Roku (ROKU) 10-Q 10 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 31, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Trading Symbol	ROKU
Entity Registrant Name	Roku, Inc.
Entity Central Index Key	1,428,439
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Class A Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		68,400,971
Class B Common Stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		37,677,499

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 174,167	$ 177,250
Accounts receivable, net of allowances	123,612	120,553
Inventories	39,431	32,740
Prepaid expenses and other current assets	15,131	11,367
Deferred cost of revenue, current portion	1,439	3,007
Total current assets	353,780	344,917
Property and equipment, net	20,212	14,736
Deferred cost of revenue, non-current portion		5,403
Intangible assets, net	1,754	2,030
Goodwill	1,382	1,382
Other non-current assets	4,540	3,429
Total Assets	381,668	371,897
Current Liabilities:
Accounts payable and accrued liabilities	111,026	128,757
Deferred revenue, current portion	39,151	34,501
Total current liabilities	150,177	163,258
Deferred revenue, non-current portion	12,435	48,511
Other long-term liabilities	7,291	7,849
Total Liabilities	169,903	219,618
Commitments and contingencies (Note 7)
Stockholders’ Equity:
Preferred stock, $0.0001 par value
Common stock, $0.0001 par value	11	10
Additional paid-in capital	462,901	435,607
Accumulated deficit	(251,147)	(283,338)
Total stockholders’ equity	211,765	152,279
Total Liabilities and Stockholders’ Equity	$ 381,668	$ 371,897

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Statement Of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Common stock, par value	$ 0.0001	$ 0.0001

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net Revenue:
Total net revenue	$ 156,810	$ 99,627	$ 293,386	$ 199,720
Cost of Revenue:
Total cost of revenue	79,058	61,990	152,522	123,243
Gross Profit:
Total gross profit	77,752	37,637	140,864	76,477
Operating Expenses:
Research and development	40,196	25,776	74,322	48,118
Sales and marketing	22,259	14,667	42,577	28,722
General and administrative	15,429	10,577	30,999	20,855
Total operating expenses	77,884	51,020	147,898	97,695
Loss from Operations	(132)	(13,383)	(7,034)	(21,218)
Other Income (Expense), Net:
Interest expense	(57)	(304)	(108)	(471)
Change in fair value of preferred stock warrant liability		(1,916)		(2,651)
Other income, net	361	128	809	211
Total other income (expense), net	304	(2,092)	701	(2,911)
Income (Loss) Before Income Taxes	172	(15,475)	(6,333)	(24,129)
Income tax expense (benefit)	(354)	38	(225)	86
Net Income (Loss) Attributable to Common Stockholders	$ 526	$ (15,513)	$ (6,108)	$ (24,215)
Net income (loss) per share attributable to common stockholders—basic	$ 0.01	$ (3.18)	$ (0.06)	$ (4.98)
Net income (loss) per share attributable to common stockholders—diluted	$ 0	$ (3.18)	$ (0.06)	$ (4.98)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders—basic	102,652	4,882	101,079	4,866
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders—diluted	121,698	4,882	101,079	4,866
Player | Goods
Net Revenue:
Total net revenue	$ 66,469	$ 53,651	$ 127,968	$ 117,329
Cost of Revenue:
Total cost of revenue	51,730	50,212	103,528	103,122
Gross Profit:
Total gross profit	14,739	3,439	24,440	14,207
Platform | Services
Net Revenue:
Total net revenue	90,341	45,976	165,418	82,391
Cost of Revenue:
Total cost of revenue	27,328	11,778	48,994	20,121
Gross Profit:
Total gross profit	$ 63,013	$ 34,198	$ 116,424	$ 62,270

Condensed Consolidated Stateme5

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 6 months ended Jun. 30, 2018 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Treasury Stock	Accumulated Deficit
Balance at Dec. 31, 2017	$ 152,279	$ 10	$ 436,278	$ (671)	$ (283,338)
Balance, Shares at Dec. 31, 2017		99,157
Vesting of early exercised stock options	173		173
Issuance of common stock pursuant to equity incentive plans, net of taxes	17,384	$ 1	17,435	(52)
Issuance of common stock pursuant to equity incentive plans, net of taxes, Shares		5,763
Issuance of common stock pursuant to exercise of common stock warrants, net, Shares		141
Stock-based compensation expense	9,738		9,738
Cumulative effect change in accounting principle | Accounting Standards Update 2016-16	(40)				(40)
Cumulative effect change in accounting principle | Accounting Standards Update 2014-09	38,339				38,339
Net loss	(6,108)				(6,108)
Balance at Jun. 30, 2018	$ 211,765	$ 11	$ 463,624	$ (723)	$ (251,147)
Balance, Shares at Jun. 30, 2018		105,061

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net loss	$ (6,108)	$ (24,215)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization	3,606	2,580
Stock-based compensation expense	9,738	4,593
Provision for doubtful accounts	286	294
Change in fair value of preferred stock warrant liability		2,651
Noncash interest expense		300
Loss from exit of facilities	385
Loss on disposals of property and equipment		51
Changes in operating assets and liabilities:
Accounts receivable	9,383	22,839
Inventories	(6,799)	16,486
Prepaid expenses and other current assets	309	(2,098)
Deferred cost of revenue	2,010	(2,615)
Other noncurrent assets	(1,333)	(2,803)
Accounts payable and accrued liabilities	(19,000)	(6,485)
Other long-term liabilities	(558)	3,558
Deferred revenue	(3,387)	15,077
Net cash provided by (used in) operating activities	(11,468)	30,213
Cash flows from investing activities:
Purchase of property and equipment	(9,013)	(4,586)
Change in deposits		86
Net cash used in investing activities	(9,013)	(4,500)
Cash flows from financing activities:
Proceeds from borrowings, net		24,691
Repayments of borrowings		(15,000)
Proceeds from equity issued under incentive plans, net of repurchases	17,398	203
Net cash provided by financing activities	17,398	9,894
Net Increase (Decrease) In Cash	(3,083)	35,607
Cash and cash equivalents—Beginning of period	177,250	34,562
Cash and cash equivalents—End of period	174,167	70,169
Supplemental disclosures of cash flow information:
Cash paid for interest	1	136
Cash paid for income taxes	349	66
Supplemental disclosures of noncash investing and financing activities:
Unpaid portion of property and equipment purchases	$ 1,043	893
Unpaid initial public offering cost		186
Issuance of convertible preferred stock warrants in connection with debt		$ 2,032

The Company

The Company	6 Months Ended
	Jun. 30, 2018
Organization Consolidation And Presentation Of Financial Statements [Abstract]
The Company	1. THE COMPANY Organization and Description of Business Roku, Inc. (the “Company” or “Roku”), was formed in October 2002 as Roku LLC under the laws of the State of Delaware. On February 1, 2008, Roku LLC was converted into Roku, Inc., a Delaware corporation. The Company’s TV streaming platform allows users to easily discover and access a wide variety of movies and TV episodes, as well as live sports, music, news and more. The Company operates in two reportable segments and generates revenue through the sale of streaming players, advertising, subscription and transaction revenue sharing, as well as through licensing arrangements with TV brands and cable, satellite, and telecommunication service operators (“service operators”). Initial Public Offering On October 2, 2017, the Company completed its initial public offering (“IPO”) of Class A common stock, in which it sold 10.4 million shares, including 1.4 million shares pursuant to the underwriters’ over-allotment option. The shares were sold at an IPO price of $14.00 per share for net proceeds of $134.8 million, after deducting underwriting discounts and commissions of $10.1 million. Upon the closing of the Company’s IPO, all outstanding shares of its convertible preferred stock automatically converted into 80.8 million shares of Class B common stock and all outstanding convertible preferred stock warrants automatically converted to Class B common stock warrants on a one-for-one basis. The Company has two classes of authorized common stock – Class A common stock and Class B common stock. Class A common stock entitles holders to one vote per share, and Class B common stock entitles holders to 10 votes per share.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 1, 2018. The condensed consolidated balance sheet as of December 31, 2017 has been derived from the audited consolidated financial statements as of that date but does not include all of the information and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The interim financial information is unaudited, but reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the operating results to be expected for the full year or any future periods. There have been no material changes in the Company’s significant accounting policies, other than the adoption of Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606), Income taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740) Use of Judgements and Estimates The preparation of the Company’s condensed consolidated financial statements in accordance with U.S. GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Adoption of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Principles of Consolidation The condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and includes the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Comprehensive Loss Comprehensive loss is equal to the net loss for all periods presented. Therefore, the consolidated statements of comprehensive loss have been omitted from the condensed consolidated financial statements. Concentrations Customers accounting for 10% or more of the Company’s net revenue were as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Customer B * * * 10 % Customer C 17 % 18 % 17 % 20 % Customer E * * * 11 % Customers accounting for 10% or more of the Company’s accounts receivable were as follows: As of June 30, 2018 December 31, 2017 Customer C 10 % * % Customer D 12 16 * Less than 10% Content Licensing Fees The Company licenses content for viewing on The Roku Channel. The licensing arrangements can be for a fixed fee and/or advertising revenue share with specific windows of content availability. The Company capitalizes the content fees and records a corresponding liability at the gross amount of the liability when the license period begins, the cost of the content is known and the content is accepted and available for streaming. The Company amortizes licensed content assets into “Cost of Revenue, Platform” over the contractual window of availability . As of June 30, 2018, $0.1 million of content related expenses met these requirements and is included in “Prepaid expenses and other current assets ” . Adoption of New Accounting Standards On January 1, 2018, the Company adopted guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) On January 1, 2018, the Company adopted guidance in ASU 2016-16, Income taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740) Recently Issued Accounting Pronouncements Not Yet Adopted In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Fair Value Measurements Level 1 —Quoted prices in active markets for identical assets or liabilities. Financial assets and liabilities measured using Level 1 inputs include cash equivalents, accounts receivable, prepaid expenses, accounts payable and accrued liabilities. The Company considers all highly liquid investments purchased with an original or remaining maturity of less than three months at the date of purchase to be cash equivalents. The Company measured money market funds of $50.0 million as cash equivalents as of June 30, 2018 using Level 1 inputs. The Company did not have any cash equivalents as of December 31, 2017. Level 2 —Observable inputs other than quoted prices included within Level 1, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs other than quoted prices that are observable or are derived principally from, or corroborated by, observable market data by correlation or other means. The Company does not use Level 2 inputs to measure any assets or liabilities. Level 3 —Unobservable inputs that are supported by little or no market activity, are significant to the fair value of the assets or liabilities, and reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The Company does not use Level 3 inputs to measure any assets or liabilities as of June 30, 2018 and December 31, 2017. During the six months ended June 30, 2017, Level 3 instruments consisted of the Company’s preferred stock warrant liability in which the fair value was measured upon issuance and at each reporting date. Pursuant to the IPO, all preferred stock warrants were converted into Class B common stock warrants, which did not require further re-measurements as they were deemed permanent equity. For the three and six month periods ended June 30, 2017, the inputs that were used to determine the estimated fair value of the convertible preferred stock warrant liability as of the June 30, 2017 valuation date included remaining contractual term of the warrants, the risk-free interest rate, the volatility of comparable public companies over the remaining term, and the fair value of underlying shares. The significant unobservable inputs used in the fair value measurement of the convertible preferred stock warrant liability were the fair value of the underlying stock at the valuation date for periods prior to the IPO and the estimated term of the warrants. Generally, increases (decreases) in the fair value of the underlying stock and estimated term resulted in a directionally similar impact to the fair value measurement. The following table represents the activity of the fair value of Level 3 instruments (in thousands): Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 Convertible preferred stock warrant liability — beginning balance $ 10,725 $ 9,990 Fair value of new warrants issued 2,032 2,032 Change in fair value of preferred stock warrant liability 1,916 2,651 Convertible preferred stock warrant liability — ending balance $ 14,673 $ 14,673

Business Combinations

Business Combinations	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Business Combinations	3. BUSINESS COMBINATIONS On September 6, 2017, the Company acquired all of the outstanding shares of a privately held technology company located in Denmark to enhance the Company’s product offerings, for an aggregate purchase price of $3.5 million. The Company paid $3.0 million of the aggregate purchase price at the time of acquisition with $0.5 million payable one year after the acquisition date. In addition, the Company issued 0.1 million shares of its Class B common stock to two of the founders as part of a continuing services arrangement. The shares are subject to a right of repurchase which lapses over a three year period at varying prices per share. The purchase price allocation includes $1.4 million of goodwill and $2.2 million of identifiable intangible assets, which primarily consist of developed technology, with an expected useful life of

