Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 07, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HUBS | ||
Entity Registrant Name | HubSpot, Inc. | ||
Entity Central Index Key | 0001404655 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 43,287,812 | ||
Entity Public Float | $ 6,810,732,158 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-36680 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 20-2632791 | ||
Entity Address, Address Line One | 25 First Street | ||
Entity Address, City or Town | Cambridge | ||
Entity Address, State or Province | MA | ||
Entity Address, Postal Zip Code | 02141 | ||
City Area Code | 888 | ||
Local Phone Number | 482-7768 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive Proxy Statement for its 2020 Annual Meeting of Stockholders are incorporated by reference in Part III of this Annual Report on Form 10-K. Such Proxy Statement will be filed with the U.S. Securities and Exchange Commission within 120 days after the end of the fiscal year to which this report relates. Except with respect to information specifically incorporated by reference in this Form 10-K, the Proxy Statement is not deemed to be filed as part of this Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 269,670 | $ 111,489 |
Short-term investments | 691,834 | 480,761 |
Accounts receivable—net of allowance for doubtful accounts of $1,584 and $1,317 at December 31, 2019 and 2018, respectively | 92,517 | 77,100 |
Deferred commission expense | 32,078 | 23,664 |
Restricted cash | 5,816 | 5,175 |
Prepaid expenses and other current assets | 17,809 | 14,229 |
Total current assets | 1,109,724 | 712,418 |
Long-term investments | 53,776 | 11,450 |
Property and equipment, net | 83,649 | 52,468 |
Capitalized software development costs, net | 16,793 | 12,746 |
Right-of-use assets | 234,390 | |
Deferred commission expense, net of current portion | 19,110 | 18,114 |
Other assets | 9,824 | 6,888 |
Intangible assets, net | 11,752 | 4,919 |
Goodwill | 30,250 | 14,950 |
Total assets | 1,569,268 | 833,953 |
Current liabilities: | ||
Accounts payable | 12,842 | 7,810 |
Accrued compensation costs | 26,318 | 23,589 |
Accrued expenses and other current liabilities | 28,686 | 22,305 |
Operating lease liabilities | 23,613 | |
Deferred revenue | 231,030 | 183,305 |
Total current liabilities | 322,489 | 237,009 |
Operating lease liabilities, net of current portion | 244,216 | |
Deferred rent, net of current portion | 26,445 | |
Deferred revenue, net of current portion | 3,058 | 2,179 |
Other long-term liabilities | 8,983 | 4,897 |
Convertible senior notes | 340,564 | 318,782 |
Total liabilities | 919,310 | 589,312 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value—authorized, 500,000 shares; 42,955 and 39,300 shares issued and outstanding at December 31, 2019 and 2018, respectively | 44 | 40 |
Additional paid-in capital | 1,048,380 | 589,708 |
Accumulated other comprehensive loss | (336) | (723) |
Accumulated deficit | (398,130) | (344,384) |
Total stockholders’ equity | 649,958 | 244,641 |
Total liabilities and stockholders’ equity | $ 1,569,268 | $ 833,953 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, net of allowance for doubtful accounts | $ 1,584 | $ 1,317 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 42,955,000 | 39,300,000 |
Common stock, shares outstanding | 42,955,000 | 39,300,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | |||
Total revenue | $ 674,860 | $ 512,980 | $ 375,612 |
Cost of Revenue: | |||
Total cost of revenue | 129,958 | 100,357 | 75,729 |
Gross profit | 544,902 | 412,623 | 299,883 |
Operating expenses: | |||
Research and development | 158,237 | 117,603 | 70,373 |
Sales and marketing | 340,685 | 267,444 | 212,859 |
General and administrative | 92,971 | 75,834 | 56,787 |
Total operating expenses | 591,893 | 460,881 | 340,019 |
Loss from operations | (46,991) | (48,258) | (40,136) |
Other expense: | |||
Interest income | 19,429 | 9,176 | 3,837 |
Interest expense | (22,818) | (21,386) | (13,181) |
Other expense | (393) | (1,492) | (559) |
Total other expense | (3,782) | (13,702) | (9,903) |
Loss before income tax (expense) benefit | (50,773) | (61,960) | (50,039) |
Income tax (expense) benefit | (2,973) | (1,868) | 10,325 |
Net loss | $ (53,746) | $ (63,828) | $ (39,714) |
Net loss per common share, basic and diluted | $ (1.28) | $ (1.66) | $ (1.08) |
Weighted average common shares used in computing basic and diluted net loss per common share: | 42,025 | 38,529 | 36,827 |
Subscription [Member] | |||
Revenue: | |||
Total revenue | $ 646,266 | $ 487,450 | $ 356,727 |
Cost of Revenue: | |||
Total cost of revenue | 98,510 | 69,718 | 51,563 |
Professional Services and Other [Member] | |||
Revenue: | |||
Total revenue | 28,594 | 25,530 | 18,885 |
Cost of Revenue: | |||
Total cost of revenue | $ 31,448 | $ 30,639 | $ 24,166 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net loss | $ (53,746) | $ (63,828) | $ (39,714) |
Other comprehensive loss: | |||
Foreign currency translation adjustments | (213) | (776) | 968 |
Changes in unrealized gain (loss) on investments, net of income taxes of $156 in 2019, $0 in 2018, and $0 in 2017. | 600 | 110 | (161) |
Comprehensive loss | $ (53,359) | $ (64,494) | $ (38,907) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Changes in unrealized gain (loss) on investments, income taxes | $ 156 | $ 0 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] |
Beginning Balance, Amount at Dec. 31, 2016 | $ 118,700 | $ 36 | $ 365,444 | $ (864) | $ (245,916) |
Beginning Balance, Shares at Dec. 31, 2016 | 35,784 | ||||
Issuance of common stock under stock plans, net of shares withheld for employee taxes | 7,921 | $ 2 | 7,919 | ||
Issuance of common stock under stock plans, net of shares withheld for employee taxes, Shares | 1,719 | ||||
Stock-based compensation | 48,933 | 48,933 | |||
Cumulative adjustment from adoption of stock compensation standard | 452 | (452) | |||
Unrealized gain (loss) on investments, net of income taxes of 0, 0 and 156 | (161) | (161) | |||
Cumulative translation adjustment | 968 | 968 | |||
Equity component of 2022 Notes (Note 7) | 73,713 | 73,713 | |||
Net loss | (39,714) | (39,714) | |||
Ending Balance, Amount at Dec. 31, 2017 | 210,360 | $ 38 | 496,461 | (57) | (286,082) |
Ending Balance, Shares at Dec. 31, 2017 | 37,503 | ||||
Issuance of common stock under stock plans, net of shares withheld for employee taxes | 14,731 | $ 2 | 14,729 | ||
Issuance of common stock under stock plans, net of shares withheld for employee taxes, Shares | 1,797 | ||||
Stock-based compensation | 78,518 | 78,518 | |||
Cumulative adjustment from adoption of revenue recognition standard (Note 2) | 5,526 | 5,526 | |||
Unrealized gain (loss) on investments, net of income taxes of 0, 0 and 156 | 110 | 110 | |||
Cumulative translation adjustment | (776) | (776) | |||
Net loss | (63,828) | (63,828) | |||
Ending Balance, Amount at Dec. 31, 2018 | 244,641 | $ 40 | 589,708 | (723) | (344,384) |
Ending Balance, Shares at Dec. 31, 2018 | 39,300 | ||||
Issuance of common stock under stock plans, net of shares withheld for employee taxes | 16,861 | $ 2 | 16,859 | ||
Issuance of common stock under stock plans, net of shares withheld for employee taxes, Shares | 1,504 | ||||
Stock-based compensation | 99,185 | 99,185 | |||
Issuance of common stock in relation to common stock offering, net of offering costs incurred $365 | 342,630 | $ 2 | 342,628 | ||
Issuance of common stock in relation to common stock offering, net of offering costs incurred $365, Shares | 2,151 | ||||
Unrealized gain (loss) on investments, net of income taxes of 0, 0 and 156 | 600 | 600 | |||
Cumulative translation adjustment | (213) | (213) | |||
Net loss | (53,746) | (53,746) | |||
Ending Balance, Amount at Dec. 31, 2019 | $ 649,958 | $ 44 | $ 1,048,380 | $ (336) | $ (398,130) |
Ending Balance, Shares at Dec. 31, 2019 | 42,955 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | |||
Offering costs incurred | $ 365 | ||
Unrealized gain (loss) on investments, tax | $ 156 | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities: | |||
Net loss | $ (53,746) | $ (63,828) | $ (39,714) |
Adjustments to reconcile net loss to net cash and cash equivalents provided by operating activities: | |||
Depreciation and amortization | 28,793 | 23,428 | 15,786 |
Stock-based compensation | 97,754 | 76,261 | 47,317 |
Deferred income tax (benefit) expense | (799) | 36 | (11,546) |
Amortization of debt discount and issuance costs | 21,790 | 20,335 | 12,366 |
Accretion of bond discount premium | (14,160) | (6,787) | (1,576) |
Non-cash rent expense | 2,336 | 5,039 | |
Unrealized currency translation | (156) | 483 | (139) |
Changes in assets and liabilities, net of acquisition | |||
Accounts receivable | (15,428) | (17,726) | (20,180) |
Prepaid expenses and other assets | (3,296) | 3,880 | (5,588) |
Deferred commission expense | (9,666) | (23,900) | (4,004) |
Right-of-use assets | 22,657 | ||
Accounts payable | 3,927 | 3,298 | 1,100 |
Accrued expenses and other current liabilities | 7,819 | 11,920 | 8,195 |
Lease liabilities | (15,781) | ||
Deferred rent | 5,799 | 3,559 | |
Deferred revenue | 49,265 | 49,316 | 38,999 |
Net cash and cash equivalents provided by operating activities | 118,973 | 84,851 | 49,614 |
Investing Activities: | |||
Purchases of investments | (1,304,847) | (681,632) | (890,009) |
Maturities and sales of investments | 1,066,366 | 644,375 | 533,660 |
Purchases of property and equipment | (40,372) | (22,305) | (20,276) |
Capitalization of software development costs | (13,474) | (11,168) | (7,071) |
Acquisition of a business, net of cash acquired | (23,314) | (9,415) | |
Purchase of strategic investments | (553) | (500) | (3,500) |
Net cash and cash equivalents used in investing activities | (316,194) | (71,230) | (396,611) |
Financing Activities: | |||
Proceeds from common stock offering, net of offering costs paid of $365 | 342,628 | ||
Repayment of debt | (333) | ||
Employee taxes paid related to the net share settlement of stock-based awards | (6,247) | (8,033) | (4,419) |
Proceeds related to the issuance of common stock under stock plans | 23,578 | 21,555 | 13,086 |
Proceeds from issuance of convertible notes, net of issuance costs paid of $10,767 | 389,233 | ||
Purchase of note hedge related to convertible notes | (78,920) | ||
Proceeds from the issuance of warrants related to convertible notes, net of issuance costs paid of $200 | 58,880 | ||
Repayment of finance lease obligations | (284) | (744) | (1,054) |
Net cash and cash equivalents provided by financing activities | 359,342 | 12,778 | 376,806 |
Effect on exchange rate changes on cash and cash equivalents | (720) | (2,069) | 2,790 |
Net increase in cash, cash equivalents and restricted cash | 161,401 | 24,330 | 32,599 |
Cash, cash equivalents and restricted cash, beginning of year | 117,114 | 92,784 | 60,185 |
Cash, cash equivalents and restricted cash, end of year | 278,515 | 117,114 | 92,784 |
Supplemental cash flow disclosure: | |||
Cash paid for interest | 1,014 | 1,036 | 762 |
Cash paid for income taxes | 3,090 | 1,842 | 855 |
Right-of-use assets obtained in exchange for operating lease facilities | 105,496 | ||
Non-cash investing and financing activities: | |||
Capital expenditures incurred but not yet paid | 4,606 | 666 | 680 |
Asset retirement obligations | $ 2,014 | $ 216 | $ 575 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Offering and issuance costs paid | $ 365 |
Convertible notes, issuance costs | 10,767 |
Warrant [Member] | |
Offering and issuance costs paid | $ 200 |
Organization and Operations
Organization and Operations | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization and Operations | 1. Organization and Operations HubSpot, Inc. (the “Company”) provides a cloud-based inbound marketing, sales and customer service platform, which is referred to in this document as the Company’s Growth Platform, that enables businesses to grow better. The Company’s Growth Platform, comprised of Marketing Hub, Sales Hub, Service Hub, and a free customer relationship management system, or CRM, features integrated applications and tools that enable businesses to create a cohesive and adaptable customer experience throughout the customer lifecycle. On February 19, 2019, the Company closed a common stock offering whereby 2.2 million shares of common stock were sold. The Company received aggregate proceeds of approximately $343.0 million from the offering, net of underwriters’ discounts and commissions, but before deduction of offering expenses of approximately $0.4 million. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation —The consolidated financial statements have been prepared in U.S. dollars, in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions have been eliminated in consolidation. Use of Estimates —The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Operating Segments —The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision makers (“CODMs”), which are the Company’s chief executive officer and chief operating officer, in deciding how to allocate resources and assess performance. The Company’s CODMs evaluate the Company’s financial information and resources and assess the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. Loss Per Share — Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, restricted stock units (“RSUs”), the shares issuable under the Employee Stock Purchase Plan (“ESPP”), and the Conversion Option and warrants of the 2022 Notes are considered to be potential common stock equivalents. A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows: Year Ended December 31, 2019 2018 2017 (in thousands, except per share amounts) Net loss $ (53,746 ) $ (63,828 ) $ (39,714 ) Weighted-average common shares outstanding—basic 42,025 38,529 36,827 Dilutive effect of share equivalents resulting from stock options, RSUs, ESPP, Conversion Option and warrants of the 2022 Notes — — — Weighted-average common shares outstanding-diluted 42,025 38,529 36,827 Net loss per common share, basic and diluted $ (1.28 ) $ (1.66 ) $ (1.08 ) Since the Company incurred net losses for each of the periods presented, diluted net loss per share is the same as basic net loss per share. The Company’s outstanding stock options, RSUs, shares issuable under the ESPP, and Conversion Option and Warrants of the 2022 Notes were not included in the calculation of diluted net loss per share as the effect would be anti-dilutive. The following table contains all potentially dilutive common stock equivalents. Year Ended December 31, 2019 2018 2017 (in thousands) Options to purchase common shares 1,489 1,824 2,085 RSUs 1,207 1,732 2,315 Conversion option and warrants of the 2022 Notes 3,104 1,211 — ESPP 2 — 10 The Company expects to settle the principal amount of the 2022 Notes (Note 7) in cash, and therefore, the Company uses the treasury stock method for calculating any potential dilutive effect of the Conversion Option on diluted net income per share, if applicable. The Conversion Option will have a dilutive impact on net income per share when the average market price of the Company’s common stock for a given period exceeds the conversion price of the 2022 Notes of $94.77 per share. . Cash and Cash Equivalents — The Company considers all highly liquid investments purchased with original maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of cash held in bank deposit accounts and short-term, highly-liquid investments with remaining maturities of three months or less at the date of purchase, consisting primarily of money-market funds. Investments — Investments consist of commercial paper, corporate debt securities and U.S. Treasury securities. Securities having remaining maturities of more than three months at the date of purchase and less than one year from the date of the balance sheets are classified as short-term, and those with maturities of more than one year from the date of the balance sheet are classified as long-term in the consolidated balance sheets. The Company classifies its debt investments with readily determinable market values as available-for-sale. These investments are classified as investments on the consolidated balance sheets and are carried at fair market value, with unrealized gains and losses considered to be temporary in nature reported as accumulated other comprehensive loss, a separate component of stockholders’ equity. The Company reviews all investments for reductions in fair value that are other-than-temporary. When such reductions occur, the cost of the investment is adjusted to fair value through recording a loss on investments in the consolidated statements of operations. Gains and losses on investments are calculated on the basis of specific identification. Investments are considered to be impaired when a decline in fair value below cost basis is determined to be other-than-temporary. The Company periodically evaluates whether a decline in fair value below cost basis is other-than-temporary by considering available evidence regarding these investments including, among other factors: the duration of the period that, and extent to which, the fair value is less than cost basis; the financial health of, and business outlook for the issuer, including industry and sector performance and operational and financing cash flow factors; overall market conditions and trends and the Company’s intent and ability to retain its investment in the security for a period of time sufficient to allow for an anticipated recovery in market value. Once a decline in fair value is determined to be other-than-temporary, a write-down is recorded and a new cost basis in the security is established. Strategic investments — Strategic investments consist of non-controlling equity investments in privately held companies. These investments without readily determinable fair values for which the Company does not have the ability to exercise significant influence are accounted for using the measurement alternative. Under the measurement alternative, the non-marketable securities are carried at cost less any impairments, plus or minus adjustments resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. Accounts Receivable and Allowance for Doubtful Accounts — Accounts receivable are carried at the original invoiced amount less an allowance for doubtful accounts based on the probability of future collection. The probability of future collection is based on specific considerations of historical loss patterns and an assessment of the continuation of such patterns based on past collection trends and known or anticipated future economic events that may impact collectability. The probability of future collection is also assessed by geography. To date, losses resulting from uncollected receivables have not exceeded management’s expectations. The following is a roll forward of the Company’s allowance for doubtful accounts (in thousands): Balance Beginning of Period Charged to Statement of Operations Deductions (1) Balance at End of Period Allowance for doubtful accounts Year ended December 31, 2019 $ 1,317 $ 7,895 $ (7,628 ) $ 1,584 Year ended December 31, 2018 $ 638 $ 5,514 $ (4,835 ) $ 1,317 Year ended December 31, 2017 $ 617 $ 3,353 $ (3,332 ) $ 638 (1) Deductions include actual accounts written-off, net of recoveries. Restricted Cash —The Company had restricted cash of $8.8 million at December 31, 2019 and $5.6 million at December 31, 2018 related to letters of credit for it leased facilities. The following table provides a reconciliation of the cash, cash equivalents and restricted cash within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows for the year ended December 31, 2019 and 2018. December 31, 2019 December 31, 2018 (in thousands) Cash and cash equivalents $ 269,670 $ 111,489 Restricted cash 5,816 5,175 Restricted cash included in other assets 3,029 450 Total cash, cash equivalents, and restricted cash $ 278,515 $ 117,114 Property and Equipment —Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major betterments are capitalized as additions to leasehold improvements. Depreciation is recorded over the following estimated useful lives: Estimated Useful Life Employee related computer equipment 2 - 3 years Computer equipment and purchased software 3 years Furniture and fixtures 5 years Internal use software 5 years Leasehold improvements Lesser of lease The Company capitalizes certain payroll and stock compensation costs incurred to develop functionality for certain of the Company’s internally built software platforms. The costs incurred during the preliminary stages of development are expensed as incurred. Once a piece of incremental functionality has reached the development stage certain internal costs are capitalized until the functionality is ready for its intended use. Internal use software is included within property and equipment on the balance sheet. The costs are generally amortized on a straight-line basis over an estimated useful life of approximately five years. Impairment of Long-Lived Assets — Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable or that the useful lives of those assets are no longer appropriate. Management considers the following potential indicators of impairment of its long-lived assets (asset group): a substantial decrease in the Company’s stock price, a significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used, a significant adverse change in legal factors or in the business climate that could affect the value of the long-lived asset (asset group), an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group), and a current expectation that, more likely than not, a long lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. When such events occur, the Company compares the carrying amounts of the assets to their undiscounted expected future cash flows. If this comparison indicates that there may be an impairment, the amount of the impairment is calculated as the difference between the carrying value and fair value. For the years presented, the Company did not recognize an impairment charge. Intangible Assets — Intangible assets consist of acquired technology, trade name and customer relationships. The Company records acquired intangible assets at fair value on the date of acquisition and amortize such assets in a pattern reflective of the expected economic benefits consumption over the expected useful life of the asset. If this pattern cannot be reliably determined, a straight-line amortization method is used. The estimated useful life of acquired technology is two to seven years and is based on the period over which economic benefits will be derived from each acquired intangible asset. The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. If the estimate of an intangible asset’s remaining useful life is changed, the remaining carrying value of the intangible asset is amortized prospectively over the revised remaining useful life. Goodwill —Goodwill represents the excess of cost over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Goodwill is not subject to amortization but is monitored annually for impairment or more frequently if there are indicators of impairment. Management considers the following potential indicators of impairment: significant underperformance relative to historical or projected future operating results, significant changes in the Company’s use of acquired assets or the strategy of the Company’s overall business, significant negative industry or economic trends and a significant decline in the Company’s stock price for a sustained period. The Company performs its annual impairment test on November 30. Currently, the Company’s goodwill is evaluated at the entity level as it has been determined there is one reporting unit. When assessing goodwill for impairment the Company first performs a qualitative assessment to determine whether it is necessary to perform the two-step quantitative analysis. If the Company determines it is unlikely that the reporting unit fair value is less than its carrying value then no two-step impairment test is performed. If the Company cannot determine that it is likely that the reporting unit fair value is more than its carrying value, then the Company performs a two-step impairment test. Based on the qualitive assessment performed on November 30, 2019, the Company determined it was unlikely that it’s reporting unit fair value was less than its carrying value and no two-step impairment test was required. There were no indicators that the Company’s goodwill had become impaired since that date, and as such, there was no impairment of goodwill as of November 30, 2019 or December 31, 2019 . For the years ended December 31, 2019, 2018 and 2017, the Company did not recognize an impairment charge. Business Combinations — The Company uses its best estimates and assumptions to assign fair value to the assets acquired and liabilities assumed. Significant judgment is used in determining fair values of assets acquired and liabilities assumed, as well as intangible assets and their estimated useful lives. Fair value and useful life determinations are based on, among other factors, estimates of future expected cash flows attributable to the acquired intangible assets and appropriate discount rates used in computing present values. Goodwill represents the excess of the purchase price over the estimated fair values of the assets acquired and liabilities assumed. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to 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. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statement of operations. Advertising Expense —The Company expenses advertising as incurred, which is included in sales and marketing expense in the accompanying consolidated statements of operations. The Company incurred $14.9 million of advertising expense in 2019, $8.4 million in 2018, and $5.5 million in 2017. Leases — On January 1, 2019, the Company adopted the new lease guidance using a modified retrospective transition method applied to those leases which were not completed as of January 1, 2019. The Company leases office facilities under non-cancelable operating leases that expire at various dates through May 2031 and leases office equipment under a non-cancelable finance lease that expires in March 2020. Certain operating leases contain optional termination dates, and the Company is not reasonably certain to extend its lease agreements beyond those dates. The Company determines if an arrangement contains a lease at inception and does not separate lease and non-lease components of an arrangement determined to contain a lease. Operating leases are included in right-of-use (“ROU”) assets, current operating lease liabilities and operating lease liabilities, net of current portion, on the Company’s consolidated balance sheet. Finance leases are included in property and equipment, net, accrued expenses, and other current liabilities on the Company’s consolidated balance sheet. Operating and finance leases with a duration of less than 12 months are excluded from right-of-use-assets and operating lease liabilities and related expense is recorded as incurred. ROU assets represent the Company's right to use an underlying asset for the lease term and the corresponding lease liabilities represent its obligation to make lease payments arising from the lease. Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the lease commencement date. The lease ROU asset includes any initial direct costs incurred and is reduced for tenant incentives. As the Company’s operating leases do not provide an implicit rate, the net present value of future minimum lease payments is determined using the Company’s incremental borrowing rate. Lease expense for minimum lease payments for operating leases are recognized on a straight-line basis over the lease term. Finance leases use the effective interest method to record expense which results in a front-loaded expense recognition pattern. The following table provides a summary of lease assets and liabilities as of December 31, 2019: Leases Balance sheet classification Amount (in thousands) Assets: Operating lease assets Right-of-use assets $ 234,390 Finance lease assets Fixed assets 68 Total leased assets $ 234,458 Liabilities: Current Operating lease liabilities Lease liabilities $ 23,613 Finance lease liabilities Accrued expenses and other current liabilities 28 Noncurrent Operating Lease liabilities, net of current portion 244,216 Total lease liabilities $ 267,857 Operating lease expense costs was $32.2 million for 2019, net of $2.5 million of operating sublease income related to certain office facilities subleased to third parties. Finance lease costs consisted of $0.2 million related to the amortization finance lease assets and $0.1 million of interest expense for 2019. The following table provides a reconciliation between non-cancelable lease commitments and lease liabilities as of December 31, 2019 : Operating leases Finance Leases Lease commitments (Note 9) $ 412,719 $ 28 Less: Legally binding minimum lease payments for leases signed but not yet commenced (70,928 ) — Less: Present value discount (73,962 ) — Total lease liabilities $ 267,829 $ 28 Certain leases contain optional termination dates. If the Company were to extend leases beyond the optional termination date, the future commitments would increase by approximately $83.0 million. Lease Term and Discount Rate The Company uses its estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of operating lease payments. To determine the estimated incremental borrowing rate, the Company uses publicly available credit ratings for peer companies. The Company estimates the incremental borrowing rate using yields for maturities that are in line with the duration of the lease payments. The following table provides weighted average remaining lease terms and weighted average discount rate for operating and finance leases as of December 31, 2019 Weighted-average remaining lease term: Operating leases 9.2 years Finance leases 0.25 years Weighted-average discount rate: Operating leases 5.6% Finance leases 3.8% Other Information In 2019, c ash payments were $28.8 million for operating lease liabilities and $0.3 million for finance lease liabilities Asset retirement obligations (“ARO”) On the lease commencement date the Company establishes an ARO based on the present value of contractually required estimated future costs to retire long-lived assets at the termination or expiration of a lease. The asset associated with the ARO is amortized over the corresponding lease term to operating expense and the ARO is accreted to the end of lease obligation value over the same term. The changes in the ARO balance during the year ending December 31, 2019 and December 31, 2018 are as follows: Year Ended December 31, 2019 2018 (in thousands) Beginning balance $ 1,424 $ 1,191 Additions 2,028 459 Accretion 103 92 Updates to estimated cash flows (22 ) (318 ) Ending balance $ 3,533 $ 1,424 Revenue Recognition — The Company generates revenue from arrangements with multiple performance obligations, which typically include subscriptions to its online software products and professional services which include on-boarding and training services. The Company’s customers do not have the right to take possession of the online software products. The Company recognizes revenue from contracts with customers using a five-step model, which is described below: • Identify the customer contract; • Identify performance obligations that are distinct; • Determine the transaction price; • Allocate the transaction price to the distinct performance obligations; and • Recognize revenue as the performance obligations are satisfied. Identify the customer contract A customer contract is generally identified when the Company and a customer have executed an arrangement that calls for the Company to grant access to its online software products and provide professional services in exchange for consideration from the customer. Identify performance obligations that are distinct A performance obligation is a promise to provide a distinct good or service or a series of distinct goods or services. A good or service that is promised to a customer is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and a company’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. The Company has determined that subscriptions for its online software products are distinct because, once a customer has access to the online software product that it purchased, the online software product is fully functional and does not require any additional development, modification, or customization. Professional services sold are distinct because the customer benefits from the on-boarding and training to make better use of the online software products it purchased. Determine the transaction price The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer, excluding sales taxes that are collected on behalf of government agencies. The Company estimates any variable consideration to which it will be entitled at contract inception, and reassesses at each reporting date, when determining the transaction price. The Company does not include variable consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will occur when any uncertainty associated with the variable consideration is resolved. Allocate the transaction price to the distinct performance obligations The transaction price is allocated to each performance obligation based on the relative standalone selling prices (“SSP”) of the goods or services being provided to the customer. The Company determines the SSP of its goods and services based upon the average sales prices for each type of online software product and professional services sold. In instances where there are not sufficient data points, or the selling prices for a particular online software product or professional service are disparate, the Company estimates the SSP using other observable inputs, such as similar products or services. Recognize revenue as the performance obligations are satisfied Revenues are recognized when or as control of the promised goods or services is transferred to customers. Revenue from online software products Solutions Partner Commissions The Company pays its Solutions Partners a commission based on the online software product sales price for sales to end-customers. The classification of the commission paid in the Company’s consolidated statements of operations depends on who purchases the online software product. In instances where an end-customer purchases from the Company, the commission paid to the Solutions Partner Disaggregation of Revenue The Company provides disaggregation of revenue based on geographic region (Note 9) and based on the subscription versus professional services and other classification on the consolidated statements of operations as it believes these best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Deferred Revenue and Deferred Commission Expense Amounts that have been invoiced are recorded in accounts receivable and deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. Deferred revenue represents amounts billed for which revenue has not yet been recognized. Deferred revenue that will be approximately $178.4 million roximately 94% of these Additional contract liabilities $1.4 million and $1.6 million were included in accrued expenses and other current liabilities as of December 31, 2019 and December 31, 2018. The incremental direct costs of obtaining a contract, which primarily consist of sales commissions paid for new subscription contracts, are deferred and amortized on a straight-line basis over a period of approximately one to three years. The one to three-year period has been determined by taking into consideration the type of product sold, the commitment term of the customer contract, the nature of the Company’s technology development life-cycle, and an estimated customer relationship period. Sales commissions for upgrade contracts are deferred and amortized on a straight-line basis over the remaining estimated customer relationship period of the related customer. Deferred commission expense that will be recorded as expense during the succeeding 12-month period is recorded as current deferred commission expense, and the remaining portion is recorded as long-term deferred commission expense. Deferred commission expense during the year ended December 31, 2019 increased by $9.4 million as a result of deferring incremental costs of obtaining a contract of $42.2 million and was offset by amortization of $32.8 million Concentrations of Credit Risk and Significant Customers —Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, investments and accounts receivable. The Company's cash and cash equivalents are generally held with large financial institutions. Although the Company's deposits may exceed federally insured limits, the financial institutions that the Company uses have high investment-grade credit ratings and, as a result, the Company believes that, as of December 31, 2019, its risk relating to deposits exceeding federally insured limits was not significant. The Company’s investments consist of highly rated corporate debt securities and U.S. Treasury securities . The Company limits the amount of investments in any single issuer, except U.S. Treasuries. The Company believes that, as of December 31, 2019, its concentration of credit risk related to investments was not significant. The Company has no significant off-balance sheet risk such as foreign exchange contracts, option contracts, or other hedging arrangements. The Company generally does not require collateral from its customers and generally requires payment 30 days from the invoice date. The Company maintains an allowance for doubtful accounts based on its assessment of the collectability of accounts receivable. Credit risk arising from accounts receivable is mitigated as a result of transacting with a large number of geographically dispersed customers spread across various industries. At December 31, 2019 and 2018, there were no customers that represented more than 10% of the net accounts receivable balance. There were no customers that individually exceeded 10% of the Company’s revenue in any of the periods presented. Foreign Currency —The functional currency of the Company’s foreign subsidiaries is the local currency. Assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rates in effect at the balance sheet dates, with the resulting translation adjustments directly recorded to a separate component of accumulated other comprehensive loss. Income and expense accounts are translated at the weighted-average exchange rates during the period. Foreign currency transaction gains and losses are recorded in other expense. Research and Development —Research and development expenses include payroll, employee benefits and other expenses associated with product development. Capitalized Software Development Costs —Certain payroll and stock compensation costs incurred to develop functionality for the Company’s software and internally built software platforms, as well as certain upgrades and enhancements that are expected to result in enhanced functionality are capitalized. The costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, the Company capitalizes certain software development costs for new offerings as well as upgrades to existing software platforms. Capitalized software development costs are amortized on a straight-line basis over their estimated useful life of two to five years. Management evaluates the useful lives of these assets on a quarterly basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. The Company determines the amount of internal software costs to be capitalized based on the amount of time spent by the developers on projects in the application stage of development. There is judgment involved in estimating time allocated to a particular project in the application stage. Costs associated with building or significantly enhancing the Growth Platform and internally built software platforms are capitalized, while costs associated with planning new developments and maintaining the Growth Platform software and internally built software platforms are expensed as incurred. Capitalized software development costs, exclusive of those costs recorded within property and equipment, consisted of the following: December 31, 2019 December 31, 2018 (in thousands) Gross capitalized software development costs $ 61,641 $ 46,169 Accumulated amortization (44,848 ) (33,423 ) Capitalized software development costs, net $ 16,793 $ 12,746 The Company capitalized software development costs, exclusive of costs recorded within property and equipment, of $15.5 million in 2019, $12.8 million in 2018, and $8.2 million in 2017. Stock-based compensation costs included in capitalized software were $2.1 million in 2019, $2.4 million in 2018, and $1.6 million in 2017 . Amortization of capitalized software development costs, exclusive of costs recorded within property and equipment, was $11.6 million in 2019, $9.2 million in 2018, and $6.3 million in 2017. Amortization expense is included in cost of revenue in the consolidated statements of operations. Income Taxes —Deferred tax assets and liabilities are recognized for the differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities using tax rates expected to be in effect in the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if it is |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 3. Fair Value of Financial Instruments The Company measures certain financial assets at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 — Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets and liabilities at December 31, 2019 and December 31, 2018 : December 31, 2019 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 96,618 $ — $ — $ 96,618 Commercial paper — 87,185 — 87,185 Corporate bonds — 87,138 — 87,138 U.S. Treasury securities — 631,174 — 631,174 Restricted cash: Certificates of deposit — 5,816 — 5,816 Money market funds — 3,029 — 3,029 Total $ 96,618 $ 814,342 $ — $ 910,960 December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 1,579 $ — $ — $ 1,579 Commercial paper — 8,242 — 8,242 Corporate bonds — 70,728 — 70,728 U.S. Treasury securities — 413,241 — 413,241 Restricted cash: Certificates of deposit — 5,625 — 5,625 Total $ 1,579 $ 497,836 $ — $ 499,415 The Company considers all highly liquid investments purchased with a remaining maturity of three months or less to be cash equivalents. The fair value of the Company’s investments in certain money market funds is their face value and such instruments are classified as Level 1 and are included in cash and cash equivalents, and restricted cash (within other long-term assets) on the consolidated balance sheets. At December 31, 2019 and 2018, Level 2 securities were priced by pricing vendors. These pricing vendors utilize the most recent observable market information in pricing these securities or, if specific prices are not available for these securities, use other observable inputs like market transactions involving identical or comparable securities. As of December 31, 2019, the fair value of the 2022 Notes (Note 7) was $693.2 million. The fair value was determined based on the quoted price of the 2022 Notes in an inactive market on the last trading day of the reporting period and has been classified as Level 2 within the fair value hierarchy. For certain other financial instruments, including accounts receivable, accounts payable, finance leases and other current liabilities, the carrying amounts approximate their fair value due to the relatively short maturity of these balances. Restricted cash is comprised of money market funds and certificates of deposit related to landlord guarantees for leased facilities. These restricted cash balances have been excluded from our cash and cash equivalents balance on our consolidated balance sheets. Strategic investments consist of non-controlling equity investments in privately held companies. The Company elected the measurement alternative for these investments without readily determinable fair values and for which the Company does not have the ability to exercise significant influence. These investments are accounted for under the cost method of accounting. Under the cost method of accounting, the non-marketable equity securities are carried 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, which is recorded within the statement of operations. The Company holds $4.4 The following tables summarize the composition of our short- and long-term investments at December 31, 2019 and 2018: December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 77,214 $ — $ — $ 77,214 Corporate bonds 86,900 251 (13 ) 87,138 U.S. Treasury securities 581,066 207 (15 ) 581,258 Total $ 745,180 $ 458 $ (28 ) $ 745,610 December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 8,256 $ — $ (14 ) $ 8,242 Corporate bonds 70,958 3 (233 ) 70,728 U.S. Treasury securities 413,323 56 (138 ) 413,241 Total $ 492,537 $ 59 $ (385 ) $ 492,211 For all of our securities for which the amortized cost basis was greater than the fair value at December 31, 2019 and 2018, the Company has concluded that there is no plan to sell the security nor is it more likely than not that the Company would be required to sell the security before its anticipated recovery. In making the determination as to whether the unrealized loss is other-than-temporary, the Company considered the length of time and extent the investment has been in an unrealized loss position, the financial condition and near-term prospects of the issuers, the issuers’ credit rating and the time to maturity. Contractual Maturities The contractual maturities of short-term and long-term investments held as follows: December 31, 2019 December 31, 2018 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value ( in thousands) Due within one year $ 691,556 $ 691,834 $ 481,071 $ 480,761 Due after 1 year and within 2 years 53,624 53,776 11,466 11,450 Total $ 745,180 $ 745,610 $ 492,537 $ 492,211 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment consists of the following: December 31. 2019 2018 (in thousands) Computer equipment & purchased software $ 13,028 $ 10,714 Employee computer equipment 13,829 8,972 Furniture and fixtures 14,319 13,019 Leasehold improvements 56,618 42,894 Equipment under finance lease 3,450 3,450 Internal-use software 7,770 5,363 Construction in progress 23,714 2,498 Total property and equipment 132,728 86,910 Less accumulated depreciation (49,079 ) (34,442 ) Property and equipment, net $ 83,649 $ 52,468 Depreciation and amortization expense was $15.0 million in 2019, $12.9 million in 2018, and $9.4 million in 2017. Accumulated depreciation for equipment under finance lease was $3.4 million as of December 31, 2019 and $3.1 million as of December 31, 2018. The Company capitalized asset retirement costs of $3.3 million at December 31, 2019 and $1.3 million at December 31, 2018 within leasehold improvements and the related liability is within other long-term liabilities on the consolidated balance sheet. These costs represent future lease restoration obligations as required by Company’s leases. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | 5. Business Acquisitions On October 31, 2019, the Company acquired 100% of the equity interests of PieSync, a Belgian-based technology company that operates an integration platform as a service (“iPaaS”) solution which continuously syncs customer data bi-directionally across various software applications. PieSync is one of the only iPaaS technologies that provides both a current and historical two-way sync of customer data that operates in the background, which will offer customers a more efficient way of managing multiple applications. The total cash purchase price for the acquisition was $23.3 million, net of cash acquired, which includes a working capital settlement of $0.3 million. Other liabilities assumed includes $333 thousand of debt, which the Company repaid in 2019. There was approximately $2.7 million of potential consideration that was not included in the purchase price allocation as it is not associated with pre-combination services. This potential additional payment is contingent upon post-acquisition employment and will be recognized as compensation expense in the consolidated statement of operations over a period of 2 years. The transaction costs associated with the acquisition were approximately $527 thousand and were recorded in general and administrative expense. The following table summarizes the fair value of assets acquired and liabilities assumed as of the date of acquisition: Fair value (in thousands) Cash $ 646 Accounts receivable 133 Other current and noncurrent assets 218 Acquired developed technology 9,800 Other intangible assets 70 Goodwill 15,219 Accounts payable, accrued expenses, and other liabilities (731 ) Deferred revenue (210 ) Deferred tax liability (1,324 ) Total purchase price $ 23,821 The excess of the purchase consideration over the fair value of net tangible and identifiable intangible assets and liabilities acquired was recorded as goodwill. The Company will derive significant value from this acquisition through synergies such as cross selling opportunities and a stronger platform that offers a suite of products not directly matched by competitors. The goodwill recognized is not deductible for U.S. or foreign income tax purposes. The Company applied variations of the income approach to estimate the fair values of the intangible assets acquired. The primary intangible asset acquired in the business combination was developed technology and the fair value of the developed technology of $9.8 million was determined based on the estimated present value of expected after-tax cash flows attributable to the technology using an excess earnings method. The Company applied significant estimates and assumptions with respect to forecasted revenue growth rates, the revenue attributable to the acquired intangible asset over its estimated economic life and the discount rate. The fair values assigned to the other tangible and identifiable intangible assets acquired and liabilities assumed as part of the business combination were based on management’s estimates and assumptions The Company began amortizing the acquired technology on the date of acquisition. The acquired technology is being amortized over seven years using a method reflective of the expected economic benefit consumption over the expected useful life of the asset. The Company has included the operating results of PieSync, which are not material, in its consolidated financial statements since the date of the acquisition. The acquisition did not have a material effect on the revenue or earnings in the consolidated income statement for the reporting periods presented. The pro forma results of the Company as if the acquisition had taken place on the first day of 2018 were not materially different from the amounts reflected in the accompanying consolidated financial statements. In 2017, the Company acquired 100% of the equity interests of Motion AI, Inc., a Delaware technology corporation that allows users to scale one-to-one communications. The acquisition strengthened the Company’s position in the one-to-one communication space. Under the terms of the purchase agreement, the Company paid $9.0 million. The excess of the purchase consideration over the fair value of net tangible and identifiable intangible assets and liabilities acquired was recorded as goodwill and is primarily attributable to expanded market opportunities. The goodwill recognized was not deductible for U.S. income tax purposes. The fair values assigned to tangible and identifiable intangible assets acquired and liabilities assumed as part of the business combination were determined based on the replacement costs and present value of expected after-tax cash flows attributable to the business which were derived from management’s estimates and assumptions. The sole intangible asset acquired in the business combination was developed technology and the estimate of fair value of the developed technology was determined using a replacement cost approach and the useful life of the technology was estimated to be two years. The Company began amortizing the acquired technology in 2018 when the technology is placed in use. The allocation of the purchase price to the estimated fair value of acquired assets and assumed liabilities was $32 thousand of tangible assets, $6.0 million of acquired technology, and $5.2 million of goodwill. As part of the purchase price allocation, the Company recorded a deferred tax benefit of $2.2 million from a partial release of its deferred tax asset valuation allowance. The net deferred tax liability from this acquisition provided a source of additional income to support the realizability of the Company’s pre-existing deferred tax assets and as a result, the Company released a portion of its valuation allowance. Lastly, there was approximately $4.0 million of potential consideration that was not included in the purchase price allocation as it is not associated with pre-combination services. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | 6. Intangible Assets and Goodwill Intangible assets acquired through business combinations Intangible assets as of December 31, 2019 2018 Weighted Average Remaining Useful Life December 31, 2019 2018 (in thousands) Acquired technology 44 Months $ 17,297 $ 7,252 Other intangible assets 22 Months 70 - Accumulated amortization (5,615 ) (2,333 ) Total $ 11,752 $ 4,919 Other intangible assets include trade name and customer relationship. The estimated useful life of acquired technology is two to seven years. The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Amortization expense related to intangible assets was $3.2 million in 2019 2018 2017 Estimated future amortization expense for intangible assets as of December 31, 2019 Years ended December 31, Amortization Expense (in thousands) 2020 $ 2,414 2021 927 2022 1,286 2023 1,686 2024 1,966 Thereafter 3,473 Total $ 11,752 Goodwill Goodwill represents the excess of the purchase price in a business combination over the fair value of net assets acquired and is generally not deductible for tax purposes. Goodwill amounts are not amortized, but rather tested for impairment annually. There was no change in the carrying amount of goodwill in 2018. The changes in the carrying amounts of goodwill in 2019, consist of the following: (in thousands) Balance as of December 31, 2018 $ 14,950 PieSync acquisition 15,219 Effect of foreign currency translation 81 Balance as of December 31, 2019 $ 30,250 |
0.25% Convertible Senior Notes,
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant | 7. 0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant In May 2017, the Company issued $350 million aggregate principal amount of 0.25% convertible senior notes due June 1, 2022 (the “Maturity Date”) in a private offering and an additional $50 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the initial purchasers (the “2022 Notes”). The interest rates are fixed at 0.25% per annum and are payable semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2017. The total net proceeds from the debt offering, after deducting initial purchase discounts and debt issuance costs, were approximately $389.2 million. Each $1,000 principal amount of the 2022 Notes will initially be convertible into 10.5519 shares of the Company’s common stock (the “Conversion Option”), which is equivalent to an initial conversion price of approximately $94.77 per share, subject to adjustment upon the occurrence of specified events. The 2022 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding February 1, 2022, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2017, if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “Measurement Period”) in which the trading price per $1,000 principal amount of notes for each trading day of the Measurement Period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events. At December 31, 2019 and 2018 the Company has reserved approximately 4.2 million shares of common stock for issuance upon conversion of the 2022 Notes. On or after February 1, 2022 until the close of business on the second scheduled trading day immediately preceding the Maturity Date, holders may convert their 2022 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of the Company’s common stock or a combination of cash and shares of the Company’s common stock, at the Company’s election. If the Company undergoes a fundamental change prior to the maturity date, holders of the notes may require the Company to repurchase for cash all or any portion of their notes at a repurchase price equal to 100 % of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if specific corporate events occur prior to the applicable maturity date, the Company will increase the conversion rate for a holder who elects to convert their notes in connection with such a corporate event in certain circumstances. Because the last reported sale price of the Company’s common stock for at least 20 trading days during the period of 30 consecutive trading days ending on the last trading day of the calendar quarter ended December 31, 201 9 was equal to or greater than 130 % of the applicable conversion price on each applicable trading day, the 2022 Notes are convertible at the option of the holders thereof during the calendar quarter ending March 31, 2020 . As of December 3 1, 2019, the Company settled approximately $ 8 thousand of the principal balance of the 2022 Notes in cash . In accounting for the issuance of the convertible senior notes, the Company separated the 2022 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the Conversion Option was $106 million and was determined by deducting the fair value of the liability component from the par value of the 2022 Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (the "Debt Discount") is amortized to interest expense over the term of the 2022 Notes expense at an effective interest rate of 6.95% over the contractual term of the 2022 Notes. In accounting for the debt issuance costs of $10.8 million related to the 2022 Notes, the Company allocated the total amount incurred to the liability and equity components of the 2022 Notes based on their relative values. Issuance costs attributable to the liability component were $7.9 million and will be amortized to interest expense using the effective interest method over the contractual terms of the 2022 Notes. Issuance costs attributable to the equity component were $2.9 million and are netted with the equity component in stockholders’ equity. The net carrying amount of the liability component of the 2022 Notes is as follows: As of December 31, 2019 As of December 31, 2018 (in thousands) Principal $ 399,992 $ 400,000 Unamortized debt discount (55,299 ) (75,575 ) Unamortized issuance costs (4,129 ) (5,643 ) Net carrying amount $ 340,564 $ 318,782 The net carrying amount of the equity component of the 2022 Notes is as follows: As of December 31, 2019 As of December 31, 2018 (in thousands) Debt discount for conversion option $ 106,006 106,006 Issuance costs (2,854 ) (2,854 ) Net carrying amount $ 103,152 $ 103,152 Interest expense related to the 2022 Notes is as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Contractual interest expense $ 1,000 $ 1,000 $ 639 Amortization of debt discount 20,277 18,923 11,507 Amortization of issuance costs 1,513 1,412 859 Total interest expense $ 22,790 $ 21,335 $ 13,005 In connection with the offering of the 2022 Notes, the Company entered into convertible note hedge transactions (the “Convertible Note Hedges”) with certain counterparties in which the Company has the option to purchase (subject to adjustment for certain specified events) a total of approximately 4.2 million shares of the Company’s common stock at a price of approximately $94.77 per share. The Convertible Note Hedges will be settled in cash or shares, or any combination thereof, in accordance with the settlement method of the 2022 Notes in excess of the par amount, and are expected to settle upon conversion of the 2022 Notes. The total cost of the Convertible Note Hedges was $78.9 million. In addition, the Company sold warrants to certain bank counterparties whereby the holders of the warrants have the option to purchase initially (subject to adjustment for certain specified events) a total of approximately 4.2 million shares of the Company’s common stock at a price of $115.80 per share. The amount by which the settlement price exceeds the strike price may be settled in shares or cash at the Company’s election. The warrants are expected to settle three business days from each trading day commencing on September 1, 2022 and ending on the 79th trading day thereafter. The Company received $58.9 million in cash proceeds, net of issuance costs of $200 thousand, from the sale of these warrants. Taken together, the purchase of the Convertible Note Hedges and the sale of warrants are intended to offset any actual dilution from the conversion of these notes and to effectively increase the overall conversion price from $94.77 to $115.83 per share. As these transactions meet certain accounting criteria, the Convertible Note Hedges and warrants are recorded in stockholders’ equity and are not accounted for as derivatives. The net cost of $20 million incurred in connection with the Convertible Note Hedges and warrant transactions was recorded as a reduction to additional paid-in capital on the consolidated balance sheet. The number of shares of our common stock underlying the warrants is 4.2 million, t he same number of shares originally underlying the 2022 Notes and the Convertible Note Hedge transactions. The Company has reserved 4.2 million shares of common stock for the underlying warrants. The difference between the Debt Discount and the total cost of the Convertible Note Hedges, and the difference between the calculation of the book and tax allocation of debt issuance costs between the liability and equity components of the 2022 Notes, resulted in a difference between the carrying amount and tax basis of the 2022 Notes. This taxable temporary difference resulted in the Company recognizing a $9.4 million deferred tax liability which was recorded as an adjustment to additional paid-in capital on the consolidated balance sheet. The creation of the deferred tax liability is recognized as a component of equity and represents a source of future taxable income which supports realization of a portion of the income tax benefit associated with the 2017 loss from operations. Therefore, the Company recorded a corresponding income tax benefit in its consolidated statement of operations in 2017. The net equity impact, included in additional paid-in capital, of the above components of the 2022 Notes is as follows: (in thousands) Conversion Option $ 106,006 Purchase of Convertible Note Hedges (78,920 ) Sales of warrants 59,080 Issuance costs (3,054 ) Deferred tax liability (9,399 ) Total $ 73,713 |
Segment Information and Geograp
Segment Information and Geographic Data | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information and Geographic Data | 8. Segment Information and Geographic Data As more fully described in the Company’s Summary of Significant Accounting Policies, the Company operates in one operating segment. Revenue and long-lived assets by geographic region, based on physical location of the operations recording the sale or the assets are as follows: Revenues by geographical region: Year Ended December 31, 2019 2018 2017 (In thousands) Americas $ 456,568 $ 361,136 $ 283,696 Europe 168,452 117,670 70,895 Asia Pacific 49,840 34,174 21,021 Total $ 674,860 $ 512,980 $ 375,612 Percentage of revenues generated outside of the Americas 32 % 30 % 24 % Revenue derived from customers outside the United States (international) was approximately 40% of total revenue in 2019, 37% of total revenue in 2018 and 33% of total revenue in 2017. Total long-lived assets by geographical region: As of December 31, 2019 As of December 31, 2018 (In thousands) Americas $ 175,821 $ 35,186 Europe 127,395 13,913 Asia Pacific 14,823 3,369 Total long lived assets $ 318,039 $ 52,468 Percentage of long lived assets held outside of the Americas 45 % 33 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 9. Commitments and Contingencies The Company leases its office facilities under non-cancelable operating leases that expire at various dates through May 2031. Rent expense for non-cancellable operating leases with free rental periods or scheduled rent increases is recognized on a straight-line basis over the terms of the leases. Improvement reimbursements from landlords of $16.0 million are being amortized on a straight-line basis into rent expense over the terms of the corresponding leases. Certain leases contain optional termination dates. The table below only includes payments up to the optional termination date. If the Company were to extended leases beyond the optional termination date the future commitments would increase by approximately $83.0 million. Rent expense was $32.9 million in 2019, $23.1 million in 2018, and $18.9 million in 2017. Future minimum payments under all operating and finance lease agreements as of December 31, 2019, are as follows: Operating Finance (in thousands) 2020 $ 42,466 $ 28 2021 48,935 — 2022 48,286 — 2023 47,893 — 2024 46,581 — Thereafter 178,558 — Total $ 412,719 28 Less: Portion representing interest — Finance lease obligation $ 28 As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, the future minimum payments under all operating and capital lease agreements as of December 31, 2018 are as follows: Operating Capital (in thousands) 2019 $ 27,755 $ 298 2020 33,769 33 2021 35,414 — 2022 35,314 — 2023 35,686 — Thereafter 184,341 — Total $ 352,279 331 Less: Portion representing interest (20 ) Finance lease obligation $ 311 The Company has entered into certain non-cancelable arrangements (“Vendor Commitments”), which require the future purchase of goods or services. Future minimum payments under all Vendor Commitments as of December 31, 2019, are as follows: Product related obligations INBOUND event obligations (in thousands) 2020 $ 18,750 $ 653 2021 12,500 653 2022 — 316 2023 — 653 2024 — — Total $ 31,250 $ 2,275 Legal Contingencies From time to time the Company may become involved in legal proceedings or be subject to claims arising in the ordinary course of its business. Although the results of litigation and claims cannot be predicted with certainty, the Company currently believes that the final outcome of these ordinary course matters will not have a material adverse effect on its business, operating results, financial condition or cash flows. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources and other factors. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | 10. Changes in Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated other comprehensive loss, which is reported as a component of stockholders’ equity, for the years ended December 31, 2019 and 2018: Cumulative Translation Adjustment Unrealized Gain (L oss) on Investments Total (in thousands) Beginning balance at January 1, 2018 $ 379 $ (436 ) $ (57 ) Other comprehensive (loss) income before reclassifications (776 ) 110 (666 ) Amounts reclassified from accumulated other comprehensive loss — — — Ending balance at December 31, 2018 $ (397 ) $ (326 ) $ (723 ) Other comprehensive (loss) income before reclassifications (213 ) 600 387 Amounts reclassified from accumulated other comprehensive loss — — — Ending balance at December 31, 2019 $ (610 ) $ 274 $ (336 ) |
Stockholders' Equity and Stock-
Stockholders' Equity and Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity And Stock Based Compensation [Abstract] | |
Stockholders' Equity and Stock-Based Compensation | 11. Stockholders’ Equity and Stock-Based Compensation Common Stock Reserved — As of December 31, 2019 and 2018, the Company has authorized 500 million shares of common stock. The number of shares of common stock reserved for the vesting of RSUs and exercise of common stock options are as follows (in thousands): December 31, 2019 December 31, 2018 RSUs 1,529 1,983 Common stock options 1,494 1,840 3,023 3,823 For shares reserved for issuance for the Conversion Option of the 2022 Notes and common stock warrants see Note 7. Equity Incentive Plan —The Company’s 2007 Equity Incentive Plan (the “2007 Plan”) was terminated in connection with the IPO, and accordingly, no shares are available for issuance under the 2007 Plan. The 2007 Plan will continue to govern outstanding awards grante d thereunder, t he 2007 Plan provided for the grant of qualified incentive stock options and nonqualified stock options or other awards such as RSUs to the Company’s employees, officers, directors and outside consultants. The term of each option is fixed by the Company’s compensation committee and may not exceed 10 years from the date of grant . As of December 31, 2019 , 1.0 million options to purchase common stock and no RSUs remained outstanding under the 2007 Plan. On September 25, 2014, the Company’s board of directors adopted and the Company’s stockholders approved the 2014 Stock Option and Incentive Plan (the “2014 Plan”). The 2014 Plan became effective upon the closing of the Company’s IPO in the fourth quarter of 2014. The Company initially reserved 1,973,551 shares of its common stock, or the Initial Limit, for the issuance of awards under the 2014 Plan. The 2014 Plan provides that the number of shares reserved and available for issuance under the plan automatically increases each January 1, beginning on January 1, 2015, by 5% of the outstanding number of shares of the Company’s common stock on the immediately preceding December 31 or such lesser number of shares as determined by the compensation committee. This number is subject to adjustment in the event of a stock split, stock dividend or other change in the Company’s capitalization. The term of each option is fixed by the Company’s compensation committee and may not exceed 10 years from the date of grant. As of December 31, 2019, 526 thousand options to purchase common stock and 1.5 million RSUs remained outstanding under the 2014 Plan. Equity Compensation Expense —The Company’s equity compensation expense is comprised of awards of options to purchase common stock, RSUs, and stock issued under the Company’s ESPP. The following two tables show stock compensation expense by award type and where the stock compensation expense is recorded in the Company’s consolidated statements of operations: Year Ended December 31, 2019 2018 2017 ( in thousands) Options $ 5,078 $ 5,108 $ 4,948 ESPP 4,866 2,833 1,233 RSUs 87,810 68,320 41,136 Total stock-based compensation $ 97,754 $ 76,261 $ 47,317 2019 2018 2017 (in thousands) Cost of revenue, subscription $ 3,127 $ 1,476 $ 658 Cost of revenue, service 2,829 2,924 2,327 Research and development 33,748 23,328 12,816 Sales and marketing 36,599 31,099 19,016 General and administrative 21,451 17,434 12,500 Total stock-based compensation $ 97,754 $ 76,261 $ 47,317 Excluded from stock-based compensation expense is $2.4 million of capitalized software development costs in 2019, $2.4 million in 2018, and $1.6 million in 2017. Stock Options —The fair value of employee options is estimated on the date of each grant using the Black-Scholes option-pricing model with the following assumptions: Year Ended December 31, 2019 2018 2017 Risk-free interest rate (%) 1.95-2.55 2.62-2.85 1.74-2.09 Expected term (years) 5.50-6.02 5.06-6.42 5.18-6.21 Volatility (%) 39.46-41.41 41.34-43.55 39.4-43.7 Expected dividends — — — The weighted-average grant-date fair value of options granted was $69.44 per share in 2019, $51.48 per share in 2018, and $24.56 per share in 2017. The interest rate was based on the U.S. Treasury bond rate at the date of grant with a maturity approximately equal to the expected term. The expected term of options granted to employees was calculated using the simplified method, which represents the average of the contractual term of the option and the weighted-average vesting period of the option. The expected volatility for the Company’s common stock was based on an average of the historical volatility of a peer group of similar public companies. The assumed dividend yield is based upon the Company’s expectation of not paying dividends in the foreseeable future. Forfeitures of share-based awards prior to vesting results in a reversal of previously recorded stock-compensation expense associated with such forfeited awards . Th e fair value of the Company’s common stock is the closing price of the stock on the date of grant. The stock option activity for the year ended December 31, 2019 is as follows: Options (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding—January 1, 2019 1,840 $ 23.89 4.6 $ 187,342 Granted 106 160.15 Exercised (416 ) 20.95 Forfeited/expired (36 ) 77.31 Outstanding—December 31, 2019 1,494 33.09 4.0 $ 187,398 Options vested or expected to vest—December 31, 2019 1,494 $ 33.09 4.0 $ 187,398 Options exercisable—December 31, 2019 1,294 $ 19.63 3.3 $ 179,688 Total unrecognized compensation cost related to the nonvested options was $8.6 million at December Restricted Stock Units —RSUs vest upon achievement of a service condition. The service condition is a time-based condition met over a period of four years, with 25% met after one year, and then in equal monthly or quarterly installments over the succeeding three years, or over a period of four years, with equal quarterly installments over those four years. As soon as practicable following each vesting date, the Company will issue to the holder of the RSUs the number of shares of common stock equal to the aggregate number of RSUs that have vested. Notwithstanding the foregoing, the