Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 27, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | TWTR | |
Entity Registrant Name | TWITTER, INC. | |
Entity Central Index Key | 1,418,091 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 737,893,225 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,288,323 | $ 988,598 |
Short-term investments | 2,791,589 | 2,785,981 |
Accounts receivable, net of allowance for doubtful accounts of $7,596 and $7,216 as of June 30, 2017 and December 31, 2016, respectively | 524,064 | 650,650 |
Prepaid expenses and other current assets | 236,126 | 226,967 |
Total current assets | 4,840,102 | 4,652,196 |
Property and equipment, net | 781,272 | 783,901 |
Intangible assets, net | 65,291 | 95,334 |
Goodwill | 1,186,189 | 1,185,315 |
Other assets | 90,244 | 153,619 |
Total assets | 6,963,098 | 6,870,365 |
Current liabilities: | ||
Accounts payable | 107,398 | 122,236 |
Accrued and other current liabilities | 307,047 | 380,937 |
Capital leases, short-term | 80,133 | 80,848 |
Total current liabilities | 494,578 | 584,021 |
Convertible notes | 1,582,468 | 1,538,967 |
Capital leases, long-term | 83,410 | 66,837 |
Deferred and other long-term tax liabilities, net | 9,247 | 7,556 |
Other long-term liabilities | 64,499 | 68,049 |
Total liabilities | 2,234,202 | 2,265,430 |
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; 736,470 and 721,572 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively | 4 | 4 |
Additional paid-in capital | 7,517,433 | 7,224,534 |
Accumulated other comprehensive loss | (46,828) | (69,253) |
Accumulated deficit | (2,741,713) | (2,550,350) |
Total stockholders' equity | 4,728,896 | 4,604,935 |
Total liabilities and stockholders' equity | $ 6,963,098 | $ 6,870,365 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 7,596 | $ 7,216 |
Preferred stock, par value | $ 0.000005 | $ 0.000005 |
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 | $ 0.000005 | $ 0.000005 |
Common stock, shares authorized | 5,000,000,000 | 5,000,000,000 |
Common stock, shares issued | 736,470,000 | 721,572,000 |
Common stock, shares outstanding | 736,470,000 | 721,572,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenue | $ 573,855 | $ 601,958 | $ 1,122,106 | $ 1,196,479 |
Costs and expenses | ||||
Cost of revenue | 212,908 | 202,966 | 433,247 | 401,371 |
Research and development | 143,171 | 178,511 | 271,899 | 334,305 |
Sales and marketing | 185,296 | 236,619 | 354,890 | 472,790 |
General and administrative | 70,839 | 70,238 | 140,707 | 133,505 |
Total costs and expenses | 612,214 | 688,334 | 1,200,743 | 1,341,971 |
Loss from operations | (38,359) | (86,376) | (78,637) | (145,492) |
Interest expense | (26,396) | (24,934) | (51,805) | (49,827) |
Other income (expense), net | (48,320) | 6,734 | (40,998) | 13,040 |
Loss before income taxes | (113,075) | (104,576) | (171,440) | (182,279) |
Provision for income taxes | 3,413 | 2,641 | 6,607 | 4,669 |
Net loss | $ (116,488) | $ (107,217) | $ (178,047) | $ (186,948) |
Net loss per share attributable to common stockholders: | ||||
Basic | $ (0.16) | $ (0.15) | $ (0.25) | $ (0.27) |
Diluted | $ (0.16) | $ (0.15) | $ (0.25) | $ (0.27) |
Weighted-average shares used to compute net loss per share attributable to common stockholders: | ||||
Basic | 730,069 | 698,326 | 726,083 | 694,959 |
Diluted | 730,069 | 698,326 | 726,083 | 694,959 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (116,488) | $ (107,217) | $ (178,047) | $ (186,948) |
Other comprehensive income (loss), net of tax: | ||||
Change in unrealized gain (loss) on investments in available-for-sale securities | 69 | (961) | (160) | 3,481 |
Change in foreign currency translation adjustment | 14,462 | (13,052) | 22,585 | (2,418) |
Net change in accumulated other comprehensive loss | 14,531 | (14,013) | 22,425 | 1,063 |
Comprehensive loss | $ (101,957) | $ (121,230) | $ (155,622) | $ (185,885) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities | ||
Net loss | $ (178,047,000) | $ (186,948,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization expense | 205,855,000 | 181,904,000 |
Stock-based compensation expense | 230,393,000 | 318,611,000 |
Amortization of discount on convertible notes | 39,289,000 | 36,940,000 |
Changes in bad debt provision | 1,355,000 | 2,573,000 |
Deferred income taxes | (768,000) | 45,000 |
Impairment of investments in privately-held companies | 55,000,000 | 0 |
Other adjustments | (4,854,000) | 5,268,000 |
Changes in assets and liabilities, net of assets acquired and liabilities assumed from acquisitions: | ||
Accounts receivable | 133,026,000 | 86,213,000 |
Prepaid expenses and other assets | (1,656,000) | (16,985,000) |
Accounts payable | (13,616,000) | (37,085,000) |
Accrued and other liabilities | (72,822,000) | (13,216,000) |
Net cash provided by operating activities | 393,155,000 | 377,320,000 |
Cash flows from investing activities | ||
Purchases of property and equipment | (83,217,000) | (98,235,000) |
Purchases of marketable securities | (1,578,045,000) | (1,330,946,000) |
Proceeds from maturities of marketable securities | 1,461,687,000 | 1,232,249,000 |
Proceeds from sales of marketable securities | 108,817,000 | 42,416,000 |
Proceeds from sales of long-lived assets | 35,000,000 | |
Changes in restricted cash | 3,221,000 | (590,000) |
Purchases of investments in privately-held companies | (525,000) | (78,002,000) |
Business combinations, net of cash acquired | (80,142,000) | |
Other investing activities | (10,006,000) | (81,000) |
Net cash used in investing activities | (63,068,000) | (313,331,000) |
Cash flows from financing activities | ||
Taxes paid related to net share settlement of equity awards | (5,023,000) | (6,994,000) |
Payments of capital lease obligations | (55,150,000) | (48,740,000) |
Proceeds from exercise of stock options | 7,331,000 | 6,208,000 |
Proceeds from issuances of common stock under employee stock purchase plan | 14,019,000 | 15,821,000 |
Other financing activities | 22,000 | |
Net cash used in financing activities | (38,823,000) | (33,683,000) |
Net increase in cash and cash equivalents | 291,264,000 | 30,306,000 |
Foreign exchange effect on cash and cash equivalents | 8,461,000 | 5,933,000 |
Cash and cash equivalents at beginning of period | 988,598,000 | 911,471,000 |
Cash and cash equivalents at end of period | 1,288,323,000 | 947,710,000 |
Supplemental disclosures of non-cash investing and financing activities | ||
Common stock issued in connection with acquisitions | 644,000 | |
Equipment purchases under capital leases | 70,926,000 | 25,922,000 |
Changes in accrued property and equipment purchases | $ (1,847,000) | $ 10,938,000 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
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 (“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. 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, 2016. Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with 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. 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. 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. Recent Accounting Pronouncements Recently adopted accounting pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard update on simplifying the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance also allows an entity to account for forfeitures when they occur. This guidance became effective for reporting periods beginning after December 15, 2016. The Company adopted this new guidance on January 1, 2017. Upon adoption, tax benefits in excess of stock-based compensation costs, and tax deficiencies, are recorded in the consolidated statements of operations as a component of the provision for income taxes, whereas they previously were recorded in equity. The previously unrecognized excess tax benefits as of December 31, 2016 were recorded as an increase to deferred tax assets. However, given the valuation allowance placed on substantially all of the Company’s deferred tax assets, the recognition upon adoption did not have an impact on the Company’s accumulated deficit. As a result of adopting the new standard utilizing the modified retrospective approach, the Company’s deferred tax assets increased by approximately $0.93 billion with a corresponding increase in its valuation allowance. The Company also elected to account for forfeitures as they occur, rather than estimate expected forfeitures. The adoption of this new guidance resulted in a net cumulative-effect adjustment of $13.3 million increase to accumulated deficit as of January 1, 2017, related to the accounting of forfeitures using the modified retrospective method. Additionally, the Company adopted the aspects of the guidance affecting the cash flow presentation retrospectively, which resulted in an immaterial reclassification of excess tax benefits from financing activities to operating activities in the Company’s consolidated statements of cash flows. In January 2017, the FASB issued a new accounting standard update on simplifying the accounting for goodwill impairment. The new guidance eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The Company adopted this guidance prospectively during the three months ended March 31, 2017 and the adoption had no impact on the Company’s financial statements. In May 2017, the FASB issued a new accounting standard update on clarifying when changes to share-based payment awards must be accounted for as modifications. According to the new guidance, entities will apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. The Company adopted this guidance prospectively during the three months ended June 30, 2017 and the adoption had no impact on the Company’s financial statements. Recently issued accounting pronouncements not yet adopted 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 GAAP guidance on this topic and eliminate 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. The guidance will be effective for fiscal years, and