Balance Sheet Components

Balance Sheet Components	6 Months Ended
	Jun. 30, 2018
Balance Sheet Related Disclosures [Abstract]
Balance Sheet Components	4. Balance sheet components Accounts Receivable, Net of allowances —Accounts receivable, net of allowances, consisted of the following (in thousands): June 30, 2018 December 31, 2017 Gross accounts receivable $ 134,564 $ 138,292 Allowance for sales returns (4,504 ) (6,907 ) Allowance for sales incentives (6,153 ) (10,442 ) Other allowances (295 ) (390 ) Total allowances (10,952 ) (17,739 ) Total Accounts Receivable—net of allowances $ 123,612 $ 120,553 Allowance for Sales Returns —Allowance for sales returns consisted of the following activities (in thousands): June 30, 2018 December 31, 2017 Beginning balance $ (6,907 ) $ (6,916 ) Charged to revenue (6,755 ) (19,089 ) Utilization of sales return reserve 9,158 19,098 Ending balance $ (4,504 ) $ (6,907 ) Allowance for Sales Incentives —Allowance for sales incentives consisted of the following activities (in thousands): June 30, 2018 December 31, 2017 Beginning balance $ (10,442 ) $ (8,503 ) Charged to revenue (15,448 ) (44,264 ) Utilization of sales incentive reserve 19,737 42,325 Ending balance $ (6,153 ) $ (10,442 ) Property and Equipment, Net —Property and equipment, net consisted of the following (in thousands): June 30, 2018 December 31, 2017 Computers and equipment $ 13,508 $ 11,631 Leasehold improvements 13,270 8,437 Website and internal-use software 6,925 5,461 Office equipment and furniture 2,597 1,987 Total property and equipment 36,300 27,516 Accumulated depreciation and amortization (16,088 ) (12,780 ) Property and Equipment, net $ 20,212 $ 14,736 Depreciation and amortization expense for the three months ended June 30, 2018 and 2017 was $1.8 million and $1.3 Accounts Payable and Accrued Liabilities —Accounts payable and accrued liabilities consisted of the following (in thousands): June 30, 2018 December 31, 2017 Accounts payable $ 32,931 $ 56,413 Accrued royalty expense 5,638 17,165 Accrued inventory 11,206 2,382 Accrued payroll and related expenses 10,181 8,699 Accrued cost of revenue 13,783 12,210 Accrued payments to content publishers 25,209 24,037 Taxes and related liabilities 912 1,463 Customer prepayments 5,255 545 Other accrued expenses 5,911 5,843 Total Accounts Payable and Accrued Liabilities $ 111,026 $ 128,757 Deferred Revenue —Deferred revenue consisted of the following (in thousands): June 30, 2018 December 31, 2017 Platform, current $ 24,433 $ 19,022 Player, current 14,718 15,479 Total deferred revenue, current 39,151 34,501 Platform, non-current 7,271 42,674 Player, non-current 5,164 5,837 Total deferred revenue, non-current 12,435 48,511 Total Deferred Revenue (See Note 10) $ 51,586 $ 83,012

Debt

Debt	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Debt	5. DEBT The Company did not have any outstanding debt as of June 30, 2018 or December 31, 2017. Line of credit The Company first entered into a loan and security agreement (the “LSA”) with Silicon Valley Bank (“Bank’) in July 2011. The LSA was amended and restated in subsequent periods. The amended and restated loan and security agreement (the “Restated 2014 LSA”) entered into in November 2014, provides advances under a revolving line of credit up to $30.0 million and provides for letters of credit to be issued up to the lesser of the available line of credit, reduced by outstanding advances and drawn but unreimbursed letters of credit, or $5.0 million. The financial and non-financial covenants as well as the term of the agreement were updated in subsequent amendments to the Restated 2014 LSA. In June 2017, the Company entered into a second amendment to the Restated 2014 LSA. The advances under the second amendment carry a floating per annum interest rate equal to, at the Company’s option, (1) the prime rate or (2) LIBOR plus 2.75%, or the prime rate plus 1% depending on certain ratios. The amendment further changed the financial covenant to maintain a current ratio (calculated as current assets, divided by current liabilities less deferred revenue) greater than or equal to 1.25. The revolving line of credit terminates on June 30, 2019 at which time all outstanding advances becomes due and payable. As of June 30, 2018 and December 31, 2017, the Company was in compliance with all of the covenants in the amended Restated 2014 LSA. On July 18, 2018, the Company entered into a third amendment to the Restated 2014 LSA. The amendment increased the amount by which the Company can utilize its line of credit to support the issuances of letters of credits from $5.0 million to $30.0 million. The Company did not have any borrowings outstanding on the revolving line of credit as of June 30, 2018 and December 31, 2017. The Company had $3.1 million and $1.5 million outstanding in letters of credit as of June 30, 2018 and December 31, 2017, respectively. The interest rate on the line of credit was 4.83% and 4.31% as of June 30, 2018 and December 31, 2017, respectively. Term loan In June 2017, the Company entered into a subordinated loan agreement (“2017 Agreement”) with the Bank. The 2017 Agreement provided for a term loan borrowing of $40.0 million, with a minimum of $25.0 million to be initially drawn at the close of the agreement with the remaining amount available for a 24 month period, to be drawn in no less than $5.0 million increments. Advances under the term loan incur a facility fee equal to 1% of the drawn borrowings, in addition to interest payments at an interest rate equal to, at the Company’s option, (1) the prime rate plus 3.5% or (2) LIBOR plus 6.5%, subject to a 1% LIBOR floor. Additionally, the borrowings incur payment in kind interest fees equal to 2.5%, accruing to the unpaid borrowings balance, compounded monthly. Payment in kind interest may be settled in cash, at the Company’s election, during the term or at maturity. The Company is also obligated to pay final payment fees ranging from 1% to 4% depending on the timing of the payment. On October 31, 2017 the Company repaid the entire amount outstanding, and subsequently terminated the 2017 Agreement. In connection with the 2017 Agreement the Company issued 0.4 million warrants to purchase shares of Series H convertible preferred stock, with an exercise price of $9.17340. The warrants are exercisable up to ten years from the date of issuance. Upon repayment of the amounts borrowed and the subsequent termination of the 2017 Agreement, the Company cancelled 0.1 million warrants that were contingent on future borrowings. The warrant holders exercised 0.1 million warrants during the year ended December 31, 2017 and the remaining 0.2 million warrants during the three months ended March 31, 2018. There were no outstanding warrants as of June 30, 2018.

Stockholders' Deficit

Stockholders' Deficit	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
Stockholders' Deficit	6. STOCKHOLDERS’ DEFICIT Preferred Stock The Company had outstanding convertible preferred stock before its IPO. Upon closing of the Company’s IPO, all outstanding shares of its convertible preferred stock automatically converted into 80.8 million shares of Class B common stock on a one-to-one basis. On October 2, 2017, the Company filed an Amended and Restated Certificate of Incorporation, which changed the capital structure of the Company. The Company is now authorized to issue 10.0 million shares of undesignated preferred stock with rights and preferences determined by the Company’s Board of Directors (the “Board”) at the time of issuance of such shares. As of June 30, 2018 and December 31, 2017, there were no shares of preferred stock issued and outstanding. Common Stock The Company’s Amended and Restated Certificate of Incorporation filed on October 2, 2017, established two classes of authorized common stock, Class A common stock and Class B common stock. All shares of common stock outstanding immediately prior to the IPO, including shares of common stock issued upon the conversion of the convertible preferred stock, were converted into an equivalent number of shares of Class B common stock. Holders of Class A common stock are entitled to one vote for each share of Class A common stock held on all matters submitted to a vote of stockholders and holders of Class B common stock are entitled to ten votes for each share of Class B common stock held on all matters submitted to a vote of stockholders. Except with respect to voting, the rights of the holders of Class A and Class B common stock are identical. Common stock options held prior to the IPO can be exercised into Class B or Class A common stock at the option of the holder. Warrants to purchase common stock held prior to the IPO were exercised into Class B common stock. Shares of Class B common stock are voluntarily convertible into shares of Class A common stock at the option of the holder and are automatically converted into shares of the Company's Class A common stock upon sale or transfer. All stock options and restricted stock units granted after the IPO are exercised or vested into shares of Class A common stock. The Company has reserved the following shares of common stock for future issuances (in thousands): June 30, 2018 Common stock awards granted under equity incentive plans 21,485 Common stock awards available for grant under equity incentive plan 16,280 Total reserved shares of common stock 37,765 Equity Incentive Plans The 2008 Equity Incentive Plan (the “2008 Plan”) became effective in February 2008. The 2008 Plan allowed for the grant of incentive stock options to employees and for the grant of non-statutory stock options and restricted stock awards to employees, directors and consultants. Options granted under the 2008 Plan were granted at a price per share equivalent to the fair market value on the date of grant. Recipients of option grants under the 2008 Plan who possess more than 10% of the combined voting power of the Company (a “10% Shareholder”) are subject to certain limitations, and incentive stock options granted to such recipients were at a price no less than 110% of the fair market value at the date of grant. Options under the 2008 Plan generally vest over four years and have a term of 10 years. Commensurate with the Company’s IPO, the Company’s Board of Directors adopted the 2017 Equity Incentive Plan (the “2017 Plan”) which became effective in September 2017. No further equity awards can be granted under the 2008 Plan. The 2017 Plan provides for the grant of incentive stock options to employees and for the grant of non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, performance cash awards, and other forms of equity compensation to employees, directors and consultants. Options and restricted stock units under the 2017 Plan generally vest over four years and have a term of 10 years. Stock-Based Compensation The Company measures the cost awards granted under equity incentive plans based on the grant date fair value of the award. The Company uses the straight-line method for expense recognition. The Company recognizes forfeitures as they occur. The following table shows total stock-based compensation expense for the three and six months ended June 30, 2018 and 2017 (in thousands): Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Cost of platform revenue $ 19 $ 19 38 40 Cost of player revenue 67 38 111 74 Research and development 2,801 993 5,097 1,881 Sales and marketing 1,286 690 2,396 1,291 General and administrative 1,136 678 2,096 1,307 Total stock-based compensation $ 5,309 $ 2,418 $ 9,738 $ 4,593 Stock Options The summary of the Company’s stock option activity is as follows (in thousands, except price per share data): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Weighted Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Balance, December 31, 2017 - outstanding 26,336 $ 4.59 6.4 — Granted 186 39.05 — $ 16.27 Exercised (5,759 ) 3.05 — — Forfeited and expired (474 ) 6.29 — — Balance, June 30, 2018 - outstanding 20,289 $ 5.30 6.4 — $ 757,711 Options exercisable at June 30, 2018 11,472 $ 3.46 4.9 — $ 449,306 The intrinsic value for options exercised during the three months ended June 30, 2018 and 2017, was $140.8 million and $0.1 million, respectively, and six months ended June 30, 2018 and 2017 was $197.0 million and $0.2 million, respectively, representing the difference between the fair values of the Company’s common stock underlying these options at the dates of exercise and the exercise prices paid. As of June 30, 2018, the Company had $27.0 million of unrecognized stock compensation expense related to unvested stock options that is expected to be recognized over a weighted-average period of approximately 2.3 years. The fair value of options granted under the equity incentive plans is estimated on the grant date using the Black-Scholes option-valuation model. The assumptions used in the Black-Scholes model are as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Dividend rate — — — $ — Expected term (in years) 5.3 - 6.1 5.3 - 6.5 5.3 - 6.1 5.3 - 6.5 Risk-free interest rate 2.61 - 2.88% 1.90 - 2.07% 2.32 - 2.88% 1.90 - 2.25% Expected volatility 38 - 39% 40 - 43% 38 - 40% 40 - 44% Restricted Stock Units Pursuant to the 2017 Plan, the Company issued restricted stock units to employees. The summary of the Company’s restricted stock unit activity is as follows (in thousands, except price per share data): Number of Shares Weighted Average Grant Date Fair Value Per Share Balance, December 31, 2017 - outstanding 272 $ 43.55 Awarded 971 38.17 Released (7 ) 38.81 Forfeited (40 ) 41.19 Balance, June 30, 2018 - outstanding 1,196 $ 39.29 The unrecognized compensation cost related to restricted stock units as of June 30, 2018 was $43.9 million, which the Company expects to recognize over 3.7 years. The intrinsic value of restricted stock units vested during the three and six months ended June 30, 2018 was $0.3 million representing the fair value of the Company’s common stock underlying the restricted stock units at vesting dates. Warrants On June 30, 2018, the Company had no outstanding warrants. As of December 31, 2017, the Company had outstanding warrants to purchase 0.2 million shares of Class B common stock. Convertible preferred stock warrants issued and outstanding at the time of the Company’s IPO were automatically converted into Class B common stock warrants at the time of the Company’s IPO. Prior to the IPO the fair value of these convertible preferred stock warrants was recorded as a liability and remeasured at the end of each balance sheet date using the Black-Scholes option pricing model. The changes in the fair value during the year were recognized in the condensed consolidated statements of operations. The assumptions used to value the preferred stock warrants outstanding during the three and six months ended June 30, 2017 as follows: Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 Dividend rate $ — $ — Expected term (in years) 3.0 - 8.2 3.0 - 8.2 Risk-free interest rate 1.5% - 2.2% 1.5% - 2.2% Expected volatility 43.8 - 49.0% 43.8 - 49.0%

