Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | TWTR | |
Entity Registrant Name | TWITTER, INC. | |
Entity Central Index Key | 1418091 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 654,774,147 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $1,607,405 | $1,510,724 |
Short-term investments | 1,949,803 | 2,111,154 |
Accounts receivable, net of allowance for doubtful accounts of $7,864 and $5,507 as of March 31, 2015 and December 31, 2014, respectively | 415,479 | 418,454 |
Prepaid expenses and other current assets | 221,404 | 215,521 |
Total current assets | 4,194,091 | 4,255,853 |
Property and equipment, net | 599,751 | 557,019 |
Intangible assets | 99,317 | 105,011 |
Goodwill | 702,699 | 622,570 |
Other assets | 47,559 | 42,629 |
Total assets | 5,643,417 | 5,583,082 |
Current liabilities: | ||
Accounts payable | 48,384 | 53,241 |
Accrued and other current liabilities | 239,963 | 228,233 |
Capital leases, short-term | 105,948 | 112,320 |
Total current liabilities | 394,295 | 393,794 |
Convertible notes | 1,395,113 | 1,376,020 |
Capital leases, long-term | 99,693 | 118,950 |
Deferred and other long-term tax liabilities, net | 26,077 | 24,706 |
Other long-term liabilities | 41,142 | 43,209 |
Total liabilities | 1,956,320 | 1,956,679 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity: | ||
Preferred stock, $0.000005 par value-- 200,000 shares authorized; none issued and outstanding | ||
Common stock, $0.000005 par value-- 5,000,000 shares authorized; 653,141 and 642,385 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively | 3 | 3 |
Additional paid-in capital | 5,464,938 | 5,208,870 |
Accumulated other comprehensive loss | -42,956 | -10,024 |
Accumulated deficit | -1,734,888 | -1,572,446 |
Total stockholders' equity | 3,687,097 | 3,626,403 |
Total liabilities and stockholders' equity | $5,643,417 | $5,583,082 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $7,864 | $5,507 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 200,000,000 | 200,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued | 653,141,000 | 642,385,000 |
Common stock, shares outstanding | 653,141,000 | 642,385,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Revenue | $435,939 | $250,492 |
Costs and expenses | ||
Cost of revenue | 143,475 | 85,503 |
Research and development | 189,746 | 149,391 |
Sales and marketing | 183,557 | 106,235 |
General and administrative | 65,777 | 38,734 |
Total costs and expenses | 582,555 | 379,863 |
Loss from operations | -146,616 | -129,371 |
Interest expense | -24,319 | -3,102 |
Other income (expense), net | 9,125 | 1,333 |
Loss before income taxes | -161,810 | -131,140 |
Provision for income taxes | 632 | 1,222 |
Net loss | ($162,442) | ($132,362) |
Net loss per share attributable to common stockholders: | ||
Basic | ($0.25) | ($0.23) |
Diluted | ($0.25) | ($0.23) |
Weighted-average shares used to compute net loss per share attributable to common stockholders: | ||
Basic | 640,464 | 570,205 |
Diluted | 640,464 | 570,205 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | ($162,442) | ($132,362) |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on investments in available-for-sale securities, net of tax | 570 | -31 |
Foreign currency translation adjustment | -33,502 | 58 |
Net change in accumulated other comprehensive loss | -32,932 | 27 |
Comprehensive loss | ($195,374) | ($132,335) |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities | ||
Net loss | ($162,442) | ($132,362) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 67,864 | 39,951 |
Stock-based compensation expense | 182,805 | 126,369 |
Amortization of discount on convertible notes | 16,638 | |
Provision for bad debt | 2,792 | 778 |
Deferred income tax benefit | -1,942 | 10 |
Other non-cash adjustments | -6,411 | 2,255 |
Changes in assets and liabilities, net of assets acquired and liabilities assumed from acquisitions: | ||
Accounts receivable | -4,159 | 8,861 |
Prepaid expenses and other assets | -2,640 | -30,415 |
Accounts payable | -1,714 | -303 |
Accrued and other liabilities | 1,390 | 27,539 |
Net cash provided by operating activities | 92,181 | 42,683 |
Cash flows from investing activities | ||
Purchases of property and equipment | -67,735 | -49,620 |
Purchases of marketable securities | -729,793 | -470,750 |
Proceeds from maturities of marketable securities | 712,405 | 477,333 |
Proceeds from sales of marketable securities | 178,631 | 168,138 |
Changes in restricted cash | -3,362 | -12,138 |
Business combinations, net of cash acquired | -28,927 | |
Other investing activities | -2,000 | |
Net cash provided by investing activities | 59,219 | 112,963 |
Cash flows from financing activities | ||
Taxes paid related to net share settlement of equity awards | -6,174 | -15,140 |
Repayments of capital lease obligations | -33,546 | -21,521 |
Proceeds from exercise of stock options | 3,749 | 1,350 |
Other financing activities | -1,162 | |
Net cash used in financing activities | -35,971 | -36,473 |
Net increase in cash and cash equivalents | 115,429 | 119,173 |
Foreign exchange effect on cash and cash equivalents | -18,748 | 572 |
Cash and cash equivalents at beginning of period | 1,510,724 | 841,010 |
Cash and cash equivalents at end of period | 1,607,405 | 960,755 |
Supplemental disclosures of non-cash investing and financing activities | ||
Common stock issued in connection with acquisitions | 57,679 | |
Equipment purchases under capital leases | 4,821 | 16,957 |
Changes in accrued equipment purchases | $12,360 | $11,051 |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Note 1. Description of Business and Summary of Significant Accounting Policies |
Twitter, Inc. (“Twitter” or the “Company”) was incorporated in Delaware in April 2007, and is headquartered in San Francisco, California. Twitter offers products and services for users, advertisers, developers and platform and data partners. | |
Basis of Presentation | |
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and reflect, in management’s opinion, all adjustments of a normal, recurring nature that are necessary for the fair statement of the Company’s financial position, results of operations and cash flows for the interim periods, but are not necessarily indicative of the results expected for the full fiscal year or any other period. Certain prior period amounts have been reclassified to conform to the current period presentation. | |
The accompanying interim consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | |
Use of Estimates | |
The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, as well as related disclosure of contingent assets and liabilities. The Company bases its estimates on past experience and other assumptions that the Company believes are reasonable under the circumstances, and the Company evaluates these estimates on an ongoing basis. Actual results could differ materially from the Company’s estimates. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or operating results will be affected. | |
Recent Accounting Pronouncements | |
In May 2014, the FASB issued a new accounting standard update on revenue recognition from contracts with customers. The new guidance will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. According to the new guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration for which the Company expects to be entitled in exchange for those goods or services. This guidance will be effective for the Company beginning January 1, 2017 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted. The Company has not yet selected a transition method and is evaluating the impact of adopting this new accounting standard update on the financial statements and related disclosures. | |
In June 2014, the FASB issued a new accounting standard update on stock-based compensation when the terms of an award provide that a performance target could be achieved after the requisite service period. The new guidance requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. This guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings. Early adoption is permitted. Adoption of this new accounting standard update is expected to have no impact to the Company’s financial statements. | |
In February 2015, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard update on consolidation analysis. The new guidance amends the current consolidation guidance with respect to the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, but the guidance must be applied as of the beginning of the fiscal year containing the adoption date. Adoption of this new accounting standard update is not expected to have a material impact on the Company’s financial statements. | |
In April 2015, the FASB issued a new accounting standard update on the presentation of debt issuance costs. The new guidance requires the debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. Adoption of this new accounting standard update is not expected to have a material impact on the Company’s financial statements. | |
Cash_Cash_Equivalents_and_Shor
Cash, Cash Equivalents and Short-term Investments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Cash And Cash Equivalents [Abstract] | |||||||||||||||||
Cash, Cash Equivalents and Short-term Investments | Note 2. Cash, Cash Equivalents and Short-term Investments | ||||||||||||||||
Cash, cash equivalents and short-term investments consist of the following (in thousands): | |||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 198,102 | $ | 147,848 | |||||||||||||
Money market funds | 810,516 | 882,443 | |||||||||||||||
U.S. government and agency securities including treasury bills | 279,529 | 271,418 | |||||||||||||||
Corporate notes, certificates of deposit and commercial paper | 319,258 | 209,015 | |||||||||||||||
Total cash and cash equivalents | $ | 1,607,405 | $ | 1,510,724 | |||||||||||||
Short-term investments: | |||||||||||||||||
U.S. government and agency securities including treasury bills | $ | 927,087 | $ | 1,009,541 | |||||||||||||
Corporate notes, certificates of deposit and commercial paper | 1,022,716 | 1,101,613 | |||||||||||||||
Total short-term investments | $ | 1,949,803 | $ | 2,111,154 | |||||||||||||
The following tables summarize unrealized gains and losses related to available-for-sale securities classified as short-term investments on the Company’s consolidated balance sheets (in thousands): | |||||||||||||||||
31-Mar-15 | |||||||||||||||||
Gross | Gross | Gross | Aggregated | ||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Costs | Gains | Losses | Fair Value | ||||||||||||||
U.S. Government and agency securities including | $ | 927,170 | $ | 22 | $ | (105 | ) | $ | 927,087 | ||||||||
treasury bills | |||||||||||||||||
Corporate notes, certificates of deposit and | 1,023,007 | 44 | (335 | ) | 1,022,716 | ||||||||||||
commercial paper | |||||||||||||||||
Total available-for-sale securities classified as | $ | 1,950,177 | $ | 66 | $ | (440 | ) | $ | 1,949,803 | ||||||||
short-term investments | |||||||||||||||||
31-Dec-14 | |||||||||||||||||
Gross | Gross | Gross | Aggregated | ||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Costs | Gains | Losses | Fair Value | ||||||||||||||
U.S. Government and agency securities including | $ | 1,009,827 | $ | 8 | $ | (294 | ) | $ | 1,009,541 | ||||||||
treasury bills | |||||||||||||||||
Corporate notes, certificates of deposit and | 1,102,275 | 4 | (666 | ) | 1,101,613 | ||||||||||||
commercial paper | |||||||||||||||||
Total available-for-sale securities classified as | $ | 2,112,102 | $ | 12 | $ | (960 | ) | $ | 2,111,154 | ||||||||
short-term investments | |||||||||||||||||
There were no securities in a continuous loss position for 12 months or longer as of March 31, 2015 and December 31, 2014. | |||||||||||||||||
