Cover
Cover - USD ($) shares in Millions, $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 19, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-35580 | ||
Entity Registrant Name | SERVICENOW, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-2056195 | ||
Entity Address, Address Line One | 2225 Lawson Lane | ||
Entity Address, City or Town | Santa Clara | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 95054 | ||
City Area Code | 408 | ||
Local Phone Number | 501-8550 | ||
Title of 12(b) Security | Common stock, par value $0.001 per share | ||
Trading Symbol | NOW | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 87.8 | ||
Entity Common Stock, Shares Outstanding | 205 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for its 2024 Annual Meeting of Stockholders (Proxy Statement) to be filed within 120 days of the registrant’s fiscal year ended December 31, 2023, are incorporated by reference in Part III of this Report on Form 10-K. Except with respect to information specifically incorporated by reference in this Form 10-K, the Proxy Statement is not deemed to be filed as part of this Form 10-K. | ||
Entity Central Index Key | 0001373715 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 238 |
Auditor Location | San Jose, California |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,897 | $ 1,470 |
Short-term investments | 2,980 | 2,810 |
Accounts receivable, net | 2,036 | 1,725 |
Current portion of deferred commissions | 461 | 369 |
Prepaid expenses and other current assets | 403 | 280 |
Total current assets | 7,777 | 6,654 |
Deferred commissions, less current portion | 919 | 742 |
Long-term investments | 3,203 | 2,117 |
Property and equipment, net | 1,358 | 1,053 |
Operating lease right-of-use assets | 715 | 682 |
Intangible assets, net | 224 | 232 |
Goodwill | 1,231 | 824 |
Deferred tax assets | 1,508 | 636 |
Other assets | 452 | 359 |
Total assets | 17,387 | 13,299 |
Current liabilities: | ||
Accounts payable | 126 | 274 |
Accrued expenses and other current liabilities | 1,365 | 975 |
Current portion of deferred revenue | 5,785 | 4,660 |
Current portion of operating lease liabilities | 89 | 96 |
Total current liabilities | 7,365 | 6,005 |
Deferred revenue, less current portion | 81 | 70 |
Operating lease liabilities, less current portion | 707 | 650 |
Long-term debt, net | 1,488 | 1,486 |
Other long-term liabilities | 118 | 56 |
Total liabilities | 9,759 | 8,267 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 10,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.001 par value; shares authorized: 600,000; shares issued: 205,619 and 202,882; shares outstanding: 204,724 and 202,882 | 0 | 0 |
Treasury stock, at cost (shares held: 895 and 0) | (535) | 0 |
Additional paid-in capital | 6,131 | 4,796 |
Accumulated other comprehensive loss | (37) | (102) |
Retained earnings | 2,069 | 338 |
Total stockholders’ equity | 7,628 | 5,032 |
Total liabilities and stockholders’ equity | $ 17,387 | $ 13,299 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares, issued (in shares) | 205,619,000 | 202,882,000 |
Common stock, shares, outstanding (in shares) | 204,724,000 | 202,882,000 |
Treasury stock, common, shares (in shares) | 895,000 | 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||||
Revenues: | ||||||
Total revenues | $ 8,971 | $ 7,245 | $ 5,896 | |||
Cost of revenues: | ||||||
Total cost of revenues | [1] | 1,921 | 1,573 | 1,353 | ||
Gross profit | [1] | 7,050 | 5,672 | 4,543 | ||
Operating expenses: | ||||||
Sales and marketing | 3,301 | [1] | 2,814 | 2,292 | [1] | |
Research and development | 2,124 | [1] | 1,768 | 1,397 | [1] | |
General and administrative | 863 | [1] | 735 | 597 | [1] | |
Total operating expenses | [1] | 6,288 | 5,317 | 4,286 | ||
Income from operations | 762 | 355 | 257 | |||
Interest income | 302 | 82 | 20 | |||
Other expense, net | (56) | (38) | (28) | |||
Income before income taxes | 1,008 | 399 | 249 | |||
(Benefit from) provision for income taxes | (723) | 74 | 19 | |||
Net income | $ 1,731 | $ 325 | $ 230 | |||
Net income per share - basic (in USD per share) | $ 8.48 | $ 1.61 | $ 1.16 | |||
Net income per share - diluted (in USD per share) | $ 8.42 | $ 1.60 | $ 1.13 | |||
Weighted-average shares used to compute net income per share - basic (in shares) | 204,137,000 | 201,430,000 | 198,094,000 | |||
Weighted-average shares used to compute net income per share - diluted (in shares) | 205,591,000 | 203,535,000 | 203,167,000 | |||
Other comprehensive income (loss): | ||||||
Foreign currency translation adjustments | $ 27 | $ (70) | $ (41) | |||
Unrealized gains (losses) on investments, net of tax | 38 | (66) | (19) | |||
Other comprehensive income (loss) | 65 | (136) | (60) | |||
Comprehensive income | 1,796 | 189 | 170 | |||
Subscription | ||||||
Revenues: | ||||||
Total revenues | 8,680 | 6,891 | 5,573 | |||
Cost of revenues: | ||||||
Total cost of revenues | 1,606 | [1] | 1,187 | 1,022 | [1] | |
Professional services and other | ||||||
Revenues: | ||||||
Total revenues | 291 | 354 | 323 | |||
Cost of revenues: | ||||||
Total cost of revenues | $ 315 | [1] | $ 386 | $ 331 | [1] | |
[1] Includes stock-based compensation as follows: Year Ended December 31, 2023 2022 2021 Cost of revenues: Subscription $ 202 $ 157 $ 128 Professional services and other 52 67 59 Operating expenses: Sales and marketing 505 459 389 Research and development 579 495 395 General and administrative 266 223 160 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-based compensation | $ 1,604 | $ 1,401 | $ 1,131 |
Sales and marketing | |||
Stock-based compensation | 505 | 459 | 389 |
Research and development | |||
Stock-based compensation | 579 | 495 | 395 |
General and administrative | |||
Stock-based compensation | 266 | 223 | 160 |
Subscription | Cost of revenues | |||
Stock-based compensation | 202 | 157 | 128 |
Professional services and other | Cost of revenues | |||
Stock-based compensation | $ 52 | $ 67 | $ 59 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Treasury Stock | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit) Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2020 | 195,845,000 | ||||||||
Beginning balance, treasury (in shares) at Dec. 31, 2020 | 0 | ||||||||
Beginning balance at Dec. 31, 2020 | $ 2,834 | $ 0 | $ 0 | $ 2,974 | $ (234) | $ 94 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock issued under employee stock plans (in shares) | 3,227,000 | ||||||||
Common stock issued under employee stock plans | 168 | 168 | |||||||
Taxes paid related to net share settlement of equity awards | (612) | (612) | |||||||
Stock-based compensation | 1,130 | 1,130 | |||||||
Shares granted related to business combination | 6 | 6 | |||||||
Settlement of 2022 warrants (in shares) | 536,000 | ||||||||
Settlement of 2022 notes conversion feature | (225) | (225) | |||||||
Benefit from exercise of Note Hedge | 224 | 224 | |||||||
Other comprehensive income, net of tax | (60) | (60) | |||||||
Net income | 230 | 230 | |||||||
Ending balance (in shares) at Dec. 31, 2021 | 199,608,000 | ||||||||
Beginning balance, treasury (in shares) at Dec. 31, 2021 | 0 | ||||||||
Ending balance at Dec. 31, 2021 | $ 3,695 | $ (2) | $ 0 | $ 0 | 3,665 | $ (19) | (4) | $ 17 | 34 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Accounting standards update | Accounting Standards Update 2020-06 [Member] | ||||||||
Common stock issued under employee stock plans (in shares) | 2,700,000 | 2,671,000 | |||||||
Common stock issued under employee stock plans | $ 177 | 177 | |||||||
Taxes paid related to net share settlement of equity awards | (427) | (427) | |||||||
Stock-based compensation | 1,400 | 1,400 | |||||||
Settlement of 2022 warrants (in shares) | 603,000 | ||||||||
Settlement of 2022 notes conversion feature | (233) | (233) | |||||||
Benefit from exercise of Note Hedge | 233 | 233 | |||||||
Other comprehensive income, net of tax | (136) | (136) | |||||||
Net income | $ 325 | 325 | |||||||
Ending balance (in shares) at Dec. 31, 2022 | 202,882,000 | ||||||||
Beginning balance, treasury (in shares) at Dec. 31, 2022 | 0 | 0 | |||||||
Ending balance at Dec. 31, 2022 | $ 5,032 | $ 0 | $ 0 | 4,796 | 338 | (102) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Common stock issued under employee stock plans (in shares) | 2,700,000 | 2,737,000 | 5,000 | ||||||
Common stock issued under employee stock plans | $ 193 | $ 3 | 190 | ||||||
Common stock, repurchased (in shares) | (900,000) | (900,000) | |||||||
Common stock repurchased | $ (538) | $ (538) | |||||||
Taxes paid related to net share settlement of equity awards | (459) | (459) | |||||||
Stock-based compensation | 1,604 | 1,604 | |||||||
Other comprehensive income, net of tax | 65 | 65 | |||||||
Net income | $ 1,731 | 1,731 | |||||||
Ending balance (in shares) at Dec. 31, 2023 | 205,619,000 | ||||||||
Beginning balance, treasury (in shares) at Dec. 31, 2023 | (895,000) | 895,000 | |||||||
Ending balance at Dec. 31, 2023 | $ 7,628 | $ 0 | $ (535) | $ 6,131 | $ 2,069 | $ (37) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 1,731 | $ 325 | $ 230 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 562 | 433 | 472 |
Amortization of deferred commissions | 459 | 358 | 294 |
Stock-based compensation | 1,604 | 1,401 | 1,131 |
Deferred income taxes | (857) | 15 | (34) |
Other | 0 | 17 | 40 |
Changes in operating assets and liabilities, net of effect of business combinations: | |||
Accounts receivable | (300) | (340) | (401) |
Deferred commissions | (717) | (566) | (565) |
Prepaid expenses and other assets | (203) | (39) | (93) |
Accounts payable | (142) | 172 | 55 |
Deferred revenue | 1,085 | 904 | 960 |
Accrued expenses and other liabilities | 176 | 43 | 102 |
Net cash provided by operating activities | 3,398 | 2,723 | 2,191 |
Cash flows from investing activities: | |||
Purchases of property and equipment | (694) | (550) | (392) |
Business combinations, net of cash acquired | (282) | (91) | (785) |
Purchases of investments | (4,634) | (4,038) | (2,485) |
Purchases of non-marketable investments | (75) | (167) | (71) |
Sales and maturities of investments | 3,522 | 2,245 | 2,119 |
Other | (4) | 18 | 7 |
Net cash used in investing activities | (2,167) | (2,583) | (1,607) |
Cash flows from financing activities: | |||
Repayments of convertible senior notes attributable to principal | 0 | (94) | (61) |
Proceeds from employee stock plans | 194 | 177 | 167 |
Repurchases and retirement of common stock | (538) | 0 | 0 |
Taxes paid related to net share settlement of equity awards | (459) | (427) | (612) |
Net cash used in financing activities | (803) | (344) | (506) |
Foreign currency effect on cash, cash equivalents and restricted cash | 1 | (53) | (25) |
Net change in cash, cash equivalents and restricted cash | 429 | (257) | 53 |
Cash, cash equivalents and restricted cash at beginning of period | 1,475 | 1,732 | 1,679 |
Cash, cash equivalents and restricted cash at end of period | 1,904 | 1,475 | 1,732 |
Cash, cash equivalents and restricted cash at end of period: | |||
Cash and cash equivalents | 1,897 | 1,470 | 1,728 |
Restricted cash included in prepaid expenses and other current assets | 7 | 5 | 4 |
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | 1,904 | 1,475 | 1,732 |
Supplemental disclosures of other cash flow information: | |||
Interest paid | 23 | 24 | 41 |
Income taxes paid, net of refunds | 127 | 45 | 36 |
Non-cash investing and financing activities: | |||
Settlement of 2022 Notes conversion feature | 0 | 233 | 225 |
Benefit from exercise of 2022 Note Hedge | 0 | 233 | 224 |
Property and equipment included in accounts payable, accrued expenses and other liabilities | $ 44 | $ 74 | $ 63 |
Description of the Business
Description of the Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business ServiceNow was founded on a simple premise to make work flow better. Our intelligent platform, the Now Platform, is a cloud-based solution with embedded artificial intelligence and machine learning capabilities that helps global enterprises across industries, universities and governments unify and digitize their workflows. Our workflow applications built on the Now Platform are organized along four primary areas: Technology, Customer and Industry, Employee, and Creator. The products under each of our workflows help customers connect, automate and empower work across systems and silos to enable great outcomes for businesses and great experiences for people. The Now Platform orchestrates work across our customers’ cloud platforms and systems of choice, allowing our customers to get work done regardless of their current and future preferred systems of record and collaboration platforms. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) and include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Such management estimates and assumptions include, but are not limited to, standalone selling price (“SSP”) for each distinct performance obligation included in customer contracts with multiple performance obligations, the period of benefit for deferred commissions, valuation of intangible assets, the useful life of property and equipment and identifiable intangible assets, stock-based compensation expense and income taxes. Actual results could differ from those estimates. In January 2024, we completed an assessment of the useful life of our data center equipment and determined we should increase the estimated useful life of data center equipment from four Segments Our chief operating decision maker, the Chief Executive Officer, allocates resources and assesses financial performance based upon discrete financial information at the consolidated level. There are no segment managers who are held accountable by the chief operating decision maker, or anyone else, for operations, operating results and planning for levels or components below the consolidated unit level. Accordingly, we have determined that we operate as a single operating and reportable segment. Foreign Currency Translation and Transactions The functional currencies for our foreign subsidiaries are primarily their respective local currencies. Assets and liabilities of the wholly-owned foreign subsidiaries are translated into U.S. Dollars at exchange rates in effect at each period end. Amounts classified in stockholders’ equity are translated at historical exchange rates. Revenues and expenses are translated at the average exchange rates during the period. The resulting translation adjustments are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity. Foreign currency transaction gains and losses are included in other expense, net within the consolidated statements of comprehensive income, and have not been material for all periods presented. Revenue Recognition Revenues are recognized when control of services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. Subscription revenues Subscription revenues are primarily comprised of subscription fees that give customers access to the ordered subscription service, related support and updates, if any, to the subscribed service during the subscription term. We recognize subscription revenues ratably over the contract term beginning on the commencement date of each contract, which is the date we make our services available to our customers. Our contracts with customers typically include a fixed amount of consideration and are generally non-cancellable and without any refund-type provisions. We typically invoice our customers annually in advance for our subscription services upon execution of the initial contract or subsequent renewal, and our invoices are typically due within 30 days from the invoice date. Subscription revenues also include revenues from self-hosted offerings in which customers deploy, or we grant customers the option to deploy without significant penalty, our subscription service internally or contract with a third party to host the software. For these contracts, we account for the software element separately from the related support and updates as they are distinct performance obligations. Refer to the discussion below related to contracts with multiple performance obligations for further details. The transaction price is allocated to separate performance obligations on a relative SSP basis. The transaction price allocated to the software element is recognized when transfer of control of the software to the customer is complete. The transaction price allocated to the related support and updates are recognized ratably over the contract term. Professional services and other revenues Our professional services arrangements are primarily on a time-and-materials basis, and we generally invoice our customers monthly in arrears for these professional services based on actual hours and expenses incurred. Some of our professional services arrangements are on a fixed fee. Professional services revenues are recognized as services are delivered. Other revenues mainly consist of fees from customer training delivered on-site or through publicly available classes. Typical payment terms require our customers to pay us within 30 days from the invoice date. Contracts with multiple performance obligations We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. We evaluate the terms and conditions included within our customer contracts to ensure appropriate revenue recognition, including whether products and services are considered distinct performance obligations that should be accounted for separately versus together. For contracts with multiple performance obligations, the transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine SSP by considering the historical selling price of these performance obligations in similar transactions as well as other factors, including, but not limited to, competitive pricing of similar products, other software vendor pricing, industry publications and current pricing practices. Contract balances Deferred revenue consists primarily of payments received related to unsatisfied performance obligations at the end of the period. Once our services are available to customers, we record amounts due in accounts receivable and in deferred revenue. To the extent we bill customers in advance of the billing period commencement date, the accounts receivable and corresponding deferred revenue amounts are netted to zero on our consolidated balance sheets, unless such amounts have been paid as of the balance sheet date. Customer deposits primarily relate to payments received from customers which could be refundable pursuant to the terms of the contract and are presented under accrued expenses and other current liabilities on our consolidated balance sheets. Deferred Commissions Deferred commissions are the incremental selling costs that are associated with acquiring customer contracts and consist primarily of sales commissions paid to our sales organization and referral fees paid to independent third parties. Deferred commissions also include the associated payroll taxes and fringe benefit costs associated with payments to our sales employees to the extent they are incremental. Commissions and referral fees earned upon the execution of initial and expansion contracts are primarily deferred and amortized over a period of benefit that we have determined to be five years. Commissions earned upon the renewal of customer contracts are deferred and amortized over the average renewal term. Additionally, for self-hosted offerings, consistent with the recognition of subscription revenue for self-hosted offerings, a portion of the commission cost is expensed upfront when the self-hosted offering is made available, and the remaining portion of the commission cost is expensed over the period of benefit. We determine the period of benefit by taking into consideration our customer contracts, our technology life cycle and other factors. The amortization of deferred commissions is included in sales and marketing expense in our consolidated statements of comprehensive income. There was no impairment loss in relation to the incremental selling costs capitalized for all periods presented. Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We use a fair value hierarchy that is based on three levels of inputs, of which the first two are considered observable and the last unobservable. The three levels of the fair value hierarchy are as follows: Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2—Other inputs that are directly or indirectly observable in the marketplace; and Level 3— Significant unobservable inputs that are supported by little or no market activity. Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with original or remaining maturities of three months or less at the date of purchase. Accounts Receivable, net We record trade accounts receivable at the net invoice value and such receivables are non-interest bearing. We consider receivables past due based on the contractual payment terms. We reserve for specific amounts if collectability is no longer reasonably assured based on assessment of various factors including historical loss rates and expectations of forward-looking loss estimates. Individual accounts receivable are written off when we become aware of a specific customer’s inability to meet its financial obligation, and all collection efforts are exhausted. Investments Investments consist of commercial paper, corporate notes and bonds, certificates of deposit, U.S. government and agency securities and mortgage-backed and asset-backed securities. We classify investments in debt securities as available-for-sale at the time of purchase. All investments are recorded at estimated fair value and investments with original maturities of less than one year at time of purchase is classified as short-term. Unrealized gains and losses are included in accumulated other comprehensive income (loss), net of tax, a component of stockholders’ equity, except for credit-related impairment losses for available-for-sale debt securities. For all our available-for-sale debt securities with unrealized loss positions we have determined it is more likely than not we will hold the securities until maturity or a recovery of the cost basis. Available-for-sale securities in an unrealized loss position are written down to its fair value with the corresponding charge recorded in other expense, net on our consolidated statement of comprehensive income, if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, or we have the intention to sell the security. Credit-related impairment losses, not to exceed the amount that fair value is less than the amortized cost basis, are recognized through an allowance for credit losses with changes in the allowance for credit losses recorded in other expense, net in the consolidated statements of comprehensive income. For purposes of identifying and measuring impairment, the policy election was made to exclude the applicable accrued interest from both the fair value and amortized cost basis. Applicable accrued interest, net of the allowance for credit losses (if any) of $51 million and $28 million, is recorded in prepaid expenses and other current assets on the consolidated balance sheets as of December 31, 2023 and 2022, respectively. Realized gains and losses from the sales of available-for-sale debt securities are determined based on the specific identification method and are reported in other expense, net in the consolidated statements of comprehensive income. Strategic Investments Strategic investments consist of debt and non-marketable equity investments in privately held companies in which we do not have a controlling interest. We have elected to apply the measurement alternative for equity investments that do not have readily determinable fair values, measuring them at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. An impairment loss is recorded when an event or circumstance indicates a decline in value has occurred. We include these strategic investments in other assets on our consolidated balance sheets. Derivative Financial Instruments We use derivative financial instruments, mainly foreign currency forward contracts with maturities of 12 months or less, to manage foreign currency risks. These derivative contracts are not designated as hedging instruments and changes in the fair value are recorded in other expense, net on the consolidated statements of comprehensive income. Outstanding foreign currency forward contracts are recorded at gross fair value as prepaid expenses and other current assets as well as accrued expenses and other current liabilities on the consolidated balance sheets. Realized gains (losses) from settlement of the derivative assets and liabilities are classified as investing activities in the consolidated statements of cash flows. Property and Equipment, net Property and equipment are stated at cost net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as follows: Computer equipment and software 3-5 years Furniture and fixtures 3-7 years Leasehold and other improvements shorter of the lease term or estimated useful life Capitalized Software Development Costs Software development costs for software to be sold, leased or otherwise marketed are expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the product is available for general release to customers and amortized over the estimated life of the product. Costs and time incurred between the establishment of technological feasibility and product release have not been material, and all software development costs have been charged to research and development expense in our consolidated statements of comprehensive income. Leases We determine if an arrangement is or contains a lease at inception. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments consist primarily of the fixed payments under the arrangement, less any lease incentives. We generally use an incremental borrowing rate estimated based on the information available at the lease commencement date to determine the present value of lease payments, unless the implicit rate is readily determinable. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component for office leases. Lease and non-lease components for all other leases are generally accounted for separately. Additionally, we do not record leases on the balance sheet that, at the lease commencement date, have a lease term of 12 months or less. Operating leases are included in operating lease right-of-use assets, current portion of operating lease liabilities, and operating lease liabilities, less current portion in our consolidated balance sheets. We did not have any financing leases in any of the periods presented. Business Combinations We allocate the acquisition purchase price to the tangible and intangible assets acquired and liabilities assumed, based on their estimated fair values. The excess of the purchase price over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. Allocation of the purchase price requires significant estimates in determining the fair value of acquired assets and assumed liabilities, especially with respect to intangible assets. Critical estimates include, but are not limited to, future expected cash flows, discount rates, revenue growth rates, the time and expense to recreate the assets and profit margin a market participant would receive. These estimates are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which may not be later than one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. Goodwill and Intangible Assets Goodwill is evaluated for impairment at least annually or more frequently if circumstances indicate that goodwill may not be recoverable. A qualitative assessment is performed to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount. If the reporting unit does not pass the qualitative assessment, the carrying amount of the reporting unit, including goodwill, is compared to fair value and goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. Any excess of the carrying value of the goodwill above its fair value is recognized as an impairment loss. Intangible assets consist of developed technologies and other intangible assets, including patents and contractual agreements. Intangible assets are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from three Impairment of Long-Lived Assets We evaluate long-lived assets, including purchased intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Recoverability is measured by comparing the carrying amount to the future undiscounted cash flows we expect the asset to generate. Any excess of the carrying value of the asset above its fair value is recognized as an impairment loss. Advertising Costs Advertising costs, excluding costs related to our annual Knowledge user conference and other user forums, are expensed as incurred and are included in sales and marketing expense. These costs for the years ended December 31, 2023, 2022 and 2021 were $221 million, $201 million and $198 million, respectively. Stock-based Compensation We recognize compensation expense related to stock options and restricted stock units (“RSUs”) with only service conditions on a straight-line basis over the requisite service period. For stock options and RSUs with service, performance and market conditions (performance-based RSUs (“PRSUs”)), expenses are recognized on a graded vesting basis over the requisite service period and for awards with performance conditions, when it is probable that the performance condition will be achieved. The probability of achievement is assessed periodically to determine whether the performance metric continues to be probable. When there is a change in the probability of achievement, any cumulative effect of the change is recognized in the period of the change and the remaining unrecognized compensation will be amortized prospectively over the respective vesting period. We recognize compensation expense related to shares issued pursuant to the employee stock purchase plan (“ESPP”) on a straight-line basis over the six-month offering period. We recognize compensation expense net of estimated forfeiture activity. Amounts withheld related to the minimum statutory tax withholding requirements paid by us on behalf of our employees are recorded as a liability and a reduction to additional paid-in capital when paid and are included as a reduction of cash flows from financing activities. We estimate the fair value of stock options with only service conditions and shares issued pursuant to the ESPP using the Black-Scholes options pricing model and the fair value of RSU awards (including PRSUs) using the fair value of our common stock on the date of grant. For stock options and PRSUs with service, performance and market conditions, we estimate the fair value of the options granted and the corresponding derived service periods using the Monte Carlo simulation, which requires the use of various assumptions, including the stock price volatility and risk-free interest rate as of the valuation date corresponding to the length of time remaining in the performance period. Concentration of Credit Risk and Significant Customers Financial instruments potentially exposing us to credit risk consist primarily of cash, cash equivalents, derivative contracts, investments and accounts receivable. We hold cash at financial institutions that management believes are high credit quality financial institutions and invest in investment-grade debt securities. Our derivative contracts expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the arrangement. We mitigate this credit risk by transacting with major financial institutions with high credit ratings and entering into master netting arrangements, which permit net settlement of transactions with the same counterparty. We are not required to pledge, and are not entitled to receive, cash collateral related to these derivative instruments. Credit risk arising from accounts receivable is mitigated to a certain extent due to our large number of customers and their dispersion across various industries and geographies. As of December 31, 2023 and 2022, there were no customers that represented more than 10% of our accounts receivable balance. There were no customers that individually exceeded 10% of our total revenues in any of the periods presented. For purposes of assessing concentration of credit risk and significant customers, a group of customers under common control or customers that are affiliates of each other are regarded as a single customer. The allowance for credit losses and write offs were not material for each of the periods ending December 31, 2023, 2022 and 2021. Income Taxes We use the asset and liability method of accounting for income taxes, in which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be reversed. We recognize the effect on deferred tax assets and liabilities of a change in tax rates within the provision for income taxes as income and expense in the period that includes the enactment date. A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. In determining the need for a valuation allowance, we consider future growth, forecasted earnings, forecasted taxable income, the mix of earnings in the jurisdictions in which we operate, historical earnings, taxable income in prior years, if carryback is permitted under the law, carryforward periods and prudent and feasible tax planning strategies. Our tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. We recognize the tax benefit of an uncertain tax position only if it is more likely than not the position is sustainable upon examination by the taxing authority, based on the technical merits. We measure the tax benefit recognized as the largest amount of benefit which is more likely than not to be realized upon settlement with the taxing authority. We recognize interest accrued and penalties related to unrecognized tax benefits in our tax provision. We calculate the current and deferred income tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed in subsequent years and record adjustments based on filed income tax returns when identified. The amount of income taxes paid is subject to examination by U.S. federal, state and foreign tax authorities. The estimate of the potential outcome of any uncertain tax issue is subject to management’s assessment of relevant risks, facts and circumstances existing at that time. To the extent the assessment of such tax position changes, we record the change in estimate in the period in which we make the determination. Prior Period Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation. These reclassifications did not result in a restatement of prior period consolidated financial statements. Recently Issued Accounting Pronouncement Pending Adoption In December 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes - Improvements to Income Tax Disclosures” requiring enhancements and further transparency to certain income tax disclosures, most notably the tax rate reconciliation and income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024 on a prospective basis and retrospective application is permitted. We are currently evaluating the impact of the adoption of this standard. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Debt Securities, Available-for-Sale [Abstract] | |
Investments | Investments Marketable Debt Securities The following is a summary of our available-for-sale debt securities recorded within short-term and long-term investments on the consolidated balance sheets (in millions): December 31, 2023 Amortized Gross Gross Estimated Available-for-sale debt securities: Commercial paper $ 349 $ — $ — $ 349 Corporate notes and bonds 3,579 10 (13) 3,576 Certificates of deposit 94 — — 94 U.S. government and agency securities 2,081 3 (6) 2,078 Mortgage-backed and asset-backed securities 102 — (16) 86 Total available-for-sale debt securities $ 6,205 $ 13 $ (35) $ 6,183 December 31, 2022 Amortized Gross Gross Estimated Available-for-sale debt securities: Commercial paper $ 558 $ — $ (2) $ 556 Corporate notes and bonds 3,414 — (52) 3,362 Certificates of deposit 162 — — 162 U.S. government and agency securities 768 — (2) 766 Mortgage-backed and asset-backed securities 98 — (17) 81 Total available-for-sale debt securities $ 5,000 $ — $ (73) $ 4,927 As of December 31, 2023, the contractual maturities of our available-for-sale debt securities, excluding those securities classified within cash and cash equivalents on the consolidated balance sheet and mortgage-backed and asset-backed securities that do not have a single maturity, did not exceed 37 months. The fair values of available-for-sale debt securities, by remaining contractual maturity, are as follows (in millions): December 31, 2023 Due within 1 year $ 2,980 Due in 1 year through 5 years 3,117 Instruments not due in single maturity 86 Total $ 6,183 As of December 31, 2023 and 2022, the fair value of available-for-sale debt securities in a continuous unrealized loss position totaled $3,731 million and $4,232 million, respectively. As of December 31, 2023, unrealized losses of $26 million from available-for-sale debt securities are from securities in a continuous unrealized loss position greater than 12 months. For all available-for-sale debt securities that were in unrealized loss positions, we have determined that it is more likely than not we will hold the securities until maturity or a recovery of the cost basis. Unrealized losses on available-for-sale debt securities were primarily due to changes in market interest rates, and credit-related impairment losses were not material as of December 31, 2023. Non-Marketable Equity Investments As of December 31, 2023 and 2022, the total amount of non-marketable equity investments in privately held companies included in other assets on our consolidated balance sheets was $268 million and $252 million, respectively. These balances include a $100 million investment in the common and preferred shares of Celonis SE, a privately held company that develops and sells process mining software. Our non-marketable equity investments are primarily accounted for using the measurement alternative, which measures the investments at cost minus impairment, if any, plus or minus changes resulting from qualifying observable price changes resulting from the issuance of similar or identical securities in an orderly transaction by the same issuer. Determining whether an observed transaction is similar to a security within our portfolio requires judgment based on the rights and preferences of the securities. Recording upward and downward adjustments to the carrying value of our non-marketable equity investments as a result of observable price changes requires quantitative assessments of the fair value of our non-marketable equity investments using various valuation methodologies and involves the use of estimates. The adjustments made during the years ended December 31, 2023, 2022 and 2021 were immaterial. We classify these fair value measurements as Level 3 within the fair value hierarchy. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of December 31, 2023 (in millions): Level 1 Level 2 Total Cash equivalents: Money market funds $ 1,215 $ — $ 1,215 Commercial paper — 79 79 Corporate notes and bonds — 2 2 Deposits 295 — 295 U.S. government and agency securities — 4 4 Marketable securities: Commercial paper — 349 349 Corporate notes and bonds — 3,576 3,576 Certificates of deposit — 94 94 U.S. government and agency securities — 2,078 2,078 Mortgage-backed and asset-backed securities — 86 86 Total $ 1,510 $ 6,268 $ 7,778 The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of December 31, 2022 (in millions): Level 1 Level 2 Total Cash equivalents: Money market funds $ 738 $ — $ 738 Commercial paper — 36 36 Corporate notes and bonds — 10 10 Certificates of deposit — 2 2 Deposits 124 — 124 U.S. government and agency securities — 8 8 Marketable securities: Commercial paper — 556 556 Corporate notes and bonds — 3,362 3,362 Certificates of deposit — 162 162 U.S. government and agency securities — 766 766 Mortgage-backed and asset-backed securities — 81 81 Total $ 862 $ 4,983 $ 5,845 We determine the fair value of our security holdings based on pricing from our service providers and market prices from industry-standard independent data providers. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs), pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) or using unobservable inputs that are supported by little or no market activity (Level 3 inputs). Our non-marketable equity investments are not included in the table above and are discussed in Note 3. See Note 8 for the fair value measurement of our derivative contracts and Note 11 for the fair value measurement of our long-term debt, which are also not included in the table above. Our marketable equity investments are classified within Level 1 and are immaterial as of December 31, 2023 and 2022. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations 2023 Business Combinations On July 17, 2023, we acquired all outstanding shares of G2K Group GmbH, an artificial intelligence powered platform, for $464 million in a cash transaction. The consideration is paid in two installments. The first installment was made at the close of the transaction in July 2023. The second installment will be paid in February 2024 and is recognized as accrued expenses and other current liabilities, which is a non-cash financing activity as of December 31, 2023. The acquisition is intended to enhance our Now Platform with the acquired smart Internet of Things technology, enabling businesses to intelligently action digital and in-store data with enterprise-grade workflows. The purchase price was preliminarily allocated based on the estimated fair value of the developed technology intangible asset of $75 million (six-year estimated useful life), net tangible liabilities of $1 million, deferred tax liabilities of $23 million and goodwill of $413 million, which is not deductible for income tax purposes. Goodwill is primarily attributed to the value expected from synergies resulting from the business combination. The fair values assigned to tangible and intangible assets acquired, liabilities assumed and income taxes payable and deferred taxes are based on management’s estimates and assumptions. The provisional measurements of fair value for certain assets and liabilities, which encompass primarily deferred taxes and income taxes payable, may be subject to change as additional information is received. The Company expects to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. 2022 Business Combinations During the year ended December 31, 2022, we completed certain acquisitions for total purchase consideration of $92 million primarily to enhance our products with the acquired technology and engineering workforce. The acquisitions were not material to our consolidated financial statements, either individually or in the aggregate. 2021 Business Combinations On June 15, 2021, we acquired Lightstep, Inc., a leading observability solution provider, for $512 million in a cash transaction. The purchase price was allocated based on the estimated fair value of developed technology intangible asset of $85 million (five-year estimated useful life), customer related and brand assets of $11 million, net tangible assets of $8 million, deferred tax liabilities of $6 million and goodwill of $413 million, which is not deductible for income tax purposes. On January 8, 2021, we acquired all outstanding stock of Element AI Inc., a leading enterprise artificial intelligence solution provider, for $228 million in an all-cash transaction. The purchase price was allocated based on the estimated fair value of developed technology intangible asset of $85 million (five-year estimated useful life), net tangible assets of $16 million and goodwill of $81 million , which is partially deductible for income tax purposes. At time of acquisition, we established an unrecognized tax benefit of $43 million on pre-acquisition net operating loss carryforwards and other tax attributes which was subsequently released resulting in establishment of deferred tax asset based on completion of valuation and filing certain tax returns in the third quarter of 2021. Goodwill is primarily attributed to the value expected from synergies resulting from the business combinations. The fair values assigned to tangible and intangible assets acquired, liabilities assumed and income taxes payable and deferred taxes are based on management’s estimates and assumptions. The Company finalized the fair value measurements within one year from the acquisition date. During the year ended December 31, 2021, we also completed certain acquisitions for total purchase consideration of $66 million primarily to enhance our products with the acquired technology and engineering workforce. These acquisitions were not material to our consolidated financial statements, either individually or in the aggregate. We have included the financial results of business combinations in the consolidated financial statements from the respective dates of acquisition, which were not material. Aggregate acquisition-related costs associated with business combinations are not material for each of the years ended December 31, 2023, 2022 and 2021, respectively, and are included in general and administrative expenses in our consolidated statements of comprehensive income as incurred. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amounts of goodwill were as follows (in millions): Carrying Amount Balance as of December 31, 2021 $ 777 Goodwill acquired 68 Foreign currency translation adjustments (21) Balance as of December 31, 2022 $ 824 Goodwill acquired 413 Foreign currency translation adjustments (6) Balance as of December 31, 2023 $ 1,231 Intangible assets consist of the following (in millions): December 31, 2023 December 31, 2022 Developed technology $ 516 $ 434 Patents 72 72 Other 11 15 Intangible assets, gross $ 599 $ 521 Less: accumulated amortization (375) (289) Intangible assets, net $ 224 $ 232 The weighted-average useful life of the acquired developed technology for each of the years ended December 31, 2023 and 2022 was approximately five years. Amortization expense for intangible assets was approximately $85 million, $81 million and $76 million for the years ended December 31, 2023, 2022 and 2021, respectively. The following table presents the estimated future amortization expense related to intangible assets held as of December 31, 2023 (in millions): Years Ending December 31, 2024 $ 84 2025 63 2026 33 2027 19 2028 15 Thereafter 10 Total future amortization expense $ 224 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consists of the following (in millions): December 31, 2023 2022 Computer equipment $ 2,136 $ 1,606 Computer software 96 82 Leasehold and other improvements 292 226 Furniture and fixtures 86 81 Construction in progress 33 53 Property and equipment, gross 2,643 2,048 Less: Accumulated depreciation (1,285) (995) Property and equipment, net $ 1,358 $ 1,053 Construction in progress consists of costs primarily related to leasehold and other improvements. Depreciation expense was $372 million, $261 million and $312 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Derivative Contracts
Derivative Contracts | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Contracts | Derivative Contracts As of December 31, 2023 and 2022, we had foreign currency forward contracts with total notional values of $1,727 million and $1,360 million, respectively, which are not designated as hedging instruments. Our foreign currency forward contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates. The gross fair value of these foreign currency forward contracts was immaterial as of December 31, 2023 and 2022. The gains (losses) recognized for these foreign currency forward contracts were immaterial for each of the years ended December 31, 2023, 2022 and 2021. |
Deferred Revenue and Performanc
Deferred Revenue and Performance Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Revenue and Performance Obligations | Deferred Revenue and Performance Obligations Revenues recognized during the year ended December 31, 2023 from amounts included in deferred revenue as of December 31, 2022 were $4.6 billion. Revenues recognized during the year ended December 31, 2022 from amounts included in deferred revenue as of December 31, 2021 were $3.7 billion. Remaining Performance Obligations Transaction price allocated to remaining performance obligations (“RPO”) represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancellable amounts that will be invoiced and recognized as revenues in future periods. RPO excludes contracts that are billed in arrears, such as certain time and materials contracts, as we apply the “right to invoice” practical expedient under relevant accounting guidance. As of December 31, 2023, the total non-cancellable RPO under our contracts with customers was $18.0 billion, and we expect to recognize revenues on approximately 48% of these RPO over the following 12 months. The majority of the non-current RPO will be recognized over the next 13 to 36 months. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in millions): December 31, 2023 2022 Accrued payroll $ 650 $ 490 Taxes payable 123 109 Other employee-related liabilities 167 150 Other 425 226 Total accrued expenses and other current liabilities $ 1,365 $ 975 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Notes Payable [Abstract] | |
Debt | Debt For the periods ended December 31, 2023 and 2022, the carrying value of our outstanding debt was $1,488 million and $1,486 million, respectively, net of unamortized debt discount and issuance costs of $12 million and $14 million, respectively. We consider the fair value of the 2030 Notes as of December 31, 2023 and December 31, 2022 to be a Level 2 measurement. The estimated fair value of the 2030 Notes based on the closing trading price per $100, was $1,236 million and $1,144 million as of December 31, 2023 and December 31, 2022, respectively. 2030 Notes In August 2020, we issued 1.40% fixed rate ten-year notes with an aggregate principal amount of $1.5 billion due on September 1, 2030 (the “2030 Notes”). The 2030 Notes were issued at 99.63% of principal and we incurred $13 million for debt issuance costs. The effective interest rate for the 2030 Notes was 1.53% and included interest payable, amortization of debt issuance cost and amortization of the debt discount. Interest is payable semi-annually in arrears on March 1 and September 1 of each year, beginning on March 1, 2021, and the entire outstanding principal amount is due at maturity on September 1, 2030. The 2030 Notes are unsecured obligations and the indentures governing the 2030 Notes contain customary events of default and covenants that, among others and subject to exceptions, restrict our ability to incur or guarantee debt secured by liens on specified assets or enter into sale and lease-back transactions with respect to specified properties. 2022 Notes, Note Hedge and Warrants In May and June 2017, we issued an aggregate of $782.5 million of 0% convertible senior notes (the “2022 Notes”), which were converted prior to or settled on June 1, 2022, in accordance with their terms. Convertible Date Initial Conversion Price per Share Initial Conversion Rate per $1,000 Par Value Initial Number of Shares (in millions) 2022 Notes February 1, 2022 $ 134.75 7.42 shares 6 To minimize the impact of potential economic dilution upon conversion of the 2022 Notes, we entered into convertible note hedge transactions (the “2022 Note Hedge”) with certain investment banks to purchase 6 million shares for $128 million with respect to our common stock concurrently with the issuance of the 2022 Notes. The 2022 Note Hedge offsets the dilution and cash payments in excess of the principal amount of the converted 2022 Notes and expired upon the maturity date of the 2022 Notes, which was on June 1, 2022. Separately, we entered into warrant transactions with certain investment banks, whereby we sold warrants to acquire 6 million shares of our common stock with aggregate proceeds of $54 million (the “2022 Warrants”). The 2022 Warrants were separate transactions and were not remeasured through earnings each reporting period. The 2022 Warrants were not part of the 2022 Notes or 2022 Note Hedge. During the quarter ended June 30, 2022, we settled the remaining portion of the 2022 Warrants by delivering an aggregate of 0.6 million shares of our common stock. Accordingly, the 2022 Warrants were no longer outstanding as of June 30, 2022. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table shows the components of accumulated other comprehensive loss, net of tax, in the stockholders’ equity section of our consolidated balance sheets (in millions): December 31, 2023 2022 Foreign currency translation adjustment $ 2 $ (25) Net unrealized loss on investments (39) (77) Accumulated other comprehensive loss $ (37) $ (102) |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock We are authorized to issue a total of 600 million shares of common stock as of December 31, 2023. Holders of our common stock are not entitled to receive dividends unless declared by our board of directors. As of December 31, 2023, we had 204.7 million shares of common stock, net of treasury stock, outstanding and had reserved shares of common stock for future issuance as follows (in thousands): December 31, 2023 Stock plans: Options outstanding 1,150 RSUs (1) 6,262 Shares of common stock available for future grants: Amended and Restated 2021 Equity Incentive Plan (2) 11,908 Amended and Restated 2012 Employee Stock Purchase Plan (2) 8,508 Total shares of common stock reserved for future issuance 27,828 (1) Represents the number of shares issuable upon settlement of outstanding restricted stock units (“RSUs”) and performance-based RSUs (“PRSUs”), as discussed in Note 14. (2) Refer to Note 14 for a description of these plans. During each of the years ended December 31, 2023 and 2022, we issued a total of 2.7 million shares from stock option exercises, vesting of RSUs, net of employee payroll taxes and purchases from the employee stock purchase plan (“ESPP”). Treasury Stock In May 2023, our board of directors authorized a program to repurchase up to $1.5 billion of our common stock (the “Share Repurchase Program”). Under this new program, we may repurchase our common stock from time to time through open market purchases, in privately negotiated transactions, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions. The Share Repurchase Program does not have a fixed expiration date, may be suspended or discontinued at any time, and does not obligate us to acquire any amount of common stock. The timing, manner, price, and amount of any repurchases will be determined by us at our discretion and will depend on a variety of factors, including business, economic and market conditions, prevailing stock prices, corporate and regulatory requirements, and other considerations. During the year ended December 31, 2023, the Company repurchased 0.9 million shares of its common stock for $538 million. All repurchases were made in open market transactions. Repurchases of common stock are recognized as treasury stock and held for future issuance. As of December 31, 2023, $962 million of the originally authorized amount remained available for future repurchases. Preferred Stock Our board of directors has the authority, without further action by stockholders, to issue up to 10 million shares of preferred stock in one or more series. Our board of directors may designate the rights, preferences, privileges and restrictions of the preferred stock, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preference and number of shares constituting any series or the designation of any series. The issuance of preferred stock could have the effect of restricting dividends on our common stock, diluting the voting power of our common stock, impairing the liquidation rights of our common stock or delaying or preventing a change in control. As of December 31, 2023 and 2022, no shares of preferred stock were outstanding. |
Equity Awards