interim periods with those fiscal years, beginning after December 15, 2017 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In March 2016, April 2016, May 2016 and December 2016, the FASB further amended the guidance to clarify the implementation on principal versus agent considerations, the identification of performance obligation and the licensing implementation guidance to provide narrow-scope improvements and practical expedients, and technical corrections and improvements. The Company will adopt this standard effective January 1, 2018 and currently anticipates adopting the standard using the modified retrospective method. The Company is still in the process of completing its analysis of the impact this standard will have on the consolidated financial statements including its disclosure. Specifically, while the Company has not yet finalized its analysis of the recognition impact this standard will have on advertising revenue, the Company does not expect the impact to be material; the Company is still assessing the recognition impact of adopting this standard on data licensing and other revenue; and the Company has not completed its assessment of the presentation impact of adoption of the new principal versus agent guidance on its arrangements. As part of the Company’s assessment and implementation plan, the Company is evaluating and implementing changes to its policies, procedures and controls. In March 2017, the FASB issued a new accounting standard update on shortening the premium amortization period for purchased non-contingently callable debt securities. The new guidance shortens the amortization period for the premium on purchased non-contingently callable debt securities to the earliest call date. Currently, entities generally amortize the premium as a yield adjustment over the contractual life of the security. This guidance will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company is evaluating the impact of adopting this new accounting standard update on the financial statements and related disclosures. With the exception of the standards discussed above, there have been no other recent accounting pronouncements or changes in accounting pronouncements during the six months ended June 30, 2017, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, that are of significance or potential significance to the Company. |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-term Investments | 6 Months Ended |
Jun. 30, 2017 | |
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): June 30, December 31, 2017 2016 Cash and cash equivalents: Cash $ 251,554 $ 253,808 Money market funds 642,605 422,515 U.S. government and agency securities including treasury bills 27,899 12,639 Corporate notes, commercial paper and certificates of deposit 366,265 299,636 Total cash and cash equivalents $ 1,288,323 $ 988,598 Short-term investments: U.S. government and agency securities including treasury bills $ 1,146,379 $ 1,183,768 Corporate notes, commercial paper and certificates of deposit 1,645,210 1,602,213 Total short-term investments $ 2,791,589 $ 2,785,981 The contractual maturities of securities classified as available-for-sale as of June 30, 2017 were as follows (in thousands): June 30, 2017 Due within one year $ 1,969,093 Due after one year through two years 822,496 Total $ 2,791,589 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): June 30, 2017 Gross Gross Gross Aggregated Amortized Unrealized Unrealized Estimated Costs Gains Losses Fair Value U.S. government and agency securities including treasury bills $ 1,148,568 $ 157 $ (2,346 ) $ 1,146,379 Corporate notes, commercial paper and certificates of deposit 1,645,451 275 (516 ) 1,645,210 Total available-for-sale securities classified as short-term investments $ 2,794,019 $ 432 $ (2,862 ) $ 2,791,589 December 31, 2016 Gross Gross Gross Aggregated Amortized Unrealized Unrealized Estimated Costs Gains Losses Fair Value U.S. government and agency securities including treasury bills $ 1,185,274 $ 136 $ (1,642 ) $ 1,183,768 Corporate notes, commercial paper and certificates of deposit 1,603,048 114 (949 ) 1,602,213 Total available-for-sale securities classified as short-term investments $ 2,788,322 $ 250 $ (2,591 ) $ 2,785,981 There were no securities in a continuous loss position for 12 months or longer as of June 30, 2017. The gross unrealized loss on securities in a continuous loss position for 12 months or longer was not material as of December 31, 2016. 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 | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and December 31, 2016 based on the three-tier fair value hierarchy (in thousands): June 30, 2017 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 642,605 $ — $ — $ 642,605 Treasury bills 27,899 — — 27,899 Corporate notes — 768 — 768 Commercial paper — 362,485 — 362,485 Certificates of deposit — 3,012 — 3,012 Short-term investments: U.S. government securities — 733,924 — 733,924 Agency securities — 412,455 — 412,455 Corporate notes — 752,793 — 752,793 Commercial paper — 263,409 — 263,409 Certificates of deposit — 629,008 — 629,008 Other current assets: Foreign currency contracts — 2,966 — 2,966 Total $ 670,504 $ 3,160,820 $ — $ 3,831,324 Liabilities Other current liabilities: Foreign currency contracts — 1,472 — 1,472 Total $ — $ 1,472 $ — $ 1,472 December 31, 2016 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 422,515 $ — $ — $ 422,515 Treasury bills 12,639 — — 12,639 Corporate notes — 7,387 — 7,387 Commercial paper — 292,249 — 292,249 Short-term investments: U.S. government securities — 657,502 — 657,502 Agency securities — 526,266 — 526,266 Corporate notes — 689,986 — 689,986 Commercial paper — 311,238 — 311,238 Certificates of deposit — 600,989 — 600,989 Other current assets: Foreign currency contracts — 1,955 — 1,955 Total $ 435,154 $ 3,087,572 $ — $ 3,522,726 Liabilities Other current liabilities: Foreign currency contracts — 500 — 500 Total $ — $ 500 $ — $ 500 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 Rule 144A 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 June 30, 2017 was approximately $882.6 million and $872.1 million respectively, which represents a Level 2 valuation. The estimated fair value was determined based on the estimated or actual bids and offers of the Notes in an over-the-counter market on the last business day of the period. 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 contracts outstanding was equivalent to $553.6 million and $536.9 million at June 30, 2017 and December 31, 2016, respectively. The fair values of outstanding derivative instruments for the periods presented on a gross basis are as follows (in thousands): June 30, December 31, Balance Sheet Location 2017 2016 Assets Foreign currency contracts not designated as hedging instruments Other current assets $ 2,966 $ 1,955 Liabilities Foreign currency contracts not designated as hedging instruments Other current liabilities $ 1,472 $ 500 The Company recognized $5.6 million and $2.4 million of net gains on the foreign currency contracts in the three and six months ended June 30, 2017, respectively. The Company recognized $6.5 million and $4.7 million of net losses on the foreign currency contracts in the three and six months ended June 30, 2016, respectively. |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2017 | |
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): June 30, December 31, 2017 2016 Property and equipment, net Equipment $ 990,795 $ 909,797 Furniture and leasehold improvements 319,414 304,613 Capitalized software 398,983 353,163 Construction in progress 71,694 74,255 Total 1,780,886 1,641,828 Less: Accumulated depreciation and amortization (999,614 ) (857,927 ) Property and equipment, net $ 781,272 $ 783,901 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
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, 2016 $ 1,185,315 Foreign currency translation adjustment and other 874 Balance as of June 30, 2017 $ 1,186,189 For each of the periods 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 June 30, 2017: Patents and developed technologies $ 123,324 $ (63,434 ) $ 59,890 Publisher and advertiser relationships 53,100 (47,699 ) 5,401 Total $ 176,424 $ (111,133 ) $ 65,291 December 31, 2016: Patents and developed technologies $ 122,611 $ (47,160 ) $ 75,451 Publisher and advertiser relationships 53,100 (33,217 ) 19,883 Total $ 175,711 $ (80,377 ) $ 95,334 Amortization expense associated with intangible assets for the three months ended June 30, 2017 and 2016 was $14.3 million and $12.8 million, respectively, and for the six months ended June 30, 2017 and 2016 was $30.5 million and $25.5 million, respectively. Estimated future amortization expense as of June 30, 2017 is as follows (in thousands): Remainder of 2017 $ 15,830 2018 16,023 2019 8,496 2020 6,222 2021 5,826 Thereafter 12,894 Total $ 65,291 |
Accrued and Other Current Liabi
Accrued and Other Current Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Payables And Accruals [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): June 30, December 31, 2017 2016 Accrued compensation $ 73,833 $ 82,354 Accrued restructuring 43,937 55,942 Accrued publisher, content and ad network costs 21,816 44,362 Deferred revenue 22,700 33,659 Accrued tax liabilities 30,945 29,558 Accrued fixed assets and maintenance 25,214 25,265 Accrued other 88,602 109,797 Total $ 307,047 $ 380,937 |
Investments in Privately-Held C
Investments in Privately-Held Companies | 6 Months Ended |
Jun. 30, 2017 | |
Investments All Other Investments [Abstract] | |
