | 32,539 |
Other long-term liabilities | (365) | 308 | 3,963 |
Operating lease liabilities | (3,022) | ||
Net cash generated from/(used in) operating activities | 35,181 | 32,286 | (28,236) |
Cash flows from investing activities: | |||
Purchase of property and equipment | (5,283) | (3,362) | (11,344) |
Proceeds from divestiture of Moscow studio | 2,726 | ||
Net cash paid for acquisitions | (1,659) | ||
Other investing activities | (155) | (1,410) | |
Net cash used in investing activities | (5,438) | (636) | (14,413) |
Cash flows from financing activities: | |||
Proceeds from exercise of stock options and purchases under the ESPP | 7,965 | 9,278 | 4,131 |
Taxes paid related to net share settlement of equity awards | (8,408) | (7,097) | (3,368) |
Proceeds from exercise of stock warrants and issuance of common stock | 3,000 | ||
Net cash (used in)/generated from financing activities | (443) | 2,181 | 3,763 |
Effect of exchange rate changes on cash | (191) | (253) | (162) |
Net increase/(decrease) in cash, cash equivalents and restricted cash | 29,109 | 33,578 | (39,048) |
Cash, cash equivalents and restricted cash at beginning of period | 97,944 | 64,366 | 103,414 |
Cash, cash equivalents and restricted cash at end of period | 127,053 | 97,944 | 64,366 |
Supplemental disclosures of cash flow information | |||
Purchases of property and equipment included in accounts payable and accrued liabilities and other current liabilities | 3,633 | 1,101 | 1,350 |
Income taxes paid | $ 723 | $ 382 | $ 365 |
THE COMPANY AND SUMMARY OF SIGN
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 — THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company Glu Mobile Inc. (the “Company” or “Glu”) was incorporated in Nevada in May 2001 and reincorporated in the state of Delaware in March 2007. The Company develops, publishes, and markets a portfolio of games designed for users of smartphones and tablet devices who download and make purchases within its games through direct-to-consumer digital storefronts, such as the Apple App Store, Google Play Store, and others (“Digital Storefronts”). The Company creates games based on its own original brands, as well as third-party licensed brands, properties and other content. Basis of Presentation The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated on consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in its consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Estimates and assumptions reflected in the financial statements include, but are not limited to, estimation of the average playing period of paying users associated with durable virtual items, the allowance for doubtful accounts, useful lives of property and equipment and intangible assets, valuation and realizability of deferred tax assets and uncertain tax positions, fair value of stock awards issued, fair value of warrants issued, accounting for business combinations, evaluating goodwill, long-lived assets for impairment, and realization of prepaid royalties and fair value of investments. Actual results may differ from these estimates and these differences may be material. Revenue Recognition The Company generates revenue through in-application purchases (“in-app purchases”) within its games on smartphones and tablet devices, such as Apple’s iPhone and iPad, and mobile devices utilizing Google’s Android operating system. Users can download the Company’s free-to-play games The Company adopted Accounting Standard Codification Topic 606, Revenue with Contracts with Customers (“ASC 606”) and its related amendments effective January 1, 2018 using a modified retrospective method. The reported results for the year ended December 31, 2018 reflect the application of ASC 606 guidance while the reported results for the year ended December 31, 2017 were prepared under the guidance of Accounting Standard Codification 605 (“ASC 605”), Revenue Recognition (ASC 605), which is also referred to herein as "legacy GAAP" or the "previous guidance". The adoption of ASC 606 represents a change in accounting principle that will more closely align revenue recognition with the delivery of the Company's services and will provide financial statement readers with enhanced disclosures. In accordance with ASC 606, revenue is recognized when or as a customer obtains control of promised services. The amount of revenue recognized reflects the consideration which the Company expects to receive in exchange for these services. A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the services to be transferred and identifies the payment terms related to these services, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. ASC 606 requires an entity to disclose the revenue recognized in the reporting period from performance obligations satisfied (or partially satisfied) in previous periods (for example, due to changes in transaction price). Revenue recognized relating to performance obligations satisfied in prior periods was $0 for the year ended December 31, 2019 and December 31, 2018, respectively. The Company elects to use the practical expedient under 606-10-50-14 which states an entity need not disclose the information in paragraph 606-10-50-13 for a performance obligation if the following criteria are met: 1. the performance obligation is part of a contract that has an original expected duration of one year or less; and 2. the entity recognizes revenue from the satisfaction of the performance obligation in accordance with paragraph 606-10-55-18 (right to invoice). Since all of the Company’s contracts have an original expected duration of one year or less, the Company elects to use this practical expedient and does not disclose the aggregate transaction price allocated to unsatisfied or partially satisfied performance obligations. In-App Purchases Users can download the Company’s free-to-play games within the Digital Storefronts and pay to acquire virtual currency, which can be redeemed in the game for virtual goods, or virtual goods directly (together, defined as “virtual items”) to enhance their game-playing experience. The Company sells both consumable and durable virtual items and receives reports from the Digital Storefronts, which breakdown the various purchases made from the Company’s games over a given time period. The Company reviews these reports and determines on a per-item basis whether the purchase was a consumable virtual item or a durable virtual item. Consumable virtual items are items that are consumed at a predetermined time or otherwise have limitations on repeated use. Durable virtual items are items, such as furniture, clothes, etc. that are accessible to the player over an extended period of time and that remain in the game for as long as the player continues to play. The initial download of the mobile game from the Digital Storefront does not create a contract under ASC 606 because of the lack of commercial substance; however, the separate election by the player to make an in-application purchase satisfies the criterion thus creating a contract under ASC 606. The Company has identified the following performance obligations in these contracts: 1. Ongoing game related services such as hosting of game play, storage of customer content, when and if available content updates, maintaining the virtual currency management engine, tracking gameplay statistics, matchmaking as it relates to multiple player gameplay, etc. 2. Obligation to the paying player to continue displaying and providing access to the virtual items within the game. Neither of these obligations are considered distinct since the actual mobile game and the related ongoing services are both required to purchase and benefit from the related virtual items. As such, the Company’s performance obligations represent a single combined performance obligation which is to make the game and the ongoing game related services available to the players. The transaction price, which is the amount paid for the virtual items by the player, is allocated entirely to the single combined performance obligation. The Company recognizes revenue for durable virtual items over the estimated average playing period of paying users on a per title basis. The Company’s revenue from consumable virtual items has been insignificant over the previous three years. The Company has estimated the useful life of a paying user between four Advertisements and Offers The Company has relationships with certain advertising service providers for advertisements within its mobile games. Revenue from these advertising service providers is generated through impressions, clickthroughs, offers and banner ads. Offers are the type of advertisements where the players are rewarded with virtual currency for completing specified actions, such as downloading another application, watching a short video, subscribing to a service or completing a survey. The Company has determined the advertising buyer to be its customer and displaying the advertisements within the mobile games is identified as the single performance obligation. Revenue from advertisements and offers are recognized at the point-in-time the advertisements are displayed in the game or the offer has been completed by the user as the customer simultaneously receives and consumes the benefits provided from these services. Other Estimates and Judgments The Company computes its estimated average playing period of paying users at least twice each year. It has examined the playing patterns of paying users across a representative sample of its games across various genres. The Company uses the “survival analysis” model to estimate the average playing period for paying users. This model provides for a singular approach to estimating the average playing period of paying users on a title by title basis for the Company’s diverse portfolio of games. It is a statistical model that analyzes time duration until one or more events happens and is commonly used in various industries for estimating lifespans. The Company believes this is an appropriate model to estimate the average playing period of paying users for its titles as this model statistically estimates the average playing period of each title by analyzing the historical behavior patterns of paying users. This model requires the stratification of user data into active and inactive paying users on a per title basis. Active users are those who are active in the game for the past 30 days as of the evaluation date. The remaining users are considered inactive and deemed to have churned from the game. These users are treated mathematically differently in the model than those who are still active. A distribution curve is then fit to the user data to estimate the average playing period of paying users on a per title basis. The Company has selected a threshold of 120 days from the commercial launch of a title as the minimum number of days of data required for this model. This threshold was deemed to be appropriate as the Company tested the model using lower thresholds which resulted in inconsistencies in the estimate of the average playing period of paying users. For new titles with less than 120 days of data that share similar attributes with an existing title and/or prequel titles, the average playing period is determined based on the average playing period of that existing title or prequel title, as applicable. For all other titles with less than 120 days of data, the average playing period is determined based on the average playing period of all other remaining existing titles. While the Company believes its estimates to be reasonable based on available game player information, it may revise such estimates in the future if a titles’ user characteristics change. Any adjustments arising from changes in the estimates of the average playing period for paying users would be applied to the current quarter and prospectively on the basis that such changes are caused by new information that indicates a change in user behavior patterns compared to historical titles. Any changes in the Company’s estimates of the useful life of virtual items in a certain title may result in revenue being recognized on a basis different from prior periods’ and may cause its operating results to fluctuate. Principal Agent Considerations The Company evaluated its Digital Storefront and advertising service provider agreements under ASC 606 in order to determine if it is acting as the principal or as an agent when selling virtual items or advertisements within its games. The Company primarily uses Digital Storefronts for distributing its smartphone games and for enabling players to purchase virtual items and advertising service providers to serve advertisements within its games. The Company evaluated the following factors to assess whether it controls each specified good or service before that good or service is transferred to the customer: ● the party responsible for the fulfillment of the virtual items, game related services, or serving of advertisements; ● the party having the discretion to set pricing with the end-users; and ● the party having inventory risk before the specified good or service have been transferred to a customer. Based on the evaluation of the above indicators, the Company determined that it has control of the services before they are transferred to the end-user. Thus, the Company is generally acting as a principal and is the primary obligor to end-users for games distributed through Digital Storefronts and advertisements served through its advertising service providers. Therefore, the Company recognizes revenue related to these arrangements on a gross basis, when the necessary information about the gross amounts or platform fees charged, before any adjustments, are made available by the Digital Storefronts and advertising service providers. In situations where the price paid by the end-user of the advertising service provider is not known, the Company accounts for these transactions on a net basis. Deferred Platform Commissions and Royalties Digital Storefronts retain platform commissions and fees on each purchase made by the paying players through the Digital Storefront. The Company is also obligated to pay ongoing licensing fees in the form of royalties related to the games developed based on or significantly incorporating licensed brands, properties or other content, and the Company plans to incorporate additional licensed content in some of its own originally branded games. As revenue from sales to paying players through Digital Storefronts are deferred, the related direct and incremental platform commissions and fees as well as third-party royalties are also deferred on the consolidated balance sheets. The deferred platform commissions and royalties are recognized in the consolidated statements of operations in “Cost of revenue” in the period in which the related sales are recognized as revenue. Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and money market funds. The Company considers all investments purchased with original maturities of three months or less from the date of purchase to be cash equivalents. The Company deposits cash and cash equivalents with financial institutions that management believes are of high credit quality. Deposits held with financial institutions often exceed the amount of insurance on these deposits. Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and accounts receivable. The following table summarizes the revenue from customers or aggregate purchases through Digital Storefronts in excess of 10% of the Company’s revenue: Year Ended December 31, 2019 2018 2017 Apple 54.4 % 54.7 % 54.2 % Google 33.5 % 31.3 % 30.3 % At December 31, 2019, Apple Inc. (“Apple”), Google Inc. (“Google”), and Tapjoy Inc. (“Tapjoy”) accounted for 47.2%, 28.5%, and 17.8%, respectively, of total accounts receivable. At December 31, 2018, Apple, Google and Tapjoy accounted for 40.8%, 30.3%, and 21.1%, respectively, of total accounts receivable. No other customer represented more than 10% of the Company’s total accounts receivable as of these dates. Fair Value Accounting Standard Codification 820 Fair Value Measurements and Disclosures Level 1 Level 2 Level 3 Foreign Currencies Cumulative foreign currency translation adjustments include any gain or loss associated with the translation of a subsidiary’s financial statements when the functional currency of a subsidiary is the local currency. If the Company disposes of any of its subsidiaries, any cumulative translation gains or losses would be realized and recorded in other income (expense) within the Company’s consolidated statement of operations in the period during which the disposal occurs. If the Company determines that there has been a change in the functional currency of a subsidiary from a local currency to the U.S. Dollar, any translation gains or losses arising after the date of change would be included in interest and other income/(expense), net within the Company’s consolidated statement of operations. Prepaid or Guaranteed Licensor Royalties The Company’s royalty expenses consist of fees that it pays to content owners for the use of their brands, properties and other licensed content, including trademarks and copyrights, in the development of the Company’s games. Royalty-based obligations are either paid in advance and capitalized on the balance sheet as prepaid royalties or accrued as incurred and subsequently paid. These royalty-based obligations are expensed to cost of revenue at the greater of the revenue derived from the relevant game multiplied by the applicable contractual rate or an effective royalty rate based on expected net product sales. The Company’s contracts with some licensors include minimum guaranteed royalty payments, which are payable regardless of the ultimate revenue generated from end users. In accordance with Accounting Standard Codification 440-10 Commitments Each quarter, the Company evaluates the realization of its prepaid royalties as well as any recognized guarantees not yet paid to determine amounts that it deems unlikely to be realized through product sales. The Company uses estimates of revenue, cash flows and net margins to evaluate the future realization of prepaid royalties, license fees, and guarantees. This evaluation considers multiple factors such as the term of the agreement, forecasted demand, game life cycle status, game development plans, and current and anticipated sales levels, as well as other qualitative factors such as the success of similar games and similar genres on mobile devices published by the Company and its competitors other game platforms (e.g., consoles and personal computers) utilizing the intellectual property. To the extent that this evaluation indicates that the remaining prepaid and guaranteed royalty payments are not recoverable, the Company records an impairment charge to cost of revenue in the period in which impairment is indicated. related to prepaid guaranteed royalties for certain of its celebrity license agreements, and certain other prepaid royalties Goodwill and Intangible Assets In accordance with Accounting Standard Codification 350 Intangibles-Goodwill and Other th Step — 0 The Company evaluates qualitative factors and overall financial performance to determine whether it is necessary to perform the first step of the two-step goodwill test. This step is referred to as “Step 0.” Step 0 involves, among other qualitative factors, weighing the relative impact of factors that are specific to the reporting unit as well as industry and macroeconomic factors. After assessing those various factors, if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity will need to proceed to the first step of the two-step goodwill impairment test. Step — 1 The Company compares the fair value of each of its reporting units to the carrying value including goodwill of that unit. For each reporting unit where the carrying value, including goodwill, exceeds the unit’s fair value, the Company moves on to step 2. If a unit’s fair value exceeds the carrying value, no further work is performed and no impairment charge is necessary. Step — 2 The Company performs an allocation of the fair value of the reporting unit to its identifiable tangible and intangible assets (other than goodwill) and liabilities. This allows the Company to derive an implied fair value for the unit’s goodwill. The Company then compares the implied fair value of the reporting unit’s goodwill with the carrying value of the unit’s goodwill. If the carrying amount of the unit’s goodwill is greater than the implied fair value of its goodwill, an impairment charge would be recognized for the excess. In 2019, 2018, and 2017, the Company did not Purchased intangible assets with finite lives are amortized using the straight-line method over their useful lives ranging from three Accounting Standard Codification 360 Property, Plant and Equipment Impairment of Long-Lived Assets The Company evaluates its long-lived assets, including property and equipment and intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of acquired assets, significant negative industry or economic trends, and a significant decline in the Company’s stock price for a sustained period of time. Impairment exists if the carrying amounts of such assets exceed the estimates of future undiscounted cash flows expected to be generated by such assets. Should an impairment exist, the impairment loss would be measured based on the excess carrying value of the asset over expected discounted future cash flows, or if applicable, the quoted market price from those assets. The Company has not recorded any such impairment charge during the years presented. Property and Equipment The Company states property and equipment at cost less accumulated depreciation and amortization. The Company computes depreciation or amortization using the straight-line method over the estimated useful lives of the respective assets or, in the case of leasehold improvements, the lease term of the respective assets, whichever is shorter. Cost of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. The depreciation and amortization periods for the Company’s property and equipment are as follows: Computer equipment Three years Computer software Two Furniture and fixtures Three years Leasehold improvements Shorter of the estimated useful life or remaining term of lease Internal Use Software The Company capitalizes internal use software development costs in accordance with Accounting Standard Codification 350-40 Intangibles-Goodwill and Other-Internal Use Software Accounting Standards Update 2015-05 Cloud Computing Arrangements Research and Development Costs The Company charges costs related to research, design and development of products to research and development expense as incurred. The types of costs included in research and development expenses include personnel-related expenses such as salaries and benefits related to product development employees, third party development cost, contractor fees, and allocated facilities costs. Software Development Costs The Company applies the principles of Accounting