Equity Awards | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Awards | Equity Awards We currently have three equity incentive plans: 2012 Equity Incentive Plan (the “2012 Plan”), amended and restated 2021 Equity Incentive Plan (the “2021 Plan”) and 2022 New-Hire Equity Incentive Plan (the “2022 Plan”). The 2012 Plan was terminated in connection with the initial approval of the 2021 Plan on June 7, 2021 but continues to govern the terms of outstanding equity awards that were granted prior to the termination of the 2012 Plan. As of June 7, 2021, we no longer grant equity awards pursuant to the 2012 Plan. The 2021 Plan, as amended and restated, was approved by the shareholders on June 1, 2023 to increase shares available for future grants by approximately 10 million shares. Upon effectiveness of the 2021 Plan, as amended and restated, the 2022 Plan was terminated, and no additional awards under the 2022 Plan have been made since the amendment and restatement of the 2021 Plan. Outstanding equity awards under the 2022 Plan continue to be subject to the terms and conditions of the 2022 Plan. The 2021 Plan and the 2012 Plan provide for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, RSUs, performance-based stock awards and other forms of equity compensation (collectively, “equity awards”). The 2022 Plan permits the grant of any of the foregoing awards with the exception of incentive stock options. In addition, the 2022 Plan, the 2021 Plan and the 2012 Plan provide for the grant of performance cash awards. Incentive stock options may be granted only to employees. All other equity awards may be granted to employees, including officers, as well as directors and consultants. Our Amended and Restated 2012 Employee Stock Purchase Plan (the “2012 ESPP”) authorizes the issuance of shares of common stock pursuant to purchase rights granted to our employees. The price at which common stock is purchased under the 2012 ESPP is equal to 85% of the fair market value of our common stock on the first or last day of the offering period, whichever is lower. Offering periods are six months long and begin on February 1 and August 1 of each year. The number of shares of common stock reserved for issuance will not be increased without shareholder approval. Stock Options Stock options are exercisable at a price equal to the market value of the underlying shares of common stock on the date of the grant as determined by the closing price of our common stock as reported on the New York Stock Exchange on the date of grant. Stock options granted under the 2012 Plan to new employees generally vest 25% one year from the date the requisite service period begins and continue to vest monthly for each month of continued employment over the remaining three years. Options granted generally are exercisable for a period of up to ten years contingent on each holder’s continuous status as a service provider. A summary of stock option activity for the year ended December 31, 2023 was as follows: Number of Weighted- Weighted- Aggregate (in thousands) (in years) (in millions) Outstanding as of December 31, 2022 1,237 $ 590.36 Exercised (32) $ 68.06 $ 15 Forfeited (55) $ 625.99 Outstanding as of December 31, 2023 1,150 $ 603.30 7.4 $ 119 Vested and expected to vest as of December 31, 2023 948 $ 588.32 7.4 $ 112 Vested and exercisable as of December 31, 2023 150 $ 203.79 5.1 $ 75 Aggregate intrinsic value represents the difference between the estimated fair value of our common stock and the exercise price of outstanding, in-the-money options. The total intrinsic value for stock options exercised for the years ended December 31, 2023, 2022 and 2021, was $15 million, $40 million and $140 million, respectively. The total fair value of shares vested was $7 million, $11 million and $10 million for the years ended December 31, 2023, 2022 and 2021, respectively. No stock options were granted during the year ended December 31, 2023. The weighted-average grant-date fair values of stock options granted was $273.63 and $248.85 per share for the years ended December 31, 2022 and 2021, respectively. During the year ended December 31, 2021, a one-time long-term performance-based option award was granted to the Chief Executive Officer (“2021 CEO Performance Award”) and to certain executives (collectively “2021 Performance Awards”) under the 2021 Plan at a total grant date fair value of $232 million. The 2021 Performance Awards will vest in eight equal tranches based on service and achievement of both performance and market conditions, subject to continued employment and specifically for the 2021 CEO Performance Award, as CEO or Executive Chairman of the Company, through each vesting date. The performance and market condition for a particular tranche may be achieved at different points in time and in any order but will become eligible to vest only when all service, performance and market conditions for the respective tranche are met but no earlier than two years. The performance and market condition must be achieved by September 30, 2026 (the “Performance Period”). The stock price metric will be achieved when both the 180-Day volume weighted-average price (“VWAP”) and the 30-day VWAP equal or exceed the respective tranche stock price metric on any day during the Performance Period. The performance metric is achieved when the trailing four quarter cumulative GAAP subscription revenues equal or exceed the respective tranche performance target. Shares acquired upon exercise of the options cannot be sold, transferred or disposed until after the end of the Performance Period and the 2021 Performance Awards will expire ten years from the respective date of grant. As of December 31, 2023, none of the tranches have vested. The fair value of the 2021 Performance Awards and the corresponding derived service periods were estimated using the Monte Carlo simulation. Stock-based compensation expense is recognized on a graded vesting basis over the requisite service period for each respective tranche, but not shorter than the two As of December 31, 2023, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options was approximately $28 million. The weighted-average remaining vesting period of unvested stock options as of December 31, 2023 was one year. RSUs A summary of RSU activity for the year ended December 31, 2023 was as follows: Number of Weighted-Average Grant-Date Fair Value Per Share (in thousands) Outstanding as of December 31, 2022 5,737 $ 505.79 Granted 4,134 $ 479.18 Vested (3,096) $ 469.20 Forfeited (513) $ 506.98 Outstanding as of December 31, 2023 6,262 $ 506.77 Expected to vest as of December 31, 2023 5,553 RSUs outstanding as of December 31, 2023 were comprised of 5.8 million RSUs with only service conditions and 0.5 million RSUs with both service conditions and performance conditions, including certain RSUs with additional market conditions. The total intrinsic value of the RSUs vested was $1.6 billion, $1.5 billion and $2.1 billion for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, the aggregate intrinsic value of RSUs outstanding was $4.4 billion and RSUs expected to vest was $3.9 billion. The weighted-average grant-date fair value of RSUs granted was $479.18, $541.24 and $577.26 per share for the years ended December 31, 2023, 2022 and 2021, respectively. For the years ended December 31, 2023, 2022, and 2021, PRSUs with service, performance and market vesting criteria are considered as eligible to vest when approved by the compensation committee of our board of directors in January of the year following the grant. The ultimate number of shares eligible to vest for PRSUs range from 0% to 200% of the target number of shares depending on achievement relative to the performance metrics and, for certain PRSUs, depend on our total shareholder return relative to that of the S&P 500 index over the applicable measurement period. The eligible shares subject to PRSUs granted during the year ended December 31, 2023 will vest in February of the following year and semi-annually for the remaining two years contingent on each holder’s continuous status as a service provider on the applicable vesting dates. The number of PRSUs granted included in the table above reflects the shares that could be eligible to vest at 100% of target for PRSUs and includes adjustments for over or under achievement for PRSUs granted in the prior year. We recognized $145 million, $121 million, and $124 million of stock-based compensation expense, net of actual and estimated forfeitures, associated with PRSUs on a graded vesting basis during the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested RSUs was $2.5 billion and the weighted-average remaining vesting period was approximately three years. Total stock-based compensation expense for the years ended December 31 2023, 2022 and 2021 was $1,604 million, $1,401 million and $1,131 million, respectively. For the year ended December 31, 2023, we recorded $296 million of tax benefits on total stock-based compensation expense, which are reflected in the benefit from income taxes in the consolidated statements of comprehensive income. Tax benefits on stock-based compensation for the years ended December 31, 2022 and 2021 were not material. Valuation Assumption s The following assumptions were used in the Black-Scholes options pricing model and the Monte Carlo simulation model, to estimate our stock-based compensation on the date of grant for ESPP, stock options and PRSUs, respectively, as applicable. Year Ended December 31, 2023 2022 2021 Risk-Free Interest Rate ESPP 2.96% - 5.39% 0.06% - 2.96% 0.06% - 0.11% Stock Options * 2.04% 1.20% - 1.45% PRSU 4.34% 1.76% 0.19% - 0.20% Expected Term (in years) ESPP 0.5 0.5 0.5 Stock Options * 10 7.5 - 10 Expected Volatility ESPP 33% - 59% 35% - 59% 35% - 60% Stock Options * 40% 38% - 41% PRSU 45% 42% 41% - 42% * There were no stock option grants in 2023. Expected volatility . The expected volatility is based on the historical volatility of our common stock for a period similar to our expected term. Expected term . We determine the expected term based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. We estimate the expected term for ESPP using the purchase period. Risk-free interest rate . The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the stock-based award. Expected dividend yield |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, adjusted for the effects of dilutive shares of common stock, which are comprised of outstanding stock options, RSUs, ESPP obligations, the 2022 Notes and the 2022 Warrants. Stock awards with performance or market conditions are included in dilutive shares to the extent all conditions are met. The dilutive potential shares of common stock are computed using the treasury stock method or the as-if converted method, as applicable. The effects of outstanding stock options, RSUs, ESPP obligations, 2022 Notes and 2022 Warrants are excluded from the computation of diluted net income per share in periods in which the effect would be antidilutive. The following table presents the calculation of basic and diluted net income per share attributable to common stockholders (in millions, except for number of shares reflected in thousands and per share data): Year Ended December 31, 2023 2022 2021 Numerator: Net income $ 1,731 $ 325 $ 230 Denominator: Weighted-average shares outstanding - basic 204,137 201,430 198,094 Weighted-average effect of potentially dilutive securities: Common stock options 120 117 293 RSUs 1,332 1,555 3,429 ESPP Obligations 2 — — 2022 Notes — — 535 2022 Notes settlements — 280 116 2022 Warrants — — 649 Settlement of 2022 Warrants — 153 51 Weighted-average shares outstanding - diluted 205,591 203,535 203,167 Net income per share - basic $ 8.48 $ 1.61 $ 1.16 Net income per share - diluted $ 8.42 $ 1.60 $ 1.13 Common stock options, RSUs, and ESPP obligations excluded from diluted net income per share because their effect would have been anti-dilutive 3,191 4,658 1,588 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (Benefit from) Provision for Income Taxes The components of income before income taxes by U.S. and foreign jurisdictions were as follows (in millions): Year Ended December 31, 2023 2022 2021 United States $ 523 $ 173 $ 152 Foreign 485 226 97 Total $ 1,008 $ 399 $ 249 The (benefit from) provision for income taxes consists of the following (in millions): Year Ended December 31, 2023 2022 2021 Current provision: Federal $ 2 $ — $ — State 31 13 1 Foreign 101 46 52 134 59 53 Deferred provision: Federal (750) (1) (3) State (135) (1) (3) Foreign 28 17 (28) (857) 15 (34) (Benefit from) provision for income taxes $ (723) $ 74 $ 19 The effective income tax rate differs from the federal statutory income tax rate applied to the income before income taxes due to the following (in millions): Year Ended December 31, 2023 2022 2021 Tax computed at U.S. federal statutory rate $ 212 $ 84 $ 53 State taxes, net of federal benefit 47 10 — U.S. tax on foreign earnings 42 96 — Tax rate differential for international subsidiaries 29 18 6 Stock-based compensation 25 7 (160) Executive compensation 32 22 23 Tax credits (93) (70) (76) Other 15 7 4 Valuation allowance (1,032) (100) 169 (Benefit from) provision for income taxes $ (723) $ 74 $ 19 Significant components of our deferred tax assets are shown below (in millions). A valuation allowance has been recognized to offset our deferred tax assets, as necessary, by the amount of any tax benefits that, based on evidence, are not expected to be realized. December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 257 $ 605 Credit carryforwards 476 388 Lease liability 184 178 Capitalized research and development 324 262 Depreciation and amortization 552 553 Other 167 159 Total deferred tax assets 1,960 2,145 Less: valuation allowance (196) (1,228) 1,764 917 Deferred tax liabilities: Right of use asset (165) (162) Other (131) (129) Net deferred tax assets $ 1,468 $ 626 The unremitted earnings of our foreign subsidiaries are not considered indefinitely reinvested, except in certain designated jurisdictions in which the resident entity is a service provider that is not expected to generate substantial amounts of cash in excess of what may be reinvested by the local entity. We have not provided for state income or withholding taxes on the undistributed earnings of foreign subsidiaries, which are considered indefinitely invested outside of the U.S. The amount of unrecognized deferred tax liability on these undistributed earnings is not material as of December 31, 2023. As of December 31, 2023, we had U.S. federal net operating loss and federal tax credit carryforwards of $470 million and $404 million, respectively. The federal tax credits will begin to expire in 2033 if not utilized. In addition, as of December 31, 2023, we had state net operating loss and state tax credit carryforwards of approximately $1.0 billion and $272 million, respectively. The state net operating loss will begin to expire in 2024 if not utilized; however, the tax-effected amount due to expire in 2024 is immaterial. State tax credits and a portion of the federal net operating loss carryforwards can be carried forward indefinitely. Utilization of our net operating loss and credit carryforwards may be subject to annual limitation due to the ownership change limitations provided by the Internal Revenue Code and similar state provisions. Such an annual limitation could result in the expiration of the net operating loss and tax credit carryforwards before utilization. As of December 31, 2023, we had Canada net operating loss and tax credit carryforwards of $170 million and $11 million, respectively. The Canada net operating loss and tax credits will begin to expire in 2039 and 2037, respectively, if not utilized. In addition, as of December 31, 2023, we had United Kingdom net operating loss carryforwards of $145 million. The United Kingdom net operating loss can be carried forward indefinitely. The income tax benefit was $723 million for the year ended December 31, 2023. The income tax benefit was primarily attributable to the release of the valuation allowance of certain U.S. federal and state deferred tax assets. We regularly assess the need for a valuation allowance against our deferred tax assets. In making that assessment, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets to determine, based on the weight of available evidence, whether it is more likely than not that some or all of the deferred tax assets will not be realized. As of June 30, 2023, we achieved cumulative U.S. income during the prior twelve quarters when considering pre-tax income adjusted for permanent differences and other comprehensive losses. Based on all available positive and negative evidence, having demonstrated sustained profitability which is objective and verifiable, and taking into account anticipated future earnings, we concluded it is more likely than not that our U.S. federal and state deferred tax assets will be realizable, with the exception of California. We continue to maintain a valuation allowance against our California deferred tax assets due to the uncertainty regarding realizability of these deferred tax assets as they have not met the “more likely than not” realization criteria, particularly as we expect research and development tax credit generation to exceed our ability to use the credits in future years. Of the $1.2 billion valuation allowance as of December 31, 2022, we released $1.05 billion of our valuation allowance during the year ended December 31, 2023. We maintained a valuation allowance of $196 million against our California deferred tax assets. We will continue to monitor the need for a valuation allowance against our deferred tax assets on a quarterly basis. The decrease in the 2023 valuation allowance of $1.03 billion was primarily attributable to the $1.05 billion release of certain U.S. federal and state valuation allowance offset by approximately a $20 million increase in the California valuation allowance. The $98 million decrease in the 2022 valuation allowance was primarily attributable to a decrease in deferred tax assets related to the utilization of net operating losses. The $197 million increase in the 2021 valuation allowance was primarily attributable to an increase in deferred tax assets related to net operating losses and research and development tax credits partially offset by a valuation allowance release related to Lightstep, Inc. acquired deferred tax liabilities. A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows (in millions): Year Ended December 31, 2023 2022 2021 Balance, beginning period $ 159 $ 124 $ 81 Tax positions taken in prior period: Gross increases — — 5 Gross decreases — (1) — Tax positions taken in current period: Gross increases 63 38 38 Settlements (1) (2) — Balance, end of period $ 221 $ 159 $ 124 As of December 31, 2023, we had gross unrecognized tax benefits of approximately $221 million, of which $51 million would impact the effective tax rate, if recognized. We recognize accrued interest and penalties related to unrecognized tax benefits as income tax expense. Accrued interest and penalties included in our liability related to unrecognized tax benefits were $6 million and $5 million as of December 31, 2023 and 2022, respectively. The amount of unrecognized tax benefits could be reduced upon expiration of the applicable statutes of limitations. The potential reduction in unrecognized tax benefits during the next 12 months is not expected to be material. Interest and penalties accrued on these uncertain tax positions are recognized as income tax expense and will be released upon the expiration of the statutes of limitations. These amounts are also not material for any periods presented. Further, $51 million and $31 million of unrecognized tax benefits have been recorded as liabilities as of December 31, 2023 and 2022, respectively. We are subject to taxation in the United States and foreign jurisdictions. As of December 31, 2023, our tax years 2004 to 2022 remain subject to examination in most jurisdictions. Due to differing interpretations of tax laws and regulations, tax authorities may dispute our tax filing positions. We periodically evaluate our exposures associated with our tax filing positions and believe that adequate amounts have been reserved for adjustments that may result from tax examinations. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases For some of our offices and data centers, we have entered into non-cancellable operating lease agreements with various expiration dates through 2035. Certain lease agreements include options to renew or terminate the lease, which are not reasonably certain to be exercised and therefore are not factored into our determination of lease payments. Total operating lease costs was $129 million, $112 million and $100 million, excluding short-term lease costs, variable lease costs and sublease income each of which were immaterial, for each of the years ended December 31, 2023, 2022 and 2021, respectively. Total cash paid for amounts included in the measurement of operating lease liabilities was $82 million and $75 million for the years ended December 31, 2023 and 2022, respectively. Operating lease liabilities arising from obtaining operating right-of-use assets was $130 million and $192 million for the years ended December 31, 2023 and 2022, respectively. As of December 31, 2023, the weighted-average remaining lease term is approximately nine years and the weighted-average discount rate is 3.8%. Maturities of operating lease liabilities as of December 31, 2023 are presented in the table below (in millions): Years Ending December 31, 2024 $ 109 2025 127 2026 105 2027 89 2028 85 Thereafter 422 Total operating lease payments 937 Less: imputed interest (141) Present value of operating lease liabilities $ 796 In addition to the amounts above, as of December 31, 2023, we have operating leases, primarily for offices, that have not yet commenced with undiscounted cash flows of $61 million. These operating leases are expected to commence between 2024 and 2025 with lease terms of three Other Commitments Other commitments consist of data center and IT operations and sales and marketing activities related to our daily business operations. Future minimum payments under our non-cancellable purchase commitments as of December 31, 2023 are presented in the table below (in millions): Purchase Obligations (1) Years Ending December 31, 2024 $ 365 2025 281 2026 266 2027 530 2028 65 Thereafter 93 Total $ 1,600 (1) Not included in the table above are certain purchase commitments related to our future annual Knowledge user conferences and other customer or sales conferences to be held in 2024 and future years. If we had canceled these contractual commitments as of December 31, 2023, we would have been obligated to pay cancellation penalties of approximately $51 million in aggregate. During 2022, we entered into a non-cancellable, $500 million agreement with Microsoft to purchase cloud services over five years, as we accelerate Azure adoption for mutual customers. The unutilized consumption is included within the table above. In addition to the amounts above, the repayment of our 2030 Notes with an aggregate principal amount of $1.5 billion is due on September 1, 2030. Refer to Note 11 for further information regarding our 2030 Notes. Legal Proceedings We are party to certain litigation and other legal proceedings. While legal proceedings are inherently unpredictable and subject to uncertainties, we do not believe the ultimate resolution of any such proceedings is likely to result in a material loss. We accrue for loss contingencies when it is both probable that we will incur the loss and when we can reasonably estimate the amount of the loss or range of loss. On July 5, 2022, InQuisient Inc. (“Plaintiff”) filed a complaint against ServiceNow, Inc. in the U.S. District Court for the District of Delaware, alleging the Now Platform’s use of relational databases infringes three of Plaintiff’s patents. Plaintiff is seeking injunctive relief and unspecified damages. ServiceNow filed an answer denying Plaintiff’s allegations and asserts Plaintiff’s patents are, among other things, invalid, not infringed and otherwise unenforceable. A trial date has been set for October 7, 2024. While ServiceNow continues to vigorously defend this matter, we cannot predict the outcome with any degree of certainty. We also cannot provide an estimate of the possible loss or range of loss. Any adverse determination related to intellectual property claims or other litigation could prevent us from offering our services and adversely affect our financial condition and results of operations. For additional information regarding intellectual property litigation, see “Risk Factors—Lawsuits by third parties that allege we infringe their intellectual property rights could harm our business and operating results” and “Risk Factors—Our intellectual property protections may not provide us with a competitive advantage, and defending our intellectual property may result in substantial expenses that harm our operating results.” Indemnification Provisions Our agreements include provisions indemnifying customers against intellectual property and other third-party claims. In addition, we have entered into indemnification agreements with our directors, executive officers and certain other officers that will require us, among other things, to indemnify them against certain liabilities that may arise as a result of their affiliation with us. We have not incurred any costs as a result of such indemnification obligations and have not recorded any liabilities related to such obligations in the consolidated financial statements. |
Information about Geographic Ar
Information about Geographic Areas and Products | 12 Months Ended |
Dec. 31, 2023 | |
Segments, Geographical Areas [Abstract] | |
Information About Geographic Areas and Products | Information about Geographic Areas and Products Revenues by geographic area, based on the location of our users, were as follows for the periods presented (in millions): Year Ended December 31, 2023 2022 2021 North America (1) $ 5,702 $ 4,723 $ 3,752 EMEA (2) 2,298 1,778 1,551 Asia Pacific and other 971 744 593 Total revenues $ 8,971 $ 7,245 $ 5,896 Property and equipment, net by geographic area were as follows (in millions): December 31, 2023 2022 Property and equipment, net: North America (3) $ 871 $ 664 EMEA (2) 312 221 Asia Pacific and other 175 168 Total property and equipment, net $ 1,358 $ 1,053 (1) Revenues attributed to the United States were 94% of North America revenues for each of the years ended December 31, 2023, 2022 and 2021. (2) Europe, the Middle East and Africa (“EMEA”) (3) Property and equipment, net attributed to the United States were 79% and 85% of property and equipment, net attributable to North America as of December 31, 2023 and 2022, respectively. Subscription revenues consist of the following (in millions): Year Ended December 31, 2023 2022 2021 Digital workflow products $ 7,679 $ 6,077 $ 4,882 ITOM products 1,001 814 691 Total subscription revenues $ 8,680 $ 6,891 $ 5,573 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 1,731 | $ 325 | $ 230 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 12 Months Ended |
Dec. 31, 2023 shares | Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Russell Elmer [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Russell Elmer, our General Counsel, adopted a trading plan on November 22, 2023. The plan, which expires November 22, 2024, provides for the sale of 100% of the (net) shares resulting from the vesting of 11,944 additional (gross) shares of our common stock during the plan period (net shares are net of tax withholding). | |
Name | Russell Elmer | |
Title | General Counsel | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 22, 2023 | |
Arrangement Duration | 366 days | |
Aggregate Available | 11,944 | 11,944 |
Frederic Luddy [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | Frederic Luddy, a member of our board of directors, adopted a trading plan on November 21, 2023. The plan, which expires June 7, 2024, provides for the sale of 100% of the (net) shares resulting from the vesting of 598 additional (gross) shares of our common stock during the plan period (net shares are net of tax withholding). | |
Name | Frederic Luddy | |
Title | member of our board of directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | November 21, 2023 | |
Arrangement Duration | 199 days | |
Aggregate Available | 598 | 598 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements have been prepared in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) and include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Such management estimates and assumptions include, but are not limited to, standalone selling price (“SSP”) for each distinct performance obligation included in customer contracts with multiple performance obligations, the period of benefit for deferred commissions, valuation of intangible assets, the useful life of property and equipment and identifiable intangible assets, stock-based compensation expense and income taxes. Actual results could differ from those estimates. four |
Segments | Segments Our chief operating decision maker, the Chief Executive Officer, allocates resources and assesses financial performance based upon discrete financial information at the consolidated level. There are no segment managers who are held accountable by the chief operating decision maker, or anyone else, for operations, operating results and planning for levels or components below the consolidated unit level. Accordingly, we have determined that we operate as a single operating and reportable segment. |
Foreign Currency Translation and Transactions | Foreign Currency Translation and Transactions The functional currencies for our foreign subsidiaries are primarily their respective local currencies. Assets and liabilities of the wholly-owned foreign subsidiaries are translated into U.S. Dollars at exchange rates in effect at each period end. Amounts classified in stockholders’ equity are translated at historical exchange rates. Revenues and expenses are translated at the average exchange rates during the period. The resulting translation adjustments are recorded in accumulated other comprehensive income (loss) as a component of stockholders’ equity. Foreign currency transaction gains and losses are included in other expense, net within the consolidated statements of comprehensive income, and have not been material for all periods presented. |
Revenue Recognition and Deferred Commissions | Revenue Recognition Revenues are recognized when control of services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. Subscription revenues Subscription revenues are primarily comprised of subscription fees that give customers access to the ordered subscription service, related support and updates, if any, to the subscribed service during the subscription term. We recognize subscription revenues ratably over the contract term beginning on the commencement date of each contract, which is the date we make our services available to our customers. Our contracts with customers typically include a fixed amount of consideration and are generally non-cancellable and without any refund-type provisions. We typically invoice our customers annually in advance for our subscription services upon execution of the initial contract or subsequent renewal, and our invoices are typically due within 30 days from the invoice date. Subscription revenues also include revenues from self-hosted offerings in which customers deploy, or we grant customers the option to deploy without significant penalty, our subscription service internally or contract with a third party to host the software. For these contracts, we account for the software element separately from the related support and updates as they are distinct performance obligations. Refer to the discussion below related to contracts with multiple performance obligations for further details. The transaction price is allocated to separate performance obligations on a relative SSP basis. The transaction price allocated to the software element is recognized when transfer of control of the software to the customer is complete. The transaction price allocated to the related support and updates are recognized ratably over the contract term. Professional services and other revenues Our professional services arrangements are primarily on a time-and-materials basis, and we generally invoice our customers monthly in arrears for these professional services based on actual hours and expenses incurred. Some of our professional services arrangements are on a fixed fee. Professional services revenues are recognized as services are delivered. Other revenues mainly consist of fees from customer training delivered on-site or through publicly available classes. Typical payment terms require our customers to pay us within 30 days from the invoice date. Contracts with multiple performance obligations We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. We evaluate the terms and conditions included within our customer contracts to ensure appropriate revenue recognition, including whether products and services are considered distinct performance obligations that should be accounted for separately versus together. For contracts with multiple performance obligations, the transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine SSP by considering the historical selling price of these performance obligations in similar transactions as well as other factors, including, but not limited to, competitive pricing of similar products, other software vendor pricing, industry publications and current pricing practices. Contract balances Deferred revenue consists primarily of payments received related to unsatisfied performance obligations at the end of the period. Once our services are available to customers, we record amounts due in accounts receivable and in deferred revenue. To the extent we bill customers in advance of the billing period commencement date, the accounts receivable and corresponding deferred revenue amounts are netted to zero on our consolidated balance sheets, unless such amounts have been paid as of the balance sheet date. Customer deposits primarily relate to payments received from customers which could be refundable pursuant to the terms of the contract and are presented under accrued expenses and other current liabilities on our consolidated balance sheets. Deferred Commissions Deferred commissions are the incremental selling costs that are associated with acquiring customer contracts and consist primarily of sales commissions paid to our sales organization and referral fees paid to independent third parties. Deferred commissions also include the associated payroll taxes and fringe benefit costs associated with payments to our sales employees to the extent they are incremental. Commissions and referral fees earned upon the execution of initial and expansion contracts are primarily deferred and amortized over a period of benefit that we have determined to be five years. Commissions earned upon the renewal of customer contracts are deferred and amortized over the average renewal term. Additionally, for self-hosted offerings, consistent with the recognition of subscription revenue for self-hosted offerings, a portion of the commission cost is expensed upfront when the self-hosted offering is made available, and the remaining portion of the commission cost is expensed over the period of benefit. We determine the period of benefit by taking into consideration our customer contracts, our technology life cycle and other factors. The amortization of deferred commissions is included in sales and marketing expense in our consolidated statements of comprehensive income. There was no impairment loss in relation to the incremental selling costs capitalized for all periods presented. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We use a fair value hierarchy that is based on three levels of inputs, of which the first two are considered observable and the last unobservable. The three levels of the fair value hierarchy are as follows: Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2—Other inputs that are directly or indirectly observable in the marketplace; and Level 3— Significant unobservable inputs that are supported by little or no market activity. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of highly liquid investments with original or remaining maturities of three months or less at the date of purchase. |
Accounts Receivable, net | Accounts Receivable, net We record trade accounts receivable at the net invoice value and such receivables are non-interest bearing. We consider receivables past due based on the contractual payment terms. We reserve for specific amounts if collectability is no longer reasonably assured based on assessment of various factors including historical loss rates and expectations of forward-looking loss estimates. Individual accounts receivable are written off when we become aware of a specific customer’s inability to meet its financial obligation, and all collection efforts are exhausted. |
Investments | Investments Investments consist of commercial paper, corporate notes and bonds, certificates of deposit, U.S. government and agency securities and mortgage-backed and asset-backed securities. We classify investments in debt securities as available-for-sale at the time of purchase. All investments are recorded at estimated fair value and investments with original maturities of less than one year at time of purchase is classified as short-term. Unrealized gains and losses are included in accumulated other comprehensive income (loss), net of tax, a component of stockholders’ equity, except for credit-related impairment losses for available-for-sale debt securities. For all our available-for-sale debt securities with unrealized loss positions we have determined it is more likely than not we will hold the securities until maturity or a recovery of the cost basis. Available-for-sale securities in an unrealized loss position are written down to its fair value with the corresponding charge recorded in other expense, net on our consolidated statement of comprehensive income, if it is more likely than not that we will be required to sell the security before recovery of its amortized cost basis, or we have the intention to sell the security. Credit-related impairment losses, not to exceed the amount that fair value is less than the amortized cost basis, are recognized through an allowance for credit losses with changes in the allowance for credit losses recorded in other expense, net in the consolidated statements of comprehensive income. For purposes of identifying and measuring impairment, the policy election was made to exclude the applicable accrued interest from both the fair value and amortized cost basis. Applicable accrued interest, net of the allowance for credit losses (if any) of $51 million and $28 million, is recorded in prepaid expenses and other current assets on the consolidated balance sheets as of December 31, 2023 and 2022, respectively. Realized gains and losses from the sales of available-for-sale debt securities are determined based on the specific identification method and are reported in other expense, net in the consolidated statements of comprehensive income. |
Strategic Investments | Strategic Investments Strategic investments consist of debt and non-marketable equity investments in privately held companies in which we do not have a controlling interest. We have elected to apply the measurement alternative for equity investments that do not have readily determinable fair values, measuring them at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. An impairment loss is recorded when an event or circumstance indicates a decline in value has occurred. We include these strategic investments in other assets on our consolidated balance sheets. |
Derivatives Financial Instruments | Derivative Financial Instruments |
Property and Equipment, net | Property and Equipment, net Property and equipment are stated at cost net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as follows: Computer equipment and software 3-5 years Furniture and fixtures 3-7 years Leasehold and other improvements shorter of the lease term or estimated useful life |
Capitalized Software Development Costs | Capitalized Software Development Costs Software development costs for software to be sold, leased or otherwise marketed are expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the product is available for general release to customers and amortized over the estimated life of the product. Costs and time incurred between the establishment of technological feasibility and product release have not been material, and all software development costs have been charged to research and development expense in our consolidated statements of comprehensive income. |