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	7. COMMITMENTS AND CONTINGENCIES Office Space The Company has operating lease agreements for office space to support research and development and sales and marketing activities located in the United States, the United Kingdom (U.K.), Denmark, and China, with various expiration dates up to November 2024. Rent expense for the three months ended June 30, 2018 and 2017 was $2.4 million and $1.6 million, respectively and for the six months ended June 30, 2018 and 2017 was $4.6 million and $3.1 million, respectively. Manufacturing Purchase Commitments The Company has contracts with vendors for the manufacture of inventory and related items in the normal course of business. As of June 30, 2018, the Company had $104.0 million purchase commitments for inventory and related items. The Company records a liability for noncancelable purchase commitments in excess of its future demand forecasts. The Company recorded $0.2 million and $0.6 million for these purchase commitments in “Accrued liabilities” as of June 30, 2018 and December 31, 2017, respectively. Content Licensing The Company licenses certain content for users to access through The Roku Channel. The Company records an obligation for licensing of content when it enters into an agreement to obtain future titles and the cost of the content is known. Certain agreements include the obligation to license rights for unknown future titles, the ultimate quantity and/or fees for which are not yet determinable as of the reporting date. As of June 30, 2018, the Company had $0.1 million of obligations recorded in “Accrued liabilities” for license purchase commitments. As of June 30, 2018, the Company has $0.2 million of obligations that are not reflected on the financial statements as they do not yet meet the criteria for asset recognition. Letters of Credit As of June 30, 2018 and December 31, 2017, the Company had irrevocable letters of credit outstanding in the amount of $3.1 million and $1.5 million, respectively, related to facilities leases. The letters of credit have various expiration dates through 2019. Contingencies The Company accrues for loss contingencies, including liabilities for intellectual property licensing, when it believes such losses are probable and reasonably estimable. During the three months ended June 30, 2018, the Company changed its estimate of certain liabilities previously recorded for intellectual property licensing and released $8.9 million as a result of its assessment that the likelihood of payment is now remote. The reversal of $8.9 million is recorded within cost of player revenue in the three and six months ended June 30, 2018, in the condensed consolidated statements of operations. The Company is currently involved in, and may in the future be involved in, legal proceedings, claims, and investigations in the ordinary course of business, including claims for infringing patents, copyrights or other intellectual property rights related to its platform and products, or the content distributed through its platform by the Company or third-party channel developers. Although the results of these proceedings, claims, and investigations cannot be predicted with certainty, the Company does not believe that the final outcome of any matters that it is currently involved in are reasonably likely to have a material adverse effect on its business, financial condition, or results of operations. Indemnification Many of the Company’s agreements include provisions for indemnifying content publishers, licensees, contract manufacturers and suppliers in the event that the Company’s products or services or the Company’s technologies incorporated therein, infringe on a third party’s intellectual property rights. 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 agreement. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any liabilities related to such obligations in the consolidated financial statements. Player Warranties Upon issuance of a standard player warranty, the Company recognizes a liability for the obligation it assumes under the warranty. As of June 30, 2018 and December 31, 2017, the accrued warranty reserve was immaterial.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income Taxes	8. INCOME TAXES The Company is subject to income tax in the U.S. as well as other tax jurisdictions in which it conducts business. Earnings from non-U.S. activities are subject to local country income tax. The Company does not provide for federal income taxes on the undistributed earnings of its foreign subsidiaries. The Company has not yet made a determination of indefinite reinvestment assertion in light of the Tax Act and considers the conclusion to be incomplete under guidance issued by SEC. The Company expects to reach a final determination within the measurement period in accordance with Staff Accounting Bulletin 118. The Company recorded an income tax benefit of $0.4 million and an immaterial tax expense for the three months ended June 30, 2018 and 2017, respectively, and a tax benefit of $0.2 million and tax expense of $0.1 million for the six months ended June 30, 2018 and 2017, respectively, related to foreign income taxes and state minimum taxes. Based on the available objective evidence during the six months ended June 30, 2018, the Company believes it is more likely than not that the tax benefits of the U.S. losses incurred may not be realized. Accordingly, the Company recorded a full valuation allowance against the tax benefits of the U.S. losses incurred. The primary difference between the effective tax rate and the statutory tax rate relates to the valuation allowance on the Company’s U.S. losses. Effective January 1, 2018, the Company adopted the new revenue standard which results in a change to deferred revenues. The change in deferred revenues impacts the deferred tax asset arising out of deferring revenues for GAAP compared to for tax. The deferred tax asset is equally offset by the full valuation allowance. The Tax Cuts and Job Act (TCJA) of 2017, enacted on December 22, 2017, contains significant changes to U.S. tax law, including lowering the U.S. corporate income tax rate to 21% and implementing a territorial tax system. TCJA creates a new requirement that global intangible low-taxed income (GILTI) earned by controlled foreign corporations (CFCs) must be included currently in the gross income of the CFCs’ U.S. shareholder. Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either (i) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (ii) factoring such amounts into a company’s measurement of its deferred taxes (the “deferred method”). The Company’s selection of an accounting policy with respect to the new GILTI tax rules will depend, in part, on analyzing the global income to determine whether the Company expects to have future U.S. inclusions in taxable income related to GILTI and, if so, what the impact is expected to be. The Company has included GILTI in the annual effective tax rate calculation, however, it has not made a policy decision regarding whether to record deferred taxes on GILTI.

Related-Party Transactions

Related-Party Transactions	6 Months Ended
	Jun. 30, 2018
Related Party Transactions [Abstract]
Related-Party Transactions	9. RELATED-PARTY TRANSACTIONS The Company has agreements with one of the Company’s strategic investors. The Company recorded revenues of $0.7 million and $0.1 million for the three months ended June 30, 2018 and 2017, respectively, and $1.7 million and $0.1 million for the six months ended June 30, 2018 and 2017, respectively, related to this investor. The Company had accounts receivable balance of $1.8 million and $0.5 million as of June 30, 2018 and December 31, 2017, respectively, related to sales to this investor. The Company incurred expenses of $0.2 million with this investor for the three and six months ended June 30, 2018. There were insignificant expenses for three and six months ended June 30, 2017. The Company had a payable of $0.2 million payable to this investor as of June 30, 2018. In May 2018, a member of the executive staff for one of the Company’s business partners joined the Company’s Board of Directors. The Company recorded revenues of 1.9 million and $3.3 million for three and six months ended June 30, 2018 with this business partner. The Company had an accounts receivable balance of $1.0 million with this business partner as of June 30, 2018. In addition, a member of the Company’s Board of Directors is a senior vice president at an operating unit of one of the strategic investors. The Company had no significant transactions with this investor for the three and six months ended June 30, 2018 and recorded expense of $0.4 million for the three and six months ended June 30, 2017, respectively. The Company had no balances outstanding with this investor as of June 30, 2018 and December 31, 2017, respectively.