Standard Codification 985-20 Software-Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed Stock-Based Compensation The Company applies the fair value provisions of Accounting Standard Codification 718 Compensation-Stock Compensation The cost of RSUs and PSUs is determined using the fair value of the Company’s common stock based on the quoted closing price of the Company’s common stock on the date of grant. Compensation cost for stock options, RSUs and performance-based awards with a single vesting date is amortized ratably over the requisite service period. For performance-based awards that have multiple vesting dates, the compensation cost is recognized ratably over the requisite service period for each tranche, whereby each vesting tranche is treated as a separate award for determining the requisite service period. The compensation cost for performance-based awards may be adjusted over the vesting period based on interim estimates of performance against the pre-set financial performance measures. Advertising Expenses The Company expenses the production costs of advertising, including direct response advertising, the first time the advertising takes place. Advertising expense was $117,979, $95,037, and $88,775 in the years ended December 31, 2019, 2018, and 2017, respectively. Income Taxes The Company accounts for income taxes in accordance with Accounting Standard Codification 740 Income Taxes The Company accounts for uncertain tax positions in accordance with ASC 740, which requires companies to adjust their financial statements to reflect only those tax positions that are more-likely-than-not to be sustained. ASC 740 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits in income tax expense. Restructuring The Company accounts for costs associated with employee terminations and other exit activities in accordance with Accounting Standard Codification 420 Exit or Disposal Cost Obligations Comprehensive Income/(Loss) Comprehensive income/(loss) consists of two components, net income/(loss) and other comprehensive income/(loss). Other comprehensive income/(loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income/(loss). The Company’s other comprehensive income/(loss) included foreign currency translation adjustments from those subsidiaries not using the U.S. Dollar as their functional currency, and a reclassification to net income/(loss) from the write-off of cumulative translation adjustment. Business Combinations The Company applies the accounting standard related to business combinations, Accounting Standard Codification 805, Business Combinations ● recognition of assets acquired, liabilities assumed, and contingent consideration at their fair value on the acquisition date with subsequent changes recognized in earnings; ● acquisition-related expenses and restructuring costs to be recognized separately from the business combination and expensed as incurred; ● in-process research and development to be capitalized at fair value as an indefinite-lived intangible asset until completion or abandonment; and ● that changes in accounting for deferred tax asset valuation allowances and acquired income tax uncertainties after the measurement period be recognized as a component of provision for taxes. The Company accounts for acquisitions of entities or assets that include inputs and processes and have the ability to create outputs as business combinations. The purchase price of the acquisition is allocated to tangible assets, liabilities, and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the business combination date, these estimates and assumptions are inherently uncertain and subject to refinement. As a result, during the preliminary purchase price allocation period, which may be up to one year from the business combination date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. After the preliminary purchase price allocation period, the Company records adjustments to assets acquired or liabilities assumed subsequent to the purchase price allocation period in its operating results in the period in which the adjustments were determined. Operating Leases The Company determines if an arrangement is a lease at inception. Its operating lease agreements are primarily for real estate space and are included within operating lease right of use (“ROU”) assets and operating lease liabilities on the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, determined as the rate it would have incurred to borrow based on its credit quality at the inception of the lease over a similar term and in the economic environment where the leased asset is located, to calculate the present value of lease payments. ROU assets also exclude lease incentives. Many of the Company’s lease agreements include options to extend the lease, which the Company does not include in the minimum lease terms unless they are reasonably certain to be exercised. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. The Company adopted Accounting Standard Codification 842, Leases (“ASC 842”) effective January 1, 2019 using the modified retrospective transition approach and chose to account for the impact of the adoption as of the effective date. The reported results for 2019 reflect the application of ASC 842 guidance while the reported results for 2018 were prepared under the guidance of Accounting Standard Codification 840, Leases (“ASC 840”) , which is also referred to herein as "legacy GAAP" or the "previous guidance". The new standard provides a number of optional practical expedients in transition. The Company elected the ‘package of practical expedients’, which permits the Company to not reassess under the new standard for prior conclusions about lease identification, lease classification, and initial direct costs. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption, and for those leases that qualified, the Company did not recognize ROU assets or lease liabilities, and this included not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company also elected the practical expedient to not separate lease and non-lease components for all of its leases. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases Leases (Topic 842): Targeted Improvements Codification Improvements to Topic 842, Leases modified retrospective transition approach. See Note 9 “Leases” for the required disclosures related to the impact of adopting this standard and a discussion of the Company’s updated policies related to leases. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805) In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting those fiscal years. The Company adopted this new standard on January 1, 2019. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In July 2018, the FASB issued ASU 2018-09, Codification Improvements Recently Issued Accounting Pronouncements Not Yet Adopted In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disc |
NET INCOME_(LOSS) PER SHARE
NET INCOME/(LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
NET INCOME/(LOSS) PER SHARE | |
NET INCOME/(LOSS) PER SHARE | NOTE 2 — NET INCOME/(LOSS) PER SHARE The Company computes basic net income/(loss) per share by dividing its net income/(loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, including potential dilutive common stock instruments. Year Ended December 31, 2019 2018 2017 Net income/(loss) $ 8,871 $ (13,199) $ (97,570) Shares used to compute net income/(loss) per share: Weighted average shares used to compute basic net income/(loss) per share 145,838 141,402 135,715 Dilutive potential common shares 11,545 — — Weighted average shares used to compute diluted net income/(loss) per share 157,383 141,402 135,715 Basic net income/(loss) per share $ 0.06 $ (0.09) $ (0.72) Diluted net income/(loss) per share $ 0.06 $ (0.09) $ (0.72) The following equity awards outstanding at the end of each period presented have been excluded from the computation of net income/(loss) per share of common stock for the periods presented because including them would have had an anti-dilutive effect: Year Ended December 31, 2019 2018 2017 Warrants to purchase common stock 1,292 1,600 3,267 Options to purchase common stock 2,303 18,491 16,932 RSUs 659 3,021 5,812 PSOs 2,369 3,512 — PSUs 38 711 — ESPP 369 283 376 Total 7,030 27,618 26,387 |
BUSINESS COMBINATIONS _ DIVESTI
BUSINESS COMBINATIONS / DIVESTITURE | 12 Months Ended |
Dec. 31, 2019 | |
BUSINESS COMBINATIONS / DIVESTITURE | |
BUSINESS COMBINATIONS / DIVESTITURE | NOTE 3 — BUSINESS COMBINATIONS / DIVESTITURE Divestiture of Moscow Studio On December 31, 2017, the Company entered into the following agreements related to the divestiture of its Moscow-based game development studio (the “Moscow Studio”) through the sale of its wholly-owned UK subsidiary Glu Mobile (Russia) Limited (“GMRL”): ● Share Purchase Agreement (the “ SPA ”) between the Company and Saber Interactive (“ Saber ”); ● Transitional Services Agreement (the “ TSA ”) among the Company, Saber and MGL My.com (Cyprus) Limited (“ MGL ”); and ● Asset Purchase and License Agreement (the “APLA”) between the Company and MGL. Pursuant to the SPA, Saber purchased all the issued and outstanding share capital of GMRL. Saber also assumed all obligations under the office lease for the Moscow Studio. Under the TSA, Saber agreed to transition certain legacy titles from the Moscow Studio to the Company’s Hyderabad studio. Upon successful completion of the transition (i) Saber paid the employees of the Moscow Studio and GMRL bonus payments of $500 in the aggregate and reduced the cash consideration by the amount of the bonus, and (ii) certain employees of the Moscow studio and GMRL had the vesting of an aggregate of approximately 150 shares subject to equity awards accelerated. Pursuant to the APLA, Last Day Alive Heroes of Destiny Furiosa The total cash consideration under the SPA and APLA was $3,226 , of which $1,726 was received in January 2018. The remaining $1,500 , net of a transition bonus payment of $500 , was received in April 2018 upon completion of the transition of the legacy titles from the Moscow Studio to the Company’s Hyderabad studio. In connection with the divestiture, the Company recorded a loss of $6,459 in the year ended December 31, 2017, which is included in other expense on the consolidated statement of operations. This was primarily comprised of a $10,000 charge related to the assignment of one of the contracts related to the male celebrity, a $1,220 charge related to the write-off of goodwill associated with the Moscow studio and a $479 charge related to the write-off of net assets associated with the Moscow studio. These charges were partially offset by $3,226 in cash paid by Saber and MGL, $1,500 related to the assumption of obligations by MGL under the contract related to the male celebrity, and $514 related to the transition services provided by Saber. In connection with the activities related to the transition under the TSA, the Company recorded the following expenses in the year ended December 31, 2018: ● $500 related to bonuses that became due to the employees of the Moscow Studio and GMRL; ● $514 related to the vesting of 147 shares subject to equity awards held by certain employees of the Moscow Studio and GMRL; and ● $515 related to the amortization of transition services assets that were capitalized as part of the transaction consideration. The Company’s divestiture of the Moscow Studio was part of the Company’s efforts to consolidate its studio locations, focusing on a new scaled creative center in San Francisco and a low cost, repeatable location in Hyderabad, India. This divestiture was not presented in discontinued operations in the consolidated statement of operations, because it did not represent a strategic shift in the Company’s business and is not expected to have a significant effect on the Company’s operations or financial results, as the Company continued operating similar businesses after the divestiture. Dairy Free Games, Inc. On August 1, 2017 (the “Merger Date”), the Company completed the acquisition of Dairy Free Games, Inc. (“Dairy Free”) by acquiring 100% of its equity pursuant to an Agreement and Plan of Merger (the “Dairy Free Merger Agreement”) by and among the Company, Winterfell Acquisition Corp., a Delaware corporation and wholly owned subsidiary of the Company, and Dairy Free. Dairy Free, which was based in California, was building a mobile real-time strategy game. The Company acquired Dairy Free in order to expand its game offerings on smartphones and tablets. Pursuant to the terms of the Dairy Free Merger Agreement, the Company paid $2,000 in cash for the outstanding common stock of Dairy Free. The Company had previously acquired from Dairy Free shares of its series A preferred stock (“Series A Preferred Stock”), as further described below, for $2,000 . The fair value of the Series A Preferred Stock as of the Merger Date was determined to be equal to the original investment amount of $2,000 . The transaction was accounted for as a business combination under the acquisition method of accounting. The Company allocated the purchase price to the individually identifiable assets acquired and liabilities assumed based on their estimated fair values on the acquisition date. The excess of the purchase price over those fair values was recorded as goodwill. The determination of these fair values was based on estimates and assumptions requiring significant judgments. While the Company believes that its estimates and assumptions underlying the valuations are reasonable, different estimates and assumptions could result in different valuations assigned to the individual assets acquired and liabilities assumed, and the resulting amount of goodwill. The following table summarizes the fair values of assets acquired and liabilities assumed at the date of acquisition: Assets acquired: Cash and cash equivalents $ 341 Intangible assets: In-process research and development 2,700 Other current assets 32 Goodwill 573 Total assets 3,646 Liabilities assumed: Deferred tax liability (294) Other accrued liabilities (2) Total liabilities assumed (296) Net acquired assets $ 3,350 In-process research and development included in the table above was related to a game that Dairy Free was in process of developing as of the valuation date. During the year ended December 31, 2018, the Company decided not to proceed with further development of that game and recorded an impairment charge of $2,700 for the related in-process research and development in Impairment and amortization of intangible assets expense in its consolidated statements of operations. Pursuant to ASC 805, the Company incurred and expensed a total of $611 in acquisition and transitional costs associated with the acquisition of Dairy Free during the year ended December 31, 2017. These costs consisted of $269 of research and development expense and $342 of general and administrative expense. The Company allocated the residual value of $573 to goodwill. The goodwill recognized is attributable primarily to expected synergies and the assembled workforce of Dairy Free. Goodwill will not be amortized but will be tested for impairment at least annually. Goodwill created as a result of the Dairy Free acquisition is not deductible for tax purposes. Valuation Methodology The fair value of the in-process research and development acquired from Dairy Free was determined using the replacement cost method under the cost approach. The replacement cost was estimated based on the historical research and development expenses incurred, adjusted for an estimated developer’s profit and rate of return in accordance with accepted valuation methodologies. Pro Forma Financial Information The results of operations for Dairy Free and the estimated fair market values of the assets acquired and liabilities assumed have been included in the Company’s consolidated financial statements since the date of acquisition. For the year ended December 31, 2017 and since the date of its acquisition, Dairy Free had no impact on the Company’s gross revenue and increased the Company’s net losses by $1,081. The unaudited pro forma financial information below includes the business combination accounting effects of the acquisition, including amortization charges from acquired intangible assets. The pro forma financial information presented below is for informational purposes only, and is subject to a number of estimates, assumptions and other uncertainties. Year ended December 31, (unaudited) 2017 Total pro forma revenue $ 286,827 Pro forma net loss (98,450) Pro forma net loss per share - basic (0.73) Pro forma net loss per share - diluted (0.73) |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | NOTE 4 — FAIR VALUE MEASUREMENTS Level 1 Level 2 Level 3 December 31, 2019 Financial Assets Cash and cash equivalents $ 127,053 $ — $ — $ 127,053 Other investments — — 1,565 1,565 Total financial assets $ 127,053 $ — $ 1,565 $ 128,618 As of December 31, 2018, the Company’s financial assets and financial liabilities are presented below at fair value and were classified within the fair value hierarchy as follows: Level 1 Level 2 Level 3 December 31, 2018 Financial Assets Cash and cash equivalents $ 97,834 $ — $ — $ 97,834 Restricted cash 110 — — 110 Other investments — — 1,410 1,410 Total financial assets $ 97,944 $ — $ 1,410 $ 99,354 The Company’s cash and cash equivalents, which were held in operating bank accounts and money market funds, are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency. In addition, the Company’s restricted cash is classified within Level 1 of the fair value hierarchy. The carrying value of accounts receivable and payables approximates fair value due to the short time to expected payment or receipt of cash. The carrying value of other investments approximates fair value, as there have been no events or changes in circumstances that would have had a significant effect on the fair value of these investments at December 31, 2019. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2019 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 5 – REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregation of Revenue The following table summarizes revenue from contracts with customers for the year ended December 31, 2019: Year Ended December 31, 2019 2018 2017 In-App Purchases (over-time revenue recognition) $ 360,598 $ 316,157 $ 244,314 Advertisements and offers (point-in-time revenue recognition) 50,728 50,121 41,154 Other (point-in-time revenue recognition) 55 283 1,359 Total revenue $ 411,381 $ 366,561 $ 286,827 Contract Balances The following table provides information about receivables, contracts assets, and contract liabilities from contracts with customers: December 31, 2019 2018 Receivables, which are included in accounts receivable, net $ 29,304 $ 27,325 Contract liabilities, which are included in deferred revenue $ 97,629 $ 85,736 |
BALANCE SHEET COMPONENTS
BALANCE SHEET COMPONENTS | 12 Months Ended |
Dec. 31, 2019 | |
BALANCE SHEET COMPONENTS | |
BALANCE SHEET COMPONENTS | NOTE 6 — BALANCE SHEET COMPONENTS Accounts Receivable, Net December 31, 2019 2018 Accounts receivable $ 29,304 $ 27,325 Less: Allowance for doubtful accounts — — Accounts receivable, net $ 29,304 $ 27,325 Accounts receivable include amounts billed and unbilled as of the respective balance sheet dates, but net of platform commissions to the Company’s Digital Storefronts. Changes in the Company’s allowance for doubtful accounts were as follows: Balance at Balance at Beginning of End of Description Year Additions Release of Allowance Year Year ended December 31, 2019 $ - $ - $ - $ - Year ended December 31, 2018 $ 837 $ - $ (837) $ - Year ended December 31, 2017 $ 837 $ - $ - $ 837 The Company had no significant write-offs or recoveries during the years ended December 31, 2019, 2018, and 2017. Property and Equipment, Net December 31, 2019 2018 Computer equipment $ 9,079 $ 7,281 Furniture and fixtures 2,201 2,076 Software 3,612 3,394 Leasehold improvements 16,121 11,230 Total 31,013 23,981 Less: Accumulated depreciation and amortization (13,370) (10,093) Property and equipment, net $ 17,643 $ 13,888 Depreciation for the years ended December 31, 2019, 2018, and 2017 was $4,225, $3,855, and $3,195, respectively. |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2019 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | NOTE 7 – CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total of the same amounts shown in the statements of cash flows: Year Ended December 31, 2019 2018 2017 Cash and cash equivalents at beginning of period $ 97,834 $ 63,764 $ 102,102 Restricted cash at beginning of the period 110 602 1,312 Cash, cash equivalents and restricted cash at beginning of period $ 97,944 $ 64,366 $ 103,414 Cash and cash equivalents at end of period 127,053 97,834 63,764 Restricted cash at end of the period — 110 602 Cash, cash equivalents and restricted cash at end of period $ 127,053 $ 97,944 $ 64,366 The Company did not have restricted cash as of December 31, 2019. The Company’s restricted cash is included in current assets as of December 31, 2018, and 2017, respectively. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 8 — GOODWILL AND INTANGIBLE ASSETS Intangible Assets The Company’s intangible assets were acquired primarily in various acquisitions as well as in connection with the purchase of certain trademarks, brand assets and licensed content. The carrying amounts and accumulated amortization expense of the acquired intangible assets at December 31, 2019 and December 31, 2018 were as follows: December 31, 2019 December 31, 2018 Estimated Gross Accumulated Net Gross Accumulated Net Useful Carrying Amortization Carrying Carrying Amortization Carrying Life Value Expense Value Value Expense Value Intangible assets amortized to cost of revenue: Titles, content and technology 3 - 5 yrs $ 21,117 $ (16,359) $ 4,758 $ 21,117 $ (12,203) $ 8,914 Customer contracts and related relationships 5 yrs 700 (700) — 700 (648) 52 Trademarks 7 yrs 5,000 (5,000) — 5,000 (4,821) 179 $ 26,817 $ (22,059) $ 4,758 $ 26,817 $ (17,672) $ 9,145 Acquisition-related intangibles included in the above table are finite-lived and are being amortized on a straight-line basis over their estimated lives, which approximate the pattern in which the economic benefits of the intangible assets are realized. The Company has included amortization of acquired intangible assets directly attributable to revenue-generating activities in cost of revenue. During the year ended December 31, 2018, the Company decided not to proceed with further development of one of its games and recorded an impairment charge of $2,700 for the related in-process research and development in Impairment and amortization of intangible assets expense in its consolidated statement of operations. During the years ended December 31, 2019, 2018 and 2017, the Company recorded amortization and impairment expense in the amounts of As of December 31, 2019, the total expected future amortization related to intangible assets was as follows: Amortization to Be Included in Cost of Year Ending December 31, Revenue 2020 $ 3,258 2021 1,500 Total intangible assets $ 4,758 Goodwill The Company had $116,227 in goodwill as of December 31, 2019 and December 31, 2018, respectively. During the third quarters of fiscal 2019 and 2018, the Company performed a “Step 0” qualitative assessment for its reporting unit. Based on the assessment, the Company concluded that it was more likely than not that the fair value of the reporting unit was greater than its carrying amount, and as a result, did not proceed to further impairment testing. Accordingly, the Company did not recognize an impairment of goodwill during the years ended December 31, 2019 and December 31, 2018. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