Investments in Privately-Held Companies | Note 7. Investments in Privately-Held Companies The Company makes strategic investments in privately-held companies and assesses the accounting for these investments under the equity or cost method. The Company also evaluates each investee to determine if the investee is a variable interest entity and, if so, whether the Company is the primary beneficiary of the variable interest entity. The Company has determined, as of June 30, 2017, there were no variable interest entities required to be consolidated in the Company’s consolidated financial statements. The Company’s investments in privately-held companies are primarily accounted for using the cost method which had a carrying value of $35.2 million and $90.2 million as of June 30, 2017 and December 31, 2016, respectively. The maximum loss the Company can incur for its investments is their carrying value. These investments in privately-held companies are included within Other Assets on the consolidated balance sheets. The Company periodically evaluates the carrying value of the cost-method investments, when events and circumstances indicate that the carrying amount of the investment may not be recovered. The Company estimates the fair value of the cost-method investments to assess whether impairment losses shall be recorded using Level 3 inputs. These investments include the Company’s holdings in privately-held companies that are not exchange traded and therefore not supported with observable market prices hence the Company may determine the fair value by reviewing equity valuation reports, current financial results, long-term plans of the private company, the amount of cash that the private company has on-hand, the ability to obtain additional financing and overall market conditions in which the private company operates. In the three months ended June 30, 2017, the Company determined that the estimated fair value of a cost-method investment, valued using Level 3 inputs, was below its carrying value and that the carrying value of this investment was not expected to be recoverable within a reasonable period of time. The Company calculated the expected value of the cost-method investment based on third-party offers received by the investee and the Company’s expectation of its negotiated investment value based on the amount of cash that the investee has on-hand, the investee’s ability to obtain additional financing and overall market conditions in which the investee operates. Based on this analysis, the Company recorded a $55.0 million other-than-temporary impairment charge during the three months ended June 30, 2017, which was recorded within other income (expense), net in the consolidated statements of operations. No impairment charges have been recorded in the three months ended March 31, 2017, and three and six months ended June 30, 2016. |
Convertible Senior Notes
Convertible Senior Notes | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Note 8. Convertible Senior Notes In 2014, the Company issued $935.0 million principal amount of 2019 Notes and $954.0 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 June 30, 2017 June 30, 2017 The Notes consisted of the following (in thousands): June 30, 2017 December 31, 2016 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) (112,758 ) (193,774 ) (136,376 ) (213,657 ) Net carrying amount $ 822,242 $ 760,226 $ 798,624 $ 740,343 Carrying amount of the equity component (2) $ 222,826 $ 283,283 $ 222,826 $ 283,283 (1) (2) As of June 30, 2017, the remaining life of the 2019 Notes and 2021 Notes is approximately 26 months and 50 months, respectively. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2017 | |
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 during the period. 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, during the period, including potential dilutive common stock instruments. In the three and six months ended June 30, 2017 and 2016, 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net loss $ (116,488 ) $ (107,217 ) $ (178,047 ) $ (186,948 ) Basic shares: Weighted-average common shares outstanding 734,178 704,174 730,348 700,920 Weighted-average restricted stock subject to repurchase (4,109 ) (5,848 ) (4,265 ) (5,961 ) Weighted-average shares used to compute basic net loss per share 730,069 698,326 726,083 694,959 Diluted shares: Weighted-average shares used to compute diluted net loss per share 730,069 698,326 726,083 694,959 Net loss per share attributable to common stockholders: Basic $ (0.16 ) $ (0.15 ) $ (0.25 ) $ (0.27 ) Diluted $ (0.16 ) $ (0.15 ) $ (0.25 ) $ (0.27 ) The following number of potential common shares 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 and Six Months Ended June 30, 2017 2016 RSUs 37,979 58,806 Warrants 24,329 24,329 Stock options 5,301 9,340 Shares subject to repurchase and others 6,410 10,457 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 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 common stock is below $105.28, the warrants are anti-dilutive. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders Equity Note [Abstract] | |
Stockholders' Equity | Note 10. Stockholders’ Equity 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 Incentive 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 have been issued under the 2007 Equity Incentive Plan since 2013. 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. During the six months ended June 30, 2017, employees purchased an aggregate of 1.1 million shares under the ESPP at a weighted-average price of $12.43 per share. During the six months ended June 30, 2016, employees purchased an aggregate of 1.3 million shares under the ESPP at a price of $11.99 per share. During the three months ended June 30, 2017 and 2016, the Company recorded $1.8 million and $5.7 million, respectively, and recorded $4.4 million and $11.4 million during the six months ended June 30, 2017 and 2016, respectively, of stock-based compensation expense related to the ESPP. 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 up 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 six months ended June 30, 2017 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, 2016 5,097 $ 23.04 Vested (1,166 ) $ 23.76 Canceled (441 ) $ 38.03 Unvested restricted common stock at June 30, 2017 3,490 $ 20.90 Stock Option Activity A summary of stock option activity for the six months ended June 30, 2017 is as follows (in thousands, except years and per share data): Options Outstanding Weighted- Weighted- Average Average Remaining Number of Exercise Contractual Life Aggregate Shares Price Per Share (in years) Intrinsic Value Outstanding at December 31, 2016 8,723 $ 7.71 $ 4.25 $ 98,240 Options exercised (3,239 ) $ 2.26 Options canceled (183 ) $ 2.72 Outstanding at June 30, 2017 5,301 $ 11.20 5.17 $ 56,414 Exercisable at June 30, 2017 4,192 $ 8.73 4.42 $ 49,988 The total intrinsic values of stock options exercised during the three months ended June 30, 2017 and 2016 were $6.7 million and $12.4 million, respectively, and $44.1 million and $32.2 million during the six months ended June 30, 2017 and 2016, respectively. Performance Restricted Stock Units Activity The Company grants restricted stock units to certain of its executive officers periodically that vest based on the Company’s attainment of the annual financial performance goals and the executives’ continued employment through the vesting date, approximately one year (“PRSUs”). These PRSUs are granted when the annual performance targets are set by the Compensation Committee of the Board of Directors, generally in the first quarter of each financial year. During the six months ended June 30, 2017, the Company granted 318,400 PRSUs, at the 100% target level, for the 2017 performance goals with a weighted-average grant date fair value of $15.28 per share. During the year ended December 31, 2016, the Company granted 165,833 PRSUs, at the 100% target level, of which 117,808 vested in 2017. The Company also grants restricted stock units to certain of its executive officers that vest based on Twitter stock price performance relative to a broad-market index over a two year period from the grant date and the executives continued employment through the vesting date (“TSR RSUs”). During the six months ended June 30, 2017, the Company granted 134,400 TSR RSUs with a weighted-average grant date fair value of $13.02 per share. In addition, there are 1,408,533 additional PRSUs and TSR RSUs that will vest based on performance goals and Total Shareholder Return (“TSR”) targets in 2018 to 2020, if achieved, at target levels. Since the performance and TSR targets for those additional awards have not been established, they are not considered granted nor are they presented as outstanding. RSU Activity The following table summarizes the activity related to the Company’s RSUs, excluding PRSUs, for the six months ended June 30, 2017. 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, 2016 48,069 $ 22.64 Granted 9,111 $ 15.23 Vested (11,138 ) $ 22.29 Canceled (8,063 ) $ 22.61 Unvested and outstanding at June 30, 2017 37,979 $ 20.97 The total fair value of RSUs vested during the three months ended June 30, 2017 and 2016 was $86.1 million and $119.8 million, respectively, and $187.0 million and $212.4 million during the six months ended June 30, 2017 and 2016, respectively. 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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Cost of revenue $ 6,253 $ 7,858 $ 12,205 $ 15,826 Research and development 63,625 90,916 128,011 166,495 Sales and marketing 20,694 45,856 45,783 91,957 General and administrative 22,824 23,065 44,394 44,333 Total stock-based compensation expense $ 113,396 $ 167,695 $ 230,393 $ 318,611 The Company capitalized $14.2 million and $17.9 million of stock-based compensation expense associated with the cost for developing software for internal use in the three months ended June 30, 2017 and 2016, respectively, and $30.3 million and $40.5 million in the six months ended June 30, 2017 and 2016, respectively. As of June 30, 2017, there was $738.2 million of gross unamortized stock-based compensation expense related to unvested awards which will be recognized, net of actual forfeiture in the future, over a weighted-average period of 2.3 years. Upon adoption of the stock-based compensation expense simplification rule as of January 1, 2017, the Company no longer applies a forfeiture rate to determine the unamortized stock-based compensation expense; instead, the Company accounts for forfeitures as they occur. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