Company may, in its sole discretion, in lieu of issuing shares of common stock to the holder of the RSUs, pay the holder an amount in cash equal to the fair market value of such shares of common stock. The service condition is a time-based condition met over a period of four years, with 25% met after one year, and then in equal monthly or quarterly installments over the succeeding three years, or over a period of four years, with equal quarterly installments over those four years. The total stock-based compensation expense expected to be recorded over the remaining life of outstanding RSUs is approximately $163.2 million at December 31, 2019. That cost is expected to be recognized over a weighted-average period of 2.6 years. As of December 31, 2019, there are 1.5 million RSUs expected to vest with an aggregate intrinsic value of $242.3 million. The total fair value of RSUs vested was approximately $85.2 in 2019, $65.0 million in 2018, and $48.6 million in 2017. The following table summarizes the activity related to RSUs for the year ended December 31, 2019: RSUs Outstanding Shares (in thousands) Weighted- Average Grant Date Fair Value Per Share Unvested and outstanding at January 1, 2019 1,983 $ 83.67 Granted 772 158.86 Vested (1,011 ) 84.34 Canceled (215 ) 95.64 Unvested and outstanding at December 31, 2019 1,529 $ 119.46 Employee Stock Purchase Plan (“ESPP”) — The ESPP authorizes the issuance of up to a total of 1,785,021 shares of common stock to participating employees and allows eligible employees to purchase shares of common stock at a 15% discount from the fair market value of the stock as determined on specific dates at six-month intervals. The offering periods for the ESPP commence on June 1 and November 1 of each year. The following table summarizes the activity related to ESPP: Shares Issued (in thousands) Weighted- Average Purchase Price Total Cash Proceeds (in thousands) 2019 116 $ 123.69 $ 14,383 2018 148 $ 80.21 $ 11,863 2017 94 $ 38.83 $ 3,635 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes Loss before provision for income taxes was as follows: Year Ended December 31, 2019 2018 2017 (in thousands) United States $ (63,200 ) $ (69,769 ) $ (54,894 ) Foreign 12,427 7,809 4,855 Total $ (50,773 ) $ (61,960 ) $ (50,039 ) The (provision) benefit for income taxes consists of the following: Year Ended December 31, 2019 2018 2017 (in thousands) Current income tax provision Federal $ (238 ) $ (184 ) $ — State (241 ) (140 ) (144 ) Foreign (3,293 ) (1,508 ) (1,077 ) Total current income tax provision (3,772 ) (1,832 ) (1,221 ) Deferred income tax benefit Federal 160 21 10,435 State — — 977 Foreign 639 (57 ) 134 Total deferred income tax benefit (expense) 799 (36 ) 11,546 Total income tax benefit (provision) $ (2,973 ) $ (1,868 ) $ 10,325 The following reconciles the differences between income taxes computed at the federal statutory rate of 21% Year Ended December 31, 2019 2018 2017 (in thousands) Expected income tax benefit at the federal statutory rate $ 10,665 $ 12,955 $ 17,166 State taxes net of federal benefit 3,700 5,155 5,150 Stock-based compensation 16,055 17,575 10,939 Executive compensation limitation (7,244 ) — — Difference in foreign tax rates 693 435 988 U.S. tax credits 24,170 1,763 1,717 Convertible debt and acquisition — — 11,573 Federal rate change — — (49,123 ) Transition tax — — (1,063 ) GILTI inclusion (1,645 ) (1,177 ) — Meals and entertainment (1,208 ) (1,411 ) (745 ) Change in valuation allowance (47,523 ) (37,059 ) 13,988 Other (636 ) (104 ) (265 ) Income tax benefit (provision) $ (2,973 ) $ (1,868 ) $ 10,325 On December 22, 2017, the United States of America signed tax legislation (the “2017 Act”) which enacted a wide range of changes to the U.S. corporate income tax system. The 2017 Act reduced the U.S. corporate tax rate from 35% to 21% effective January 1, 2018, broadened the tax base and changes rules for expensing and capitalizing business expenditures, established a territorial tax system for foreign earnings as well as a minimum tax on certain foreign earnings, provided for a one-time transition tax on previously undistributed foreign earnings, and introduced new rules for the treatment of certain export sales. The Company recorded provisional estimates for the impact of the 2017 Act during the period ended December 31, 2017 and completed the accounting in 2018 without any significant adjustments to the provisional estimates. Deferred Tax Assets and Liabilities —Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities were as follows: Year Ended December 31, 2019 2018 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 142,512 $ 118,897 Research and investment credits 35,285 11,154 Accruals and reserves 9,239 7,734 Depreciation 1,756 1,119 Stock-based compensation 5,451 5,404 Interest expense 3,197 2,466 Total deferred tax assets 197,440 146,774 Deferred tax liabilities: Intangible assets (2,678 ) (1,002 ) Convertible debt (3,550 ) (4,675 ) Capitalized costs (11,351 ) (8,002 ) Depreciation (138 ) — Total deferred tax liabilities (17,717 ) (13,679 ) Valuation allowance (180,092 ) (132,759 ) Net deferred tax assets $ (369 ) $ 336 The Company reviews all available evidence to evaluate the realizability of its deferred tax assets, including its recent history of accumulated losses over the most recent three years as well as its ability to generate income in future periods. The Company has provided a valuation allowance against its U.S. net deferred tax assets as it is more likely than not that these assets will not be realized given the nature of the assets and the likelihood of future utilization. The valuation allowance increased by $47.3 million in 2019, $36.1 million in 2018 and $5.5 million in 2017, primarily due to the increase in the U.S. net operating loss deferred tax asset. The Company does not expect any significant changes in its valuation allowance positions within the next 12 months. Prior to the 2017 Act, the Company had asserted that the earnings of its foreign subsidiaries were indefinitely reinvested in the operations of those subsidiaries. In 2018, the Company completed its accounting for the impact of the 2017 Act and determined that it would no longer assert indefinite reinvestment of its foreign earnings. Earnings through December 31, 2017 have been subject to U.S. federal income tax via the one-time transition tax on previously undistributed foreign earnings. The foreign earnings for the years ended December 31, 2019 and 2018 have been subject to U.S. federal income tax via the Global Intangible Low-Taxed Income (“GILTI”) provision. The Company has determined that any incremental tax incurred upon ultimate distribution of these earnings to the U.S. would not be material. The Company had federal and state net operating loss carryforwards of $947 million at December 31, 2019 and $781 million at December 31, 2018. The Company also had international net operating loss carryforwards of $6 million at December 31, 2019. As a result of the 2017 Act all federal net operating losses, created after January 1, 2018, have an indefinite carryforward period. All federal net operating losses, created before January 1, 2018, are subject to a 20 year carryforward period and will expire at various dates through 2037. State net operating losses will expire at various dates through 2039. The Company has a federal interest expense carryforward of $13.0 million at December 31, 2019, and $10.0 million at December 31, 2018, which have an indefinite carryforward period. The Company had federal research and development credit carryforwards of $23.0 million at December 31, 2019 that expire at various dates through 2039. The Company also has state research and investment tax credit carryforwards of $12.2 million, that expire at various dates through 2034. Under Section 382 of the Internal Revenue Code of 1986, as amended, substantial changes in the Company's ownership may limit the amount of net operating loss carryforwards that could be utilized annually in the future to offset taxable income. Specifically, this limitation may arise in the event of a cumulative change in ownership of the Company of more than 50% within a three-year period. Any such annual limitation may significantly reduce the utilization of net operating loss carryforwards before they expire. The Company performed an analysis through December 31, 2018 and determined any potential ownership change under Section 382 during the year would not have a material impact on the future utilization of US net operating losses and tax credits. There was no material change to this conclusion in 2019. However, future transactions in the Company's common stock could trigger an ownership change for purposes of Section 382, which could limit the amount of net operating loss carryforwards and other attributes that could be utilized annually in the future to offset taxable income, if any. Any such limitation, whether as the result of sales of common stock by our existing stockholders or sales of common stock by the Company, could have a material adverse effect on results of operations in future years. Uncertain Tax Positions —The Company accounts for uncertainty in income taxes using a two-step process. The Company first determines whether it is more likely than not that a tax position will be sustained upon examination by a tax authority, including resolutions of any related appeals or litigation processes, based on technical merit. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The following summarizes activity related to unrecognized tax benefits: Year Ended December 31, 2019 2018 2017 (in thousands) Unrecognized benefit—beginning of the year $ 3,925 $ 2,725 $ 1,742 Gross increases—current period positions 2,387 1,200 983 Gross decrease—prior period positions (867 ) — — Unrecognized benefit—end of period $ 5,445 $ 3,925 $ 2,725 All of the gross unrecognized tax benefits represent a reduction to the research and development tax credit carryforward. The gross decrease to prior period positions is a result of the Company completing its documentation of credits generated between 2015 and 2018. All of the unrecognized tax benefits decrease deferred tax assets with a corresponding decrease to the valuation allowance. None of the unrecognized tax benefits would affect the Company’s effective tax rate if recognized in the future. The Company has elected to recognize interest and penalties related to uncertain tax positions as a component of income tax expense. No interest or penalties have been recorded through December 31, 2019 because the Company has no tax due because of significant NOL carryforwards. The Company does not expect any significant change in its unrecognized tax benefits within the next 12 months. The Company files tax returns in the United States and various jurisdictions throughout the world where the Company has operations or established a taxable presence. All of the Company’s tax years remain open to examination in the United States, as carryforward attributes generated in past years may still be adjusted upon examination by the Internal Revenue Service or state tax authorities if they have or will be used in future periods. The Company remains open to examination for varying periods in the other foreign jurisdictions and is routinely examined by various taxing authorities. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plan | 13. Employee Benefit Plan The Company maintains a defined contribution savings plan under Section 401(k) of the Internal Revenue Code. This plan covers certain employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pretax basis, subject to legal limitations. Total employer contributions were $4.8 million in 2019, $4.0 million in 2018, and $2.9 million in 2017. |
Quarterly Financial Results (un
Quarterly Financial Results (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Results (unaudited) | 14. Quarterly Financial Results (unaudited) Fourth Quarter Third Quarter Second Quarter First Quarter (in thousands, except per share amounts) Year ended December 31, 2019 Revenue $ 186,186 $ 173,621 $ 163,255 $ 151,798 Cost of revenue 35,975 33,263 31,142 29,578 Gross profit 150,211 140,358 132,113 122,220 Net loss (10,302 ) (14,987 ) (17,357 ) (11,100 ) Basic and diluted net loss per share $ (0.24 ) $ (0.35 ) $ (0.41 ) $ (0.27 ) Year ended December 31, 2018 Revenue $ 144,022 $ 131,826 $ 122,576 $ 114,556 Cost of revenue 27,364 25,765 24,851 22,377 Gross profit 116,658 106,061 97,725 92,179 Net loss (11,492 ) (18,663 ) (18,225 ) (15,448 ) Basic and diluted net loss per share $ (0.29 ) $ (0.48 ) $ (0.48 ) $ (0.41 ) |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation —The consolidated financial statements have been prepared in U.S. dollars, in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates —The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Operating Segments | Operating Segments —The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is regularly evaluated by the chief operating decision makers (“CODMs”), which are the Company’s chief executive officer and chief operating officer, in deciding how to allocate resources and assess performance. The Company’s CODMs evaluate the Company’s financial information and resources and assess the performance of these resources on a consolidated basis. Since the Company operates in one operating segment, all required financial segment information can be found in the consolidated financial statements. |
Loss Per Share | Loss Per Share — Basic net loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period. Diluted net loss per share is computed by giving effect to all potential dilutive common stock equivalents outstanding for the period. For purposes of this calculation, options to purchase common stock, restricted stock units (“RSUs”), the shares issuable under the Employee Stock Purchase Plan (“ESPP”), and the Conversion Option and warrants of the 2022 Notes are considered to be potential common stock equivalents. A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows: Year Ended December 31, 2019 2018 2017 (in thousands, except per share amounts) Net loss $ (53,746 ) $ (63,828 ) $ (39,714 ) Weighted-average common shares outstanding—basic 42,025 38,529 36,827 Dilutive effect of share equivalents resulting from stock options, RSUs, ESPP, Conversion Option and warrants of the 2022 Notes — — — Weighted-average common shares outstanding-diluted 42,025 38,529 36,827 Net loss per common share, basic and diluted $ (1.28 ) $ (1.66 ) $ (1.08 ) Since the Company incurred net losses for each of the periods presented, diluted net loss per share is the same as basic net loss per share. The Company’s outstanding stock options, RSUs, shares issuable under the ESPP, and Conversion Option and Warrants of the 2022 Notes were not included in the calculation of diluted net loss per share as the effect would be anti-dilutive. The following table contains all potentially dilutive common stock equivalents. Year Ended December 31, 2019 2018 2017 (in thousands) Options to purchase common shares 1,489 1,824 2,085 RSUs 1,207 1,732 2,315 Conversion option and warrants of the 2022 Notes 3,104 1,211 — ESPP 2 — 10 The Company expects to settle the principal amount of the 2022 Notes (Note 7) in cash, and therefore, the Company uses the treasury stock method for calculating any potential dilutive effect of the Conversion Option on diluted net income per share, if applicable. The Conversion Option will have a dilutive impact on net income per share when the average market price of the Company’s common stock for a given period exceeds the conversion price of the 2022 Notes of $94.77 per share. . |
Cash and Cash Equivalents | Cash and Cash Equivalents — The Company considers all highly liquid investments purchased with original maturity of three months or less to be cash equivalents. Cash and cash equivalents consist of cash held in bank deposit accounts and short-term, highly-liquid investments with remaining maturities of three months or less at the date of purchase, consisting primarily of money-market funds. |
Investments | Investments — Investments consist of commercial paper, corporate debt securities and U.S. Treasury securities. Securities having remaining maturities of more than three months at the date of purchase and less than one year from the date of the balance sheets are classified as short-term, and those with maturities of more than one year from the date of the balance sheet are classified as long-term in the consolidated balance sheets. The Company classifies its debt investments with readily determinable market values as available-for-sale. These investments are classified as investments on the consolidated balance sheets and are carried at fair market value, with unrealized gains and losses considered to be temporary in nature reported as accumulated other comprehensive loss, a separate component of stockholders’ equity. The Company reviews all investments for reductions in fair value that are other-than-temporary. When such reductions occur, the cost of the investment is adjusted to fair value through recording a loss on investments in the consolidated statements of operations. Gains and losses on investments are calculated on the basis of specific identification. Investments are considered to be impaired when a decline in fair value below cost basis is determined to be other-than-temporary. The Company periodically evaluates whether a decline in fair value below cost basis is other-than-temporary by considering available evidence regarding these investments including, among other factors: the duration of the period that, and extent to which, the fair value is less than cost basis; the financial health of, and business outlook for the issuer, including industry and sector performance and operational and financing cash flow factors; overall market conditions and trends and the Company’s intent and ability to retain its investment in the security for a period of time sufficient to allow for an anticipated recovery in market value. Once a decline in fair value is determined to be other-than-temporary, a write-down is recorded and a new cost basis in the security is established. |
Strategic Investments | Strategic investments — Strategic investments consist of non-controlling equity investments in privately held companies. These investments without readily determinable fair values for which the Company does not have the ability to exercise significant influence are accounted for using the measurement alternative. Under the measurement alternative, the non-marketable securities are carried at cost less any impairments, plus or minus adjustments resulting from observable price changes in orderly transactions for identical or similar investments of the same issuer. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts — Accounts receivable are carried at the original invoiced amount less an allowance for doubtful accounts based on the probability of future collection. The probability of future collection is based on specific considerations of historical loss patterns and an assessment of the continuation of such patterns based on past collection trends and known or anticipated future economic events that may impact collectability. The probability of future collection is also assessed by geography. To date, losses resulting from uncollected receivables have not exceeded management’s expectations. The following is a roll forward of the Company’s allowance for doubtful accounts (in thousands): Balance Beginning of Period Charged to Statement of Operations Deductions (1) Balance at End of Period Allowance for doubtful accounts Year ended December 31, 2019 $ 1,317 $ 7,895 $ (7,628 ) $ 1,584 Year ended December 31, 2018 $ 638 $ 5,514 $ (4,835 ) $ 1,317 Year ended December 31, 2017 $ 617 $ 3,353 $ (3,332 ) $ 638 (1) Deductions include actual accounts written-off, net of recoveries. |
Restricted Cash | Restricted Cash —The Company had restricted cash of $8.8 million at December 31, 2019 and $5.6 million at December 31, 2018 related to letters of credit for it leased facilities. The following table provides a reconciliation of the cash, cash equivalents and restricted cash within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows for the year ended December 31, 2019 and 2018. December 31, 2019 December 31, 2018 (in thousands) Cash and cash equivalents $ 269,670 $ 111,489 Restricted cash 5,816 5,175 Restricted cash included in other assets 3,029 450 Total cash, cash equivalents, and restricted cash $ 278,515 $ 117,114 |
Property and Equipment | Property and Equipment —Property and equipment are stated at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. Expenditures for maintenance and repairs are charged to expense as incurred, whereas major betterments are capitalized as additions to leasehold improvements. Depreciation is recorded over the following estimated useful lives: Estimated Useful Life Employee related computer equipment 2 - 3 years Computer equipment and purchased software 3 years Furniture and fixtures 5 years Internal use software 5 years Leasehold improvements Lesser of lease The Company capitalizes certain payroll and stock compensation costs incurred to develop functionality for certain of the Company’s internally built software platforms. The costs incurred during the preliminary stages of development are expensed as incurred. Once a piece of incremental functionality has reached the development stage certain internal costs are capitalized until the functionality is ready for its intended use. Internal use software is included within property and equipment on the balance sheet. The costs are generally amortized on a straight-line basis over an estimated useful life of approximately five years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets — Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable or that the useful lives of those assets are no longer appropriate. Management considers the following potential indicators of impairment of its long-lived assets (asset group): a substantial decrease in the Company’s stock price, a significant adverse change in the extent or manner in which a long-lived asset (asset group) is being used, a significant adverse change in legal factors or in the business climate that could affect the value of the long-lived asset (asset group), an accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group), and a current expectation that, more likely than not, a long lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. When such events occur, the Company compares the carrying amounts of the assets to their undiscounted expected future cash flows. If this comparison indicates that there may be an impairment, the amount of the impairment is calculated as the difference between the carrying value and fair value. For the years presented, the Company did not recognize an impairment charge. |
Intangible Assets | Intangible Assets — Intangible assets consist of acquired technology, trade name and customer relationships. The Company records acquired intangible assets at fair value on the date of acquisition and amortize such assets in a pattern reflective of the expected economic benefits consumption over the expected useful life of the asset. If this pattern cannot be reliably determined, a straight-line amortization method is used. The estimated useful life of acquired technology is two to seven years and is based on the period over which economic benefits will be derived from each acquired intangible asset. The Company evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. If the estimate of an intangible asset’s remaining useful life is changed, the remaining carrying value of the intangible asset is amortized prospectively over the revised remaining useful life. |