LEASES | |
LEASES | NOTE 9 — LEASES The Company currently leases real estate space under non-cancelable operating lease agreements for its corporate headquarters in San Francisco, California and its operations in Toronto, Canada, Hyderabad, India, Foster City, California, and Burlingame, California. Additionally, the Company leases office space in Long Beach, California which it has sub-leased as it no longer has business operations in that location. These operating leases have remaining lease terms ranging from 3 months to 7.92 years, some of which include the option to extend the lease, with the longest extension option being 6 years . Certain of the Company’s lease agreements contain lease components (for example, fixed payments such as rent) and non-lease components such as common-area maintenance costs. Both of these types of provisions are accounted for as a single lease component. For such arrangements, there may be a variability in future lease payments as the amount of the non-lease components is typically revised from one period to the next. These variable lease payments, which are primarily comprised of common-area maintenance, utilities, and real estate taxes that are passed on from the lessor in proportion to the space leased by the Company within the entire building or building complex, are recognized in the period in which the obligation for those payments is incurred. The Company does not include any of its renewal options when calculating its lease liability as the Company is not reasonably certain whether it will exercise these renewal options at this time. The weighted-average remaining non-cancelable lease term for the Company’s operating leases was 7.55 years for the year ended December 31, 2019. The weighted-average discount rate was 6.7% for the year ended December 31, 2019. Rent expense for the year ended December 31, 2019, 2018, and 2017 was $5,311 , $5,759 , and $4,472 , respectively. Adoption of the lease standard had a material impact on the Company’s consolidated balance sheets. See the table below for the impact of adoption of the lease standard on the Company’s consolidated balance sheet as of January 1, 2019: As Previously Reported December 31, 2018 New Lease Standard Adjustment As Adjusted January 1, 2019 Operating lease right of use assets $ — 28,345 $ 28,345 Short-term operating lease liabilities — 3,732 3,732 Long-term operating lease liabilities — 30,197 30,197 Deferred rent payable* $ 5,284 (5,284) $ — * As of December 31, 2018, $122 and $5,162 of Deferred rent payable is included within the Accounts payable and Other long-term liabilities line items on the consolidated balance sheet, respectively. The future minimum lease payments to be paid under noncancelable leases in effect at December 31, 2019, are as follows: Operating Year Ending December 31, Leases 2020 4,587 2021 6,999 2022 6,927 2023 6,964 2024 and thereafter 27,667 Total lease payments $ 53,144 Less: imputed interest (12,265) Total $ 40,879 Supplemental information related to the Company’s leases for the year ended December 31, 2019 is as follows: Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,832 Year Ended December 31, 2019 Right of use assets obtained in exchange for new lease obligations: Operating leases $ 11,231 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
COMMITMENTS AND CONTINGENCIES | NOTE 10 — COMMITMENTS AND CONTINGENCIES Minimum Guaranteed Royalties and Developer Commitments The Company has entered into license and publishing agreements with various celebrities, athletes, sports and entertainment organizations, and other well-known brands and properties At December 31, 2019, future unpaid minimum guaranteed royalty commitments were as follows: Future Minimum Guarantee Commitments 2020 $ 11,540 2021 10,160 2022 6,150 2023 6,150 2024 6,150 $ 40,150 The amounts represented in the table above reflect the Company’s minimum cash obligations for the respective calendar years, but do not necessarily represent the periods in which they will be expensed in the Company’s consolidated financial statements. Licensor commitments include $40,150 of commitments due to licensors that have been recorded in current and long-term liabilities and a corresponding amount in current and long-term assets because payment is not contingent upon performance by the licensor. The classification of commitments between long-term and short-term is determined based on the timing of recoupment Income Taxes As of December 31, 2019, unrecognized tax benefits have been netted against deferred tax assets and potential interest and penalties are classified within “other long-term liabilities” on the Company’s consolidated balance sheets. Indemnification Arrangements The Company has entered into agreements under which it indemnifies each of its officers and directors during his or her lifetime for certain events or occurrences while the officer or director is or was serving at the Company’s request in that capacity. The maximum potential amount of future payments the Company could be required to make under these indemnification agreements is unlimited; however, the Company has a director and officer insurance policy that limits its exposure and enables the Company to recover a portion of any future amounts paid. In the ordinary course of its business, the Company includes standard indemnification provisions in most of its commercial agreements with Digital Storefronts and licensors. Pursuant to these provisions, the Company generally indemnifies these parties for losses suffered or incurred in connection with its games, including as a result of intellectual property infringement, viruses, worms and other malicious software, and legal or regulatory violations. The term of these indemnity provisions is generally perpetual after execution of the corresponding license agreement, and the maximum potential amount of future payments the Company could be required to make under these provisions is often unlimited. To date, the Company has not incurred costs to defend lawsuits or settle indemnified claims of these types. As a result, the Company believes the estimated fair value of these indemnity provisions is minimal. Contingencies From time to time, the Company is subject to various claims, complaints and legal actions in the normal course of business. The Company assesses its potential liability by analyzing specific litigation and regulatory matters using available information. The Company’s estimate of losses is developed in consultation with inside and outside counsel, which involves a subjective analysis of potential results and outcomes, assuming various combinations of appropriate litigation and settlement strategies. After taking all of the above factors into account, the Company determines whether an estimated loss from a contingency should be accrued by assessing whether a loss is deemed reasonably probable and the amount can be reasonably estimated. The Company further determines whether an estimated loss from a contingency should be disclosed by assessing whether a material loss is deemed reasonably possible. Such disclosure will include an estimate of the additional loss or range of loss or will state that an estimate cannot be made. On March 14, 2018, Jeffrey Tseng, the former Chief Executive Officer of Crowdstar, filed a complaint in the Superior Court of the State of California for the County of Santa Clara against Time Warner Inc., Rachel Lam, Intel Capital Corporation, Middlefield Ventures Inc. and Jose Blanc (collectively, the “Non-Glu Defendants”), the Company and additional yet-to-be-named defendants. The complaint alleged (i) breach of fiduciary duty by the Non-Glu Defendants, (ii) aiding and abetting breach of fiduciary duty by the Company and (iii) intentional interference with contract, intentional interference with prospective economic advantage, negligent interference with prospective economic advantage and unfair competition by each of the defendants, in each case relating to circumstances arising from the Company’s acquisition of Crowdstar and the events leading up to the acquisition. Mr. Tseng was seeking compensatory damages and exemplary damages, each in an amount to be determined at trial, along with costs of suit, reasonable attorneys’ fees and such other relief as the Court may deem proper. The Company and the Non-Glu Defendants filed demurrers in response to Mr. Tseng’s complaint on August 17, 2018, Mr. Tseng filed responses to these demurrers on September 17, 2018, and the Company and the Non-Glu Defendants filed reply briefs in support of their demurrers on October 15, 2018. A hearing with respect to the demurrers was held on November 30, 2018. On January 24, 2019, the judge issued an order sustaining the demurrers on all six claims and gave Mr. Tseng 10 days’ leave to amend his complaint. On March 4, 2019, the Company, the Non-Glu Defendants and Mr. Tseng entered into a settlement agreement pursuant to which Mr. Tseng, on one hand, and the Company and the Non-Glu Defendants, on the other hand, provided mutual releases of claims related to the subject matter of Mr. Tseng’s lawsuit and Mr. Tseng agreed to dismiss his lawsuit with prejudice. The Company did not pay any amounts to Mr. Tseng in settlement of this matter. Mr. Tseng dismissed his lawsuit with prejudice on March 6, 2019 and, accordingly, the Company considers this matter to be resolved. The Company does not believe it is party to any currently pending litigation, the outcome of which is reasonably possible to have a material adverse effect on its operations, financial position or liquidity. However, the ultimate outcome of any litigation is uncertain and, regardless of outcome, litigation can have an adverse impact on the Company because of defense costs, potential negative publicity, diversion of management resources and other factors. |
STOCKHOLDERS EQUITY
STOCKHOLDERS EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
STOCKHOLDERS EQUITY | |
STOCKHOLDERS EQUITY | NOTE 11 — STOCKHOLDERS’ EQUITY Common Stock At December 31, 2019, the Company was authorized to issue 250,000 shares of common stock. As of December 31, 2019, the Company had reserved 39,468 shares for future issuance under its stock plans and outstanding warrants. Preferred Stock At December 31, 2019, the Company was authorized to issue 5,000 shares of preferred stock. Warrants to Purchase Common Stock Celebrity Warrants During 2014 and 2015, the Company issued warrants to celebrity licensors, and entities affiliated with one of the celebrity licensors, to purchase up to an aggregate of 1,600 shares of the Company’s common stock, subject to adjustments for dividends, reorganizations and other common stock events (collectively, the “Celebrity Warrants”). With respect to Celebrity Warrants covering 1,000 shares, such warrants vested with respect to 50% of the underlying shares upon public announcement of the related license agreement, with the remaining shares vesting in equal monthly installments over 24 months from September 2017. With respect to warrants covering 500 shares issued in 2014, such warrants vested in equal monthly installments over 60 months term of the license agreement with the applicable celebrity, subject to full acceleration of vesting under specified circumstances, as stipulated in such license agreement. One of the acceleration conditions for these warrants was satisfied in April 2017 which resulted in full vesting of the remaining warrants. With respect to the remaining Celebrity Warrants covering 100 shares issued in 2015, such warrants vest in equal monthly installments over 60 months term of the license agreement with the applicable celebrity, subject to full acceleration of vesting under specified circumstances, as stipulated in such license agreement. The warrants were fully vested as one of the acceleration conditions for these warrants had been satisfied. As of December 31, 2019, Celebrity Warrants covering 1,600 shares of the Company’s common stock were outstanding. These warrants have a weighted average exercise price of $4.61 per share and an average contractual term of 5.44 years. During the years ended December 31, 2019, 2018 and 2017, the Company recorded $0, $1,046 and $569, respectively, of non-cash warrant related expense in cost of revenue as the mobile games featuring these celebrities licensors were not expected to generate meaningful revenue over their lifetime. The Company estimated the fair value of the warrants using the Black-Scholes valuation model and the weighted average assumptions noted in the following table: Year Ended December 31, 2019 2018 2017 Dividend yield — % — % — % Risk-free interest rate — % 2.53 % 1.65 % Expected volatility — % 56.73 % 51.81 % Expected term (in years) — 3.51 3.52 During the years ended December 31, 2019, and 2018, warrant holders did not |
STOCK OPTION AND OTHER BENEFIT
STOCK OPTION AND OTHER BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
STOCK OPTION AND OTHER BENEFIT PLANS | |
STOCK OPTION AND OTHER BENEFIT PLANS | NOTE 12 — STOCK OPTION AND OTHER BENEFIT PLANS 2007 Equity Incentive Plan In 2007, the Company’s Board of Directors adopted, and the Company’s stockholders approved, the 2007 Equity Incentive Plan (the “2007 Plan”). The 2007 Plan permits the Company to grant stock options, RSUs, PSUs, PSOs and other stock-based awards to employees, non-employee directors and consultants. In April 2017, the Company’s Board of Directors approved, and in June 2017, the Company’s stockholders approved, the Third Amended and Restated 2007 Equity Incentive Plan (the “Third Amended 2007 Plan”). The Third Amended 2007 Plan includes an increase of 8,000 shares in the aggregate number of shares of common stock authorized for issuance under the plan. It also includes (i) a minimum vesting requirement, pursuant to which each share that is subject to a stock-based award may not vest prior to the first anniversary of the date of grant of such stock-based award (subject to a carve-out of 5% of the shares reserved for issuance under the plan) and (ii) a limitation on the value of stock-based awards that may be granted to any non-employee director in any calendar year. In April 2018, the Company’s Board of Directors approved, and in June 2018, the Company’s stockholders approved, the Fourth Amended and Restated 2007 Equity Incentive Plan (the “Fourth Amended 2007 Plan”). The Fourth Amended 2007 Plan includes an increase of 10,000 shares in the aggregate number of shares of common stock authorized for issuance under the plan. It also removed the limitation on the number of shares that can be issued in any calendar year to a participant. In April 2019, the Company’s Board of Directors approved, and in June 2019, the Company’s stockholders approved, the fifth Amended and Restated 2007 Equity Incentive Plan (the “Fifth Amended 2007 Plan”). The Fifth Amended 2007 Plan includes an increase of 4,600 shares in the aggregate number of shares of common stock authorized for issuance under the plan. The Company may grant options under the 2007 Plan at prices no less than 85% of the estimated fair value of the shares on the date of grant as determined by its Board of Directors, provided, however, that (i) the exercise price of an incentive stock option (“ISO”) or non-qualified stock options (“NSO”) may not be less than 100% or 85%, respectively, of the estimated fair value of the underlying shares of common stock on the grant date, and (ii) the exercise price of an ISO or NSO granted to a 10% stockholder may not be less than 110% of the estimated fair value of the shares on the grant date. The fair value of the Company’s common stock is determined by the last sale price of such stock on the Nasdaq Global Select Market on the date of determination. The stock options granted to employees generally vest with respect to 25% of the underlying shares one year from the vesting commencement date and with respect to an additional 1/48 As of December 31, 2019, 2,686 shares were available for future grants under the Fifth Amended 2007 Plan. Performance-based equity awards In 2017, the Company revised its executive compensation program to emphasize a pay-for-performance culture eliminating annual cash bonus plans for the Company’s C-suite executives and corporate vice presidents and eliminating In 2018, the Company determined to continue to emphasize a pay-for-performance culture by (1) eliminating cash bonuses for C-Suite members for 2019 and replacing their cash bonus opportunity with PSOs and replacing their cash bonus opportunity with PSUs; (2) having a significant portion of C-Suite members’ annual equity award be comprised of PSOs in addition to standard time vesting stock options; (3) having a significant portion of annual equity award be comprised of PSUs in addition to standard time vesting stock options; and (4) having each creative leader’s annual equity award be comprised solely of PSUs. In 2019, the Company again determined to continue to emphasize a pay-for-performance culture by (1) eliminating cash bonuses for C-Suite members and certain other executives for 2020 and replacing their cash bonus opportunity with PSUs and (2) having a significant portion of each executive’s annual equity award be comprised of PSUs in addition to standard time vesting RSUs. In addition to the performance-based equity awards described above, the Company also awarded PSUs in 2019 to certain key non-executive employees in the Company. These performance-based awards are subject to the achievement of specified annual performance goals. They become eligible to vest only if the applicable performance goals are achieved and will vest only if the grantee remains employed with the Company through each applicable vesting date. The fair value of these awards is estimated on the date of grant. If the performance goals are not met as of the end of the performance period, no compensation expense is recognized and any previously recognized expense is reversed. The expected cost is based on the awards that are probable to vest and is recognized over the service period. The performance-based awards issued in lieu of cash bonuses in 2017, 2018 and 2019 will vest, if the applicable performance goals are achieved, on February 15, 2019, February 15, 2020 and February 15, 2021, respectively. The performance-based awards issued as part of annual equity awards in 2017, 2018 and 2019 will vest, if the applicable performance goals are achieved, ratably in three annual tranches starting from February 15, 2019 and February 15, 2020 and February 15, 2021 respectively. The number of shares that may vest under these programs ranges from 0% to 200% of the target amounts and will be determined based on the achievement of specified annual performance goals. The PSUs awarded to certain key non-executive employees in 2019 will vest in June 2020 and December 2020 based on the achievement of specified annual performance goals. The awards under these programs were granted under the 2007 Plan. 2007 Employee Stock Purchase Plan In 2007, the Company’s Board of Directors adopted and the Company’s stockholders approved, the 2007 Employee Stock Purchase Plan (the “2007 Purchase Plan”). The Company initially reserved 667 shares of its common stock for issuance under the 2007 Purchase Plan. On each January 1 for the first eight calendar years after the first offering date, the aggregate number of shares of the Company’s common stock reserved for issuance under the 2007 Purchase Plan was increased automatically by the number of shares equal to 1% of the total number of outstanding shares of the Company’s common stock on the immediately preceding December 31, provided that the Board of Directors had the power to reduce the amount of the increase in any particular year and provided further that the aggregate number of shares issued over the term of this plan may not exceed 5,333. The 2007 Purchase Plan permits eligible employees, including employees of certain of the Company’s subsidiaries, to purchase common stock at a discount through payroll deductions during defined offering periods. The price at which the stock is purchased is equal to the lower of 85% of the fair market value of the common stock at the beginning of an offering period or after a purchase period ends. In January 2009, the 2007 Purchase Plan was amended to provide that the Compensation Committee of the Company’s Board of Directors may fix a maximum number of shares that may be purchased in the aggregate by all participants during any single offering period (the “Maximum Offering Period Share Amount”). The Compensation Committee may raise or lower the Maximum Offering Period Share Amount. The Compensation Committee established the Maximum Offering Period Share Amount of 500 shares for the offering period that commenced on February 15, 2009 and ended on August 14, 2009, and a Maximum Offering Period Share Amount of 200 shares for each offering period thereafter. In February 2016, the Committee increased the Maximum Offering Period Share Amount for the offering period that started on February 22, 2016 and for each subsequent offering period to 450 shares. In April 2017, the Company’s Board of Directors approved, and in June 2017, the Company’s stockholders approved the Amended and Restated 2007 Employee Stock Purchase Plan (the “Amended 2007 Purchase Plan”). The Amended 2007 Purchase Plan includes an increase of 4,000 shares in the aggregate number of shares of common stock authorized for issuance under the plan and removal of the expiration date of the plan. As of December 31, 2019, 2,787 shares were available for issuance under the 2007 Purchase Plan. 2018 Equity Inducement Plan In April 2018, the Compensation Committee of the Company’s Board of Directors adopted the 2018 Equity Inducement Plan (the “2018 Plan”) to replace the Inducement Plan. The Company did not seek stockholder approval for the 2018 Plan. As such, awards under the Inducement Plan will be granted in accordance with Nasdaq Listing Rule 5635(c)(4) and only to persons not previously an employee or director of the Company, or following a bona fide period of non-employment, as an inducement material to such individuals entering into employment with the Company. The Company may grant NSOs under the Inducement Plan at prices less than 100% of the fair value of the shares on the date of grant, at the discretion of