Revenue

Revenue	6 Months Ended
	Jun. 30, 2018
Revenue From Contract With Customer [Abstract]
Revenue	10. REVENUE On January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), (the “new revenue standard”) using the modified retrospective method. The Company applied the new revenue standard to all contracts that were not completed as of January 1, 2018. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those prior periods. Application of practical expedients and exemptions The Company reflected the aggregate effect of all modifications that occurred prior to the date of adoption. The Company expensed sales commissions when incurred because the amortization period is less than one year. Sales commissions are included in “Sales and marketing” expenses in the condensed consolidated statements of operations. Impact on beginning balances The cumulative effect of the changes made to the consolidated January 1, 2018 balance sheet for the adoption of the new revenue standard were as follows (in thousands): As of Adjustment on As of Balance Sheet line items impacted December 31, 2017 adoption of new revenue standard January 1, 2018 Assets: Accounts receivables, net $ 120,553 $ 12,728 $ 133,281 Inventories 32,740 (108 ) 32,632 Prepaid expenses and other current assets 11,367 4,113 15,480 Deferred cost of revenue, current portion 3,007 (1,076 ) 1,931 Deferred cost of revenue, non-current portion 5,403 (3,885 ) 1,518 Other non-current assets 3,429 (222 ) 3,207 Liabilities: Accounts payable and accrued liabilities 128,757 1,250 130,007 Deferred revenue, current portion 34,501 8,449 42,950 Deferred revenue, non-current portion 48,511 (36,488 ) 12,023 Equity: Accumulated deficit (283,338 ) 38,339 (244,999 ) Revenue recognition The Company enters into contracts that may include various combinations of products and services, which are generally capable of being distinct and are accounted for as separate performance obligations. Revenue is recognized when control of promised products or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services. This is achieved by applying the following five-step approach: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, performance obligations are satisfied. Shipping charges billed to customers are included in revenue and the related shipping costs are included in cost of revenue. Revenue is recorded net of taxes collected or accrued. Sales taxes are recorded as current liabilities until remitted to the relevant government authority. The Company does not have any capitalized costs associated with contract acquisition because most direct contract acquisition costs relate to contracts that are recognized over a period of one year or less. Arrangements with multiple performance obligations The Company’s contracts may contain multiple distinct performance obligations. The computed transaction price is allocated to each performance obligation based on a relative stand-alone selling price (“SSP”). For performance obligations routinely sold separately, the SSP is determined by evaluating such stand-alone sales. For those performance obligations that are not routinely sold separately, the Company determines SSP based on a market assessment approach, or on an expected cost-plus margin approach. Nature of products and services Platform segment: The Company’s platform segment generates revenue from advertising sales, subscription and transaction revenue shares, the sale of branded channel buttons on remote controls and licensing arrangements with TV brands and service operators. The Company’s advertising revenue is mostly generated through video and display advertising delivered through advertising impressions. The Company enters into advertising arrangements directly with the advertiser or with their agency which purchases advertising on their behalf. Advertising is typically sold on a cost-per-thousand basis as evidenced by an Insertion Order (“IO”) that specifies the terms of the arrangement including the type of ad product, pricing, insertion dates, and the number of impressions over a stated period. Revenue is recognized as the number of impressions are delivered. IOs may include multiple performance obligations as they contain distinct advertising products or services. For such arrangements, the Company allocates revenue to each performance obligation based on their relative SSPs. In addition, advertising revenue is also recognized from distinct performance obligations included in distribution arrangements with content publishers. The Company earns revenue shares from content publishers based on user subscriptions activated or billed through the Company’s platform and from purchases or rental of publishers’ media. The Company’s revenue share is generally equal to a fixed percentage of the price charged by the content publisher or a contractual flat fee. The Company sells branded channel buttons on player and TV remote controls that provide one-touch access to a publishers’ content. The Company typically receives a fixed fee per button unit over a defined distribution period. The Company licenses its technology and proprietary operating system to service operators and TV brands. Arrangements with service operators generally include performance obligations comprised of a license to the technology and proprietary operating system, unspecified upgrades or enhancements, hosting of a branded channel store, and engineering and support services. The Company has determined that the license for the technology and the operating system is one performance obligation. Licensing fees from service operators are mostly generated from unit activations or flat fees and from ongoing maintenance. Arrangements with TV brands commonly include a license to the Company’s technology and proprietary operating system over a specified term including updates and upgrades. Licensing revenues from TV brands are generated on a flat fee basis or from per unit licensing fees. Arrangements may also include marketing development funds paid to TV brands on a flat fee or a per unit basis. Marketing development funds are included as a reduction to the estimated transaction price. Nature of performance obligations Revenue recognition Digital advertising Digital advertising is comprised of performance obligations that are recognized either at a point in time or over time depending on the nature of the advertising product. Content distribution services The revenue share from the content publishers included in the estimated transaction price is based on the expected value for which a significant reversal of revenue is not expected to occur. The estimate of the variable consideration is based on the assessment of historical, current, and forecasted performance of the publishers’ content applications. Revenue is recognized on a time elapsed basis, by day, over the contractual distribution term. Branded channel buttons The button fees included in the estimated transaction price are based on the expected value for which a significant reversal of revenue is not expected to occur. The estimate of the variable consideration is based on the Company’s assessment of historical, current, and forecasted player and Roku TV volumes. Revenue is recognized on a time elapsed basis, by day, over the distribution term. License of technology and operating system The revenue for licensing of technology and operating system is recognized at a point in time, when the control has transferred to the customer, which usually occurs when the Company makes the IP available to the customer. Unspecified upgrades to the IP The revenue allocated to unspecified upgrades is recognized on a time elapsed basis, by day, over the service period. Hosting services Hosting fees are recognized on a time elapsed basis, by day, over the service period. Professional services Professional services revenue is recognized as services are provided or accepted. Player segment: The Company sells the majority of its players through retail distribution channels, including brick and mortar and online retailers, and through the Company’s website. The Company’s player revenue includes allowances for returns and sales incentives in the estimated transaction price. These estimates are based on historical experience and anticipated performance. The Company’s player revenue include two performance obligations: • hardware, which includes embedded software, and • unspecified upgrades or enhancements on a when-and-if available basis. The Company has determined that its hardware and embedded software be considered as one performance obligation because the customer cannot benefit from the hardware or the embedded software either on its own or together with other resources that are readily available to the customer. Nature of performance obligations Revenue recognition Players Revenue recognition occurs at a point in time when control has transferred to the customer, which is based on the contractual terms. Unspecified upgrades to the software embedded in the hardware The Company initially records the allocated value of the unspecified upgrades as deferred revenue and recognizes it into player revenue ratably on a time elapsed basis, by day, over the estimated economic life of the associated players. Revenue disaggregation The Company’s disaggregated revenues are represented by the two reportable segments discussed in Note 12. The disaggregation is based on the evaluations that are regularly performed by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. The Company’s CODM is its Chief Executive Officer. Transaction price allocated to future performance obligations As of June 30, 2018, the Company had $64.4 million of estimated future revenue related to outstanding performance obligations. The Company expects to recognize approximately 62% of this future revenue over the next twelve months and the remainder thereafter through 2024. This estimated future revenue excludes contracts with original durations of one year or less, amounts in accordance with ASC 606-10-55-18 and variable consideration amounts attributable to royalties. Contract balances Contract balances include accounts receivable, contract assets and contract liabilities or deferred revenues. Accounts receivable are recorded at the amount invoiced, net of an allowance for doubtful accounts, with payment terms ranging from 30 to 90 days. Contract assets are created when the timing of revenue recognition differ from the timing of invoicing to a customer. Contract assets primarily relate to the Company’s conditional right to consideration for work completed but not billed. Contract assets are transferred to accounts receivable when the rights become unconditional. The Company’s contract assets are current in nature and are included in “Prepaid expenses and other current assets ”. Contract liabilities are recorded as deferred revenue and primarily relate to the advance consideration received from customers. Revenue is recognized when the performance obligation is completed and delivered or transfer of control occurs. The table below reflects the contract balances of the Company (in thousands): As of As of adoption June 30, 2018 January 1, 2018 Accounts receivable, net $ 123,612 $ 133,281 Contract assets, current portion 4,751 4,113 Deferred revenue, current portion 39,151 42,950 Deferred revenue, non-current portion 12,435 12,023 Revenue recognized during the three and six months ended June 30, 2018, from amounts included in deferred revenue at the beginning of each period was approximately $8.3 million and $29.5 million, respectively. Of this amount, approximately $12.4 million related to the delivery of intellectual property that occurred during the quarter ended March 31, 2018. This delivery also resulted in an increase to contract assets of approximately $3.8 million as of June 30, 2018. Impact of adoption for the three and six months ended June 30, 2018 The impact of adoption of the new revenue standard on January 1, 2018, on the condensed consolidated balance sheet and statements of operations is reflected in the table below (in thousands): As of June 30, 2018 Impact on balance sheet line items As Reported Balances without adoption of the new revenue standard Impact of adoption Higher / (Lower) Assets: Accounts receivable, net $ 123,612 $ 110,171 $ 13,441 Inventories 39,431 39,431 — Prepaid expenses and other current assets 15,131 10,574 4,557 Deferred cost of revenue, current portion 1,439 4,107 (2,668 ) Deferred cost of revenue, non-current portion — 5,496 (5,496 ) Liabilities: Accounts payable and accrued liabilities 111,026 109,026 2,000 Deferred revenue, current portion 39,151 34,307 4,844 Deferred revenue, non-current portion 12,435 49,198 (36,763 ) Equity: Accumulated Deficit (251,147 ) (290,900 ) 39,753 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Impact on statements of operations line items As Reported Balances without adoption of the new revenue standard Impact of adoption Higher / (Lower) As Reported Balances without adoption of the new revenue standard Impact of adoption Higher / (Lower) Net Revenue: Platform $ 90,341 $ 86,426 $ 3,915 $ 165,418 $ 158,289 $ 7,129 Player 66,469 67,285 (816 ) 127,968 126,735 1,233 Total net revenue 156,810 153,711 3,099 293,386 285,024 8,362 Cost of Revenue: Platform 27,328 24,436 2,892 48,994 42,912 6,082 Player 51,730 52,353 (623 ) 103,528 102,662 866 Total cost of revenue 79,058 76,789 2,269 152,522 145,574 6,948 Gross Profit: Platform 63,013 61,990 1,023 116,424 115,377 1,047 Player 14,739 14,932 (193 ) 24,440 24,073 367 Total gross profit 77,752 76,922 830 140,864 139,450 1,414 Operating Expenses: Research and development 40,196 40,196 — 74,322 74,322 — Sales and marketing 22,259 22,259 — 42,577 42,577 — General and administrative 15,429 15,429 — 30,999 30,999 — Total operating expenses 77,884 77,884 — 147,898 147,898 — Loss from Operations (132 ) (962 ) 830 (7,034 ) (8,448 ) 1,414 Net income (loss) $ 526 $ (304 ) $ 830 $ (6,108 ) $ (7,522 ) $ 1,414

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Net Loss Per Share	11. NET LOSS PER SHARE Basic and diluted net income (loss) per share of common stock allocable to common stockholders is calculated by dividing the net income (loss) allocable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, less shares subject to repurchase, and excludes any dilutive effects of employee stock-based awards and warrants. During the periods, when the Company has reported a net loss, diluted net loss per common share is the same as the basic net loss per share for those periods. The Company calculates its basic and diluted net income (loss) per share allocable to common stockholders in conformity with the two-class method required for companies with participating securities. In computing diluted net income (loss) allocable to common stockholders, undistributed earnings are re-allocated to reflect the potential impact of dilutive securities. The Company’s basic net income (loss) per share allocable to common stockholders is calculated by dividing the net income (loss) allocable to common stockholders by the weighted-average number of shares of common stock outstanding for the period. For purposes of the calculation of diluted net income (loss) per share allocable to common stockholders, unvested shares of common stock issued upon the early exercise of stock options, options to purchase common stock, common stock warrants and securities like convertible preferred stock and convertible preferred stock warrants that were issued and outstanding before the Company’s IPO, are considered common stock equivalents but have been excluded from the calculation of diluted net loss per share allocable to common stockholders as their effect is antidilutive. The Company considers all series of its convertible preferred stock that were outstanding before the Company’s IPO, to be participating securities as they were entitled to receive noncumulative dividends prior and in preference to any dividends on shares of common stock. Due to the Company’s net losses, there is no impact on the loss per share calculation in applying the two-class method since the participating securities have no legal obligation to share in any losses. The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Numerator: Net income (loss) allocable to common stockholders $ 526 $ (15,513 ) $ (6,108 ) $ (24,215 ) Denominator: Weighted-average shares used in computing net income (loss) per share, basic 102,652 4,882 101,079 4,866 Net income (loss) per share, basic $ 0.01 $ (3.18 ) $ (0.06 ) $ (4.98 ) Weighted-average shares used in computing net income (loss) per share, diluted 121,698 4,882 101,079 4,866 Net income (loss) per share, diluted $ 0.00 $ (3.18 ) $ (0.06 ) $ (4.98 ) The potential common shares that would be excluded from the calculation of diluted net income (loss) per share because of their anti-dilutive effect are as follows (in thousands): Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Equity awards to purchase common stock 1,062 24,560 21,485 24,560 Unvested shares of common stock issued upon early exercise of stock options and business acquisition — 20 105 20 Warrants to purchase common stock — 375 — 375 Warrants to purchase convertible preferred stock — 2,226 — 2,226 Convertible preferred stock — 80,844 — 80,844 Total 1,062 108,025 21,590 108,025

