Etsy (ETSY) 10-Q 2 Aug 19 2019 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2019	Jul. 26, 2019
Cover page.
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Registrant Name	ETSY INC
Entity Central Index Key	0001370637
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-36911
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-4898921
Entity Address, Address Line One	117 Adams Street
Entity Address, City or Town	Brooklyn
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11201
City Area Code	718
Local Phone Number	880-3660
Title of 12(b) Security	Common Stock
Trading Symbol	ETSY
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		120,459,900

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 359,159	$ 366,985
Short-term investments	274,673	257,302
Accounts receivable, net of allowance for doubtful accounts of $2,868 and $4,720 as of June 30, 2019 and December 31, 2018, respectively	10,585	12,244
Prepaid and other current assets	34,647	22,686
Funds receivable and seller accounts	64,589	21,072
Total current assets	743,653	680,289
Restricted cash	5,341	5,341
Property and equipment, net of accumulated depreciation and amortization of $101,248 and $85,440 as of June 30, 2019 and December 31, 2018, respectively	128,409	120,179
Goodwill	37,342	37,482
Intangible assets, net of accumulated amortization of $10,332 and $7,378 as of June 30, 2019 and December 31, 2018, respectively	33,142	34,589
Deferred tax assets	23,319	23,464
Long-term investments	25,438	0
Other assets	25,131	507
Total assets	1,021,775	901,851
Current liabilities:
Accounts payable	20,504	26,545
Accrued expenses	55,687	49,158
Finance lease obligations—current	9,306
Finance lease obligations—current		3,884
Funds payable and amounts due to sellers	64,589	21,072
Deferred revenue	8,011	7,478
Other current liabilities	8,413	3,925
Total current liabilities	166,510	112,062
Finance lease obligations—net of current portion	57,409
Finance lease obligations—net of current portion		2,095
Deferred tax liabilities	32,642	30,455
Facility financing obligation	0	59,991
Long-term debt, net	284,011	276,486
Other liabilities	38,902	19,864
Total liabilities	579,474	500,953
Commitments and contingencies (Note 11)
Stockholders’ equity:
Common stock ($0.001 par value, 1,400,000,000 shares authorized as of June 30, 2019 and December 31, 2018; 120,335,524 and 119,771,702 shares issued and outstanding as of June 30, 2019 and December 31, 2018, respectively)	120	120
Preferred stock ($0.001 par value, 25,000,000 shares authorized as of June 30, 2019 and December 31, 2018)	0	0
Additional paid-in capital	573,611	562,033
Accumulated deficit	(124,015)	(153,442)
Accumulated other comprehensive loss	(7,415)	(7,813)
Total stockholders’ equity	442,301	400,898
Total liabilities and stockholders’ equity	$ 1,021,775	$ 901,851

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 2,868	$ 4,720
Intangible assets, accumulated amortization	10,332	7,378
Property and equipment, accumulated depreciation and amortization	$ 101,248	$ 85,440
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,400,000,000	1,400,000,000
Common stock, shares issued (in shares)	120,335,524	119,771,702
Common stock, shares outstanding (in shares)	120,335,524	119,771,702
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	25,000,000	25,000,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Revenue	$ 181,095	$ 132,387	$ 350,434	$ 253,299
Cost of revenue	58,605	45,409	111,263	86,704
Gross profit	122,490	86,978	239,171	166,595
Operating expenses:
Marketing	45,994	28,941	81,438	55,135
Product development	28,765	23,568	53,712	44,289
General and administrative	29,883	21,707	54,530	40,611
Total operating expenses	104,642	74,216	189,680	140,035
Income from operations	17,848	12,762	49,491	26,560
Other (expense) income:
Interest expense	(4,678)	(6,125)	(9,331)	(9,889)
Interest and other income	3,391	2,438	6,776	3,535
Foreign exchange (loss) gain	(192)	(4,450)	870	(2,600)
Total other expense	(1,479)	(8,137)	(1,685)	(8,954)
Income before income taxes	16,369	4,625	47,806	17,606
Benefit (provision) for income taxes	1,854	(1,246)	1,996	(1,260)
Net income	$ 18,223	$ 3,379	$ 49,802	$ 16,346
Net income per share attributable to common stockholders:
Basic (in dollars per share)	$ 0.15	$ 0.03	$ 0.42	$ 0.14
Diluted (in dollars per share)	$ 0.14	$ 0.03	$ 0.38	$ 0.13
Weighted-average common shares outstanding:
Basic (in shares)	120,198,526	119,450,194	119,848,289	120,819,201
Diluted (in shares)	130,807,743	125,551,759	130,463,025	126,186,664

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net income	$ 18,223	$ 3,379	$ 49,802	$ 16,346
Other comprehensive income (loss):
Cumulative translation adjustment	982	(276)	(79)	(152)
Unrealized gains (losses) on marketable securities, net of tax	378	9	477	(17)
Total other comprehensive income (loss)	1,360	(267)	398	(169)
Comprehensive income	$ 19,583	$ 3,112	$ 50,200	$ 16,177

Consolidated Statement of Chang

Consolidated Statement of Changes in Stockholders’ Equity (Unaudited) - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Balance at beginning of period (in shares) at Dec. 31, 2017		121,769,238
Balance at beginning of period at Dec. 31, 2017	$ 396,894	$ 122	$ 499,441	$ (96,290)	$ (6,379)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	6,704		6,704
Exercise of vested options (in shares)		887,906
Exercise of vested options	10,249	$ 1	10,248
Issuance of convertible senior notes, net of issuance costs and taxes	54,184		54,184
Purchase of capped call, net of taxes	(26,243)		(26,243)
Vesting of restricted stock units, net of shares withheld (in shares)		104,849
Vesting of restricted stock units, net of shares withheld	(1,780)		(1,780)
Stock repurchase (in shares)		(2,807,393)
Stock repurchase	(68,586)	$ (3)		(68,583)
Other comprehensive (loss) income	98				98
Net income	12,967			12,967
Balance at period end (in shares) at Mar. 31, 2018		119,954,600
Balance at period end at Mar. 31, 2018	384,487	$ 120	542,554	(151,906)	(6,281)
Balance at beginning of period (in shares) at Dec. 31, 2017		121,769,238
Balance at beginning of period at Dec. 31, 2017	396,894	$ 122	499,441	(96,290)	(6,379)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive (loss) income	(169)
Net income	16,346
Balance at period end (in shares) at Jun. 30, 2018		119,545,384
Balance at period end at Jun. 30, 2018	370,091	$ 120	546,121	(169,602)	(6,548)
Balance at beginning of period (in shares) at Mar. 31, 2018		119,954,600
Balance at beginning of period at Mar. 31, 2018	384,487	$ 120	542,554	(151,906)	(6,281)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	9,179		9,179
Exercise of vested options (in shares)		59,736
Exercise of vested options	476		476
Issuance of convertible senior notes, net of issuance costs and taxes	30		30
Vesting of restricted stock units, net of shares withheld (in shares)		253,989
Vesting of restricted stock units, net of shares withheld	(6,118)		(6,118)
Stock repurchase (in shares)		(722,941)
Stock repurchase	(21,075)			(21,075)
Other comprehensive (loss) income	(267)				(267)
Net income	3,379			3,379
Balance at period end (in shares) at Jun. 30, 2018		119,545,384
Balance at period end at Jun. 30, 2018	$ 370,091	$ 120	546,121	(169,602)	(6,548)
Balance at beginning of period (in shares) at Dec. 31, 2018	119,771,702	119,771,702
Balance at beginning of period at Dec. 31, 2018	$ 400,898	$ 120	562,033	(153,442)	(7,813)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	8,616		8,616
Exercise of vested options (in shares)		534,693
Exercise of vested options	5,930	$ 1	5,929
Vesting of restricted stock units, net of shares withheld (in shares)		159,403
Vesting of restricted stock units, net of shares withheld	$ (5,672)		(5,672)
Stock repurchase (in shares)	(532,412)	(532,412)
Stock repurchase	$ (27,492)	$ (1)		(27,491)
Other comprehensive (loss) income	(962)				(962)
Net income	31,579			31,579
Balance at period end (in shares) at Mar. 31, 2019		119,933,386
Balance at period end at Mar. 31, 2019	$ 420,013	$ 120	570,906	(142,238)	(8,775)
Balance at beginning of period (in shares) at Dec. 31, 2018	119,771,702	119,771,702
Balance at beginning of period at Dec. 31, 2018	$ 400,898	$ 120	562,033	(153,442)	(7,813)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of vested options (in shares)	688,890
Other comprehensive (loss) income	$ 398
Net income	$ 49,802
Balance at period end (in shares) at Jun. 30, 2019	120,335,524	120,335,524
Balance at period end at Jun. 30, 2019	$ 442,301	$ 120	573,611	(124,015)	(7,415)
Balance at beginning of period (in shares) at Mar. 31, 2019		119,933,386
Balance at beginning of period at Mar. 31, 2019	420,013	$ 120	570,906	(142,238)	(8,775)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	11,280		11,280
Exercise of vested options (in shares)		154,197
Exercise of vested options	1,910		1,910
Vesting of restricted stock units, net of shares withheld (in shares)		247,941
Vesting of restricted stock units, net of shares withheld	(10,485)		(10,485)
Other comprehensive (loss) income	1,360				1,360
Net income	$ 18,223			18,223
Balance at period end (in shares) at Jun. 30, 2019	120,335,524	120,335,524
Balance at period end at Jun. 30, 2019	$ 442,301	$ 120	$ 573,611	$ (124,015)	$ (7,415)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities
Net income	$ 49,802	$ 16,346
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	18,919	15,071
Depreciation and amortization expense	19,952	12,677
Bad debt expense	4,146	1,961
Foreign exchange (gain) loss	(1,240)	2,849
Other non-cash losses, net	6,314	3,914
Deferred income taxes	(1,996)	(377)
Changes in operating assets and liabilities:
Current assets	(51,284)	(1,805)
Non-current assets	2,037	32
Current liabilities	37,626	11,848
Non-current liabilities	(2,982)	4,245
Net cash provided by operating activities	81,294	66,761
Cash flows from investing activities
Cash paid for asset acquisition	0	(35,323)
Purchases of property and equipment	(3,747)	(304)
Development of internal-use software	(4,669)	(8,146)
Purchases of marketable securities	(305,391)	(234,149)
Sales of marketable securities	265,852	50,472
Net cash used in investing activities	(47,955)	(227,450)
Cash flows from financing activities
Payment of tax obligations on vested equity awards	(16,157)	(7,898)
Repurchase of stock	(27,492)	(89,661)
Proceeds from exercise of stock options	7,840	10,725
Proceeds from issuance of convertible senior notes	0	345,000
Payment of debt issuance costs	(1,392)	(9,561)
Purchase of capped call	0	(34,224)
Payments on finance lease obligations	(5,475)
Payments on finance lease obligations		(3,421)
Payments on facility financing obligation	0	(5,469)
Other financing, net	2,072	1,023
Net cash (used in) provided by financing activities	(40,604)	206,514
Effect of exchange rate changes on cash	(561)	(3,447)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(7,826)	42,378
Cash, cash equivalents, and restricted cash at beginning of period	372,326	320,783
Cash, cash equivalents, and restricted cash at end of period	364,500	363,161
Supplemental non-cash disclosures:
Stock-based compensation capitalized in development of capitalized software	977	812
Additions to development of internal-use software and property and equipment included in accounts payable and accrued expenses	2,637	1,663
Additions to intangible assets included in other current liabilities	1,720	0
Debt issuance costs included in accounts payable and accrued expenses	0	406
Right-of-use assets obtained in exchange for new lease liabilities:
Finance leases	333
Finance leases		690
Reconciliation of cash, cash equivalents, and restricted cash
Total cash, cash equivalents, and restricted cash	$ 372,326	$ 320,783