its Board of Directors. The fair value of the Company’s common stock is determined by the last sale price of such stock on the Nasdaq Global Select Market on the date of determination. The Company initially reserved 400 shares of common stock for issuance under the 2018 Plan. As of December 31, 2019, 156 shares were reserved for future grants under the 2018 Inducement Plan. RSU Activity A summary of the Company’s RSU activity is as follows: Weighted Weighted Number of Average Average Remaining Aggregate Units Grant Date Contractual Intrinsic Outstanding Fair Value Term (Years) Value Awarded and unvested, December 31, 2016 8,224 $ 3.33 Granted 2,360 $ 2.31 Vested (2,863) $ 3.45 Forfeited (1,909) $ 3.01 Awarded and unvested, December 31, 2017 5,812 $ 2.96 Granted 278 $ 5.90 Vested (2,648) $ 3.24 Forfeited (421) $ 2.71 Awarded and unvested, December 31, 2018 3,021 $ 3.01 Granted 2,936 $ 6.84 Vested (1,688) $ 3.27 Forfeited (318) $ 4.17 Awarded and unvested, December 31, 2019 3,951 $ 5.66 1.51 $ 23,905 PSU Activity The following table summarizes the Company’s PSU activity: Weighted Weighted Number of Average Average Remaining Aggregate Units Grant Date Contractual Intrinsic Outstanding Fair Value Term (Years) Value Awarded and unvested, December 31, 2016 - $ - Granted 661 $ 3.59 Awarded and unvested, December 31, 2017 661 $ 3.59 Granted 2,909 $ 5.85 Forfeited (40) $ 4.03 Awarded and unvested, December 31, 2018 3,530 $ 5.45 Granted 2,780 $ 6.46 Vested (700) $ 4.59 Forfeited (193) $ 6.14 Awarded and unvested, December 31, 2019 5,417 $ 6.06 1.32 $ 32,769 PSUs expected to vest at December 31, 2019 276 $ 3.61 0.13 $ 1,667 PSO Activity The following table summarizes the Company’s PSO activity: Weighted Weighted Number of Average Average Remaining Aggregate Shares Exercise Contractual Intrinsic Outstanding Price Term (Years) Value Balance as of December 31, 2016 - $ - Granted 4,246 $ 3.60 Forfeited (76) $ 3.97 Balance as of December 31, 2017 4,170 $ 3.59 Granted 2,737 $ 5.87 Forfeited (151) $ 3.59 Balance as of December 31, 2018 6,756 $ 4.51 Exercised (173) $ 3.59 Balance as of December 31, 2019 6,583 $ 4.54 8.15 $ 10,765 PSOs expected to vest at December 31, 2019 409 $ 3.60 7.85 $ 1,002 PSO exercisable at December 31, 2019 3,339 $ 3.60 7.80 $ 8,188 Stock Option Activity The following table summarizes the Company’s stock option activity: Options Outstanding Weighted Weighted Number Average Average Remaining Aggregate of Exercise Contractual Intrinsic Shares Price Term (Years) Value Balances at December 31, 2016 15,813 $ 2.74 Options granted 5,346 $ 3.10 Options canceled (2,716) $ 3.16 Options exercised (1,511) $ 2.73 Balances at December 31, 2017 16,932 $ 2.78 Options granted 6,092 $ 4.82 Options canceled (1,213) $ 3.54 Options exercised (3,320) $ 2.88 Balances at December 31, 2018 18,491 $ 3.39 Options granted 815 $ 7.58 Options canceled (1,219) $ 4.73 Options exercised (1,799) $ 2.81 Balances at December 31, 2019 16,288 $ 3.56 7.08 $ 42,165 Options exercisable at December 31, 2019 9,846 $ 3.21 6.67 $ 28,331 The Company has computed the aggregate intrinsic value amounts disclosed in the above table based on the difference between the original exercise price of the options and the fair value of the Company’s common stock of $6.05 per share at December 31, 2019. The total intrinsic value of awards exercised during the years ended December 31, 2019, 2018 and 2017 was $7,806, $10,957, and $1,732, respectively. Stock-Based Compensation The Company recognizes stock-based compensation expense in accordance with ASC 718, and has estimated the fair value of each option award on the grant date using the Black-Scholes option valuation model and the weighted average assumptions noted in the following tables. Performance Stock Options Year Ended December 31, 2019 2018 2017 Dividend yield — % — % — % Risk-free interest rate — % 2.89 % 2.07 % Expected volatility — % 60.2 % 63.3 % Expected term (years) — 5.98 5.81 Stock Options Year Ended December 31, 2019 2018 2017 Dividend yield — % — % — % Risk-free interest rate 1.88 % 2.63 % 1.76 % Expected volatility 57.2 % 57.9 % 57.8 % Expected term (years) 4.00 4.00 4.00 The expected term of stock options gave consideration to early exercises, post-vesting cancellations and the options’ contractual term ranging from 6 to 10 years. The Company does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term for the PSOs as the Company has not granted such awards in the past. As a result, the Company used the simplified method to calculate the expected term estimate based on the vesting and contractual terms of the PSOs. Under the simplified method, the expected term is equal to the average of the stock-based awards vesting period and their contractual term. The PSOs have a contractual term of 10 years. The risk-free interest rate for the expected term of the option is based on the U.S. Treasury Constant Maturity Rate as of the date of grant. The Company based its expected volatility on its own historical volatility for the year ended December 31, 2019, 2018, and 2017, respectively. The weighted-average fair value of stock options granted during the year ended December 31, 2019, 2018 and 2017 was $3.44, $2.25 and $1.42 per share, respectively. The Company did not grant any The cost of RSUs and PSUs are determined using the fair value of the Company’s common stock based on the quoted closing price of the Company’s common stock on the date of grant. RSUs typically vest and are settled over approximately a four-year period with 25% of the shares vesting on or around the one-year anniversary of the grant date and the remaining shares vesting quarterly thereafter. Compensation cost for RSUs is amortized on a straight-line basis over the requisite service period. Compensation cost for PSUs is amortized on an accelerated attribution basis over the requisite service period of the award. The following table summarizes the consolidated stock-based compensation expense by line items in the consolidated statement of operations: Year Ended December 31, 2019 2018 2017 Research and development $ 10,466 $ 12,807 $ 6,460 Sales and marketing 1,700 2,795 1,289 General and administrative 5,217 8,990 7,314 Total stock-based compensation expense $ 17,383 $ 24,592 $ 15,063 The following table summarizes total compensation expense related to unvested awards not yet recognized as of December 31, 2019: Unrecognized Compensation Expense for Unvested Awards Stock options $ 11,214 RSUs 19,947 PSUs (1) 7,609 PSOs (1) 99 Total unrecognized compensation expense $ 38,869 (1) The unrecognized compensation expense for PSOs and PSUs vesting in FY2022 and FY2023 is not included in the table above as the Company does not have a reasonable basis upon which to estimate the vesting probability of such awards in those future periods. The unrecognized compensation expense related to stock options and RSUs will be recognized over a weighted average period of 1.80 years and 1.51 years, respectively. The unrecognized stock compensation expense related to unvested PSUs and PSOs will be recognized over a weighted average period of 0.95 and 0.13 years, respectively. Stock-based compensation expense in the year ended December 31, 2019, was approximately $17,383 (comprising approximately $7,043 related to stock options, $2,421 related to performance-based awards, $6,559 related to RSUs and $1,360 related to the 2007 Purchase Plan). Stock-based compensation expense in the year ended December 31, 2018, was approximately $24,592 (comprising approximately $6,386 related to stock options, $9,195 related to performance-based awards, $8,084 related to RSUs and $927 related to the 2007 Purchase Plan). Stock-based compensation expense in the year ended December 31, 2017, was approximately $15,063 (comprising approximately $3,585 related to stock options, $790 related to performance-based awards, $10,127 related to RSUs and $561 related to the 2007 Purchase Plan). Cash proceeds, net of taxes, from option exercises were $3,305, $5,643 and $2,564 for the years ended December 31, 2019, 2018 and 2017, respectively. The Company realized no significant income tax benefit from stock option exercises during the year ended December 31, 2019, 2018 and 2017. As permitted by ASC 718, the Company has deferred the recognition of its excess tax benefit from non-qualified stock option exercises. 401(k) Defined Contribution Plan The Company sponsors a 401(k) defined contribution plan covering certain eligible employees. In 2019, the Company started matching a portion of the contribution made by participants who met certain employment criteria. The matching contributions made by the Company to date were not material not |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
INCOME TAXES | NOTE 13 — INCOME TAXES The components of income (loss) before income taxes by tax jurisdiction were as follows: Year Ended December 31, 2019 2018 2017 United States $ 7,047 $ (12,396) $ (97,503) Foreign 2,295 (254) (893) Income (loss) before income taxes $ 9,342 $ (12,650) $ (98,396) The components of income tax benefit/(provision) were as follows: Year Ended December 31, Current: 2019 2018 2017 Federal $ 373 $ (96) $ 947 State (10) (8) (10) Foreign (590) (500) (521) (227) (604) 416 Deferred: Federal — — 294 Foreign (244) 55 116 (244) 55 410 Total: Federal 373 (96) 1,241 State (10) (8) (10) Foreign (834) (445) (405) $ (471) $ (549) $ 826 The difference between the actual rate and the federal statutory rate was as follows: Year Ended December 31, 2019 2018 2017 Tax at federal statutory rate 21.0 % 21.0 % 34.0 % Meals and entertainment 3.1 (2.0) (0.1) Research and development credit (41.0) 21.3 2.5 Stock-based compensation (29.0) 17.9 (2.0) Revenue from contracts with customers — (14.6) — Others (0.6) (3.1) 0.6 Global intangible low-taxed income 4.2 (1.7) — Valuation allowance 17.5 (35.3) (33.8) Executive compensation 6.1 — — Foreign tax credit 23.7 (7.8) (0.4) Effective tax rate 5.0 % (4.3) % 0.8 % Deferred tax assets and liabilities consist of the following: December 31, 2019 December 31, 2018 US Foreign Total US Foreign Total Deferred tax assets: Fixed assets $ 209 $ 71 $ 280 $ — $ 35 $ 35 Net operating loss carryforwards 48,968 25 48,993 50,119 97 50,216 Accruals, reserves and other 5,202 134 5,336 10,853 172 11,025 Foreign tax credit 2,905 — 2,905 5,118 128 5,246 Stock-based compensation 5,882 — 5,882 4,787 — 4,787 Research and development credit 22,630 — 22,630 17,945 — 17,945 Capitalized research and development 7,189 — 7,189 2,835 — 2,835 Intangible assets 355 — 355 — — — Other 2,951 — 2,951 2,888 — 2,888 Total deferred tax assets $ 96,291 $ 230 $ 96,521 $ 94,545 $ 432 $ 94,977 Deferred tax liabilities: Fixed assets $ — $ (40) $ (40) $ (54) $ (19) $ (73) Intangible assets — — — (513) — (513) Net deferred tax assets 96,291 190 96,481 93,978 413 94,391 Less valuation allowance (96,291) (25) (96,316) (93,978) (4) (93,982) Net deferred tax assets $ — $ 165 $ 165 $ — $ 409 $ 409 The Company has not provided deferred taxes on unremitted earnings attributable to foreign subsidiaries, because their earnings are intended to be reinvested indefinitely. No deferred tax asset was recognized, except for India and Canada, since the Company does not believe the deferred tax asset will be realized in the foreseeable future. The amount of accumulated foreign earnings of the Company’s foreign subsidiaries totaled $2,953 as of December 31, 2019. If the Company's foreign earnings were repatriated, additional tax expense might result. The Company determined that the calculation of the amount of unrecognized deferred tax liability related to these cumulative unremitted earnings attributable to foreign subsidiaries is not practicable. The Company recorded a release of its valuation allowance of $0, $0, and $294 during 2019, 2018, and 2017, respectively. The 2017 release was associated with the acquisitions of Dairy Free in August 2017. Pursuant to ASC 805-740, changes in the Company’s valuation allowance that stem from a business combination should be recognized as an element of the Company’s deferred income tax expense or benefit. The Company previously recognized a valuation allowance against its net operating loss carryforwards and determined that it should be able to utilize the benefit of those net operating losses against the deferred tax liabilities of Dairy Free; therefore, it has partially released its pre-existing valuation allowance. In accordance with ASC 740 and based on all available evidence on a jurisdictional basis, the Company believes that it is more likely than not that its deferred tax assets will not be utilized and has recorded a full valuation allowance against its net deferred tax assets in each of its jurisdictions except for entities in Canada and India. The Company assesses on a periodic basis the likelihood that it will be able to recover its deferred tax assets. The Company considers all available evidence, both positive and negative, including historical levels of income or losses, expectations and risks associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for the valuation allowance. If it is not more likely than not that the Company expects to recover its deferred tax assets, the Company will increase its provision for taxes by recording a valuation allowance against the deferred tax assets that it estimates will not ultimately be recoverable. The available negative evidence at December 31, 2019 and 2018 included historical and projected future operating losses. As a result, the Company concluded that an additional valuation allowance of $2,334 and $4,471 was required to reflect the change in its deferred tax assets prior to valuation allowance during 2019 and 2018, respectively. As of December 31, 2019 and 2018, the Company considered it more likely than not that its deferred tax assets would not be realized within their respective carryforward periods. At December 31, 2019, the Company had net operating loss carryforwards of approximately $211,330 and $91,722 for federal and state tax purposes, respectively. If not utilized, these carryforwards will expire at various times between 2023 and 2037. In addition, the Company has research and development tax credit carryforwards of approximately of foreign tax credits that will begin to expire in 2020. The Company’s ability to use its net operating loss carryforwards and federal and state tax credit carryforwards to offset future taxable income and future taxes, respectively, may be subject to restrictions attributable to equity transactions that result in changes in ownership as defined by Internal Revenue Code Section 382. A reconciliation of the total amounts of unrecognized tax benefits was as follows: Year Ended December 31, 2019 2018 Beginning balance $ 20,718 $ 13,391 Reductions of tax positions taken during previous years (8,226) (59) Additions based on uncertain tax positions related to the current period 2,598 3,996 Additions based on uncertain tax positions related to prior periods — 3,400 Cumulative translation adjustment (6) (10) Ending balance $ 15,084 $ 20,718 The total unrecognized tax benefits as of December 31, 2019 and 2018 included approximately $15,084 and $20,548, respectively, of unrecognized tax benefits that have been netted against deferred tax assets. As of December 31, 2019, the Company does not expect the unrecognized tax benefits, if recognized, to have a material impact on its financial statements. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits in income tax expense. The Company has accrued $0 of interest and penalties on uncertain tax positions as of December 31, 2019, as compared to $150 as of December 31, 2018. Approximately $23, $27, and $96 of accrued interest and penalty expense related to estimated obligations for unrecognized tax benefits was recognized during 2019, 2018 and 2017, respectively. The Company is subject to taxation in the United States and various foreign jurisdictions. The material jurisdictions subject to examination by tax authorities are primarily the State of California, the United States, Canada and India. The Company’s federal tax returns are open by statute for tax years 1998 and California tax returns are open by statute for tax years 2003 and forward and could be subject to examination by the tax authorities. The Tax Cuts and Jobs Act (“The Act”) enacted on December 22, 2017 subjects a U.S. shareholder to tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense. The Company has elected to account for GILTI as a period cost in the year the tax is incurred. Prior to the enactment of The Act, the Company had asserted indefinite reinvestment on all of its undistributed earnings from foreign subsidiaries. As a result of the enactment of The Act, the Company has reevaluated its historic assertion and continue to assert these earnings to be indefinitely reinvested. Based on its review of The Act, the Company expects that this legislation will not have a material impact on its future operational results as long as the Company maintains a full valuation allowance. It is the Company’s policy to record valuation allowances when necessary to reduce deferred tax assets to the amount that it expects to realize. Currently, the Company maintains a full valuation allowance for its deferred tax assets in the U.S. and Hong Kong. |
SEGMENT INFORMATION AND OPERATI
SEGMENT INFORMATION AND OPERATIONS BY GEOGRAPHIC AREA | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENT INFORMATION AND OPERATIONS BY GEOGRAPHIC AREA | |
SEGMENT INFORMATION AND OPERATIONS BY GEOGRAPHIC AREA | NOTE 14 — SEGMENT INFORMATION AND OPERATIONS BY GEOGRAPHIC AREA ASC Segment Reporting The following tables set forth revenue and long-lived assets based on geography: Revenue Revenue by geography is primarily based on the geographic location of the Company’s payers. International revenue is revenue generated from distributors and advertising service providers whose principal operations are located outside the United States or, in the case of the Digital Storefronts, the revenue generated from end-user purchases made outside of the United States. Year Ended December 31, 2019 2018 2017 United States of America $ 320,343 $ 280,264 $ 216,468 Americas, excluding the United States 25,240 21,903 15,976 EMEA 45,700 41,585 33,180 APAC 20,098 22,809 21,203 Total revenue $ 411,381 $ 366,561 $ 286,827 Long-Lived Assets The Company attributes its long-lived assets, which primarily consist of property and equipment, to a country primarily based on the physical location of the assets. Property and equipment, net of accumulated depreciation and amortization, summarized by geographic location was as follows: December 31, 2019 2018 United States of America $ 16,738 $ 12,653 Rest of the World 905 1,235 Total $ 17,643 $ 13,888 |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended |
Dec. 31, 2019 | |
RESTRUCTURING. | |
RESTRUCTURING | NOTE 15 — RESTRUCTURING During the year ended December 31, 2017, the Company recorded $6,019 of restructuring charge related to employee and lease termination costs in the Company’s Bellevue, Washington; Long Beach, California; San Francisco, California; Portland, Oregon; and Beijing, China offices. During the year ended December 31, 2018, the Company recorded $240 of restructuring charges related to employee and lease termination costs in the Company’s Long Beach, California office. No restructuring charges related to employee and lease termination costs were recorded during the year ended December 31, 2019. Restructuring Restructuring Restructuring Workforce Facility Total Balance as of December 31, 2016 $ - $ 271 $ 271 Charges to operations 4,319 1,700 6,019 Non-cash charges/adjustments 146 44 190 Charges settled in cash (4,322) (1,399) (5,721) Balance as of December 31, 2017 $ 143 $ 616 $ 759 Charges to operations 160 80 240 Charges settled in cash (303) (402) (705) Balance as of December 31, 2018 $ - $ 294 $ 294 Non-cash adjustments (1) - (294) (294) Balance as of December 31, 2019 $ - $ - $ - (1) Reflects reclassification of restructuring accrual to operating lease right of use assets . |
QUARTERLY FINANCIAL DATA (unaud
QUARTERLY FINANCIAL DATA (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
QUARTERLY FINANCIAL DATA (unaudited) | |
QUARTERLY FINANCIAL DATA (unaudited) | NOTE 16 – QUARTERLY FINANCIAL DATA (unaudited) The following table sets forth unaudited quarterly consolidated statements of operations data for 2019 and 2018. The Company derived this information from its unaudited consolidated financial statements, which it prepared on the same basis as its audited consolidated financial statements contained in this report. These unaudited statements include all adjustments, consisting only of normal recurring adjustments that the Company considers necessary for a fair statement of that information for the periods presented. For the Three Months Ended 2019 2018 March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, Revenue $ 95,885 $ 95,540 $ 107,077 $ 112,879 $ 81,443 $ 90,193 $ 99,285 $ 95,640 Cost of revenue: Platform commissions, royalties and other 32,813 32,806 36,758 38,278 29,167 32,386 34,384 32,508 Impairment of prepaid royalties and minimum guarantees 457 (b) — — — 99 (b) — — 612 Impairment and amortization of intangible assets 1,252 1,056 1,040 1,039 1,467 1,468 4,167 2,017 Total cost of revenue 34,522 33,862 37,798 39,317 30,733 33,854 38,551 35,137 Gross profit 61,363 61,678 69,279 73,562 50,710 56,339 60,734 60,503 Operating expenses: Research and development 26,546 19,736 22,968 25,877 22,710 22,832 23,839 25,553 Sales and marketing 28,105 35,040 46,140 31,013 26,810 29,741 28,874 28,435 General and administrative 6,635 4,951 5,879 5,751 7,890 7,608 8,095 8,074 Restructuring charge — — — — 80 (a) — 160 (a) — Total operating expenses 61,286 59,727 74,987 62,641 57,490 60,181 60,968 62,062 Income/(loss) from operations 77 1,951 (5,708) 10,921 (6,780) (3,842) (234) (1,559) Interest and other income/(expense), net 764 556 271 510 (251) (366) 96 286 Income/(loss) before income taxes 841 2,507 (5,437) 11,431 (7,031) (4,208) (138) (1,273) Income tax (provision)/benefit (178) — 348 (641) (175) (207) (118) (49) Net income/(loss) $ 663 $ 2,507 $ (5,089) $ 10,790 $ (7,206) $ (4,415) $ (256) $ (1,322) Net income/(loss) per share Basic $ 0.00 $ 0.02 $ (0.03) $ 0.07 $ (0.05) $ (0.03) $ (0.00) $ (0.01) Diluted $ 0.00 $ 0.02 $ (0.03) $ 0.07 $ (0.05) $ (0.03) $ (0.00) $ (0.01) (a) Includes restructuring charges relating to employee termination costs in the Company’s Long Beach office. (b) These charges are related to impairment of prepaid guaranteed royalties for certain celebrity license agreements, and certain other prepaid royalties. |
THE COMPANY AND SUMMARY OF SI_2