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, 2012 and 2013. 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 $3.4 million and $2.6 million for the three months ended June 30, 2017 and 2016, respectively, and an income tax provision of $6.6 million and $4.7 million for the six months ended June 30, 2017 and 2016, respectively. As of June 30, 2017, 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 six months ended June 30, 2017 will not be realized by the end of the 2017 fiscal year. Accordingly, the Company did not record the tax benefits of the U.S. losses incurred during the six months ended June 30, 2017. 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 and six months ended June 30, 2017, the amount of gross unrecognized tax benefits increased by $12.8 million and $23.5 million, respectively. As of June 30, 2017, the Company has $293.0 million of unrecognized tax benefits, including $286.0 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, while the remaining $7.0 million of unrecognized tax benefits which, if recognized, would affect the annual effective tax rate. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 12. Commitments and Contingencies Credit Facility The Company has a revolving credit agreement with certain lenders, which provides for a $1.0 billion revolving unsecured credit facility maturing on October 22, 2018. The Company is obligated to pay interest on loans under the credit facility and 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. As of June 30, 2017, 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 through 2028. 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. There were no material changes in the Company’s leases compared to the disclosure in its Annual Report on Form 10-K for the fiscal year ended December 31, 2016. Legal Proceedings The Company is currently involved in, and will likely in the future be involved in, legal proceedings, claims and government investigations in the normal course of business. These proceedings, in the form of both individual and class action litigation, have included, but are not limited to matters involving intellectual property, defamation, privacy, securities, employment and contractual rights. 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 June 30, 2017 and December 31, 2016, there was no litigation or contingency with at least a reasonable possibility of a material loss. No material losses have been recorded during the three and six months ended June 30, 2017 and 2016 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 June 30, 2017 and December 31, 2016. |
Operations by Geographic Area
Operations by Geographic Area | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenue by services: Advertising services $ 489,148 $ 534,524 $ 962,928 $ 1,065,265 Data licensing and other 84,707 67,434 159,178 131,214 Total revenue $ 573,855 $ 601,958 $ 1,122,106 $ 1,196,479 Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenue by geographic area: United States $ 334,675 $ 360,676 $ 675,259 $ 750,943 International 239,180 241,282 446,847 445,536 Total revenue $ 573,855 $ 601,958 $ 1,122,106 $ 1,196,479 Japan accounted for $74.2 million and $61.2 million, or 13% and 10% of total revenue for the three months ended June 30, 2017 and 2016, respectively, and also for $146.8 million, or 13% of total revenue for the six months ended June 30, 2017. No individual country from the international markets contributed in excess of 10% of the total revenue for the six months ended June 30, 2016. Property and Equipment, net The following table sets forth property and equipment, net by geographic area (in thousands): June 30, December 31, 2017 2016 Property and equipment, net: United States $ 730,269 $ 728,429 International 51,003 55,472 Total property and equipment, net $ 781,272 $ 783,901 |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 14. Related Party Transactions The Company has a partnership agreement for no consideration with Square, Inc., for which Jack Dorsey (the Company’s Chief Executive Officer) serves as Chief Executive Officer, to enable U.S. political donations through Tweets. Neither Square, Inc. nor the Company will pay each other any amounts in connection with the agreement. The agreement has no impact on the Company’s financial statements. |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | Note 15. Restructuring Charges On October 25, 2016, the Board of Directors of the Company approved a reduction in force plan (“2016 Plan”) of up to approximately 9% of the Company’s positions globally. The reduction in force was undertaken to eliminate investment in noncore areas and drive toward greater efficiency, while allowing the Company to continue to invest in its highest priorities. The Company expects the reduction in force to be completed in 2017. On December 17, 2016, the Board of Directors of the Company approved a lease abandonment plan (“2016 Lease Plan”) to abandon excess office space with lease terms expiring through 2028. The following table summarizes the activities related to restructuring charges, as discussed above (in thousands): 2016 Employee 2016 Termination Plan Lease Plan Charges $ 21,611 $ 79,685 Cash payment (11,629 ) (3,562 ) Non-cash and other adjustments (6,357 ) (19,577 ) Accrued as of December 31, 2016 $ 3,625 $ 56,546 Charges (1) $ 788 $ 1,539 Cash payment (4,240 ) (11,319 ) Non-cash and other adjustments 108 14 Accrued as of June 30, 2017 $ 281 $ 46,780 Reflected in consolidated balance sheets as of June 30, 2017: Accrued and other current liabilities $ 281 $ 43,656 Other long-term liabilities $ — $ 3,124 (1) recorded a reduction to restructuring charges of $0.2 million within sales and marketing in the consolidated statements of operations. recorded restructuring charges of $1.3 million within sales and marketing, $0.6 million within research and development, $0.3 million within general and administrative and $0.1 million within cost of revenue in the consolidated statements of operations. |
Description of Business and S22
Description of Business and Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
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 (“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. 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, 2016. |
Use of Estimates | Use of Estimates The preparation of the Company’s consolidated financial statements in conformity with 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. 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. 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently adopted accounting pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard update on simplifying the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance also allows an entity to account for forfeitures when they occur. This guidance became effective for reporting periods beginning after December 15, 2016. The Company adopted this new guidance on January 1, 2017. Upon adoption, tax benefits in excess of stock-based compensation costs, and tax deficiencies, are recorded in the consolidated statements of operations as a component of the provision for income taxes, whereas they previously were recorded in equity. The previously unrecognized excess tax benefits as of December 31, 2016 were recorded as an increase to deferred tax assets. However, given the valuation allowance placed on substantially all of the Company’s deferred tax assets, the recognition upon adoption did not have an impact on the Company’s accumulated deficit. As a result of adopting the new standard utilizing the modified retrospective approach, the Company’s deferred tax assets increased by approximately $0.93 billion with a corresponding increase in its valuation allowance. The Company also elected to account for forfeitures as they occur, rather than estimate expected forfeitures. The adoption of this new guidance resulted in a net cumulative-effect adjustment of $13.3 million increase to accumulated deficit as of January 1, 2017, related to the accounting of forfeitures using the modified retrospective method. Additionally, the Company adopted the aspects of the guidance affecting the cash flow presentation retrospectively, which resulted in an immaterial reclassification of excess tax benefits from financing activities to operating activities in the Company’s consolidated statements of cash flows. In January 2017, the FASB issued a new accounting standard update on simplifying the accounting for goodwill impairment. The new guidance eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The Company adopted this guidance prospectively during the three months ended March 31, 2017 and the adoption had no impact on the Company’s financial statements. In May 2017, the FASB issued a new accounting standard update on clarifying when changes to share-based payment awards must be accounted for as modifications. According to the new guidance, entities will apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. The Company adopted this guidance prospectively during the three months ended June 30, 2017 and the adoption had no impact on the Company’s financial statements. Recently issued accounting pronouncements not yet adopted 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 GAAP guidance on this topic and eliminate 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. The guidance will be effective for fiscal years, and interim periods with those fiscal years, beginning after December 15, 2017 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. In March 2016, April 2016, May 2016 and December 2016, the FASB further amended the guidance to clarify the implementation on