Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ROKU | |
Entity Registrant Name | Roku, Inc. | |
Entity Current Reporting Status | Yes | |
Entity Central Index Key | 0001428439 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 001-38211 | |
Entity Tax Identification Number | 26-2087865 | |
Entity Address, Address Line One | 1155 Coleman Avenue | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95110 | |
City Area Code | 408 | |
Local Phone Number | 556-9040 | |
Entity Incorporation, State or Country Code | DE | |
Title of 12(b) Security | Class A Common Stock, $0.0001 par value | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 115,199,428 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 17,199,155 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 2,077,514 | $ 1,092,815 |
Restricted cash | 83 | 434 |
Accounts receivable, net of allowances of $28,256 and $41,236 as of | 496,173 | 523,852 |
Inventories | 41,246 | 53,895 |
Prepaid expenses and other current assets | 134,375 | 26,644 |
Total current assets | 2,749,391 | 1,697,640 |
Property and equipment, net | 155,001 | 155,197 |
Operating lease right-of-use assets | 265,237 | 266,197 |
Intangible assets, net | 79,255 | 62,181 |
Goodwill | 125,684 | 73,058 |
Other non-current assets | 112,577 | 16,269 |
Total Assets | 3,487,145 | 2,270,542 |
Current Liabilities: | ||
Accounts payable | 96,468 | 112,314 |
Accrued liabilities | 477,402 | 347,668 |
Current portion of long-term debt | 6,125 | 4,874 |
Deferred revenue, current portion | 48,121 | 55,465 |
Total current liabilities | 628,116 | 520,321 |
Long-term debt, non-current portion | 87,398 | 89,868 |
Deferred revenue, non-current portion | 22,618 | 21,283 |
Operating lease liability, non-current portion | 303,159 | 307,936 |
Other long-term liabilities | 4,542 | 3,119 |
Total Liabilities | 1,045,833 | 942,527 |
Commitments and contingencies (Note 12) | ||
Stockholders’ Equity: | ||
Common stock, $0.0001 par value | 13 | 13 |
Additional paid-in capital | 2,697,380 | 1,660,379 |
Accumulated other comprehensive income | 29 | 29 |
Accumulated deficit | (256,110) | (332,406) |
Total stockholders’ equity | 2,441,312 | 1,328,015 |
Total Liabilities and Stockholders’ Equity | $ 3,487,145 | $ 2,270,542 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 28,256 | $ 41,236 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Revenue: | ||
Total net revenue | $ 574,183 | $ 320,766 |
Cost of Revenue: | ||
Total cost of revenue | 247,412 | 179,665 |
Gross Profit: | ||
Total gross profit | 326,771 | 141,101 |
Operating Expenses: | ||
Research and development | 101,581 | 88,278 |
Sales and marketing | 88,873 | 68,248 |
General and administrative | 60,511 | 39,740 |
Total operating expenses | 250,965 | 196,266 |
Income (Loss) from Operations | 75,806 | (55,165) |
Other Income (Expense), Net: | ||
Interest expense | (742) | (863) |
Other income (expense), net | 441 | 1,261 |
Total other income (expense), net | (301) | 398 |
Income (Loss) Before Income Taxes | 75,505 | (54,767) |
Income tax (benefit) expense | (791) | (155) |
Net Income (Loss) | $ 76,296 | $ (54,612) |
Net income (loss) per share — basic | $ 0.59 | $ (0.45) |
Net income (loss) per share — diluted | $ 0.54 | $ (0.45) |
Weighted-average common shares outstanding — basic | 129,674 | 120,180 |
Weighted-average common shares outstanding — diluted | 140,328 | 120,180 |
Platform | Services | ||
Net Revenue: | ||
Total net revenue | $ 466,526 | $ 232,557 |
Cost of Revenue: | ||
Total cost of revenue | 154,590 | 101,936 |
Gross Profit: | ||
Total gross profit | 311,936 | 130,621 |
Player | Goods | ||
Net Revenue: | ||
Total net revenue | 107,657 | 88,209 |
Cost of Revenue: | ||
Total cost of revenue | 92,822 | 77,729 |
Gross Profit: | ||
Total gross profit | $ 14,835 | $ 10,480 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment |
Balance at Dec. 31, 2019 | $ 698,426 | $ (1,066) | $ 12 | $ 1,012,218 | $ 29 | $ (313,833) | $ (1,066) |
Balance, Shares at Dec. 31, 2019 | 119,897 | ||||||
Vesting of early exercised stock options | 17 | 17 | |||||
Issuance of common stock pursuant to equity incentive plans | 2,743 | 2,743 | |||||
Issuance of common stock pursuant to equity incentive plans, Shares | 760 | ||||||
Stock-based compensation expense | $ 30,405 | 30,405 | |||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 | ||||||
Net income (loss) | $ (54,612) | (54,612) | |||||
Balance at Mar. 31, 2020 | 675,913 | $ 12 | 1,045,383 | 29 | (369,511) | ||
Balance, Shares at Mar. 31, 2020 | 120,657 | ||||||
Balance at Dec. 31, 2020 | 1,328,015 | $ 13 | 1,660,379 | 29 | (332,406) | ||
Balance, Shares at Dec. 31, 2020 | 128,004 | ||||||
Vesting of early exercised stock options | 4 | 4 | |||||
Issuance of common stock pursuant to equity incentive plans | 6,705 | 6,705 | |||||