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation The Company's consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated on consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company’s management to make judgments, assumptions and estimates that affect the amounts reported in its consolidated financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Estimates and assumptions reflected in the financial statements include, but are not limited to, estimation of the average playing period of paying users associated with durable virtual items, the allowance for doubtful accounts, useful lives of property and equipment and intangible assets, valuation and realizability of deferred tax assets and uncertain tax positions, fair value of stock awards issued, fair value of warrants issued, accounting for business combinations, evaluating goodwill, long-lived assets for impairment, and realization of prepaid royalties and fair value of investments. Actual results may differ from these estimates and these differences may be material. |
Revenue Recognition | Revenue Recognition The Company generates revenue through in-application purchases (“in-app purchases”) within its games on smartphones and tablet devices, such as Apple’s iPhone and iPad, and mobile devices utilizing Google’s Android operating system. Users can download the Company’s free-to-play games The Company adopted Accounting Standard Codification Topic 606, Revenue with Contracts with Customers (“ASC 606”) and its related amendments effective January 1, 2018 using a modified retrospective method. The reported results for the year ended December 31, 2018 reflect the application of ASC 606 guidance while the reported results for the year ended December 31, 2017 were prepared under the guidance of Accounting Standard Codification 605 (“ASC 605”), Revenue Recognition (ASC 605), which is also referred to herein as "legacy GAAP" or the "previous guidance". The adoption of ASC 606 represents a change in accounting principle that will more closely align revenue recognition with the delivery of the Company's services and will provide financial statement readers with enhanced disclosures. In accordance with ASC 606, revenue is recognized when or as a customer obtains control of promised services. The amount of revenue recognized reflects the consideration which the Company expects to receive in exchange for these services. A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party’s rights regarding the services to be transferred and identifies the payment terms related to these services, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for services that are transferred is probable based on the customer’s intent and ability to pay the promised consideration. The Company applies judgment in determining the customer’s ability and intention to pay, which is based on a variety of factors including the customer’s historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer. ASC 606 requires an entity to disclose the revenue recognized in the reporting period from performance obligations satisfied (or partially satisfied) in previous periods (for example, due to changes in transaction price). Revenue recognized relating to performance obligations satisfied in prior periods was $0 for the year ended December 31, 2019 and December 31, 2018, respectively. The Company elects to use the practical expedient under 606-10-50-14 which states an entity need not disclose the information in paragraph 606-10-50-13 for a performance obligation if the following criteria are met: 1. the performance obligation is part of a contract that has an original expected duration of one year or less; and 2. the entity recognizes revenue from the satisfaction of the performance obligation in accordance with paragraph 606-10-55-18 (right to invoice). Since all of the Company’s contracts have an original expected duration of one year or less, the Company elects to use this practical expedient and does not disclose the aggregate transaction price allocated to unsatisfied or partially satisfied performance obligations. In-App Purchases Users can download the Company’s free-to-play games within the Digital Storefronts and pay to acquire virtual currency, which can be redeemed in the game for virtual goods, or virtual goods directly (together, defined as “virtual items”) to enhance their game-playing experience. The Company sells both consumable and durable virtual items and receives reports from the Digital Storefronts, which breakdown the various purchases made from the Company’s games over a given time period. The Company reviews these reports and determines on a per-item basis whether the purchase was a consumable virtual item or a durable virtual item. Consumable virtual items are items that are consumed at a predetermined time or otherwise have limitations on repeated use. Durable virtual items are items, such as furniture, clothes, etc. that are accessible to the player over an extended period of time and that remain in the game for as long as the player continues to play. The initial download of the mobile game from the Digital Storefront does not create a contract under ASC 606 because of the lack of commercial substance; however, the separate election by the player to make an in-application purchase satisfies the criterion thus creating a contract under ASC 606. The Company has identified the following performance obligations in these contracts: 1. Ongoing game related services such as hosting of game play, storage of customer content, when and if available content updates, maintaining the virtual currency management engine, tracking gameplay statistics, matchmaking as it relates to multiple player gameplay, etc. 2. Obligation to the paying player to continue displaying and providing access to the virtual items within the game. Neither of these obligations are considered distinct since the actual mobile game and the related ongoing services are both required to purchase and benefit from the related virtual items. As such, the Company’s performance obligations represent a single combined performance obligation which is to make the game and the ongoing game related services available to the players. The transaction price, which is the amount paid for the virtual items by the player, is allocated entirely to the single combined performance obligation. The Company recognizes revenue for durable virtual items over the estimated average playing period of paying users on a per title basis. The Company’s revenue from consumable virtual items has been insignificant over the previous three years. The Company has estimated the useful life of a paying user between four Advertisements and Offers The Company has relationships with certain advertising service providers for advertisements within its mobile games. Revenue from these advertising service providers is generated through impressions, clickthroughs, offers and banner ads. Offers are the type of advertisements where the players are rewarded with virtual currency for completing specified actions, such as downloading another application, watching a short video, subscribing to a service or completing a survey. The Company has determined the advertising buyer to be its customer and displaying the advertisements within the mobile games is identified as the single performance obligation. Revenue from advertisements and offers are recognized at the point-in-time the advertisements are displayed in the game or the offer has been completed by the user as the customer simultaneously receives and consumes the benefits provided from these services. Other Estimates and Judgments The Company computes its estimated average playing period of paying users at least twice each year. It has examined the playing patterns of paying users across a representative sample of its games across various genres. The Company uses the “survival analysis” model to estimate the average playing period for paying users. This model provides for a singular approach to estimating the average playing period of paying users on a title by title basis for the Company’s diverse portfolio of games. It is a statistical model that analyzes time duration until one or more events happens and is commonly used in various industries for estimating lifespans. The Company believes this is an appropriate model to estimate the average playing period of paying users for its titles as this model statistically estimates the average playing period of each title by analyzing the historical behavior patterns of paying users. This model requires the stratification of user data into active and inactive paying users on a per title basis. Active users are those who are active in the game for the past 30 days as of the evaluation date. The remaining users are considered inactive and deemed to have churned from the game. These users are treated mathematically differently in the model than those who are still active. A distribution curve is then fit to the user data to estimate the average playing period of paying users on a per title basis. The Company has selected a threshold of 120 days from the commercial launch of a title as the minimum number of days of data required for this model. This threshold was deemed to be appropriate as the Company tested the model using lower thresholds which resulted in inconsistencies in the estimate of the average playing period of paying users. For new titles with less than 120 days of data that share similar attributes with an existing title and/or prequel titles, the average playing period is determined based on the average playing period of that existing title or prequel title, as applicable. For all other titles with less than 120 days of data, the average playing period is determined based on the average playing period of all other remaining existing titles. While the Company believes its estimates to be reasonable based on available game player information, it may revise such estimates in the future if a titles’ user characteristics change. Any adjustments arising from changes in the estimates of the average playing period for paying users would be applied to the current quarter and prospectively on the basis that such changes are caused by new information that indicates a change in user behavior patterns compared to historical titles. Any changes in the Company’s estimates of the useful life of virtual items in a certain title may result in revenue being recognized on a basis different from prior periods’ and may cause its operating results to fluctuate. Principal Agent Considerations The Company evaluated its Digital Storefront and advertising service provider agreements under ASC 606 in order to determine if it is acting as the principal or as an agent when selling virtual items or advertisements within its games. The Company primarily uses Digital Storefronts for distributing its smartphone games and for enabling players to purchase virtual items and advertising service providers to serve advertisements within its games. The Company evaluated the following factors to assess whether it controls each specified good or service before that good or service is transferred to the customer: ● the party responsible for the fulfillment of the virtual items, game related services, or serving of advertisements; ● the party having the discretion to set pricing with the end-users; and ● the party having inventory risk before the specified good or service have been transferred to a customer. Based on the evaluation of the above indicators, the Company determined that it has control of the services before they are transferred to the end-user. Thus, the Company is generally acting as a principal and is the primary obligor to end-users for games distributed through Digital Storefronts and advertisements served through its advertising service providers. Therefore, the Company recognizes revenue related to these arrangements on a gross basis, when the necessary information about the gross amounts or platform fees charged, before any adjustments, are made available by the Digital Storefronts and advertising service providers. In situations where the price paid by the end-user of the advertising service provider is not known, the Company accounts for these transactions on a net basis. Deferred Platform Commissions and Royalties Digital Storefronts retain platform commissions and fees on each purchase made by the paying players through the Digital Storefront. The Company is also obligated to pay ongoing licensing fees in the form of royalties related to the games developed based on or significantly incorporating licensed brands, properties or other content, and the Company plans to incorporate additional licensed content in some of its own originally branded games. As revenue from sales to paying players through Digital Storefronts are deferred, the related direct and incremental platform commissions and fees as well as third-party royalties are also deferred on the consolidated balance sheets. The deferred platform commissions and royalties are recognized in the consolidated statements of operations in “Cost of revenue” in the period in which the related sales are recognized as revenue. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of cash on hand and money market funds. The Company considers all investments purchased with original maturities of three months or less from the date of purchase to be cash equivalents. The Company deposits cash and cash equivalents with financial institutions that management believes are of high credit quality. Deposits held with financial institutions often exceed the amount of insurance on these deposits. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash, cash equivalents and accounts receivable. The following table summarizes the revenue from customers or aggregate purchases through Digital Storefronts in excess of 10% of the Company’s revenue: Year Ended December 31, 2019 2018 2017 Apple 54.4 % 54.7 % 54.2 % Google 33.5 % 31.3 % 30.3 % At December 31, 2019, Apple Inc. (“Apple”), Google Inc. (“Google”), and Tapjoy Inc. (“Tapjoy”) accounted for 47.2%, 28.5%, and 17.8%, respectively, of total accounts receivable. At December 31, 2018, Apple, Google and Tapjoy accounted for 40.8%, 30.3%, and 21.1%, respectively, of total accounts receivable. No other customer represented more than 10% of the Company’s total accounts receivable as of these dates. |
Fair Value | Fair Value Accounting Standard Codification 820 Fair Value Measurements and Disclosures Level 1 Level 2 Level 3 |
Foreign Currencies | Foreign Currencies Cumulative foreign currency translation adjustments include any gain or loss associated with the translation of a subsidiary’s financial statements when the functional currency of a subsidiary is the local currency. If the Company disposes of any of its subsidiaries, any cumulative translation gains or losses would be realized and recorded in other income (expense) within the Company’s consolidated statement of operations in the period during which the disposal occurs. If the Company determines that there has been a change in the functional currency of a subsidiary from a local currency to the U.S. Dollar, any translation gains or losses arising after the date of change would be included in interest and other income/(expense), net within the Company’s consolidated statement of operations. |
Prepaid or Guaranteed Licensor Royalties | Prepaid or Guaranteed Licensor Royalties The Company’s royalty expenses consist of fees that it pays to content owners for the use of their brands, properties and other licensed content, including trademarks and copyrights, in the development of the Company’s games. Royalty-based obligations are either paid in advance and capitalized on the balance sheet as prepaid royalties or accrued as incurred and subsequently paid. These royalty-based obligations are expensed to cost of revenue at the greater of the revenue derived from the relevant game multiplied by the applicable contractual rate or an effective royalty rate based on expected net product sales. The Company’s contracts with some licensors include minimum guaranteed royalty payments, which are payable regardless of the ultimate revenue generated from end users. In accordance with Accounting Standard Codification 440-10 Commitments Each quarter, the Company evaluates the realization of its prepaid royalties as well as any recognized guarantees not yet paid to determine amounts that it deems unlikely to be realized through product sales. The Company uses estimates of revenue, cash flows and net margins to evaluate the future realization of prepaid royalties, license fees, and guarantees. This evaluation considers multiple factors such as the term of the agreement, forecasted demand, game life cycle status, game development plans, and current and anticipated sales levels, as well as other qualitative factors such as the success of similar games and similar genres on mobile devices published by the Company and its competitors other game platforms (e.g., consoles and personal computers) utilizing the intellectual property. To the extent that this evaluation indicates that the remaining prepaid and guaranteed royalty payments are not recoverable, the Company records an impairment charge to cost of revenue in the period in which impairment is indicated. related to prepaid guaranteed royalties for certain of its celebrity license agreements, and certain other prepaid royalties |
Goodwill and Intangible Assets | Goodwill and Intangible Assets In accordance with Accounting Standard Codification 350 Intangibles-Goodwill and Other th Step — 0 The Company evaluates qualitative factors and overall financial performance to determine whether it is necessary to perform the first step of the two-step goodwill test. This step is referred to as “Step 0.” Step 0 involves, among other qualitative factors, weighing the relative impact of factors that are specific to the reporting unit as well as industry and macroeconomic factors. After assessing those various factors, if it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the entity will need to proceed to the first step of the two-step goodwill impairment test. Step — 1 The Company compares the fair value of each of its reporting units to the carrying value including goodwill of that unit. For each reporting unit where the carrying value, including goodwill, exceeds the unit’s fair value, the Company moves on to step 2. If a unit’s fair value exceeds the carrying value, no further work is performed and no impairment charge is necessary. Step — 2 The Company performs an allocation of the fair value of the reporting unit to its identifiable tangible and intangible assets (other than goodwill) and liabilities. This allows the Company to derive an implied fair value for the unit’s goodwill. The Company then compares the implied fair value of the reporting unit’s goodwill with the carrying value of the unit’s goodwill. If the carrying amount of the unit’s goodwill is greater than the implied fair value of its goodwill, an impairment charge would be recognized for the excess. In 2019, 2018, and 2017, the Company did not Purchased intangible assets with finite lives are amortized using the straight-line method over their useful lives ranging from three Accounting Standard Codification 360 Property, Plant and Equipment |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates its long-lived assets, including property and equipment and intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. Factors considered important that could result in an impairment review include significant underperformance relative to expected historical or projected future operating results, significant changes in the manner of use of acquired assets, significant negative industry or economic trends, and a significant decline in the Company’s stock price for a sustained period of time. Impairment exists if the carrying amounts of such assets exceed the estimates of future undiscounted cash flows expected to be generated by such assets. Should an impairment exist, the impairment loss would be measured based on the excess carrying value of the asset over expected discounted future cash flows, or if applicable, the quoted market price from those assets. The Company has not recorded any such impairment charge during the years presented. |
Property and Equipment | Property and Equipment The Company states property and equipment at cost less accumulated depreciation and amortization. The Company computes depreciation or amortization using the straight-line method over the estimated useful lives of the respective assets or, in the case of leasehold improvements, the lease term of the respective assets, whichever is shorter. Cost of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. The depreciation and amortization periods for the Company’s property and equipment are as follows: Computer equipment Three years Computer software Two Furniture and fixtures Three years Leasehold improvements Shorter of the estimated useful life or remaining term of lease |
Internal Use Software | Internal Use Software The Company capitalizes internal use software development costs in accordance with Accounting Standard Codification 350-40 Intangibles-Goodwill and Other-Internal Use Software Accounting Standards Update 2015-05 Cloud Computing Arrangements |
Research and Development Costs | Research and Development Costs The Company charges costs related to research, design and development of products to research and development expense as incurred. The types of costs included in research and development expenses include personnel-related expenses such as salaries and benefits related to product development employees, third party development cost, contractor fees, and allocated facilities costs. |
Software Development Costs | Software Development Costs The Company applies the principles of Accounting Standard Codification 985-20 Software-Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed |
Stock-Based Compensation | Stock-Based Compensation The Company applies the fair value provisions of Accounting Standard Codification 718 Compensation-Stock Compensation The cost of RSUs and PSUs is determined using the fair value of the Company’s common stock based on the quoted closing price of the Company’s common stock on the date of grant. Compensation cost for stock options, RSUs and performance-based awards with a single vesting date is amortized ratably over the requisite service period. For performance-based awards that have multiple vesting dates, the compensation cost is recognized ratably over the requisite service period for each tranche, whereby each vesting tranche is treated as a separate award for determining the requisite service period. The compensation cost for performance-based awards may be adjusted over the vesting period based on interim estimates of performance against the pre-set financial performance measures. |
Advertising Expenses | Advertising Expenses The Company expenses the production costs of advertising, including direct response advertising, the first time the advertising takes place. Advertising expense was $117,979, $95,037, and $88,775 in the years ended December 31, 2019, 2018, and 2017, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with Accounting Standard Codification 740 Income Taxes The Company accounts for uncertain tax positions in accordance with ASC 740, which requires companies to adjust their financial statements to reflect only those tax positions that are more-likely-than-not to be sustained. ASC 740 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits in income tax expense. |