Leases | Leases We determine if an arrangement is or contains a lease at inception. Operating lease right-of-use assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. Lease payments consist primarily of the fixed payments under the arrangement, less any lease incentives. We generally use an incremental borrowing rate estimated based on the information available at the lease commencement date to determine the present value of lease payments, unless the implicit rate is readily determinable. Lease expense for lease payments is recognized on a straight-line basis over the lease term. We account for lease and non-lease components as a single lease component for office leases. Lease and non-lease components for all other leases are generally accounted for separately. Additionally, we do not record leases on the balance sheet that, at the lease commencement date, have a lease term of 12 months or less. Operating leases are included in operating lease right-of-use assets, current portion of operating lease liabilities, and operating lease liabilities, less current portion in our consolidated balance sheets. We did not have any financing leases in any of the periods presented. |
Business Combinations | Business Combinations We allocate the acquisition purchase price to the tangible and intangible assets acquired and liabilities assumed, based on their estimated fair values. The excess of the purchase price over the fair value of these assets acquired and liabilities assumed is recorded as goodwill. Allocation of the purchase price requires significant estimates in determining the fair value of acquired assets and assumed liabilities, especially with respect to intangible assets. Critical estimates include, but are not limited to, future expected cash flows, discount rates, revenue growth rates, the time and expense to recreate the assets and profit margin a market participant would receive. These estimates are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which may not be later than one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. |
Goodwill, Intangible Assets and Impairment of Long Lived Assets | Goodwill and Intangible Assets Goodwill is evaluated for impairment at least annually or more frequently if circumstances indicate that goodwill may not be recoverable. A qualitative assessment is performed to determine whether it is more likely than not that the fair value of its reporting unit is less than its carrying amount. If the reporting unit does not pass the qualitative assessment, the carrying amount of the reporting unit, including goodwill, is compared to fair value and goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. Any excess of the carrying value of the goodwill above its fair value is recognized as an impairment loss. Intangible assets consist of developed technologies and other intangible assets, including patents and contractual agreements. Intangible assets are amortized over the period of estimated benefit using the straight-line method and estimated useful lives ranging from three Impairment of Long-Lived Assets |
Advertising Costs | Advertising Costs |
Stock-based Compensation | Stock-based Compensation We recognize compensation expense related to stock options and restricted stock units (“RSUs”) with only service conditions on a straight-line basis over the requisite service period. For stock options and RSUs with service, performance and market conditions (performance-based RSUs (“PRSUs”)), expenses are recognized on a graded vesting basis over the requisite service period and for awards with performance conditions, when it is probable that the performance condition will be achieved. The probability of achievement is assessed periodically to determine whether the performance metric continues to be probable. When there is a change in the probability of achievement, any cumulative effect of the change is recognized in the period of the change and the remaining unrecognized compensation will be amortized prospectively over the respective vesting period. We recognize compensation expense related to shares issued pursuant to the employee stock purchase plan (“ESPP”) on a straight-line basis over the six-month offering period. We recognize compensation expense net of estimated forfeiture activity. Amounts withheld related to the minimum statutory tax withholding requirements paid by us on behalf of our employees are recorded as a liability and a reduction to additional paid-in capital when paid and are included as a reduction of cash flows from financing activities. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant Customers Financial instruments potentially exposing us to credit risk consist primarily of cash, cash equivalents, derivative contracts, investments and accounts receivable. We hold cash at financial institutions that management believes are high credit quality financial institutions and invest in investment-grade debt securities. Our derivative contracts expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the arrangement. We mitigate this credit risk by transacting with major financial institutions with high credit ratings and entering into master netting arrangements, which permit net settlement of transactions with the same counterparty. We are not required to pledge, and are not entitled to receive, cash collateral related to these derivative instruments. |
Income Taxes | Income Taxes We use the asset and liability method of accounting for income taxes, in which deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be reversed. We recognize the effect on deferred tax assets and liabilities of a change in tax rates within the provision for income taxes as income and expense in the period that includes the enactment date. A valuation allowance is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized. In determining the need for a valuation allowance, we consider future growth, forecasted earnings, forecasted taxable income, the mix of earnings in the jurisdictions in which we operate, historical earnings, taxable income in prior years, if carryback is permitted under the law, carryforward periods and prudent and feasible tax planning strategies. Our tax positions are subject to income tax audits by multiple tax jurisdictions throughout the world. We recognize the tax benefit of an uncertain tax position only if it is more likely than not the position is sustainable upon examination by the taxing authority, based on the technical merits. We measure the tax benefit recognized as the largest amount of benefit which is more likely than not to be realized upon settlement with the taxing authority. We recognize interest accrued and penalties related to unrecognized tax benefits in our tax provision. We calculate the current and deferred income tax provision based on estimates and assumptions that could differ from the actual results reflected in income tax returns filed in subsequent years and record adjustments based on filed income tax returns when identified. The amount of income taxes paid is subject to examination by U.S. federal, state and foreign tax authorities. The estimate of the potential outcome of any uncertain tax issue is subject to management’s assessment of relevant risks, facts and circumstances existing at that time. To the extent the assessment of such tax position changes, we record the change in estimate in the period in which we make the determination. |
Prior Period Reclassifications | Prior Period Reclassifications |
Recently Issued Accounting Pronouncement Pending Adoption | Recently Issued Accounting Pronouncement Pending Adoption In December 2023, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes - Improvements to Income Tax Disclosures” requiring enhancements and further transparency to certain income tax disclosures, most notably the tax rate reconciliation and income taxes paid. This ASU is effective for fiscal years beginning after December 15, 2024 on a prospective basis and retrospective application is permitted. We are currently evaluating the impact of the adoption of this standard. |
Net Income (Loss) Per Share | Basic net income per share attributable to common stockholders is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, adjusted for the effects of dilutive shares of common stock, which are comprised of outstanding stock options, RSUs, ESPP obligations, the 2022 Notes and the 2022 Warrants. Stock awards with performance or market conditions are included in dilutive shares to the extent all conditions are met. The dilutive potential shares of common stock are computed using the treasury stock method or the as-if converted method, as applicable. The effects of outstanding stock options, RSUs, ESPP obligations, 2022 Notes and 2022 Warrants are excluded from the computation of diluted net income per share in periods in which the effect would be antidilutive. |
Legal Proceedings and Indemnification Provisions | Legal Proceedings We are party to certain litigation and other legal proceedings. While legal proceedings are inherently unpredictable and subject to uncertainties, we do not believe the ultimate resolution of any such proceedings is likely to result in a material loss. We accrue for loss contingencies when it is both probable that we will incur the loss and when we can reasonably estimate the amount of the loss or range of loss. On July 5, 2022, InQuisient Inc. (“Plaintiff”) filed a complaint against ServiceNow, Inc. in the U.S. District Court for the District of Delaware, alleging the Now Platform’s use of relational databases infringes three of Plaintiff’s patents. Plaintiff is seeking injunctive relief and unspecified damages. ServiceNow filed an answer denying Plaintiff’s allegations and asserts Plaintiff’s patents are, among other things, invalid, not infringed and otherwise unenforceable. A trial date has been set for October 7, 2024. While ServiceNow continues to vigorously defend this matter, we cannot predict the outcome with any degree of certainty. We also cannot provide an estimate of the possible loss or range of loss. Any adverse determination related to intellectual property claims or other litigation could prevent us from offering our services and adversely affect our financial condition and results of operations. For additional information regarding intellectual property litigation, see “Risk Factors—Lawsuits by third parties that allege we infringe their intellectual property rights could harm our business and operating results” and “Risk Factors—Our intellectual property protections may not provide us with a competitive advantage, and defending our intellectual property may result in substantial expenses that harm our operating results.” Indemnification Provisions Our agreements include provisions indemnifying customers against intellectual property and other third-party claims. In addition, we have entered into indemnification agreements with our directors, executive officers and certain other officers that will require us, among other things, to indemnify them against certain liabilities that may arise as a result of their affiliation with us. We have not incurred any costs as a result of such indemnification obligations and have not recorded any liabilities related to such obligations in the consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Property and Equipment Useful Life | Property and equipment are stated at cost net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as follows: Computer equipment and software 3-5 years Furniture and fixtures 3-7 years Leasehold and other improvements shorter of the lease term or estimated useful life Property and equipment, net consists of the following (in millions): December 31, 2023 2022 Computer equipment $ 2,136 $ 1,606 Computer software 96 82 Leasehold and other improvements 292 226 Furniture and fixtures 86 81 Construction in progress 33 53 Property and equipment, gross 2,643 2,048 Less: Accumulated depreciation (1,285) (995) Property and equipment, net $ 1,358 $ 1,053 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Securities, Available-for-Sale [Abstract] | |
Summary of Investments | The following is a summary of our available-for-sale debt securities recorded within short-term and long-term investments on the consolidated balance sheets (in millions): December 31, 2023 Amortized Gross Gross Estimated Available-for-sale debt securities: Commercial paper $ 349 $ — $ — $ 349 Corporate notes and bonds 3,579 10 (13) 3,576 Certificates of deposit 94 — — 94 U.S. government and agency securities 2,081 3 (6) 2,078 Mortgage-backed and asset-backed securities 102 — (16) 86 Total available-for-sale debt securities $ 6,205 $ 13 $ (35) $ 6,183 December 31, 2022 Amortized Gross Gross Estimated Available-for-sale debt securities: Commercial paper $ 558 $ — $ (2) $ 556 Corporate notes and bonds 3,414 — (52) 3,362 Certificates of deposit 162 — — 162 U.S. government and agency securities 768 — (2) 766 Mortgage-backed and asset-backed securities 98 — (17) 81 Total available-for-sale debt securities $ 5,000 $ — $ (73) $ 4,927 |
Investments Classified by Contractual Maturity Date | The fair values of available-for-sale debt securities, by remaining contractual maturity, are as follows (in millions): December 31, 2023 Due within 1 year $ 2,980 Due in 1 year through 5 years 3,117 Instruments not due in single maturity 86 Total $ 6,183 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of December 31, 2023 (in millions): Level 1 Level 2 Total Cash equivalents: Money market funds $ 1,215 $ — $ 1,215 Commercial paper — 79 79 Corporate notes and bonds — 2 2 Deposits 295 — 295 U.S. government and agency securities — 4 4 Marketable securities: Commercial paper — 349 349 Corporate notes and bonds — 3,576 3,576 Certificates of deposit — 94 94 U.S. government and agency securities — 2,078 2,078 Mortgage-backed and asset-backed securities — 86 86 Total $ 1,510 $ 6,268 $ 7,778 The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis as of December 31, 2022 (in millions): Level 1 Level 2 Total Cash equivalents: Money market funds $ 738 $ — $ 738 Commercial paper — 36 36 Corporate notes and bonds — 10 10 Certificates of deposit — 2 2 Deposits 124 — 124 U.S. government and agency securities — 8 8 Marketable securities: Commercial paper — 556 556 Corporate notes and bonds — 3,362 3,362 Certificates of deposit — 162 162 U.S. government and agency securities — 766 766 Mortgage-backed and asset-backed securities — 81 81 Total $ 862 $ 4,983 $ 5,845 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | oodwill were as follows (in millions): Carrying Amount Balance as of December 31, 2021 $ 777 Goodwill acquired 68 Foreign currency translation adjustments (21) Balance as of December 31, 2022 $ 824 Goodwill acquired 413 Foreign currency translation adjustments (6) Balance as of December 31, 2023 $ 1,231 |
Schedule of Intangible Assets | Intangible assets consist of the following (in millions): December 31, 2023 December 31, 2022 Developed technology $ 516 $ 434 Patents 72 72 Other 11 15 Intangible assets, gross $ 599 $ 521 Less: accumulated amortization (375) (289) Intangible assets, net $ 224 $ 232 |
Expected Future Amortization Expense Related to Intangible Assets | The following table presents the estimated future amortization expense related to intangible assets held as of December 31, 2023 (in millions): Years Ending December 31, 2024 $ 84 2025 63 2026 33 2027 19 2028 15 Thereafter 10 Total future amortization expense $ 224 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment are stated at cost net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets as follows: Computer equipment and software 3-5 years Furniture and fixtures 3-7 years Leasehold and other improvements shorter of the lease term or estimated useful life Property and equipment, net consists of the following (in millions): December 31, 2023 2022 Computer equipment $ 2,136 $ 1,606 Computer software 96 82 Leasehold and other improvements 292 226 Furniture and fixtures 86 81 Construction in progress 33 53 Property and equipment, gross 2,643 2,048 Less: Accumulated depreciation (1,285) (995) Property and equipment, net $ 1,358 $ 1,053 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accrued Liabilities, Current [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in millions): December 31, 2023 2022 Accrued payroll $ 650 $ 490 Taxes payable 123 109 Other employee-related liabilities 167 150 Other 425 226 Total accrued expenses and other current liabilities $ 1,365 $ 975 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Notes Payable [Abstract] | |
Convertible Debt | Convertible Date Initial Conversion Price per Share Initial Conversion Rate per $1,000 Par Value Initial Number of Shares (in millions) 2022 Notes February 1, 2022 $ 134.75 7.42 shares 6 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table shows the components of accumulated other comprehensive loss, net of tax, in the stockholders’ equity section of our consolidated balance sheets (in millions): December 31, 2023 2022 Foreign currency translation adjustment $ 2 $ (25) Net unrealized loss on investments (39) (77) Accumulated other comprehensive loss $ (37) $ (102) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Common Stock Outstanding and Reserved Shares of Common Stock for Future Issuance | As of December 31, 2023, we had 204.7 million shares of common stock, net of treasury stock, outstanding and had reserved shares of common stock for future issuance as follows (in thousands): December 31, 2023 Stock plans: Options outstanding 1,150 RSUs (1) 6,262 Shares of common stock available for future grants: Amended and Restated 2021 Equity Incentive Plan (2) 11,908 Amended and Restated 2012 Employee Stock Purchase Plan (2) 8,508 Total shares of common stock reserved for future issuance 27,828 (1) Represents the number of shares issuable upon settlement of outstanding restricted stock units (“RSUs”) and performance-based RSUs (“PRSUs”), as discussed in Note 14. (2) Refer to Note 14 for a description of these plans. |
Equity Awards (Tables)
Equity Awards (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Information About Outstanding And Vested Stock Options | A summary of stock option activity for the year ended December 31, 2023 was as follows: Number of Weighted- Weighted- Aggregate (in thousands) (in years) (in millions) Outstanding as of December 31, 2022 1,237 $ 590.36 Exercised (32) $ 68.06 $ 15 Forfeited (55) $ 625.99 Outstanding as of December 31, 2023 1,150 $ 603.30 7.4 $ 119 Vested and expected to vest as of December 31, 2023 948 $ 588.32 7.4 $ 112 Vested and exercisable as of December 31, 2023 150 $ 203.79 5.1 $ 75 |
Restricted Stock Unit Table | A summary of RSU activity for the year ended December 31, 2023 was as follows: Number of Weighted-Average Grant-Date Fair Value Per Share (in thousands) Outstanding as of December 31, 2022 5,737 $ 505.79 Granted 4,134 $ 479.18 Vested (3,096) $ 469.20 Forfeited (513) $ 506.98 Outstanding as of December 31, 2023 6,262 $ 506.77 Expected to vest as of December 31, 2023 5,553 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The following assumptions were used in the Black-Scholes options pricing model and the Monte Carlo simulation model, to estimate our stock-based compensation on the date of grant for ESPP, stock options and PRSUs, respectively, as applicable. Year Ended December 31, 2023 2022 2021 Risk-Free Interest Rate ESPP 2.96% - 5.39% 0.06% - 2.96% 0.06% - 0.11% Stock Options * 2.04% 1.20% - 1.45% PRSU 4.34% 1.76% 0.19% - 0.20% Expected Term (in years) ESPP 0.5 0.5 0.5 Stock Options * 10 7.5 - 10 Expected Volatility ESPP 33% - 59% 35% - 59% 35% - 60% Stock Options * 40% 38% - 41% PRSU 45% 42% 41% - 42% * There were no stock option grants in 2023. |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Income Per Share | The following table presents the calculation of basic and diluted net income per share attributable to common stockholders (in millions, except for number of shares reflected in thousands and per share data): Year Ended December 31, 2023 2022 2021 Numerator: Net income $ 1,731 $ 325 $ 230 Denominator: Weighted-average shares outstanding - basic 204,137 201,430 198,094 Weighted-average effect of potentially dilutive securities: Common stock options 120 117 293 RSUs 1,332 1,555 3,429 ESPP Obligations 2 — — 2022 Notes — — 535 2022 Notes settlements — 280 116 2022 Warrants — — 649 Settlement of 2022 Warrants — 153 51 Weighted-average shares outstanding - diluted 205,591 203,535 203,167 Net income per share - basic $ 8.48 $ 1.61 $ 1.16 Net income per share - diluted $ 8.42 $ 1.60 $ 1.13 Common stock options, RSUs, and ESPP obligations excluded from diluted net income per share because their effect would have been anti-dilutive 3,191 4,658 1,588 |