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segment Information	12. SEGMENT INFORMATION The Company is organized into two reportable segments as follows: Platform —Consists primarily of fees received from advertisers and content publishers, and from licensing the Company’s technology and proprietary operating system with TV brands and service operators. Platform revenue primarily includes fees earned from the sale of digital advertising and revenue share from new or recurring user subscriptions activated through the Company’s platform and revenue share from user purchases of content publishers’ media through its platform. The Company also earns revenue from the sale of branded channel buttons on remote controls. Player —Consists primarily of net sales of streaming media players and accessories through retailers and distributors, as well as directly to customers through the Company’s website. Customers accounting for 10% or more of the segment revenues were as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Platform segment revenue Customer E * 11 % * 13 % Customer G * * 10 % * Player segment revenue Customer A 16 % 16 % 14 % 13 % Customer B 10 % * 14 % 12 % Customer C 39 % 33 % 38 % 32 % Customer E * * * 10 % * Less than 10% of segment revenues Substantially all of the Company’s assets were held in the United States and were attributable to the operations in the United States as of June 30, 2018 and December 31, 2017. Revenue in international markets was 10% for the six months ended June 30, 2018 and was less than 10% for the three months ended June 30, 2018 as well as for the three and six months ended June 30, 2017.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	13. SUBSEQUENT EVENTS On July 31, 2018, the Company entered into lease agreements to acquire approximately 472,319 square feet of office space on Coleman Avenue in San Jose to house its new headquarters. The lease includes three floors of a first building and three other buildings. It has an approximate term of 140 months from the date we commence occupancy in the first building. Copies of the lease agreements are filed as exhibits to this Quarterly Report on Form 10-Q. On July 18, 2018, the Company entered into a third amendment to the restated loan and security agreement with Silicon Valley Bank. The amendment increased the limit to which the Company can utilize its line of credit to support the issuance of letters of credit from $5.0 million to $30.0 million. The increase to the limit will be used to facilitate additional letters of credit required pursuant to the lease for the Company’s new headquarters.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 1, 2018. The condensed consolidated balance sheet as of December 31, 2017 has been derived from the audited consolidated financial statements as of that date but does not include all of the information and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The interim financial information is unaudited, but reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the operating results to be expected for the full year or any future periods. There have been no material changes in the Company’s significant accounting policies, other than the adoption of Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606), Income taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740)
Use of Judgments and Estimates	Use of Judgements and Estimates The preparation of the Company’s condensed consolidated financial statements in accordance with U.S. GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Adoption of ASU 2014-09, Revenue from Contracts with Customers (Topic 606)
Principles of Consolidation	Principles of Consolidation The condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and includes the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
Comprehensive Loss	Comprehensive Loss Comprehensive loss is equal to the net loss for all periods presented. Therefore, the consolidated statements of comprehensive loss have been omitted from the condensed consolidated financial statements.
Concentrations	Concentrations Customers accounting for 10% or more of the Company’s net revenue were as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Customer B * * * 10 % Customer C 17 % 18 % 17 % 20 % Customer E * * * 11 % Customers accounting for 10% or more of the Company’s accounts receivable were as follows: As of June 30, 2018 December 31, 2017 Customer C 10 % * % Customer D 12 16 * Less than 10%
Content Licensing Fees	Content Licensing Fees The Company licenses content for viewing on The Roku Channel. The licensing arrangements can be for a fixed fee and/or advertising revenue share with specific windows of content availability. The Company capitalizes the content fees and records a corresponding liability at the gross amount of the liability when the license period begins, the cost of the content is known and the content is accepted and available for streaming. The Company amortizes licensed content assets into “Cost of Revenue, Platform” over the contractual window of availability . As of June 30, 2018, $0.1 million of content related expenses met these requirements and is included in “Prepaid expenses and other current assets ” .
Adoption of New Accounting Standards and Recently Issued Accounting Pronouncements Not Yet Adopted	Adoption of New Accounting Standards On January 1, 2018, the Company adopted guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) On January 1, 2018, the Company adopted guidance in ASU 2016-16, Income taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740) Recently Issued Accounting Pronouncements Not Yet Adopted In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842)
Fair Value Measurements	Fair Value Measurements Level 1 —Quoted prices in active markets for identical assets or liabilities. Financial assets and liabilities measured using Level 1 inputs include cash equivalents, accounts receivable, prepaid expenses, accounts payable and accrued liabilities. The Company considers all highly liquid investments purchased with an original or remaining maturity of less than three months at the date of purchase to be cash equivalents. The Company measured money market funds of $50.0 million as cash equivalents as of June 30, 2018 using Level 1 inputs. The Company did not have any cash equivalents as of December 31, 2017. Level 2 —Observable inputs other than quoted prices included within Level 1, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs other than quoted prices that are observable or are derived principally from, or corroborated by, observable market data by correlation or other means. The Company does not use Level 2 inputs to measure any assets or liabilities. Level 3 —Unobservable inputs that are supported by little or no market activity, are significant to the fair value of the assets or liabilities, and reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The Company does not use Level 3 inputs to measure any assets or liabilities as of June 30, 2018 and December 31, 2017. During the six months ended June 30, 2017, Level 3 instruments consisted of the Company’s preferred stock warrant liability in which the fair value was measured upon issuance and at each reporting date. Pursuant to the IPO, all preferred stock warrants were converted into Class B common stock warrants, which did not require further re-measurements as they were deemed permanent equity. For the three and six month periods ended June 30, 2017, the inputs that were used to determine the estimated fair value of the convertible preferred stock warrant liability as of the June 30, 2017 valuation date included remaining contractual term of the warrants, the risk-free interest rate, the volatility of comparable public companies over the remaining term, and the fair value of underlying shares. The significant unobservable inputs used in the fair value measurement of the convertible preferred stock warrant liability were the fair value of the underlying stock at the valuation date for periods prior to the IPO and the estimated term of the warrants. Generally, increases (decreases) in the fair value of the underlying stock and estimated term resulted in a directionally similar impact to the fair value measurement. The following table represents the activity of the fair value of Level 3 instruments (in thousands): Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 Convertible preferred stock warrant liability — beginning balance $ 10,725 $ 9,990 Fair value of new warrants issued 2,032 2,032 Change in fair value of preferred stock warrant liability 1,916 2,651 Convertible preferred stock warrant liability — ending balance $ 14,673 $ 14,673
Revenue Recognition	On January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), (the “new revenue standard”) using the modified retrospective method. The Company applied the new revenue standard to all contracts that were not completed as of January 1, 2018. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those prior periods. The Company enters into contracts that may include various combinations of products and services, which are generally capable of being distinct and are accounted for as separate performance obligations. Revenue is recognized when control of promised products or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products or services. This is achieved by applying the following five-step approach: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, performance obligations are satisfied.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2018
Schedule of Fair Value of Level 3 Instruments	The following table represents the activity of the fair value of Level 3 instruments (in thousands): Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 Convertible preferred stock warrant liability — beginning balance $ 10,725 $ 9,990 Fair value of new warrants issued 2,032 2,032 Change in fair value of preferred stock warrant liability 1,916 2,651 Convertible preferred stock warrant liability — ending balance $ 14,673 $ 14,673
Net Revenue
Schedules of Customer Concentration by Risk Factor	Customers accounting for 10% or more of the Company’s net revenue were as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Customer B * * * 10 % Customer C 17 % 18 % 17 % 20 % Customer E * * * 11 %
Accounts Receivable
Schedules of Customer Concentration by Risk Factor	Customers accounting for 10% or more of the Company’s accounts receivable were as follows: As of June 30, 2018 December 31, 2017 Customer C 10 % * % Customer D 12 16 * Less than 10%

Balance Sheet Components (Table

Balance Sheet Components (Tables)	6 Months Ended
	Jun. 30, 2018
Balance Sheet Related Disclosures [Abstract]
Schedule of Accounts Receivable, Net of Allowances	Accounts receivable, net of allowances, consisted of the following (in thousands): June 30, 2018 December 31, 2017 Gross accounts receivable $ 134,564 $ 138,292 Allowance for sales returns (4,504 ) (6,907 ) Allowance for sales incentives (6,153 ) (10,442 ) Other allowances (295 ) (390 ) Total allowances (10,952 ) (17,739 ) Total Accounts Receivable—net of allowances $ 123,612 $ 120,553
Schedule of Allowance for Sales Returns	Allowance for sales returns consisted of the following activities (in thousands): June 30, 2018 December 31, 2017 Beginning balance $ (6,907 ) $ (6,916 ) Charged to revenue (6,755 ) (19,089 ) Utilization of sales return reserve 9,158 19,098 Ending balance $ (4,504 ) $ (6,907 )
Schedule of Allowance for Sales Incentives	Allowance for sales incentives consisted of the following activities (in thousands): June 30, 2018 December 31, 2017 Beginning balance $ (10,442 ) $ (8,503 ) Charged to revenue (15,448 ) (44,264 ) Utilization of sales incentive reserve 19,737 42,325 Ending balance $ (6,153 ) $ (10,442 )
Schedule of Property and Equipment, Net	Property and equipment, net consisted of the following (in thousands): June 30, 2018 December 31, 2017 Computers and equipment $ 13,508 $ 11,631 Leasehold improvements 13,270 8,437 Website and internal-use software 6,925 5,461 Office equipment and furniture 2,597 1,987 Total property and equipment 36,300 27,516 Accumulated depreciation and amortization (16,088 ) (12,780 ) Property and Equipment, net $ 20,212 $ 14,736
Schedule of Accounts Payable and Accrued Liabilities	Accounts payable and accrued liabilities consisted of the following (in thousands): June 30, 2018 December 31, 2017 Accounts payable $ 32,931 $ 56,413 Accrued royalty expense 5,638 17,165 Accrued inventory 11,206 2,382 Accrued payroll and related expenses 10,181 8,699 Accrued cost of revenue 13,783 12,210 Accrued payments to content publishers 25,209 24,037 Taxes and related liabilities 912 1,463 Customer prepayments 5,255 545 Other accrued expenses 5,911 5,843 Total Accounts Payable and Accrued Liabilities $ 111,026 $ 128,757
Schedule of Deferred Revenue	Deferred revenue consisted of the following (in thousands): June 30, 2018 December 31, 2017 Platform, current $ 24,433 $ 19,022 Player, current 14,718 15,479 Total deferred revenue, current 39,151 34,501 Platform, non-current 7,271 42,674 Player, non-current 5,164 5,837 Total deferred revenue, non-current 12,435 48,511 Total Deferred Revenue (See Note 10) $ 51,586 $ 83,012

Stockholders' Deficit (Tables)

Stockholders' Deficit (Tables)	6 Months Ended
	Jun. 30, 2018
Schedule of Reserved Shares of Common Stock for Future Issuances	The Company has reserved the following shares of common stock for future issuances (in thousands): June 30, 2018 Common stock awards granted under equity incentive plans 21,485 Common stock awards available for grant under equity incentive plan 16,280 Total reserved shares of common stock 37,765
Summary of Recognized Employee Stock-Based Compensation Expense	The following table shows total stock-based compensation expense for the three and six months ended June 30, 2018 and 2017 (in thousands): Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Cost of platform revenue $ 19 $ 19 38 40 Cost of player revenue 67 38 111 74 Research and development 2,801 993 5,097 1,881 Sales and marketing 1,286 690 2,396 1,291 General and administrative 1,136 678 2,096 1,307 Total stock-based compensation $ 5,309 $ 2,418 $ 9,738 $ 4,593
Schedule of Activity Under Equity Incentive Plan	The summary of the Company’s stock option activity is as follows (in thousands, except price per share data): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Weighted Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Balance, December 31, 2017 - outstanding 26,336 $ 4.59 6.4 — Granted 186 39.05 — $ 16.27 Exercised (5,759 ) 3.05 — — Forfeited and expired (474 ) 6.29 — — Balance, June 30, 2018 - outstanding 20,289 $ 5.30 6.4 — $ 757,711 Options exercisable at June 30, 2018 11,472 $ 3.46 4.9 — $ 449,306
Summary of Assumptions Used to Value Stock-Based Awards Granted	The fair value of options granted under the equity incentive plans is estimated on the grant date using the Black-Scholes option-valuation model. The assumptions used in the Black-Scholes model are as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Dividend rate — — — $ — Expected term (in years) 5.3 - 6.1 5.3 - 6.5 5.3 - 6.1 5.3 - 6.5 Risk-free interest rate 2.61 - 2.88% 1.90 - 2.07% 2.32 - 2.88% 1.90 - 2.25% Expected volatility 38 - 39% 40 - 43% 38 - 40% 40 - 44%
Summary of Restricted Stock Unit Activity	Pursuant to the 2017 Plan, the Company issued restricted stock units to employees. The summary of the Company’s restricted stock unit activity is as follows (in thousands, except price per share data): Number of Shares Weighted Average Grant Date Fair Value Per Share Balance, December 31, 2017 - outstanding 272 $ 43.55 Awarded 971 38.17 Released (7 ) 38.81 Forfeited (40 ) 41.19 Balance, June 30, 2018 - outstanding 1,196 $ 39.29
Preferred Stock Warrants
Summary of Assumptions Used to Value Stock-Based Awards Granted	The assumptions used to value the preferred stock warrants outstanding during the three and six months ended June 30, 2017 as follows: Three Months Ended Six Months Ended June 30, 2017 June 30, 2017 Dividend rate $ — $ — Expected term (in years) 3.0 - 8.2 3.0 - 8.2 Risk-free interest rate 1.5% - 2.2% 1.5% - 2.2% Expected volatility 43.8 - 49.0% 43.8 - 49.0%

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jun. 30, 2018
Schedule of Contract Balances	The table below reflects the contract balances of the Company (in thousands): As of As of adoption June 30, 2018 January 1, 2018 Accounts receivable, net $ 123,612 $ 133,281 Contract assets, current portion 4,751 4,113 Deferred revenue, current portion 39,151 42,950 Deferred revenue, non-current portion 12,435 12,023
Accounting Standards Update 2014-09
Schedule of Cumulative Effect of Changes Made to Consolidated Balance Sheet for Adoption of New Revenue Standard	The cumulative effect of the changes made to the consolidated January 1, 2018 balance sheet for the adoption of the new revenue standard were as follows (in thousands): As of Adjustment on As of Balance Sheet line items impacted December 31, 2017 adoption of new revenue standard January 1, 2018 Assets: Accounts receivables, net $ 120,553 $ 12,728 $ 133,281 Inventories 32,740 (108 ) 32,632 Prepaid expenses and other current assets 11,367 4,113 15,480 Deferred cost of revenue, current portion 3,007 (1,076 ) 1,931 Deferred cost of revenue, non-current portion 5,403 (3,885 ) 1,518 Other non-current assets 3,429 (222 ) 3,207 Liabilities: Accounts payable and accrued liabilities 128,757 1,250 130,007 Deferred revenue, current portion 34,501 8,449 42,950 Deferred revenue, non-current portion 48,511 (36,488 ) 12,023 Equity: Accumulated deficit (283,338 ) 38,339 (244,999 )
Summary of Impact of Adoption of New Revenue Standards On Our Statements	The impact of adoption of the new revenue standard on January 1, 2018, on the condensed consolidated balance sheet and statements of operations is reflected in the table below (in thousands): As of June 30, 2018 Impact on balance sheet line items As Reported Balances without adoption of the new revenue standard Impact of adoption Higher / (Lower) Assets: Accounts receivable, net $ 123,612 $ 110,171 $ 13,441 Inventories 39,431 39,431 — Prepaid expenses and other current assets 15,131 10,574 4,557 Deferred cost of revenue, current portion 1,439 4,107 (2,668 ) Deferred cost of revenue, non-current portion — 5,496 (5,496 ) Liabilities: Accounts payable and accrued liabilities 111,026 109,026 2,000 Deferred revenue, current portion 39,151 34,307 4,844 Deferred revenue, non-current portion 12,435 49,198 (36,763 ) Equity: Accumulated Deficit (251,147 ) (290,900 ) 39,753 Three Months Ended June 30, 2018 Six Months Ended June 30, 2018 Impact on statements of operations line items As Reported Balances without adoption of the new revenue standard Impact of adoption Higher / (Lower) As Reported Balances without adoption of the new revenue standard Impact of adoption Higher / (Lower) Net Revenue: Platform $ 90,341 $ 86,426 $ 3,915 $ 165,418 $ 158,289 $ 7,129 Player 66,469 67,285 (816 ) 127,968 126,735 1,233 Total net revenue 156,810 153,711 3,099 293,386 285,024 8,362 Cost of Revenue: Platform 27,328 24,436 2,892 48,994 42,912 6,082 Player 51,730 52,353 (623 ) 103,528 102,662 866 Total cost of revenue 79,058 76,789 2,269 152,522 145,574 6,948 Gross Profit: Platform 63,013 61,990 1,023 116,424 115,377 1,047 Player 14,739 14,932 (193 ) 24,440 24,073 367 Total gross profit 77,752 76,922 830 140,864 139,450 1,414 Operating Expenses: Research and development 40,196 40,196 — 74,322 74,322 — Sales and marketing 22,259 22,259 — 42,577 42,577 — General and administrative 15,429 15,429 — 30,999 30,999 — Total operating expenses 77,884 77,884 — 147,898 147,898 — Loss from Operations (132 ) (962 ) 830 (7,034 ) (8,448 ) 1,414 Net income (loss) $ 526 $ (304 ) $ 830 $ (6,108 ) $ (7,522 ) $ 1,414