Restructuring | Restructuring The Company accounts for costs associated with employee terminations and other exit activities in accordance with Accounting Standard Codification 420 Exit or Disposal Cost Obligations |
Comprehensive Income/(Loss) | Comprehensive Income/(Loss) Comprehensive income/(loss) consists of two components, net income/(loss) and other comprehensive income/(loss). Other comprehensive income/(loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income/(loss). The Company’s other comprehensive income/(loss) included foreign currency translation adjustments from those subsidiaries not using the U.S. Dollar as their functional currency, and a reclassification to net income/(loss) from the write-off of cumulative translation adjustment. |
Business Combinations | Business Combinations The Company applies the accounting standard related to business combinations, Accounting Standard Codification 805, Business Combinations ● recognition of assets acquired, liabilities assumed, and contingent consideration at their fair value on the acquisition date with subsequent changes recognized in earnings; ● acquisition-related expenses and restructuring costs to be recognized separately from the business combination and expensed as incurred; ● in-process research and development to be capitalized at fair value as an indefinite-lived intangible asset until completion or abandonment; and ● that changes in accounting for deferred tax asset valuation allowances and acquired income tax uncertainties after the measurement period be recognized as a component of provision for taxes. The Company accounts for acquisitions of entities or assets that include inputs and processes and have the ability to create outputs as business combinations. The purchase price of the acquisition is allocated to tangible assets, liabilities, and identifiable intangible assets acquired based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. Acquisition-related expenses and restructuring costs are expensed as incurred. While the Company uses its best estimates and assumptions as a part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the business combination date, these estimates and assumptions are inherently uncertain and subject to refinement. As a result, during the preliminary purchase price allocation period, which may be up to one year from the business combination date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. After the preliminary purchase price allocation period, the Company records adjustments to assets acquired or liabilities assumed subsequent to the purchase price allocation period in its operating results in the period in which the adjustments were determined. |
Operating Leases | Operating Leases The Company determines if an arrangement is a lease at inception. Its operating lease agreements are primarily for real estate space and are included within operating lease right of use (“ROU”) assets and operating lease liabilities on the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent its obligation to make lease payments arising from the lease. ROU assets and operating lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease term. As the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate, determined as the rate it would have incurred to borrow based on its credit quality at the inception of the lease over a similar term and in the economic environment where the leased asset is located, to calculate the present value of lease payments. ROU assets also exclude lease incentives. Many of the Company’s lease agreements include options to extend the lease, which the Company does not include in the minimum lease terms unless they are reasonably certain to be exercised. Rental expense for lease payments related to operating leases is recognized on a straight-line basis over the lease term. The Company adopted Accounting Standard Codification 842, Leases (“ASC 842”) effective January 1, 2019 using the modified retrospective transition approach and chose to account for the impact of the adoption as of the effective date. The reported results for 2019 reflect the application of ASC 842 guidance while the reported results for 2018 were prepared under the guidance of Accounting Standard Codification 840, Leases (“ASC 840”) , which is also referred to herein as "legacy GAAP" or the "previous guidance". The new standard provides a number of optional practical expedients in transition. The Company elected the ‘package of practical expedients’, which permits the Company to not reassess under the new standard for prior conclusions about lease identification, lease classification, and initial direct costs. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company elected the short-term lease recognition exemption, and for those leases that qualified, the Company did not recognize ROU assets or lease liabilities, and this included not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition. The Company also elected the practical expedient to not separate lease and non-lease components for all of its leases. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases Leases (Topic 842): Targeted Improvements Codification Improvements to Topic 842, Leases modified retrospective transition approach. See Note 9 “Leases” for the required disclosures related to the impact of adopting this standard and a discussion of the Company’s updated policies related to leases. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805) In February 2018, the FASB issued ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In June 2018, the FASB issued ASU No. 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting those fiscal years. The Company adopted this new standard on January 1, 2019. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In July 2018, the FASB issued ASU 2018-09, Codification Improvements Recently Issued Accounting Pronouncements Not Yet Adopted In January 2017, the FASB issued ASU No. 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement 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. This guidance clarifies the accounting treatment for implementation, set-up, and other upfront costs incurred in computing arrangements (hosting arrangements) that are service contracts. Under the new guidance, customers will apply the same criteria for capitalizing implementation costs as they would for an arrangement that has a software license. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. |
THE COMPANY AND SUMMARY OF SI_3
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of Revenue Concentration | Year Ended December 31, 2019 2018 2017 Apple 54.4 % 54.7 % 54.2 % Google 33.5 % 31.3 % 30.3 % |
Schedule of Depreciation And Amortization Periods for Property and Equipment | Computer equipment Three years Computer software Two Furniture and fixtures Three years Leasehold improvements Shorter of the estimated useful life or remaining term of lease |
NET INCOME_(LOSS) PER SHARE (Ta
NET INCOME/(LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
NET INCOME/(LOSS) PER SHARE | |
Computation of Net Income/(Loss) Per Share | Year Ended December 31, 2019 2018 2017 Net income/(loss) $ 8,871 $ (13,199) $ (97,570) Shares used to compute net income/(loss) per share: Weighted average shares used to compute basic net income/(loss) per share 145,838 141,402 135,715 Dilutive potential common shares 11,545 — — Weighted average shares used to compute diluted net income/(loss) per share 157,383 141,402 135,715 Basic net income/(loss) per share $ 0.06 $ (0.09) $ (0.72) Diluted net income/(loss) per share $ 0.06 $ (0.09) $ (0.72) |
Schedule of Anti-Dilutive Securities Excluded from Computation of Net Income/(Loss) Per Share | Year Ended December 31, 2019 2018 2017 Warrants to purchase common stock 1,292 1,600 3,267 Options to purchase common stock 2,303 18,491 16,932 RSUs 659 3,021 5,812 PSOs 2,369 3,512 — PSUs 38 711 — ESPP 369 283 376 Total 7,030 27,618 26,387 |
BUSINESS COMBINATIONS _ DIVES_2
BUSINESS COMBINATIONS / DIVESTITURE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Dairy Free, Inc. | |
Business Acquisition [Line Items] | |
Fair Values of Assets Acquired and Liabilities Assumed | Assets acquired: Cash and cash equivalents $ 341 Intangible assets: In-process research and development 2,700 Other current assets 32 Goodwill 573 Total assets 3,646 Liabilities assumed: Deferred tax liability (294) Other accrued liabilities (2) Total liabilities assumed (296) Net acquired assets $ 3,350 |
CrowdStar Inc and Plain Vanilla | |
Business Acquisition [Line Items] | |
Pro Forma Financial Information | Year ended December 31, (unaudited) 2017 Total pro forma revenue $ 286,827 Pro forma net loss (98,450) Pro forma net loss per share - basic (0.73) Pro forma net loss per share - diluted (0.73) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS | |
Schedule of Assets and Liabilities Presented at Fair Value | Level 1 Level 2 Level 3 December 31, 2019 Financial Assets Cash and cash equivalents $ 127,053 $ — $ — $ 127,053 Other investments — — 1,565 1,565 Total financial assets $ 127,053 $ — $ 1,565 $ 128,618 As of December 31, 2018, the Company’s financial assets and financial liabilities are presented below at fair value and were classified within the fair value hierarchy as follows: Level 1 Level 2 Level 3 December 31, 2018 Financial Assets Cash and cash equivalents $ 97,834 $ — $ — $ 97,834 Restricted cash 110 — — 110 Other investments — — 1,410 1,410 Total financial assets $ 97,944 $ — $ 1,410 $ 99,354 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | |
Summary of Revenue from Contracts with Customers | Year Ended December 31, 2019 2018 2017 In-App Purchases (over-time revenue recognition) $ 360,598 $ 316,157 $ 244,314 Advertisements and offers (point-in-time revenue recognition) 50,728 50,121 41,154 Other (point-in-time revenue recognition) 55 283 1,359 Total revenue $ 411,381 $ 366,561 $ 286,827 |
Information on Receivables, contract assets and contract liabilities | December 31, 2019 2018 Receivables, which are included in accounts receivable, net $ 29,304 $ 27,325 Contract liabilities, which are included in deferred revenue $ 97,629 $ 85,736 |
BALANCE SHEET COMPONENTS (Table
BALANCE SHEET COMPONENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
BALANCE SHEET COMPONENTS | |
Schedule of Components of Accounts Receivable, net | December 31, 2019 2018 Accounts receivable $ 29,304 $ 27,325 Less: Allowance for doubtful accounts — — Accounts receivable, net $ 29,304 $ 27,325 |
Schedule of Movement in Allowance for Doubtful Accounts | Balance at Balance at Beginning of End of Description Year Additions Release of Allowance Year Year ended December 31, 2019 $ - $ - $ - $ - Year ended December 31, 2018 $ 837 $ - $ (837) $ - Year ended December 31, 2017 $ 837 $ - $ - $ 837 |
Schedule of Components of Property and Equipment | December 31, 2019 2018 Computer equipment $ 9,079 $ 7,281 Furniture and fixtures 2,201 2,076 Software 3,612 3,394 Leasehold improvements 16,121 11,230 Total 31,013 23,981 Less: Accumulated depreciation and amortization (13,370) (10,093) Property and equipment, net $ 17,643 $ 13,888 |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |
Reconciliation of cash, cash equivalents and restricted cash | Year Ended December 31, 2019 2018 2017 Cash and cash equivalents at beginning of period $ 97,834 $ 63,764 $ 102,102 Restricted cash at beginning of the period 110 602 1,312 Cash, cash equivalents and restricted cash at beginning of period $ 97,944 $ 64,366 $ 103,414 Cash and cash equivalents at end of period 127,053 97,834 63,764 Restricted cash at end of the period — 110 602 Cash, cash equivalents and restricted cash at end of period $ 127,053 $ 97,944 $ 64,366 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
GOODWILL AND INTANGIBLE ASSETS | |
Schedule of Carrying Amounts and Accumulated Amortization of Acquired Intangible Assets | December 31, 2019 December 31, 2018 Estimated Gross Accumulated Net Gross Accumulated Net Useful Carrying Amortization Carrying Carrying Amortization Carrying Life Value Expense Value Value Expense Value Intangible assets amortized to cost of revenue: Titles, content and technology 3 - 5 yrs $ 21,117 $ (16,359) $ 4,758 $ 21,117 $ (12,203) $ 8,914 Customer contracts and related relationships 5 yrs 700 (700) — 700 (648) 52 Trademarks 7 yrs 5,000 (5,000) — 5,000 (4,821) 179 $ 26,817 $ (22,059) $ 4,758 $ 26,817 $ (17,672) $ 9,145 |
Schedule of Expected Amortization Related to Intangible Assets | Amortization to Be Included in Cost of Year Ending December 31, Revenue 2020 $ 3,258 2021 1,500 Total intangible assets $ 4,758 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
LEASES | |
Material impact on the Company's condensed consolidated balance sheets | As Previously Reported December 31, 2018 New Lease Standard Adjustment As Adjusted January 1, 2019 Operating lease right of use assets $ — 28,345 $ 28,345 Short-term operating lease liabilities — 3,732 3,732 Long-term operating lease liabilities — 30,197 30,197 Deferred rent payable* $ 5,284 (5,284) $ — * As of December 31, 2018, $122 and $5,162 of Deferred rent payable is included within the Accounts payable and Other long-term liabilities line items on the consolidated balance sheet, respectively. |
Schedule of future minimum lease payments | Operating Year Ending December 31, Leases 2020 4,587 2021 6,999 2022 6,927 2023 6,964 2024 and thereafter 27,667 Total lease payments $ 53,144 Less: imputed interest (12,265) Total $ 40,879 |
Supplemental Information Operating Cash Flows from Operating Leases | Year Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 5,832 Year Ended December 31, 2019 Right of use assets obtained in exchange for new lease obligations: Operating leases $ 11,231 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES | |
Schedule of Future Minimum Guaranteed Royalty Commitments | Future Minimum Guarantee Commitments 2020 $ 11,540 2021 10,160 2022 6,150 2023 6,150 2024 6,150 $ 40,150 |
STOCKHOLDERS EQUITY (Tables)
STOCKHOLDERS EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
STOCKHOLDERS EQUITY | |
Schedule of estimated the fair value of the warrants | Year Ended December 31, 2019 2018 2017 Dividend yield — % — % — % Risk-free interest rate — % 2.53 % 1.65 % Expected volatility — % 56.73 % 51.81 % Expected term (in years) — 3.51 3.52 |
STOCK OPTION AND OTHER BENEFI_2
STOCK OPTION AND OTHER BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Stock Option Activity | Options Outstanding Weighted Weighted Number Average Average Remaining Aggregate of Exercise Contractual Intrinsic Shares Price Term (Years) Value Balances at December 31, 2016 15,813 $ 2.74 Options granted 5,346 $ 3.10 Options canceled (2,716) $ 3.16 Options exercised (1,511) $ 2.73 Balances at December 31, 2017 16,932 $ 2.78 Options granted 6,092 $ 4.82 Options canceled (1,213) $ 3.54 Options exercised (3,320) $ 2.88 Balances at December 31, 2018 18,491 $ 3.39 Options granted 815 $ 7.58 Options canceled (1,219) $ 4.73 Options exercised (1,799) $ 2.81 Balances at December 31, 2019 16,288 $ 3.56 7.08 $ 42,165 Options exercisable at December 31, 2019 9,846 $ 3.21 6.67 $ 28,331 |
Schedule of Assumptions Used to Estimate Fair Value of Options | Performance Stock Options Year Ended December 31, 2019 2018 2017 Dividend yield — % — % — % Risk-free interest rate — % 2.89 % 2.07 % Expected volatility — % 60.2 % 63.3 % Expected term (years) — 5.98 5.81 Stock Options Year Ended December 31, 2019 2018 2017 Dividend yield — % — % — % Risk-free interest rate 1.88 % 2.63 % 1.76 % Expected volatility 57.2 % 57.9 % 57.8 % Expected term (years) 4.00 4.00 4.00 |
Schedule of Stock-Based Compensation Expense by Line Item | Year Ended December 31, 2019 2018 2017 Research and development $ 10,466 $ 12,807 $ 6,460 Sales and marketing 1,700 2,795 1,289 General and administrative 5,217 8,990 7,314 Total stock-based compensation expense $ 17,383 $ 24,592 $ 15,063 |
Schedule of compensation expense related to unvested awards | The following table summarizes total compensation expense related to unvested awards not yet recognized as of December 31, 2019: Unrecognized Compensation Expense for Unvested Awards Stock options $ 11,214 RSUs 19,947 PSUs (1) 7,609 PSOs (1) 99 Total unrecognized compensation expense $ 38,869 (1) The unrecognized compensation expense for PSOs and PSUs vesting in FY2022 and FY2023 is not included in the table above as the Company does not have a reasonable basis upon which to estimate the vesting probability of such awards in those future periods. |
Restricted stock units ("RSUs") | |
Summary of Company's RSU Activity | Weighted Weighted Number of Average Average Remaining Aggregate Units Grant Date Contractual Intrinsic Outstanding Fair Value Term (Years) Value Awarded and unvested, December 31, 2016 8,224 $ 3.33 Granted 2,360 $ 2.31 Vested (2,863) $ 3.45 Forfeited (1,909) $ 3.01 Awarded and unvested, December 31, 2017 5,812 $ 2.96 Granted 278 $ 5.90 Vested (2,648) $ 3.24 Forfeited (421) $ 2.71 Awarded and unvested, December 31, 2018 3,021 $ 3.01 Granted 2,936 $ 6.84 Vested (1,688) $ 3.27 Forfeited (318) $ 4.17 Awarded and unvested, December 31, 2019 3,951 $ 5.66 1.51 $ 23,905 |
PSUs | |
Summary of Stock Option Activity | Weighted Weighted Number of Average Average Remaining Aggregate Units Grant Date Contractual Intrinsic Outstanding Fair Value Term (Years) Value Awarded and unvested, December 31, 2016 - $ - Granted 661 $ 3.59 Awarded and unvested, December 31, 2017 661 $ 3.59 Granted 2,909 $ 5.85 Forfeited (40) $ 4.03 Awarded and unvested, December 31, 2018 3,530 $ 5.45 Granted 2,780 $ 6.46 Vested (700) $ 4.59 Forfeited (193) $ 6.14 Awarded and unvested, December 31, 2019 5,417 $ 6.06 1.32 $ 32,769 PSUs expected to vest at December 31, 2019 276 $ 3.61 0.13 $ 1,667 |
PSOs | |
Summary of Stock Option Activity | Weighted Weighted Number of Average Average Remaining Aggregate Shares Exercise Contractual Intrinsic Outstanding Price Term (Years) Value Balance as of December 31, 2016 - $ - Granted 4,246 $ 3.60 Forfeited (76) $ 3.97 Balance as of December 31, 2017 4,170 $ 3.59 Granted 2,737 $ 5.87 Forfeited (151) $ 3.59 Balance as of December 31, 2018 6,756 $ 4.51 Exercised (173) $ 3.59 Balance as of December 31, 2019 6,583 $ 4.54 8.15 $ 10,765 PSOs expected to vest at December 31, 2019 409 $ 3.60 7.85 $ 1,002 PSO exercisable at December 31, 2019 3,339 $ 3.60 7.80 $ 8,188 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES | |
Component of Income (Loss) Before Income Taxes By Tax Jurisdiction | Year Ended December 31, 2019 2018 2017 United States $ 7,047 $ (12,396) $ (97,503) Foreign 2,295 (254) (893) Income (loss) before income taxes $ 9,342 $ (12,650) $ (98,396) |
Components of Income Tax Benefit/(Provision) | Year Ended December 31, Current: 2019 2018 2017 Federal $ 373 $ (96) $ 947 State (10) (8) (10) Foreign (590) (500) (521) (227) (604) 416 Deferred: Federal — — 294 Foreign (244) 55 116 (244) 55 410 Total: Federal 373 (96) 1,241 State (10) (8) (10) Foreign (834) (445) (405) $ (471) $ (549) $ 826 |
Difference Between Actual Rate and Federal Statutory Rate | Year Ended December 31, 2019 2018 2017 Tax at federal statutory rate 21.0 % 21.0 % 34.0 % Meals and entertainment 3.1 (2.0) (0.1) Research and development credit (41.0) 21.3 2.5 Stock-based compensation (29.0) 17.9 (2.0) Revenue from contracts with customers — (14.6) — Others (0.6) (3.1) 0.6 Global intangible low-taxed income 4.2 (1.7) — Valuation allowance 17.5 (35.3) (33.8) Executive compensation 6.1 — — Foreign tax credit 23.7 (7.8) (0.4) Effective tax rate 5.0 % (4.3) % 0.8 % |
Deferred Tax Assets and Liabilities | December 31, 2019 December 31, 2018 US Foreign Total US Foreign Total Deferred tax assets: Fixed assets $ 209 $ 71 $ 280 $ — $ 35 $ 35 Net operating loss carryforwards 48,968 25 48,993 50,119 97 50,216 Accruals, reserves and other 5,202 134 5,336 10,853 172 11,025 Foreign tax credit 2,905 — 2,905 5,118 128 5,246 Stock-based compensation 5,882 — 5,882 4,787 — 4,787 Research and development credit 22,630 — 22,630 17,945 — 17,945 Capitalized research and development 7,189 — 7,189 2,835 — 2,835 Intangible assets 355 — 355 — — — Other 2,951 — 2,951 2,888 — 2,888 Total deferred tax assets $ 96,291 $ 230 $ 96,521 $ 94,545 $ 432 $ 94,977 Deferred tax liabilities: Fixed assets $ — $ (40) $ (40) $ (54) $ (19) $ (73) Intangible assets — — — (513) — (513) Net deferred tax assets 96,291 190 96,481 93,978 413 94,391 Less valuation allowance (96,291) (25) (96,316) (93,978) (4) (93,982) Net deferred tax assets $ — $ 165 $ 165 $ — $ 409 $ 409 |
Reconciliation of Total Amounts of Unrecognized Tax Benefits | Year Ended December 31, 2019 2018 Beginning balance $ 20,718 $ 13,391 Reductions of tax positions taken during previous years (8,226) (59) Additions based on uncertain tax positions related to the current period 2,598 3,996 Additions based on uncertain tax positions related to prior periods — 3,400 Cumulative translation adjustment (6) (10) Ending balance $ 15,084 $ 20,718 |
SEGMENT INFORMATION AND OPERA_2
SEGMENT INFORMATION AND OPERATIONS BY GEOGRAPHIC AREA (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SEGMENT INFORMATION AND OPERATIONS BY GEOGRAPHIC AREA | |
Schedule of Revenues by Geographic Region | Year Ended December 31, 2019 2018 2017 United States of America $ 320,343 $ 280,264 $ 216,468 Americas, excluding the United States 25,240 21,903 15,976 EMEA 45,700 41,585 33,180 APAC 20,098 22,809 21,203 Total revenue $ 411,381 $ 366,561 $ 286,827 |
Schedule of Long-Lived Assets by Geographic Location | December 31, 2019 2018 United States of America $ 16,738 $ 12,653 Rest of the World 905 1,235 Total $ 17,643 $ 13,888 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
RESTRUCTURING. | |
Summary of Restructuring Reserve Activity | Restructuring Restructuring Restructuring Workforce Facility Total Balance as of December 31, 2016 $ - $ 271 $ 271 Charges to operations 4,319 1,700 6,019 Non-cash charges/adjustments 146 44 190 Charges settled in cash (4,322) (1,399) (5,721) Balance as of December 31, 2017 $ 143 $ 616 $ 759 Charges to operations 160 80 240 Charges settled in cash (303) (402) (705) Balance as of December 31, 2018 $ - $ 294 $ 294 Non-cash adjustments (1) - (294) (294) Balance as of December 31, 2019 $ - $ - $ - (1) Reflects reclassification of restructuring accrual to operating lease right of use assets . |
QUARTERLY FINANCIAL DATA (una_2
QUARTERLY FINANCIAL DATA (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
QUARTERLY FINANCIAL DATA (unaudited) | |