Investments are reviewed periodically to identify possible other-than-temporary impairments. No impairment loss has been recorded on the securities included in the tables above as the Company believes that the decrease in fair value of these securities is temporary and expects to recover up to (or beyond) the initial cost of investment for these securities. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Fair Value Measurements | ||||||||||||||||
Note 3. Fair Value Measurements | ||||||||||||||||
The Company measures its cash equivalents, short-term investments and derivative financial instruments at fair value. The Company classifies its cash equivalents, short-term investments and derivative financial instruments within Level 1 or Level 2 because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The fair value of the Company’s Level 1 financial assets is based on quoted market prices of the identical underlying security. The fair value of the Company’s Level 2 financial assets is based on inputs that are directly or indirectly observable in the market, including the readily-available pricing sources for the identical underlying security that may not be actively traded. | ||||||||||||||||
The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014 based on the three-tier fair value hierarchy (in thousands): | ||||||||||||||||
31-Mar-15 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 810,516 | $ | — | $ | — | $ | 810,516 | ||||||||
Treasury bills | 146,542 | — | — | 146,542 | ||||||||||||
U.S. government securities | — | 104,387 | — | 104,387 | ||||||||||||
Agency securities | — | 28,600 | — | 28,600 | ||||||||||||
Corporate notes | — | 2,549 | — | 2,549 | ||||||||||||
Commercial paper | — | 303,709 | — | 303,709 | ||||||||||||
Certificates of deposit | — | 13,000 | — | 13,000 | ||||||||||||
Short-term investments: | ||||||||||||||||
Treasury bills | 146,543 | — | — | 146,543 | ||||||||||||
U.S. government securities | — | 657,390 | — | 657,390 | ||||||||||||
Agency securities | — | 123,154 | — | 123,154 | ||||||||||||
Corporate notes | — | 525,212 | — | 525,212 | ||||||||||||
Commercial paper | — | 262,353 | — | 262,353 | ||||||||||||
Certificates of deposit | — | 235,151 | — | 235,151 | ||||||||||||
Other current assets: | ||||||||||||||||
Foreign currency forward contracts | — | 439 | — | 439 | ||||||||||||
Liabilities | ||||||||||||||||
Other current liabilities: | ||||||||||||||||
Foreign currency forward contracts | — | (98 | ) | — | (98 | ) | ||||||||||
Total | $ | 1,103,601 | $ | 2,255,846 | $ | — | $ | 3,359,447 | ||||||||
31-Dec-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 882,443 | $ | — | $ | — | $ | 882,443 | ||||||||
Treasury bills | 73,525 | — | — | 73,525 | ||||||||||||
U.S. government securities | — | 157,895 | — | 157,895 | ||||||||||||
Agency securities | — | 39,998 | — | 39,998 | ||||||||||||
Corporate notes | — | 13,684 | — | 13,684 | ||||||||||||
Commercial paper | — | 185,321 | — | 185,321 | ||||||||||||
Certificates of deposit | — | 10,010 | — | 10,010 | ||||||||||||
Short-term investments: | ||||||||||||||||
Treasury bills | 167,575 | — | — | 167,575 | ||||||||||||
U.S. government securities | — | 746,128 | — | 746,128 | ||||||||||||
Agency securities | — | 95,838 | — | 95,838 | ||||||||||||
Corporate notes | — | 551,604 | — | 551,604 | ||||||||||||
Commercial paper | — | 300,589 | — | 300,589 | ||||||||||||
Certificates of deposit | — | 249,420 | — | 249,420 | ||||||||||||
Total | $ | 1,123,543 | $ | 2,350,487 | $ | — | $ | 3,474,030 | ||||||||
In 2014, the Company issued $935.0 million principal amount of 0.25% convertible senior notes due in 2019 (the “2019 Notes”) and $954.0 million principal amount of 1.00% convertible senior notes due in 2021 (the “2021 Notes” and together with the 2019 Notes, the “Notes”) in a private placement to qualified institutional buyers pursuant to Rule144A under the Securities Act of 1933, as amended. Refer to Note 8 – Convertible Senior Notes for further details on the Notes. The estimated fair value of the 2019 Notes and 2021 Notes based on a market approach as of March 31, 2015 was approximately $920.5 million and $937.8 million respectively, which represents a Level 2 valuation. The estimated fair value was determined based on the quoted closing price of the Notes in an over-the-counter market on March 31, 2015. | ||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||
The Company enters into foreign currency forward contracts with financial institutions to reduce the risk that its earnings may be adversely affected by the impact of exchange rate fluctuations on monetary assets or liabilities denominated in currencies other than the functional currency of a subsidiary. These contracts do not subject the Company to material balance sheet risk due to exchange rate movements because gains and losses on these derivatives are intended to offset gains and losses on the hedged foreign currency denominated assets and liabilities. These foreign currency forward contracts are not designated as hedging instruments. | ||||||||||||||||
The Company recognizes these derivative instruments as either assets or liabilities in the consolidated balance sheets at fair value based on a Level 2 valuation. The Company records changes in the fair value (i.e., gains or losses) of the derivatives as other income (expense), net in the consolidated statements of operations. The notional principal of foreign currency forward contracts outstanding was equivalent to $128.5 million at March 31, 2015. There were no outstanding foreign currency forward contracts as of December 31, 2014. | ||||||||||||||||
The fair values of outstanding derivative instruments for the periods presented on a gross basis are as follows (in thousands): | ||||||||||||||||
March 31, | December 31, | |||||||||||||||
Balance Sheet Location | 2015 | 2014 | ||||||||||||||
Assets | ||||||||||||||||
Foreign currency forward contracts not designated as hedging instruments | Other current assets | $ | 439 | — | ||||||||||||
Liabilities | ||||||||||||||||
Foreign currency forward contracts not designated as hedging instruments | Other current liabilities | 98 | — | |||||||||||||
Total | $ | 341 | $ | — | ||||||||||||
The realized gains and losses on the foreign currency forward contracts were not significant in the three months ended March 31, 2015. The Company did not have any derivative financial instruments in the three months ended March 31, 2014. |
Property_and_Equipment_Net
Property and Equipment, Net | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property Plant And Equipment [Abstract] | |||||||||
Property and Equipment, Net | Note 4. Property and Equipment, Net | ||||||||
The following table presents the detail of property and equipment, net for the periods presented (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Property and equipment, net | |||||||||
Equipment | $ | 611,086 | $ | 584,561 | |||||
Furniture and leasehold improvements | 147,831 | 131,851 | |||||||
Capitalized software | 112,535 | 82,052 | |||||||
Construction in progress | 115,656 | 89,806 | |||||||
Total | 987,108 | 888,270 | |||||||
Less: Accumulated depreciation and | (387,357 | ) | (331,251 | ) | |||||
amortization | |||||||||
Property and equipment, net | $ | 599,751 | $ | 557,019 | |||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||
Goodwill and Intangible Assets | Note 5. Goodwill and Intangible Assets | ||||||||||||
The following table presents the goodwill activities for the periods presented (in thousands): | |||||||||||||
Goodwill | |||||||||||||
Balance as of December 31, 2014 | $ | 622,570 | |||||||||||
2015 acquisitions | 80,471 | ||||||||||||
Foreign currency translation adjustment | (342 | ) | |||||||||||
Balance as of March 31, 2015 | $ | 702,699 | |||||||||||
For each of the period presented, gross goodwill balance equaled the net balance since no impairment charges have been recorded. | |||||||||||||
The following table presents the detail of intangible assets for the periods presented (in thousands): | |||||||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||||||
Value | Amortization | Value | |||||||||||
March 31, 2015: | |||||||||||||
Patents and developed technologies | $ | 110,152 | $ | (31,365 | ) | $ | 78,787 | ||||||
Publisher and advertiser relationships | 32,000 | (12,223 | ) | 19,777 | |||||||||
Assembled workforce | 1,960 | (1,522 | ) | 438 | |||||||||
Other intangible assets | 1,100 | (785 | ) | 315 | |||||||||
Total | $ | 145,212 | $ | (45,895 | ) | $ | 99,317 | ||||||
December 31, 2014: | |||||||||||||
Patents and developed technologies | $ | 105,052 | $ | (23,165 | ) | $ | 81,887 | ||||||
Publisher and advertiser relationships | 32,000 | (9,831 | ) | 22,169 | |||||||||
Assembled workforce | 1,960 | (1,457 | ) | 503 | |||||||||
Other intangible assets | 1,100 | (648 | ) | 452 | |||||||||
Total | $ | 140,112 | $ | (35,101 | ) | $ | 105,011 | ||||||
Amortization expense associated with intangible assets for the three months ended March 31, 2015 and 2014 was $10.8 million and $6.2 million, respectively. | |||||||||||||
Estimated future amortization expense as of March 31, 2015 is as follows (in thousands): | |||||||||||||
Remainder of 2015 | $ | 29,201 | |||||||||||
2016 | 26,811 | ||||||||||||
2017 | 11,624 | ||||||||||||
2018 | 9,832 | ||||||||||||
2019 | 5,430 | ||||||||||||
Thereafter | 16,419 | ||||||||||||
Total | $ | 99,317 | |||||||||||
Accrued_and_Other_Current_Liab
Accrued and Other Current Liabilities | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Statement Of Financial Position [Abstract] | |||||||||
Accrued and Other Current Liabilities | Note 6. Accrued and other current liabilities | ||||||||
The following table presents the detail of accrued and other current liabilities for the periods presented (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accrued compensation | $ | 80,517 | $ | 68,000 | |||||
Accrued fixed assets and maintenance | 24,809 | 13,459 | |||||||
Accrued publisher payments | 24,597 | 27,996 | |||||||
Accrued sales and marketing expenses | 10,924 | 25,264 | |||||||
Accrued other | 99,116 | 93,514 | |||||||
Total | $ | 239,963 | $ | 228,233 | |||||
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Note 7. Acquisitions |
During the three months ended March 31, 2015, the Company acquired two companies, which were accounted for as business combinations. The total purchase price of $86.6 million (paid in shares of the Company’s common stock having a total fair value of $57.7 million and cash of $28.9 million) for these acquisitions was allocated as follows: $5.1 million to developed technologies, $2.8 million to net tangible assets acquired based on their estimated fair value on the acquisition date, $1.8 million to deferred tax liability, and the excess $80.5 million of the purchase price over the fair value of net assets acquired to goodwill. Goodwill resulting from these acquisitions is not expected to be deductible for U.S. income tax purposes. Developed technologies will be amortized on a straight-line basis over their estimated useful lives of 12 months. | |
In connection with both of the acquisitions completed during the three months ended March 31, 2015, the Company also agreed to issue shares of the Company’s common stock with a total fair value up to $38.2 million, which is to be paid to certain employees of the acquired entities contingent upon their continued employment with the Company. The Company will recognize compensation expense related to the equity consideration over the requisite service periods of up to 48 months from the respective acquisition dates on a straight-line basis. In addition, the Company will recognize approximately $3.0 million of stock-based compensation expense in relation to assumed stock options over the remaining requisite service periods of up to 45 months from the respective acquisition dates on a straight-line basis, excluding the fair value of the assumed stock options that was allocated and recorded as part of the purchase price for the portion of the service period completed prior to the closing of the applicable acquisition. | |