principal versus agent considerations, the identification of performance obligation and the licensing implementation guidance to provide narrow-scope improvements and practical expedients, and technical corrections and improvements. The Company will adopt this standard effective January 1, 2018 and currently anticipates adopting the standard using the modified retrospective method. The Company is still in the process of completing its analysis of the impact this standard will have on the consolidated financial statements including its disclosure. Specifically, while the Company has not yet finalized its analysis of the recognition impact this standard will have on advertising revenue, the Company does not expect the impact to be material; the Company is still assessing the recognition impact of adopting this standard on data licensing and other revenue; and the Company has not completed its assessment of the presentation impact of adoption of the new principal versus agent guidance on its arrangements. As part of the Company’s assessment and implementation plan, the Company is evaluating and implementing changes to its policies, procedures and controls. In March 2017, the FASB issued a new accounting standard update on shortening the premium amortization period for purchased non-contingently callable debt securities. The new guidance shortens the amortization period for the premium on purchased non-contingently callable debt securities to the earliest call date. Currently, entities generally amortize the premium as a yield adjustment over the contractual life of the security. This guidance will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. Early adoption is permitted. The Company is evaluating the impact of adopting this new accounting standard update on the financial statements and related disclosures. With the exception of the standards discussed above, there have been no other recent accounting pronouncements or changes in accounting pronouncements during the six months ended June 30, 2017, as compared to the recent accounting pronouncements described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, that are of significance or potential significance to the Company. |
Cash, Cash Equivalents and Sh23
Cash, Cash Equivalents and Short-term Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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): June 30, December 31, 2017 2016 Cash and cash equivalents: Cash $ 251,554 $ 253,808 Money market funds 642,605 422,515 U.S. government and agency securities including treasury bills 27,899 12,639 Corporate notes, commercial paper and certificates of deposit 366,265 299,636 Total cash and cash equivalents $ 1,288,323 $ 988,598 Short-term investments: U.S. government and agency securities including treasury bills $ 1,146,379 $ 1,183,768 Corporate notes, commercial paper and certificates of deposit 1,645,210 1,602,213 Total short-term investments $ 2,791,589 $ 2,785,981 |
Contractual Maturities of Securities Classified as Available-for-Sale | The contractual maturities of securities classified as available-for-sale as of June 30, 2017 were as follows (in thousands): June 30, 2017 Due within one year $ 1,969,093 Due after one year through two years 822,496 Total $ 2,791,589 |
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): June 30, 2017 Gross Gross Gross Aggregated Amortized Unrealized Unrealized Estimated Costs Gains Losses Fair Value U.S. government and agency securities including treasury bills $ 1,148,568 $ 157 $ (2,346 ) $ 1,146,379 Corporate notes, commercial paper and certificates of deposit 1,645,451 275 (516 ) 1,645,210 Total available-for-sale securities classified as short-term investments $ 2,794,019 $ 432 $ (2,862 ) $ 2,791,589 December 31, 2016 Gross Gross Gross Aggregated Amortized Unrealized Unrealized Estimated Costs Gains Losses Fair Value U.S. government and agency securities including treasury bills $ 1,185,274 $ 136 $ (1,642 ) $ 1,183,768 Corporate notes, commercial paper and certificates of deposit 1,603,048 114 (949 ) 1,602,213 Total available-for-sale securities classified as short-term investments $ 2,788,322 $ 250 $ (2,591 ) $ 2,785,981 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and December 31, 2016 based on the three-tier fair value hierarchy (in thousands): June 30, 2017 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 642,605 $ — $ — $ 642,605 Treasury bills 27,899 — — 27,899 Corporate notes — 768 — 768 Commercial paper — 362,485 — 362,485 Certificates of deposit — 3,012 — 3,012 Short-term investments: U.S. government securities — 733,924 — 733,924 Agency securities — 412,455 — 412,455 Corporate notes — 752,793 — 752,793 Commercial paper — 263,409 — 263,409 Certificates of deposit — 629,008 — 629,008 Other current assets: Foreign currency contracts — 2,966 — 2,966 Total $ 670,504 $ 3,160,820 $ — $ 3,831,324 Liabilities Other current liabilities: Foreign currency contracts — 1,472 — 1,472 Total $ — $ 1,472 $ — $ 1,472 December 31, 2016 Level 1 Level 2 Level 3 Total Assets Cash equivalents: Money market funds $ 422,515 $ — $ — $ 422,515 Treasury bills 12,639 — — 12,639 Corporate notes — 7,387 — 7,387 Commercial paper — 292,249 — 292,249 Short-term investments: U.S. government securities — 657,502 — 657,502 Agency securities — 526,266 — 526,266 Corporate notes — 689,986 — 689,986 Commercial paper — 311,238 — 311,238 Certificates of deposit — 600,989 — 600,989 Other current assets: Foreign currency contracts — 1,955 — 1,955 Total $ 435,154 $ 3,087,572 $ — $ 3,522,726 Liabilities Other current liabilities: Foreign currency contracts — 500 — 500 Total $ — $ 500 $ — $ 500 |
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): June 30, December 31, Balance Sheet Location 2017 2016 Assets Foreign currency contracts not designated as hedging instruments Other current assets $ 2,966 $ 1,955 Liabilities Foreign currency contracts not designated as hedging instruments Other current liabilities $ 1,472 $ 500 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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): June 30, December 31, 2017 2016 Property and equipment, net Equipment $ 990,795 $ 909,797 Furniture and leasehold improvements 319,414 304,613 Capitalized software 398,983 353,163 Construction in progress 71,694 74,255 Total 1,780,886 1,641,828 Less: Accumulated depreciation and amortization (999,614 ) (857,927 ) Property and equipment, net $ 781,272 $ 783,901 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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, 2016 $ 1,185,315 Foreign currency translation adjustment and other 874 Balance as of June 30, 2017 $ 1,186,189 |
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 June 30, 2017: Patents and developed technologies $ 123,324 $ (63,434 ) $ 59,890 Publisher and advertiser relationships 53,100 (47,699 ) 5,401 Total $ 176,424 $ (111,133 ) $ 65,291 December 31, 2016: Patents and developed technologies $ 122,611 $ (47,160 ) $ 75,451 Publisher and advertiser relationships 53,100 (33,217 ) 19,883 Total $ 175,711 $ (80,377 ) $ 95,334 |
Schedule of Estimated Future Amortization Expenses | Estimated future amortization expense as of June 30, 2017 is as follows (in thousands): Remainder of 2017 $ 15,830 2018 16,023 2019 8,496 2020 6,222 2021 5,826 Thereafter 12,894 Total $ 65,291 |
Accrued and Other Current Lia27
Accrued and Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Payables And Accruals [Abstract] | |
Accrued and Other Current Liabilities | The following table presents the detail of accrued and other current liabilities for the periods presented (in thousands): June 30, December 31, 2017 2016 Accrued compensation $ 73,833 $ 82,354 Accrued restructuring 43,937 55,942 Accrued publisher, content and ad network costs 21,816 44,362 Deferred revenue 22,700 33,659 Accrued tax liabilities 30,945 29,558 Accrued fixed assets and maintenance 25,214 25,265 Accrued other 88,602 109,797 Total $ 307,047 $ 380,937 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Components of Notes | The Notes consisted of the following (in thousands): June 30, 2017 December 31, 2016 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) (112,758 ) (193,774 ) (136,376 ) (213,657 ) Net carrying amount $ 822,242 $ 760,226 $ 798,624 $ 740,343 Carrying amount of the equity component (2) $ 222,826 $ 283,283 $ 222,826 $ 283,283 (1) (2) |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net loss $ (116,488 ) $ (107,217 ) $ (178,047 ) $ (186,948 ) Basic shares: Weighted-average common shares outstanding 734,178 704,174 730,348 700,920 Weighted-average restricted stock subject to repurchase (4,109 ) (5,848 ) (4,265 ) (5,961 ) Weighted-average shares used to compute basic net loss per share 730,069 698,326 726,083 694,959 Diluted shares: Weighted-average shares used to compute diluted net loss per share 730,069 698,326 726,083 694,959 Net loss per share attributable to common stockholders: Basic $ (0.16 ) $ (0.15 ) $ (0.25 ) $ (0.27 ) Diluted $ (0.16 ) $ (0.15 ) $ (0.25 ) $ (0.27 ) |
Summary of Potential Common Shares Excluded from Calculation of Diluted Net Loss Per Share Attributable to Common Stockholders | The following number of potential common shares 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 and Six Months Ended June 30, 2017 2016 RSUs 37,979 58,806 Warrants 24,329 24,329 Stock options 5,301 9,340 Shares subject to repurchase and others 6,410 10,457 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Stockholders Equity Note [Abstract] | |
Summary of Restricted Stock Activity | The activities for the restricted common stock issued to employees for the six months ended June 30, 2017 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, 2016 5,097 $ 23.04 Vested (1,166 ) $ 23.76 Canceled (441 ) $ 38.03 Unvested restricted common stock at June 30, 2017 3,490 $ 20.90 |