Summary of Potentially Dilutive Securities | The following table presents the calculation of basic and diluted net income per share attributable to common stockholders (in millions, except for number of shares reflected in thousands and per share data): Year Ended December 31, 2023 2022 2021 Numerator: Net income $ 1,731 $ 325 $ 230 Denominator: Weighted-average shares outstanding - basic 204,137 201,430 198,094 Weighted-average effect of potentially dilutive securities: Common stock options 120 117 293 RSUs 1,332 1,555 3,429 ESPP Obligations 2 — — 2022 Notes — — 535 2022 Notes settlements — 280 116 2022 Warrants — — 649 Settlement of 2022 Warrants — 153 51 Weighted-average shares outstanding - diluted 205,591 203,535 203,167 Net income per share - basic $ 8.48 $ 1.61 $ 1.16 Net income per share - diluted $ 8.42 $ 1.60 $ 1.13 Common stock options, RSUs, and ESPP obligations excluded from diluted net income per share because their effect would have been anti-dilutive 3,191 4,658 1,588 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Loss From Continuing Operations Before Income Taxes | The components of income before income taxes by U.S. and foreign jurisdictions were as follows (in millions): Year Ended December 31, 2023 2022 2021 United States $ 523 $ 173 $ 152 Foreign 485 226 97 Total $ 1,008 $ 399 $ 249 |
Components of Provision for Income Taxes | The (benefit from) provision for income taxes consists of the following (in millions): Year Ended December 31, 2023 2022 2021 Current provision: Federal $ 2 $ — $ — State 31 13 1 Foreign 101 46 52 134 59 53 Deferred provision: Federal (750) (1) (3) State (135) (1) (3) Foreign 28 17 (28) (857) 15 (34) (Benefit from) provision for income taxes $ (723) $ 74 $ 19 |
Reconciliation of Federal Income Tax Rate | The effective income tax rate differs from the federal statutory income tax rate applied to the income before income taxes due to the following (in millions): Year Ended December 31, 2023 2022 2021 Tax computed at U.S. federal statutory rate $ 212 $ 84 $ 53 State taxes, net of federal benefit 47 10 — U.S. tax on foreign earnings 42 96 — Tax rate differential for international subsidiaries 29 18 6 Stock-based compensation 25 7 (160) Executive compensation 32 22 23 Tax credits (93) (70) (76) Other 15 7 4 Valuation allowance (1,032) (100) 169 (Benefit from) provision for income taxes $ (723) $ 74 $ 19 |
Reconciliation of Deferred Tax Assets and Liabilities | Significant components of our deferred tax assets are shown below (in millions). A valuation allowance has been recognized to offset our deferred tax assets, as necessary, by the amount of any tax benefits that, based on evidence, are not expected to be realized. December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 257 $ 605 Credit carryforwards 476 388 Lease liability 184 178 Capitalized research and development 324 262 Depreciation and amortization 552 553 Other 167 159 Total deferred tax assets 1,960 2,145 Less: valuation allowance (196) (1,228) 1,764 917 Deferred tax liabilities: Right of use asset (165) (162) Other (131) (129) Net deferred tax assets $ 1,468 $ 626 |
Reconciliation of Beginning and Ending Balance of Total Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows (in millions): Year Ended December 31, 2023 2022 2021 Balance, beginning period $ 159 $ 124 $ 81 Tax positions taken in prior period: Gross increases — — 5 Gross decreases — (1) — Tax positions taken in current period: Gross increases 63 38 38 Settlements (1) (2) — Balance, end of period $ 221 $ 159 $ 124 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Operating Lease Liabilities | Maturities of operating lease liabilities as of December 31, 2023 are presented in the table below (in millions): Years Ending December 31, 2024 $ 109 2025 127 2026 105 2027 89 2028 85 Thereafter 422 Total operating lease payments 937 Less: imputed interest (141) Present value of operating lease liabilities $ 796 |
Schedule of Non-Cancelable Purchase Commitments | Future minimum payments under our non-cancellable purchase commitments as of December 31, 2023 are presented in the table below (in millions): Purchase Obligations (1) Years Ending December 31, 2024 $ 365 2025 281 2026 266 2027 530 2028 65 Thereafter 93 Total $ 1,600 (1) |
Information about Geographic _2
Information about Geographic Areas and Products (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segments, Geographical Areas [Abstract] | |
Revenues by Geographic Area, Based on Billing Location of Customer | Revenues by geographic area, based on the location of our users, were as follows for the periods presented (in millions): Year Ended December 31, 2023 2022 2021 North America (1) $ 5,702 $ 4,723 $ 3,752 EMEA (2) 2,298 1,778 1,551 Asia Pacific and other 971 744 593 Total revenues $ 8,971 $ 7,245 $ 5,896 |
Schedule of Long Lived Assets by Geographic Area | Property and equipment, net by geographic area were as follows (in millions): December 31, 2023 2022 Property and equipment, net: North America (3) $ 871 $ 664 EMEA (2) 312 221 Asia Pacific and other 175 168 Total property and equipment, net $ 1,358 $ 1,053 (1) Revenues attributed to the United States were 94% of North America revenues for each of the years ended December 31, 2023, 2022 and 2021. (2) Europe, the Middle East and Africa (“EMEA”) (3) |
Schedule of Subscription Revenue by Products | Subscription revenues consist of the following (in millions): Year Ended December 31, 2023 2022 2021 Digital workflow products $ 7,679 $ 6,077 $ 4,882 ITOM products 1,001 814 691 Total subscription revenues $ 8,680 $ 6,891 $ 5,573 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Use of Estimates (Details) - Data center equipment - Service life | Jan. 01, 2024 | Dec. 31, 2023 |
Change in Accounting Estimate [Line Items] | ||
Property and equipment, useful life (in years) | 4 years | |
Subsequent event | ||
Change in Accounting Estimate [Line Items] | ||
Property and equipment, useful life (in years) | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Segments (Details) | 12 Months Ended |
Dec. 31, 2023 segment | |
Accounting Policies [Abstract] | |
Number of operating and reportable segment | 1 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Capitalized contract cost, amortization period | 5 years | ||
Impairment loss | $ 0 | $ 0 | $ 0 |
Total subscription revenues | |||
Disaggregation of Revenue [Line Items] | |||
Contract payment terms | 30 days | ||
Professional services and other | |||
Disaggregation of Revenue [Line Items] | |||
Contract payment terms | 30 days |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Investments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accounting Policies [Abstract] | ||
Accrued interest, net of allowance for credit losses | $ 51 | $ 28 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Property and Equipment (Detail) | Dec. 31, 2023 |
Minimum | Computer equipment and software | |
Property and Equipment [Line Items] | |
Property and equipment, useful life (in years) | 3 years |
Minimum | Furniture and fixtures | |
Property and Equipment [Line Items] | |
Property and equipment, useful life (in years) | 3 years |
Maximum | Computer equipment and software | |
Property and Equipment [Line Items] | |
Property and equipment, useful life (in years) | 5 years |
Maximum | Furniture and fixtures | |
Property and Equipment [Line Items] | |
Property and equipment, useful life (in years) | 7 years |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) | Dec. 31, 2023 |
Minimum | |
Property and Equipment [Line Items] | |
Useful Life | 3 years |
Maximum | |
Property and Equipment [Line Items] | |
Useful Life | 12 years |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Advertising costs | $ 221 | $ 201 | $ 198 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Stock-based Compensation (Details) | 12 Months Ended |
Dec. 31, 2023 | |
2012 Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award offering period | 6 months |
Investments - Summary of Invest
Investments - Summary of Investments (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 6,205 | $ 5,000 |
Gross Unrealized Gains | 13 | 0 |
Gross Unrealized Losses | (35) | (73) |
Estimated Fair Value | 6,183 | 4,927 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 349 | 558 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (2) |
Estimated Fair Value | 349 | 556 |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,579 | 3,414 |
Gross Unrealized Gains | 10 | 0 |
Gross Unrealized Losses | (13) | (52) |
Estimated Fair Value | 3,576 | 3,362 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 94 | 162 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 94 | 162 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,081 | 768 |
Gross Unrealized Gains | 3 | 0 |
Gross Unrealized Losses | (6) | (2) |
Estimated Fair Value | 2,078 | 766 |
Mortgage-backed and asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 102 | 98 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (16) | (17) |
Estimated Fair Value | $ 86 | $ 81 |
Investments - Narrative (Detail
Investments - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | ||
Contractual maturities term (maximum) | 37 months | |
Unrealized loss | $ 3,731 | $ 4,232 |
Continuous loss position, 12 months or greater, fair value | 26 | |
Debt and equity investments in privately-held companies included in other assets | 268 | 252 |
Celonis SE | ||
Debt Securities, Available-for-sale [Line Items] | ||
Non-marketable equity investment | $ 100 | $ 100 |
Investments - Maturities of Ava
Investments - Maturities of Available-for-Sale Investments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Abstract] | ||
Due within 1 year | $ 2,980 | |
Due in 1 year through 5 years | 3,117 | |
Instruments not due in single maturity | 86 | |
Total | $ 6,183 | $ 4,927 |
Fair Value Measurements (Detail
Fair Value Measurements (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 7,778 | $ 5,845 |
Cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,215 | 738 |
Cash equivalents | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 79 | 36 |
Cash equivalents | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2 | 10 |
Cash equivalents | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2 | |
Cash equivalents | Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 295 | 124 |
Cash equivalents | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4 | 8 |
Marketable securities | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 349 | 556 |
Marketable securities | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 3,576 | 3,362 |
Marketable securities | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 94 | 162 |
Marketable securities | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,078 | 766 |
Marketable securities | Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 86 | 81 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,510 | 862 |
Level 1 | Cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,215 | 738 |
Level 1 | Cash equivalents | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 1 | Cash equivalents | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 1 | Cash equivalents | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Level 1 | Cash equivalents | Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 295 | 124 |
Level 1 | Cash equivalents | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 1 | Marketable securities | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 1 | Marketable securities | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 1 | Marketable securities | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 1 | Marketable securities | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 1 | Marketable securities | Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 6,268 | 4,983 |
Level 2 | Cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 2 | Cash equivalents | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 79 | 36 |
Level 2 | Cash equivalents | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2 | 10 |
Level 2 | Cash equivalents | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2 | |
Level 2 | Cash equivalents | Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 2 | Cash equivalents | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4 | 8 |
Level 2 | Marketable securities | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 349 | 556 |
Level 2 | Marketable securities | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 3,576 | 3,362 |
Level 2 | Marketable securities | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 94 | 162 |
Level 2 | Marketable securities | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 2,078 | 766 |
Level 2 | Marketable securities | Mortgage-backed and asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 86 | $ 81 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) $ in Millions | 12 Months Ended | ||||||
Jul. 17, 2023 USD ($) installment | Jun. 15, 2021 USD ($) | Jan. 08, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 1,231 | $ 824 | $ 777 | ||||
Total unrecognized tax benefit | $ 221 | $ 159 | 124 | $ 81 | |||
Developed technology | |||||||
Business Acquisition [Line Items] | |||||||
Weighted average useful life (in years) | 5 years | 5 years | |||||
G2K Group, GmbH | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses | $ 464 | ||||||
Business Combination, Consideration, Number Of Installments | installment | 2 | ||||||
Business combination, recognized identifiable assets acquired and liabilities assumed, noncurrent liabilities, other | $ (1) | ||||||
Net deferred tax liabilities | (23) | ||||||
Goodwill | 413 | ||||||
G2K Group, GmbH | Developed technology | |||||||
Business Acquisition [Line Items] | |||||||
Developed technology | $ 75 | ||||||
Weighted average useful life (in years) | 6 years | ||||||
Series of Individually Immaterial Business Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses | $ 92 | $ 66 | |||||
LightStep Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses | $ 512 | ||||||
Net deferred tax liabilities | (6) | ||||||
Goodwill | 413 | ||||||
Net tangible assets | 8 | ||||||
LightStep Inc. | Developed technology | |||||||
Business Acquisition [Line Items] | |||||||
Developed technology | $ 85 | ||||||
Weighted average useful life (in years) | 5 years | ||||||
LightStep Inc. | Customer related and brand assets | |||||||
Business Acquisition [Line Items] | |||||||
Developed technology | $ 11 | ||||||
Element AI Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 81 | ||||||
Net tangible assets | 16 | ||||||
Total unrecognized tax benefit | 43 | ||||||
Element AI Inc. | Developed technology | |||||||
Business Acquisition [Line Items] | |||||||
Payments to acquire businesses | 228 | ||||||
Developed technology | $ 85 | ||||||
Weighted average useful life (in years) | 5 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 824 | $ 777 |
Goodwill acquired | 413 | 68 |
Foreign currency translation adjustments | (6) | (21) |
Goodwill, ending balance | $ 1,231 | $ 824 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 599 | $ 521 |
Less: accumulated amortization | (375) | (289) |
Intangible assets, net | 224 | 232 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 516 | 434 |
Patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 72 | 72 |
Intangible assets, net | 224 | 232 |
Other | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 11 | $ 15 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 85 | $ 81 | $ 76 |
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life (in years) | 5 years | 5 years |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization of Intangible Assets (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 84 |
2025 | 63 |
2026 | 33 |
2027 | 19 |
2028 | 15 |
Thereafter | 10 |
Total future amortization expense | $ 224 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment, Net (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Property and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,643 | $ 2,048 |
Less: Accumulated depreciation | (1,285) | (995) |
Property and equipment, net | 1,358 | 1,053 |
Computer equipment | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 2,136 | 1,606 |
Computer software | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 96 | 82 |
Leasehold and other improvements | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 292 | 226 |
Furniture and fixtures | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | 86 | 81 |
Construction in progress | ||
Property and Equipment [Line Items] | ||
Property and equipment, gross | $ 33 | $ 53 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 372 | $ 261 | $ 312 |
Derivative Contracts (Details)
Derivative Contracts (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Not Designated as Hedging Instrument | Foreign exchange contract | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 1,727 | $ 1,360 |
Deferred Revenue and Performa_2
Deferred Revenue and Performance Obligations (Details) - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue recognized | $ (4.6) | $ 3.7 |
Remaining non-cancelable performance obligations | $ 18 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Performance obligations expected to be satisfied (percent) | 48% | |
Remaining performance obligation, expected timing of satisfaction, period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Minimum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, expected timing of satisfaction, period | 13 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | Maximum | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Remaining performance obligation, expected timing of satisfaction, period | 36 months |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accrued Liabilities, Current [Abstract] | ||
Accrued payroll | $ 650 | $ 490 |
Taxes payable | 123 | 109 |
Other employee-related liabilities | 167 | 150 |
Other | 425 | 226 |
Total accrued expenses and other current liabilities | $ 1,365 | $ 975 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Aug. 31, 2020 USD ($) | Jun. 30, 2022 shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 shares | Jun. 30, 2017 USD ($) | |
Debt Instrument [Line Items] | ||||||
Class of warrant or right outstanding | shares | 0 | |||||
2022 Note Hedge [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Payments for hedge, financing activities | $ 128,000,000 | |||||
Shares (in shares) | shares | 6,000,000 | |||||
Common Stock | ||||||
Debt Instrument [Line Items] | ||||||
Settlement of warrants (in shares) | shares | 600,000 | 603,000 | 536,000 | |||
2022 Warrants | ||||||
Debt Instrument [Line Items] | ||||||
Shares (in shares) | shares | 6,000,000 | |||||
Proceeds from issuance of warrants | $ 54,000,000 | |||||
2030 Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt, excluding current maturities | $ 1,488,000,000 | 1,486,000,000 | ||||