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Summary of Calculation of Basic and Diluted Net Income (Loss) Per Share	The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Numerator: Net income (loss) allocable to common stockholders $ 526 $ (15,513 ) $ (6,108 ) $ (24,215 ) Denominator: Weighted-average shares used in computing net income (loss) per share, basic 102,652 4,882 101,079 4,866 Net income (loss) per share, basic $ 0.01 $ (3.18 ) $ (0.06 ) $ (4.98 ) Weighted-average shares used in computing net income (loss) per share, diluted 121,698 4,882 101,079 4,866 Net income (loss) per share, diluted $ 0.00 $ (3.18 ) $ (0.06 ) $ (4.98 )
Schedule of Antidilutive Securities Excluded from Calculation of Diluted Net Income (Loss) Per Share	The potential common shares that would be excluded from the calculation of diluted net income (loss) per share because of their anti-dilutive effect are as follows (in thousands): Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Equity awards to purchase common stock 1,062 24,560 21,485 24,560 Unvested shares of common stock issued upon early exercise of stock options and business acquisition — 20 105 20 Warrants to purchase common stock — 375 — 375 Warrants to purchase convertible preferred stock — 2,226 — 2,226 Convertible preferred stock — 80,844 — 80,844 Total 1,062 108,025 21,590 108,025

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Schedule of Customer Accounting for 10% or More of Segment Revenues	Customers accounting for 10% or more of the segment revenues were as follows: Three Months Ended Six Months Ended June 30, 2018 June 30, 2017 June 30, 2018 June 30, 2017 Platform segment revenue Customer E * 11 % * 13 % Customer G * * 10 % * Player segment revenue Customer A 16 % 16 % 14 % 13 % Customer B 10 % * 14 % 12 % Customer C 39 % 33 % 38 % 32 % Customer E * * * 10 % * Less than 10% of segment revenues

The Company - Additional Inform

The Company - Additional Information (Details) $ / shares in Units, shares in Millions, $ in Millions	Oct. 02, 2017USD ($)Vote$ / sharesshares	Jun. 30, 2018segment
Entity Wide Revenue Major Customer [Line Items]
Conversion date		Feb. 1, 2008
Number of reportable segments operates | segment		2
Class A Common Stock
Entity Wide Revenue Major Customer [Line Items]
Number of votes per share | Vote	1
Class B Common Stock
Entity Wide Revenue Major Customer [Line Items]
Number of votes per share | Vote	10
Initial Public Offering | Class B Common Stock Warrants
Entity Wide Revenue Major Customer [Line Items]
Warrants conversion ratio	100.00%
Initial Public Offering | Class A Common Stock
Entity Wide Revenue Major Customer [Line Items]
Initial public offering completed date	Oct. 2, 2017
Number of shares sold	10.4
Share sold price per share | $ / shares	$ 14
Net proceeds from shares sold | $	$ 134.8
Underwriting discounts and commissions | $	$ 10.1
Initial Public Offering | Class B Common Stock
Entity Wide Revenue Major Customer [Line Items]
Convertible preferred stock, Shares converted	80.8
Stock conversion ratio	100.00%
Over-Allotment Option | Class A Common Stock
Entity Wide Revenue Major Customer [Line Items]
Number of shares sold	1.4

Summary of Significant Accoun28

Summary of Significant Accounting Policies - Schedules of Customer Concentration by Risk Factor (Details) - Customer Concentration Risk	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Net Revenue | Customer B
Concentration Risk [Line Items]
Concentration risk				10.00%
Net Revenue | Customer C
Concentration Risk [Line Items]
Concentration risk	17.00%	18.00%	17.00%	20.00%
Net Revenue | Customer E
Concentration Risk [Line Items]
Concentration risk				11.00%
Accounts Receivable | Customer C
Concentration Risk [Line Items]
Concentration risk			10.00%
Accounts Receivable | Customer D
Concentration Risk [Line Items]
Concentration risk			12.00%		16.00%

Summary of Significant Accoun29

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Money Market Fund | Level 1
Summary Of Significant Accounting Policies [Line Items]
Cash equivalents	$ 50,000,000	$ 0
Licenses | Prepaid Expenses and Other Current Assets
Summary Of Significant Accounting Policies [Line Items]
Content related expenses	$ 100,000

Summary of Significant Accoun30

Summary of Significant Accounting Policies - Schedule of Fair Value of Level 3 Instruments (Details) - Convertible Preferred Stock Warrant Liability - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Convertible preferred stock warrant liability — beginning balance	$ 10,725	$ 9,990
Fair value of new warrants issued	2,032	2,032
Change in fair value of preferred stock warrant liability	1,916	2,651
Convertible preferred stock warrant liability — ending balance	$ 14,673	$ 14,673

Business Combinations - Additio

Business Combinations - Additional Information (Details) $ in Thousands, shares in Millions	Sep. 06, 2017USD ($)Foundershares	Jun. 30, 2018USD ($)	Dec. 31, 2017USD ($)
Business Acquisition [Line Items]
Goodwill		$ 1,382	$ 1,382
Denmark
Business Acquisition [Line Items]
Date of acquisition	Sep. 6, 2017
Aggregate purchase price	$ 3,500
Aggregate purchase price, paid	$ 3,000
Aggregate purchase price, payable		$ 500
Number of founders who received shares | Founder	2
Repurchase period for shares issued under business acquisition	3 years
Goodwill	$ 1,400
Identifiable intangible assets acquired	$ 2,200
Identifiable intangible assets, expected useful life	4 years
Denmark | Class B Common Stock
Business Acquisition [Line Items]
Shares of common stock issued | shares	0.1

Balance Sheet Components - Sche

Balance Sheet Components - Schedule of Accounts Receivable, Net of allowances (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Valuation And Qualifying Accounts Disclosure [Line Items]
Gross accounts receivable	$ 134,564	$ 138,292
Allowance for accounts receivable	(10,952)	(17,739)
Total Accounts Receivable—net of allowances	123,612	120,553
Allowance for Sales Returns
Valuation And Qualifying Accounts Disclosure [Line Items]
Allowance for accounts receivable	(4,504)	(6,907)	$ (6,916)
Allowance for Sales Incentives
Valuation And Qualifying Accounts Disclosure [Line Items]
Allowance for accounts receivable	(6,153)	(10,442)	$ (8,503)
Other Allowances
Valuation And Qualifying Accounts Disclosure [Line Items]
Allowance for accounts receivable	$ (295)	$ (390)

Balance Sheet Components - Sc33

Balance Sheet Components - Schedule of Allowance for Sales Returns (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	$ (17,739)
Ending balance	(10,952)	$ (17,739)
Allowance for Sales Returns
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	(6,907)	(6,916)
Charged to revenue	(6,755)	(19,089)
Utilization of sales return/incentive reserve	9,158	19,098
Ending balance	$ (4,504)	$ (6,907)

Balance Sheet Components - Sc34

Balance Sheet Components - Schedule of Allowance for Sales Incentives (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	$ (17,739)
Ending balance	(10,952)	$ (17,739)
Allowance for Sales Incentives
Movement in Valuation Allowances and Reserves [Roll Forward]
Beginning balance	(10,442)	(8,503)
Charged to revenue	(15,448)	(44,264)
Utilization of sales return/incentive reserve	19,737	42,325
Ending balance	$ (6,153)	$ (10,442)

Balance Sheet Components - Sc35

Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Property Plant And Equipment [Line Items]
Total property and equipment	$ 36,300	$ 27,516
Accumulated depreciation and amortization	(16,088)	(12,780)
Property and Equipment, net	20,212	14,736
Computer and Equipment
Property Plant And Equipment [Line Items]
Total property and equipment	13,508	11,631
Leasehold Improvements
Property Plant And Equipment [Line Items]
Total property and equipment	13,270	8,437
Website and Internal-Use Software
Property Plant And Equipment [Line Items]
Total property and equipment	6,925	5,461
Office Equipment and Furniture
Property Plant And Equipment [Line Items]
Total property and equipment	$ 2,597	$ 1,987

Balance Sheet Components - Addi

Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Balance Sheet Related Disclosures [Abstract]
Depreciation and amortization	$ 1.8	$ 1.3	$ 3.3	$ 2.6

Balance Sheet Components - Sc37

Balance Sheet Components - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accrued Liabilities Current [Abstract]
Accounts payable	$ 32,931	$ 56,413
Accrued royalty expense	5,638	17,165
Accrued inventory	11,206	2,382
Accrued payroll and related expenses	10,181	8,699
Accrued cost of revenue	13,783	12,210
Accrued payments to content publishers	25,209	24,037
Taxes and related liabilities	912	1,463
Customer prepayments	5,255	545
Other accrued expenses	5,911	5,843
Total Accounts Payable and Accrued Liabilities	$ 111,026	$ 128,757

Balance Sheet Components - Sc38

Balance Sheet Components - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Deferred Revenue Arrangement [Line Items]
Deferred revenue, current portion	$ 39,151	$ 42,950	$ 34,501
Deferred revenue, non-current	12,435	$ 12,023	48,511
Total Deferred Revenue (See Note 10)	51,586		83,012
Platform
Deferred Revenue Arrangement [Line Items]
Deferred revenue, current portion	24,433		19,022
Deferred revenue, non-current	7,271		42,674
Player
Deferred Revenue Arrangement [Line Items]
Deferred revenue, current portion	14,718		15,479
Deferred revenue, non-current	$ 5,164		$ 5,837