The results of operations for each of these acquisitions have been included in the Company’s consolidated statements of operations since the date of acquisition. Pro forma revenue and results of operations for these acquisitions have not been presented because they do not have a material impact on the consolidated revenue and results of operations of the Company, either individually or in aggregate. | |
Convertible_Senior_Notes
Convertible Senior Notes | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Convertible Senior Notes | Note 8. Convertible Senior Notes | ||||||||||||||||
In September 2014, the Company issued $900.0 million principal amount of 2019 Notes and $900.0 million principal amount of 2021 Notes in a private placement to qualified institutional buyers pursuant to Rule144A under the Securities Act of 1933, as amended. In October 2014, pursuant to the exercise of the overallotment option by the initial purchasers, the Company issued an additional $35.0 million principal amount of 2019 Notes and $54.0 million principal amount of 2021 Notes. The total net proceeds from this offering were approximately $1.86 billion, after deducting $28.3 million of initial purchasers’ discount and $0.5 million debt issuance costs in connection with the 2019 Notes and the 2021 Notes. | |||||||||||||||||
The interest rates are fixed at 0.25% and 1.00% per annum and are payable semi-annually in arrears on March 15 and September 15 of each year, commencing on March 15, 2015. For the three months ended March 31, 2015, the Company recognized $1.3 million of interest expense related to the amortization of initial purchasers’ discount and debt issuance costs, and $3.0 million of accrued coupon interest expense. | |||||||||||||||||
Each $1,000 of principal of these notes will initially be convertible into 12.8793 shares of the Company’s common stock, which is equivalent to an initial conversion price of approximately $77.64 per share, subject to adjustment upon the occurrence of specified events. Holders of these notes may convert their notes at their option at any time until close of business on the second scheduled trading day immediately preceding the relevant maturity date which is March 15, 2019 for the 2019 Notes and March 15, 2021 for the 2021 Notes. Further, holders of each of these notes may convert their notes at their option prior to the respective dates above, only under the following circumstances: | |||||||||||||||||
1) | during any calendar quarter commencing after the calendar quarter ending on December 31, 2014 (and only during such calendar quarter), if the last reported sale price of Twitter’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 for the relevant series of notes 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 (as defined in the related Indenture) per $1,000 principal amount of 2019 notes or 2021 notes, as applicable, for each trading day of the measurement period was less than 98% of the product of the last reported sale price of Twitter’s common stock and the conversion rate for the notes of the relevant series on each such trading day; or | ||||||||||||||||
3) | upon the occurrence of certain specified corporate events. | ||||||||||||||||
Upon conversion of the 2019 Notes and 2021 Notes, the Company will pay or deliver, as the case may be, cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company’s election. If the Company satisfies its conversion obligation solely in cash or through payment and delivery, as the case may be, of a combination of cash and shares of its common stock, the amount of cash and shares of common stock, if any, due upon conversion will be based on a daily conversion value (as described herein) calculated on a proportionate basis for each trading day in a 30 trading day observation period. | |||||||||||||||||
If a fundamental change (as defined in the relevant indenture governing the applicable series of Notes) occurs prior to the maturity date, holders of the 2019 Notes and 2021 Notes may require the Company to repurchase all or a portion of their notes for cash at a repurchase price equal to 100% of the principal amount of the notes, plus any accrued and unpaid interest to, but excluding, the repurchase date. In addition, if specific corporate events occur prior to the applicable maturity date, the Company will be required to increase the conversion rate for holders who elect to convert their notes in certain circumstances. | |||||||||||||||||
In accordance with accounting guidance on embedded conversion features, the Company valued and bifurcated the conversion option associated with the 2019 Notes and 2021 Notes from the respective host debt instrument, which is referred to as debt discount, and initially recorded the conversion option of $222.8 million for the 2019 Notes and $283.3 million for the 2021 Notes in stockholders’ equity. The resulting debt discounts on the 2019 Notes and 2021 Notes are being amortized to interest expense at an effective interest rate of 5.75% and 6.25%, respectively, over the contractual terms of the notes. The Company allocated $0.1 million of debt issuance costs to the equity component, and the remaining debt issuance costs of $0.4 million are being amortized to interest expense. | |||||||||||||||||
For the three months ended March 31, 2015, the Company recognized $17.9 million of interest expense related to the amortization of the debt discount. As of March 31, 2015, the net carrying value, net of the initial purchasers’ discount and debt discount, of 2019 Notes and 2021 Notes was $720.3 million and $674.8 million, respectively. | |||||||||||||||||
The Notes consisted of the following (in thousands): | |||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||
2019 Notes | 2021 Notes | 2019 Notes | 2021 Notes | ||||||||||||||
Principal amounts: | |||||||||||||||||
Principal | $ | 935,000 | $ | 954,000 | $ | 935,000 | $ | 954,000 | |||||||||
Unamortized initial purchasers' discount and debt discount (1) | (214,685 | ) | (279,202 | ) | (225,104 | ) | (287,876 | ) | |||||||||
Net carrying amount | $ | 720,315 | $ | 674,798 | $ | 709,896 | $ | 666,124 | |||||||||
Carrying amount of the equity component (2) | $ | 222,826 | $ | 283,283 | $ | 222,826 | $ | 283,283 | |||||||||
-1 | Included in the consolidated balance sheets within convertible notes and amortized over the remaining lives of the Notes. | ||||||||||||||||
-2 | Included in the consolidated balance sheets within additional paid-in capital. | ||||||||||||||||
As of March 31, 2015, the remaining life of the 2019 Notes and 2021 Notes is approximately 53 months and 77 months, respectively. | |||||||||||||||||
Concurrently with the offering of these notes in September and October 2014, the Company entered into convertible note hedge transactions with certain bank counterparties whereby the Company has the option to purchase initially (subject to adjustment for certain specified events) a total of approximately 24.3 million shares of its common stock at a price of approximately $77.64 per share. The total cost of the convertible note hedge transactions was $407.2 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 24.3 million shares of the Company’s common stock at a price of $105.28. The Company received $289.3 million in cash proceeds 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 $77.64 to $105.28 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 incurred in connection with the convertible note hedge and warrant transactions was recorded as a reduction to additional paid-in capital in the consolidated balance sheet. |
Net_Loss_Per_Share
Net Loss Per Share | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Net Loss Per Share | Note 9. Net Loss per Share | ||||||||
Basic net loss per share is computed by dividing total net loss attributable to common stockholders by the weighted-average common shares outstanding. The weighted-average common shares outstanding is adjusted for shares subject to repurchase such as unvested restricted stock granted to employees in connection with acquisitions, contingently returnable shares and escrowed shares supporting indemnification obligations that are issued in connection with acquisitions and unvested stock options exercised. | |||||||||
Diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted-average number of common shares outstanding including potential dilutive common stock instruments. In the three months ended March 31, 2015 and 2014, the Company’s potential common stock instruments such as stock options, Restricted Stock Units (“RSUs”), shares to be purchased under the 2013 Employee Stock Purchase Plan (“ESPP”), shares subject to repurchases, conversion feature of the Notes and the warrants were not included in the computation of diluted loss per share as the effect of including these shares in the calculation would have been anti-dilutive. | |||||||||
The following table presents the calculation of basic and diluted net loss per share for periods presented (in thousands, except per share data). | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net loss | $ | (162,442 | ) | $ | (132,362 | ) | |||
Basic shares: | |||||||||
Weighted-average common shares outstanding | 648,950 | 579,128 | |||||||
Weighted-average restricted stock | (8,486 | ) | (8,923 | ) | |||||
subject to repurchase | |||||||||
Weighted-average shares used to compute | 640,464 | 570,205 | |||||||
basic net loss per share | |||||||||
Diluted shares: | |||||||||
Weighted-average shares used to compute | 640,464 | 570,205 | |||||||
diluted net loss per share | |||||||||
Net loss per share attributable to common | |||||||||
stockholders: | |||||||||
Basic | $ | (0.25 | ) | $ | (0.23 | ) | |||
Diluted | $ | (0.25 | ) | $ | (0.23 | ) | |||
The following number of potential shares of the Company’s common stock at the end of each period were excluded from the calculation of diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive for the periods presented (in thousands): | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
RSUs | 61,425 | 83,232 | |||||||
Warrants | 24,329 | 117 | |||||||
Stock options | 18,069 | 39,796 | |||||||
Shares subject to repurchase | 8,516 | 7,898 | |||||||
Employee stock purchase plan | 1,224 | 1,868 | |||||||
Since the Company expects to settle the principal amount of the outstanding Notes in cash, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread of 24.3 million shares will have a dilutive impact on diluted net income per share of common stock when the average market price of the Company’s common stock for a given period exceeds the conversion price of $77.64 per share for the Notes. | |||||||||
If the average market price of the Company’s common stock exceeds the exercise price of the warrants, $105.28, the warrants will have a dilutive effect on the earnings per share assuming that the Company is profitable. Since the average market price of the Company’s common stock is below $105.28, the warrants are anti-dilutive. | |||||||||
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Stockholders Equity Note [Abstract] | |||||||||
Stockholders' Equity | Note 10. Stockholders’ Equity | ||||||||
Restricted Common Stock | |||||||||
The Company has granted restricted common stock to certain continuing employees in connection with the acquisitions. Vesting of this stock is dependent on the respective employee’s continued employment at the Company during the requisite service period, which is generally two to four years from the issuance date, and the Company has the right to repurchase the unvested shares upon termination of employment. The fair value of the restricted common stock issued to employees is recorded as compensation expense on a straight-line basis over the requisite service period. | |||||||||