Unaudited Quarterly Consolidated Statements of Operations Data | For the Three Months Ended 2019 2018 March 31, June 30, September 30, December 31, March 31, June 30, September 30, December 31, Revenue $ 95,885 $ 95,540 $ 107,077 $ 112,879 $ 81,443 $ 90,193 $ 99,285 $ 95,640 Cost of revenue: Platform commissions, royalties and other 32,813 32,806 36,758 38,278 29,167 32,386 34,384 32,508 Impairment of prepaid royalties and minimum guarantees 457 (b) — — — 99 (b) — — 612 Impairment and amortization of intangible assets 1,252 1,056 1,040 1,039 1,467 1,468 4,167 2,017 Total cost of revenue 34,522 33,862 37,798 39,317 30,733 33,854 38,551 35,137 Gross profit 61,363 61,678 69,279 73,562 50,710 56,339 60,734 60,503 Operating expenses: Research and development 26,546 19,736 22,968 25,877 22,710 22,832 23,839 25,553 Sales and marketing 28,105 35,040 46,140 31,013 26,810 29,741 28,874 28,435 General and administrative 6,635 4,951 5,879 5,751 7,890 7,608 8,095 8,074 Restructuring charge — — — — 80 (a) — 160 (a) — Total operating expenses 61,286 59,727 74,987 62,641 57,490 60,181 60,968 62,062 Income/(loss) from operations 77 1,951 (5,708) 10,921 (6,780) (3,842) (234) (1,559) Interest and other income/(expense), net 764 556 271 510 (251) (366) 96 286 Income/(loss) before income taxes 841 2,507 (5,437) 11,431 (7,031) (4,208) (138) (1,273) Income tax (provision)/benefit (178) — 348 (641) (175) (207) (118) (49) Net income/(loss) $ 663 $ 2,507 $ (5,089) $ 10,790 $ (7,206) $ (4,415) $ (256) $ (1,322) Net income/(loss) per share Basic $ 0.00 $ 0.02 $ (0.03) $ 0.07 $ (0.05) $ (0.03) $ (0.00) $ (0.01) Diluted $ 0.00 $ 0.02 $ (0.03) $ 0.07 $ (0.05) $ (0.03) $ (0.00) $ (0.01) (a) Includes restructuring charges relating to employee termination costs in the Company’s Long Beach office. (b) These charges are related to impairment of prepaid guaranteed royalties for certain celebrity license agreements, and certain other prepaid royalties. |
THE COMPANY AND SUMMARY OF SI_4
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue recognized relating to performance obligations satisfied in prior periods | $ 0 | $ 0 |
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation [true false] | true | |
Number of years revenue from consumable virtual items has been insignificant | 3 years | |
Minimum | ||
Estimated useful life of a paying user | 4 months | |
Maximum | ||
Estimated useful life of a paying user | 8 months |
THE COMPANY AND SUMMARY OF SI_5
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Estimates and Judgments (Details) | 12 Months Ended |
Dec. 31, 2019 | |
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Number of days required to be considered an active user | 30 days |
Revenue, minimum number of days of data required | 120 days |
THE COMPANY AND SUMMARY OF SI_6
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration Risks (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from customers | Customer Concentration Risk | Apple | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage from customers | 54.40% | 54.70% | 54.20% |
Revenues from customers | Customer Concentration Risk | Google | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage from customers | 33.50% | 31.30% | 30.30% |
Accounts Receivable | Customer Concentration Risk | Apple | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage from customers | 40.80% | ||
Accounts Receivable | Credit Concentration Risk | Apple | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage from customers | 47.20% | 40.80% | |
Accounts Receivable | Credit Concentration Risk | Google | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage from customers | 28.50% | 30.30% | |
Accounts Receivable | Credit Concentration Risk | Tapjoy | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage from customers | 17.80% | 21.10% |
THE COMPANY AND SUMMARY OF SI_7
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Licensor Royalties, Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Future minimum royalty payments | $ 40,150 | $ 7,304 | $ 40,150 | |
Impairment charges to cost of revenues | 457 | 711 | $ 27,323 | |
Goodwill impairment charges | $ 0 | $ 0 | $ 0 | |
Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets estimated useful life | 3 years | |||
Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets estimated useful life | 7 years |
THE COMPANY AND SUMMARY OF SI_8
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Computer equipment | |
Property, Plant and Equipment [Line Items] | |
Property plant and Equipment useful life | 3 years |
Computer software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property plant and Equipment useful life | 2 years |
Computer software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property plant and Equipment useful life | 3 years |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Property plant and Equipment useful life | 3 years |
THE COMPANY AND SUMMARY OF SI_9
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Internal Use Software (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Internal Use Software [Abstract] | |||
Capitalized internal use software costs | $ 1,216 | $ 65 | $ 924 |
Amortization of capitalized software costs | $ 809 | $ 896 | $ 1,031 |
Capitalized software costs | |||
Internal Use Software [Abstract] | |||
Intangible assets estimated useful life | 3 years |
THE COMPANY AND SUMMARY OF S_10
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Advertising Expenses [Abstract] | |||
Advertising expense | $ 117,979 | $ 95,037 | $ 88,775 |
NET INCOME_(LOSS) PER SHARE - B
NET INCOME/(LOSS) PER SHARE - Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||
Net income/(loss) | $ 10,790 | $ (5,089) | $ 2,507 | $ 663 | $ (1,322) | $ (256) | $ (4,415) | $ (7,206) | $ 8,871 | $ (13,199) | $ (97,570) |
Shares used to compute net income/(loss) per share: | |||||||||||
Weighted average shares used to compute basic net income/(loss) per share | 145,838 | 141,402 | 135,715 | ||||||||
Dilutive potential common shares | 11,545 | ||||||||||
Weighted average shares used to compute diluted net income/(loss) per share | 157,383 | 141,402 | 135,715 | ||||||||
Basic net income/(loss) per share | $ 0.07 | $ (0.03) | $ 0.02 | $ 0 | $ (0.01) | $ 0 | $ (0.03) | $ (0.05) | $ 0.06 | $ (0.09) | $ (0.72) |
Diluted net income/(loss) per share | $ 0.07 | $ (0.03) | $ 0.02 | $ 0 | $ (0.01) | $ 0 | $ (0.03) | $ (0.05) | $ 0.06 | $ (0.09) | $ (0.72) |
NET INCOME_(LOSS) PER SHARE - A
NET INCOME/(LOSS) PER SHARE - Antidilutive Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti dilutive securities excluded from computation of diluted net loss per share | 7,030 | 27,618 | 26,387 |
Warrants to purchase common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti dilutive securities excluded from computation of diluted net loss per share | 1,292 | 1,600 | 3,267 |
Options to purchase common stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti dilutive securities excluded from computation of diluted net loss per share | 2,303 | 18,491 | 16,932 |
Restricted stock units ("RSUs") | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti dilutive securities excluded from computation of diluted net loss per share | 659 | 3,021 | 5,812 |
Performance stock options ("PSOs") | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti dilutive securities excluded from computation of diluted net loss per share | 2,369 | 3,512 | |
PSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti dilutive securities excluded from computation of diluted net loss per share | 38 | 711 | |
Employee stock purchase plan ("ESPP") | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti dilutive securities excluded from computation of diluted net loss per share | 369 | 283 | 376 |
BUSINESS COMBINATIONS _ DIVES_3
BUSINESS COMBINATIONS / DIVESTITURE - Moscow Studio (Details) shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2018USD ($) | Jan. 31, 2018USD ($) | Dec. 31, 2019USD ($)itemshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestiture of Moscow studio | $ 2,726 | ||||
Prepaid expenses and other assets | $ 8,629 | 6,940 | |||
Disposed by sale | Moscow Studio and GMRL | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss on divestiture | $ (6,459) | ||||
Assignment of contract | 10,000 | ||||
Goodwill write-off | 1,220 | ||||
Net assets written-off | 479 | ||||
Disposed by sale | Moscow Studio and GMRL | Saber and MGL | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Total cash consideration | 3,226 | ||||
Disposed by sale | Moscow Studio and GMRL | TSA | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Bonus expense | 500 | ||||
Accelerated vesting expense | $ 514 | ||||
Accelerated vesting, shares | shares | 147 | ||||
Amortization of transition services | $ 515 | ||||
Disposed by sale | Moscow Studio and GMRL | TSA | Saber | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Total cash consideration | 514 | ||||
Disposed by sale | Moscow Studio and GMRL | TSA | Saber | Maximum | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Bonus expense | $ 500 | ||||
Accelerated vesting, shares | shares | 150 | ||||
Disposed by sale | Moscow Studio and GMRL | APLA | MGL | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of mobile games sold | item | 4 | ||||
Disposed by sale | Moscow Studio and GMRL | Celebrity Game | MGL | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Minimum guarantee and other payments obligation | $ 1,500 | ||||
Total cash consideration | $ 1,500 | ||||
Disposed by sale | Moscow Studio and GMRL | SPA and APLA | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Total cash consideration | $ 3,226 | ||||
Proceeds from divestiture of Moscow studio | 1,500 | $ 1,726 | |||
Transition bonus payment | $ 500 |
BUSINESS COMBINATIONS _ DIVES_4
BUSINESS COMBINATIONS / DIVESTITURE - Dairy Free Games, Inc. (Details) - USD ($) $ in Thousands | Aug. 01, 2017 | Jan. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 |
Intangible assets: | |||||
Goodwill | $ 116,227 | $ 116,227 | |||
Liabilities assumed: | |||||
Business acquisition, transitional costs | $ 611 | ||||
Dairy Free, Inc. | |||||
Business Acquisition, Date of Acquisition [Abstract] | |||||
Voting power percent acquired | 100.00% | ||||
Cash paid | $ 2,000 | $ 2,000 | |||
Fair value of shares previously acquired | 2,000 | ||||
Assets acquired: | |||||
Cash and cash equivalents | 341 | ||||
Intangible assets: | |||||
Other current assets | 32 | ||||
Goodwill | 573 | ||||
Total assets acquired | 3,646 | ||||
Liabilities assumed: | |||||
Deferred tax liability | (294) | ||||
Other accrued liabilities | (2) | ||||
Total liabilities assumed | (296) | ||||
Net acquired assets | 3,350 | ||||
Goodwill expected to be deductible | 573 | ||||
Dairy Free, Inc. | Research and development | |||||
Liabilities assumed: | |||||
Business acquisition, transitional costs | 269 | ||||
Dairy Free, Inc. | General and administrative | |||||
Liabilities assumed: | |||||
Business acquisition, transitional costs | 342 | ||||
In-process research and development | Dairy Free, Inc. | |||||
Intangible assets: | |||||
Acquired intangible assets | $ 2,700 | ||||
Liabilities assumed: | |||||
Impairment charges of intangible assets | $ 2,700 |
BUSINESS COMBINATIONS _ DIVES_5
BUSINESS COMBINATIONS / DIVESTITURE - Pro forma (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / shares | |
CrowdStar Inc and Plain Vanilla | |
Business Acquisition [Line Items] | |
Total pro forma revenues | $ 286,827 |
Pro forma net loss | $ (98,450) |
Pro forma net loss per share - basic | $ / shares | $ (0.73) |
Pro forma net loss per share - diluted | $ / shares | $ (0.73) |
Dairy Free, Inc. | |
Business Acquisition [Line Items] | |
Acquisition related entities contribution to the company's net losses | $ 1,081 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 127,053 | $ 97,834 |
Restricted cash | 110 | |
Other Investments | 1,565 | 1,410 |
Total financial assets | 128,618 | 99,354 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 127,053 | 97,834 |
Restricted cash | 110 | |
Total financial assets | 127,053 | 97,944 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Investments | 1,565 | 1,410 |
Total financial assets | $ 1,565 | $ 1,410 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Total Revenue | $ 411,381 | $ 366,561 | $ 286,827 |
In-App Purchases | Over-time revenue recognition | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 360,598 | 316,157 | 244,314 |
Advertisements and offers | Point-in-time revenue recognition | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from contracts with customers | 50,728 | 50,121 | 41,154 |
Other | Point-in-time revenue recognition | |||
Disaggregation of Revenue [Line Items] | |||
Total Revenue | $ 55 | $ 283 | $ 1,359 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract Balances (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Contract Balances | |||
Receivables, which are included in accounts receivable, net | $ 29,304 | $ 27,325 | |
Contract liabilities, which are included in deferred revenue | $ 97,629 | $ 85,736 | $ 67,788 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Deferred revenue | $ 97,629 | $ 85,736 | $ 67,788 | |
ASU 2014-09 | ||||
Cumulative effect adjustment from adoption of ASU | $ 8,826 |
BALANCE SHEET COMPONENTS - Acco
BALANCE SHEET COMPONENTS - Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
BALANCE SHEET COMPONENTS | ||
Accounts receivable | $ 29,304 | $ 27,325 |
Accounts receivable, net | $ 29,304 | $ 27,325 |
BALANCE SHEET COMPONENTS - Allo
BALANCE SHEET COMPONENTS - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning Balance | $ 837 | $ 837 | |
Additions | |||
Deductions | $ (837) | ||
Ending Balance | $ 837 |
BALANCE SHEET COMPONENTS - Prop
BALANCE SHEET COMPONENTS - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 31,013 | $ 23,981 | |
Less: Accumulated depreciation and amortization | (13,370) | (10,093) | |
Property and equipment, net | 17,643 | 13,888 | |
Depreciation [Abstract] | |||
Depreciation | 4,225 | 3,855 | $ 3,195 |
Computer equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 9,079 | 7,281 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 2,201 | 2,076 | |
Computer software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 3,612 | 3,394 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 16,121 | $ 11,230 |
CASH, CASH EQUIVALENTS AND RE_3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Cash and cash equivalents at beginning of period | $ 97,834 | $ 63,764 | $ 102,102 |
Restricted cash at beginning of the period | 110 | 602 | 1,312 |
Cash, cash equivalents and restricted cash at beginning of period | 97,944 | 64,366 | 103,414 |
Cash and cash equivalents at end of period | 127,053 | 97,834 | 63,764 |
Restricted cash at end of the period | 110 | 602 | |
Cash, cash equivalents and restricted cash at end of period | $ 127,053 | $ 97,944 | $ 64,366 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets | |||
Gross Carrying Value | $ 26,817 | $ 26,817 | $ 26,817 |
Accumulated Amortization Expense | (22,059) | (17,672) | (22,059) |
Total intangible assets | 4,758 | 9,145 | 4,758 |
Impairment of goodwill | $ 0 | 0 | 0 |
Minimum | |||
Finite-Lived Intangible Assets | |||
Estimated Useful Life | 3 years | ||
Maximum | |||
Finite-Lived Intangible Assets | |||
Estimated Useful Life | 7 years | ||
Titles, content and technology | |||
Finite-Lived Intangible Assets | |||
Gross Carrying Value | $ 21,117 | 21,117 | 21,117 |
Accumulated Amortization Expense | (16,359) | (12,203) | (16,359) |
Total intangible assets | $ 4,758 | 8,914 | 4,758 |
Titles, content and technology | Minimum | |||
Finite-Lived Intangible Assets | |||
Estimated Useful Life | 3 years | ||
Titles, content and technology | Maximum | |||
Finite-Lived Intangible Assets | |||
Estimated Useful Life | 5 years | ||
Customer contracts and related relationships | |||
Finite-Lived Intangible Assets | |||
Estimated Useful Life | 5 years | ||
Gross Carrying Value | $ 700 | 700 | 700 |
Accumulated Amortization Expense | $ (700) | (648) | (700) |
Total intangible assets | 52 | ||
Trademarks | |||
Finite-Lived Intangible Assets | |||
Estimated Useful Life | 7 years | ||
Gross Carrying Value | $ 5,000 | 5,000 | 5,000 |
Accumulated Amortization Expense | $ (5,000) | (4,821) | $ (5,000) |
Total intangible assets | 179 | ||
In-process research and development | |||
Finite-Lived Intangible Assets | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ 2,700 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Future Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cost of Goods and Services Sold, Depreciation and Amortization [Abstract] | |||||||||||
Impairment and amortization of intangible assets | $ 1,039 | $ 1,040 | $ 1,056 | $ 1,252 | $ 2,017 | $ 4,167 | $ 1,468 | $ 1,467 | $ 4,387 | $ 9,119 | $ 10,331 |
Amortization expense, operating | 0 | 0 | $ 0 | ||||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||||||
Goodwill | 116,227 | $ 116,227 | 116,227 | $ 116,227 | |||||||
Finite Lived Intangible Assets Excluding Those Under Development [Member] | |||||||||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||||||||
2020 | 3,258 | 3,258 | |||||||||
2021 | 1,500 | 1,500 | |||||||||
Total intangible assets | $ 4,758 | $ 4,758 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lease terms | |||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||
Longest extension option | 6 years | ||
Weighted-average remaining non-cancelable lease term | 7 years 6 months 18 days | ||
Weighted-average discount rate | 6.70% | ||
Rent expense | $ 5,311 | $ 5,759 | $ 4,472 |
Minimum | |||
Lease terms | |||
Operating leases, remaining lease terms | 3 months | ||
Maximum | |||
Lease terms | |||
Operating leases, remaining lease terms | 7 years 11 months 1 day |
LEASES - Material impact on Bal
LEASES - Material impact on Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating lease right of use assets | $ 35,170 | $ 28,345 | |
Short-term operating lease liabilities | 3,528 | 3,732 | |
Long-term operating lease liabilities | $ 37,351 | 30,197 | |
Accounts payable | |||
Deferred rent payable | $ 122 | ||
Other long-term liabilities | |||
Deferred rent payable | 5,162 | ||
As Previously Reported | |||
Deferred rent payable | $ 5,284 | ||
2016-02 | Adjustments | |||
Operating lease right of use assets | 28,345 | ||
Short-term operating lease liabilities | 3,732 | ||
Long-term operating lease liabilities | 30,197 | ||
Deferred rent payable | $ (5,284) |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments under Noncancelable Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
LEASES | |
2020 | $ 4,587 |
2021 | 6,999 |
2022 | 6,927 |
2023 | 6,964 |
2024 and thereafter | 27,667 |
Total lease payments | 53,144 |
Less imputed interest | (12,265) |
Total | $ 40,879 |
LEASES - Supplemental Informati
LEASES - Supplemental Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 5,832 |
Operating leases | $ 11,231 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Minimum Guaranteed Royalties (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Future unpaid minimum guaranteed royalty commitments | |
2020 | $ 11,540 |
2021 | 10,160 |
2022 | 6,150 |
2023 | 6,150 |
2024 | 6,150 |
Total future unpaid minimum guaranteed royalty commitments | 40,150 |
Agreements With Various Licensors | Current and long-term liabilities | |
Future unpaid minimum guaranteed royalty commitments | |
Total future unpaid minimum guaranteed royalty commitments | 40,150 |
Agreements With Various Licensors | Current and long-term assets | |
Future unpaid minimum guaranteed royalty commitments | |
Recoupment of earned royalties | $ 40,150 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Other Commitments (Details) - Indemnification Agreement - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Officers And Directors | ||
Indemnification Agreements [Abstract] | ||
Indemnification liability recorded | $ 0 | $ 0 |
Digital Storefronts | ||
Indemnification Agreements [Abstract] | ||
Indemnification liability recorded | $ 0 | $ 0 |
STOCKHOLDERS EQUITY - Common an
STOCKHOLDERS EQUITY - Common and Preferred Stock (Details) - shares shares in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Common Stock [Abstract] | ||
Common stock, shares authorized | 250,000 | 250,000 |
Common stock, reserved for future issuance | 39,468 | |
Preferred Stock [Abstract] | ||
Preferred stock, shares authorized | 5,000 | 5,000 |
STOCKHOLDERS EQUITY - Celebrity
STOCKHOLDERS EQUITY - Celebrity Warrants (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2015itemshares | Dec. 31, 2014itemshares | |
Celebrity Warrants | |||||
Warrants and Rights Note Disclosure [Abstract] | |||||
Number of other entities | item | 1 | 1 | |||
Number of shares, if warrants exercised | 1,600 | 1,600 | |||
Warrant vesting period | 60 months | ||||
Non-cash warrant expense/(benefit) | $ | $ 0 | $ 1,046 | $ 569 | ||
Celebrity Warrants August 2015 | |||||
Warrants and Rights Note Disclosure [Abstract] | |||||
Number of shares, if warrants exercised | 1,000 | 1,000 | |||
Percent of shares that vest upon public announcement of license agreement | 50.00% | 50.00% | |||
Warrant vesting period | 24 months | 24 months | |||
Celebrity Warrants September 2015 | |||||
Warrants and Rights Note Disclosure [Abstract] | |||||
Number of shares, if warrants exercised | 100 | ||||
Warrant vesting period | 60 months | ||||
Common stock | Celebrity Warrants | |||||
Warrants and Rights Note Disclosure [Abstract] | |||||
Number of shares, if warrants exercised | 500 | ||||
Warrants exercise price, per share | $ / shares | $ 4.61 | ||||
Warrant exercisable term period | 5 years 5 months 8 days | ||||
Number of shares outstanding under warrant | 1,600 |
STOCKHOLDERS EQUITY -Weighted A
STOCKHOLDERS EQUITY -Weighted Average Assumptions (Details) - Warrants to purchase common stock | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Warrants and Rights Note Disclosure [Abstract] | ||
Risk-free interest rate | 2.53% | 1.65% |
Expected volatility | 56.73% | 51.81% |
Expected term (years) | 3 years 6 months 3 days | 3 years 6 months 7 days |
STOCKHOLDERS EQUITY - Warrants
STOCKHOLDERS EQUITY - Warrants (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class of Warrant or Right [Line Items] | |||
Proceeds from exercise of warrants | $ 3,000 | ||
Warrants to purchase common stock | |||
Class of Warrant or Right [Line Items] | |||
Shares issued, warrants exercised | 0 | 0 | 1,000 |
Proceeds from exercise of warrants | $ 3,000 |
STOCK OPTION AND OTHER BENEFI_3
STOCK OPTION AND OTHER BENEFIT PLANS (Details) $ in Thousands | Feb. 22, 2016shares | Aug. 15, 2009shares | Apr. 30, 2019shares | Apr. 30, 2018shares | Apr. 30, 2017shares | Aug. 14, 2009shares | Dec. 31, 2015 | Dec. 31, 2019USD ($)trancheshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Jun. 04, 2015 | Dec. 31, 2007shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock-based compensation | $ | $ 17,383 | $ 24,592 | $ 15,063 | |||||||||
Common stock, reserved for future issuance | 39,468,000 | |||||||||||
Options to purchase common stock | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock-based compensation | $ | $ 7,043 | $ 6,386 | ||||||||||
Options granted, number of shares | 815,000 | (6,092,000) | 5,346,000 | |||||||||
Options to purchase common stock | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Contractual term | 6 years | |||||||||||