Debt - Additional Information (

Debt - Additional Information (Details) - USD ($)	1 Months Ended
	Jun. 30, 2017	Jul. 18, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Oct. 31, 2017
Debt Instrument [Line Items]
Outstanding debt			$ 0		$ 0
Letters of credit outstanding			$ 3,100,000		1,500,000
Warrants outstanding			0
Second Amendment To Restated 2014 Loan and Security Agreement
Debt Instrument [Line Items]
Minimum current ratio required under financial covenant	1.25%
Line of credit, termination date	Jun. 30, 2019
Letters of credit outstanding			$ 3,100,000		$ 1,500,000
Interest rate on line of credit			4.83%		4.31%
Second Amendment To Restated 2014 Loan and Security Agreement | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.75%
Second Amendment To Restated 2014 Loan and Security Agreement | Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate	1.00%
2017 Subordinated Loan Agreement | Term Loan
Debt Instrument [Line Items]
Subordinated loan agreement maximum borrowing capacity	$ 40,000,000
Subordinated loan agreement minimum borrowing capacity	$ 25,000,000
Duration of remaining amount available	24 months
Facility fee, percentage	1.00%
LIBOR Floor rate	1.00%
Payment in kind interest fees, percent	2.50%
Warrants outstanding			0
Warrants cancelled						100,000
Warrants exercised				200,000	100,000
2017 Subordinated Loan Agreement | Term Loan | Series H Convertible Preferred Stock Warrants
Debt Instrument [Line Items]
Warrants outstanding	400,000
Warrants, exercise price	$ 9.17340
Warrants, exercisable period	10 years
2017 Subordinated Loan Agreement | Term Loan | Minimum
Debt Instrument [Line Items]
Remaining amount to be drawn as installment	$ 5,000,000
Line of credit facility final payment fees, percent	1.00%
2017 Subordinated Loan Agreement | Term Loan | Maximum
Debt Instrument [Line Items]
Line of credit facility final payment fees, percent	4.00%
2017 Subordinated Loan Agreement | LIBOR | Term Loan
Debt Instrument [Line Items]
Basis spread on variable rate	6.50%
2017 Subordinated Loan Agreement | Prime Rate | Term Loan
Debt Instrument [Line Items]
Basis spread on variable rate	3.50%
Silicon Valley Bank | Restated 2014 LSA
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 5,000,000
Silicon Valley Bank | Third Amendment To Restated 2014 Loan and Security Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity			5,000,000
Silicon Valley Bank | Third Amendment To Restated 2014 Loan and Security Agreement | Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 30,000,000
Revolving Credit Facility | Second Amendment To Restated 2014 Loan and Security Agreement
Debt Instrument [Line Items]
Line of credit outstanding			0		$ 0
Revolving Credit Facility | Silicon Valley Bank | Restated 2014 LSA
Debt Instrument [Line Items]
Maximum borrowing capacity			$ 30,000,000
Revolving Credit Facility | Silicon Valley Bank | Third Amendment To Restated 2014 Loan and Security Agreement | Subsequent Event
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 30,000,000

Stockholder's Deficit - Preferr

Stockholder's Deficit - Preferred Stock - Additional Information (Details) - shares	Oct. 02, 2017	Jun. 30, 2018	Dec. 31, 2017
Class Of Stock [Line Items]
Preferred stock, shares authorized	10,000,000
Preferred stock, shares issued		0	0
Preferred stock, shares outstanding		0	0
Initial Public Offering | Class B Common Stock
Class Of Stock [Line Items]
Convertible preferred stock, Shares converted	80,800,000
Stock conversion ratio	100.00%

Stockholders' Deficit - Common

Stockholders' Deficit - Common Stock - Additional Information (Details)	6 Months Ended
	Jun. 30, 2018Class
Class Of Stock [Line Items]
Number of classes	2
Class A Common Stock
Class Of Stock [Line Items]
Common stock, voting right	one vote for each share
Class B Common Stock
Class Of Stock [Line Items]
Common stock, voting right	ten votes for each share

Stockholder's Deficit - Schedul

Stockholder's Deficit - Schedule of Reserved Shares of Common Stock for Future Issuances (Details) shares in Thousands	Jun. 30, 2018shares
Class Of Stock [Line Items]
Total reserved shares of common stock	37,765
Equity Incentive Plan
Class Of Stock [Line Items]
Common stock awards granted under equity incentive plans	21,485
Common stock awards available for grant under equity incentive plan	16,280

Stockholders' Deficit - Equity

Stockholders' Deficit - Equity Incentive Plans - Additional Information (Details)	6 Months Ended
	Jun. 30, 2018
2008 Plan
Class Of Stock [Line Items]
Percentage Of Voting Rights	10.00%
Stock option vesting period	4 years
Stock options expiration term	10 years
2008 Plan | Minimum | 10% Shareholder
Class Of Stock [Line Items]
Stock option fair market value at the date of grant, percent	110.00%
2017 Plan
Class Of Stock [Line Items]
Stock option vesting period	4 years
Stock options expiration term	10 years

Stockholders' Deficit - Schedul

Stockholders' Deficit - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 5,309	$ 2,418	$ 9,738	$ 4,593
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	2,801	993	5,097	1,881
Sales and Marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	1,286	690	2,396	1,291
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	1,136	678	2,096	1,307
Player | Cost of Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	67	38	111	74
Platform | Cost of Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 19	$ 19	$ 38	$ 40

Stockholder's Deficit - Summary

Stockholder's Deficit - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Balance, Number of shares	26,336
Granted, Number of shares	186
Exercised, Number of shares	(5,759)
Forfeited and expired, Number of shares	(474)
Balance, Number of shares	20,289	26,336
Options exercisable at June 30, 2018, Number of shares	11,472
Balance, Weighted average remaining contractual life	6 years 4 months 24 days	6 years 4 months 24 days
Options exercisable at June 30, 2018, Weighted average remaining contractual life	4 years 10 months 24 days
Granted, Weighted average grant date fair value per share	$ 16.27
Outstanding, ending balance	$ 757,711
Options exercisable, ending balance	$ 449,306
Balance, Weighted average exercise price	$ 4.59
Granted, Weighted average exercise price	39.05
Exercised, Weighted average exercise price	3.05
Forfeited and expired, Weighted average exercise price	6.29
Balance, Weighted average exercise price	5.30	$ 4.59
Options exercisable at June 30, 2018, Weighted average exercise price	$ 3.46

Stockholder's Deficit - Stock O

Stockholder's Deficit - Stock Option Plan - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Intrinsic value of options exercised	$ 140.8	$ 0.1	$ 197	$ 0.2
Unrecognized stock compensation expense	$ 27		$ 27
Expected weighted average period to recognize unrecognized stock compensation expense			2 years 3 months 18 days

Stockholders' Deficit - Summary

Stockholders' Deficit - Summary of Assumptions Used to Value Fair Value of Options Granted Under Equity Incentive Plans Using Black-Scholes option-valuation Model (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Risk-free interest rate, Minimum	2.61%	1.90%	2.32%	1.90%
Risk-free interest rate, Maximum	2.88%	2.07%	2.88%	2.25%
Expected volatility, Minimum	38.00%	40.00%	38.00%	40.00%
Expected volatility, Maximum	39.00%	43.00%	40.00%	44.00%
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)	5 years 3 months 18 days	5 years 3 months 18 days	5 years 3 months 18 days	5 years 3 months 18 days
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected term (in years)	6 years 1 month 6 days	6 years 6 months	6 years 1 month 6 days	6 years 6 months

Stockholders' Deficit - Summa48

Stockholders' Deficit - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units shares in Thousands	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Beginning balance Number of Shares, outstanding | shares	272
Number of Shares, Awarded | shares	971
Number of Shares, Released | shares	(7)
Number of Shares, Forfeited | shares	(40)
Ending balance, Number of Shares outstanding | shares	1,196
Weighted Average Grant Date Fair Value Per Share, Beginning balance | $ / shares	$ 43.55
Weighted Average Grant Date Fair Value Per Share, Awarded | $ / shares	38.17
Weighted Average Grant Date Fair Value Per Share, Released | $ / shares	38.81
Weighted Average Grant Date Fair Value Per Share, Forfeited | $ / shares	41.19
Weighted Average Grant Date Fair Value Per Share, Ending balance | $ / shares	$ 39.29

Stockholders' Deficit - Restric

Stockholders' Deficit - Restricted Stock Units - Additional Information (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2018USD ($)
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Unrecognized stock compensation expense	$ 27	$ 27
Expected weighted average period to recognize unrecognized stock compensation expense		2 years 3 months 18 days
Restricted Stock Units
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Unrecognized stock compensation expense	43.9	$ 43.9
Expected weighted average period to recognize unrecognized stock compensation expense		3 years 8 months 12 days
Intrinsic value of restricted stock units vested during the period	$ 0.3	$ 0.3

Stockholder's Deficit - Warrant

Stockholder's Deficit - Warrants - Additional Information (Details) - shares	Jun. 30, 2018	Dec. 31, 2017
Class Of Warrant Or Right [Line Items]
Warrants outstanding	0
Class B Common Stock
Class Of Warrant Or Right [Line Items]
Outstanding warrants to purchase		200,000

Stockholder's Deficit - Summa51

Stockholder's Deficit - Summary of Assumptions Used to Value Preferred Stock Warrants (Details) - Preferred Stock Warrants	Jun. 30, 2017
Minimum | Expected term (in years)
Class Of Warrant Or Right [Line Items]
Fair value assumptions term	3 years
Minimum | Risk-free interest rate
Class Of Warrant Or Right [Line Items]
Fair value assumptions	1.5
Minimum | Expected volatility
Class Of Warrant Or Right [Line Items]
Fair value assumptions	43.8
Maximum | Expected term (in years)
Class Of Warrant Or Right [Line Items]
Fair value assumptions term	8 years 2 months 12 days
Maximum | Risk-free interest rate
Class Of Warrant Or Right [Line Items]
Fair value assumptions	2.2
Maximum | Expected volatility
Class Of Warrant Or Right [Line Items]
Fair value assumptions	49

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Commitments And Contingencies [Line Items]
Letters of credit outstanding	$ 3.1		$ 3.1		$ 1.5
Letters of credit expiration date			Dec. 31, 2019
Player | Cost of Revenue
Commitments And Contingencies [Line Items]
Reversal of loss contingencies accrual	8.9		$ 8.9
Intellectual Property Licensing
Commitments And Contingencies [Line Items]
Loss contingencies accrual, chnage in estimated liabilitites	8.9
Manufacturing
Commitments And Contingencies [Line Items]
Purchase commitments for inventory	104		104
Manufacturing | Accrued Liabilities
Commitments And Contingencies [Line Items]
Loss on purchase obligation for inventory			0.2		$ 0.6
Content License
Commitments And Contingencies [Line Items]
Purchase obligation that do not yet Meet criteria for asset recognition	0.2		0.2
Content License | Accrued Liabilities
Commitments And Contingencies [Line Items]
Purchase commitments for inventory	0.1		0.1
Office Space
Commitments And Contingencies [Line Items]
Rent expense	$ 2.4	$ 1.6	$ 4.6	$ 3.1
Operating lease latest expiration date			Nov. 30, 2024

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Taxes Disclosure [Line Items]
Income tax expense (benefit)	$ (354)	$ 38	$ (225)	$ 86
Federal
Income Taxes Disclosure [Line Items]
US federal corporate tax rate			21.00%

Related Party Disclosures - Add

Related Party Disclosures - Additional Information (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)RelatedParty	Jun. 30, 2017USD ($)RelatedParty	Jun. 30, 2018USD ($)RelatedParty	Jun. 30, 2017USD ($)RelatedParty	Dec. 31, 2017USD ($)
Strategic Investors
Related Party Transaction [Line Items]
Revenue from related parties	$ 700,000	$ 100,000	$ 1,700,000	$ 100,000
Receivable from related parties	1,800,000		1,800,000		$ 500,000
Related party transaction expense	200,000		200,000
Payable/ outstanding to related parties	200,000		200,000
Business Partner
Related Party Transaction [Line Items]
Revenue from related parties	1,900,000		3,300,000
Receivable from related parties	1,000,000		1,000,000
Board of Directors
Related Party Transaction [Line Items]
Related party transaction expense		$ 400,000		$ 400,000
Payable/ outstanding to related parties	$ 0		$ 0		$ 0
Significant transactions with related parties | RelatedParty	0	0	0	0

Revenue - Schedule of Cumulativ

Revenue - Schedule of Cumulative Effect of Changes Made to Consolidated Balance Sheet for Adoption of New Revenue Standard (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Assets
Accounts receivables, net	$ 123,612		$ 120,553
Inventories	39,431		32,740
Prepaid expenses and other current assets	15,131		11,367
Deferred cost of revenue, current portion	1,439		3,007
Deferred cost of revenue, non-current portion			5,403
Other non-current assets	4,540		3,429
Liabilities:
Accounts payable and accrued liabilities	111,026		128,757
Deferred revenue, current portion	39,151	$ 42,950	34,501
Deferred revenue, non-current portion	12,435	12,023	48,511
Equity:
Accumulated deficit	(251,147)		$ (283,338)
Accounting Standards Update 2014-09
Assets
Accounts receivables, net		133,281
Inventories		32,632
Prepaid expenses and other current assets		15,480
Deferred cost of revenue, current portion		1,931
Deferred cost of revenue, non-current portion		1,518
Other non-current assets		3,207
Liabilities:
Accounts payable and accrued liabilities		130,007
Deferred revenue, current portion		42,950
Deferred revenue, non-current portion		12,023
Equity:
Accumulated deficit		(244,999)
Accounting Standards Update 2014-09 | Adjustment on Adoption of New Revenue Standard
Assets
Accounts receivables, net	13,441	12,728
Inventories		(108)
Prepaid expenses and other current assets	4,557	4,113
Deferred cost of revenue, current portion	(2,668)	(1,076)
Deferred cost of revenue, non-current portion	(5,496)	(3,885)
Other non-current assets		(222)
Liabilities:
Accounts payable and accrued liabilities	2,000	1,250
Deferred revenue, current portion	4,844	8,449
Deferred revenue, non-current portion	(36,763)	(36,488)
Equity:
Accumulated deficit	$ 39,753	$ 38,339