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Summary of Significant Accounting Policies	Note 1—Basis of Presentation and Summary of Significant Accounting Policies Description of Business Etsy, Inc. (the “Company” or “Etsy”) is the global marketplace for unique and creative goods. The Company generates revenue primarily from transaction and listing fees, Etsy Payments fees, Promoted Listing fees, Etsy Shipping Label sales, Pattern fees, and Etsy Plus subscription fees. Basis of Consolidation The Consolidated Financial Statements include the accounts of Etsy and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Correction of Errors During the three months ended June 30, 2018 , the Company recorded $2.8 million of revenue and $1.4 million of cost of revenue as corrections of errors related to the years ended December 31, 2017 and 2016. The Company has concluded that the errors and their correction were not material to the Consolidated Financial Statements for any of the periods impacted nor are they material to the 2018 Consolidated Financial Statements. Unaudited Interim Financial Information The accompanying Consolidated Balance Sheet as of June 30, 2019 , the Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2019 and 2018 , the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018 and the Consolidated Statement of Changes in Stockholders’ Equity for the three and six months ended June 30, 2019 and 2018 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual Consolidated Financial Statements except for new accounting standards adopted as disclosed below, and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the Company’s financial position as of June 30, 2019 , results of operations for the three and six months ended June 30, 2019 and 2018 and cash flows for the six months ended June 30, 2019 and 2018 . The results for these interim periods are not necessarily indicative of the results to be anticipated for the full annual period or any future period. The financial data and the other information disclosed in these Notes to the Consolidated Financial Statements related to these three and six month periods are unaudited. These unaudited interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019 (the “Annual Report”). During the first quarter of 2019, the Company adopted the accounting principles outlined within ASU 2016-02 —Leases, as described below . There have been no additional material changes in the Company’s significant accounting policies from those that were disclosed in the Annual Report. Use of Estimates The preparation of the Company’s Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets, liabilities, and equity at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. The accounting estimates that require management’s most difficult and subjective judgments include: revenue recognition, determining the nature and timing of satisfaction of performance obligations and stand-alone selling price for use in allocating the subscription price of Etsy Plus; leases, determining the incremental borrowing rate; income taxes, including the estimate of annual effective tax rate at interim periods, assessment of valuation allowances, and evaluation of uncertain tax positions; website development costs and internal-use software; purchase price allocations for business combinations and contingent consideration; valuation of goodwill and intangible assets; stock-based compensation; and fair value of financial instruments . The Company evaluates its estimates and judgments on an ongoing basis and revises them when necessary. Actual results may differ from the original or revised estimates. Revenue Recognition The Company’s revenue is diversified; generated from a mix of marketplace activities and other optional services to help Etsy sellers generate more sales and scale their businesses. Revenues are recognized as the Company transfers control of promised goods or services to Etsy sellers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company evaluates whether it is appropriate to recognize revenue on a gross or net basis based upon its evaluation of whether the Company obtains control of the specified goods or services by considering if it is primarily responsible for fulfillment of the promise, has inventory risk, and has the latitude in establishing pricing and selecting suppliers, among other factors. Based on its evaluation of these factors, revenue is recorded either gross or net of costs associated with the transaction. With the exception of Etsy Shipping Labels, the Company’s revenues are recognized on a gross basis. Sales and usage-based taxes are excluded from revenues. See “ Note 2—Revenue ” for additional information regarding revenue recognition. Income Taxes The Company’s income tax (provision) benefit for interim periods is determined using an estimate of its annual effective tax rate adjusted for discrete items, if any, for relevant interim periods. The Company updates its estimate of the annual effective tax rate each quarter and makes cumulative adjustments if its estimated annual tax rate changes. The Company’s quarterly tax provision and quarterly estimate of its annual effective tax rate are subject to significant variations due to several factors, including variability in predicting its pretax and taxable income and the mix of jurisdictions to which those relate, changes of expenses or losses for which tax benefits are not recognized, recording of excess tax benefits related to stock-based compensation and changes in the laws, regulations, and administrative practices of the jurisdictions in which the Company operates. Net Income Per Share Basic net income per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by dividing net income for the period by the weighted-average number of shares of common stock and potentially dilutive common stock outstanding during the period. Net income in the diluted net income per share calculation is adjusted for income or loss from fair value adjustments on instruments accounted for as liabilities, but which may be settled in shares. The dilutive effect of outstanding options and stock-based compensation awards is reflected in diluted net income per share by application of the treasury stock method. Since the Company expects to settle in cash the principal outstanding under the 0% Convertible Senior Notes due 2023 the Company issued in March 2018 (the “Notes,” see “ Note 10—Debt ”), it uses the treasury stock method when calculating the potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share of common stock when the average market price of the Company’s common stock for a given period exceeds the conversion price of $36.27 per share. The calculation of diluted net income per share excludes all anti-dilutive common shares. Cash and Cash Equivalents, and Short- and Long-term Investments The Company considers all investments with an original maturity of three months or less at time of purchase to be cash equivalents. Cash restricted by third parties is not considered cash and cash equivalents. Short-term investments, consisting primarily of commercial paper, United States government and agency securities, and corporate bonds with original maturities of greater than three months but less than one year when purchased, are classified as available-for-sale and are reported at fair value using the specific identification method. Long-term investments, consisting primarily of corporate bonds with original maturities of greater than twelve months but less than 37 months when purchased, are classified as available-for-sale and are reported at fair value using the specific identification method. Unrealized gains and losses are excluded from earnings and reported as a component of other comprehensive income (loss), net of related estimated income tax provisions or benefits. The following table provides cash and cash equivalents, and short- and long-term investments within the Consolidated Balance Sheets as of the dates indicated (in thousands): As of As of Cash and cash equivalents $ 359,159 $ 366,985 Short-term investments 274,673 257,302 Long-term investments 25,438 — Total cash and cash equivalents, and short- and long-term investments $ 659,270 $ 624,287 Leases At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Operating leases are included in other assets, other current liabilities, and other liabilities on the Company’s Consolidated Balance Sheets. Finance leases are included in property and equipment, net, finance lease obligations, current, and finance lease obligations, net of current portion on the Company’s Consolidated Balance Sheets. Most leases with a term greater than one year are recognized on the Consolidated Balance Sheet as right-of-use (“ROU”) assets, lease obligations and, if applicable, long-term lease obligations in the line items cited above. The Company has elected not to recognize leases with terms of one year or less on the Consolidated Balance Sheets. Lease obligations and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. As the interest rate implicit in lease contracts is typically not readily determinable, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the ROU asset may be required for items such as initial direct costs paid or incentives received. The lease term may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The components of a lease should be split into three categories: lease components, including land, building, or other similar components; non-lease components, including common area maintenance, maintenance, consumables, or other similar components; and non-components, including property taxes, insurance, or other similar components. However, the Company has elected to combine lease and non-lease components as a single component. The lease expense is recognized over the expected term on a straight-line basis. Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13 —Financial Instruments—Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments , and additional changes, modifications, clarifications, or interpretations related to this guidance thereafter, which require a reporting entity to estimate credit losses on certain types of financial instruments, and present assets held at amortized cost and available-for-sale debt securities at the amount expected to be collected. The new guidance is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its Consolidated Financial Statements. 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, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new guidance is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its Consolidated Financial Statements. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02 —Leases (Topic 842), and additional changes, modifications, clarifications, or interpretations related to this guidance thereafter, which require a reporting entity to recognize ROU assets and lease liabilities on the balance sheet for operating leases to increase the transparency and comparability. Disclosure requirements have been enhanced with the objective of enabling financial statement users to assess the amount, timing, and uncertainty of cash flows arising from leases. The Company adopted this standard in the first quarter of 2019, effective as of January 1, 2019, using the modified retrospective approach utilizing transition guidance introduced in ASU 2018-11— Leases: Targeted Improvements , and elected the ‘package of practical expedients’ permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease identification, classification, and initial direct costs. The Company did not elect the hindsight practical expedient which permits entities to use hindsight in determining the lease term and assessing impairment. The Company also elected to continue to recognize lease payments related to short-term leases as an expense on a straight-line basis over the lease term. Upon adoption, the Company recognized new ROU assets and lease obligations on the Consolidated Balance Sheet for our operating leases of $25.4 million and $27.8 million , respectively. Additionally, upon adoption the Company renamed its capital lease obligations, current and capital lease obligations, net of current to finance lease obligations, current and finance lease obligations, net of current portion, respectively, in the Consolidated Balance Sheets. In 2014 the Company applied build-to-suit accounting treatment to its headquarters lease in Brooklyn, New York, as the Company was deemed the accounting owner of the construction project because of the Company’s involvement in the build-out of the space. Upon transition, the Company derecognized the facility financing obligation and related building assets recorded as a result of the failed sale and leaseback transactions and recorded any difference as a cumulative-effect adjustment to accumulated deficit. The adoption of this standard had a material impact on the Company’s financial position but did not and is not expected to significantly affect the Company’s results of operations. The Company has derecognized the existing facility financing obligation and existing building asset for sale-leaseback transactions that currently do not qualify for sale accounting of $60.0 million and $51.1 million , respectively, and $22.1 million was reclassified from building to leasehold improvements and will be amortized over the remaining term of the lease. The Company recognized a gain of $9.3 million , offset by a tax impact of $2.2 million associated with this change through accumulated deficit as of January 1, 2019, with a net decrease to accumulated deficit of $7.1 million , and recognized a new ROU asset of $66.7 million

Revenue

Revenue	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Revenue	Note 2—Revenue The following table summarizes revenue by type of service for the periods presented (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Marketplace revenue $ 134,403 $ 91,306 $ 260,533 $ 179,273 Services revenue 45,896 39,507 88,067 72,112 Other revenue 796 1,574 1,834 1,914 Revenue $ 181,095 $ 132,387 $ 350,434 $ 253,299 Marketplace Revenue : As members of the Etsy marketplace, Etsy sellers receive the benefit of marketplace activities, including listing items for sale, completing sales transactions, and payments processing, which represents a single stand ready performance obligation. Etsy sellers pay a fixed listing fee of $0.20 for each item listed on Etsy.com for a period of four months or, if earlier, until a sale occurs. Variable fees include the 5% transaction fee that an Etsy seller pays for each completed transaction, inclusive of shipping fees charged, and Etsy Payments fees for processing payments, including foreign currency payments. On July 16, 2018 , the Company increased the seller transaction fee from 3.5% to 5% of each completed transaction, and now applies it to the cost of shipping in addition to the cost of the item. Etsy Payments processing fees vary between 3 - 4.5% of an item’s total sale price, including shipping, plus a flat fee per order, depending on the country in which a seller’s bank account is located. The Company earns additional fees on transactions in which currency conversions are performed. The listing fee is recognized ratably over a four -month listing period, unless the item is sold or the seller re-lists it, at which time any remaining listing fee is recognized. The transaction fee and Etsy Payments fees are recognized when the corresponding transaction is consummated. Listing fees are nonrefundable while transaction fees and Etsy Payments fees are recorded net of refunds. Services revenue : Services revenue is derived from optional services offered to Etsy sellers, which include Promoted Listings, Etsy Shipping Labels, Pattern, and Etsy Plus. Each service below represents an individual obligation that the Company must perform when an Etsy seller chooses to use the service. • Revenue from Promoted Listings, the Company’s on-site advertising service, consists of cost-per-click fees an Etsy seller pays for prominent placement of her listings in search results in the Company’s marketplace. Promoted Listings fees are based on an auction system, which utilizes the budget that each Etsy seller sets when using Promoted Listings to determine the cost-per-click fee. Promoted Listing fees are nonrefundable and are charged to a seller’s Etsy bill when the Promoted Listing is clicked, at which time revenue is recognized. • Revenue from Etsy Shipping Labels consists of fees an Etsy seller pays the Company when she purchases shipping labels through its platform, net of the cost the Company incurs in purchasing those shipping labels. The Company provides its sellers access to purchase shipping labels at discounted pricing due to the volume of purchases through its platform. The Company recognizes Etsy Shipping Label revenue when an Etsy seller purchases a shipping label. The Company recognizes Etsy Shipping Label revenue on a net basis as it is an agent in this arrangement and does not take control of shipping labels prior to transferring the labels to the Etsy Seller. Etsy Shipping Label revenue is recorded net of refunds. • Revenue from Pattern consists of monthly subscription fees an Etsy seller pays to use the Company’s custom website services. The Company recognizes revenue from Pattern ratably over the term of the subscription. The Pattern subscription fee is $15 per month and is nonrefundable. • Revenue from Etsy Plus consists of monthly subscription fees an Etsy seller pays for enhanced tools and credits for use on the Company’s platform. The Etsy Plus subscription fee is $10 per month and is nonrefundable. Each feature represents its own distinct performance obligation. The Company allocates subscription revenue based on the relative actual or estimated stand-alone selling price of the features included in the Etsy Plus offering. Each performance obligation is recognized in accordance with how the benefit is transferred to the customer. Other revenue : Other revenue typically includes revenue generated from commercial partnerships, which are recognized as the customer in each contract consumes the benefit of the service Etsy provides in each arrangement. Contract balances Deferred revenues The Company records deferred revenues when cash payments are received or due in advance of the completion of the listing or subscription period, which represents the value of the Company’s unsatisfied performance obligations. Deferred listing revenue is recognized ratably over the remainder of the four -month listing period, unless the item is sold or the seller re-lists it, at which time any remaining listing fee is recognized. Deferred Etsy Plus subscription revenues related to the enhanced features noted above are recognized ratably over the 30 -day subscription period. Credits for Promoted Listings are recognized when used, or when the 30 -day subscription period expires. Credits for listing fees are recognized over the four -month listing period when used, and any unused credits are recognized when the 30 -day subscription period expires. The amount of revenue recognized in the six months ended June 30, 2019 that was included in the deferred balance at January 1, 2019 was $7.5 million .