Goodwill | Goodwill —Goodwill represents the excess of cost over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Goodwill is not subject to amortization but is monitored annually for impairment or more frequently if there are indicators of impairment. Management considers the following potential indicators of impairment: significant underperformance relative to historical or projected future operating results, significant changes in the Company’s use of acquired assets or the strategy of the Company’s overall business, significant negative industry or economic trends and a significant decline in the Company’s stock price for a sustained period. The Company performs its annual impairment test on November 30. Currently, the Company’s goodwill is evaluated at the entity level as it has been determined there is one reporting unit. When assessing goodwill for impairment the Company first performs a qualitative assessment to determine whether it is necessary to perform the two-step quantitative analysis. If the Company determines it is unlikely that the reporting unit fair value is less than its carrying value then no two-step impairment test is performed. If the Company cannot determine that it is likely that the reporting unit fair value is more than its carrying value, then the Company performs a two-step impairment test. Based on the qualitive assessment performed on November 30, 2019, the Company determined it was unlikely that it’s reporting unit fair value was less than its carrying value and no two-step impairment test was required. There were no indicators that the Company’s goodwill had become impaired since that date, and as such, there was no impairment of goodwill as of November 30, 2019 or December 31, 2019 . For the years ended December 31, 2019, 2018 and 2017, the Company did not recognize an impairment charge. |
Business Combinations | Business Combinations — The Company uses its best estimates and assumptions to assign fair value to the assets acquired and liabilities assumed. Significant judgment is used in determining fair values of assets acquired and liabilities assumed, as well as intangible assets and their estimated useful lives. Fair value and useful life determinations are based on, among other factors, estimates of future expected cash flows attributable to the acquired intangible assets and appropriate discount rates used in computing present values. Goodwill represents the excess of the purchase price over the estimated fair values of the assets acquired and liabilities assumed. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to 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. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statement of operations. |
Advertising Expense | Advertising Expense —The Company expenses advertising as incurred, which is included in sales and marketing expense in the accompanying consolidated statements of operations. The Company incurred $14.9 million of advertising expense in 2019, $8.4 million in 2018, and $5.5 million in 2017. |
Leases | Leases — On January 1, 2019, the Company adopted the new lease guidance using a modified retrospective transition method applied to those leases which were not completed as of January 1, 2019. The Company leases office facilities under non-cancelable operating leases that expire at various dates through May 2031 and leases office equipment under a non-cancelable finance lease that expires in March 2020. Certain operating leases contain optional termination dates, and the Company is not reasonably certain to extend its lease agreements beyond those dates. The Company determines if an arrangement contains a lease at inception and does not separate lease and non-lease components of an arrangement determined to contain a lease. Operating leases are included in right-of-use (“ROU”) assets, current operating lease liabilities and operating lease liabilities, net of current portion, on the Company’s consolidated balance sheet. Finance leases are included in property and equipment, net, accrued expenses, and other current liabilities on the Company’s consolidated balance sheet. Operating and finance leases with a duration of less than 12 months are excluded from right-of-use-assets and operating lease liabilities and related expense is recorded as incurred. ROU assets represent the Company's right to use an underlying asset for the lease term and the corresponding lease liabilities represent its obligation to make lease payments arising from the lease. Lease ROU assets and lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the lease commencement date. The lease ROU asset includes any initial direct costs incurred and is reduced for tenant incentives. As the Company’s operating leases do not provide an implicit rate, the net present value of future minimum lease payments is determined using the Company’s incremental borrowing rate. Lease expense for minimum lease payments for operating leases are recognized on a straight-line basis over the lease term. Finance leases use the effective interest method to record expense which results in a front-loaded expense recognition pattern. The following table provides a summary of lease assets and liabilities as of December 31, 2019: Leases Balance sheet classification Amount (in thousands) Assets: Operating lease assets Right-of-use assets $ 234,390 Finance lease assets Fixed assets 68 Total leased assets $ 234,458 Liabilities: Current Operating lease liabilities Lease liabilities $ 23,613 Finance lease liabilities Accrued expenses and other current liabilities 28 Noncurrent Operating Lease liabilities, net of current portion 244,216 Total lease liabilities $ 267,857 Operating lease expense costs was $32.2 million for 2019, net of $2.5 million of operating sublease income related to certain office facilities subleased to third parties. Finance lease costs consisted of $0.2 million related to the amortization finance lease assets and $0.1 million of interest expense for 2019. The following table provides a reconciliation between non-cancelable lease commitments and lease liabilities as of December 31, 2019 : Operating leases Finance Leases Lease commitments (Note 9) $ 412,719 $ 28 Less: Legally binding minimum lease payments for leases signed but not yet commenced (70,928 ) — Less: Present value discount (73,962 ) — Total lease liabilities $ 267,829 $ 28 Certain leases contain optional termination dates. If the Company were to extend leases beyond the optional termination date, the future commitments would increase by approximately $83.0 million. Lease Term and Discount Rate The Company uses its estimated incremental borrowing rate, which is derived from information available at the lease commencement date, in determining the present value of operating lease payments. To determine the estimated incremental borrowing rate, the Company uses publicly available credit ratings for peer companies. The Company estimates the incremental borrowing rate using yields for maturities that are in line with the duration of the lease payments. The following table provides weighted average remaining lease terms and weighted average discount rate for operating and finance leases as of December 31, 2019 Weighted-average remaining lease term: Operating leases 9.2 years Finance leases 0.25 years Weighted-average discount rate: Operating leases 5.6% Finance leases 3.8% Other Information In 2019, c ash payments were $28.8 million for operating lease liabilities and $0.3 million for finance lease liabilities Asset retirement obligations (“ARO”) On the lease commencement date the Company establishes an ARO based on the present value of contractually required estimated future costs to retire long-lived assets at the termination or expiration of a lease. The asset associated with the ARO is amortized over the corresponding lease term to operating expense and the ARO is accreted to the end of lease obligation value over the same term. The changes in the ARO balance during the year ending December 31, 2019 and December 31, 2018 are as follows: Year Ended December 31, 2019 2018 (in thousands) Beginning balance $ 1,424 $ 1,191 Additions 2,028 459 Accretion 103 92 Updates to estimated cash flows (22 ) (318 ) Ending balance $ 3,533 $ 1,424 |
Revenue Recognition | Revenue Recognition — The Company generates revenue from arrangements with multiple performance obligations, which typically include subscriptions to its online software products and professional services which include on-boarding and training services. The Company’s customers do not have the right to take possession of the online software products. The Company recognizes revenue from contracts with customers using a five-step model, which is described below: • Identify the customer contract; • Identify performance obligations that are distinct; • Determine the transaction price; • Allocate the transaction price to the distinct performance obligations; and • Recognize revenue as the performance obligations are satisfied. Identify the customer contract A customer contract is generally identified when the Company and a customer have executed an arrangement that calls for the Company to grant access to its online software products and provide professional services in exchange for consideration from the customer. Identify performance obligations that are distinct A performance obligation is a promise to provide a distinct good or service or a series of distinct goods or services. A good or service that is promised to a customer is distinct if the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and a company’s promise to transfer the good or service to the customer is separately identifiable from other promises in the contract. The Company has determined that subscriptions for its online software products are distinct because, once a customer has access to the online software product that it purchased, the online software product is fully functional and does not require any additional development, modification, or customization. Professional services sold are distinct because the customer benefits from the on-boarding and training to make better use of the online software products it purchased. Determine the transaction price The transaction price is the amount of consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer, excluding sales taxes that are collected on behalf of government agencies. The Company estimates any variable consideration to which it will be entitled at contract inception, and reassesses at each reporting date, when determining the transaction price. The Company does not include variable consideration to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will occur when any uncertainty associated with the variable consideration is resolved. Allocate the transaction price to the distinct performance obligations The transaction price is allocated to each performance obligation based on the relative standalone selling prices (“SSP”) of the goods or services being provided to the customer. The Company determines the SSP of its goods and services based upon the average sales prices for each type of online software product and professional services sold. In instances where there are not sufficient data points, or the selling prices for a particular online software product or professional service are disparate, the Company estimates the SSP using other observable inputs, such as similar products or services. Recognize revenue as the performance obligations are satisfied Revenues are recognized when or as control of the promised goods or services is transferred to customers. Revenue from online software products Solutions Partner Commissions The Company pays its Solutions Partners a commission based on the online software product sales price for sales to end-customers. The classification of the commission paid in the Company’s consolidated statements of operations depends on who purchases the online software product. In instances where an end-customer purchases from the Company, the commission paid to the Solutions Partner Disaggregation of Revenue The Company provides disaggregation of revenue based on geographic region (Note 9) and based on the subscription versus professional services and other classification on the consolidated statements of operations as it believes these best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. Deferred Revenue and Deferred Commission Expense Amounts that have been invoiced are recorded in accounts receivable and deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. Deferred revenue represents amounts billed for which revenue has not yet been recognized. Deferred revenue that will be approximately $178.4 million roximately 94% of these Additional contract liabilities $1.4 million and $1.6 million were included in accrued expenses and other current liabilities as of December 31, 2019 and December 31, 2018. The incremental direct costs of obtaining a contract, which primarily consist of sales commissions paid for new subscription contracts, are deferred and amortized on a straight-line basis over a period of approximately one to three years. The one to three-year period has been determined by taking into consideration the type of product sold, the commitment term of the customer contract, the nature of the Company’s technology development life-cycle, and an estimated customer relationship period. Sales commissions for upgrade contracts are deferred and amortized on a straight-line basis over the remaining estimated customer relationship period of the related customer. Deferred commission expense that will be recorded as expense during the succeeding 12-month period is recorded as current deferred commission expense, and the remaining portion is recorded as long-term deferred commission expense. Deferred commission expense during the year ended December 31, 2019 increased by $9.4 million as a result of deferring incremental costs of obtaining a contract of $42.2 million and was offset by amortization of $32.8 million |
Concentrations of Credit Risk and Significant Customers | Concentrations of Credit Risk and Significant Customers —Financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash, investments and accounts receivable. The Company's cash and cash equivalents are generally held with large financial institutions. Although the Company's deposits may exceed federally insured limits, the financial institutions that the Company uses have high investment-grade credit ratings and, as a result, the Company believes that, as of December 31, 2019, its risk relating to deposits exceeding federally insured limits was not significant. The Company’s investments consist of highly rated corporate debt securities and U.S. Treasury securities . The Company limits the amount of investments in any single issuer, except U.S. Treasuries. The Company believes that, as of December 31, 2019, its concentration of credit risk related to investments was not significant. The Company has no significant off-balance sheet risk such as foreign exchange contracts, option contracts, or other hedging arrangements. The Company generally does not require collateral from its customers and generally requires payment 30 days from the invoice date. The Company maintains an allowance for doubtful accounts based on its assessment of the collectability of accounts receivable. Credit risk arising from accounts receivable is mitigated as a result of transacting with a large number of geographically dispersed customers spread across various industries. At December 31, 2019 and 2018, there were no customers that represented more than 10% of the net accounts receivable balance. There were no customers that individually exceeded 10% of the Company’s revenue in any of the periods presented. |
Foreign Currency | Foreign Currency —The functional currency of the Company’s foreign subsidiaries is the local currency. Assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rates in effect at the balance sheet dates, with the resulting translation adjustments directly recorded to a separate component of accumulated other comprehensive loss. Income and expense accounts are translated at the weighted-average exchange rates during the period. Foreign currency transaction gains and losses are recorded in other expense. |
Research and Development | Research and Development —Research and development expenses include payroll, employee benefits and other expenses associated with product development. |
Capitalized Software Development Costs | Capitalized Software Development Costs —Certain payroll and stock compensation costs incurred to develop functionality for the Company’s software and internally built software platforms, as well as certain upgrades and enhancements that are expected to result in enhanced functionality are capitalized. The costs incurred in the preliminary stages of development are expensed as incurred. Once an application has reached the development stage, the Company capitalizes certain software development costs for new offerings as well as upgrades to existing software platforms. Capitalized software development costs are amortized on a straight-line basis over their estimated useful life of two to five years. Management evaluates the useful lives of these assets on a quarterly basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. The Company determines the amount of internal software costs to be capitalized based on the amount of time spent by the developers on projects in the application stage of development. There is judgment involved in estimating time allocated to a particular project in the application stage. Costs associated with building or significantly enhancing the Growth Platform and internally built software platforms are capitalized, while costs associated with planning new developments and maintaining the Growth Platform software and internally built software platforms are expensed as incurred. Capitalized software development costs, exclusive of those costs recorded within property and equipment, consisted of the following: December 31, 2019 December 31, 2018 (in thousands) Gross capitalized software development costs $ 61,641 $ 46,169 Accumulated amortization (44,848 ) (33,423 ) Capitalized software development costs, net $ 16,793 $ 12,746 The Company capitalized software development costs, exclusive of costs recorded within property and equipment, of $15.5 million in 2019, $12.8 million in 2018, and $8.2 million in 2017. Stock-based compensation costs included in capitalized software were $2.1 million in 2019, $2.4 million in 2018, and $1.6 million in 2017 . Amortization of capitalized software development costs, exclusive of costs recorded within property and equipment, was $11.6 million in 2019, $9.2 million in 2018, and $6.3 million in 2017. Amortization expense is included in cost of revenue in the consolidated statements of operations. |
Income Taxes | Income Taxes —Deferred tax assets and liabilities are recognized for the differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities using tax rates expected to be in effect in the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. Accounting for uncertainty in income taxes recognized in the financial statements is in accordance with accounting authoritative guidance, which prescribes a two-step process to determine the amount of tax benefit to be recognized. First, the tax position must be evaluated to determine the likelihood that it will be sustained upon external examination. If the tax position is deemed “more-likely-than-not” to be sustained, the tax position is then assessed to determine the amount of benefit to recognize in the financial statements. The amount of the benefit that may be recognized is the largest amount that has a greater than 50 percent likelihood of being realized upon ultimate settlement. |
Stock-Based Compensation | Stock-Based Compensation — The Company accounts for all stock options and awards granted to employees and nonemployees using a fair value method. Stock-based compensation is recognized as an expense and is measured at the fair value of the award. The measurement date for awards is generally the date of the grant. For stock options, the Black-Scholes option pricing model is used to measure the fair value of the grant. Stock-based compensation costs are recognized as expense over the requisite service period, which is generally the vesting period for awards, on a straight-line basis. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements — Recent accounting standards not included below are not expected to have a material impact on our consolidated financial position and results of operations. Accounting Pronouncements Adopted in 2018: On January 1, 2018, the Company adopted new revenue guidance using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after December 31, 2017 are presented under the new guidance, while prior period amounts are not adjusted and continue to be reported in accordance with historic revenue guidance. The Company recorded a net increase to opening retained earnings of $5.5 million as of January 1, 2018 due to the cumulative impact of adopting the new revenue guidance, with the impact primarily related to the recognition of costs associated with obtaining customer contracts. The Company had previously recorded a net increase of $5.8 million to opening retained earnings as of January 1, 2018 to reflect the adoption of the new revenue guidance and an additional $274 thousand adjustment to the initial opening retained earnings adjustment to account for the deferred tax impact of the adoption of the new revenue standard. The resulting impact to the consolidated statements of operations and comprehensive loss of applying the new guidance for the year ended December 31, 2018 versus the prior guidance was a decrease to subscription revenue of $613 thousand, an increase to professional services and other revenue of $372 thousand, a decrease to total revenues of $241 thousand, and a decrease to selling and marketing expense and total operating expenses of $16.7 million for the year ended December 31, 2018, and a decrease to income tax (expense) benefit of $168 thousand. The resulting impact to loss from operations and loss before income tax (expense) benefit was $16.5 million. The resulting impact to net loss and comprehensive loss was $16.7 million. The resulting impact on basic earnings per share was $0.43. The resulting impact to the consolidated balance sheet of applying the new guidance in 2018 versus the prior guidance was a increase to short-term deferred commissions and total current assets of $4.1 million, an increase to long-term deferred commissions of $ 18.1 million, a decrease to other assets of $ 98 thousand, an increase in total assets of $ 22.1 million, a decrease to short-term deferred revenue, and total current liabilities of $ 89 thousand, an increase to other liabilities of $ 8 thousand, a decrease to total liabilities of $ 81 thousand, a decrease to accumulated deficit and increase to total stockholders’ equity of $ 22.2 million, and an increase to total liabilities and stockholders’ equity of $ 22.1 million. There was no impact to total cash flow from operations of applying the new guidance in 2018 versus the prior guidance because the decrease in net loss of $ 16.7 million, increase in the change in deferred commission expense of $ 16.7 million, increase in the change in deferred revenue of $ 0.2 million, and decrease in deferred taxes of $ 0.2 million net to $ 0 within cash flows from operations. Recent Accounting Pronouncements Adopted in 2019: In June 2018, the Financial Accounting Standards Board (“FASB”) issued guidance for stock-based compensation to include share-based payment transactions for acquiring goods and services from nonemployees. The guidance was adopted on January 1, 2019 and did not have a material impact on the consolidated financial statements. On January 1, 2019, the Company adopted the lease guidance using a modified retrospective transition method applied to those leases which were not completed as of January 1, 2019. Results for reporting periods beginning after December 31, 2018 are presented under the new guidance, while prior period comparative amounts are not adjusted and continue to be reported in accordance with historical guidance. The Company applied the new standard using the package of practical expedients permitted under the transition guidance where the Company: • did not reassess whether any expired or existing contracts contain a lease; • did not reassess the classification of existing leases; and • did not reassess initial direct costs for any existing leases. In addition, the Company elected the hindsight practical expedient to determine the lease term for existing leases. The resulting impact, as of the adoption date, to the consolidated balance sheet of applying the new guidance in 2019 versus the prior guidance was an increase to right-of-use assets of $152.2 million, a decrease to other assets of $0.3 million, an increase to total assets of $151.9 million, an increase to short-term lease liabilities of $14.1 million, a decrease to accrued expenses and other current liabilities of $0.5 million, an increase to total current liabilities of $13.5 million, an increase to long-term lease liabilities of $164.8 million, a decrease to deferred rent, net of current portion of $26.4 million and an increase to total liabilities of $151.9 million. There was no impact to stockholders’ equity or the consolidated statements of operations as a result of adopting the new guidance. There was no impact to total operating or financing cash flows of applying the new guidance in 2019 versus the prior guidance other than renaming or adding items to the statements of cash flows to conform to the accounting for, and presentation of, the new standard. Recent Accounting Pronouncements to be Adopted in 2020: In January 2017, the FASB issued guidance simplifying the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test. Under current guidance, Step 2 of the goodwill impairment test requires entities to calculate the implied fair value of goodwill in the same manner as the amount of goodwill recognized in a business combination by assigning the fair value of a reporting unit to all of the assets and liabilities of the reporting unit. The carrying value in excess of the implied fair value is recognized as goodwill impairment. Under the new guidance, goodwill impairment is recognized based on Step 1 of the current guidance, which calculates the carrying value in excess of the reporting unit’s fair value. The guidance will be effective for the Company on January 1, 2020. The Company does not believe the adoption of this guidance will have a material impact on the consolidated financial statements. In June 2016, the FASB issued guidance that introduces a new methodology for accounting for credit losses on financial instruments. The guidance establishes a new forward-looking "expected loss model" that requires entities to estimate current expected credit losses on accounts receivable and financial instruments by using all practical and relevant information. The guidance will be effective for the Company on January 1, 2020. Adoption of the guidance will be applied using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date. The Company does not believe the adoption of this guidance will have a material impact on the consolidated financial statements. Recent Accounting Pronouncements to be Adopted in 2021: In December 2019, the FASB issued guidance simplifying the accounting for incomes taxes by removing the exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items, the exception to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment, and the exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The guidance also improves consistent application of and simplifies GAAP for other areas of Topic 740 , Income Taxes . This guidance will be effective for the Company on January 1, 2021 , with early adoption permitted . The Company is currently evaluating the impact of this guidance on the consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Reconciliation of Denominator Used in Calculation of Basic and Diluted Loss Per Share | A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows: Year Ended December 31, 2019 2018 2017 (in thousands, except per share amounts) Net loss $ (53,746 ) $ (63,828 ) $ (39,714 ) Weighted-average common shares outstanding—basic 42,025 38,529 36,827 Dilutive effect of share equivalents resulting from stock options, RSUs, ESPP, Conversion Option and warrants of the 2022 Notes — — — Weighted-average common shares outstanding-diluted 42,025 38,529 36,827 Net loss per common share, basic and diluted $ (1.28 ) $ (1.66 ) $ (1.08 ) |