The activities for the restricted common stock issued to employees for the three months ended March 31, 2015 are summarized as follows (in thousands, except per share data): | |||||||||
Weighted-Average | |||||||||
Number of | Grant-Date Fair | ||||||||
Shares | Value Per Share | ||||||||
Unvested restricted common stock at December 31, 2014 | 4,955 | $ | 25.62 | ||||||
Granted | 874 | $ | 43.72 | ||||||
Vested | (492 | ) | $ | 21.15 | |||||
Unvested restricted common stock at March 31, 2015 | 5,337 | $ | 28.99 | ||||||
As of March 31, 2015, the total compensation cost related to unvested restricted common stock not yet recognized was $112.7 million. This amount is expected to be recognized over a weighted-average period of 2.6 years. | |||||||||
Equity Incentive Plans | |||||||||
The Company’s 2013 Equity Incentive Plan became effective upon the completion of the Company’s initial public offering and serves as the successor to the 2007 Equity Incentive Plan. Initially, 68.3 million shares were reserved under the 2013 Equity Plan and any shares subject to options or other similar awards granted under the 2007 Equity Incentive Plan that expire, are forfeited, are repurchased by the Company or otherwise terminate unexercised will become available under the 2013 Equity Incentive Plan. The number of shares of the Company’s common stock available for issuance under the 2013 Equity Incentive Plan were and will be increased on the first day of each fiscal year beginning with the 2014 fiscal year, in an amount equal to the least of (i) 60,000,000 shares, (ii) 5% of the outstanding shares on the last day of the immediately preceding fiscal year or (iii) such number of shares determined by the Company’s Board of Directors. No additional shares will be issued under the 2007 Equity Incentive Plan. | |||||||||
Options granted under the Company’s Equity Incentive Plans generally expire 10 years after the grant date and the Company issues new shares to satisfy stock option exercises. RSUs are agreements to issue shares of the Company’s stock at the time the award vests. Options and RSUs issued to participants under the Equity Incentive Plans generally vest ratably over four years contingent upon employment or services on the vesting date. The Company is increasingly granting awards that begin vesting several quarters after the grant date. In addition, employees generally sell a portion of the shares that they receive upon vesting of RSUs in order to satisfy any tax withholding requirements. | |||||||||
Employee Stock Purchase Plan | |||||||||
The number of shares available for sale under the ESPP were and will be increased on the first day of each fiscal year beginning with the 2014 fiscal year, in an amount equal to the least of (i) 11.3 million shares; (ii) 1% of the outstanding shares of the Company’s common stock as of the last day of the immediately preceding fiscal year; or (iii) such other amount as determined by the Company’s Board of Directors. | |||||||||
As of March 31, 2015, the total compensation costs related to the current ESPP plans not yet recognized were $10.6 million. This amount is expected to be recognized over a weighted-average period of 0.5 years. | |||||||||
Stock Option Activity | |||||||||
The number of stock options outstanding was 18.1 million and 20.4 million as of March 31, 2015 and December 31, 2014, respectively. The reduction in outstanding options during the three months ended March 31, 2015 was mainly due to exercises of stock options. The total intrinsic value of stock options exercised during the three months ended March 31, 2015 and 2014 was $101.2 million and $133.9 million, respectively. | |||||||||
As of March 31, 2015, the total compensation costs related to stock options not yet recognized was $31.0 million. This amount is expected to be recognized over a weighted-average period of 2.2 years. | |||||||||
RSU Activity | |||||||||
The following table summarizes the activity related to the Company’s RSUs for the three months ended March 31, 2015. For purposes of this table, vested RSUs represent the shares for which the service condition had been fulfilled as of each respective date (in thousands, except per share data): | |||||||||
RSUs Outstanding | |||||||||
Weighted- | |||||||||
Average Grant- | |||||||||
Date Fair Value | |||||||||
Shares | Per Share | ||||||||
Unvested and outstanding at December 31, 2014 | 64,135 | $ | 29.08 | ||||||
Granted | 6,166 | $ | 47.68 | ||||||
Vested | (6,238 | ) | $ | 27.22 | |||||
Canceled | (2,638 | ) | $ | 27.03 | |||||
Unvested and outstanding at March 31, 2015 | 61,425 | $ | 31.23 | ||||||
The fair value as of the respective vesting dates of RSUs that vested during the three months ended March 31, 2015 and 2014 was $256.3 million and $956.4 million, respectively. | |||||||||
As of March 31, 2015, the total compensation cost related to unvested RSUs not yet recognized was $1.34 billion. This amount is expected to be recognized over a weighted-average period of 2.9 years. | |||||||||
Stock-Based Compensation Expense | |||||||||
Stock-based compensation expense is allocated based on the cost center to which the award holder belongs. Total stock-based compensation expense by function is as follows (in thousands): | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Cost of revenue | $ | 12,886 | $ | 9,831 | |||||
Research and development | 103,036 | 78,318 | |||||||
Sales and marketing | 42,658 | 27,801 | |||||||
General and administrative | 24,225 | 10,419 | |||||||
Total | $ | 182,805 | $ | 126,369 | |||||
The Company capitalized $16.5 million and $6.7 million of stock-based compensation expense associated with the cost for developing software for internal use in the three months ended March 31, 2015 and 2014, respectively. | |||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes |
The Company is subject to taxation in the United States and various state and foreign jurisdictions. Earnings from non-US activities are subject to local country income tax. The material jurisdictions in which the Company is subject to potential examination by taxing authorities include the United States, California and Ireland. The Company is currently under a Federal income tax examination by the Internal Revenue Service (IRS) for tax years 2011 and 2012 and under examination in California for tax years 2010 and 2011. The Company believes that adequate amounts have been reserved in these jurisdictions. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries as such earnings are to be reinvested indefinitely outside the U.S. The Company computes its quarterly income tax provision by using a forecasted annual effective tax rate and adjusts for any discrete items arising during the quarter. | |
The Company recorded an income tax provision of $0.6 million and $1.2 million for the three months ended March 31, 2015 and 2014, respectively. The income tax provision decreased in the three months ended March 31, 2015 compared to the same period last year, primarily due to the deferred income tax benefits arising from acquisitions, partially offset by increased foreign income tax expenses. As of March 31, 2015, based on the available objective evidence, management believes it is more likely than not that the tax benefits of the U.S. losses incurred during the three months ended March 31, 2015 will not be realized by the end of the 2015 fiscal year. Accordingly, the Company did not record the tax benefits of the U.S. losses incurred during the first quarter ended March 31, 2015. The primary difference between the effective tax rate and the federal statutory tax rate relates to the valuation allowances on the Company’s net operating losses and foreign tax rate differences. | |
During the three months ended March 31, 2015, the amount of gross unrecognized tax benefits increased by $23.6 million. As of March 31, 2015, the Company has $206.1 million of unrecognized tax benefits which, if recognized, will not affect the annual effective tax rate as these unrecognized tax benefits would increase deferred tax assets which would be subject to a full valuation allowance. | |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies |
Credit Facility | |
The Company entered into a revolving credit agreement with certain lenders in 2013, which provided for a $1.0 billion revolving unsecured credit facility maturing on October 22, 2018. Loans under the credit facility bear interest, at the Company’s option, at (i) a base rate based on the highest of the prime rate, the federal funds rate plus 0.50% and an adjusted LIBOR rate for a one-month interest period plus 1.00%, in each case plus a margin ranging from 0.00% to 0.75% or (ii) an adjusted LIBOR rate plus a margin ranging from 1.00% to 1.75%. This margin is determined based on the total leverage ratio for the preceding four fiscal quarter period. The Company is obligated to pay other customary fees for a credit facility of this size and type, including an upfront fee and an unused commitment fee. Obligations under the credit facility are guaranteed by one of the Company’s wholly-owned subsidiaries. In addition, the credit facility contains restrictions on payments including cash payments of dividends. | |
The revolving credit agreement was amended in September 2014 to increase the amount of indebtedness that the Company may incur and increase the amount of restricted payments that the Company may make. This amendment to the revolving credit agreement also provides that if the Company’s total leverage ratio exceeds 2.5:1.0 and if the amount outstanding under the credit facility exceeds $500.0 million, or 50% of the amount that may be borrowed under the credit facility, the credit facility will become secured by substantially all of the Company’s and certain of its subsidiaries’ assets, subject to limited exceptions. As of March 31, 2015, no amounts had been drawn under the credit facility. | |
Leases | |
The Company has entered into various non-cancelable operating lease agreements for certain offices and data center facilities with contractual lease periods expiring between 2015 and 2026. Under the terms of certain leases, the Company is committed to pay for certain taxes, insurance, maintenance and management expenses. Certain of these arrangements have free rent periods or escalating rent payment provisions, and the Company recognizes rent expense under such arrangements on a straight-line basis. | |
Legal Proceedings | |
The Company is currently involved in, and will likely in the future be involved in, legal proceedings, claims and investigations in the normal course of business. Legal fees and other costs associated with such actions are expensed as incurred. The Company assesses, in conjunction with its legal counsel, the need to record a liability for litigation and contingencies. Litigation accruals are recorded when and if it is determined that a loss related matter is both probable and reasonably estimable. Material loss contingencies that are reasonably possible of occurrence, if any, are subject to disclosure. As of March 31, 2015 and December 31, 2014, there was no litigation or contingency with at least a reasonable possibility of a material loss. No material losses have been recorded during three months ended March 31, 2015 and 2014 with respect to litigation or loss contingencies. | |
Indemnification | |
In the ordinary course of business, the Company often includes standard indemnification provisions in its arrangements with its customers, partners, suppliers and vendors. Pursuant to these provisions, the Company may be obligated to indemnify such parties for losses or claims suffered or incurred in connection with its service, breach of representations or covenants, intellectual property infringement or other claims made against such parties. These provisions may limit the time within which an indemnification claim can be made. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. The Company has never incurred significant expense defending its licensees against third party claims, nor has it ever incurred significant expense under its standard service warranties or arrangements with its customers, partners, suppliers and vendors. Accordingly, the Company had no liabilities recorded for these provisions as of March 31, 2015 and December 31, 2014. |