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Note 3—Income Taxes On December 22, 2017, the U.S. government enacted The Tax Cuts and Jobs Act (“The TCJA”) which includes significant changes to the taxation of business entities. These changes include, among others, (1) a permanent reduction to the corporate income tax rate, (2) a partial limitation on the deductibility of business interest expense, and (3) a shift of the U.S. taxation of multinational corporations from a tax on worldwide income to a quasiterritorial system (along with certain rules designed to prevent erosion of the U.S. income tax base). Effective January 1, 2018, the Company is subject to several provisions of The TCJA including computations under Global Intangible Low Taxed Income (“GILTI”) and Foreign Derived Intangible Income (“FDII”). For the GILTI and FDII computations, the Company recorded tax expense using the current available regulations and the technical guidance on the interpretations of The TCJA. The Company has recorded the impacts of The TCJA in our effective tax rate for the three and six months ended June 30, 2019 and have elected to treat taxes due on future U.S. inclusions in taxable income related to GILTI using the period cost method. On June 21, 2019, the Internal Revenue Service issued final regulations relating to the GILTI and foreign tax credit provisions of the TCJA and proposed GILTI regulations for high-tax exception. The Company has evaluated the impact of the final and proposed GILTI regulations and concluded they were not material to the financial statements. The Company will continue to monitor the technical guidance of the proposed GILTI regulations. The Company will continue to monitor the forthcoming regulations and additional guidance of the FDII and Base Erosion and Anti-Abuse Tax (“BEAT”) provisions under the TCJA, which are complex and subject to continuing regulatory interpretations. The amount of unrecognized tax benefits included in the Consolidated Balance Sheets increased $1.0 million in the six months ended June 30, 2019 , from $18.8 million at December 31, 2018 to $19.8 million at June 30, 2019 . The total amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate is $19.8 million at June 30, 2019 . Although the timing of the resolution and/or closure of audits is highly uncertain, it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. Given the number of years remaining subject to examination and the number of matters being examined, at this time we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. The Company recognizes interest and/or penalties related to uncertain tax positions in income tax expense. The amount of interest and penalties accrued in tax expense for the six months ended June 30, 2019 increased by $0.3 million , from $ 0.5 million at December 31, 2018 to $0.8 million at June 30, 2019

Net Income Per Share

Net Income Per Share	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Net Income Per Share	Note 4— Net Income Per Share The following table presents the calculation of basic and diluted net income per share for periods presented (in thousands except share and per share amounts): Three Months Ended Six Months Ended 2019 2018 2019 2018 Numerator: Net inco me $ 18,223 $ 3,379 $ 49,802 $ 16,346 Net income allocated to participating securities under the two-class method (9 ) (3 ) (24 ) (16 ) Net inco me applicable to common stockholde rs—basic 18,214 3,376 49,778 16,330 Dilutive effect of net income allocated to participating securities under the two-class method 9 3 24 16 Net income attributable to common stockholders—diluted $ 18,223 $ 3,379 $ 49,802 $ 16,346 Denominator: Weighted-average common shares outstanding—basic (1) 120,198,526 119,450,194 119,848,289 120,819,201 Dilutive effect of assumed conversion of options to purchase common stock 4,667,849 3,964,746 4,764,942 3,559,951 Dilutive effect of assumed conversion of restricted stock units 1,693,130 2,053,861 1,841,363 1,733,777 Dilutive effect of assumed conversion of convertible debt 4,226,839 — 3,989,402 — Dilutive effect of assumed conversion of restricted stock from acquisition 21,399 82,958 19,029 73,735 Weighted-average common shares outstanding—diluted 130,807,743 125,551,759 130,463,025 126,186,664 Net inco me per share attributable to common stockholders—b asic $ 0.15 $ 0.03 $ 0.42 $ 0.14 Net income per share a ttri butable to common stockholders—diluted $ 0.14 $ 0.03 $ 0.38 $ 0.13 (1) 22,993 and 23,759 shares of unvested stock are considered participating securities and are excluded from basic shares outstanding for the three and six months ended June 30, 2019 , respectively. The following potential common shares were excluded from the calculation of diluted net income per share attributable to common stockholders because their effect would have been anti-dilutive for the periods presented: Three Months Ended Six Months Ended 2019 2018 2019 2018 Stock options 337,907 642,418 224,706 421,412 Restricted stock units 716,869 118,209 424,461 1,054,803 Total anti-dilutive securities 1,054,776 760,627 649,167 1,476,215

Segment and Geographic Informat

Segment and Geographic Information	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Segment and Geographic Information	Note 5—Segment and Geographic Information The Company has determined it operates as one operating and reportable segment for purposes of allocating resources and evaluating financial performance. Revenue by country is based on the billing address of the seller. The following table summarizes revenue, (loss) income before income taxes , and net (loss) income by geographic area for the periods presented (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 United States $ 119,670 $ 96,805 $ 232,934 $ 181,728 International 61,425 35,582 117,500 71,571 Revenue $ 181,095 $ 132,387 $ 350,434 $ 253,299 United States (1) $ (11,897 ) $ 8,017 $ (6,902 ) $ 5,752 International (2) 28,266 (3,392 ) 54,708 11,854 (Loss) income before income taxes $ 16,369 $ 4,625 $ 47,806 $ 17,606 United States (1) $ (6,146 ) $ 7,525 $ 2,546 $ 5,507 International (2) 24,369 (4,146 ) 47,256 10,839 Net (loss) income $ 18,223 $ 3,379 $ 49,802 $ 16,346 (1) The United States loss before income taxes in the three and six months ended June 30, 2019 and the net loss in the three months ended June 30, 2019 was primarily driven by a majority of operating expenses being incurred in the United States. (2) The International loss before income taxes and net loss in the three months ended June 30, 2018 was primarily driven by a foreign exchange loss related to the U.S. Dollar to Euro exchange rate fluctuations on the Company's intercompany and other non-functional currency balances. No individual country’s revenue other than the United States exceeded 10% of total revenue for the periods presented. All significant long-lived assets are located in the United States.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 6—Fair Value Measurements The Company has characterized its investments in marketable securities, based on the priority of the inputs used to value the investments, into a three-level fair value hierarchy. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1), and lowest priority to unobservable inputs (Level 3). If the inputs used to measure the investments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the investment. Investments recorded in the accompanying Consolidated Balance Sheet are categorized based on the inputs to valuation techniques as follows: Level 1—These are investments where values are based on unadjusted quoted prices for identical assets in an active market that the Company has the ability to access. Level 2—These are investments where values are based on quoted market prices in markets that are not active or model derived valuations in which all significant inputs are observable in active markets. Level 3—These are financial instruments where values are derived from techniques in which one or more significant inputs are unobservable. The following are the major categories of assets measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018 (in thousands): As of June 30, 2019 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 272,246 $ — $ — $ 272,246 272,246 — — 272,246 Short-term investments: Commercial paper — 79,028 — 79,028 Corporate bonds — 83,924 — 83,924 U.S. Government and agency securities 111,721 — — 111,721 111,721 162,952 — 274,673 Funds receivable and seller accounts: Money market funds 20,308 — — 20,308 20,308 — — 20,308 Long-term investments: Corporate bonds — 25,438 — 25,438 — 25,438 — 25,438 $ 404,275 $ 188,390 $ — $ 592,665 As of December 31, 2018 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Commercial paper $ — $ 7,775 $ — $ 7,775 Money market funds 244,856 — — 244,856 244,856 7,775 — 252,631 Short-term investments: Commercial paper — 147,860 — 147,860 Corporate bonds — 46,801 — 46,801 U.S. Government and agency securities 62,641 — — 62,641 62,641 194,661 — 257,302 Funds receivable and seller accounts: Money market funds 9,229 — — 9,229 9,229 — — 9,229 $ 316,726 $ 202,436 $ — $ 519,162 Level 1 instruments include investments in debt securities including money market funds and U.S. government and agency securities, which are valued based on inputs including quotes from broker-dealers or recently executed transactions in the same or similar securities. Level 2 instruments include investments in debt securities, including fixed-income funds consisting of investments in commercial paper and corporate bonds, which are valued based on quoted market prices in markets that are not active or model derived valuations in which all significant inputs are observable in active markets. The Company did not have any Level 3 instruments as of June 30, 2019 and December 31, 2018 . See “ Note 7—Marketable Securities ” for additional information on the Company’s marketable securities measured at fair value. Disclosure of Fair Values The Company’s financial instruments that are not remeasured at fair value include the Notes (see “ Note 10—Debt ”). The Company estimates the fair value of the Notes through consideration of quoted market prices of similar instruments, classified as Level 2 as described above. The estimated fair value of the Notes was $303.5 million and $279.1 million as of June 30, 2019 and December 31, 2018

Marketable Securities

Marketable Securities	6 Months Ended
	Jun. 30, 2019
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	Note 7—Marketable Securities Short- and long-term investments and certain cash equivalents consist of investments in debt securities that are available-for-sale. The cost and fair value of available-for-sale securities were as follows as of the dates indicated (in thousands): Cost Gross Gross Fair Value June 30, 2019 Short-term investments: Commercial paper $ 79,028 $ — $ — $ 79,028 Corporate bonds 83,778 — 146 83,924 U.S. Government and agency securities 111,575 — 146 111,721 274,381 — 292 274,673 Long-term investments: Corporate bonds 25,296 — 142 25,438 25,296 — 142 25,438 $ 299,677 $ — $ 434 $ 300,111 December 31, 2018 Cash equivalents: Commercial paper $ 7,775 $ — $ — $ 7,775 7,775 — — 7,775 Short-term investments: Commercial paper 147,860 — — 147,860 Corporate bonds 46,836 (35 ) — 46,801 U.S. Government and agency securities 62,638 (9 ) 12 62,641 257,334 (44 ) 12 257,302 $ 265,109 $ (44 ) $ 12 $ 265,077 The Company’s investments in marketable securities consist primarily of investments in debt securities, including U.S. government and agency securities and fixed-income funds. When evaluating investments for other-than-temporary impairment, the Company reviews factors such as length of time and extent to which fair value has been below cost basis, the financial condition of the issuer and the Company’s ability, and intent to hold the investment for a period of time, which may be sufficient for anticipated recovery in market value. The Company evaluates fair values for each individual security in the investment portfolio. See “ Note 6—Fair Value Measurements ” for additional information on the Company’s marketable securities measured at fair value.