Schedule of Potentially Dilutive Common Stock Equivalents | The following table contains all potentially dilutive common stock equivalents. Year Ended December 31, 2019 2018 2017 (in thousands) Options to purchase common shares 1,489 1,824 2,085 RSUs 1,207 1,732 2,315 Conversion option and warrants of the 2022 Notes 3,104 1,211 — ESPP 2 — 10 |
Schedule of Roll Forward of Company's Allowance for Doubtful Accounts | The following is a roll forward of the Company’s allowance for doubtful accounts (in thousands): Balance Beginning of Period Charged to Statement of Operations Deductions (1) Balance at End of Period Allowance for doubtful accounts Year ended December 31, 2019 $ 1,317 $ 7,895 $ (7,628 ) $ 1,584 Year ended December 31, 2018 $ 638 $ 5,514 $ (4,835 ) $ 1,317 Year ended December 31, 2017 $ 617 $ 3,353 $ (3,332 ) $ 638 (1) Deductions include actual accounts written-off, net of recoveries. |
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of the cash, cash equivalents and restricted cash within the consolidated balance sheets that sum to the total of the same such amounts shown in the statement of cash flows for the year ended December 31, 2019 and 2018 December 31, 2019 December 31, 2018 (in thousands) Cash and cash equivalents $ 269,670 $ 111,489 Restricted cash 5,816 5,175 Restricted cash included in other assets 3,029 450 Total cash, cash equivalents, and restricted cash $ 278,515 $ 117,114 |
Schedule of Property Plant and Equipment Useful Life | Depreciation is recorded over the following estimated useful lives: Estimated Useful Life Employee related computer equipment 2 - 3 years Computer equipment and purchased software 3 years Furniture and fixtures 5 years Internal use software 5 years Leasehold improvements Lesser of lease |
Summary of Lease Assets and Liabilities | The following table provides a summary of lease assets and liabilities as of December 31, 2019: Leases Balance sheet classification Amount (in thousands) Assets: Operating lease assets Right-of-use assets $ 234,390 Finance lease assets Fixed assets 68 Total leased assets $ 234,458 Liabilities: Current Operating lease liabilities Lease liabilities $ 23,613 Finance lease liabilities Accrued expenses and other current liabilities 28 Noncurrent Operating Lease liabilities, net of current portion 244,216 Total lease liabilities $ 267,857 |
Summary of Reconciliation between Non-cancelable Lease Commitments and Lease Liabilities | The following table provides a reconciliation between non-cancelable lease commitments and lease liabilities as of December 31, 2019 : Operating leases Finance Leases Lease commitments (Note 9) $ 412,719 $ 28 Less: Legally binding minimum lease payments for leases signed but not yet commenced (70,928 ) — Less: Present value discount (73,962 ) — Total lease liabilities $ 267,829 $ 28 |
Summary of Weighted Average Remaining Lease Terms and Weighted Average Discount Rate for Operating and Finance Leases | The following table provides weighted average remaining lease terms and weighted average discount rate for operating and finance leases as of December 31, 2019 Weighted-average remaining lease term: Operating leases 9.2 years Finance leases 0.25 years Weighted-average discount rate: Operating leases 5.6% Finance leases 3.8% |
Schedule of Changes in Asset Retirement Obligations | The changes in the ARO balance during the year ending December 31, 2019 and December 31, 2018 are as follows: Year Ended December 31, 2019 2018 (in thousands) Beginning balance $ 1,424 $ 1,191 Additions 2,028 459 Accretion 103 92 Updates to estimated cash flows (22 ) (318 ) Ending balance $ 3,533 $ 1,424 |
Summary of Capitalized Software Development Costs, Exclusive of those Costs Recorded within Property and Equipment | Capitalized software development costs, exclusive of those costs recorded within property and equipment, consisted of the following: December 31, 2019 December 31, 2018 (in thousands) Gross capitalized software development costs $ 61,641 $ 46,169 Accumulated amortization (44,848 ) (33,423 ) Capitalized software development costs, net $ 16,793 $ 12,746 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Measurements of Financial Assets and Liabilities | The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets and liabilities at December 31, 2019 and December 31, 2018 : December 31, 2019 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 96,618 $ — $ — $ 96,618 Commercial paper — 87,185 — 87,185 Corporate bonds — 87,138 — 87,138 U.S. Treasury securities — 631,174 — 631,174 Restricted cash: Certificates of deposit — 5,816 — 5,816 Money market funds — 3,029 — 3,029 Total $ 96,618 $ 814,342 $ — $ 910,960 December 31, 2018 Level 1 Level 2 Level 3 Total (in thousands) Cash equivalents and investments: Money market funds $ 1,579 $ — $ — $ 1,579 Commercial paper — 8,242 — 8,242 Corporate bonds — 70,728 — 70,728 U.S. Treasury securities — 413,241 — 413,241 Restricted cash: Certificates of deposit — 5,625 — 5,625 Total $ 1,579 $ 497,836 $ — $ 499,415 |
Summary of Composition of Short and Long Term Investments | The following tables summarize the composition of our short- and long-term investments at December 31, 2019 and 2018: December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 77,214 $ — $ — $ 77,214 Corporate bonds 86,900 251 (13 ) 87,138 U.S. Treasury securities 581,066 207 (15 ) 581,258 Total $ 745,180 $ 458 $ (28 ) $ 745,610 December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Aggregate Fair Value (in thousands) Commercial paper $ 8,256 $ — $ (14 ) $ 8,242 Corporate bonds 70,958 3 (233 ) 70,728 U.S. Treasury securities 413,323 56 (138 ) 413,241 Total $ 492,537 $ 59 $ (385 ) $ 492,211 |
Summary of Contractual Maturities of Short and Long Term Investments | The contractual maturities of short-term and long-term investments held as follows: December 31, 2019 December 31, 2018 Amortized Cost Basis Aggregate Fair Value Amortized Cost Basis Aggregate Fair Value ( in thousands) Due within one year $ 691,556 $ 691,834 $ 481,071 $ 480,761 Due after 1 year and within 2 years 53,624 53,776 11,466 11,450 Total $ 745,180 $ 745,610 $ 492,537 $ 492,211 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consists of the following: December 31. 2019 2018 (in thousands) Computer equipment & purchased software $ 13,028 $ 10,714 Employee computer equipment 13,829 8,972 Furniture and fixtures 14,319 13,019 Leasehold improvements 56,618 42,894 Equipment under finance lease 3,450 3,450 Internal-use software 7,770 5,363 Construction in progress 23,714 2,498 Total property and equipment 132,728 86,910 Less accumulated depreciation (49,079 ) (34,442 ) Property and equipment, net $ 83,649 $ 52,468 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combination Recognized Identifiable Assets Acquired And Liabilities Assumed Assets [Abstract] | |
Summary of Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the fair value of assets acquired and liabilities assumed as of the date of acquisition: Fair value (in thousands) Cash $ 646 Accounts receivable 133 Other current and noncurrent assets 218 Acquired developed technology 9,800 Other intangible assets 70 Goodwill 15,219 Accounts payable, accrued expenses, and other liabilities (731 ) Deferred revenue (210 ) Deferred tax liability (1,324 ) Total purchase price $ 23,821 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets as of December 31, 2019 2018 Weighted Average Remaining Useful Life December 31, 2019 2018 (in thousands) Acquired technology 44 Months $ 17,297 $ 7,252 Other intangible assets 22 Months 70 - Accumulated amortization (5,615 ) (2,333 ) Total $ 11,752 $ 4,919 |
Estimated Future Amortization Expense for Intangible Assets | Estimated future amortization expense for intangible assets as of December 31, 2019 Years ended December 31, Amortization Expense (in thousands) 2020 $ 2,414 2021 927 2022 1,286 2023 1,686 2024 1,966 Thereafter 3,473 Total $ 11,752 |
Schedule of Changes in Carrying Amounts of Goodwill | The changes in the carrying amounts of goodwill in 2019, consist of the following: (in thousands) Balance as of December 31, 2018 $ 14,950 PieSync acquisition 15,219 Effect of foreign currency translation 81 Balance as of December 31, 2019 $ 30,250 |
0.25% Convertible Senior Note_2
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Instrument [Line Items] | |
Schedule of Interest Expense | Interest expense related to the 2022 Notes is as follows: Year Ended December 31, 2019 2018 2017 (in thousands) Contractual interest expense $ 1,000 $ 1,000 $ 639 Amortization of debt discount 20,277 18,923 11,507 Amortization of issuance costs 1,513 1,412 859 Total interest expense $ 22,790 $ 21,335 $ 13,005 |
Schedule of Net Equity Impact, Included in Additional Paid-in Capital, of the Liability and Equity Components | The net equity impact, included in additional paid-in capital, of the above components of the 2022 Notes is as follows: (in thousands) Conversion Option $ 106,006 Purchase of Convertible Note Hedges (78,920 ) Sales of warrants 59,080 Issuance costs (3,054 ) Deferred tax liability (9,399 ) Total $ 73,713 |
0.25% Convertible Senior Notes Due 2022 as Liability Component [Member] | |
Debt Instrument [Line Items] | |
Schedule of Net Carrying Amount of Notes | The net carrying amount of the liability component of the 2022 Notes is as follows: As of December 31, 2019 As of December 31, 2018 (in thousands) Principal $ 399,992 $ 400,000 Unamortized debt discount (55,299 ) (75,575 ) Unamortized issuance costs (4,129 ) (5,643 ) Net carrying amount $ 340,564 $ 318,782 |
0.25% Convertible Senior Notes Due 2022 as Equity Component [Member] | |
Debt Instrument [Line Items] | |
Schedule of Net Carrying Amount of Notes | The net carrying amount of the equity component of the 2022 Notes is as follows: As of December 31, 2019 As of December 31, 2018 (in thousands) Debt discount for conversion option $ 106,006 106,006 Issuance costs (2,854 ) (2,854 ) Net carrying amount $ 103,152 $ 103,152 |
Segment Information and Geogr_2
Segment Information and Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenues by Geographical Region | Revenues by geographical region: Year Ended December 31, 2019 2018 2017 (In thousands) Americas $ 456,568 $ 361,136 $ 283,696 Europe 168,452 117,670 70,895 Asia Pacific 49,840 34,174 21,021 Total $ 674,860 $ 512,980 $ 375,612 Percentage of revenues generated outside of the Americas 32 % 30 % 24 % |
Long Lived Assets by Geographical Region | Total long-lived assets by geographical region: As of December 31, 2019 As of December 31, 2018 (In thousands) Americas $ 175,821 $ 35,186 Europe 127,395 13,913 Asia Pacific 14,823 3,369 Total long lived assets $ 318,039 $ 52,468 Percentage of long lived assets held outside of the Americas 45 % 33 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Payments | Future minimum payments under all operating and finance lease agreements as of December 31, 2019, are as follows: Operating Finance (in thousands) 2020 $ 42,466 $ 28 2021 48,935 — 2022 48,286 — 2023 47,893 — 2024 46,581 — Thereafter 178,558 — Total $ 412,719 28 Less: Portion representing interest — Finance lease obligation $ 28 As previously disclosed in our 2018 Annual Report on Form 10-K and under the previous lease accounting standard, the future minimum payments under all operating and capital lease agreements as of December 31, 2018 are as follows: Operating Capital (in thousands) 2019 $ 27,755 $ 298 2020 33,769 33 2021 35,414 — 2022 35,314 — 2023 35,686 — Thereafter 184,341 — Total $ 352,279 331 Less: Portion representing interest (20 ) Finance lease obligation $ 311 |
Schedule of Future Minimum Payments Under Vendor Commitments | Future minimum payments under all Vendor Commitments as of December 31, 2019, are as follows: Product related obligations INBOUND event obligations (in thousands) 2020 $ 18,750 $ 653 2021 12,500 653 2022 — 316 2023 — 653 2024 — — Total $ 31,250 $ 2,275 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | The following table summarizes the changes in accumulated other comprehensive loss, which is reported as a component of stockholders’ equity, for the years ended December 31, 2019 and 2018: Cumulative Translation Adjustment Unrealized Gain (L oss) on Investments Total (in thousands) Beginning balance at January 1, 2018 $ 379 $ (436 ) $ (57 ) Other comprehensive (loss) income before reclassifications (776 ) 110 (666 ) Amounts reclassified from accumulated other comprehensive loss — — — Ending balance at December 31, 2018 $ (397 ) $ (326 ) $ (723 ) Other comprehensive (loss) income before reclassifications (213 ) 600 387 Amounts reclassified from accumulated other comprehensive loss — — — Ending balance at December 31, 2019 $ (610 ) $ 274 $ (336 ) |
Stockholders' Equity and Stoc_2
Stockholders' Equity and Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders Equity And Stock Based Compensation [Abstract] | |
Summary of Number of Shares of Common Stock Reserved | The number of shares of common stock reserved for the vesting of RSUs and exercise of common stock options are as follows (in thousands): December 31, 2019 December 31, 2018 RSUs 1,529 1,983 Common stock options 1,494 1,840 3,023 3,823 |
Schedule of Stock Compensation Expense by Award Type | The following two tables show stock compensation expense by award type and where the stock compensation expense is recorded in the Company’s consolidated statements of operations: Year Ended December 31, 2019 2018 2017 ( in thousands) Options $ 5,078 $ 5,108 $ 4,948 ESPP 4,866 2,833 1,233 RSUs 87,810 68,320 41,136 Total stock-based compensation $ 97,754 $ 76,261 $ 47,317 |
Effect of Stock-Based Compensation on Income by Line Item | The following two tables show stock compensation expense by award type and where the stock compensation expense is recorded in the Company’s consolidated statements of operations: 2019 2018 2017 (in thousands) Cost of revenue, subscription $ 3,127 $ 1,476 $ 658 Cost of revenue, service 2,829 2,924 2,327 Research and development 33,748 23,328 12,816 Sales and marketing 36,599 31,099 19,016 General and administrative 21,451 17,434 12,500 Total stock-based compensation $ 97,754 $ 76,261 $ 47,317 |
Schedule of Assumptions Used for Estimation of Fair Value of Options Granted to Employees | Stock Options —The fair value of employee options is estimated on the date of each grant using the Black-Scholes option-pricing model with the following assumptions: Year Ended December 31, 2019 2018 2017 Risk-free interest rate (%) 1.95-2.55 2.62-2.85 1.74-2.09 Expected term (years) 5.50-6.02 5.06-6.42 5.18-6.21 Volatility (%) 39.46-41.41 41.34-43.55 39.4-43.7 Expected dividends — — — |
Summary of Stock Option Activity | The stock option activity for the year ended December 31, 2019 is as follows: Options (in thousands) Weighted- Average Exercise Price Weighted- Average Remaining Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding—January 1, 2019 1,840 $ 23.89 4.6 $ 187,342 Granted 106 160.15 Exercised (416 ) 20.95 Forfeited/expired (36 ) 77.31 Outstanding—December 31, 2019 1,494 33.09 4.0 $ 187,398 Options vested or expected to vest—December 31, 2019 1,494 $ 33.09 4.0 $ 187,398 Options exercisable—December 31, 2019 1,294 $ 19.63 3.3 $ 179,688 |
Summary of Activity Related to RSUs | The following table summarizes the activity related to RSUs for the year ended December 31, 2019: RSUs Outstanding Shares (in thousands) Weighted- Average Grant Date Fair Value Per Share Unvested and outstanding at January 1, 2019 1,983 $ 83.67 Granted 772 158.86 Vested (1,011 ) 84.34 Canceled (215 ) 95.64 Unvested and outstanding at December 31, 2019 1,529 $ 119.46 |
Summary of Activity Related to Employee Stock Purchase Plan | The following table summarizes the activity related to ESPP: Shares Issued (in thousands) Weighted- Average Purchase Price Total Cash Proceeds (in thousands) 2019 116 $ 123.69 $ 14,383 2018 148 $ 80.21 $ 11,863 2017 94 $ 38.83 $ 3,635 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Loss Before Provision for Income Taxes | Loss before provision for income taxes was as follows: Year Ended December 31, 2019 2018 2017 (in thousands) United States $ (63,200 ) $ (69,769 ) $ (54,894 ) Foreign 12,427 7,809 4,855 Total $ (50,773 ) $ (61,960 ) $ (50,039 ) |
Components of Income Tax (Provision) Benefit | The (provision) benefit for income taxes consists of the following: Year Ended December 31, 2019 2018 2017 (in thousands) Current income tax provision Federal $ (238 ) $ (184 ) $ — State (241 ) (140 ) (144 ) Foreign (3,293 ) (1,508 ) (1,077 ) Total current income tax provision (3,772 ) (1,832 ) (1,221 ) Deferred income tax benefit Federal 160 21 10,435 State — — 977 Foreign 639 (57 ) 134 Total deferred income tax benefit (expense) 799 (36 ) 11,546 Total income tax benefit (provision) $ (2,973 ) $ (1,868 ) $ 10,325 |
Schedule of Differences Between Income Taxes Computed at the Federal Statutory Rate and the Provision for Income Taxes | The following reconciles the differences between income taxes computed at the federal statutory rate of 21% Year Ended December 31, 2019 2018 2017 (in thousands) Expected income tax benefit at the federal statutory rate $ 10,665 $ 12,955 $ 17,166 State taxes net of federal benefit 3,700 5,155 5,150 Stock-based compensation 16,055 17,575 10,939 Executive compensation limitation (7,244 ) — — Difference in foreign tax rates 693 435 988 U.S. tax credits 24,170 1,763 1,717 Convertible debt and acquisition — — 11,573 Federal rate change — — (49,123 ) Transition tax — — (1,063 ) GILTI inclusion (1,645 ) (1,177 ) — Meals and entertainment (1,208 ) (1,411 ) (745 ) Change in valuation allowance (47,523 ) (37,059 ) 13,988 Other (636 ) (104 ) (265 ) Income tax benefit (provision) $ (2,973 ) $ (1,868 ) $ 10,325 |
Components of the Company's Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities were as follows: Year Ended December 31, 2019 2018 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 142,512 $ 118,897 Research and investment credits 35,285 11,154 Accruals and reserves 9,239 7,734 Depreciation 1,756 1,119 Stock-based compensation 5,451 5,404 Interest expense 3,197 2,466 Total deferred tax assets 197,440 146,774 Deferred tax liabilities: Intangible assets (2,678 ) (1,002 ) Convertible debt (3,550 ) (4,675 ) Capitalized costs (11,351 ) (8,002 ) Depreciation (138 ) — Total deferred tax liabilities (17,717 ) (13,679 ) Valuation allowance (180,092 ) (132,759 ) Net deferred tax assets $ (369 ) $ 336 |
Summary of Activity Related to Unrecognized Tax Benefits | The following summarizes activity related to unrecognized tax benefits: Year Ended December 31, 2019 2018 2017 (in thousands) Unrecognized benefit—beginning of the year $ 3,925 $ 2,725 $ 1,742 Gross increases—current period positions 2,387 1,200 983 Gross decrease—prior period positions (867 ) — — Unrecognized benefit—end of period $ 5,445 $ 3,925 $ 2,725 |
Quarterly Financial Results (_2
Quarterly Financial Results (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Results | Fourth Quarter Third Quarter Second Quarter First Quarter (in thousands, except per share amounts) Year ended December 31, 2019 Revenue $ 186,186 $ 173,621 $ 163,255 $ 151,798 Cost of revenue 35,975 33,263 31,142 29,578 Gross profit 150,211 140,358 132,113 122,220 Net loss (10,302 ) (14,987 ) (17,357 ) (11,100 ) Basic and diluted net loss per share $ (0.24 ) $ (0.35 ) $ (0.41 ) $ (0.27 ) Year ended December 31, 2018 Revenue $ 144,022 $ 131,826 $ 122,576 $ 114,556 Cost of revenue 27,364 25,765 24,851 22,377 Gross profit 116,658 106,061 97,725 92,179 Net loss (11,492 ) (18,663 ) (18,225 ) (15,448 ) Basic and diluted net loss per share $ (0.29 ) $ (0.48 ) $ (0.48 ) $ (0.41 ) |
Organization and Operations - A
Organization and Operations - Additional Information (Detail) - USD ($) shares in Thousands, $ in Thousands | Feb. 19, 2019 | Dec. 31, 2019 |
Organization And Operations [Line Items] | ||
Aggregate proceeds from offering, net of underwriters' discounts and commissions | $ 343,000 | $ 342,628 |
Offering expenses | $ 365 | |
Common Stock [Member] | ||
Organization And Operations [Line Items] | ||
Common stock sold to public | 2,200 | 2,151 |
Offering expenses | $ 400 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | Nov. 30, 2019USD ($) | Dec. 31, 2019USD ($)$ / shares | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)SegmentdReporting_UnitCustomer$ / shares | Dec. 31, 2018USD ($)Customer | Dec. 31, 2017USD ($) | Jan. 01, 2018USD ($) | Dec. 31, 2016USD ($) |
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Number of operating segment | Segment | 1 | |||||||||||||
Cash and cash equivalents, maturity description | three months or less at the date of purchase, consisting primarily of money-market funds. | |||||||||||||
Restricted cash related to letters of credit for leased facilities | $ 8,800,000 | $ 5,600,000 | $ 8,800,000 | $ 5,600,000 | ||||||||||
Impairment charges of long lived assets | $ 0 | |||||||||||||
Number of reporting unit | Reporting_Unit | 1 | |||||||||||||
Goodwill impairment | $ 0 | $ 0 | 0 | $ 0 | ||||||||||
Advertising expense | 14,900,000 | 8,400,000 | 5,500,000 | |||||||||||
Operating lease expense costs | 32,200,000 | |||||||||||||
Operating sublease income | 2,500,000 | |||||||||||||
Finance lease costs | 200,000 | |||||||||||||
Finance lease interest expense | 100,000 | |||||||||||||
Increase in future lease commitments | 83,000,000 | |||||||||||||