Operations_by_Geographic_Area
Operations by Geographic Area | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Operations by Geographic Area | |||||||||
Note 13. Operations by Geographic Area | |||||||||
Revenue | |||||||||
Revenue by geography is based on the billing addresses of the customers. The following table sets forth revenue by services and revenue by geographic area (in thousands): | |||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Advertising services | $ | 388,211 | $ | 226,051 | |||||
Data licensing and other | 47,728 | 24,441 | |||||||
Total revenue | $ | 435,939 | $ | 250,492 | |||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Revenue: | |||||||||
United States | $ | 288,928 | $ | 180,039 | |||||
International | 147,011 | 70,453 | |||||||
Total revenue | $ | 435,939 | $ | 250,492 | |||||
No individual country from the international markets contributed in excess of 10% of the total revenue for the three months ended March 31, 2015 and 2014. | |||||||||
Long-Lived Assets | |||||||||
The following table sets forth long-lived assets by geographic area (in thousands): | |||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Property and equipment, net: | |||||||||
United States | $ | 565,742 | $ | 523,810 | |||||
International | 34,009 | 33,209 | |||||||
Total property and equipment, net | $ | 599,751 | $ | 557,019 | |||||
Subsequent_Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14. Subsequent Events |
On April 28, 2015, the Company entered into a definitive agreement to acquire TellApart, Inc., a privately-held marketing technology company providing retailers and e-commerce advertisers with unique cross-device retargeting capabilities through dynamic product ads and email marketing. Under the terms of the agreement, the Company will acquire all of the outstanding equity of TellApart, Inc., for approximately 12.6 million shares of its common stock assuming the closing price of the Company's common stock on the closing date is the same as on April 28, 2015. The transaction is expected to close on or around June 1, 2015. |
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”). The unaudited interim consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and reflect, in management’s opinion, all adjustments of a normal, recurring nature that are necessary for the fair statement of the Company’s financial position, results of operations and cash flows for the interim periods, but are not necessarily indicative of the results expected for the full fiscal year or any other period. Certain prior period amounts have been reclassified to conform to the current period presentation. | |
The accompanying interim consolidated financial statements and these related notes should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. | |
Use of Estimates | Use of Estimates |
The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, as well as related disclosure of contingent assets and liabilities. The Company bases its estimates on past experience and other assumptions that the Company believes are reasonable under the circumstances, and the Company evaluates these estimates on an ongoing basis. Actual results could differ materially from the Company’s estimates. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or operating results will be affected. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
In May 2014, the FASB issued a new accounting standard update on revenue recognition from contracts with customers. The new guidance will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. According to the new guidance, revenue is recognized when promised goods or services are transferred to customers in an amount that reflects the consideration for which the Company expects to be entitled in exchange for those goods or services. This guidance will be effective for the Company beginning January 1, 2017 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. Early adoption is not permitted. The Company has not yet selected a transition method and is evaluating the impact of adopting this new accounting standard update on the financial statements and related disclosures. | |
In June 2014, the FASB issued a new accounting standard update on stock-based compensation when the terms of an award provide that a performance target could be achieved after the requisite service period. The new guidance requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. This guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings. Early adoption is permitted. Adoption of this new accounting standard update is expected to have no impact to the Company’s financial statements. | |
In February 2015, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard update on consolidation analysis. The new guidance amends the current consolidation guidance with respect to the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, but the guidance must be applied as of the beginning of the fiscal year containing the adoption date. Adoption of this new accounting standard update is not expected to have a material impact on the Company’s financial statements. | |
In April 2015, the FASB issued a new accounting standard update on the presentation of debt issuance costs. The new guidance requires the debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. This guidance will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. Adoption of this new accounting standard update is not expected to have a material impact on the Company’s financial statements. | |
Cash_Cash_Equivalents_and_Shor1
Cash, Cash Equivalents and Short-term Investments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Cash And Cash Equivalents [Abstract] | |||||||||||||||||
Cash, Cash and Equivalents and Short-term Investments | Cash, cash equivalents and short-term investments consist of the following (in thousands): | ||||||||||||||||
March 31, | December 31, | ||||||||||||||||
2015 | 2014 | ||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||
Cash | $ | 198,102 | $ | 147,848 | |||||||||||||
Money market funds | 810,516 | 882,443 | |||||||||||||||
U.S. government and agency securities including treasury bills | 279,529 | 271,418 | |||||||||||||||
Corporate notes, certificates of deposit and commercial paper | 319,258 | 209,015 | |||||||||||||||
Total cash and cash equivalents | $ | 1,607,405 | $ | 1,510,724 | |||||||||||||
Short-term investments: | |||||||||||||||||
U.S. government and agency securities including treasury bills | $ | 927,087 | $ | 1,009,541 | |||||||||||||
Corporate notes, certificates of deposit and commercial paper | 1,022,716 | 1,101,613 | |||||||||||||||
Total short-term investments | $ | 1,949,803 | $ | 2,111,154 | |||||||||||||
Summary of Unrealized Gains and Losses Related to Available-for-Sale Securities Classified as Short-term Investments | The following tables summarize unrealized gains and losses related to available-for-sale securities classified as short-term investments on the Company’s consolidated balance sheets (in thousands): | ||||||||||||||||
31-Mar-15 | |||||||||||||||||
Gross | Gross | Gross | Aggregated | ||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Costs | Gains | Losses | Fair Value | ||||||||||||||
U.S. Government and agency securities including | $ | 927,170 | $ | 22 | $ | (105 | ) | $ | 927,087 | ||||||||
treasury bills | |||||||||||||||||
Corporate notes, certificates of deposit and | 1,023,007 | 44 | (335 | ) | 1,022,716 | ||||||||||||
commercial paper | |||||||||||||||||
Total available-for-sale securities classified as | $ | 1,950,177 | $ | 66 | $ | (440 | ) | $ | 1,949,803 | ||||||||
short-term investments | |||||||||||||||||
31-Dec-14 | |||||||||||||||||
Gross | Gross | Gross | Aggregated | ||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Costs | Gains | Losses | Fair Value | ||||||||||||||
U.S. Government and agency securities including | $ | 1,009,827 | $ | 8 | $ | (294 | ) | $ | 1,009,541 | ||||||||
treasury bills | |||||||||||||||||
Corporate notes, certificates of deposit and | 1,102,275 | 4 | (666 | ) | 1,101,613 | ||||||||||||
commercial paper | |||||||||||||||||
Total available-for-sale securities classified as | $ | 2,112,102 | $ | 12 | $ | (960 | ) | $ | 2,111,154 | ||||||||
short-term investments | |||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015 and December 31, 2014 based on the three-tier fair value hierarchy (in thousands): | |||||||||||||||
31-Mar-15 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 810,516 | $ | — | $ | — | $ | 810,516 | ||||||||
Treasury bills | 146,542 | — | — | 146,542 | ||||||||||||
U.S. government securities | — | 104,387 | — | 104,387 | ||||||||||||
Agency securities | — | 28,600 | — | 28,600 | ||||||||||||
Corporate notes | — | 2,549 | — | 2,549 | ||||||||||||
Commercial paper | — | 303,709 | — | 303,709 | ||||||||||||
Certificates of deposit | — | 13,000 | — | 13,000 | ||||||||||||
Short-term investments: | ||||||||||||||||
Treasury bills | 146,543 | — | — | 146,543 | ||||||||||||
U.S. government securities | — | 657,390 | — | 657,390 | ||||||||||||
Agency securities | — | 123,154 | — | 123,154 | ||||||||||||
Corporate notes | — | 525,212 | — | 525,212 | ||||||||||||
Commercial paper | — | 262,353 | — | 262,353 | ||||||||||||
Certificates of deposit | — | 235,151 | — | 235,151 | ||||||||||||
Other current assets: | ||||||||||||||||
Foreign currency forward contracts | — | 439 | — | 439 | ||||||||||||
Liabilities | ||||||||||||||||
Other current liabilities: | ||||||||||||||||
Foreign currency forward contracts | — | (98 | ) | — | (98 | ) | ||||||||||
Total | $ | 1,103,601 | $ | 2,255,846 | $ | — | $ | 3,359,447 | ||||||||
31-Dec-14 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Cash equivalents: | ||||||||||||||||
Money market funds | $ | 882,443 | $ | — | $ | — | $ | 882,443 | ||||||||
Treasury bills | 73,525 | — | — | 73,525 | ||||||||||||
U.S. government securities | — | 157,895 | — | 157,895 | ||||||||||||
Agency securities | — | 39,998 | — | 39,998 | ||||||||||||
Corporate notes | — | 13,684 | — | 13,684 | ||||||||||||
Commercial paper | — | 185,321 | — | 185,321 | ||||||||||||
Certificates of deposit | — | 10,010 | — | 10,010 | ||||||||||||
Short-term investments: | ||||||||||||||||
Treasury bills | 167,575 | — | — | 167,575 | ||||||||||||
U.S. government securities | — | 746,128 | — | 746,128 | ||||||||||||
Agency securities | — | 95,838 | — | 95,838 | ||||||||||||
Corporate notes | — | 551,604 | — | 551,604 | ||||||||||||
Commercial paper | — | 300,589 | — | 300,589 | ||||||||||||
Certificates of deposit | — | 249,420 | — | 249,420 | ||||||||||||
Total | $ | 1,123,543 | $ | 2,350,487 | $ | — | $ | 3,474,030 | ||||||||
Schedule of Fair Values of Outstanding Derivative Instruments | The fair values of outstanding derivative instruments for the periods presented on a gross basis are as follows (in thousands): | |||||||||||||||
March 31, | December 31, | |||||||||||||||
Balance Sheet Location | 2015 | 2014 | ||||||||||||||
Assets | ||||||||||||||||
Foreign currency forward contracts not designated as hedging instruments | Other current assets | $ | 439 | — | ||||||||||||
Liabilities | ||||||||||||||||
Foreign currency forward contracts not designated as hedging instruments | Other current liabilities | 98 | — | |||||||||||||
Total | $ | 341 | $ | — | ||||||||||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Property Plant And Equipment [Abstract] | |||||||||