Leases

Leases	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Leases	Note 8—Leases As the lessee, the Company currently leases 225,135 square feet of real estate space for its corporate headquarters located in Brooklyn, New York, under a noncancelable lease that expires in 2026. The Company uses these facilities for its principal administration, technology and development, and engineering activities. The Company also leases office space for its offices in San Francisco, Hudson (New York), Dublin, and London. Additionally, the Company has short-term leases in other locations around the world that meet short-term lease criteria and are not recognized on the Consolidated Balance Sheets. Most leases include one or more options to renew, and the exercise of these options is at the Company’s sole discretion. The Company determined that its options to break or renew would not be reasonably certain in determining the expected lease term, and therefore are not included as part of its ROU assets and lease liabilities. The Company entered into financing lease agreements with Dell Financial Services, LLC. (“DFS”) and ePlus Group, Inc. (“ePlus”) for hosting and computer equipment leases. The leases through DFS have a 36 -month term, zero interest, and are payable in equal monthly installments with a buy-out option of $1 at the end of the lease term. The leases through ePlus have a 36 -month term, interest rate of 3.71% - 6.93% , and are payable in equal monthly installments with a fair market value or a $1 buy-out option at the end of the lease term depending on the equipment. In calculating the present value of the lease payments, the Company has elected to utilize its estimated incremental borrowing rate based on the remaining lease term and not the original lease term. The depreciable life of assets and leasehold improvements are limited by the expected lease term. The elements of lease expense were as follows (in thousands): Three Months Ended Six Months Ended Operating lease cost $ 1,272 $ 2,550 Finance lease cost: Amortization of right-of-use assets 3,320 6,690 Interest on lease liabilities 823 1,693 Total finance lease cost 4,143 8,383 Other lease cost, net (1) 126 68 Total lease cost $ 5,541 $ 11,001 (1) Other lease cost, net includes short-term sublease income, short-term lease costs, and variable lease costs, which are immaterial. The following table presents the lease-related assets and liabilities recorded on the Consolidated Balance Sheet (in thousands): As of June 30, 2019 Operating leases: Other assets $ 23,410 Other current liabilities $ 3,995 Other liabilities 21,638 Total operating lease liabilities $ 25,633 Finance leases: Property and equipment, net $ 65,621 Finance lease obligations—current $ 9,306 Finance lease obligations—net of current portion 57,409 Total finance lease liabilities $ 66,715 The following table summarizes the weighted average remaining lease term and weighted average discount rate as of June 30, 2019 : As of June 30, 2019 Weighted average remaining lease term: Operating leases 6.52 years Finance leases 6.75 years Weighted average discount rate: Operating leases 4.26 % Finance leases 4.37 % Supplemental cash flow information related to leases was as follows (in thousands): Six Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating lea ses $ (2,390 ) Operating cash flows used in finance lea ses (1,681 ) Finance cash flows used in finance lea ses (5,475 ) Future minimum lease payments under non-cancelable leases for the six months ending December 31, 2019 and years ending December 31, 2020 , 2021 , 2022 , 2023 , and thereafter are as follows (in thousands): Operating Leases Finance Leases 2019 $ 2,313 $ 6,000 2020 4,793 11,400 2021 4,182 10,960 2022 4,177 10,547 2023 4,201 10,599 Thereafter 9,756 27,715 Total future minimum lease payments 29,422 77,221 Less imputed interest 3,789 10,506 Total $ 25,633 $ 66,715 The following table represents the Company’s commitments under its previous presentation of its capital, operating, and build-to-suit lease agreements as of December 31, 2018 (in thousands): Capital Lease Operating Build-to-Suit Periods ending 2019 $ 4,392 $ 4,904 $ 9,451 2020 1,754 4,783 9,522 2021 481 4,185 10,354 2022 — 4,180 10,520 2023 — 4,205 10,599 Thereafter — 9,760 27,715 Total minimum payments required $ 6,627 $ 32,017 $ 78,161 Amounts representing interest 648 Present value of net minimum payments 5,979 Current maturities 3,884 Long-term payment obligations $ 2,095
Leases	Note 8—Leases As the lessee, the Company currently leases 225,135 square feet of real estate space for its corporate headquarters located in Brooklyn, New York, under a noncancelable lease that expires in 2026. The Company uses these facilities for its principal administration, technology and development, and engineering activities. The Company also leases office space for its offices in San Francisco, Hudson (New York), Dublin, and London. Additionally, the Company has short-term leases in other locations around the world that meet short-term lease criteria and are not recognized on the Consolidated Balance Sheets. Most leases include one or more options to renew, and the exercise of these options is at the Company’s sole discretion. The Company determined that its options to break or renew would not be reasonably certain in determining the expected lease term, and therefore are not included as part of its ROU assets and lease liabilities. The Company entered into financing lease agreements with Dell Financial Services, LLC. (“DFS”) and ePlus Group, Inc. (“ePlus”) for hosting and computer equipment leases. The leases through DFS have a 36 -month term, zero interest, and are payable in equal monthly installments with a buy-out option of $1 at the end of the lease term. The leases through ePlus have a 36 -month term, interest rate of 3.71% - 6.93% , and are payable in equal monthly installments with a fair market value or a $1 buy-out option at the end of the lease term depending on the equipment. In calculating the present value of the lease payments, the Company has elected to utilize its estimated incremental borrowing rate based on the remaining lease term and not the original lease term. The depreciable life of assets and leasehold improvements are limited by the expected lease term. The elements of lease expense were as follows (in thousands): Three Months Ended Six Months Ended Operating lease cost $ 1,272 $ 2,550 Finance lease cost: Amortization of right-of-use assets 3,320 6,690 Interest on lease liabilities 823 1,693 Total finance lease cost 4,143 8,383 Other lease cost, net (1) 126 68 Total lease cost $ 5,541 $ 11,001 (1) Other lease cost, net includes short-term sublease income, short-term lease costs, and variable lease costs, which are immaterial. The following table presents the lease-related assets and liabilities recorded on the Consolidated Balance Sheet (in thousands): As of June 30, 2019 Operating leases: Other assets $ 23,410 Other current liabilities $ 3,995 Other liabilities 21,638 Total operating lease liabilities $ 25,633 Finance leases: Property and equipment, net $ 65,621 Finance lease obligations—current $ 9,306 Finance lease obligations—net of current portion 57,409 Total finance lease liabilities $ 66,715 The following table summarizes the weighted average remaining lease term and weighted average discount rate as of June 30, 2019 : As of June 30, 2019 Weighted average remaining lease term: Operating leases 6.52 years Finance leases 6.75 years Weighted average discount rate: Operating leases 4.26 % Finance leases 4.37 % Supplemental cash flow information related to leases was as follows (in thousands): Six Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating lea ses $ (2,390 ) Operating cash flows used in finance lea ses (1,681 ) Finance cash flows used in finance lea ses (5,475 ) Future minimum lease payments under non-cancelable leases for the six months ending December 31, 2019 and years ending December 31, 2020 , 2021 , 2022 , 2023 , and thereafter are as follows (in thousands): Operating Leases Finance Leases 2019 $ 2,313 $ 6,000 2020 4,793 11,400 2021 4,182 10,960 2022 4,177 10,547 2023 4,201 10,599 Thereafter 9,756 27,715 Total future minimum lease payments 29,422 77,221 Less imputed interest 3,789 10,506 Total $ 25,633 $ 66,715 The following table represents the Company’s commitments under its previous presentation of its capital, operating, and build-to-suit lease agreements as of December 31, 2018 (in thousands): Capital Lease Operating Build-to-Suit Periods ending 2019 $ 4,392 $ 4,904 $ 9,451 2020 1,754 4,783 9,522 2021 481 4,185 10,354 2022 — 4,180 10,520 2023 — 4,205 10,599 Thereafter — 9,760 27,715 Total minimum payments required $ 6,627 $ 32,017 $ 78,161 Amounts representing interest 648 Present value of net minimum payments 5,979 Current maturities 3,884 Long-term payment obligations $ 2,095

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2019
Payables and Accruals [Abstract]
Accrued Expenses	Note 9—Accrued Expenses Accrued expenses consisted of the following as of the dates indicated (in thousands): As of June 30, As of December 31, Vendor accruals $ 20,315 $ 17,817 Sales and use tax payable 14,013 12,232 Accrued bonus 11,246 12,906 Income tax payable 6,687 10 Payroll-related liabilities 2,604 2,406 Accrued vacation 822 3,787 Total accrued expenses $ 55,687 $ 49,158

Debt

Debt	6 Months Ended
	Jun. 30, 2019
Debt Disclosure [Abstract]
Debt	Note 10—Debt Convertible Debt In March 2018 , the Company issued $345.0 million aggregate principal amount of 0% Convertible Senior Notes due 2023 (the “Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The net proceeds from the sale of the Notes were $335.0 million after deducting the initial purchasers’ discount and offering expenses. The Company used $34.2 million of the net proceeds from the Notes offering to enter into separate capped call transactions (“Capped Call Transactions”) with the initial purchasers and/or their respective affiliates. During any calendar quarter preceding November 1, 2022 in which the closing price of the Company’s common stock exceeds 130% of the applicable conversion price of the Notes on at least 20 of the last 30 consecutive trading days of the quarter, holders may in the immediate quarter following convert all or a portion of their Notes. Based on the daily closing prices of the Company’s stock during the quarters ended March 31, 2019 and June 30, 2019, holders of the Notes were eligible to convert their Notes during the quarter ended June 30, 2019 and are eligible to convert their Notes during the third quarter of 2019. As of June 30, 2019 , we received a conversion notice for an immaterial principal amount of Notes. When a conversion notice is received, the Company has the option to elect to redeem the shares in cash, common stock or a combination thereof. Accordingly, the Company cannot be required to redeem the Notes in cash and, therefore, the Notes are classified as long-term debt as of June 30, 2019. As of June 30, 2019 , the if-converted value of the Notes was approximately $238.7 million higher than the aggregate principal amount, or $583.7 million , offset in part by the Capped Call Transactions. The Company capitalized $10.0 million of debt issuance costs in connection with the Notes. Non-cash interest expense related to the Notes for the three months ended June 30, 2019 and 2018 was $3.8 million and $3.6 million , respectively. Non-cash interest expense related to the Notes for the six months ended June 30, 2019 and 2018 was $7.5 million and $4.8 million , respectively. Total unamortized debt issuance costs related to the Notes were $5.9 million and $6.7 million as of June 30, 2019 and December 31, 2018 , respectively. The estimated fair value of the Notes was $303.5 million and $279.1 million as of June 30, 2019 and December 31, 2018 , respectively. The estimated fair value of the Notes was determined through consideration of quoted market prices for similar instruments. The fair value is classified as Level 2, as defined in “ Note 6—Fair Value Measurements .” As of June 30, 2019 , there were no other material changes related to the Notes and Capped Call Transactions compared to that disclosed in the Annual Report. Credit Agreement On February 25, 2019 , the Company entered into a $200.0 million senior secured revolving credit facility pursuant to a Credit Agreement (the “ 2019 Credit Agreement ”) with lenders party thereto from time to time, and Citibank N.A., as administrative Agent. The 2019 Credit Agreement will mature in February 2024 . The 2019 Credit Agreement includes a letter of credit sublimit of $30.0 million and a swingline loan sublimit of $10.0 million . Borrowings under the 2019 Credit Agreement (other than swingline loans) bear interest, at the Company’s option, at (i) a base rate equal to the highest of (a) the prime rate, (b) the federal funds rate plus 0.50% , and (c) an adjusted LIBOR rate for a one-month interest period plus 1.00% , in each case plus a margin ranging from 0.25% to 0.875% or (ii) an adjusted LIBOR rate plus a margin ranging from 1.25% to 1.875% . Swingline loans under the 2019 Credit Agreement bear interest at the same base rate (plus the margin applicable to borrowings bearing interest at the base rate). These margins are determined based on the senior secured net leverage ratio (defined as secured funded debt, net of unrestricted cash up to $100 million , to EBITDA) for the preceding four fiscal quarter period. The Company is also obligated to pay other customary fees for a credit facility of this size and type, including an unused commitment fee, ranging from 0.20% to 0.35% depending on the Company’s senior secured net leverage ratio, and fees associated with letters of credit. The 2019 Credit Agreement also permits the Company, in certain circumstances, to request an increase in the facility by an amount of up to $100.0 million at the same maturity, pricing and other terms and to request an extension of the maturity date for the facility. In connection with the 2019 Credit Agreement , the Company also paid the lenders certain upfront fees. The 2019 Credit Agreement contains customary representations and warranties applicable to the Company and its subsidiaries and customary affirmative and negative covenants applicable to the Company and its restricted subsidiaries. The negative covenants include restrictions on, among other things, indebtedness, liens, certain fundamental changes (including mergers), investments, dispositions, restricted payments (including dividends and stock repurchases), prepayments of junior debt, and transactions with affiliates. These restrictions do not prohibit a subsidiary of the Company from making pro rata payments to the Company or any other person that owns an equity interest in such subsidiary. The 2019 Credit Agreement contains financial covenants, that require the Company and its subsidiaries to maintain (i) a secured net leverage ratio not to exceed 3.00 to 1.00 , subject to an increase, at the option of the Company, to 3.50 to 1.00 for a specified period of time in the event of certain material acquisitions, tested as of the last day of each fiscal quarter and (ii) an interest coverage ratio (defined as the ratio of EBITDA to cash interest expense) of not less than 2.50 to 1.00 , tested for each fiscal quarter. The 2019 Credit Agreement includes customary events of default, including, but not limited to, nonpayment of principal or interest, breaches of representations and warranties, failure to perform or observe covenants, cross-defaults with certain other indebtedness, final judgments or orders, certain change of control events, and certain bankruptcy-related events or proceedings. Upon the occurrence of an event of default (subject to notice and grace periods), obligations under the 2019 Credit Agreement could be accelerated. Subject to certain exceptions, to the extent the Company has any material domestic subsidiaries, the obligations under the 2019 Credit Agreement would be required to be guaranteed by such material domestic subsidiaries. The obligations under the 2019 Credit Agreement are secured by all or substantially all of the assets of the Company and any such subsidiary guarantors. The Company capitalized $1.4 million of debt issuance costs in connection with the 2019 Credit Agreement . Non-cash interest expense related to debt issuance costs on the 2019 Credit Agreement for the three and six months ended June 30, 2019 was $0.1 million and $0.1 million , respectively. Total unamortized debt issuance costs related to the 2019 Credit Agreement were $1.3 million as of June 30, 2019 . At June 30, 2019 , the Company did no t have any borrowings under the 2019 Credit Agreement and was in compliance with all financial covenants.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 11—Commitments and Contingencies Legal Proceedings From time to time in the normal course of business, various claims and litigation have been asserted or commenced against the Company. Due to uncertainties inherent in litigation and other claims, the Company can give no assurance that it will prevail in any such matters, which could subject the Company to significant liability for damages. Any claims or litigation, regardless of their success, could have an adverse effect on the Company’s Consolidated Results of Operations, Cash Flows, or business and financial condition in the period the claims or litigation are resolved. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Stockholders' Equity	Note 12—Stockholders’ Equity On November 1, 2018, the Board of Directors approved a stock repurchase program that enables the Company to repurchase up to $200 million of its common stock. The program does not have a time limit and may be modified, suspended or terminated at any time by the Board of Directors. The number of shares repurchased and the timing of repurchases will depend on a number of factors, including, but not limited to, stock price, trading volume and general market conditions, along with Etsy’s working capital requirements, general business conditions and other factors. In November 2017, the Board of Directors approved a stock repurchase program that enabled the Company to repurchase up to $100 million of its common stock. The program was completed in the second quarter of 2018. Under the stock repurchase program, the Company was able to purchase shares of its common stock through various means, including open market transactions, privately negotiated transactions, tender offers, or any combination thereof. In addition, open market repurchases of common stock could be made pursuant to trading plans established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, which permitted common stock to be repurchased at a time that the Company might otherwise be precluded from doing so under insider trading laws or self-imposed trading restrictions. The following table summarizes the Company’s cumulative share repurchase activity of both programs noted above, excluding shares withheld to satisfy tax withholding obligations in connection with the vesting of employee restricted stock units (in thousands except share and per share amounts): Shares Repurchased Average Price Paid per Share (1) Value of Shares Repurchased (1) Remaining Amount Authorized Balance as of December 31, 2018 5,032,648 $ 28.80 $ 145,000 $ 155,000 Repurchases of common stock for the three months ended: March 31, 2019 532,412 51.64 27,500 (27,500 ) June 30, 2019 — — — — Balance as of June 30, 2019 5,565,060 $ 32.84 $ 172,500 $ 127,500 (1) Average price paid per share excludes broker commissions. Value of shares repurchased includes broker commissions.