Cash payments for operating lease liabilities | 28,800,000 | |||||||||||||
Finance lease liabilities | $ 300,000 | |||||||||||||
Revenue subscription contract period | one year or less | |||||||||||||
Additions in deferred revenue | $ 48,600,000 | |||||||||||||
Calculated billings | 723,500,000 | |||||||||||||
Total revenues | 186,186,000 | $ 173,621,000 | $ 163,255,000 | $ 151,798,000 | 144,022,000 | $ 131,826,000 | $ 122,576,000 | $ 114,556,000 | 674,860,000 | 512,980,000 | 375,612,000 | |||
Deferred revenue, revenue recognized | 183,700,000 | |||||||||||||
Revenue remaining performance obligation, contracts exceeds one year | 178,400,000 | $ 178,400,000 | ||||||||||||
Revenue remaining performance obligation contract period | 1 year | |||||||||||||
Revenue remaining performance obligation percentage recognized | 94.00% | |||||||||||||
Short-term deferred revenue | 231,030,000 | 183,305,000 | $ 231,030,000 | 183,305,000 | ||||||||||
Increase (decrease) in deferred commission expense | 9,400,000 | |||||||||||||
Incremental costs of deferred sales commission expense | 42,200,000 | |||||||||||||
Amortization of deferred commission expense | 32,800,000 | |||||||||||||
Off-balance sheet risk amount | 0 | $ 0 | ||||||||||||
Accounts receivable payment period | 30 days | |||||||||||||
Capitalized software development costs, exclusive of costs recorded within property and equipment | $ 15,500,000 | 12,800,000 | 8,200,000 | |||||||||||
Amortization of software development costs, exclusive of costs recorded within property and equipment | $ 11,600,000 | 9,200,000 | 6,300,000 | |||||||||||
Minimum percentage chances of tax benefit to be realized on examination | 50.00% | |||||||||||||
Cumulative adjustment to retained earnings | (398,130,000) | (344,384,000) | $ (398,130,000) | (344,384,000) | ||||||||||
Sales and marketing | 340,685,000 | 267,444,000 | 212,859,000 | |||||||||||
Total operating expenses | 591,893,000 | 460,881,000 | 340,019,000 | |||||||||||
Income tax (expense) benefit | 2,973,000 | 1,868,000 | (10,325,000) | |||||||||||
Loss before income tax (expense) benefit | (50,773,000) | (61,960,000) | (50,039,000) | |||||||||||
Net loss | (10,302,000) | $ (14,987,000) | $ (17,357,000) | $ (11,100,000) | (11,492,000) | $ (18,663,000) | $ (18,225,000) | $ (15,448,000) | (53,746,000) | (63,828,000) | (39,714,000) | |||
Comprehensive loss | (53,359,000) | (64,494,000) | (38,907,000) | |||||||||||
Total current assets | 1,109,724,000 | 712,418,000 | 1,109,724,000 | 712,418,000 | ||||||||||
Long-term deferred commissions | 3,058,000 | 2,179,000 | 3,058,000 | 2,179,000 | ||||||||||
Total assets | 1,569,268,000 | 833,953,000 | 1,569,268,000 | 833,953,000 | ||||||||||
Total current liabilities | 322,489,000 | 237,009,000 | 322,489,000 | 237,009,000 | ||||||||||
Total liabilities | 919,310,000 | 589,312,000 | 919,310,000 | 589,312,000 | ||||||||||
Total stockholders' equity | 649,958,000 | 244,641,000 | 649,958,000 | 244,641,000 | 210,360,000 | $ 118,700,000 | ||||||||
Total liabilities and stockholders' equity | 1,569,268,000 | 833,953,000 | 1,569,268,000 | 833,953,000 | ||||||||||
Deferred commissions expense | (9,666,000) | (23,900,000) | (4,004,000) | |||||||||||
Increase in deferred revenue | 49,265,000 | 49,316,000 | 38,999,000 | |||||||||||
Impact on cash flows from operations | 118,973,000 | 84,851,000 | 49,614,000 | |||||||||||
Right-of-use assets | 234,390,000 | 234,390,000 | ||||||||||||
Short-term lease liabilities | 23,613,000 | 23,613,000 | ||||||||||||
Accrued expenses and other current liabilities | 28,686,000 | 22,305,000 | 28,686,000 | 22,305,000 | ||||||||||
Long-term lease liabilities | 244,216,000 | 244,216,000 | ||||||||||||
Deferred rent, net of current portion | 26,445,000 | 26,445,000 | ||||||||||||
Total liabilities | 919,310,000 | 589,312,000 | 919,310,000 | 589,312,000 | ||||||||||
Subscription [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Total revenues | 646,266,000 | 487,450,000 | 356,727,000 | |||||||||||
Professional Services and Other [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Total revenues | 28,594,000 | $ 25,530,000 | 18,885,000 | |||||||||||
Accounting Standards Update 2014-09 [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Adjustments to retained earnings | 274,000 | |||||||||||||
ASC Topic 842 [Member] | Adjustment [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Other assets | 300,000 | 300,000 | ||||||||||||
Total assets | 151,900,000 | 151,900,000 | ||||||||||||
Total liabilities | 151,900,000 | 151,900,000 | ||||||||||||
Right-of-use assets | 152,200,000 | 152,200,000 | ||||||||||||
Other assets | 300,000 | 300,000 | ||||||||||||
Short-term lease liabilities | 14,100,000 | 14,100,000 | ||||||||||||
Accrued expenses and other current liabilities | 500,000 | 500,000 | ||||||||||||
Total current liabilities | 13,500,000 | 13,500,000 | ||||||||||||
Long-term lease liabilities | 164,800,000 | 164,800,000 | ||||||||||||
Deferred rent, net of current portion | 26,400,000 | 26,400,000 | ||||||||||||
Total liabilities | 151,900,000 | 151,900,000 | ||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Total revenues | (241,000) | |||||||||||||
Short-term deferred revenue | (89,000) | (89,000) | ||||||||||||
Cumulative adjustment to retained earnings | 22,200,000 | 22,200,000 | $ 5,500,000 | |||||||||||
Sales and marketing | (16,700,000) | |||||||||||||
Total operating expenses | (16,700,000) | |||||||||||||
Income tax (expense) benefit | (168,000) | |||||||||||||
Loss before income tax (expense) benefit | (16,500,000) | |||||||||||||
Net loss | (16,700,000) | |||||||||||||
Comprehensive loss | $ (16,700,000) | |||||||||||||
Basic earnings (losses) per share | $ / shares | $ (0.43) | |||||||||||||
Short-term deferred commissions | 4,100,000 | $ 4,100,000 | ||||||||||||
Total current assets | 4,100,000 | 4,100,000 | ||||||||||||
Long-term deferred commissions | 18,100,000 | 18,100,000 | ||||||||||||
Other assets | (98,000) | (98,000) | ||||||||||||
Total assets | 22,100,000 | 22,100,000 | ||||||||||||
Total current liabilities | (89,000) | (89,000) | ||||||||||||
Other liabilities | 8,000 | 8,000 | ||||||||||||
Total liabilities | (81,000) | (81,000) | ||||||||||||
Total stockholders' equity | 22,200,000 | 22,200,000 | ||||||||||||
Total liabilities and stockholders' equity | 22,100,000 | 22,100,000 | ||||||||||||
Deferred commissions expense | 16,700,000 | |||||||||||||
Increase in deferred revenue | 200,000 | |||||||||||||
Decrease in deferred taxes | 200,000 | |||||||||||||
Impact on cash flows from operations | 0 | |||||||||||||
Other assets | (98,000) | (98,000) | ||||||||||||
Total liabilities | (81,000) | (81,000) | ||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | Subscription [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Total revenues | (613,000) | |||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | Professional Services and Other [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Total revenues | $ 372,000 | |||||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | Previously Reported [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Cumulative adjustment to retained earnings | $ 5,800,000 | |||||||||||||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Number of customers represented more than 10% | Customer | 0 | 0 | ||||||||||||
Revenue [Member] | Customer Concentration Risk [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Number of customers represented more than 10% | Customer | 0 | 0 | ||||||||||||
Accrued Expenses and Other Current Liabilities [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Short-term deferred revenue | $ 1,400,000 | $ 1,600,000 | $ 1,400,000 | $ 1,600,000 | ||||||||||
Internal Use Software [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Property and equipment, estimated useful life | 5 years | |||||||||||||
Stock-based compensation in capitalized software development costs | $ 2,100,000 | $ 2,400,000 | $ 1,600,000 | |||||||||||
Maximum [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Business combination, measurement period | 1 year | |||||||||||||
Amortization period of deferred commissions | 3 years | |||||||||||||
Maximum [Member] | Acquired Technology [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Estimated useful life | 7 years | |||||||||||||
Maximum [Member] | Capitalized Software Development Costs [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Property and equipment, estimated useful life | 5 years | |||||||||||||
Minimum [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Amortization period of deferred commissions | 1 year | |||||||||||||
Minimum [Member] | Acquired Technology [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Estimated useful life | 2 years | |||||||||||||
Minimum [Member] | Capitalized Software Development Costs [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Property and equipment, estimated useful life | 2 years | |||||||||||||
0.25% Convertible Senior Notes Due 2022 as Liability Component [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Common stock conversion price | $ / shares | $ 94.77 | $ 94.77 | ||||||||||||
Debt instrument, convertible, threshold trading days | d | 20 | |||||||||||||
Debt instrument, convertible, threshold consecutive trading days | d | 30 | |||||||||||||
Percentage of closing price to trigger debt conversion | 130.00% | |||||||||||||
Debt instrument convertible, principal amount | $ 8,000 | $ 8,000 | ||||||||||||
0.25% Convertible Senior Notes Due 2022 as Liability Component [Member] | Maximum [Member] | ||||||||||||||
Schedule Of Accounting Policies [Line Items] | ||||||||||||||
Common stock conversion price | $ / shares | $ 115.83 | $ 115.83 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Reconciliation of Denominator Used in Calculation of Basic and Diluted Loss Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share Basic And Diluted [Abstract] | |||||||||||
Net loss | $ (10,302) | $ (14,987) | $ (17,357) | $ (11,100) | $ (11,492) | $ (18,663) | $ (18,225) | $ (15,448) | $ (53,746) | $ (63,828) | $ (39,714) |
Weighted-average common shares outstanding - basic | 42,025 | 38,529 | 36,827 | ||||||||
Weighted-average common shares outstanding - diluted | 42,025 | 38,529 | 36,827 | ||||||||
Net loss per common share, basic and diluted | $ (0.24) | $ (0.35) | $ (0.41) | $ (0.27) | $ (0.29) | $ (0.48) | $ (0.48) | $ (0.41) | $ (1.28) | $ (1.66) | $ (1.08) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Potentially Dilutive Common Stock Equivalents (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Options to Purchase Common Shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 1,489 | 1,824 | 2,085 |
Conversion Option and Warrants of the 2022 Notes [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 3,104 | 1,211 | |
RSUs [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 1,207 | 1,732 | 2,315 |
ESPP [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share | 2 | 10 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Roll Forward of Company's Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Allowance for doubtful accounts, Beginning Balance | $ 1,317 | $ 638 | $ 617 |
Allowance for doubtful accounts, Charged to Statement of Operations | 7,895 | 5,514 | 3,353 |
Allowance for doubtful accounts, Deductions | (7,628) | (4,835) | (3,332) |
Allowance for doubtful accounts, Ending Balance | $ 1,584 | $ 1,317 | $ 638 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash And Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 269,670 | $ 111,489 |
Restricted cash | 5,816 | 5,175 |
Restricted cash included in other assets | $ 3,029 | $ 450 |
Restricted Cash, Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Total cash, cash equivalents, and restricted cash | $ 278,515 | $ 117,114 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Schedule of Property Plant and Equipment Useful Life (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Employee Related Computer Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 2 years |
Employee Related Computer Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 3 years |
Computer Equipment and Purchased Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 3 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 5 years |
Internal Use Software [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and Equipment, Estimated Useful Life, Description | Lesser of lease term or useful life |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Summary of Lease Assets and Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Assets And Liabilities Lessee [Abstract] | |
Operating lease assets | $ 234,390 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseRightOfUseAsset |
Finance lease assets | $ 68 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet |
Total leased assets | $ 234,458 |
Operating lease liabilities | $ 23,613 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseLiabilityCurrent |
Finance lease liabilities | $ 28 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | hubs:AccruedExpensesAndOtherCurrentLiabilities |
Operating lease liabilities, net of current portion | $ 244,216 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OperatingLeaseLiabilityNoncurrent |
Total lease liabilities | $ 267,857 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - Summary of Reconciliation between Non-cancelable Lease Commitments and Lease Liabilities (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Lease commitments, Operating leases | $ 412,719 |
Less: Legally binding minimum lease payments for leases signed but not yet commenced, Operating leases | (70,928) |
Less: Present value discount, Operating leases | (73,962) |
Total lease liabilities, Operating leases | 267,829 |
Lease commitments, Finance leases | 28 |
Total lease liabilities, finance leases | $ 28 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies - Summary of Weighted Average Remaining Lease Terms and Weighted Average Discount Rate for Operating and Finance Leases (Detail) | Dec. 31, 2019 |
Weighted-average remaining lease term: | |
Operating leases | 9 years 2 months 12 days |
Finance leases | 3 months |
Weighted-average discount rate: | |
Operating leases | 5.60% |
Finance leases | 3.80% |
Summary of Significant Accou_13
Summary of Significant Accounting Policies - Schedule of Changes in Asset Retirement Obligations (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Beginning balance | $ 1,424 | $ 1,191 |
Additions | 2,028 | 459 |
Accretion | 103 | 92 |
Updates to estimated cash flows | (22) | (318) |
Ending balance | $ 3,533 | $ 1,424 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies - Additional Information1 (Detail) | Dec. 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Schedule Of Accounting Policies [Line Items] | |
Revenue remaining performance obligations recognition period | 24 months |
Summary of Significant Accou_15
Summary of Significant Accounting Policies - Summary of Capitalized Software Development Costs, Exclusive of those Costs Recorded within Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Capitalized Computer Software Net [Abstract] | ||
Gross capitalized software development costs | $ 61,641 | $ 46,169 |
Accumulated amortization | (44,848) | (33,423) |
Capitalized software development costs, net | $ 16,793 | $ 12,746 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Schedule of Fair Value of Financial Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | $ 745,610 | $ 492,211 |
Fair value of financial assets | 910,960 | 499,415 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 96,618 | 1,579 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of financial assets | 814,342 | 497,836 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of cash and cash equivalents | 96,618 | 1,579 |
Fair value of restricted cash | 3,029 | |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of cash and cash equivalents | 96,618 | 1,579 |
Money Market Funds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of restricted cash | 3,029 | |
Commercial Paper [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 87,185 | 8,242 |
Commercial Paper [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 87,185 | 8,242 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 87,138 | 70,728 |
Corporate Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 87,138 | 70,728 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 631,174 | 413,241 |
US Treasury Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of short and long term investments | 631,174 | 413,241 |
Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of restricted cash | 5,816 | 5,625 |
Certificates of Deposit [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of restricted cash | $ 5,816 | $ 5,625 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Other assets | $ 9,824 | $ 6,888 |
Strategic Investments [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Other assets | 4,400 | $ 4,000 |
2022 Notes [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair value of notes | $ 693,200 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Summary of Composition of Short and Long Term Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 745,180 | $ 492,537 |
Unrealized Gains | 458 | 59 |
Unrealized Losses | (28) | (385) |
Aggregate Fair Value | 745,610 | 492,211 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 77,214 | 8,256 |
Unrealized Losses | (14) | |
Aggregate Fair Value | 77,214 | 8,242 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 86,900 | 70,958 |
Unrealized Gains | 251 | 3 |
Unrealized Losses | (13) | (233) |
Aggregate Fair Value | 87,138 | 70,728 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 581,066 | 413,323 |
Unrealized Gains | 207 | 56 |
Unrealized Losses | (15) | (138) |
Aggregate Fair Value | $ 581,258 | $ 413,241 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Summary of Contractual Maturities of Short and Long Term Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Amortized Cost Basis, Due within one year | $ 691,556 | $ 481,071 |
Amortized Cost Basis, Due after 1 year and within 2 years | 53,624 | 11,466 |
Amortized Cost | 745,180 | 492,537 |
Aggregate Fair Value, Due within one year | 691,834 | 480,761 |
Aggregate Fair Value, Due after 1 year and within 2 years | 53,776 | 11,450 |
Aggregate Fair Value, Total | $ 745,610 | $ 492,211 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 132,728 | $ 86,910 |
Less accumulated depreciation | (49,079) | (34,442) |
Property and equipment, net | 83,649 | 52,468 |
Computer Equipment and Purchased Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 13,028 | 10,714 |
Employee Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 13,829 | 8,972 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 14,319 | 13,019 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 56,618 | 42,894 |
Equipment under Finance Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 3,450 | 3,450 |
Internal Use Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 7,770 | 5,363 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 23,714 | $ 2,498 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 15 | $ 12.9 | $ 9.4 |
Accumulated depreciation | 3.4 | 3.1 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized asset retirement costs | $ 3.3 | $ 1.3 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Cash purchase price for the acquisition, net of cash acquired | $ 23,314 | $ 9,415 | ||
Goodwill | $ 30,250 | $ 14,950 | ||
Acquired Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Weighted average amortization period | 44 months | |||
PieSync [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition effective date | Oct. 31, 2019 | |||
Business acquisition, description of acquired entity | On October 31, 2019, the Company acquired 100% of the equity interests of PieSync, a Belgian-based technology company that operates an integration platform as a service (“iPaaS”) solution which continuously syncs customer data bi-directionally across various software applications. | |||
Percentage of equity interests acquired | 100.00% | |||
Cash purchase price for the acquisition, net of cash acquired | $ 23,300 | |||
Payments to acquire businesses, working capital settlement | 300 | |||
Other liabilities assumed (debt repaid) | 333 | |||
Business combination, potential consideration not included in purchase price allocation | $ 2,700 | |||
Potential consideration recording period | 2 years | |||
Business combination developed technology and fair value of developed technology | $ 9,800 | |||
Goodwill | 15,219 | |||
PieSync [Member] | Developed Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Business combination developed technology and fair value of developed technology | 9,800 | |||
PieSync [Member] | Acquired Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 7 years | |||
Weighted average amortization period | 4 years 3 months 18 days | |||
PieSync [Member] | General and Administrative Expense [Member] | ||||
Business Acquisition [Line Items] | ||||
Transaction cost | $ 527 | |||
Motion AI, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, description of acquired entity | In 2017, the Company acquired 100% of the equity interests of Motion AI, Inc., a Delaware technology corporation that allows users to scale one-to-one communications. The acquisition strengthened the Company’s position in the one-to-one communication space. Under the terms of the purchase agreement, the Company paid $9.0 million. The excess of the purchase consideration over the fair value of net tangible and identifiable intangible assets and liabilities acquired was recorded as goodwill and is primarily attributable to expanded market opportunities. The goodwill recognized was not deductible for U.S. income tax purposes. | |||
Percentage of equity interests acquired | 100.00% | |||
Business combination, potential consideration not included in purchase price allocation | $ 4,000 | |||
Cash consideration paid | $ 9,000 | |||
Business combination, assets acquired and liabilities assumed, tangible assets | 32 | |||
Goodwill | 5,200 | |||
Deferred tax benefit from release of deferred tax asset valuation allowance | $ 2,200 | |||
Motion AI, Inc. [Member] | Developed Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 2 years | |||
Motion AI, Inc. [Member] | Acquired Technology [Member] | ||||
Business Acquisition [Line Items] | ||||
Business combination developed technology and fair value of developed technology | $ 6,000 |
Business Acquisitions - Summary
Business Acquisitions - Summary of Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 31, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 30,250 | $ 14,950 | |
PieSync [Member] | |||
Business Acquisition [Line Items] | |||
Cash | $ 646 | ||
Accounts receivable | 133 | ||
Other current and noncurrent assets | 218 | ||
Acquired developed technology | 9,800 | ||
Other intangible assets | 70 | ||
Goodwill | 15,219 | ||
Accounts payable, accrued expenses, and other liabilities | (731) | ||
Deferred revenue | (210) | ||
Deferred tax liability | (1,324) | ||
Total purchase price | $ 23,821 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Schedule of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (5,615) | $ (2,333) |
Intangible assets, net | 11,752 | 4,919 |
Acquired Technology [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 17,297 | $ 7,252 |
Intangible assets, Weighted average remaining useful life | 44 months | |
Other Intangible Assets [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 70 | |
Intangible assets, Weighted average remaining useful life | 22 months |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 3,200,000 | $ 1,400,000 | $ 103,000 |
Changes in carrying amount of goodwill | $ 0 | ||
Acquired Technology [Member] | Minimum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Estimated useful life | 2 years | ||
Acquired Technology [Member] | Maximum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Estimated useful life | 7 years |
Intangible Assets and Goodwil_4
Intangible Assets and Goodwill - Estimated Future Amortization Expense for Intangible Assets (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2020 | $ 2,414 |
2021 | 927 |
2022 | 1,286 |
2023 | 1,686 |
2024 | 1,966 |
Thereafter | 3,473 |
Total | $ 11,752 |
Intangible Assets and Goodwil_5
Intangible Assets and Goodwill - Schedule of Changes in Carrying Amounts of Goodwill (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Balance as of December 31, 2018 | $ 14,950 |
PieSync acquisition | 15,219 |
Effect of foreign currency translation | 81 |
Balance as of December 31, 2019 | $ 30,250 |