Schedule of Property and Equipment, Net | The following table presents the detail of property and equipment, net for the periods presented (in thousands): | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Property and equipment, net | |||||||||
Equipment | $ | 611,086 | $ | 584,561 | |||||
Furniture and leasehold improvements | 147,831 | 131,851 | |||||||
Capitalized software | 112,535 | 82,052 | |||||||
Construction in progress | 115,656 | 89,806 | |||||||
Total | 987,108 | 888,270 | |||||||
Less: Accumulated depreciation and | (387,357 | ) | (331,251 | ) | |||||
amortization | |||||||||
Property and equipment, net | $ | 599,751 | $ | 557,019 | |||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2015 | |||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | |||||||||||||
Schedule of Goodwill Activities | The following table presents the goodwill activities for the periods presented (in thousands): | ||||||||||||
Goodwill | |||||||||||||
Balance as of December 31, 2014 | $ | 622,570 | |||||||||||
2015 acquisitions | 80,471 | ||||||||||||
Foreign currency translation adjustment | (342 | ) | |||||||||||
Balance as of March 31, 2015 | $ | 702,699 | |||||||||||
Schedule of Intangible Assets | The following table presents the detail of intangible assets for the periods presented (in thousands): | ||||||||||||
Gross Carrying | Accumulated | Net Carrying | |||||||||||
Value | Amortization | Value | |||||||||||
March 31, 2015: | |||||||||||||
Patents and developed technologies | $ | 110,152 | $ | (31,365 | ) | $ | 78,787 | ||||||
Publisher and advertiser relationships | 32,000 | (12,223 | ) | 19,777 | |||||||||
Assembled workforce | 1,960 | (1,522 | ) | 438 | |||||||||
Other intangible assets | 1,100 | (785 | ) | 315 | |||||||||
Total | $ | 145,212 | $ | (45,895 | ) | $ | 99,317 | ||||||
December 31, 2014: | |||||||||||||
Patents and developed technologies | $ | 105,052 | $ | (23,165 | ) | $ | 81,887 | ||||||
Publisher and advertiser relationships | 32,000 | (9,831 | ) | 22,169 | |||||||||
Assembled workforce | 1,960 | (1,457 | ) | 503 | |||||||||
Other intangible assets | 1,100 | (648 | ) | 452 | |||||||||
Total | $ | 140,112 | $ | (35,101 | ) | $ | 105,011 | ||||||
Schedule of Estimated Future Amortization Expenses | Estimated future amortization expense as of March 31, 2015 is as follows (in thousands): | ||||||||||||
Remainder of 2015 | $ | 29,201 | |||||||||||
2016 | 26,811 | ||||||||||||
2017 | 11,624 | ||||||||||||
2018 | 9,832 | ||||||||||||
2019 | 5,430 | ||||||||||||
Thereafter | 16,419 | ||||||||||||
Total | $ | 99,317 | |||||||||||
Components_of_Accrued_and_Othe
Components of Accrued and Other Current Liabilities (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Statement Of Financial Position [Abstract] | |||||||||
Accrued and Other Current Liabilities | The following table presents the detail of accrued and other current liabilities for the periods presented (in thousands): | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Accrued compensation | $ | 80,517 | $ | 68,000 | |||||
Accrued fixed assets and maintenance | 24,809 | 13,459 | |||||||
Accrued publisher payments | 24,597 | 27,996 | |||||||
Accrued sales and marketing expenses | 10,924 | 25,264 | |||||||
Accrued other | 99,116 | 93,514 | |||||||
Total | $ | 239,963 | $ | 228,233 | |||||
Convertible_Senior_Notes_Table
Convertible Senior Notes (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Components of Notes | |||||||||||||||||
The Notes consisted of the following (in thousands): | |||||||||||||||||
31-Mar-15 | 31-Dec-14 | ||||||||||||||||
2019 Notes | 2021 Notes | 2019 Notes | 2021 Notes | ||||||||||||||
Principal amounts: | |||||||||||||||||
Principal | $ | 935,000 | $ | 954,000 | $ | 935,000 | $ | 954,000 | |||||||||
Unamortized initial purchasers' discount and debt discount (1) | (214,685 | ) | (279,202 | ) | (225,104 | ) | (287,876 | ) | |||||||||
Net carrying amount | $ | 720,315 | $ | 674,798 | $ | 709,896 | $ | 666,124 | |||||||||
Carrying amount of the equity component (2) | $ | 222,826 | $ | 283,283 | $ | 222,826 | $ | 283,283 | |||||||||
-1 | Included in the consolidated balance sheets within convertible notes and amortized over the remaining lives of the Notes. | ||||||||||||||||
-2 | Included in the consolidated balance sheets within additional paid-in capital. |
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Earnings Per Share [Abstract] | |||||||||
Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net loss per share for periods presented (in thousands, except per share data). | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Net loss | $ | (162,442 | ) | $ | (132,362 | ) | |||
Basic shares: | |||||||||
Weighted-average common shares outstanding | 648,950 | 579,128 | |||||||
Weighted-average restricted stock | (8,486 | ) | (8,923 | ) | |||||
subject to repurchase | |||||||||
Weighted-average shares used to compute | 640,464 | 570,205 | |||||||
basic net loss per share | |||||||||
Diluted shares: | |||||||||
Weighted-average shares used to compute | 640,464 | 570,205 | |||||||
diluted net loss per share | |||||||||
Net loss per share attributable to common | |||||||||
stockholders: | |||||||||
Basic | $ | (0.25 | ) | $ | (0.23 | ) | |||
Diluted | $ | (0.25 | ) | $ | (0.23 | ) | |||
Summary of Potential Common Shares Excluded from Calculation of Diluted Net Loss Per Share Attributable to Common Stockholders | The following number of potential shares of the Company’s common stock at the end of each period were excluded from the calculation of diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive for the periods presented (in thousands): | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
RSUs | 61,425 | 83,232 | |||||||
Warrants | 24,329 | 117 | |||||||
Stock options | 18,069 | 39,796 | |||||||
Shares subject to repurchase | 8,516 | 7,898 | |||||||
Employee stock purchase plan | 1,224 | 1,868 | |||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Stockholders Equity Note [Abstract] | |||||||||
Summary of Restricted Stock Activity | The activities for the restricted common stock issued to employees for the three months ended March 31, 2015 are summarized as follows (in thousands, except per share data): | ||||||||
Weighted-Average | |||||||||
Number of | Grant-Date Fair | ||||||||
Shares | Value Per Share | ||||||||
Unvested restricted common stock at December 31, 2014 | 4,955 | $ | 25.62 | ||||||
Granted | 874 | $ | 43.72 | ||||||
Vested | (492 | ) | $ | 21.15 | |||||
Unvested restricted common stock at March 31, 2015 | 5,337 | $ | 28.99 | ||||||
Summary of RSU Activity | The following table summarizes the activity related to the Company’s RSUs for the three months ended March 31, 2015. For purposes of this table, vested RSUs represent the shares for which the service condition had been fulfilled as of each respective date (in thousands, except per share data): | ||||||||
RSUs Outstanding | |||||||||
Weighted- | |||||||||
Average Grant- | |||||||||
Date Fair Value | |||||||||
Shares | Per Share | ||||||||
Unvested and outstanding at December 31, 2014 | 64,135 | $ | 29.08 | ||||||
Granted | 6,166 | $ | 47.68 | ||||||
Vested | (6,238 | ) | $ | 27.22 | |||||
Canceled | (2,638 | ) | $ | 27.03 | |||||
Unvested and outstanding at March 31, 2015 | 61,425 | $ | 31.23 | ||||||
Compensation Expense Allocated | Stock-based compensation expense is allocated based on the cost center to which the award holder belongs. Total stock-based compensation expense by function is as follows (in thousands): | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Cost of revenue | $ | 12,886 | $ | 9,831 | |||||
Research and development | 103,036 | 78,318 | |||||||
Sales and marketing | 42,658 | 27,801 | |||||||
General and administrative | 24,225 | 10,419 | |||||||
Total | $ | 182,805 | $ | 126,369 | |||||
Operations_by_Geographic_Area_
Operations by Geographic Area (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Segment Reporting [Abstract] | |||||||||
Revenue by Geography | Revenue by geography is based on the billing addresses of the customers. The following table sets forth revenue by services and revenue by geographic area (in thousands): | ||||||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Advertising services | $ | 388,211 | $ | 226,051 | |||||
Data licensing and other | 47,728 | 24,441 | |||||||
Total revenue | $ | 435,939 | $ | 250,492 | |||||
Three Months Ended March 31, | |||||||||
2015 | 2014 | ||||||||
Revenue: | |||||||||
United States | $ | 288,928 | $ | 180,039 | |||||
International | 147,011 | 70,453 | |||||||
Total revenue | $ | 435,939 | $ | 250,492 | |||||
Long-lived Assets by Geographic Area | The following table sets forth long-lived assets by geographic area (in thousands): | ||||||||
March 31, | December 31, | ||||||||
2015 | 2014 | ||||||||
Property and equipment, net: | |||||||||
United States | $ | 565,742 | $ | 523,810 | |||||
International | 34,009 | 33,209 | |||||||
Total property and equipment, net | $ | 599,751 | $ | 557,019 | |||||
Cash_Cash_Equivalents_and_Shor2
Cash, Cash Equivalents and Short-term Investments - Cash, Cash and Equivalents and Short-term Investments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Cash and cash equivalents: | ||||
Cash | $198,102 | $147,848 | ||
Cash and cash equivalents | 1,607,405 | 1,510,724 | 960,755 | 841,010 |
Short-term investments: | ||||
Short-term investments | 1,949,803 | 2,111,154 | ||
Money Market Funds | ||||
Cash and cash equivalents: | ||||
Cash and cash equivalents | 810,516 | 882,443 | ||
U.S. Government and Agency Securities Including Treasury Bills | ||||
Cash and cash equivalents: | ||||
Cash and cash equivalents | 279,529 | 271,418 | ||
Short-term investments: | ||||
Short-term investments | 927,087 | 1,009,541 | ||
Corporate Notes Certificates Of Deposit And Commercial Paper | ||||
Cash and cash equivalents: | ||||
Cash and cash equivalents | 319,258 | 209,015 | ||
Short-term investments: | ||||
Short-term investments | $1,022,716 | $1,101,613 |
Cash_Cash_Equivalents_and_Shor3
Cash, Cash Equivalents and Short-term Investments - Summary of Unrealized Gains and Losses Related to Available-for-Sale Securities Classified as Short-term Investments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Gross Amortized Costs | $1,950,177 | $2,112,102 |
Gross Unrealized Gains | 66 | 12 |
Gross Unrealized Losses | -440 | -960 |
Short-term investments | 1,949,803 | 2,111,154 |
U.S. Government and Agency Securities Including Treasury Bills | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Gross Amortized Costs | 927,170 | 1,009,827 |
Gross Unrealized Gains | 22 | 8 |
Gross Unrealized Losses | -105 | -294 |
Short-term investments | 927,087 | 1,009,541 |
Corporate Notes Certificates Of Deposit And Commercial Paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Gross Amortized Costs | 1,023,007 | 1,102,275 |
Gross Unrealized Gains | 44 | 4 |
Gross Unrealized Losses | -335 | -666 |
Short-term investments | $1,022,716 | $1,101,613 |
Cash_Cash_Equivalents_and_Shor4
Cash, Cash Equivalents and Short-term Investments - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Dec. 31, 2014 | |
Investments Debt And Equity Securities [Abstract] | ||
Securities continuous loss position for 12 months or longer | $0 | $0 |
Impairment loss on securities | $0 | $0 |
Fair_Value_Measurements_Schedu
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Short-term investments | $1,949,803 | $2,111,154 |
Fair Value, Measurements, Recurring | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Total | 3,359,447 | 3,474,030 |
Fair Value, Measurements, Recurring | Agency Securities | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 28,600 | 39,998 |
Short-term investments | 123,154 | 95,838 |
Fair Value, Measurements, Recurring | Money Market Funds | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 810,516 | 882,443 |
Fair Value, Measurements, Recurring | Treasury Bills | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 146,542 | 73,525 |