Options to purchase common stock | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Contractual term | 10 years | |||||||||||
Incentive Stock Option | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock-based compensation | $ | $ 3,585 | |||||||||||
PSOs | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Contractual term | 10 years | |||||||||||
Options granted, number of shares | 0 | 2,737,000 | 4,246,000 | |||||||||
2007 Equity Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock authorized for issuance, increased | 4,600,000 | 10,000,000 | 8,000,000 | |||||||||
Carve-out percentage | 5.00% | |||||||||||
Number of shares available for grant | 2,686,000 | |||||||||||
2007 Equity Incentive Plan | Options to purchase common stock | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Employee options, vesting percentage, after first year | 25.00% | |||||||||||
Vesting period | 1 year | |||||||||||
Employee options, vesting percentage, monthly after first year | 0.02083% | |||||||||||
Contractual term | 10 years | 6 years | ||||||||||
2007 Equity Incentive Plan | Options to purchase common stock | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercise price, percentage of fair market value of common stock on grant date | 85.00% | |||||||||||
2007 Equity Incentive Plan | Incentive Stock Option | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercise price, percentage of fair market value of common stock on grant date | 100.00% | |||||||||||
2007 Equity Incentive Plan | Non Qualified Stock Option | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercise price, percentage of fair market value of common stock on grant date | 85.00% | |||||||||||
2007 Equity Incentive Plan | Non Qualified Stock Option | Minimum | 10% Stockholder [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercise price, percentage of fair market value of common stock on grant date | 110.00% | |||||||||||
2007 Equity Incentive Plan | Non Qualified Stock Option | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercise price, percentage of fair market value of common stock on grant date | 85.00% | |||||||||||
2007 Equity Incentive Plan | PSOs | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock-based compensation | $ | $ 0 | |||||||||||
2007 Equity Incentive Plan | PSOs | Creative leaders | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of annual bonus opportunity replaced | 50.00% | 50.00% | ||||||||||
2007 Equity Incentive Plan | PSOs and PSUs | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of tranches | tranche | 3 | |||||||||||
2007 Equity Incentive Plan | PSOs and PSUs | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 0.00% | |||||||||||
2007 Equity Incentive Plan | PSOs and PSUs | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting percentage | 200.00% | |||||||||||
2007 Employee Stock Purchase Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock authorized for issuance, increased | 4,000,000 | |||||||||||
Percentage of outstanding shares reserved for grant increase during each January 1 for the first eight calendar years | 1.00% | |||||||||||
Stock-based compensation | $ | $ 1,360 | $ 927 | $ 561 | |||||||||
Maximum shares issued over a plan period | 5,333,000 | |||||||||||
Common stock, reserved for future issuance | 667,000 | |||||||||||
Number of shares available for grant | 2,787,000 | |||||||||||
Maximum offering period share amount | 450,000 | 200,000 | 500,000 | |||||||||
2018 Equity Inducement Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Common stock, reserved for future issuance | 400,000 | 156,000 | ||||||||||
2018 Equity Inducement Plan | Non Qualified Stock Option | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Exercise price, percentage of fair market value of common stock on grant date | 100.00% |
STOCK OPTION AND OTHER BENEFI_4
STOCK OPTION AND OTHER BENEFIT PLANS - RSU, PSU and PSO Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted stock units ("RSUs") | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awarded and unvested, Number of Units Outstanding, beginning balance | 3,021 | 5,812 | 8,224 |
Granted, Number of Units Outstanding | 2,936 | 278 | 2,360 |
Vested, Number of Units Outstanding | (1,688) | (2,648) | (2,863) |
Forfeited, Number of Units Outstanding | (318) | (421) | (1,909) |
Awarded and unvested, Number of Units Outstanding, ending balance | 3,951 | 3,021 | 5,812 |
Awarded and unvested, Weighted Average Grant Date Fair Value, beginning balance | $ 3.01 | $ 2.96 | $ 3.33 |
Granted, Weighted Average Grant Date Fair Value | 6.84 | 5.90 | 2.31 |
Vested, Weighted Average Grant Date Fair Value | 3.27 | 3.24 | 3.45 |
Forfeited, Weighted Average Grant Date Fair Value | 4.17 | 2.71 | 3.01 |
Awarded and unvested, Weighted Average Grant Date Fair Value, ending balance | $ 5.66 | $ 3.01 | $ 2.96 |
Awarded and unvested, Weighted Average Remaining Contractual Term (Years) | 1 year 6 months 3 days | ||
Aggregate Intrinsic Value | $ 23,905 | ||
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Awarded and unvested, Number of Units Outstanding, beginning balance | 3,530 | 661 | |
Granted, Number of Units Outstanding | 2,780 | 2,909 | 661 |
Vested, Number of Units Outstanding | (700) | ||
Forfeited, Number of Units Outstanding | (193) | (40) | |
Awarded and unvested, Number of Units Outstanding, ending balance | 5,417 | 3,530 | 661 |
Expected to vest, Number of Units Outstanding | 276 | ||
Awarded and unvested, Weighted Average Grant Date Fair Value, beginning balance | $ 5.45 | $ 3.59 | |
Granted, Weighted Average Grant Date Fair Value | 6.46 | 5.85 | $ 3.59 |
Vested, Weighted Average Grant Date Fair Value | 4.59 | ||
Forfeited, Weighted Average Grant Date Fair Value | 6.14 | 4.03 | |
Awarded and unvested, Weighted Average Grant Date Fair Value, ending balance | 6.06 | $ 5.45 | $ 3.59 |
Expected to vest, Weighted Average Grant Date Fair Value | $ 3.61 | ||
Awarded and unvested, Weighted Average Remaining Contractual Term (Years) | 1 year 3 months 25 days | ||
Expected to vest, Weighted Average Remaining Contractual Term (Years) | 1 month 17 days | ||
Aggregate Intrinsic Value | $ 32,769 | ||
Expected to vest, Aggregate Intrinsic Value | $ 1,667 |
STOCK OPTION AND OTHER BENEFI_5
STOCK OPTION AND OTHER BENEFIT PLANS - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
PSOs | |||
Number of shares, beginning balances | 6,756,000 | 4,170,000 | |
Options granted, number of shares | 0 | 2,737,000 | 4,246,000 |
Options canceled, number of shares | (151,000) | (76,000) | |
Options exercised, number of shares | (173,000) | ||
Number of shares, ending balances | 6,583,000 | 6,756,000 | 4,170,000 |
Options vested and expected to vest, number of shares | 409,000 | ||
Options exercisable, number of shares | 3,339,000 | ||
Weighted average exercise price, beginning balances | $ 4.51 | $ 3.59 | |
Options granted, weighted average exercise price | 5.87 | $ 3.60 | |
Options canceled, weighted average exercise price | 3.59 | 3.97 | |
Options exercised, weighted average exercise price | 3.59 | ||
Weighted average exercise price, ending balances | 4.54 | $ 4.51 | $ 3.59 |
Options vested and expected to vest, weighted average exercise price | 3.60 | ||
Options exercisable, weighted average exercise price | $ 3.60 | ||
Weighted average remaining contractual term, options outstanding | 8 years 1 month 24 days | ||
Weighted average contractual term, options expected to vest | 7 years 10 months 6 days | ||
Weighted average remaining contractual term, Options exercisable | 7 years 9 months 18 days | ||
Aggregate intrinsic value, options outstanding | $ 10,765 | ||
Aggregate intrinsic value, Options vested and expected to vest | 1,002 | ||
Aggregate intrinsic value, options exercisable | $ 8,188 | ||
Options to purchase common stock | |||
Number of shares, beginning balances | 18,491,000 | 16,932,000 | 15,813,000 |
Options granted, number of shares | 815,000 | (6,092,000) | 5,346,000 |
Options canceled, number of shares | (1,219,000) | (1,213,000) | (2,716,000) |
Options exercised, number of shares | (1,799,000) | (3,320,000) | (1,511,000) |
Number of shares, ending balances | 16,288,000 | 18,491,000 | 16,932,000 |
Options exercisable, number of shares | 9,846,000 | ||
Weighted average exercise price, beginning balances | $ 3.39 | $ 2.78 | $ 2.74 |
Options granted, weighted average exercise price | 7.58 | 4.82 | 3.10 |
Options canceled, weighted average exercise price | 4.73 | 3.54 | 3.16 |
Options exercised, weighted average exercise price | 2.81 | 2.88 | 2.73 |
Weighted average exercise price, ending balances | 3.56 | $ 3.39 | $ 2.78 |
Options exercisable, weighted average exercise price | $ 3.21 | ||
Weighted average remaining contractual term, options outstanding | 7 years 29 days | ||
Weighted average remaining contractual term, Options exercisable | 6 years 8 months 1 day | ||
Aggregate intrinsic value, options outstanding | $ 42,165 | ||
Aggregate intrinsic value, options exercisable | $ 28,331 |
STOCK OPTION AND OTHER BENEFI_6
STOCK OPTION AND OTHER BENEFIT PLANS - Weighted Average Assumptions (Details) - $ / shares | 7 Months Ended | 12 Months Ended | 91 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 04, 2015 | |
PSOs | |||||
Black-Sholes Valuation Assumptions | |||||
Risk-free interest rate | 2.89% | 2.07% | |||
Expected volatility | 60.20% | 63.30% | |||
Expected term (years) | 5 years 11 months 23 days | 5 years 9 months 21 days | |||
Stock Based Compensation Additional Details | |||||
Contractual term | 10 years | ||||
Weighted-average fair value of stock options granted | $ 3.38 | $ 2.09 | |||
Granted (in shares) | 0 | 2,737,000 | 4,246,000 | ||
Options to purchase common stock | |||||
Black-Sholes Valuation Assumptions | |||||
Risk-free interest rate | 1.88% | 2.63% | 1.76% | ||
Expected volatility | 57.20% | 57.90% | 57.80% | ||
Expected term (years) | 4 years | 4 years | 4 years | ||
Stock Based Compensation Additional Details | |||||
Weighted-average fair value of stock options granted | $ 3.44 | $ 2.25 | $ 1.42 | ||
Granted (in shares) | 815,000 | (6,092,000) | 5,346,000 | ||
Options to purchase common stock | Minimum | |||||
Stock Based Compensation Additional Details | |||||
Contractual term | 6 years | ||||
Options to purchase common stock | Maximum | |||||
Stock Based Compensation Additional Details | |||||
Contractual term | 10 years | ||||
Options to purchase common stock | 2007 Equity Incentive Plan | |||||
Stock Based Compensation Additional Details | |||||
Contractual term | 10 years | 6 years |
STOCK OPTION AND OTHER BENEFI_7
STOCK OPTION AND OTHER BENEFIT PLANS - Stock-Based Compensation Expense (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 17,383 | $ 24,592 | $ 15,063 |
Total compensation expense related to unvested awards not yet recognized | $ 38,869 | ||
Quoted closing price of Company's common stock | $ 6.05 | ||
Cash proceed from option exercise, net | $ 3,305 | 5,643 | 2,564 |
2007 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 1,360 | 927 | 561 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 10,466 | 12,807 | 6,460 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 1,700 | 2,795 | 1,289 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 5,217 | 8,990 | 7,314 |
Options to purchase common stock | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 7,043 | 6,386 | |
Total compensation expense related to unvested awards not yet recognized | $ 11,214 | ||
Unrecognized compensation expense recognized over weighted average period | 1 year 9 months 18 days | ||
Total intrinsic value exercised | $ 7,806 | 10,957 | 1,732 |
Restricted stock units ("RSUs") | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Vesting period | 4 years | ||
Vesting percentage on or around the one-year anniversary | 25.00% | ||
Total stock-based compensation expense | $ 6,559 | 8,084 | 10,127 |
Total compensation expense related to unvested awards not yet recognized | $ 19,947 | ||
Unrecognized compensation expense recognized over weighted average period | 1 year 6 months 3 days | ||
Incentive Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | 3,585 | ||
Performance stock options ("PSOs") | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation expense | $ 2,421 | $ 9,195 | $ 790 |
PSOs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation expense related to unvested awards not yet recognized | $ 99 | ||
Unrecognized compensation expense recognized over weighted average period | 11 months 12 days | ||
PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total compensation expense related to unvested awards not yet recognized | $ 7,609 | ||
Unrecognized compensation expense recognized over weighted average period | 1 month 17 days |
STOCK OPTION AND OTHER BENEFI_8
STOCK OPTION AND OTHER BENEFIT PLANS - 401(k) Defined Contribution Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
STOCK OPTION AND OTHER BENEFIT PLANS | |||
Matching contributions made by the Company | $ 0 | $ 0 |
INCOME TAXES - Components by Ju
INCOME TAXES - Components by Jurisdiction (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract] | |||||||||||
United States | $ 7,047 | $ (12,396) | $ (97,503) | ||||||||
Foreign | 2,295 | (254) | (893) | ||||||||
Income/(loss) before income taxes | $ 11,431 | $ (5,437) | $ 2,507 | $ 841 | $ (1,273) | $ (138) | $ (4,208) | $ (7,031) | $ 9,342 | $ (12,650) | $ (98,396) |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Benefit/(Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | ||||||||||
Federal | $ 373 | $ (96) | $ 947 | |||||||
State | (10) | (8) | (10) | |||||||
Foreign | (590) | (500) | (521) | |||||||
Current Income Tax Expense (Benefit), Total | (227) | (604) | 416 | |||||||
Deferred: | ||||||||||
Federal | 294 | |||||||||
Foreign | (244) | 55 | 116 | |||||||
Deferred Income Tax Expense (Benefit), Total | (244) | 55 | 410 | |||||||
Total: | ||||||||||
Federal | 373 | (96) | 1,241 | |||||||
State | (10) | (8) | (10) | |||||||
Foreign | (834) | (445) | (405) | |||||||
Income tax benefit/(provision) | $ (641) | $ 348 | $ (178) | $ (49) | $ (118) | $ (207) | $ (175) | $ (471) | $ (549) | $ 826 |
INCOME TAXES - Income Tax Rate
INCOME TAXES - Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Tax at federal statutory rate | 21.00% | 21.00% | 34.00% |
Meals and entertainment | 3.10% | (2.00%) | (0.10%) |
Research and development credit | (41) | 21.3 | 2.5 |
Stock-based compensation | (29.00%) | 17.90% | (2.00%) |
Revenue from contracts with customers | (14.60%) | ||
Other | (0.60%) | (3.10%) | 0.60% |
Global intangible low-taxed income | 4.20% | (1.70%) | |
Valuation allowance | 17.50% | (35.30%) | (33.80%) |
Executive compensation | 6.10% | ||
Foreign tax credit | 23.70% | (7.80%) | (0.40%) |
Effective tax rate | 5.00% | (4.30%) | 0.80% |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Fixed assets | $ 280 | $ 35 |
Net operating loss carryforwards | 48,993 | 50,216 |
Accruals, reserves and other | 5,336 | 11,025 |
Foreign tax credit | 2,905 | 5,246 |
Stock-based compensation | 5,882 | 4,787 |
Research and development credit | 22,630 | 17,945 |
Capitalized research and development | 7,189 | 2,835 |
Intangible assets | 355 | |
Other | 2,951 | 2,888 |
Total deferred tax assets | 96,521 | 94,977 |
Deferred tax liabilities: | ||
Fixed assets | (40) | (73) |
Intangible assets | (513) | |
Net deferred tax assets | 96,481 | 94,391 |
Less valuation allowance | (96,316) | (93,982) |
Net deferred tax liability | 165 | 409 |
US | ||
Deferred tax assets: | ||
Fixed assets | 209 | |
Net operating loss carryforwards | 48,968 | 50,119 |
Accruals, reserves and other | 5,202 | 10,853 |
Foreign tax credit | 2,905 | 5,118 |
Stock-based compensation | 5,882 | 4,787 |
Research and development credit | 22,630 | 17,945 |
Capitalized research and development | 7,189 | 2,835 |
Intangible assets | 355 | |
Other | 2,951 | 2,888 |
Total deferred tax assets | 96,291 | 94,545 |
Deferred tax liabilities: | ||
Fixed assets | (54) | |
Intangible assets | (513) | |
Net deferred tax assets | 96,291 | 93,978 |
Less valuation allowance | (96,291) | (93,978) |
Foreign Tax Authority | ||
Deferred tax assets: | ||
Fixed assets | 71 | 35 |
Net operating loss carryforwards | 25 | 97 |
Accruals, reserves and other | 134 | 172 |
Foreign tax credit | 128 | |
Total deferred tax assets | 230 | 432 |
Deferred tax liabilities: | ||
Fixed assets | (40) | (19) |
Net deferred tax assets | 190 | 413 |
Less valuation allowance | (25) | (4) |
Net deferred tax liability | $ 165 | $ 409 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Contingency [Line Items] | |||
Accumulated earnings of foreign subsidiaries | $ 2,953 | ||
Valuation allowance released as a result of acquisition to recognize income tax benefit | 0 | $ 0 | $ 294 |
Valuation allowance movements | 2,334 | $ 4,471 | |
Federal Tax | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 211,330 | ||
U S State | |||
Income Tax Contingency [Line Items] | |||
Net operating loss carryforwards | 91,722 | ||
Federal Research And Development Credits | Research and Development Tax Credit Carryforward | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforward amount | 14,327 | ||
California Research And Development Tax Credit | Research and Development Tax Credit Carryforward | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforward amount | 23,406 | ||
Foreign Tax Authority | |||
Income Tax Contingency [Line Items] | |||
Tax credit carryforward amount | $ 2,895 |
INCOME TAXES - Unrecognized tax
INCOME TAXES - Unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of total amounts of unrecognized tax benefits | |||
Unrecognized Tax Benefits, Beginning Balance | $ 20,718 | $ 13,391 | |
Reductions of tax positions taken during previous years | (8,226) | (59) | |
Additions based on uncertain tax positions related to the current period | 2,598 | 3,996 | |
Additions based on uncertain tax positions related to prior periods | 3,400 | ||
Cumulative translation adjustment | (6) | (10) | |
Unrecognized Tax Benefits, Ending Balance | 15,084 | 20,718 | $ 13,391 |
Unrecognized tax benefit netted against deferred tax assets | 15,084 | 20,548 | |
Accrued interest and penalty expense related to estimated obligations for unrecognized tax benefits | 0 | 150 | |
Accrued interest and penalty expense related to estimated obligations for unrecognized tax benefits, amount recognized | $ 23 | $ 27 | $ 96 |
SEGMENT INFORMATION AND OPERA_3
SEGMENT INFORMATION AND OPERATIONS BY GEOGRAPHIC AREA - Revenue (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Long-lived assets (primarily consist of property and equipment) | |||
Number of Operating Segments | segment | 1 | ||
Revenues | $ 411,381 | $ 366,561 | $ 286,827 |
United States of America | |||
Long-lived assets (primarily consist of property and equipment) | |||
Revenues | 320,343 | 280,264 | 216,468 |
Americas, excluding the United States | |||
Long-lived assets (primarily consist of property and equipment) | |||
Revenues | 25,240 | 21,903 | 15,976 |
EMEA | |||
Long-lived assets (primarily consist of property and equipment) | |||
Revenues | 45,700 | 41,585 | 33,180 |
APAC | |||
Long-lived assets (primarily consist of property and equipment) | |||
Revenues | $ 20,098 | $ 22,809 | $ 21,203 |
SEGMENT INFORMATION AND OPERA_4
SEGMENT INFORMATION AND OPERATIONS BY GEOGRAPHIC AREA - Long-Lived Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Long-lived assets (primarily consist of property and equipment) | ||
Long-Lived Assets | $ 17,643 | $ 13,888 |
United States of America | ||
Long-lived assets (primarily consist of property and equipment) | ||
Long-Lived Assets | 16,738 | 12,653 |
Rest of the World | ||
Long-lived assets (primarily consist of property and equipment) | ||
Long-Lived Assets | $ 905 | $ 1,235 |
RESTRUCTURING (Details)
RESTRUCTURING (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | $ 759 | $ 294 | $ 759 | $ 271 | |
Charges to operations | $ 160 | 80 | 240 | 6,019 | |
Non-cash charges/adjustments | (294) | 190 | |||
Charges settled in cash | (705) | (5,721) | |||
Ending Balance | 294 | 759 | |||
Restructuring Workforce | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 143 | 143 | |||
Charges to operations | 160 | 4,319 | |||
Non-cash charges/adjustments | 146 | ||||
Charges settled in cash | (303) | (4,322) | |||
Ending Balance | 143 | ||||
Restructuring Facility | |||||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | $ 616 | 294 | 616 | 271 | |
Charges to operations | 80 | 1,700 | |||
Non-cash charges/adjustments | (294) | 44 | |||
Charges settled in cash | (402) | (1,399) | |||
Ending Balance | 294 | 616 | |||
Employee Termination | |||||
Restructuring Reserve [Roll Forward] | |||||
Charges to operations | $ 0 | $ 240 | $ 6,019 |
QUARTERLY FINANCIAL DATA (una_3
QUARTERLY FINANCIAL DATA (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
QUARTERLY FINANCIAL DATA (unaudited) | |||||||||||
Revenue | $ 112,879 | $ 107,077 | $ 95,540 | $ 95,885 | $ 95,640 | $ 99,285 | $ 90,193 | $ 81,443 | |||
Cost of revenue: | |||||||||||
Platform commissions, royalties and other | 38,278 | 36,758 | 32,806 | 32,813 | 32,508 | 34,384 | 32,386 | 29,167 | $ 140,655 | $ 128,445 | $ 103,499 |
Impairment of prepaid royalties and minimum guarantees | 457 | 612 | 99 | 457 | 711 | 27,323 | |||||
Impairment and amortization of intangible assets | 1,039 | 1,040 | 1,056 | 1,252 | 2,017 | 4,167 | 1,468 | 1,467 | 4,387 | 9,119 | 10,331 |
Total cost of revenue | 39,317 | 37,798 | 33,862 | 34,522 | 35,137 | 38,551 | 33,854 | 30,733 | 145,499 | 138,275 | 141,153 |
Gross profit | 73,562 | 69,279 | 61,678 | 61,363 | 60,503 | 60,734 | 56,339 | 50,710 | 265,882 | 228,286 | 145,674 |
Operating expenses: | |||||||||||
Research and development | 25,877 | 22,968 | 19,736 | 26,546 | 25,553 | 23,839 | 22,832 | 22,710 | 95,127 | 94,934 | 92,420 |
Sales and marketing | 31,013 | 46,140 | 35,040 | 28,105 | 28,435 | 28,874 | 29,741 | 26,810 | 140,298 | 113,860 | 104,356 |
General and administrative | 5,751 | 5,879 | 4,951 | 6,635 | 8,074 | 8,095 | 7,608 | 7,890 | 23,216 | 31,667 | 34,425 |
Restructuring charge | 160 | 80 | 240 | 6,019 | |||||||
Total operating expenses | 62,641 | 74,987 | 59,727 | 61,286 | 62,062 | 60,968 | 60,181 | 57,490 | 258,641 | 240,701 | 237,220 |
Income/(loss) from operations | 10,921 | (5,708) | 1,951 | 77 | (1,559) | (234) | (3,842) | (6,780) | 7,241 | (12,415) | (91,546) |
Interest and other income/(expense), net | 510 | 271 | 556 | 764 | 286 | 96 | (366) | (251) | 2,101 | (235) | (6,850) |
Income/(loss) before income taxes | 11,431 | (5,437) | 2,507 | 841 | (1,273) | (138) | (4,208) | (7,031) | 9,342 | (12,650) | (98,396) |
Income tax (provision)/benefit | (641) | 348 | (178) | (49) | (118) | (207) | (175) | (471) | (549) | 826 | |
Net income/(loss) | $ 10,790 | $ (5,089) | $ 2,507 | $ 663 | $ (1,322) | $ (256) | $ (4,415) | $ (7,206) | $ 8,871 | $ (13,199) | $ (97,570) |
Net income/(loss) per share | |||||||||||
Basic net income/(loss) per share | $ 0.07 | $ (0.03) | $ 0.02 | $ 0 | $ (0.01) | $ 0 | $ (0.03) | $ (0.05) | $ 0.06 | $ (0.09) | $ (0.72) |
Diluted net income/(loss) per share | $ 0.07 | $ (0.03) | $ 0.02 | $ 0 | $ (0.01) | $ 0 | $ (0.03) | $ (0.05) | $ 0.06 | $ (0.09) | $ (0.72) |