Summary of Stock Option Activity | A summary of stock option activity for the six months ended June 30, 2017 is as follows (in thousands, except years and per share data): Options Outstanding Weighted- Weighted- Average Average Remaining Number of Exercise Contractual Life Aggregate Shares Price Per Share (in years) Intrinsic Value Outstanding at December 31, 2016 8,723 $ 7.71 $ 4.25 $ 98,240 Options exercised (3,239 ) $ 2.26 Options canceled (183 ) $ 2.72 Outstanding at June 30, 2017 5,301 $ 11.20 5.17 $ 56,414 Exercisable at June 30, 2017 4,192 $ 8.73 4.42 $ 49,988 |
Summary of RSU Activity Excluding PRSU | The following table summarizes the activity related to the Company’s RSUs, excluding PRSUs, for the six months ended June 30, 2017. 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, 2016 48,069 $ 22.64 Granted 9,111 $ 15.23 Vested (11,138 ) $ 22.29 Canceled (8,063 ) $ 22.61 Unvested and outstanding at June 30, 2017 37,979 $ 20.97 |
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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Cost of revenue $ 6,253 $ 7,858 $ 12,205 $ 15,826 Research and development 63,625 90,916 128,011 166,495 Sales and marketing 20,694 45,856 45,783 91,957 General and administrative 22,824 23,065 44,394 44,333 Total stock-based compensation expense $ 113,396 $ 167,695 $ 230,393 $ 318,611 |
Operations by Geographic Area (
Operations by Geographic Area (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenue by services: Advertising services $ 489,148 $ 534,524 $ 962,928 $ 1,065,265 Data licensing and other 84,707 67,434 159,178 131,214 Total revenue $ 573,855 $ 601,958 $ 1,122,106 $ 1,196,479 Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Revenue by geographic area: United States $ 334,675 $ 360,676 $ 675,259 $ 750,943 International 239,180 241,282 446,847 445,536 Total revenue $ 573,855 $ 601,958 $ 1,122,106 $ 1,196,479 |
Property and Equipment Net by Geographic Area | The following table sets forth property and equipment, net by geographic area (in thousands): June 30, December 31, 2017 2016 Property and equipment, net: United States $ 730,269 $ 728,429 International 51,003 55,472 Total property and equipment, net $ 781,272 $ 783,901 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Restructuring And Related Activities [Abstract] | |
Summary of Activities Related to Restructuring Charges | The following table summarizes the activities related to restructuring charges, as discussed above (in thousands): 2016 Employee 2016 Termination Plan Lease Plan Charges $ 21,611 $ 79,685 Cash payment (11,629 ) (3,562 ) Non-cash and other adjustments (6,357 ) (19,577 ) Accrued as of December 31, 2016 $ 3,625 $ 56,546 Charges (1) $ 788 $ 1,539 Cash payment (4,240 ) (11,319 ) Non-cash and other adjustments 108 14 Accrued as of June 30, 2017 $ 281 $ 46,780 Reflected in consolidated balance sheets as of June 30, 2017: Accrued and other current liabilities $ 281 $ 43,656 Other long-term liabilities $ — $ 3,124 (1) recorded a reduction to restructuring charges of $0.2 million within sales and marketing in the consolidated statements of operations. recorded restructuring charges of $1.3 million within sales and marketing, $0.6 million within research and development, $0.3 million within general and administrative and $0.1 million within cost of revenue in the consolidated statements of operations. |
Description of Business and S33
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Jan. 01, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Increase in deferred tax assets with corresponding increase in valuation allowance | $ 930 | |
Increase in accumulated deficit resulting from the adoption of new guidance | $ 13.3 |
Cash, Cash Equivalents and Sh34
Cash, Cash Equivalents and Short-term Investments - Cash, Cash and Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Cash and cash equivalents: | ||||
Cash | $ 251,554 | $ 253,808 | ||
Cash and cash equivalents | 1,288,323 | 988,598 | $ 947,710 | $ 911,471 |
Short-term investments: | ||||
Short-term investments | 2,791,589 | 2,785,981 | ||
Money Market Funds | ||||
Cash and cash equivalents: | ||||
Cash and cash equivalents | 642,605 | 422,515 | ||
U.S. Government and Agency Securities Including Treasury Bills | ||||
Cash and cash equivalents: | ||||
Cash and cash equivalents | 27,899 | 12,639 | ||
Short-term investments: | ||||
Short-term investments | 1,146,379 | 1,183,768 | ||
Corporate Notes, Commercial Paper and Certificates of Deposit | ||||
Cash and cash equivalents: | ||||
Cash and cash equivalents | 366,265 | 299,636 | ||
Short-term investments: | ||||
Short-term investments | $ 1,645,210 | $ 1,602,213 |
Cash, Cash Equivalents and Sh35
Cash, Cash Equivalents and Short-term Investments - Contractual Maturities of Securities Classified as Available-for-Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Cash And Cash Equivalents And Marketable Securities [Abstract] | ||
Due within one year | $ 1,969,093 | |
Due after one year through two years | 822,496 | |
Total | $ 2,791,589 | $ 2,785,981 |
Cash, Cash Equivalents and Sh36
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 ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Gross Amortized Costs | $ 2,794,019 | $ 2,788,322 |
Gross Unrealized Gains | 432 | 250 |
Gross Unrealized Losses | (2,862) | (2,591) |
Aggregated Estimated Fair Value | 2,791,589 | 2,785,981 |
U.S. Government and Agency Securities Including Treasury Bills | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Gross Amortized Costs | 1,148,568 | 1,185,274 |
Gross Unrealized Gains | 157 | 136 |
Gross Unrealized Losses | (2,346) | (1,642) |
Aggregated Estimated Fair Value | 1,146,379 | 1,183,768 |
Corporate Notes, Commercial Paper and Certificates of Deposit | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Gross Amortized Costs | 1,645,451 | 1,603,048 |
Gross Unrealized Gains | 275 | 114 |
Gross Unrealized Losses | (516) | (949) |
Aggregated Estimated Fair Value | $ 1,645,210 | $ 1,602,213 |
Cash, Cash Equivalents and Sh37
Cash, Cash Equivalents and Short-term Investments - Additional Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | ||
Securities continuous loss position for 12 months or longer | $ 0 | |
Impairment loss on securities | $ 0 | $ 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Net Asset (Liability) [Abstract] | ||
Short-term investments | $ 2,791,589 | $ 2,785,981 |
Other current assets | 2,966 | 1,955 |
Other current liabilities | 1,472 | 500 |
Fair Value, Measurements, Recurring | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Total | 3,831,324 | 3,522,726 |
Total | 1,472 | 500 |
Fair Value, Measurements, Recurring | Agency Securities | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Short-term investments | 412,455 | 526,266 |
Fair Value, Measurements, Recurring | Money Market Funds | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 642,605 | 422,515 |
Fair Value, Measurements, Recurring | Treasury Bills | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 27,899 | 12,639 |
Fair Value, Measurements, Recurring | Corporate Notes | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 768 | 7,387 |
Short-term investments | 752,793 | 689,986 |
Fair Value, Measurements, Recurring | Commercial Paper | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 362,485 | 292,249 |
Short-term investments | 263,409 | 311,238 |
Fair Value, Measurements, Recurring | Certificates of Deposit | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 3,012 | |
Short-term investments | 629,008 | 600,989 |
Fair Value, Measurements, Recurring | US Government Securities | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Short-term investments | 733,924 | 657,502 |
Fair Value, Measurements, Recurring | Foreign currency contracts | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Other current assets | 2,966 | 1,955 |
Other current liabilities | 1,472 | 500 |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Total | 670,504 | 435,154 |
Level 1 | Fair Value, Measurements, Recurring | Money Market Funds | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 642,605 | 422,515 |
Level 1 | Fair Value, Measurements, Recurring | Treasury Bills | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 27,899 | 12,639 |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Total | 3,160,820 | 3,087,572 |
Total | 1,472 | 500 |
Level 2 | Fair Value, Measurements, Recurring | Agency Securities | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Short-term investments | 412,455 | 526,266 |
Level 2 | Fair Value, Measurements, Recurring | Corporate Notes | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 768 | 7,387 |
Short-term investments | 752,793 | 689,986 |
Level 2 | Fair Value, Measurements, Recurring | Commercial Paper | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 362,485 | 292,249 |
Short-term investments | 263,409 | 311,238 |
Level 2 | Fair Value, Measurements, Recurring | Certificates of Deposit | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Cash equivalents | 3,012 | |
Short-term investments | 629,008 | 600,989 |
Level 2 | Fair Value, Measurements, Recurring | US Government Securities | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Short-term investments | 733,924 | 657,502 |
Level 2 | Fair Value, Measurements, Recurring | Foreign currency contracts | ||
Fair Value, Net Asset (Liability) [Abstract] | ||
Other current assets | 2,966 | 1,955 |
Other current liabilities | $ 1,472 | $ 500 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2014 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Notional principal of foreign currency contracts outstanding | $ 553,600 | $ 553,600 | $ 536,900 | |||
Net gain (losses) on foreign currency contracts | 5,600 | $ (6,500) | 2,400 | $ (4,700) | ||
Convertible Notes | Senior Notes Due 2019 | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Debt instrument, principal amount | $ 935,000 | $ 935,000 | 935,000 | $ 935,000 | ||
Debt Instrument, percentage | 0.25% | 0.25% | 0.25% | |||
Debt Instrument, due date | 2,019 | |||||