Stock-Based Compensation

Stock-Based Compensation	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Stock-Based Compensation	Note 13—Stock-Based Compensation During the three and six months ended June 30, 2019 , the Company granted stock options and restricted stock units (“RSUs”) under its 2015 Equity Incentive Plan (“2015 Plan”) and, pursuant to the evergreen increase provision of the 2015 Plan, the Board of Directors approved an increase of 2,395,434 shares to the total number of shares available for issuance under the 2015 Plan effective as of January 2, 2019. At June 30, 2019 , 31,831,808 shares were authorized under the 2015 Plan and 20,697,053 shares were available for future grant. The fair value of options granted in the periods presented below using the Black-Scholes pricing model has been based on the following assumptions: Three Months Ended Six Months Ended 2019 2018 2019 2018 Volatility 39.2% - 39.5% 38.6% - 42.1% 39.2% - 39.5% 38.6% - 42.1% Risk-free interest rate 1.9% - 2.4% 2.8% - 2.9% 1.9% - 2.5% 2.6% - 2.9% Expected term (in years) 5.5 - 6.16 5.5 - 6.08 5.5 - 6.16 5.5 - 6.25 Dividend rate —% —% —% —% The following table summarizes the activity for the Company’s options during the six months ended June 30, 2019 (in thousands except share and per share amounts): Shares Weighted-Average Exercise Price Weighted-Average Remaining Contract Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2018 6,890,994 $ 12.91 Granted 320,888 68.84 Exercised (688,890 ) 11.38 Forfeited/Canceled (186,644 ) 28.31 Outstanding at June 30, 2019 6,336,348 15.46 7.62 $ 293,334 Total exercisable at June 30, 2019 3,256,827 11.65 7.13 161,917 The following table summarizes the weighted-average grant date fair value of options granted, intrinsic value of options exercised and fair value of awards vested during the three and six months ended June 30, 2019 and 2018 (in thousands except per share amounts): Three Months Ended Six Months Ended 2019 2018 2019 2018 Weighted-average grant date fair value of options granted $ 25.00 $ 13.51 $ 28.90 $ 12.50 Intrinsic value of options exercised 8,373 1,397 36,896 11,196 Fair value of awards vested 12,108 11,469 18,191 14,399 The total unrecognized compensation expense at June 30, 2019 related to the Company’s options was $24.5 million , which will be recognized over an estimated weighted-average amortization period of 2.69 years. The following table summarizes the activity for the Company’s unvested RSUs during the six months ended June 30, 2019 : Shares Weighted-Average Unvested at December 31, 2018 3,480,368 $ 22.87 Granted 868,828 67.48 Vested (680,661 ) 18.65 Forfeited/Canceled (385,591 ) 26.96 Unvested at June 30, 2019 3,282,944 35.07 The total unrecognized compensation expense at June 30, 2019 related to the Company’s unvested RSUs was $103.4 million , which will be recognized over an estimated weighted-average amortization period of 3.26 years. Total stock-based compensation expense included in the Consolidated Statements of Operations for the periods presented below is as follows (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Cost of revenue $ 1,456 $ 927 $ 2,555 $ 1,473 Marketing 723 699 1,354 1,177 Product development 5,294 4,025 8,813 6,664 General and administrative 3,364 2,966 6,197 5,757 Total stock-based compensation expense $ 10,837 $ 8,617 $ 18,919 $ 15,071 Total stock-based compensation expense in the three months ended June 30, 2019 and 2018 includes $0.4 million and $0.7 million in acquisition-related stock-based compensation expense, respectively. Total stock-based compensation expense in the six months ended June 30, 2019 and 2018 includes $0.7 million and $1.4 million in acquisition-related stock-based compensation expense, respectively.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2019
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On July 21, 2019, the Company entered into a definitive merger agreement to acquire Reverb Holdings Inc., a privately held marketplace for new, used, and vintage music gear. Pursuant to the merger agreement, the Company will acquire all of the outstanding capital stock of Reverb for $275 million in cash, subject to certain adjustments with respect to cash, debt, working capital, transaction expenses and the value of equity awards granted in connection with the transaction. The transaction is expected to close in late third quarter or early fourth quarter of 2019, subject to Hart-Scott-Rodino review and other customary closing conditions.

Basis of Presentation and Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Consolidation	Basis of Consolidation The Consolidated Financial Statements include the accounts of Etsy and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Unaudited Interim Financial Information	Unaudited Interim Financial Information The accompanying Consolidated Balance Sheet as of June 30, 2019 , the Consolidated Statements of Operations and Comprehensive Income for the three and six months ended June 30, 2019 and 2018 , the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2019 and 2018 and the Consolidated Statement of Changes in Stockholders’ Equity for the three and six months ended June 30, 2019 and 2018 are unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual Consolidated Financial Statements except for new accounting standards adopted as disclosed below, and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to state fairly the Company’s financial position as of June 30, 2019 , results of operations for the three and six months ended June 30, 2019 and 2018 and cash flows for the six months ended June 30, 2019 and 2018 . The results for these interim periods are not necessarily indicative of the results to be anticipated for the full annual period or any future period. The financial data and the other information disclosed in these Notes to the Consolidated Financial Statements related to these three and six month periods are unaudited. These unaudited interim financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2019 (the “Annual Report”). During the first quarter of 2019, the Company adopted the accounting principles outlined within ASU 2016-02 —Leases, as described below . There have been no additional material changes in the Company’s significant accounting policies from those that were disclosed in the Annual Report.
Use of Estimates	Use of Estimates The preparation of the Company’s Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosure of contingent assets, liabilities, and equity at the date of the Consolidated Financial Statements and the reported amounts of revenues and expenses during the reporting period. The accounting estimates that require management’s most difficult and subjective judgments include: revenue recognition, determining the nature and timing of satisfaction of performance obligations and stand-alone selling price for use in allocating the subscription price of Etsy Plus; leases, determining the incremental borrowing rate; income taxes, including the estimate of annual effective tax rate at interim periods, assessment of valuation allowances, and evaluation of uncertain tax positions; website development costs and internal-use software; purchase price allocations for business combinations and contingent consideration; valuation of goodwill and intangible assets; stock-based compensation; and fair value of financial instruments . The Company evaluates its estimates and judgments on an ongoing basis and revises them when necessary. Actual results may differ from the original or revised estimates.
Revenue Recognition	Revenue Recognition The Company’s revenue is diversified; generated from a mix of marketplace activities and other optional services to help Etsy sellers generate more sales and scale their businesses. Revenues are recognized as the Company transfers control of promised goods or services to Etsy sellers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company evaluates whether it is appropriate to recognize revenue on a gross or net basis based upon its evaluation of whether the Company obtains control of the specified goods or services by considering if it is primarily responsible for fulfillment of the promise, has inventory risk, and has the latitude in establishing pricing and selecting suppliers, among other factors. Based on its evaluation of these factors, revenue is recorded either gross or net of costs associated with the transaction. With the exception of Etsy Shipping Labels, the Company’s revenues are recognized on a gross basis. Sales and usage-based taxes are excluded from revenues. See “ Note 2—Revenue ” for additional information regarding revenue recognition.
Income Taxes	Income Taxes The Company’s income tax (provision) benefit for interim periods is determined using an estimate of its annual effective tax rate adjusted for discrete items, if any, for relevant interim periods. The Company updates its estimate of the annual effective tax rate each quarter and makes cumulative adjustments if its estimated annual tax rate changes. The Company’s quarterly tax provision and quarterly estimate of its annual effective tax rate are subject to significant variations due to several factors, including variability in predicting its pretax and taxable income and the mix of jurisdictions to which those relate, changes of expenses or losses for which tax benefits are not recognized, recording of excess tax benefits related to stock-based compensation and changes in the laws, regulations, and administrative practices of the jurisdictions in which the Company operates.
Net Income Per Share	Net Income Per Share Basic net income per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by dividing net income for the period by the weighted-average number of shares of common stock and potentially dilutive common stock outstanding during the period. Net income in the diluted net income per share calculation is adjusted for income or loss from fair value adjustments on instruments accounted for as liabilities, but which may be settled in shares. The dilutive effect of outstanding options and stock-based compensation awards is reflected in diluted net income per share by application of the treasury stock method. Since the Company expects to settle in cash the principal outstanding under the 0% Convertible Senior Notes due 2023 the Company issued in March 2018 (the “Notes,” see “ Note 10—Debt ”), it uses the treasury stock method when calculating the potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share of common stock when the average market price of the Company’s common stock for a given period exceeds the conversion price of $36.27 per share. The calculation of diluted net income per share excludes all anti-dilutive common shares.
Cash and Cash Equivalents, Short- and Long-term Investments	Cash and Cash Equivalents, and Short- and Long-term Investments The Company considers all investments with an original maturity of three months or less at time of purchase to be cash equivalents. Cash restricted by third parties is not considered cash and cash equivalents. Short-term investments, consisting primarily of commercial paper, United States government and agency securities, and corporate bonds with original maturities of greater than three months but less than one year when purchased, are classified as available-for-sale and are reported at fair value using the specific identification method. Long-term investments, consisting primarily of corporate bonds with original maturities of greater than twelve months but less than 37 months when purchased, are classified as available-for-sale and are reported at fair value using the specific identification method. Unrealized gains and losses are excluded from earnings and reported as a component of other comprehensive income (loss), net of related estimated income tax provisions or benefits.
Leases	Leases At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease based on the unique facts and circumstances present. Operating leases are included in other assets, other current liabilities, and other liabilities on the Company’s Consolidated Balance Sheets. Finance leases are included in property and equipment, net, finance lease obligations, current, and finance lease obligations, net of current portion on the Company’s Consolidated Balance Sheets. Most leases with a term greater than one year are recognized on the Consolidated Balance Sheet as right-of-use (“ROU”) assets, lease obligations and, if applicable, long-term lease obligations in the line items cited above. The Company has elected not to recognize leases with terms of one year or less on the Consolidated Balance Sheets. Lease obligations and their corresponding ROU assets are recorded based on the present value of lease payments over the expected lease term. As the interest rate implicit in lease contracts is typically not readily determinable, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain adjustments to the ROU asset may be required for items such as initial direct costs paid or incentives received. The lease term may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The components of a lease should be split into three categories: lease components, including land, building, or other similar components; non-lease components, including common area maintenance, maintenance, consumables, or other similar components; and non-components, including property taxes, insurance, or other similar components. However, the Company has elected to combine lease and non-lease components as a single component. The lease expense is recognized over the expected term on a straight-line basis.
Recently Issued and Recently Adopted Accounting Pronouncements	Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-13 —Financial Instruments—Credit Losses (Topic 326)—Measurement of Credit Losses on Financial Instruments , and additional changes, modifications, clarifications, or interpretations related to this guidance thereafter, which require a reporting entity to estimate credit losses on certain types of financial instruments, and present assets held at amortized cost and available-for-sale debt securities at the amount expected to be collected. The new guidance is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its Consolidated Financial Statements. 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, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new guidance is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its Consolidated Financial Statements. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02 —Leases (Topic 842), and additional changes, modifications, clarifications, or interpretations related to this guidance thereafter, which require a reporting entity to recognize ROU assets and lease liabilities on the balance sheet for operating leases to increase the transparency and comparability. Disclosure requirements have been enhanced with the objective of enabling financial statement users to assess the amount, timing, and uncertainty of cash flows arising from leases. The Company adopted this standard in the first quarter of 2019, effective as of January 1, 2019, using the modified retrospective approach utilizing transition guidance introduced in ASU 2018-11— Leases: Targeted Improvements , and elected the ‘package of practical expedients’ permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease identification, classification, and initial direct costs. The Company did not elect the hindsight practical expedient which permits entities to use hindsight in determining the lease term and assessing impairment. The Company also elected to continue to recognize lease payments related to short-term leases as an expense on a straight-line basis over the lease term. Upon adoption, the Company recognized new ROU assets and lease obligations on the Consolidated Balance Sheet for our operating leases of $25.4 million and $27.8 million , respectively. Additionally, upon adoption the Company renamed its capital lease obligations, current and capital lease obligations, net of current to finance lease obligations, current and finance lease obligations, net of current portion, respectively, in the Consolidated Balance Sheets. In 2014 the Company applied build-to-suit accounting treatment to its headquarters lease in Brooklyn, New York, as the Company was deemed the accounting owner of the construction project because of the Company’s involvement in the build-out of the space. Upon transition, the Company derecognized the facility financing obligation and related building assets recorded as a result of the failed sale and leaseback transactions and recorded any difference as a cumulative-effect adjustment to accumulated deficit. The adoption of this standard had a material impact on the Company’s financial position but did not and is not expected to significantly affect the Company’s results of operations. The Company has derecognized the existing facility financing obligation and existing building asset for sale-leaseback transactions that currently do not qualify for sale accounting of $60.0 million and $51.1 million , respectively, and $22.1 million was reclassified from building to leasehold improvements and will be amortized over the remaining term of the lease. The Company recognized a gain of $9.3 million , offset by a tax impact of $2.2 million associated with this change through accumulated deficit as of January 1, 2019, with a net decrease to accumulated deficit of $7.1 million , and recognized a new ROU asset of $66.7 million