0.25% Convertible Senior Note_3
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant - Additional Information (Detail) $ / shares in Units, shares in Thousands | Feb. 19, 2019USD ($) | May 31, 2017USD ($)d$ / shares | Dec. 31, 2019dshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2018shares |
Debt Instrument [Line Items] | ||||||
Net proceeds from the debt offering | $ 389,233,000 | |||||
Common stock for issuance upon conversion | shares | 3,023 | 3,023 | 3,823 | |||
Sales of warrants | $ 58,880,000 | |||||
Warrants, issuance costs | $ 365,000 | |||||
Common Stock [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Warrants, issuance costs | $ 400,000 | |||||
0.25% Convertible Senior Notes Due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, interest rate, stated percentage | 0.25% | |||||
Debt instrument, maturity date | Jun. 1, 2022 | |||||
Debt instrument, payment terms | The interest rates are fixed at 0.25% per annum and are payable semi-annually in arrears on June 1 and December 1 of each year, commencing on December 1, 2017. | |||||
Net proceeds from the debt offering | $ 389,200,000 | |||||
Principal amount of each convertible note | $ 1,000 | |||||
Debt instrument, conversion ratio | 10.5519 | |||||
Debt instrument, conversion price per share | $ / shares | $ 94.77 | |||||
Debt instrument, convertible, threshold trading days | d | 20 | |||||
Debt instrument, convertible, threshold consecutive trading days | d | 30 | |||||
Common stock for issuance upon conversion | shares | 4,200 | 4,200 | 4,200 | |||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||
Debt Instrument, Redemption, Description | repurchase price equal to 100% of the principal amount of the notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. | |||||
Debt instrument convertible, principal amount | $ 8,000 | |||||
Carrying amount of equity component | $ 106,000,000 | |||||
Debt instrument, effective interest rate | 6.95% | |||||
Debt issuance costs | $ 10,800,000 | |||||
Number of common shares to be repurchased under convertible note hedge transactions with certain counterparties | shares | 4,200 | 4,200 | ||||
Hedging option strike price per common stock | $ / shares | $ 94.77 | |||||
Cost of convertible note hedge transactions | $ 78,900,000 | |||||
Warrants expected to settle, description | The warrants are expected to settle three business days from each trading day commencing on September 1, 2022 and ending on the 79th trading day thereafter. | |||||
Settlement period of warrants excess price over strike price | 3 days | |||||
Warrants expected to settle, commencement date | Sep. 1, 2022 | |||||
Sales of warrants | $ 58,900,000 | |||||
Warrants, issuance costs | 200,000 | |||||
Convertible notes hedge and warrant transactions cost net | 20,000,000 | |||||
Reserved common stock for underlying warrants | shares | 4,200 | |||||
Deferred tax liability adjustment to additional paid-in capital | $ 9,400,000 | |||||
0.25% Convertible Senior Notes Due 2022 [Member] | Common Stock [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Warrants holders option to purchase number of shares of company’s common stock | shares | 4,200 | 4,200 | ||||
Warrants exercise price per share | $ / shares | $ 115.80 | |||||
0.25% Convertible Senior Notes Due 2022 [Member] | Liability Component [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs | 7,900,000 | |||||
0.25% Convertible Senior Notes Due 2022 [Member] | Equity Component [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs | $ 2,900,000 | |||||
0.25% Convertible Senior Notes Due 2022 [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, conversion price per share | $ / shares | 94.77 | |||||
Percentage of closing price to trigger debt conversion | 130.00% | 130.00% | ||||
0.25% Convertible Senior Notes Due 2022 [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, conversion price per share | $ / shares | $ 115.83 | |||||
Percentage of closing price to trigger debt conversion | 98.00% | |||||
0.25% Convertible Senior Notes Due 2022 [Member] | Scenario 1 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, convertible, threshold trading days | d | 20 | |||||
Debt instrument, convertible, threshold consecutive trading days | d | 30 | |||||
0.25% Convertible Senior Notes Due 2022 [Member] | Scenario Two [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, convertible, threshold trading days | d | 5 | |||||
Debt instrument, convertible, threshold consecutive trading days | d | 5 | |||||
0.25% Convertible Senior Notes Due 2022 [Member] | Private Offering [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of long term debt | $ 350,000,000 | |||||
0.25% Convertible Senior Notes Due 2022 [Member] | Over-Allotment Options [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of long term debt | $ 50,000,000 |
0.25% Convertible Senior Note_4
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant - Schedule of Net Carrying Amount of Liability Component (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Net carrying amount | $ 340,564 | $ 318,782 |
0.25% Convertible Senior Notes Due 2022 as Liability Component [Member] | ||
Debt Instrument [Line Items] | ||
Principal | 399,992 | 400,000 |
Unamortized debt discount | (55,299) | (75,575) |
Unamortized issuance costs | (4,129) | (5,643) |
Net carrying amount | $ 340,564 | $ 318,782 |
0.25% Convertible Senior Note_5
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant - Schedule of Net Carrying Amount of Equity Component (Detail) - 0.25% Convertible Senior Notes Due 2022 as Equity Component [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt discount for conversion option | $ 106,006 | $ 106,006 |
Issuance costs | (2,854) | (2,854) |
Net carrying amount | $ 103,152 | $ 103,152 |
0.25% Convertible Senior Note_6
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant - Schedule of Interest Expense (Detail) - 0.25% Convertible Senior Notes Due 2022 [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Contractual interest expense | $ 1,000 | $ 1,000 | $ 639 |
Amortization of debt discount | 20,277 | 18,923 | 11,507 |
Amortization of issuance costs | 1,513 | 1,412 | 859 |
Total interest expense | $ 22,790 | $ 21,335 | $ 13,005 |
0.25% Convertible Senior Note_7
0.25% Convertible Senior Notes, Convertible Note Hedge and Warrant - Schedule of Net Equity Impact, Included in Additional Paid-in Capital, of the Liability and Equity Components (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |
Total | $ 73,713 |
0.25% Convertible Senior Notes Due 2022 as Net Equity Impact [Member] | |
Debt Instrument [Line Items] | |
Conversion Option | 106,006 |
Purchase of Convertible Note Hedges | (78,920) |
Sales of warrants | 59,080 |
Issuance costs | (3,054) |
Deferred tax liability | (9,399) |
Total | $ 73,713 |
Segment Information and Geogr_3
Segment Information and Geographic Data - Additional Information (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Number of operating segment | 1 | ||
Revenue [Member] | Outside Of United States [Member] | Geographic Concentration Risk [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk, percentage | 40.00% | 37.00% | 33.00% |
Segment Information and Geogr_4
Segment Information and Geographic Data - Revenues by Geographical Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 186,186 | $ 173,621 | $ 163,255 | $ 151,798 | $ 144,022 | $ 131,826 | $ 122,576 | $ 114,556 | $ 674,860 | $ 512,980 | $ 375,612 |
Americas [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 456,568 | 361,136 | 283,696 | ||||||||
Europe [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 168,452 | 117,670 | 70,895 | ||||||||
Asia Pacific [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 49,840 | $ 34,174 | $ 21,021 | ||||||||
Revenue [Member] | Outside Of Americas [Member] | Geographic Concentration Risk [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Percentage of revenues generated outside of the Americas | 32.00% | 30.00% | 24.00% |
Segment Information and Geogr_5
Segment Information and Geographic Data - Long Lived Assets by Geographical Region (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 318,039 | $ 52,468 |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | 175,821 | 35,186 |
Europe [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | 127,395 | 13,913 |
Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 14,823 | $ 3,369 |
Outside Of Americas [Member] | Assets Total [Member] | Geographic Concentration Risk [Member] | ||
Segment Reporting Information [Line Items] | ||
Percentage of long lived assets held outside of the Americas | 45.00% | 33.00% |
Commitments and Contingencies-
Commitments and Contingencies- Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Improvement reimbursements from landlords | $ 16 | ||
Increase in future lease commitments | 83 | ||
Rent expense | $ 32.9 | $ 23.1 | $ 18.9 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Payments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments And Contingencies Disclosure [Abstract] | ||
Operating, 2020 | $ 42,466 | |
Operating, 2021 | 48,935 | |
Operating, 2022 | 48,286 | |
Operating, 2023 | 47,893 | |
Operating, 2024 | 46,581 | |
Operating, Thereafter | 178,558 | |
Lease commitments, Operating leases | 412,719 | |
Finance, 2020 | 28 | |
Lease commitments, Finance leases | 28 | |
Finance lease obligation | $ 28 | |
Operating, 2019 | $ 27,755 | |
Operating, 2020 | 33,769 | |
Operating, 2021 | 35,414 | |
Operating, 2022 | 35,314 | |
Operating, 2023 | 35,686 | |
Operating, Thereafter | 184,341 | |
Operating, Total | 352,279 | |
Capital, 2019 | 298 | |
Capital, 2020 | 33 | |
Capital, Total | 331 | |
Less: Portion representing interest | (20) | |
Finance lease obligation | $ 311 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Payments Under Vendor Commitments (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Product Related Obligations [Member] | |
Long Term Purchase Commitment [Line Items] | |
Vendor Commitments, 2020 | $ 18,750 |
Vendor Commitments, 2021 | 12,500 |
Vendor Commitments, Total | 31,250 |
INBOUND Event Obligations [Member] | |
Long Term Purchase Commitment [Line Items] | |
Vendor Commitments, 2020 | 653 |
Vendor Commitments, 2021 | 653 |
Vendor Commitments, 2022 | 316 |
Vendor Commitments, 2023 | 653 |
Vendor Commitments, Total | $ 2,275 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance, Amount | $ 244,641 | $ 210,360 |
Other comprehensive (loss) income before reclassifications | 387 | (666) |
Ending Balance, Amount | 649,958 | 244,641 |
Cumulative Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance, Amount | (397) | 379 |
Other comprehensive (loss) income before reclassifications | (213) | (776) |
Ending Balance, Amount | (610) | (397) |
Unrealized Gain (Loss) on Investments [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance, Amount | (326) | (436) |
Other comprehensive (loss) income before reclassifications | 600 | 110 |
Ending Balance, Amount | 274 | (326) |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance, Amount | (723) | (57) |
Ending Balance, Amount | $ (336) | $ (723) |
Stockholders' Equity and Stoc_3
Stockholders' Equity and Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Sep. 25, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Common stock authorized | 500,000,000 | 500,000,000 | ||
Number of Shares outstanding | 1,494,000 | 1,840,000 | ||
Unrecognized compensation costs | $ 8.6 | |||
Unrecognized compensation costs, weighted average period | 2 years 6 months | |||
Percentage of discount allowed to employee to purchase common stock | 15.00% | |||
Number of shares authorizes for issuance | 3,023,000 | 3,823,000 | ||
ESPP [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Number of shares authorizes for issuance | 1,785,021,000 | |||
Software Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Capitalized software development costs excluded from stock based compensation | $ 2.4 | $ 2.4 | $ 1.6 | |
RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Percentage of service condition met | 25.00% | |||
Service agreement period description | The service condition is a time-based condition met over a period of four years, with 25% met after one year, and then in equal monthly or quarterly installments over the succeeding three years, or over a period of four years, with equal quarterly installments over those four years. | |||
The total stock-based compensation expense expected to be recorded | $ 163.2 | |||
Weighted average period of RSU | 2 years 7 months 6 days | |||
Number of RSUs expected to vest | 1,500,000 | |||
Aggregate intrinsic value of RSUs expected to vest | $ 242.3 | |||
Total fair value of RSUs vested | $ 85.2 | $ 65 | $ 48.6 | |
Number of shares authorizes for issuance | 1,529,000 | 1,983,000 | ||
Common Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Weighted-average grant date fair value of options granted | $ 69.44 | $ 51.48 | $ 24.56 | |
Number of shares authorizes for issuance | 1,494,000 | 1,840,000 | ||
Maximum [Member] | RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Period of service condition met | 4 years | |||
Minimum [Member] | RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Period of service condition met | 1 year | |||
2007 Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Number of shares available for issuance | 0 | |||
2007 Equity Incentive Plan [Member] | Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Number of Shares outstanding | 1,000,000 | |||
2007 Equity Incentive Plan [Member] | RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Number of Shares outstanding | 0 | |||
2007 Equity Incentive Plan [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Number of years fixed for each option | 10 years | |||
2014 Stock Option and Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Percentage of common stock outstanding | 5.00% | |||
2014 Stock Option and Incentive Plan [Member] | Common Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Number of shares available for issuance | 1,973,551 | |||
Number of Shares outstanding | 526,000 | |||
2014 Stock Option and Incentive Plan [Member] | RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Number of Shares outstanding | 1,500,000 | |||
2014 Stock Option and Incentive Plan [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Number of years fixed for each option | 10 years |
Stockholders' Equity and Stoc_4
Stockholders' Equity and Stock-Based Compensation - Summary of Number of Shares of Common Stock Reserved (Detail) - shares shares in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for the potential conversion | 3,023 | 3,823 |
RSUs [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for the potential conversion | 1,529 | 1,983 |
Common Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock reserved for the potential conversion | 1,494 | 1,840 |
Stockholders' Equity and Stoc_5
Stockholders' Equity and Stock-Based Compensation - Schedule of Stock Compensation Expense by Award Type (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $ 97,754 | $ 76,261 | $ 47,317 |
ESPP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 4,866 | 2,833 | 1,233 |
Common Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 5,078 | 5,108 | 4,948 |
RSUs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $ 87,810 | $ 68,320 | $ 41,136 |
Stockholders' Equity and Stoc_6
Stockholders' Equity and Stock-Based Compensation - Effect of Stock-Based Compensation on Income by Line Item (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $ 97,754 | $ 76,261 | $ 47,317 |
Cost of Revenue, Subscription [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 3,127 | 1,476 | 658 |
Cost of Revenue, Service [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 2,829 | 2,924 | 2,327 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 33,748 | 23,328 | 12,816 |
Sales and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | 36,599 | 31,099 | 19,016 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock-based compensation | $ 21,451 | $ 17,434 | $ 12,500 |
Stockholders' Equity and Stoc_7
Stockholders' Equity and Stock-Based Compensation - Schedule of Assumptions Used for Estimation of Fair Value of Options Granted to Employees (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (%) | 1.95% | 2.62% | 1.74% |
Expected term (years) | 5 years 6 months | 5 years 21 days | 5 years 2 months 4 days |
Volatility (%) | 39.46% | 41.34% | 39.40% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (%) | 2.55% | 2.85% | 2.09% |
Expected term (years) | 6 years 7 days | 6 years 5 months 1 day | 6 years 2 months 15 days |
Volatility (%) | 41.41% | 43.55% | 43.70% |
Stockholders' Equity and Stoc_8
Stockholders' Equity and Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Number of Shares, Beginning balance | 1,840 | |
Number of Shares, Granted | 106 | |
Number of Shares, Exercised | (416) | |
Number of Shares, Forfeited/Expired | (36) | |
Number of Shares, Ending balance | 1,494 | 1,840 |
Number of Shares, Vested and expected to vest | 1,494 | |
Number of Shares, Exercisable | 1,294 | |
Weighted Average Exercise Price, Beginning balance | $ 23.89 | |
Weighted Average Exercise Price, Granted | 160.15 | |
Weighted Average Exercise Price, Exercised | 20.95 | |
Weighted Average Exercise Price, Forfeited/ Expired | 77.31 | |
Weighted Average Exercise Price , Ending balance | 33.09 | $ 23.89 |
Weighted Average Exercise Price, Vested and expected to vest | 33.09 | |
Weighted Average Exercise Price, Exercisable | $ 19.63 | |
Weighted Average Remaining Life, Outstanding | 4 years | 4 years 7 months 6 days |
Weighted Average Remaining Life, Options vested or expected to vest | 4 years | |
Weighted Average Remaining Life, Options exercisable | 3 years 3 months 18 days | |
Aggregate Intrinsic Value, Outstanding | $ 187,398 | $ 187,342 |
Aggregate Intrinsic Value, Options vested or expected to vest | 187,398 | |
Aggregate Intrinsic Value, Options exercisable | $ 179,688 |
Stockholders' Equity and Stoc_9
Stockholders' Equity and Stock-Based Compensation - Summary of Activity Related to RSUs (Detail) - RSUs [Member] shares in Thousands | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted Shares, Beginning balance | shares | 1,983 |
Shares, Granted | shares | 772 |
Shares, Vested | shares | (1,011) |
Shares, Canceled | shares | (215) |
Restricted shares, Ending balance | shares | 1,529 |
Weighted average grant date fair value, Beginning balance | $ / shares | $ 83.67 |
Weighted- Average Grant Date Fair Value, Granted | $ / shares | 158.86 |
Weighted- Average Grant Date Fair Value, Vested | $ / shares | 84.34 |
Weighted- Average Grant Date Fair, Canceled | $ / shares | 95.64 |
Weighted average grant date fair value, Ending balance | $ / shares | $ 119.46 |
Stockholders' Equity and Sto_10
Stockholders' Equity and Stock-Based Compensation - Summary of Activity Related to Employee Stock Purchase Plan (Detail) - ESPP [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares Issued | 116 | 148 | 94 |
Weighted- Average Purchase Price | $ 123.69 | $ 80.21 | $ 38.83 |
Total Cash Proceeds | $ 14,383 | $ 11,863 | $ 3,635 |
Income Taxes - Schedule of Loss
Income Taxes - Schedule of Loss Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (63,200) | $ (69,769) | $ (54,894) |
Foreign | 12,427 | 7,809 | 4,855 |
Total | $ (50,773) | $ (61,960) | $ (50,039) |
Income Taxes - Components of In
Income Taxes - Components of Income Tax (Provision) Benefit (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current income tax provision | |||
Federal | $ (238) | $ (184) | |
State | (241) | (140) | $ (144) |
Foreign | (3,293) | (1,508) | (1,077) |
Total current income tax provision | (3,772) | (1,832) | (1,221) |
Deferred income tax benefit | |||
Federal | 160 | 21 | 10,435 |
State | 977 | ||
Foreign | 639 | (57) | 134 |
Total deferred income tax benefit (expense) | 799 | (36) | 11,546 |
Total income tax benefit (provision) | $ (2,973) | $ (1,868) | $ 10,325 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation Of Income Taxes [Line Items] | |||
Federal statutory income tax rate | 21.00% | 21.00% | 35.00% |
Increase in valuation allowance | $ 47,300,000 | $ 36,100,000 | $ 5,500,000 |
Valuation allowance changes, description | The Company does not expect any significant changes in its valuation allowance positions within the next 12 months. | ||
Federal and state net operating loss carryforwards | $ 947,000,000 | 781,000,000 | |
International net operating loss carryforwards | 6,000,000 | ||
Research and development tax credits | $ 35,285,000 | 11,154,000 | |
Minimum percentage chances of tax benefit to be realized on examination | 50.00% | ||
Unrecognized tax benefits affect the Company's effective tax rate | $ 0 | ||
Interest or penalties recorded | $ 0 | ||
Expected significant change in unrecognized tax benefits, description | The Company does not expect any significant change in its unrecognized tax benefits within the next 12 months | ||
Federal [Member] | |||
Reconciliation Of Income Taxes [Line Items] | |||
Net operating loss, carryforwards, period | 20 years | ||
Net operating loss carryforwards, expiration year | Dec. 31, 2037 | ||
Interest expense carryforward | $ 13,000,000 | $ 10,000,000 | |
Research and development tax credits | $ 23,000,000 | ||
Research and development tax credit carryforwards, expiration year | Dec. 31, 2039 | ||
State [Member] | |||
Reconciliation Of Income Taxes [Line Items] | |||
Net operating loss carryforwards, expiration year | Dec. 31, 2039 | ||
Research and development tax credits | $ 12,200,000 | ||
Research and development tax credit carryforwards, expiration year | Dec. 31, 2034 |
Income Taxes - Schedule of Diff
Income Taxes - Schedule of Differences Between Income Taxes Computed at the Federal Statutory Rate and the Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Expected income tax benefit at the federal statutory rate | $ 10,665 | $ 12,955 | $ 17,166 |
State taxes net of federal benefit | 3,700 | 5,155 | 5,150 |
Stock-based compensation | 16,055 | 17,575 | 10,939 |
Executive compensation limitation | (7,244) | ||
Difference in foreign tax rates | 693 | 435 | 988 |
U.S. tax credits | 24,170 | 1,763 | 1,717 |
Convertible debt and acquisition | 11,573 | ||
Federal rate change | (49,123) | ||
Transition tax | (1,063) | ||
GILTI inclusion | (1,645) | (1,177) | |
Meals and entertainment | (1,208) | (1,411) | (745) |
Change in valuation allowance | (47,523) | (37,059) | 13,988 |
Other | (636) | (104) | (265) |
Total income tax benefit (provision) | $ (2,973) | $ (1,868) | $ 10,325 |
Income Taxes - Components of th
Income Taxes - Components of the Company's Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 142,512 | $ 118,897 |
Research and investment credits | 35,285 | 11,154 |
Accruals and reserves | 9,239 | 7,734 |
Depreciation | 1,756 | 1,119 |
Stock-based compensation | 5,451 | 5,404 |
Interest expense | 3,197 | 2,466 |
Total deferred tax assets | 197,440 | 146,774 |
Deferred tax liabilities: | ||
Intangible assets | (2,678) | (1,002) |
Convertible debt | (3,550) | (4,675) |
Capitalized costs | (11,351) | (8,002) |
Depreciation | (138) | |
Total deferred tax liabilities | (17,717) | (13,679) |
Valuation allowance | (180,092) | (132,759) |
Net deferred tax liabilities | $ (369) | |
Net deferred tax assets | $ 336 |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity Related to Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized benefit - beginning of the year | $ 3,925 | $ 2,725 | $ 1,742 |
Gross increases-current period positions | 2,387 | 1,200 | 983 |
Gross decrease—prior period positions | (867) | ||
Unrecognized benefit - end of period | $ 5,445 | $ 3,925 | $ 2,725 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |||
Employer contribution to defined contribution savings plan | $ 4.8 | $ 4 | $ 2.9 |
Quarterly Financial Results (_3
Quarterly Financial Results (Unaudited) - Schedule of Quarterly Financial Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 186,186 | $ 173,621 | $ 163,255 | $ 151,798 | $ 144,022 | $ 131,826 | $ 122,576 | $ 114,556 | $ 674,860 | $ 512,980 | $ 375,612 |
Cost of revenue | 35,975 | 33,263 | 31,142 | 29,578 | 27,364 | 25,765 | 24,851 | 22,377 | 129,958 | 100,357 | 75,729 |
Gross profit | 150,211 | 140,358 | 132,113 | 122,220 | 116,658 | 106,061 | 97,725 | 92,179 | 544,902 | 412,623 | 299,883 |
Net loss | $ (10,302) | $ (14,987) | $ (17,357) | $ (11,100) | $ (11,492) | $ (18,663) | $ (18,225) | $ (15,448) | $ (53,746) | $ (63,828) | $ (39,714) |
Basic and diluted net loss per share | $ (0.24) | $ (0.35) | $ (0.41) | $ (0.27) | $ (0.29) | $ (0.48) | $ (0.48) | $ (0.41) | $ (1.28) | $ (1.66) | $ (1.08) |