Short-term investments | 146,543 | 167,575 |
Fair Value, Measurements, Recurring | US Government Securities | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 104,387 | 157,895 |
Short-term investments | 657,390 | 746,128 |
Fair Value, Measurements, Recurring | Corporate Notes | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 2,549 | 13,684 |
Short-term investments | 525,212 | 551,604 |
Fair Value, Measurements, Recurring | Commercial Paper | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 303,709 | 185,321 |
Short-term investments | 262,353 | 300,589 |
Fair Value, Measurements, Recurring | Certificates of Deposit | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 13,000 | 10,010 |
Short-term investments | 235,151 | 249,420 |
Fair Value, Measurements, Recurring | Foreign currency forward contracts | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Other current assets | 439 | |
Other current liabilities | -98 | |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Total | 1,103,601 | 1,123,543 |
Level 1 | Fair Value, Measurements, Recurring | Money Market Funds | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 810,516 | 882,443 |
Level 1 | Fair Value, Measurements, Recurring | Treasury Bills | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 146,542 | 73,525 |
Short-term investments | 146,543 | 167,575 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Total | 2,255,846 | 2,350,487 |
Level 2 | Fair Value, Measurements, Recurring | Agency Securities | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 28,600 | 39,998 |
Short-term investments | 123,154 | 95,838 |
Level 2 | Fair Value, Measurements, Recurring | US Government Securities | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 104,387 | 157,895 |
Short-term investments | 657,390 | 746,128 |
Level 2 | Fair Value, Measurements, Recurring | Corporate Notes | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 2,549 | 13,684 |
Short-term investments | 525,212 | 551,604 |
Level 2 | Fair Value, Measurements, Recurring | Commercial Paper | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 303,709 | 185,321 |
Short-term investments | 262,353 | 300,589 |
Level 2 | Fair Value, Measurements, Recurring | Certificates of Deposit | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 13,000 | 10,010 |
Short-term investments | 235,151 | 249,420 |
Level 2 | Fair Value, Measurements, Recurring | Foreign currency forward contracts | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Other current assets | 439 | |
Other current liabilities | ($98) |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | |
Fair Value Disclosure [Line Items] | |||
Notional principal of foreign currency forward contracts outstanding | $128,500,000 | $0 | |
Convertible Senior Notes 2019 | |||
Fair Value Disclosure [Line Items] | |||
Debt instrument, principal amount | 935,000,000 | 935,000,000 | 900,000,000 |
Debt Instrument, percentage | 0.25% | ||
Debt Instrument, due date | 2019 | ||
Convertible Senior Notes 2021 | |||
Fair Value Disclosure [Line Items] | |||
Debt instrument, principal amount | 954,000,000 | 954,000,000 | 900,000,000 |
Debt Instrument, percentage | 1.00% | ||
Debt Instrument, due date | 2021 | ||
Level 2 | Convertible Senior Notes 2019 | |||
Fair Value Disclosure [Line Items] | |||
Estimated fair value of notes based on a market approach | 920,500,000 | ||
Level 2 | Convertible Senior Notes 2021 | |||
Fair Value Disclosure [Line Items] | |||
Estimated fair value of notes based on a market approach | $937,800,000 |
Fair_Value_Measurements_Schedu1
Fair Value Measurements - Schedule of Fair Values of Outstanding Derivative Instruments (Details) (USD $) | Mar. 31, 2015 |
In Thousands, unless otherwise specified | |
Assets | |
Foreign currency forward contracts not designated as hedging instruments | $439 |
Liabilities | |
Foreign currency forward contracts not designated as hedging instruments | 98 |
Total | $341 |
Property_and_Equipment_Net_Sch
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property and equipment, net | ||
Property and equipment, gross | $987,108 | $888,270 |
Less: Accumulated depreciation and amortization | -387,357 | -331,251 |
Property and equipment, net | 599,751 | 557,019 |
Equipment | ||
Property and equipment, net | ||
Property and equipment, gross | 611,086 | 584,561 |
Furniture and Leasehold Improvements | ||
Property and equipment, net | ||
Property and equipment, gross | 147,831 | 131,851 |
Computer Software | ||
Property and equipment, net | ||
Property and equipment, gross | 112,535 | 82,052 |
Construction in Progress | ||
Property and equipment, net | ||
Property and equipment, gross | $115,656 | $89,806 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Schedule of Goodwill Activities (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $622,570 |
Acquisition | 80,471 |
Foreign currency translation adjustment | -342 |
Ending balance | $702,699 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $145,212 | $140,112 |
Accumulated Amortization | -45,895 | -35,101 |
Net Carrying Value | 99,317 | 105,011 |
Patents and Developed Technologies | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 110,152 | 105,052 |
Accumulated Amortization | -31,365 | -23,165 |
Net Carrying Value | 78,787 | 81,887 |
Publisher and Advertiser Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 32,000 | 32,000 |
Accumulated Amortization | -12,223 | -9,831 |
Net Carrying Value | 19,777 | 22,169 |
Assembled Workforce | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 1,960 | 1,960 |
Accumulated Amortization | -1,522 | -1,457 |
Net Carrying Value | 438 | 503 |
Other Intangible Assets | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 1,100 | 1,100 |
Accumulated Amortization | -785 | -648 |
Net Carrying Value | $315 | $452 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets - Additional Information (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $10.80 | $6.20 |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expenses (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2015 | $29,201 | |
2016 | 26,811 | |
2017 | 11,624 | |
2018 | 9,832 | |
2019 | 5,430 | |
Thereafter | 16,419 | |
Net Carrying Value | $99,317 | $105,011 |
Accrued_and_Other_Current_Liab1
Accrued and Other Current Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Payables And Accruals [Abstract] | ||
Accrued compensation | $80,517 | $68,000 |
Accrued fixed assets and maintenance | 24,809 | 13,459 |
Accrued publisher payments | 24,597 | 27,996 |
Accrued sales and marketing expenses | 10,924 | 25,264 |
Accrued other | 99,116 | 93,514 |
Total | $239,963 | $228,233 |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Business Acquisition [Line Items] | |
Goodwill acquired | $80,471,000 |
Employee Stock Options | |
Business Acquisition [Line Items] | |
Unrecognized share-based compensation expense | 31,000,000 |
Other acquisitions | |
Business Acquisition [Line Items] | |
Number of businesses acquired | 2 |
Business Combination, Consideration Transferred | 86,600,000 |
Business acquisition, common stock issued | 57,700,000 |
Business acquisition, purchase price cash consideration | 28,900,000 |
Acquisition purchase price allocated to assets | 2,800,000 |
Acquisition purchase price allocated to deferred tax liability | 1,800,000 |
Goodwill acquired | 80,471,000 |
Fair value of contingent payment | 38,200,000 |
Equity compensation service period | 48 months |
Other acquisitions | Employee Stock Options | |
Business Acquisition [Line Items] | |
Equity compensation service period | 45 months |
Unrecognized share-based compensation expense | 3,000,000 |
Other acquisitions | Developed Technology Rights | |
Business Acquisition [Line Items] | |
Acquisition purchase price allocated to finite lived intangible assets | $5,100,000 |
Intangible assets, estimated useful lives | 12 months |
Convertible_Senior_Notes_Addit
Convertible Senior Notes - Additional Information (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | |||
Share data in Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2015 | Sep. 30, 2014 | Oct. 31, 2014 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | |||||||
Initial purchasers' discount | $28,300,000 | $28,300,000 | |||||
Debt issuance costs | 500,000 | ||||||
Proceeds from offerings, net of transaction costs | 1,860,000,000 | ||||||
Debt Instrument, frequency of periodic payment | semi-annually | ||||||
Debt Instrument, date of first required payment | 15-Mar-15 | ||||||
Debt Instrument Payment Terms | The interest rates are fixed at 0.25% and 1.00% per annum and are payable semi-annually in arrears on March 15 and September 15 of each year, commencing on March 15, 2015. | ||||||
Amortization of debt discount allocated to interest expense | 1,300,000 | ||||||
Accrued coupon interest expense | 3,000,000 | ||||||
Price percentage for repurchase of notes if repurchase option is elected | 100.00% | ||||||
Equity component of the convertible note issuance, net | 100,000 | ||||||
Amortization of discount on convertible notes | 400,000 | ||||||
Amortization of discount on convertible notes | 16,638,000 | ||||||
Convertible notes | 1,395,113,000 | 1,376,020,000 | |||||
Number of shares authorized for repurchase under hedge agreement | 24.3 | ||||||
Exercise price of the option to repurchase stock | $77.64 | ||||||
Purchases of convertible note hedges | 407,200,000 | ||||||
Number of warrants issued | 24.3 | ||||||
Exercise price of the warrants | $105 | ||||||
Proceeds from issuance of warrants | 289,300,000 | ||||||
Interest Expense | |||||||
Debt Instrument [Line Items] | |||||||
Amortization of discount on convertible notes | 17,900,000 | ||||||
Scenario One | |||||||
Debt Instrument [Line Items] | |||||||
Convertible debt instrument, consecutive trading days threshold | 30 days | ||||||
Convertible debt instrument, percentage of conversion price to trigger conversion to common stock | 130.00% | ||||||
Scenario One | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Convertible debt instrument, trading days threshold | 20 | ||||||
Scenario Two | |||||||
Debt Instrument [Line Items] | |||||||
Convertible debt instrument, trading days threshold | 5 | ||||||
Convertible debt instrument, consecutive trading days threshold | 5 days | ||||||
Convertible debt instrument, percentage of conversion price to trigger conversion to common stock | 98.00% | ||||||
Common Stock | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, conversion principal amount | 1,000 | ||||||
Debt Instrument, conversion ratio | 12.8793 | ||||||
Conversion Price | $77.64 | ||||||
Debt Instrument, terms of conversion | Each $1,000 of principal of these notes will initially be convertible into 12.8793 shares of the Companybs common stock, which is equivalent to an initial conversion price of approximately $77.64 per share, subject to adjustment upon the occurrence of specified events. | ||||||
Convertible Senior Notes 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, principal amount | 900,000,000 | 935,000,000 | 900,000,000 | 935,000,000 | |||
Proceeds from Issuance of Debt | 35,000,000 | ||||||
Initial purchasers' discount | 214,685,000 | [1] | 225,104,000 | [1] | |||
Debt Instrument, conversion earliest date | 15-Mar-19 | ||||||
Carrying amount of the equity component | 222,826,000 | [2] | 222,826,000 | [2] | |||
Effective interest rate for amortization to interest expense | 5.75% | ||||||
Convertible notes | 720,315,000 | 709,896,000 | |||||
Remaining period for convertible debt | 53 months | ||||||
Convertible Senior Notes 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, principal amount | 900,000,000 | 954,000,000 | 900,000,000 | 954,000,000 | |||
Proceeds from Issuance of Debt | 54,000,000 | ||||||
Initial purchasers' discount | 279,202,000 | [1] | 287,876,000 | [1] | |||