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash, Cash Equivalents and Short-term Investments	The following table provides cash and cash equivalents, and short- and long-term investments within the Consolidated Balance Sheets as of the dates indicated (in thousands): As of As of Cash and cash equivalents $ 359,159 $ 366,985 Short-term investments 274,673 257,302 Long-term investments 25,438 — Total cash and cash equivalents, and short- and long-term investments $ 659,270 $ 624,287

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2019
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table summarizes revenue by type of service for the periods presented (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Marketplace revenue $ 134,403 $ 91,306 $ 260,533 $ 179,273 Services revenue 45,896 39,507 88,067 72,112 Other revenue 796 1,574 1,834 1,914 Revenue $ 181,095 $ 132,387 $ 350,434 $ 253,299

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2019
Earnings Per Share [Abstract]
Schedule of Calculation of Basic and Diluted Net (Loss) Income Per Share	The following table presents the calculation of basic and diluted net income per share for periods presented (in thousands except share and per share amounts): Three Months Ended Six Months Ended 2019 2018 2019 2018 Numerator: Net inco me $ 18,223 $ 3,379 $ 49,802 $ 16,346 Net income allocated to participating securities under the two-class method (9 ) (3 ) (24 ) (16 ) Net inco me applicable to common stockholde rs—basic 18,214 3,376 49,778 16,330 Dilutive effect of net income allocated to participating securities under the two-class method 9 3 24 16 Net income attributable to common stockholders—diluted $ 18,223 $ 3,379 $ 49,802 $ 16,346 Denominator: Weighted-average common shares outstanding—basic (1) 120,198,526 119,450,194 119,848,289 120,819,201 Dilutive effect of assumed conversion of options to purchase common stock 4,667,849 3,964,746 4,764,942 3,559,951 Dilutive effect of assumed conversion of restricted stock units 1,693,130 2,053,861 1,841,363 1,733,777 Dilutive effect of assumed conversion of convertible debt 4,226,839 — 3,989,402 — Dilutive effect of assumed conversion of restricted stock from acquisition 21,399 82,958 19,029 73,735 Weighted-average common shares outstanding—diluted 130,807,743 125,551,759 130,463,025 126,186,664 Net inco me per share attributable to common stockholders—b asic $ 0.15 $ 0.03 $ 0.42 $ 0.14 Net income per share a ttri butable to common stockholders—diluted $ 0.14 $ 0.03 $ 0.38 $ 0.13 (1) 22,993 and 23,759 shares of unvested stock are considered participating securities and are excluded from basic shares outstanding for the three and six months ended June 30, 2019 , respectively.
Schedule of Anti-Dilutive Securities Excluded from Computation of Net Income Per Share	The following potential common shares were excluded from the calculation of diluted net income per share attributable to common stockholders because their effect would have been anti-dilutive for the periods presented: Three Months Ended Six Months Ended 2019 2018 2019 2018 Stock options 337,907 642,418 224,706 421,412 Restricted stock units 716,869 118,209 424,461 1,054,803 Total anti-dilutive securities 1,054,776 760,627 649,167 1,476,215

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	6 Months Ended
	Jun. 30, 2019
Segment Reporting [Abstract]
Schedule of Revenue by Geographic Area	The following table summarizes revenue, (loss) income before income taxes , and net (loss) income by geographic area for the periods presented (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 United States $ 119,670 $ 96,805 $ 232,934 $ 181,728 International 61,425 35,582 117,500 71,571 Revenue $ 181,095 $ 132,387 $ 350,434 $ 253,299 United States (1) $ (11,897 ) $ 8,017 $ (6,902 ) $ 5,752 International (2) 28,266 (3,392 ) 54,708 11,854 (Loss) income before income taxes $ 16,369 $ 4,625 $ 47,806 $ 17,606 United States (1) $ (6,146 ) $ 7,525 $ 2,546 $ 5,507 International (2) 24,369 (4,146 ) 47,256 10,839 Net (loss) income $ 18,223 $ 3,379 $ 49,802 $ 16,346 (1) The United States loss before income taxes in the three and six months ended June 30, 2019 and the net loss in the three months ended June 30, 2019 was primarily driven by a majority of operating expenses being incurred in the United States. (2) The International loss before income taxes and net loss in the three months ended June 30, 2018 was primarily driven by a foreign exchange loss related to the U.S. Dollar to Euro exchange rate fluctuations on the Company's intercompany and other non-functional currency balances.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2019
Fair Value Disclosures [Abstract]
Major Categories of Assets and Liabilities Measured at Fair Value on a Recurring Basis	The following are the major categories of assets measured at fair value on a recurring basis as of June 30, 2019 and December 31, 2018 (in thousands): As of June 30, 2019 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 272,246 $ — $ — $ 272,246 272,246 — — 272,246 Short-term investments: Commercial paper — 79,028 — 79,028 Corporate bonds — 83,924 — 83,924 U.S. Government and agency securities 111,721 — — 111,721 111,721 162,952 — 274,673 Funds receivable and seller accounts: Money market funds 20,308 — — 20,308 20,308 — — 20,308 Long-term investments: Corporate bonds — 25,438 — 25,438 — 25,438 — 25,438 $ 404,275 $ 188,390 $ — $ 592,665 As of December 31, 2018 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Commercial paper $ — $ 7,775 $ — $ 7,775 Money market funds 244,856 — — 244,856 244,856 7,775 — 252,631 Short-term investments: Commercial paper — 147,860 — 147,860 Corporate bonds — 46,801 — 46,801 U.S. Government and agency securities 62,641 — — 62,641 62,641 194,661 — 257,302 Funds receivable and seller accounts: Money market funds 9,229 — — 9,229 9,229 — — 9,229 $ 316,726 $ 202,436 $ — $ 519,162

Marketable Securities (Tables)

Marketable Securities (Tables)	6 Months Ended
	Jun. 30, 2019
Investments, Debt and Equity Securities [Abstract]
Cost and Fair Value of Available-for-sale Securities	The cost and fair value of available-for-sale securities were as follows as of the dates indicated (in thousands): Cost Gross Gross Fair Value June 30, 2019 Short-term investments: Commercial paper $ 79,028 $ — $ — $ 79,028 Corporate bonds 83,778 — 146 83,924 U.S. Government and agency securities 111,575 — 146 111,721 274,381 — 292 274,673 Long-term investments: Corporate bonds 25,296 — 142 25,438 25,296 — 142 25,438 $ 299,677 $ — $ 434 $ 300,111 December 31, 2018 Cash equivalents: Commercial paper $ 7,775 $ — $ — $ 7,775 7,775 — — 7,775 Short-term investments: Commercial paper 147,860 — — 147,860 Corporate bonds 46,836 (35 ) — 46,801 U.S. Government and agency securities 62,638 (9 ) 12 62,641 257,334 (44 ) 12 257,302 $ 265,109 $ (44 ) $ 12 $ 265,077

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jun. 30, 2019
Leases [Abstract]
Schedule of Lease Expense, Weighted Averages and Supplemental Cash Flow Information	The elements of lease expense were as follows (in thousands): Three Months Ended Six Months Ended Operating lease cost $ 1,272 $ 2,550 Finance lease cost: Amortization of right-of-use assets 3,320 6,690 Interest on lease liabilities 823 1,693 Total finance lease cost 4,143 8,383 Other lease cost, net (1) 126 68 Total lease cost $ 5,541 $ 11,001 (1) Other lease cost, net includes short-term sublease income, short-term lease costs, and variable lease costs, which are immaterial. The following table presents the lease-related assets and liabilities recorded on the Consolidated Balance Sheet (in thousands): As of June 30, 2019 Operating leases: Other assets $ 23,410 Other current liabilities $ 3,995 Other liabilities 21,638 Total operating lease liabilities $ 25,633 Finance leases: Property and equipment, net $ 65,621 Finance lease obligations—current $ 9,306 Finance lease obligations—net of current portion 57,409 Total finance lease liabilities $ 66,715 The following table summarizes the weighted average remaining lease term and weighted average discount rate as of June 30, 2019 : As of June 30, 2019 Weighted average remaining lease term: Operating leases 6.52 years Finance leases 6.75 years Weighted average discount rate: Operating leases 4.26 % Finance leases 4.37 %
Schedule of Cash Flow Activities, Lessee	Supplemental cash flow information related to leases was as follows (in thousands): Six Months Ended Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating lea ses $ (2,390 ) Operating cash flows used in finance lea ses (1,681 ) Finance cash flows used in finance lea ses (5,475 )
Schedule of Future Minimum Operating Lease Payments	Future minimum lease payments under non-cancelable leases for the six months ending December 31, 2019 and years ending December 31, 2020 , 2021 , 2022 , 2023 , and thereafter are as follows (in thousands): Operating Leases Finance Leases 2019 $ 2,313 $ 6,000 2020 4,793 11,400 2021 4,182 10,960 2022 4,177 10,547 2023 4,201 10,599 Thereafter 9,756 27,715 Total future minimum lease payments 29,422 77,221 Less imputed interest 3,789 10,506 Total $ 25,633 $ 66,715
Schedule of Future Minimum Finance Lease Payments	Future minimum lease payments under non-cancelable leases for the six months ending December 31, 2019 and years ending December 31, 2020 , 2021 , 2022 , 2023 , and thereafter are as follows (in thousands): Operating Leases Finance Leases 2019 $ 2,313 $ 6,000 2020 4,793 11,400 2021 4,182 10,960 2022 4,177 10,547 2023 4,201 10,599 Thereafter 9,756 27,715 Total future minimum lease payments 29,422 77,221 Less imputed interest 3,789 10,506 Total $ 25,633 $ 66,715
Schedule of Commitments Under Previous Presentation	The following table represents the Company’s commitments under its previous presentation of its capital, operating, and build-to-suit lease agreements as of December 31, 2018 (in thousands): Capital Lease Operating Build-to-Suit Periods ending 2019 $ 4,392 $ 4,904 $ 9,451 2020 1,754 4,783 9,522 2021 481 4,185 10,354 2022 — 4,180 10,520 2023 — 4,205 10,599 Thereafter — 9,760 27,715 Total minimum payments required $ 6,627 $ 32,017 $ 78,161 Amounts representing interest 648 Present value of net minimum payments 5,979 Current maturities 3,884 Long-term payment obligations $ 2,095

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2019
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued expenses consisted of the following as of the dates indicated (in thousands): As of June 30, As of December 31, Vendor accruals $ 20,315 $ 17,817 Sales and use tax payable 14,013 12,232 Accrued bonus 11,246 12,906 Income tax payable 6,687 10 Payroll-related liabilities 2,604 2,406 Accrued vacation 822 3,787 Total accrued expenses $ 55,687 $ 49,158