Convertible Notes | Senior Notes Due 2021 | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Debt instrument, principal amount | $ 954,000 | $ 954,000 | $ 954,000 | $ 954,000 | ||
Debt Instrument, percentage | 1.00% | 1.00% | 1.00% | |||
Debt Instrument, due date | 2,021 | |||||
Convertible Notes | Level 2 | Senior Notes Due 2019 | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Estimated fair value of notes based on a market approach | $ 882,600 | $ 882,600 | ||||
Convertible Notes | Level 2 | Senior Notes Due 2021 | ||||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||||
Estimated fair value of notes based on a market approach | $ 872,100 | $ 872,100 |
Fair Value Measurements - Sch40
Fair Value Measurements - Schedule of Fair Values of Outstanding Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Foreign currency contracts not designated as hedging instruments | $ 2,966 | $ 1,955 |
Liabilities | ||
Foreign currency contracts not designated as hedging instruments | $ 1,472 | $ 500 |
Property and Equipment, Net - S
Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Property and equipment, net | ||
Property and equipment, gross | $ 1,780,886 | $ 1,641,828 |
Less: Accumulated depreciation and amortization | (999,614) | (857,927) |
Property and equipment, net | 781,272 | 783,901 |
Equipment | ||
Property and equipment, net | ||
Property and equipment, gross | 990,795 | 909,797 |
Furniture and Leasehold Improvements | ||
Property and equipment, net | ||
Property and equipment, gross | 319,414 | 304,613 |
Capitalized Software | ||
Property and equipment, net | ||
Property and equipment, gross | 398,983 | 353,163 |
Construction in Progress | ||
Property and equipment, net | ||
Property and equipment, gross | $ 71,694 | $ 74,255 |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets - Schedule of Goodwill Activities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill | |
Beginning balance | $ 1,185,315 |
Foreign currency translation adjustment and other | 874 |
Ending balance | $ 1,186,189 |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||||
Impairment charges on goodwill | $ 0 | $ 0 | |||
Amortization of intangible assets | $ 14,300,000 | $ 12,800,000 | $ 30,500,000 | $ 25,500,000 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 176,424 | $ 175,711 |
Accumulated Amortization | (111,133) | (80,377) |
Net Carrying Value | 65,291 | 95,334 |
Patents and Developed Technologies | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 123,324 | 122,611 |
Accumulated Amortization | (63,434) | (47,160) |
Net Carrying Value | 59,890 | 75,451 |
Publisher and Advertiser Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 53,100 | 53,100 |
Accumulated Amortization | (47,699) | (33,217) |
Net Carrying Value | $ 5,401 | $ 19,883 |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2017 | $ 15,830 | |
2,018 | 16,023 | |
2,019 | 8,496 | |
2,020 | 6,222 | |
2,021 | 5,826 | |
Thereafter | 12,894 | |
Net Carrying Value | $ 65,291 | $ 95,334 |
Accrued and Other Current Lia46
Accrued and Other Current Liabilities - Accrued and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Payables And Accruals [Abstract] | ||
Accrued compensation | $ 73,833 | $ 82,354 |
Accrued restructuring | 43,937 | 55,942 |
Accrued publisher, content and ad network costs | 21,816 | 44,362 |
Deferred revenue | 22,700 | 33,659 |
Accrued tax liabilities | 30,945 | 29,558 |
Accrued fixed assets and maintenance | 25,214 | 25,265 |
Accrued other | 88,602 | 109,797 |
Total | $ 307,047 | $ 380,937 |
Investments in Privately-Held47
Investments in Privately-Held Companies - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Schedule Of Investments [Abstract] | ||||||
Cost method investments | $ 35,200,000 | $ 35,200,000 | $ 90,200,000 | |||
Other than temporary impairment charge | $ 55,000,000 | $ 0 | $ 0 | $ 55,000,000 | $ 0 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Details) - Convertible Notes - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2014 | Dec. 31, 2016 | ||
Debt Instrument [Line Items] | |||||||
Initial purchasers' discount | $ 28,300 | ||||||
Debt issuance costs | 500 | ||||||
Proceeds from offerings, net of transaction costs | 1,860,000 | ||||||
Debt Instrument, frequency of periodic payment | semi-annually | ||||||
Debt Instrument, date of first required payment | Mar. 15, 2015 | ||||||
Debt Instrument Payment Terms | The interest rates are fixed at 0.25% and 1.00% per annum for the 2019 Notes and the 2021 Notes, respectively, and are payable semi-annually in arrears on March 15 and September 15 of each year, commencing on March 15, 2015. | ||||||
Amortization of initial purchasers' discount and debt discount, prior to capitalization of interest | $ 22,100 | $ 20,900 | $ 43,500 | $ 41,300 | |||
Coupon interest expense | 3,000 | $ 3,000 | 5,900 | $ 6,000 | |||
Senior Notes Due 2019 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, principal amount | 935,000 | 935,000 | $ 935,000 | $ 935,000 | |||
Initial purchasers' discount | [1] | $ 112,758 | $ 112,758 | 136,376 | |||
Debt instrument, interest rate percentage | 0.25% | 0.25% | 0.25% | ||||
Remaining period for convertible debt | 26 months | ||||||
Senior Notes Due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, principal amount | $ 954,000 | $ 954,000 | $ 954,000 | 954,000 | |||
Initial purchasers' discount | [1] | $ 193,774 | $ 193,774 | $ 213,657 | |||
Debt instrument, interest rate percentage | 1.00% | 1.00% | 1.00% | ||||
Remaining period for convertible debt | 50 months | ||||||
[1] | Included in the consolidated balance sheets within convertible notes and amortized over the remaining lives of the Notes. |
Convertible Senior Notes - Comp
Convertible Senior Notes - Components of Notes (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2014 | |
Principal amounts: | ||||
Net carrying amount | $ 1,582,468 | $ 1,538,967 | ||
Convertible Notes | ||||
Principal amounts: | ||||
Unamortized initial purchasers' discount and debt discount | $ (28,300) | |||
Convertible Notes | Senior Notes Due 2019 | ||||
Principal amounts: | ||||
Debt instrument, principal amount | 935,000 | 935,000 | 935,000 | |
Unamortized initial purchasers' discount and debt discount | [1] | (112,758) | (136,376) | |
Net carrying amount | 822,242 | 798,624 | ||
Carrying amount of the equity component | [2] | 222,826 | 222,826 | |
Convertible Notes | Senior Notes Due 2021 | ||||
Principal amounts: | ||||
Debt instrument, principal amount | 954,000 | 954,000 | $ 954,000 | |
Unamortized initial purchasers' discount and debt discount | [1] | (193,774) | (213,657) | |
Net carrying amount | 760,226 | 740,343 | ||
Carrying amount of the equity component | [2] | $ 283,283 | $ 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 - Basic and
Net Loss Per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (116,488) | $ (107,217) | $ (178,047) | $ (186,948) |
Basic shares: | ||||
Weighted-average common shares outstanding | 734,178 | 704,174 | 730,348 | 700,920 |
Weighted-average restricted stock subject to repurchase | (4,109) | (5,848) | (4,265) | (5,961) |
Weighted-average shares used to compute basic net loss per share | 730,069 | 698,326 | 726,083 | 694,959 |
Diluted shares: | ||||
Weighted-average shares used to compute diluted net loss per share | 730,069 | 698,326 | 726,083 | 694,959 |
Net loss per share attributable to common stockholders: | ||||
Basic | $ (0.16) | $ (0.15) | $ (0.25) | $ (0.27) |
Diluted | $ (0.16) | $ (0.15) | $ (0.25) | $ (0.27) |
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) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
RSUs | ||||
Earnings Per Share Basic [Line Items] | ||||
Anti-dilutive securities excluded from the computation of diluted net income per share | 37,979 | 58,806 | 37,979 | 58,806 |
Warrants | ||||
Earnings Per Share Basic [Line Items] | ||||
Anti-dilutive securities excluded from the computation of diluted net income per share | 24,329 | 24,329 | 24,329 | 24,329 |
Stock Options | ||||
Earnings Per Share Basic [Line Items] | ||||
Anti-dilutive securities excluded from the computation of diluted net income per share | 5,301 | 9,340 | 5,301 | 9,340 |
Restricted Common Stock and Others | ||||
Earnings Per Share Basic [Line Items] | ||||
Anti-dilutive securities excluded from the computation of diluted net income per share | 6,410 | 10,457 | 6,410 | 10,457 |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Earnings Per Share [Abstract] | |
Conversion Price | $ 77.64 |
Conversion spread will have a dilutive impact on diluted net income per share of common stock | shares | 24,300,000 |
Exercise price of the warrants | $ 105.28 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Issuance of common stock upon purchases under employee stock purchase plan, shares | 1,100,000 | 1,300,000 | |||
Employee stock purchase plan (ESOP), weighted average purchase price of shares purchased | $ 12.43 | $ 11.99 | |||
Gross unamortized stock-based compensation expense related to unvested awards | $ 738.2 | $ 738.2 | |||
Unrecognized share-based compensation expense, weighted average recognition period | 2 years 3 months 18 days | ||||
Internal Use Software and Website Development Costs | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation, capitalized amount | 14.2 | $ 17.9 | $ 30.3 | $ 40.5 | |
Restricted Common Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of Shares, vested | 1,166,000 | ||||
Employee Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock options exercised, intrinsic value | 6.7 | 12.4 | $ 44.1 | 32.2 | |
PRSUs | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | ||||
Number of Shares, granted | 318,400 | 165,833 | |||
Shares granted at target level | 100.00% | 100.00% | |||
Weighted Average Grant Date Fair Value Per Share, Granted | $ 15.28 | ||||
Number of Shares, vested | 117,808 | ||||
PRSUs and TSR RSUs | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Additional number of shares, that will vest based on performance goals and total shareholder return targets | 1,408,533 | ||||