Debt Instrument, conversion earliest date | 15-Mar-21 | ||||||
Carrying amount of the equity component | 283,283,000 | [2] | 283,283,000 | [2] | |||
Effective interest rate for amortization to interest expense | 6.25% | ||||||
Convertible notes | $674,798,000 | $666,124,000 | |||||
Remaining period for convertible debt | 77 months | ||||||
[1] | Included in the consolidated balance sheets within convertible notes and amortized over the remaining lives of the Notes. | ||||||
[2] | Included in the consolidated balance sheets within additional paid-in capital. |
Convertible_Senior_Notes_Compo
Convertible Senior Notes - Components of Notes (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | ||
In Thousands, unless otherwise specified | |||||
Principal amounts: | |||||
Unamortized initial purchasers' discount and debt discount | ($28,300) | ||||
Net carrying amount | 1,395,113 | 1,376,020 | |||
Convertible Senior Notes 2019 | |||||
Principal amounts: | |||||
Debt instrument, principal amount | 935,000 | 935,000 | 900,000 | ||
Unamortized initial purchasers' discount and debt discount | -214,685 | [1] | -225,104 | [1] | |
Net carrying amount | 720,315 | 709,896 | |||
Carrying amount of the equity component | 222,826 | [2] | 222,826 | [2] | |
Convertible Senior Notes 2021 | |||||
Principal amounts: | |||||
Debt instrument, principal amount | 954,000 | 954,000 | 900,000 | ||
Unamortized initial purchasers' discount and debt discount | -279,202 | [1] | -287,876 | [1] | |
Net carrying amount | 674,798 | 666,124 | |||
Carrying amount of the equity component | $283,283 | [2] | $283,283 | [2] | |
[1] | Included in the consolidated balance sheets within convertible notes and amortized over the remaining lives of the Notes. | ||||
[2] | Included in the consolidated balance sheets within additional paid-in capital. |
Net_Loss_Per_Share_Basic_and_D
Net Loss Per Share - Basic and Diluted Net Loss Per Share (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||
Net loss | ($162,442) | ($132,362) |
Basic shares: | ||
Weighted-average common shares outstanding | 648,950 | 579,128 |
Weighted-average restricted stock subject to repurchase | -8,486 | -8,923 |
Weighted-average shares used to compute basic net loss per share | 640,464 | 570,205 |
Diluted shares: | ||
Weighted-average shares used to compute diluted net loss per share | 640,464 | 570,205 |
Net loss per share attributable to common stockholders: | ||
Basic | ($0.25) | ($0.23) |
Diluted | ($0.25) | ($0.23) |
Net_Loss_Per_Share_Summary_of_
Net Loss Per Share - Summary of Potential Common Shares Excluded from Calculation of Diluted Net Loss Per Share Attributable to Common Stockholders (Details) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
RSUs | ||
Earnings Per Share Basic [Line Items] | ||
Anti-dilutive securities excluded from the computation of diluted net income per share | 61,425 | 83,232 |
Warrants | ||
Earnings Per Share Basic [Line Items] | ||
Anti-dilutive securities excluded from the computation of diluted net income per share | 24,329 | 117 |
Stock Options | ||
Earnings Per Share Basic [Line Items] | ||
Anti-dilutive securities excluded from the computation of diluted net income per share | 18,069 | 39,796 |
Restricted Common Stock | ||
Earnings Per Share Basic [Line Items] | ||
Anti-dilutive securities excluded from the computation of diluted net income per share | 8,516 | 7,898 |
Employee Stock Purchase Plans | ||
Earnings Per Share Basic [Line Items] | ||
Anti-dilutive securities excluded from the computation of diluted net income per share | 1,224 | 1,868 |
Net_Loss_Per_Share_Additional_
Net Loss Per Share - Additional Information (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Earnings Per Share Basic [Line Items] | |
Exercise price of the warrants | $105.28 |
Convertible Senior Notes Due 2019 and 2021 | |
Earnings Per Share Basic [Line Items] | |
Conversion Price | $77.64 |
Conversion spread will have a dilutive impact on diluted net income per share of common stock | 24,300,000 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Details) (USD $) | 3 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Internal Use Software and Website Development Costs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Share-based compensation, capitalized amount | $16.50 | $6.70 | |
2013 Equity Incentive Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Equity compensation service period | 4 years | ||
Number of shares initially reserved | 68,300,000 | ||
Number of shares available for issuance | 60,000,000 | ||
Outstanding shares of common stock percentage | 5.00% | ||
Options granted expire years | 10 years | ||
2013 Employee Stock Purchase Plan | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized share-based compensation expense, weighted average recognition period | 6 months | ||
Number of shares available for issuance | 11,300,000 | ||
Outstanding shares of common stock percentage | 1.00% | ||
Unrecognized share-based compensation expense | 10.6 | ||
Restricted Common Stock | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized share-based compensation expense | 112.7 | ||
Unrecognized share-based compensation expense, weighted average recognition period | 2 years 7 months 6 days | ||
Restricted Common Stock | All Acquisitions | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Equity compensation service period | 2 years | ||
Restricted Common Stock | All Acquisitions | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Equity compensation service period | 4 years | ||
Employee Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized share-based compensation expense, weighted average recognition period | 2 years 2 months 12 days | ||
Stock option outstanding | 18,100,000 | 20,400,000 | |
Stock options exercised, intrinsic value | 101.2 | 133.9 | |
Unrecognized share-based compensation expense | 31 | ||
RSUs | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Unrecognized share-based compensation expense | 1,340 | ||
Unrecognized share-based compensation expense, weighted average recognition period | 2 years 10 months 24 days | ||
Fair Value as of vesting dates of RSUs that are vested during the period | $256.30 | $956.40 |
Stockholders_Equity_Summary_of
Stockholders' Equity - Summary of Restricted Stock Activity (Details) (Restricted Common Stock, USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
Restricted Common Stock | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Unvested Shares, beginning of period | 4,955 |
Number of Shares, granted | 874 |
Number of Shares, vested | -492 |
Number of Unvested Shares, end of period | 5,337 |
Weighted Average Grant Date Fair Value Per Share, beginning of period | $25.62 |
Weighted Average Grant Date Fair Value Per Share, Granted | $43.72 |
Weighted Average Grant Date Fair Value Per Share, Vested | $21.15 |
Weighted Average Grant Date Fair Value Per Share, end of period | $28.99 |
Stockholders_Equity_Summary_of1
Stockholders' Equity - Summary of RSU Activity (Details) (RSUs, USD $) | 3 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 |
RSUs | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Unvested Shares, beginning of period | 64,135 |
Number of Shares, granted | 6,166 |
Number of Shares, vested | -6,238 |
Number of Shares, Canceled | -2,638 |
Number of Unvested Shares, end of period | 61,425 |
Weighted Average Grant Date Fair Value Per Share, beginning of period | $29.08 |
Weighted Average Grant Date Fair Value Per Share, Granted | $47.68 |
Weighted Average Grant Date Fair Value Per Share, Vested | $27.22 |
Weighted Average Grant Date Fair Value Per Share, Canceled | $27.03 |
Weighted Average Grant Date Fair Value Per Share, end of period | $31.23 |
Stockholders_Equity_Compensati
Stockholders' Equity - Compensation Expense Allocated (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $182,805 | $126,369 |
Cost of Revenue | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 12,886 | 9,831 |
Research and Development | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 103,036 | 78,318 |
Sales and Marketing | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | 42,658 | 27,801 |
General and Administrative | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Stock-based compensation expense | $24,225 | $10,419 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $632,000 | $1,222,000 |
Unrecognized tax benefits, period change | 23,600,000 | |
Unrecognized tax benefits | $206,100,000 |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Details) (USD $) | 3 Months Ended |
Mar. 31, 2015 | |
Other Commitments [Line Items] | |
Unsecured revolving credit facility | $1,000,000,000 |
Line of credit facility, expiration date | 22-Oct-18 |
Line of credit facility, interest rate description | Loans under the credit facility bear interest, at the Companybs option, at (i) a base rate based on the highest of the prime rate, the federal funds rate plus 0.50% and an adjusted LIBOR rate for a one-month interest period plus 1.00%, in each case plus a margin ranging from 0.00% to 0.75% or (ii) an adjusted LIBOR rate plus a margin ranging from 1.00% to 1.75%. |
Amended revolving credit agreement, leverage ratio above which security will be requited | 2.50% |
Amended revolving credit agreement, outstanding amount above which security will be requited | 500,000,000 |
Amended revolving credit agreement, percentage of borrowed amount to borrowing capacity above which security will be requited | 50.00% |
Line of credit facility amount | $0 |
Expiration year of operating lease, earliest | 2015 |
Expiration year of operating lease, last | 2026 |
Base Rate | Minimum | |
Other Commitments [Line Items] | |
Line of credit facility, interest rate | 0.00% |
Base Rate | Maximum | |
Other Commitments [Line Items] | |
Line of credit facility, interest rate | 0.75% |
London Interbank Offered Rate (LIBOR) | Minimum | |
Other Commitments [Line Items] | |
Line of credit facility, interest rate | 1.00% |
London Interbank Offered Rate (LIBOR) | Maximum | |
Other Commitments [Line Items] | |
Line of credit facility, interest rate | 1.75% |
Federal Funds Rate Plus 0.50% | |
Other Commitments [Line Items] | |
Line of credit facility, interest rate | 0.50% |
Libor Rate One Month Interest Period Plus 1.00% | |
Other Commitments [Line Items] | |
Line of credit facility, interest rate | 1.00% |
Operations_by_Geographic_Area_1
Operations by Geographic Area - Revenue by Geographic Area (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue: | ||
Revenue | $435,939 | $250,492 |
United States | ||
Revenue: | ||
Revenue | 288,928 | 180,039 |
International | ||
Revenue: | ||
Revenue | 147,011 | 70,453 |
Advertising Services | ||
Revenue: | ||
Revenue | 388,211 | 226,051 |
Data Licensing And Other | ||
Revenue: | ||
Revenue | $47,728 | $24,441 |
Operations_by_Geographic_Area_2
Operations by Geographic Area - Additional Information (Details) (International, Revenue) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Number of individual country that contributed in excess of ten percent to revenue | 0 | |
Geographic Concentration Risk | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Revenue percentage | 10.00% | 10.00% |
Operations_by_Geographic_Area_3
Operations by Geographic Area - Long-Lived Assets by Geographic Area (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Property and equipment, net: | ||
Property and equipment, net | $599,751 | $557,019 |
United States | ||
Property and equipment, net: | ||
Property and equipment, net | 565,742 | 523,810 |
International | ||
Property and equipment, net: | ||
Property and equipment, net | $34,009 | $33,209 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Details) (TellAprt, Inc., Subsequent Event) | 0 Months Ended |
In Millions, unless otherwise specified | Apr. 28, 2015 |
TellAprt, Inc. | Subsequent Event | |
Subsequent Event [Line Items] | |
Shares of common stock issued | 12.6 |