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2019
Equity [Abstract]
Class of Treasury Stock	The following table summarizes the Company’s cumulative share repurchase activity of both programs noted above, excluding shares withheld to satisfy tax withholding obligations in connection with the vesting of employee restricted stock units (in thousands except share and per share amounts): Shares Repurchased Average Price Paid per Share (1) Value of Shares Repurchased (1) Remaining Amount Authorized Balance as of December 31, 2018 5,032,648 $ 28.80 $ 145,000 $ 155,000 Repurchases of common stock for the three months ended: March 31, 2019 532,412 51.64 27,500 (27,500 ) June 30, 2019 — — — — Balance as of June 30, 2019 5,565,060 $ 32.84 $ 172,500 $ 127,500 (1) Average price paid per share excludes broker commissions. Value of shares repurchased includes broker commissions.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	6 Months Ended
	Jun. 30, 2019
Share-based Payment Arrangement [Abstract]
Schedule of Black-Scholes Valuation Assumptions Used to Determine Fair Value of Options Granted	The fair value of options granted in the periods presented below using the Black-Scholes pricing model has been based on the following assumptions: Three Months Ended Six Months Ended 2019 2018 2019 2018 Volatility 39.2% - 39.5% 38.6% - 42.1% 39.2% - 39.5% 38.6% - 42.1% Risk-free interest rate 1.9% - 2.4% 2.8% - 2.9% 1.9% - 2.5% 2.6% - 2.9% Expected term (in years) 5.5 - 6.16 5.5 - 6.08 5.5 - 6.16 5.5 - 6.25 Dividend rate —% —% —% —%
Summary of Stock Option Activity	The following table summarizes the activity for the Company’s options during the six months ended June 30, 2019 (in thousands except share and per share amounts): Shares Weighted-Average Exercise Price Weighted-Average Remaining Contract Term (in years) Aggregate Intrinsic Value Outstanding at December 31, 2018 6,890,994 $ 12.91 Granted 320,888 68.84 Exercised (688,890 ) 11.38 Forfeited/Canceled (186,644 ) 28.31 Outstanding at June 30, 2019 6,336,348 15.46 7.62 $ 293,334 Total exercisable at June 30, 2019 3,256,827 11.65 7.13 161,917
Summary of Intrinsic Value of Options Exercised	The following table summarizes the weighted-average grant date fair value of options granted, intrinsic value of options exercised and fair value of awards vested during the three and six months ended June 30, 2019 and 2018 (in thousands except per share amounts): Three Months Ended Six Months Ended 2019 2018 2019 2018 Weighted-average grant date fair value of options granted $ 25.00 $ 13.51 $ 28.90 $ 12.50 Intrinsic value of options exercised 8,373 1,397 36,896 11,196 Fair value of awards vested 12,108 11,469 18,191 14,399
Summary of Weighted Average Grant Date Fair Value and Fair Value of Awards Vested	The following table summarizes the weighted-average grant date fair value of options granted, intrinsic value of options exercised and fair value of awards vested during the three and six months ended June 30, 2019 and 2018 (in thousands except per share amounts): Three Months Ended Six Months Ended 2019 2018 2019 2018 Weighted-average grant date fair value of options granted $ 25.00 $ 13.51 $ 28.90 $ 12.50 Intrinsic value of options exercised 8,373 1,397 36,896 11,196 Fair value of awards vested 12,108 11,469 18,191 14,399
Summary of Unvested RSU Activity	The following table summarizes the activity for the Company’s unvested RSUs during the six months ended June 30, 2019 : Shares Weighted-Average Unvested at December 31, 2018 3,480,368 $ 22.87 Granted 868,828 67.48 Vested (680,661 ) 18.65 Forfeited/Canceled (385,591 ) 26.96 Unvested at June 30, 2019 3,282,944 35.07
Schedule of Stock-Based Compensation Expense	Total stock-based compensation expense included in the Consolidated Statements of Operations for the periods presented below is as follows (in thousands): Three Months Ended Six Months Ended 2019 2018 2019 2018 Cost of revenue $ 1,456 $ 927 $ 2,555 $ 1,473 Marketing 723 699 1,354 1,177 Product development 5,294 4,025 8,813 6,664 General and administrative 3,364 2,966 6,197 5,757 Total stock-based compensation expense $ 10,837 $ 8,617 $ 18,919 $ 15,071

Basis of Presentation and Sum_4

Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	Jan. 01, 2019	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018	Mar. 31, 2018
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue		$ 181,095	$ 132,387	$ 350,434	$ 253,299
Cost of revenue		58,605	45,409	111,263	$ 86,704
Operating lease right-of-use assets, net of current		23,410		23,410
Operating lease, liability		25,633		25,633
Derecognized existing facility financing obligation		0		0		$ (59,991)
Property and equipment, net reclassified		128,409		128,409		$ 120,179
Cumulative effect adjustment related to the adoption of the leasing standard	$ 7,116
Finance lease, right-of-use asset		65,621		65,621
Finance lease, liability		$ 66,715		$ 66,715
Accounting Standards Update 2016-02
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Operating lease right-of-use assets, net of current	25,400
Operating lease, liability	27,800
Derecognized existing facility financing obligation	60,000
Property and equipment, net reclassified	(51,100)
Cumulative effect of new accounting principle in period of adoption, gain recognized	(9,300)
Cumulative effect of new accounting principle in period of adoption, tax impact	(2,200)
Finance lease, right-of-use asset	66,700
Convertible Debt | Convertible Senior Notes due 2023
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Interest rate, stated percentage							0.00%
Conversion price (in dollars per share)							$ 36.27
Building | Accounting Standards Update 2016-02
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Property and equipment, net reclassified	(22,100)
Leasehold improvements | Accounting Standards Update 2016-02
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Property and equipment, net reclassified	22,100
Finance lease, liability	66,700
Accumulated Deficit
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cumulative effect adjustment related to the adoption of the leasing standard	7,116
Accumulated Deficit | Accounting Standards Update 2016-02
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Cumulative effect adjustment related to the adoption of the leasing standard	$ 7,100
Restatement Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue			2,800
Cost of revenue			$ 1,400

Basis of Presentation and Sum_5

Basis of Presentation and Summary of Significant Accounting Policies - Cash, Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 359,159	$ 366,985	$ 357,820	$ 315,442
Short-term investments	274,673	257,302
Long-term investments	25,438	0
Total cash, cash equivalents and short-term investments	$ 659,270	$ 624,287

Revenue - Summary of Revenue by

Revenue - Summary of Revenue by Type (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue	$ 181,095	$ 132,387	$ 350,434	$ 253,299
Marketplace revenue
Disaggregation of Revenue [Line Items]
Revenue	134,403	91,306	260,533	179,273
Services revenue
Disaggregation of Revenue [Line Items]
Revenue	45,896	39,507	88,067	72,112
Other revenue
Disaggregation of Revenue [Line Items]
Revenue	$ 796	$ 1,574	$ 1,834	$ 1,914

Revenue - Narrative (Details)

Revenue - Narrative (Details) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jul. 15, 2018	Jun. 30, 2019
Revenue from External Customer [Line Items]
Revenue recognized in the period	$ 7,500,000
Marketplace revenue
Revenue from External Customer [Line Items]
Listing fee per item	$ 0.20
Listing fee, term	4 months
Fee for each completed transaction, percent		3.50%	5.00%
Marketplace revenue | Minimum
Revenue from External Customer [Line Items]
Etsy payment fees, percent	3.00%
Marketplace revenue | Maximum
Revenue from External Customer [Line Items]
Etsy payment fees, percent	4.50%
Pattern
Revenue from External Customer [Line Items]
Subscription fee per month	$ 15
Etsy Plus
Revenue from External Customer [Line Items]
Subscription fee per month	$ 10
Subscription period	30 days

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Unrecognized tax benefits, period increase	$ 1
Unrecognized tax benefits	19.8	$ 18.8
Unrecognized tax benefits that would impact effective tax rate favorably	19.8
Income tax penalties and interest expense	0.3
Income tax penalties and interest accrued	$ 0.8	$ 0.5

Net Income Per Share - Calculat

Net Income Per Share - Calculation of Basic and Diluted Net (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Numerator:
Net income	$ 18,223	$ 31,579	$ 3,379	$ 12,967	$ 49,802	$ 16,346
Net income allocated to participating securities under the two-class method	(9)		(3)		(24)	(16)
Net income applicable to common stockholders—basic	18,214		3,376		49,778	16,330
Dilutive effect of net income allocated to participating securities under the two-class method	9		3		24	16
Net income attributable to common stockholders—diluted	$ 18,223		$ 3,379		$ 49,802	$ 16,346
Denominator:
Weighted average common shares outstanding—basic (in shares)	120,198,526		119,450,194		119,848,289	120,819,201
Weighted average common shares outstanding - diluted (in shares)	130,807,743		125,551,759		130,463,025	126,186,664
Net income per share applicable to common stockholders—basic (in dollars per shares)	$ 0.15		$ 0.03		$ 0.42	$ 0.14
Net income per share applicable to common stockholders—diluted (in dollars per share)	$ 0.14		$ 0.03		$ 0.38	$ 0.13
Participating securities excluded from computation of earnings per share (in shares)	1,054,776		760,627		649,167	1,476,215
Participating Securities
Denominator:
Participating securities excluded from computation of earnings per share (in shares)	22,993				23,759
Stock Options
Denominator:
Dilutive effect of assumed conversion (in shares)	4,667,849		3,964,746		4,764,942	3,559,951
Restricted stock units
Denominator:
Dilutive effect of assumed conversion (in shares)	1,693,130		2,053,861		1,841,363	1,733,777
Convertible Debt
Denominator:
Dilutive effect of assumed conversion (in shares)	4,226,839		0		3,989,402	0
Restricted Stock
Denominator:
Dilutive effect of assumed conversion (in shares)	21,399		82,958		19,029	73,735

Net Income Per Share - Summary

Net Income Per Share - Summary of Shares Excluded from the Calculation of Diluted Net (Loss) Income Per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	1,054,776	760,627	649,167	1,476,215
Stock options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	337,907	642,418	224,706	421,412
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	716,869	118,209	424,461	1,054,803

Segment and Geographic Inform_3

Segment and Geographic Information (Details) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Jun. 30, 2019USD ($)segment	Jun. 30, 2018USD ($)
Revenue, Major Customer [Line Items]
Number of operating segments | segment					1
Number of reportable segments | segment					1
Revenue	$ 181,095		$ 132,387		$ 350,434	$ 253,299
(Loss) income before income taxes	16,369		4,625		47,806	17,606
Net income	18,223	$ 31,579	3,379	$ 12,967	49,802	16,346
United States
Revenue, Major Customer [Line Items]
Revenue	119,670		96,805		232,934	181,728
(Loss) income before income taxes	(11,897)		8,017		(6,902)	5,752
Net income	(6,146)		7,525		2,546	5,507
International
Revenue, Major Customer [Line Items]
Revenue	61,425		35,582		117,500	71,571
(Loss) income before income taxes	28,266		(3,392)		54,708	11,854
Net income	$ 24,369		$ (4,146)		$ 47,256	$ 10,839

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Major Categories of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - Recurring - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	$ 272,246	$ 252,631
Short-term investments	274,673	257,302
Funds receivable and customer accounts	20,308	9,229
Long-term investments	25,438
Asset	592,665	519,162
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		7,775
Short-term investments	79,028	147,860
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	83,924	46,801
Long-term investments	25,438
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	272,246	244,856
Funds receivable and customer accounts	20,308	9,229
U.S. Government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	111,721	62,641
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	272,246	244,856
Short-term investments	111,721	62,641
Funds receivable and customer accounts	20,308	9,229
Long-term investments	0
Asset	404,275	316,726
Level 1 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		0
Short-term investments	0	0
Level 1 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Long-term investments	0
Level 1 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	272,246	244,856
Funds receivable and customer accounts	20,308	9,229
Level 1 | U.S. Government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	111,721	62,641
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	7,775
Short-term investments	162,952	194,661
Funds receivable and customer accounts	0	0
Long-term investments	25,438
Asset	188,390	202,436
Level 2 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		7,775
Short-term investments	79,028	147,860
Level 2 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	83,924	46,801
Long-term investments	25,438
Level 2 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Funds receivable and customer accounts	0	0
Level 2 | U.S. Government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Short-term investments	0	0
Funds receivable and customer accounts	0	0
Long-term investments	0
Asset	0	0
Level 3 | Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents		0
Short-term investments	0	0
Level 3 | Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	0	0
Long-term investments	0
Level 3 | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Funds receivable and customer accounts	0	0
Level 3 | U.S. Government and agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Short-term investments	$ 0	$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Jun. 30, 2019	Dec. 31, 2018
Convertible Debt | Convertible Senior Notes due 2023 | Reported Value Measurement | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt, fair value	$ 303.5	$ 279.1

Marketable Securities (Details)

Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Securities, Available-for-sale [Line Items]
Cost	$ 299,677	$ 265,109
Gross Unrealized Holding Loss	0	(44)
Gross Unrealized Holding Gain	434	12
Fair Value	300,111	265,077
Cash Equivalents
Debt Securities, Available-for-sale [Line Items]
Cost		7,775
Gross Unrealized Holding Loss		0
Gross Unrealized Holding Gain		0
Fair Value		7,775
Cash Equivalents | Commercial paper
Debt Securities, Available-for-sale [Line Items]
Cost		7,775
Gross Unrealized Holding Loss		0
Gross Unrealized Holding Gain		0
Fair Value		7,775
Short-term Investments
Debt Securities, Available-for-sale [Line Items]
Cost	274,381	257,334
Gross Unrealized Holding Loss	0	(44)
Gross Unrealized Holding Gain	292	12
Fair Value	274,673	257,302
Short-term Investments | Commercial paper
Debt Securities, Available-for-sale [Line Items]
Cost	79,028	147,860
Gross Unrealized Holding Loss	0	0
Gross Unrealized Holding Gain	0	0
Fair Value	79,028	147,860
Short-term Investments | Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Cost	83,778	46,836
Gross Unrealized Holding Loss	0	(35)
Gross Unrealized Holding Gain	146	0
Fair Value	83,924	46,801
Short-term Investments | U.S. Government and agency securities
Debt Securities, Available-for-sale [Line Items]
Cost	111,575	62,638
Gross Unrealized Holding Loss	0	(9)
Gross Unrealized Holding Gain	146	12
Fair Value	111,721	$ 62,641
Long-term investments
Debt Securities, Available-for-sale [Line Items]
Cost	25,296
Gross Unrealized Holding Loss	0
Gross Unrealized Holding Gain	142
Fair Value	25,438
Long-term investments | Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Cost	25,296
Gross Unrealized Holding Loss	0
Gross Unrealized Holding Gain	142
Fair Value	$ 25,438