Revenue - Additional Informatio

Revenue - Additional Information (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Jun. 30, 2018USD ($)segmentPerformanceObligation
Segment Reporting Information [Line Items]
Contract acquisition cost recognition, description			most direct contract acquisition costs relate to contracts that are recognized over a period of one year or less.
Contract acquisition, capitalized cost	$ 0		$ 0
Number of reportable segments operates | segment			2
Estimated future revenue from outstanding performance obligation	64,400,000		$ 64,400,000
Revenue, remaining performance obligation, expected timing of satisfaction, Description			As of June 30, 2018, the Company had $64.4 million of estimated future revenue related to outstanding performance obligations. The Company expects to recognize approximately 62% of this future revenue over the next twelve months and the remainder thereafter through 2024. This estimated future revenue excludes contracts with original durations of one year or less, amounts in accordance with ASC 606-10-55-18 and variable consideration amounts attributable to royalties.
Revenue remaining performance obligation percentage of revenue expected to be recognized			62.00%
Deferred revenue recognized	$ 8,300,000		$ 29,500,000
Contract with customer assets increase (decreaie)			$ 3,800,000
Intellectual Property
Segment Reporting Information [Line Items]
Deferred revenue recognized		$ 12,400,000
Minimum
Segment Reporting Information [Line Items]
Accounts receivable payment term period			30 days
Maximum
Segment Reporting Information [Line Items]
Accounts receivable payment term period			90 days
Platform
Segment Reporting Information [Line Items]
Number of performance obligations | PerformanceObligation			1
Player
Segment Reporting Information [Line Items]
Number of performance obligations | PerformanceObligation			2

Revenue - Schedule of Contract

Revenue - Schedule of Contract Balances (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Contract With Customer Asset Net [Abstract]
Accounts receivable, net	$ 123,612	$ 133,281
Contract assets, current portion	4,751	4,113
Deferred revenue, current portion	39,151	42,950	$ 34,501
Deferred revenue, non-current portion	$ 12,435	$ 12,023	$ 48,511

Revenue - Summary of Impact of

Revenue - Summary of Impact of Adoption of New Revenue Standards On Our Statements (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jan. 01, 2018	Dec. 31, 2017
Assets
Accounts receivable, net	$ 123,612		$ 123,612			$ 120,553
Inventories	39,431		39,431			32,740
Prepaid expenses and other current assets	15,131		15,131			11,367
Deferred cost of revenue, current portion	1,439		1,439			3,007
Deferred cost of revenue, non-current portion						5,403
Liabilities:
Accounts payable and accrued liabilities	111,026		111,026			128,757
Deferred revenue, current portion	39,151		39,151		$ 42,950	34,501
Deferred revenue, non-current portion	12,435		12,435		12,023	48,511
Equity:
Accumulated deficit	(251,147)		(251,147)			(283,338)
Net Revenue:
Total net revenue	156,810	$ 99,627	293,386	$ 199,720
Cost of Revenue:
Total cost of revenue	79,058	61,990	152,522	123,243
Gross Profit:
Total gross profit	77,752	37,637	140,864	76,477
Operating Expenses:
Research and development	40,196	25,776	74,322	48,118
Sales and marketing	22,259	14,667	42,577	28,722
General and administrative	15,429	10,577	30,999	20,855
Total operating expenses	77,884	51,020	147,898	97,695
Loss from Operations	(132)	(13,383)	(7,034)	(21,218)
Net loss	526	(15,513)	(6,108)	(24,215)
Platform
Liabilities:
Deferred revenue, current portion	24,433		24,433			19,022
Deferred revenue, non-current portion	7,271		7,271			42,674
Platform | Services
Net Revenue:
Total net revenue	90,341	45,976	165,418	82,391
Cost of Revenue:
Total cost of revenue	27,328	11,778	48,994	20,121
Gross Profit:
Total gross profit	63,013	34,198	116,424	62,270
Player
Liabilities:
Deferred revenue, current portion	14,718		14,718			15,479
Deferred revenue, non-current portion	5,164		5,164			$ 5,837
Player | Goods
Net Revenue:
Total net revenue	66,469	53,651	127,968	117,329
Cost of Revenue:
Total cost of revenue	51,730	50,212	103,528	103,122
Gross Profit:
Total gross profit	14,739	$ 3,439	24,440	$ 14,207
Accounting Standards Update 2014-09
Assets
Accounts receivable, net					133,281
Inventories					32,632
Prepaid expenses and other current assets					15,480
Deferred cost of revenue, current portion					1,931
Deferred cost of revenue, non-current portion					1,518
Liabilities:
Accounts payable and accrued liabilities					130,007
Deferred revenue, current portion					42,950
Deferred revenue, non-current portion					12,023
Equity:
Accumulated deficit					(244,999)
Accounting Standards Update 2014-09 | Balances Without Adoption of The New Revenue Standard
Assets
Accounts receivable, net	110,171		110,171
Inventories	39,431		39,431
Prepaid expenses and other current assets	10,574		10,574
Deferred cost of revenue, current portion	4,107		4,107
Deferred cost of revenue, non-current portion	5,496		5,496
Liabilities:
Accounts payable and accrued liabilities	109,026		109,026
Deferred revenue, current portion	34,307		34,307
Deferred revenue, non-current portion	49,198		49,198
Equity:
Accumulated deficit	(290,900)		(290,900)
Net Revenue:
Total net revenue	153,711		285,024
Cost of Revenue:
Total cost of revenue	76,789		145,574
Gross Profit:
Total gross profit	76,922		139,450
Operating Expenses:
Research and development	40,196		74,322
Sales and marketing	22,259		42,577
General and administrative	15,429		30,999
Total operating expenses	77,884		147,898
Loss from Operations	(962)		(8,448)
Net loss	(304)		(7,522)
Accounting Standards Update 2014-09 | Balances Without Adoption of The New Revenue Standard | Platform | Services
Net Revenue:
Total net revenue	86,426		158,289
Cost of Revenue:
Total cost of revenue	24,436		42,912
Gross Profit:
Total gross profit	61,990		115,377
Accounting Standards Update 2014-09 | Balances Without Adoption of The New Revenue Standard | Player | Goods
Net Revenue:
Total net revenue	67,285		126,735
Cost of Revenue:
Total cost of revenue	52,353		102,662
Gross Profit:
Total gross profit	14,932		24,073
Accounting Standards Update 2014-09 | Impact of Adoption Higher / (Lower)
Assets
Accounts receivable, net	13,441		13,441		12,728
Inventories					(108)
Prepaid expenses and other current assets	4,557		4,557		4,113
Deferred cost of revenue, current portion	(2,668)		(2,668)		(1,076)
Deferred cost of revenue, non-current portion	(5,496)		(5,496)		(3,885)
Liabilities:
Accounts payable and accrued liabilities	2,000		2,000		1,250
Deferred revenue, current portion	4,844		4,844		8,449
Deferred revenue, non-current portion	(36,763)		(36,763)		(36,488)
Equity:
Accumulated deficit	39,753		39,753		$ 38,339
Net Revenue:
Total net revenue	3,099		8,362
Cost of Revenue:
Total cost of revenue	2,269		6,948
Gross Profit:
Total gross profit	830		1,414
Operating Expenses:
Loss from Operations	830		1,414
Net loss	830		1,414
Accounting Standards Update 2014-09 | Impact of Adoption Higher / (Lower) | Platform | Services
Net Revenue:
Total net revenue	3,915		7,129
Cost of Revenue:
Total cost of revenue	2,892		6,082
Gross Profit:
Total gross profit	1,023		1,047
Accounting Standards Update 2014-09 | Impact of Adoption Higher / (Lower) | Player | Goods
Net Revenue:
Total net revenue	(816)		1,233
Cost of Revenue:
Total cost of revenue	(623)		866
Gross Profit:
Total gross profit	$ (193)		$ 367

Net Loss Per Share - Summary of

Net Loss Per Share - Summary of Calculation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Numerator:
Net income (loss) allocable to common stockholders	$ 526	$ (15,513)	$ (6,108)	$ (24,215)
Denominator:
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders—basic	102,652	4,882	101,079	4,866
Net income (loss) per share attributable to common stockholders—basic	$ 0.01	$ (3.18)	$ (0.06)	$ (4.98)
Weighted-average shares used in computing net income (loss) per share attributable to common stockholders—diluted	121,698	4,882	101,079	4,866
Net income (loss) per share attributable to common stockholders—diluted	$ 0	$ (3.18)	$ (0.06)	$ (4.98)

Net Loss Per Share - Schedule o

Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Calculation of Diluted Net Income (Loss) Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from calculation of diluted net loss per share	1,062	108,025	21,590	108,025
Equity Awards to Purchase Common Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from calculation of diluted net loss per share	1,062	24,560	21,485	24,560
Unvested Shares of Common Stock Issued Upon Early Exercise of Stock Options and Business Acquisition
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from calculation of diluted net loss per share		20	105	20
Warrants to Purchase Common Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from calculation of diluted net loss per share		375		375
Warrants to Purchase Convertible Preferred Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from calculation of diluted net loss per share		2,226		2,226
Convertible Preferred Stock
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive securities excluded from calculation of diluted net loss per share		80,844		80,844

Segment Information - Additiona

Segment Information - Additional Information (Details) - segment	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Number of reportable segments operates			2
Net Revenue | Geographic Concentration Risk [Member] | International Market [Member]
Segment Reporting Information [Line Items]
Concentration risk			10.00%
Net Revenue | Geographic Concentration Risk [Member] | International Market [Member] | Maximum
Segment Reporting Information [Line Items]
Concentration risk	10.00%	10.00%		10.00%

Segment Information - Schedule

Segment Information - Schedule of Customer Accounting for 10% or More of Segment Revenues (Details) - Net Revenue - Customer Concentration Risk	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Customer B
Entity Wide Revenue Major Customer [Line Items]
Concentration risk				10.00%
Customer C
Entity Wide Revenue Major Customer [Line Items]
Concentration risk	17.00%	18.00%	17.00%	20.00%
Customer E
Entity Wide Revenue Major Customer [Line Items]
Concentration risk				11.00%
Platform | Customer G
Entity Wide Revenue Major Customer [Line Items]
Concentration risk			10.00%
Platform | Customer E
Entity Wide Revenue Major Customer [Line Items]
Concentration risk		11.00%		13.00%
Player | Customer A
Entity Wide Revenue Major Customer [Line Items]
Concentration risk	16.00%	16.00%	14.00%	13.00%
Player | Customer B
Entity Wide Revenue Major Customer [Line Items]
Concentration risk	10.00%		14.00%	12.00%
Player | Customer C
Entity Wide Revenue Major Customer [Line Items]
Concentration risk	39.00%	33.00%	38.00%	32.00%
Player | Customer E
Entity Wide Revenue Major Customer [Line Items]
Concentration risk				10.00%

Subsequent Events - Additional

Subsequent Events - Additional Information (Details)	Jul. 31, 2018ft²Building	Jul. 18, 2018USD ($)	Jun. 30, 2018USD ($)
Third Amendment To Restated 2014 Loan and Security Agreement | Silicon Valley Bank
Subsequent Event [Line Items]
Maximum borrowing capacity			$ 5,000,000
Subsequent Event | Third Amendment To Restated 2014 Loan and Security Agreement | Silicon Valley Bank
Subsequent Event [Line Items]
Maximum borrowing capacity		$ 30,000,000
Subsequent Event | Third Amendment To Restated 2014 Loan and Security Agreement | Revolving Credit Facility | Silicon Valley Bank
Subsequent Event [Line Items]
Maximum borrowing capacity		$ 30,000,000
Office Space | Subsequent Event
Subsequent Event [Line Items]
Acquired office space | ft²	472,319
Number of floors lease | Building	3
Lease term	140 months