TSR RSUs | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation arrangement by share-based payment award, award vesting period | 2 years | ||||
Number of Shares, granted | 134,400 | ||||
Weighted Average Grant Date Fair Value Per Share, Granted | $ 13.02 | ||||
Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of Shares, granted | 9,111,000 | ||||
Weighted Average Grant Date Fair Value Per Share, Granted | $ 15.23 | ||||
Number of Shares, vested | 11,138,000 | ||||
Fair value of restricted stock units vested | $ 86.1 | 119.8 | $ 187 | 212.4 | |
Maximum | Restricted Common Stock | All Acquisitions | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Equity compensation service period | 4 years | ||||
Employee Stock Purchase Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares available for issuance | 11,300,000 | 11,300,000 | |||
Outstanding shares of common stock percentage | 1.00% | ||||
Share-based compensation expense | $ 1.8 | $ 5.7 | $ 4.4 | $ 11.4 | |
2013 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares initially reserved | 68,300,000 | 68,300,000 | |||
Number of shares available for issuance | 60,000,000 | 60,000,000 | |||
Outstanding shares of common stock percentage | 5.00% | ||||
2007 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares issued during the period | 0 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Restricted Stock Activity (Details) - Restricted Common Stock shares in Thousands | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Unvested Shares, beginning of period | shares | 5,097 |
Number of Shares, vested | shares | (1,166) |
Number of Shares, Canceled | shares | (441) |
Number of Unvested Shares, end of period | shares | 3,490 |
Weighted Average Grant Date Fair Value Per Share, beginning of period | $ / shares | $ 23.04 |
Weighted Average Grant Date Fair Value Per Share, Vested | $ / shares | 23.76 |
Weighted Average Grant Date Fair Value Per Share, Canceled | $ / shares | 38.03 |
Weighted Average Grant Date Fair Value Per Share, end of period | $ / shares | $ 20.90 |
Stockholders' Equity - Summar55
Stockholders' Equity - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Options Outstanding - Number of Shares | ||
Outstanding at beginning of period | 8,723 | |
Options exercised | (3,239) | |
Options canceled | (183) | |
Outstanding at end of period | 5,301 | 8,723 |
Exercisable at end of period | 4,192 | |
Options Outstanding - Weighted-Average Exercise Price Per Share | ||
Outstanding at beginning of period | $ 7.71 | |
Options exercised | 2.26 | |
Options canceled | 2.72 | |
Outstanding at end of period | 11.20 | $ 7.71 |
Exercisable at end of period | $ 8.73 | |
Options Outstanding - Weighted-Average Remaining Contractual Life | ||
Outstanding | 5 years 2 months 1 day | 4 years 3 months |
Exercisable at end of period | 4 years 5 months 1 day | |
Options Outstanding - Aggregate Intrinsic Value | ||
Outstanding | $ 56,414 | $ 98,240 |
Exercisable at end of period | $ 49,988 |
Stockholders' Equity - Summar56
Stockholders' Equity - Summary of RSU Activity Excluding PRSU (Details) - RSUs shares in Thousands | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Unvested Shares, beginning of period | shares | 48,069 |
Number of Shares, granted | shares | 9,111 |
Number of Shares, vested | shares | (11,138) |
Number of Shares, Canceled | shares | (8,063) |
Number of Unvested Shares, end of period | shares | 37,979 |
Weighted Average Grant Date Fair Value Per Share, beginning of period | $ / shares | $ 22.64 |
Weighted Average Grant Date Fair Value Per Share, Granted | $ / shares | 15.23 |
Weighted Average Grant Date Fair Value Per Share, Vested | $ / shares | 22.29 |
Weighted Average Grant Date Fair Value Per Share, Canceled | $ / shares | 22.61 |
Weighted Average Grant Date Fair Value Per Share, end of period | $ / shares | $ 20.97 |
Stockholders' Equity - Compensa
Stockholders' Equity - Compensation Expense Allocated (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 113,396 | $ 167,695 | $ 230,393 | $ 318,611 |
Cost of Revenue | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 6,253 | 7,858 | 12,205 | 15,826 |
Research and Development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 63,625 | 90,916 | 128,011 | 166,495 |
Sales and Marketing | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | 20,694 | 45,856 | 45,783 | 91,957 |
General and Administrative | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 22,824 | $ 23,065 | $ 44,394 | $ 44,333 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 3,413 | $ 2,641 | $ 6,607 | $ 4,669 |
Unrecognized tax benefits, period change | 12,800 | 23,500 | ||
Unrecognized tax benefits | 293,000 | 293,000 | ||
Unrecognized tax benefits, if recognized would not affect the annual effective tax rate | 286,000 | 286,000 | ||
Unrecognized tax benefits, if recognized would affect the annual effective tax rate | $ 7,000 | $ 7,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Other Commitments [Line Items] | |
Expiration year of operating lease | 2,028 |
Revolving Credit Facility | |
Other Commitments [Line Items] | |
Unsecured revolving credit facility | $ 1,000,000,000 |
Line of credit facility, expiration date | Oct. 22, 2018 |
Line of credit facility amount | $ 0 |
Operations by Geographic Area -
Operations by Geographic Area - Revenue by Services and Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue: | ||||
Revenue | $ 573,855 | $ 601,958 | $ 1,122,106 | $ 1,196,479 |
United States | ||||
Revenue: | ||||
Revenue | 334,675 | 360,676 | 675,259 | 750,943 |
International | ||||
Revenue: | ||||
Revenue | 239,180 | 241,282 | 446,847 | 445,536 |
Advertising Services | ||||
Revenue: | ||||
Revenue | 489,148 | 534,524 | 962,928 | 1,065,265 |
Data Licensing And Other | ||||
Revenue: | ||||
Revenue | $ 84,707 | $ 67,434 | $ 159,178 | $ 131,214 |
Operations by Geographic Area61
Operations by Geographic Area - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($)Country | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | $ 573,855 | $ 601,958 | $ 1,122,106 | $ 1,196,479 |
International | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | 239,180 | 241,282 | 446,847 | $ 445,536 |
Revenue | Japan | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Revenue | $ 74,200 | $ 61,200 | $ 146,800 | |
Revenue | International | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Number of individual country that contributed in excess of ten percent to revenue | Country | 0 | |||
Revenue | Geographic Concentration Risk | Japan | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Concentration risk percentage | 13.00% | 10.00% | 13.00% |
Operations by Geographic Area62
Operations by Geographic Area - Property and Equipment Net by Geographic Area (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Property and equipment, net: | ||
Property and equipment, net | $ 781,272 | $ 783,901 |
United States | ||
Property and equipment, net: | ||
Property and equipment, net | 730,269 | 728,429 |
International | ||
Property and equipment, net: | ||
Property and equipment, net | $ 51,003 | $ 55,472 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Square Inc | |
Related Party Transaction [Line Items] | |
Agreement consideration amount | $ 0 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Details) | Oct. 25, 2016 | Jun. 30, 2017 |
Restructuring Cost And Reserve [Line Items] | ||
Percentage on employees reduction plan | 9.00% | |
Restructuring and related activities, lease terms expiration year | 2,028 | |
2016 Lease Plan | Abandonment Excess Office Space | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring and related activities, initiation date | Dec. 17, 2016 | |
Restructuring and related activities, lease terms expiration year | 2,028 |
Restructuring Charges - Summary
Restructuring Charges - Summary of Activities Related to Restructuring Charges (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | ||
Restructuring Cost And Reserve [Line Items] | |||
Accrued restructuring, reflected in accrued and other current liabilities | $ 43,937 | $ 55,942 | |
2016 Employee Termination Plan | |||
Restructuring Cost And Reserve [Line Items] | |||
Charges | 788 | [1] | 21,611 |
Cash payment | (4,240) | (11,629) | |
Non-cash and other adjustments | 108 | (6,357) | |
Accrued restructuring | 281 | 3,625 | |
Accrued restructuring, reflected in accrued and other current liabilities | 281 | ||
2016 Lease Plan | |||
Restructuring Cost And Reserve [Line Items] | |||
Charges | 1,539 | [1] | 79,685 |
Cash payment | (11,319) | (3,562) | |
Non-cash and other adjustments | 14 | (19,577) | |
Accrued restructuring | 46,780 | $ 56,546 | |
Accrued restructuring, reflected in accrued and other current liabilities | 43,656 | ||
Accrued restructuring, reflected in other long-term liabilities | $ 3,124 | ||
[1] | For the three months ended June 30, 2017, the Company recorded a reduction to restructuring charges of $0.2 million within sales and marketing in the consolidated statements of operations. For the six months ended June 30, 2017, the Company recorded restructuring charges of $1.3 million within sales and marketing, $0.6 million within research and development, $0.3 million within general and administrative and $0.1 million within cost of revenue in the consolidated statements of operations. |
Restructuring Charges - Summa66
Restructuring Charges - Summary of Activities Related to Restructuring Charges (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2017 | Jun. 30, 2017 | |
Sales and Marketing | ||
Restructuring Cost And Reserve [Line Items] | ||
Reduction to restructuring charges | $ 0.2 | |
Charges | $ 1.3 | |
Research and Development | ||
Restructuring Cost And Reserve [Line Items] | ||
Charges | 0.6 | |
General and Administrative | ||
Restructuring Cost And Reserve [Line Items] | ||
Charges | 0.3 | |
Cost of Revenue | ||
Restructuring Cost And Reserve [Line Items] | ||
Charges | $ 0.1 |