Leases (Details)

Leases (Details)	Jun. 30, 2019USD ($)ft²
Corporate Headquarters
Lessee, Lease, Description [Line Items]
Area of real estate property (in sqft) | ft²	225,135
Lease Arrangements, Hosting | DFS
Lessee, Lease, Description [Line Items]
Lessee, finance lease, term of contract	36 months
Lessee, finance lease, discount rate	0.00%
Lessee, finance lease, buy-out option, amount	$ 1
Lease Arrangements, Hosting and Computer Equipment | ePlus
Lessee, Lease, Description [Line Items]
Lessee, finance lease, term of contract	36 months
Lessee, finance lease, buy-out option, amount	$ 1
Lease Arrangements, Hosting and Computer Equipment | ePlus | Minimum
Lessee, Lease, Description [Line Items]
Lessee, finance lease, discount rate	3.71%
Lease Arrangements, Hosting and Computer Equipment | ePlus | Maximum
Lessee, Lease, Description [Line Items]
Lessee, finance lease, discount rate	6.93%

Leases - Elements of Lease Expe

Leases - Elements of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Operating lease cost	$ 1,272	$ 2,550
Finance lease cost:
Amortization of right-of-use assets	3,320	6,690
Interest on lease liabilities	823	1,693
Total finance lease cost	4,143	8,383
Other lease income, net	126	68
Total lease cost	$ 5,541	$ 11,001

Leases - Lease-related Assets a

Leases - Lease-related Assets and Liabilities (Details) $ in Thousands	Jun. 30, 2019USD ($)
Operating leases:
Other assets	$ 23,410
Other current liabilities	3,995
Other liabilities	21,638
Total operating lease liabilities	25,633
Finance leases:
Property and equipment, net	65,621
Finance lease obligations—current	9,306
Finance lease obligations—net of current portion	57,409
Total finance lease liabilities	$ 66,715

Leases - Weighted Average Remai

Leases - Weighted Average Remaining Lease Term and Weighted Average Discount Rate (Details)	Jun. 30, 2019
Leases [Abstract]
Weighted average remaining lease term, operating leases	6 years 6 months 7 days
Weighted average remaining lease term, finance leases	6 years 9 months
Weighted average discount rate, operating leases	4.26%
Weighted average discount rate, finance leases	4.37%

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flow Information (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019USD ($)
Leases [Abstract]
Operating cash flows used in operating leases	$ (2,390)
Operating cash flows used in finance leases	(1,681)
Finance cash flows used in finance leases	$ (5,475)

Leases - Future Minimum Lease P

Leases - Future Minimum Lease Payments Under Non-cancelable Leases (Details) $ in Thousands	Jun. 30, 2019USD ($)
Operating Leases
2019	$ 2,313
2020	4,793
2021	4,182
2022	4,177
2023	4,201
Thereafter	9,756
Total future minimum lease payments	29,422
Less imputed interest	3,789
Total	25,633
Finance Leases
2019	6,000
2020	11,400
2021	10,960
2022	10,547
2023	10,599
Thereafter	27,715
Total future minimum lease payments	77,221
Less imputed interest	10,506
Total	$ 66,715

Leases - Commitments Under Prev

Leases - Commitments Under Previous Presentation (Details) $ in Thousands	Dec. 31, 2018USD ($)
Capital Lease Obligations
2019	$ 4,392
2020	1,754
2021	481
2022	0
2023	0
Thereafter	0
Total minimum payments required	6,627
Amounts representing interest	648
Present value of net minimum payments	5,979
Current maturities	3,884
Long-term payment obligations	2,095
Operating Leases
2019	4,904
2020	4,783
2021	4,185
2022	4,180
2023	4,205
Thereafter	9,760
Total minimum payments required	32,017
Build-to-Suit Lease
2019	9,451
2020	9,522
2021	10,354
2022	10,520
2023	10,599
Thereafter	27,715
Total minimum payments required	$ 78,161

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Vendor accruals	$ 20,315	$ 17,817
Sales and use tax payable	14,013	12,232
Accrued bonus	11,246	12,906
Income tax payable	6,687	10
Payroll-related liabilities	2,604	2,406
Accrued vacation	822	3,787
Total accrued expenses	$ 55,687	$ 49,158

Debt - Convertible Debt (Detail

Debt - Convertible Debt (Details)	Jun. 30, 2019USD ($)	Mar. 31, 2018USD ($)	Jun. 30, 2019USD ($)day	Jun. 30, 2018USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2018USD ($)	Dec. 31, 2018USD ($)
Debt Instrument [Line Items]
Purchase of capped call		$ 34,200,000			$ 0	$ 34,224,000
Non-cash interest expense					6,314,000	3,914,000
Convertible Senior Notes due 2023 | Convertible Debt
Debt Instrument [Line Items]
Debt instrument		$ 345,000,000
Interest rate, stated percentage		0.00%
Proceeds from issuance of convertible senior notes		$ 335,000,000
Threshold percentage of stock price trigger			130.00%
Threshold trading days | day			20
Threshold consecutive trading days | day			30
If-converted value in excess of principal	$ 238,700,000
If-converted value in excess of principal offset by capped call transaction	583,700,000
Capitalization of debt issuance costs		$ 10,000,000
Non-cash interest expense			$ 3,800,000	$ 3,600,000	7,500,000	$ 4,800,000
Unamortized debt issuance expense	5,900,000		5,900,000		5,900,000		$ 6,700,000
Level 2 | Reported Value Measurement | Convertible Senior Notes due 2023 | Convertible Debt
Debt Instrument [Line Items]
Long-term debt, fair value	$ 303,500,000		$ 303,500,000		$ 303,500,000		$ 279,100,000

Debt - Credit Agreement (Detail

Debt - Credit Agreement (Details) - USD ($)	Feb. 25, 2019	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2018
Line of Credit Facility [Line Items]
Non-cash interest expense			$ 6,314,000	$ 3,914,000
Credit Agreement
Line of Credit Facility [Line Items]
Maximum required secured net leverage ratio	300.00%
Maximum required secured net leverage ratio, certain material acquisitions	350.00%
Minimum required interest coverage ratio	250.00%
Capitalization of debt issuance costs	$ 1,400,000
Non-cash interest expense		$ 100,000	100,000
Unamortized debt issuance expense		1,300,000	1,300,000
Credit Agreement | Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity	200,000,000
Maximum unrestricted cash	100,000,000
Contingent right to increase maximum borrowing capacity amount	100,000,000
Line of credit facility, amount outstanding		$ 0	$ 0
Credit Agreement | Letter of Credit
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity	30,000,000
Credit Agreement | Bridge Loan
Line of Credit Facility [Line Items]
Line of credit, maximum borrowing capacity	$ 10,000,000
Federal Funds Effective Swap Rate | Credit Agreement | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
London Interbank Offered Rate (LIBOR) | Credit Agreement | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.00%
Minimum | Credit Agreement | Revolving Credit Facility
Line of Credit Facility [Line Items]
Commitment fee amount	0.20%
Minimum | One-Month London Interbank Offered Rate (LIBOR) Plus 1% | Credit Agreement | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.25%
Minimum | London Interbank Offered Rate (LIBOR), Adjusted | Credit Agreement | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.25%
Maximum | Credit Agreement | Revolving Credit Facility
Line of Credit Facility [Line Items]
Commitment fee amount	0.35%
Maximum | One-Month London Interbank Offered Rate (LIBOR) Plus 1% | Credit Agreement | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	0.875%
Maximum | London Interbank Offered Rate (LIBOR), Adjusted | Credit Agreement | Revolving Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate	1.875%

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($)	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Nov. 01, 2018	Nov. 30, 2017
Equity [Abstract]
Stock repurchase program, authorized amount (up to)							$ 200,000,000	$ 100,000,000
Shares Repurchased (in shares)	5,565,060	5,032,648		532,412
Average Price Paid per Share (in dollars per share)	$ 32.84	$ 28.80		$ 51.64
Stock repurchased and retired during period, value, including broker fees			$ 0	$ (27,500,000)
Value of Shares Repurchased	$ 172,500,000	$ 145,000,000		$ 27,492,000	$ 21,075,000	$ 68,586,000
Remaining Amount Authorized	$ 127,500,000	$ 155,000,000	$ 127,500,000

Stock-Based Compensation - Addi

Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions	Jan. 02, 2019	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense—acquisitions		$ 0.4	$ 0.7	$ 0.7	$ 1.4
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation		24.5		$ 24.5
Total unrecognized compensation, period of recognition				2 years 8 months 8 days
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total unrecognized compensation, period of recognition				3 years 3 months 3 days
Total unrecognized compensation		$ 103.4		$ 103.4
2015 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of additional shares issued annually (in shares)	2,395,434
Number of shares authorized (in shares)		31,831,808		31,831,808
Number of shares available for grant (in shares)		20,697,053		20,697,053

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value of Options Granted Using the Black-Scholes Pricing Model (Details) - Stock options	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility, minimum	39.20%	38.60%	39.20%	38.60%
Volatility, maximum	39.50%	42.10%	39.50%	42.10%
Risk-free interest rate, minimum	1.90%	2.80%	1.90%	2.60%
Risk-free interest rate, maximum	2.40%	2.90%	2.50%	2.90%
Dividend rate	0.00%	0.00%	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	5 years 6 months	5 years 6 months	5 years 6 months	5 years 6 months
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term	6 years 1 month 28 days	6 years 29 days	6 years 1 month 28 days	6 years 3 months

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2019
Shares
Outstanding, beginning balance (in shares)	6,890,994
Granted (in shares)	320,888
Exercised (in shares)	(688,890)
Forfeited/Canceled (in shares)	(186,644)
Outstanding, ending balance (in shares)	6,336,348
Total exercisable at June 30, 2019 (in shares)	3,256,827
Weighted-Average Exercise Price
Outstanding, beginning balance (in dollars per share)	$ 12.91
Granted (in dollars per share)	68.84
Exercised (in dollars per share)	11.38
Forfeited/Canceled (in dollars per share)	28.31
Outstanding, ending balance (in dollars per share)	15.46
Total exercisable at June 30, 2019 (in dollars per share)	$ 11.65
Weighted-Average Remaining Contract Term (in years)
Outstanding at June 30, 2019, Weighted-Average Remaining Contract Term	7 years 7 months 13 days
Total exercisable at June 30, 2019, Weighted-Average Remaining Contract Term	7 years 1 month 17 days
Aggregate Intrinsic Value
Outstanding at June 30, 2019, Aggregate Intrinsic Value	$ 293,334
Total exercisable at June 30, 2019, Aggregate Intrinsic Value	$ 161,917

Stock-Based Compensation - Weig

Stock-Based Compensation - Weighted Average Grant Date Fair Value of Options Granted, Intrinsic Value of Options Exercised and Fair Value of Awards Vested (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Payment Arrangement [Abstract]
Weighted average grant date fair value of options (in dollars per share)	$ 25	$ 13.51	$ 28.90	$ 12.50
Intrinsic value of options exercised	$ 8,373	$ 1,397	$ 36,896	$ 11,196
Fair value of awards vested	$ 12,108	$ 11,469	$ 18,191	$ 14,399

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Unvested RSUs (Details) - RSUs	6 Months Ended
	Jun. 30, 2019$ / sharesshares
Shares
Unvested at December 31, 2018 (in shares) | shares	3,480,368
Granted (in shares) | shares	868,828
Vested (in shares) | shares	(680,661)
Forfeited/Cancelled (in shares) | shares	(385,591)
Unvested at June 30, 2019 (in shares) | shares	3,282,944
Weighted-Average Grant Date Fair Value
Unvested at December 31, 2018 (in dollars per share) | $ / shares	$ 22.87
Granted (in dollars per share) | $ / shares	67.48
Vested (in dollars per share) | $ / shares	18.65
Forfeited/Cancelled (in dollars per share) | $ / shares	26.96
Unvested at June 30, 2019 (in dollars per share) | $ / shares	$ 35.07

Stock-Based Compensation - Allo

Stock-Based Compensation - Allocated Share-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 10,837	$ 8,617	$ 18,919	$ 15,071
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	1,456	927	2,555	1,473
Marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	723	699	1,354	1,177
Product development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	5,294	4,025	8,813	6,664
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 3,364	$ 2,966	$ 6,197	$ 5,757

Subsequent Event (Details)

Subsequent Event (Details) $ in Millions	Jul. 21, 2019USD ($)
Reverb Holdings Inc. | Subsequent Event
Subsequent Event [Line Items]
Merger agreement, consideration to be transferred	$ 275