Unamortized debt discount and issuance costs, long-term | 12,000,000 | 14,000,000 | ||||
Contractual interest rate, notes (in percent) | 1.40% | |||||
Debt term | 10 years | |||||
Notes, par value | $ 1,500,000,000 | 1,500,000,000 | ||||
Percentage of principle issued | 0.9963 | |||||
Debt issuance costs | $ 13,000,000 | |||||
Effective interest rate of the liability component (in percent) | 1.53% | |||||
2030 Senior Notes | Level 2 | ||||||
Debt Instrument [Line Items] | ||||||
Fair value | $ 1,236,000,000 | $ 1,144,000,000 | ||||
2022 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Contractual interest rate, notes (in percent) | 0% | |||||
Notes, par value | $ 782,500,000 |
Debt - Schedule of Conversion (
Debt - Schedule of Conversion (Details) - 2022 Notes shares in Millions | 2 Months Ended |
Jun. 30, 2017 shares $ / shares | |
Debt Instrument [Line Items] | |
Initial Conversion Price per Share (in USD per share) | $ / shares | $ 134.75 |
Initial Conversion Rate per $1,000 Par Value (in USD per share) | 0.00742 |
Initial Number of Shares (in shares) | shares | 6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ 7,628 | $ 5,032 | $ 3,695 | $ 2,834 |
Foreign currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | 2 | (25) | ||
Net unrealized loss on investments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (39) | (77) | ||
Accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | $ (37) | $ (102) | $ 34 | $ 94 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | May 31, 2023 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||
Shares of common stock, authorized (in shares) | 600,000,000 | 600,000,000 | |
Shares of common stock, issued and sold (in shares) | 204,724,000 | 202,882,000 | |
Stock issued during period, shares, new issues (in shares) | 2,700,000 | 2,700,000 | |
Stock repurchase program, authorized amount | $ 1,500 | ||
Common stock, repurchased (in shares) | 900,000 | ||
Common stock, repurchased | $ 538 | ||
Remaining authorized repurchase amount | $ 962 | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 | |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Stockholders' Equity - Outstand
Stockholders' Equity - Outstanding and Reserved Shares of Common Stock for Future Issuance (Detail) - shares shares in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Class of Stock [Line Items] | ||
Options outstanding (in shares) | 1,150 | 1,237 |
Total reserved shares of common stock for future issuance (in shares) | 27,828 | |
2012 Equity Incentive Plan | ||
Class of Stock [Line Items] | ||
Total reserved shares of common stock for future issuance (in shares) | 11,908 | |
2012 Employee Stock Purchase Plan | ||
Class of Stock [Line Items] | ||
Total reserved shares of common stock for future issuance (in shares) | 8,508 | |
Employee Stock Option | ||
Class of Stock [Line Items] | ||
Options outstanding (in shares) | 1,150 | |
Restricted Stock Units (RSUs) | ||
Class of Stock [Line Items] | ||
RSUs (in shares) | 6,262 | 5,737 |
Equity Awards - Narrative (Deta
Equity Awards - Narrative (Detail) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 USD ($) shares | Dec. 31, 2023 USD ($) plan $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of equity incentive plans | plan | 3 | |||
Total intrinsic value of options exercised | $ 15,000,000 | $ 40,000,000 | $ 140,000,000 | |
Fair value of stock options vested | $ 7,000,000 | $ 11,000,000 | $ 10,000,000 | |
Number of shares granted (in shares) | shares | 0 | |||
Weighted-average grant date fair value of options granted (in USD per share) | $ / shares | $ 273.63 | $ 248.85 | ||
Total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options | $ 28,000,000 | $ 28,000,000 | ||
Allocated share-based compensation expense | $ 1,604,000,000 | $ 1,401,000,000 | $ 1,131,000,000 | |
Dividend yield (in percent) | 0% | |||
Share-Based Payment Arrangement, Expense, Tax Benefit | $ 296,000,000 | $ 0 | 0 | |
Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average remaining vesting period | 1 year | |||
Restricted stock units with service condition only | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares outstanding (in shares) | shares | 5,800,000 | 5,800,000 | ||
Restricted stock units with service and performance conditions | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares outstanding (in shares) | shares | 500,000 | 500,000 | ||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average remaining vesting period | 3 years | |||
Number of shares outstanding (in shares) | shares | 6,262,000 | 6,262,000 | 5,737,000 | |
Aggregate intrinsic value, vested | $ 1,600,000,000 | $ 1,500,000,000 | $ 2,100,000,000 | |
Aggregate intrinsic value, outstanding | $ 4,400,000,000 | 4,400,000,000 | ||
Aggregated intrinsic value, expected to vest | 3,900,000,000 | $ 3,900,000,000 | ||
Weighted-average grant date fair value, granted (in USD per share) | $ / shares | $ 479.18 | $ 541.24 | $ 577.26 | |
Unrecognized compensation expense expected to be recognized | $ 2,500,000,000 | $ 2,500,000,000 | ||
Performance shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance target (in percent) | 100% | |||
Vesting period (in years) | 2 years | |||
Allocated share-based compensation expense | $ 145,000,000 | $ 121,000,000 | $ 124,000,000 | |
2012 Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Common stock purchase price, percentage | 85% | |||
Award offering period | 6 months | |||
2012 Equity Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options granted to new employees vest, percentage per annum | 25% | |||
Requisite service period to vest employment continuation period | 3 years | |||
2021 Performance Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Service period (in years) | 2 years | |||
2021 Performance Awards | Employee Stock Option | Chief Executive Officer | Tranche one | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 12.50% | |||
2021 Performance Awards | Employee Stock Option | Chief Executive Officer | Tranche two | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 12.50% | |||
2021 Performance Awards | Employee Stock Option | Chief Executive Officer | Tranche three | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 12.50% | |||
2021 Performance Awards | Employee Stock Option | Chief Executive Officer | Tranche four | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 12.50% | |||
2021 Performance Awards | Employee Stock Option | Chief Executive Officer | Tranche five | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 12.50% | |||
2021 Performance Awards | Employee Stock Option | Chief Executive Officer | Tranche six | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 12.50% | |||
2021 Performance Awards | Employee Stock Option | Chief Executive Officer | Tranche seven | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 12.50% | |||
2021 Performance Awards | Employee Stock Option | Chief Executive Officer | Tranche eight | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting percentage | 12.50% | |||
2021 Performance Awards | Employee Stock | Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted, value, share-based payment arrangement, before forfeiture | $ 232,000,000 | |||
Number of vesting tranches | 8 | |||
2021 Performance Awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance target (in percent) | 0% | 0% | ||
2021 Performance Awards | Minimum | Employee Stock | Chief Executive Officer | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Description of service or performance condition required to be met for earning right to award under share-based payment arrangement. Includes, but is not limited to, combination of market, performance or service condition | 2 years | |||
2021 Performance Awards | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance target (in percent) | 200% | 200% |
Equity Awards - Summary of Stoc
Equity Awards - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | |||
Number of shares, outstanding, beginning balance (in shares) | 1,237 | ||
Number of shares, exercised (in shares) | (32) | ||
Number of shares, forfeited (in shares) | (55) | ||
Number of shares, outstanding, ending balance (in shares) | 1,150 | 1,237 | |
Number of shares, vested and expected to vest (in shares) | 948 | ||
Number of shares, vested and exercisable (in shares) | 150 | ||
Weighted- Average Exercise Price Per Share | |||
Weighted-average exercise price, outstanding, beginning balance (in USD per share) | $ 590.36 | ||
Weighted-average exercise price, exercised (in USD per share) | 68.06 | ||
Weighted-average exercise price, forfeited (in USD per share) | 625.99 | ||
Weighted-average exercise price, outstanding, ending balance (in USD per share) | 603.30 | $ 590.36 | |
Weighted-average exercise price, vested and expected to vest (in USD per share) | 588.32 | ||
Weighted-average exercise price, vested and exercisable (in USD per share) | $ 203.79 | ||
Weighted-average remaining contractual life (in years) | 7 years 4 months 24 days | ||
Weighted-average remaining contractual term, vested and expected to vest (in years) | 7 years 4 months 24 days | ||
Weighted-average remaining contractual term, vested and exercisable (in years) | 5 years 1 month 6 days | ||
Total intrinsic value of options exercised | $ 15 | $ 40 | $ 140 |
Aggregate intrinsic value, outstanding | 119 | ||
Aggregate intrinsic value, vested and expected to vest | 112 | ||
Aggregate intrinsic value, vested and exercisable | $ 75 |
Equity Awards - Restricted Stoc
Equity Awards - Restricted Stock Unit Table (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Shares | |||
Number of shares outstanding, beginning balance (in shares) | 5,737 | ||
Number of shares, granted (in shares) | 4,134 | ||
Number of shares, vested (in shares) | (3,096) | ||
Number of shares, forfeited (in shares) | (513) | ||
Number of shares outstanding, ending balance (in shares) | 6,262 | 5,737 | |
Number of shares, expected to vest (in shares) | 5,553 | ||
Weighted-Average Grant Date Fair Value | |||
Weighted-average grant date fair value, outstanding, beginning balance (in USD per share) | $ 505.79 | ||
Weighted-average grant date fair value, granted (in USD per share) | 479.18 | $ 541.24 | $ 577.26 |
Weighted-average grant date fair value, vested (in USD per share) | 469.20 | ||
Weighted-average grant date fair value, repurchased (in USD per share) | 506.98 | ||
Weighted-average grant date fair value, outstanding, ending balance (in USD per share) | $ 506.77 | $ 505.79 |
Equity Awards - Schedule of Fai
Equity Awards - Schedule of Fair Value Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate. minimum | 2.96% | 0.06% | 0.06% |
Risk-free interest rate, maximum | 5.39% | 2.96% | 0.11% |
Expected term (in years) | 6 months | 6 months | 6 months |
Expected volatility, minimum | 33% | 35% | 35% |
Expected volatility, maximum | 59% | 59% | 60% |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate. minimum | 2.04% | 1.20% | |
Risk-free interest rate, maximum | 1.45% | ||
Expected term (in years) | 10 years | ||
Expected volatility, minimum | 40% | 38% | |
Expected volatility, maximum | 41% | ||
Employee Stock Option | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 7 years 6 months | ||
Employee Stock Option | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (in years) | 10 years | ||
PRSU | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate. minimum | 4.34% | 1.76% | 0.19% |
Risk-free interest rate, maximum | 0.20% | ||
Expected volatility, minimum | 45% | 42% | 41% |
Expected volatility, maximum | 42% |
Net Income Per Share - Calculat
Net Income Per Share - Calculation of Basic and Diluted Net Income Per Share Attributable to Common Stockholders (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net income | $ 1,731 | $ 325 | $ 230 |
Denominator: | |||
Weighted-average shares outstanding - basic (in shares) | 204,137,000 | 201,430,000 | 198,094,000 |
Weighted-average shares outstanding - diluted (in shares) | 205,591,000 | 203,535,000 | 203,167,000 |
Net income per share - basic (in USD per share) | $ 8.48 | $ 1.61 | $ 1.16 |
Net income per share - diluted (in USD per share) | $ 8.42 | $ 1.60 | $ 1.13 |
Total potentially dilutive securities (in shares) | 3,191,000 | 4,658,000 | 1,588,000 |
Employee Stock Option | |||
Denominator: | |||
Potentially dilutive securities (in shares) | 120,000 | 117,000 | 293,000 |
Restricted Stock Units (RSUs) | |||
Denominator: | |||
Potentially dilutive securities (in shares) | 1,332,000 | 1,555,000 | 3,429,000 |
Employee Stock Purchase Plan | |||
Denominator: | |||
Potentially dilutive securities (in shares) | 2,000 | 0 | 0 |
2022 Notes | 2022 Notes | |||
Denominator: | |||
Notes (in shares) | 0 | 0 | 535,000 |
Notes settlements (in shares) | 0 | 280,000 | 116,000 |
2022 Warrants | Warrants | |||
Denominator: | |||
Warrants (in shares) | 0 | 0 | 649,000 |
Partial settlement of warrants (in shares) | 0 | 153,000 | 51,000 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss From Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 523 | $ 173 | $ 152 |
Foreign | 485 | 226 | 97 |
Income before income taxes | $ 1,008 | $ 399 | $ 249 |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current provision: | |||
Federal | $ 2 | $ 0 | $ 0 |
State | 31 | 13 | 1 |
Foreign | 101 | 46 | 52 |
Total current provision | 134 | 59 | 53 |
Deferred provision: | |||
Federal | (750) | (1) | (3) |
State | (135) | (1) | (3) |
Foreign | 28 | 17 | (28) |
Total deferred provision | (857) | 15 | (34) |
(Benefit from) provision for income taxes | $ (723) | $ 74 | $ 19 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Income Tax Rate (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax computed at U.S. federal statutory rate | $ 212 | $ 84 | $ 53 |
State taxes, net of federal benefit | 47 | 10 | 0 |
U.S. tax on foreign earnings | 42 | 96 | 0 |
Tax rate differential for international subsidiaries | 29 | 18 | 6 |
Stock-based compensation | 25 | 7 | (160) |
Executive compensation | 32 | 22 | 23 |
Tax credits | (93) | (70) | (76) |
Valuation allowance | (1,032) | (100) | 169 |
Other | 15 | 7 | 4 |
(Benefit from) provision for income taxes | $ (723) | $ 74 | $ 19 |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 257 | $ 605 |
Credit carryforwards | 476 | 388 |
Lease liability | 184 | 178 |
Capitalized research and development | 324 | 262 |
Depreciation and amortization | 552 | 553 |
Other | 167 | 159 |
Total deferred tax assets | 1,960 | 2,145 |
Less: valuation allowance | (196) | (1,228) |
Deferred tax assets net | 1,764 | 917 |
Deferred tax liabilities: | ||
Right of use asset | (165) | (162) |
Other | (131) | (129) |
Net deferred tax assets | $ 1,468 | $ 626 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | ||||
Operating loss carryforward | $ 470 | |||
Credit carryforwards | 476 | $ 388 | ||
Tax credit carryforwards | 1,000 | |||
Deferred tax assets, valuation allowance | 196 | 1,228 | ||
Valuation allowance (decrease) increase | (1,030) | (98) | $ 197 | |
Total unrecognized tax benefit | 221 | 159 | $ 124 | $ 81 |
Unrecognized tax benefits that would impact effective tax rate | 51 | 31 | ||
Unrecognized tax benefits, income tax interest and penalties accrued | 6 | $ 5 | ||
CANADA | ||||
Income Taxes [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 170 | |||
UNITED KINGDOM | ||||
Income Taxes [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 145 | |||
Federal | ||||
Income Taxes [Line Items] | ||||
Credit carryforwards | 404 | |||
State | ||||
Income Taxes [Line Items] | ||||
Credit carryforwards | 272 | |||
Valuation allowance (decrease) increase | (1,050) | |||
Foreign Tax Authority | CANADA | ||||
Income Taxes [Line Items] | ||||
Credit carryforwards | 11 | |||
California Tax Authority | ||||
Income Taxes [Line Items] | ||||
Deferred tax assets, valuation allowance | 196 | |||
Valuation allowance (decrease) increase | $ (20) |
Income Taxes - Reconciliation_3
Income Taxes - Reconciliation of Beginning and Ending Balance of Total Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of beginning and ending balance of total unrecognized tax benefits | |||
Balance, beginning period | $ 159 | $ 124 | $ 81 |
Gross increases - tax positions in prior year | 0 | 0 | 5 |
Gross decreases - tax positions in prior period | 0 | (1) | 0 |
Gross increases - tax positions in current period | 63 | 38 | 38 |
Settlements | (1) | (2) | 0 |
Balance, end of period | $ 221 | $ 159 | $ 124 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Aug. 31, 2020 | |
Operating Leased Assets [Line Items] | ||||
Operating lease costs | $ 129 | $ 112 | $ 100 | |
Operating lease liabilities, payments | 82 | 75 | ||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 130 | 192 | ||
Weighted-average remaining lease term | 9 years | |||
Weighted-average discount rate | 3.80% | |||
Undiscounted cash flows | $ 61 | |||
Unrecognized tax benefits | 51 | 31 | ||
Purchase obligation | $ 500 | |||
Long-term purchase commitment, period | 5 years | |||
2030 Senior Notes | ||||
Operating Leased Assets [Line Items] | ||||
Principal | $ 1,500 | $ 1,500 | ||
Minimum | ||||
Operating Leased Assets [Line Items] | ||||
Operating lease terms | 3 years | |||
Maximum | ||||
Operating Leased Assets [Line Items] | ||||
Operating lease terms | 10 years |
Commitments and Contingencies_2
Commitments and Contingencies - Annual Future Minimum Payments Under Operating Leases / Facility Exit Obligation (Detail) $ in Millions | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 109 |
2025 | 127 |
2026 | 105 |
2027 | 89 |
2028 | 85 |
Thereafter | 422 |
Total operating lease payments | 937 |
Less: imputed interest | (141) |
Present value of operating lease liabilities | 796 |
Purchase Obligations | |
2024 | 365 |
2025 | 281 |
2026 | 266 |
2027 | 530 |
2028 | 65 |
Thereafter | 93 |
Total | 1,600 |
Potential cancellation penalty | $ 51 |
Information about Geographic _3
Information about Geographic Areas and Products - Revenues by Geographic Area (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 8,971 | $ 7,245 | $ 5,896 |
North America | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 5,702 | 4,723 | 3,752 |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 2,298 | 1,778 | 1,551 |
Asia Pacific and other | |||
Segment Reporting Information [Line Items] | |||
Total revenues | $ 971 | $ 744 | $ 593 |
Information about Geographic _4
Information about Geographic Areas and Products - Property and Equipment, Net by Geographic Area (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Property and equipment, net | $ 1,358 | $ 1,053 | |
Percentage of U.S. revenues in North America | 94% | 94% | 94% |
Percentage of U.S. net property and equipment in North America | 79% | 85% | |
North America | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | $ 871 | $ 664 | |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 312 | 221 | |
Asia Pacific and other | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | $ 175 | $ 168 |
Information about Geographic _5
Information about Geographic Areas and Products - Subscription Revenues (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Subscription revenues | $ 8,971 | $ 7,245 | $ 5,896 |
Digital workflow products | |||
Segment Reporting Information [Line Items] | |||
Subscription revenues | 7,679 | 6,077 | 4,882 |
ITOM products | |||
Segment Reporting Information [Line Items] | |||
Subscription revenues | 1,001 | 814 | 691 |
Total subscription revenues | |||
Segment Reporting Information [Line Items] | |||
Subscription revenues | $ 8,680 | $ 6,891 | $ 5,573 |