Issuance of common stock pursuant to equity incentive plans, Shares | 1,663 | ||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs | 989,615 | 989,615 | |||||
Issuance of common stock pursuant in connection with at-the-market offerings, net of issuance costs, Shares | 2,637 | ||||||
Stock-based compensation expense | 40,677 | 40,677 | |||||
Net income (loss) | 76,296 | 76,296 | |||||
Balance at Mar. 31, 2021 | $ 2,441,312 | $ 13 | $ 2,697,380 | $ 29 | $ (256,110) | ||
Balance, Shares at Mar. 31, 2021 | 132,304 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
At the market offering issuance cost | $ 10.4 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net Income (Loss) | $ 76,296 | $ (54,612) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 9,605 | 8,448 |
Stock-based compensation expense | 40,537 | 30,405 |
Amortization of right-of-use assets | 6,458 | 9,213 |
Amortization of content assets | 9,818 | 6,123 |
Provision for doubtful accounts | (54) | 3,788 |
Other items, net | 31 | (14) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 32,608 | 32,458 |
Inventories | 12,649 | 5,736 |
Prepaid expenses and other current assets | (19,001) | (967) |
Other non-current assets | (60,484) | 1,469 |
Accounts payable | (18,857) | (13,650) |
Accrued liabilities | 29,052 | 4,797 |
Operating lease liabilities | (12,436) | 13,560 |
Other long-term liabilities | 548 | 1,166 |
Deferred revenue | (10,971) | (1,979) |
Net cash provided by operating activities | 95,799 | 45,941 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (3,717) | (45,317) |
Acquisitions of businesses, net of cash acquired | (102,804) | |
Proceeds from escrows associated with acquisition | 1,058 | |
Net cash used in investing activities | (106,521) | (44,259) |
Cash flows from financing activities: | ||
Proceeds from equity issued under at-the-market offerings, net of offering costs | 989,615 | |
Proceeds from borrowings, net of issuance costs | 69,325 | |
Repayments of borrowings | (1,250) | (1,250) |
Proceeds from equity issued under incentive plans | 6,705 | 2,743 |
Net cash provided by financing activities | 995,070 | 70,818 |
Net increase in cash, cash equivalents and restricted cash | 984,348 | 72,500 |
Cash, cash equivalents and restricted cash —Beginning of period | 1,093,249 | 517,333 |
Cash, cash equivalents and restricted cash —End of period | 2,077,597 | 589,833 |
Cash, cash equivalents and restricted cash at end of period: | ||
Cash and cash equivalents | 2,077,514 | 588,294 |
Restricted cash | 83 | 1,539 |
Cash, cash equivalents and restricted cash —End of period | 2,077,597 | 589,833 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 647 | 1,067 |
Cash paid for income taxes | 277 | 238 |
Supplemental disclosures of noncash investing and financing activities: | ||
Unpaid portion of property and equipment purchases | 2,860 | 14,148 |
Unpaid portion of acquisition related expenses | 1,595 | |
Unpaid portion of purchased intangibles | $ 400 | |
Unpaid portion of at-the-market offering costs | $ 105 |
The Company
The Company | 3 Months Ended |
Mar. 31, 2021 | |
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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020, filed with the SEC on February 26, 2021 (the “Annual Report”). The condensed consolidated balance sheet as of December 31, 2020 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. 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 months ended March 31, 2021 are not necessarily indicative of the operating results to be expected for the full year or any future periods. Use of Estimates The preparation of the Company’s 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, liabilities, net revenue and expenses. Significant items subject to such estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, variable consideration, determining the stand-alone selling prices of performance obligations, gross versus net revenue recognition, evaluation of customer versus vendor relationships, and other obligations such as sales return reserves and sales incentive programs; the impairment of goodwill and intangible assets; useful lives of tangible and intangible assets; allowances for doubtful accounts; the valuation of deferred income tax assets; and stock-based compensation. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results may differ from the Company’s estimates and assumptions. Principles of Consolidation The consolidated financial statements, which include the accounts of Roku, Inc. and its wholly-owned subsidiaries, have been prepared in conformity with U.S. GAAP. All intercompany accounts and transactions have been eliminated in consolidation. Reclassification of Prior Year Presentation Certain prior period amounts within cash flow from operations in the statement of cash flows, have been reclassified to conform to current period presentation. These reclassifications had no effect on net cash provided by operating activities for any period reported. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of March 31, 2021, two financial institutions managed 61% and 21%, respectively, of the Company’s cash and cash equivalents balance. As of December 31, 2020, two financial institutions managed 46% and 26%, respectively, of the Company’s cash and cash equivalents balance. Accounts Receivable, net Accounts receivable are typically unsecured and are derived from revenue earned from customers. They are stated at invoice value less estimated allowances for sales returns, sales incentives and doubtful accounts. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses and doubtful accounts. The Company considers historical experience, ongoing promotional activities, historical claim rate and other factors to determine the allowances for sales returns and sales incentives. Allowance for Sales Returns : Allowance for sales returns consists of the following activities (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Beginning balance $ (5,912 ) $ (6,550 ) Charged to revenue (2,526 ) (2,727 ) Utilization of sales return reserve 4,670 4,609 Ending balance $ (3,768 ) $ (4,668 ) Allowance for Sales Incentives : Allowance for sales incentives consists of the following activities (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Beginning balance $ (30,838 ) $ (19,476 ) Charged to revenue (12,618 ) (9,409 ) Utilization of sales incentive reserve 23,320 19,612 Ending balance $ (20,136 ) $ (9,273 ) Allowance for Doubtful Accounts : Allowance for doubtful accounts consists of the following activities (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Balance, beginning of period $ (4,181 ) $ (1,140 ) Impact of adoption of ASU 2016-13 — (1,066 ) Adjusted balance, beginning of period (4,181 ) (2,206 ) Provision for doubtful accounts 54 (3,788 ) Adjustments for recovery and write-off — 1,035 Balance, end of period $ (4,127 ) $ (4,959 ) The Company did not have any customer that accounted for more than 10% of its accounts receivable, net balance as of March 31, 2021. Customer H accounted for 11% of the accounts receivable, net balance as of December 31, 2020. Recently On January 1, 2021, the Company adopted the guidance issued in Accounting Standards Updates (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting that reference London Interbank Offered Rate (“LIBOR”) that is expected to be discontinued, subject to meeting certain criteria. The guidance is effective as of March 12, 2020 through December 31, 2022. The Company made a policy election in the second quarter of 2020 to elect a different reference rate for the Credit Agreement (as defined below) when LIBOR is discontinued. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 3. REVENUE The Company’s disaggregated revenues are represented by the two reportable segments discussed in Note 15. The contract balances include the following (in thousands): As of March 31, 2021 December 31, 2020 Accounts receivable, net $ 496,173 $ 523,852 Contract assets (included in Prepaid expenses and other current assets) 28,684 7,431 Deferred revenue, current portion 48,121 55,465 Deferred revenue, non-current portion 22,618 21,283 Total deferred revenue $ 70,739 $ 76,748 Accounts receivable are recorded at the amount invoiced, net of an allowance for doubtful accounts, sales returns, and sales incentives. Payment terms can vary by customer and contract. The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets are created when invoicing occurs subsequent to revenue recognition. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional. The Company’s contract assets are generally current in nature and are included in Prepaid expenses and other current assets. Contract assets increased by approximately $21.3 million during the three months ended March 31, 2021 primarily due to an increase in the growth of platform revenue combined with the timing of billing which falls into a subsequent period Contract liabilities are included in deferred revenue and reflect consideration invoiced prior to the completion of performance obligations and revenue recognition. Deferred revenue decreased by approximately $6.0 million during the three months ended March 31, 2021 due to the timing of fulfillment of performance obligations related to platform revenue contracts. Revenue recognized during the three months ended March 31, 2021, from amounts included in deferred revenue as of December 31, 2020 was $26.2 million. Revenue recognized during the three months ended March 31, 2020, from amounts included in deferred revenue as of December 31, 2019 was $20.5 million. Revenue allocated to remaining performance obligations represents estimated contracted revenue that has not yet been recognized which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Estimated contracted revenue was $900.8 million 47 The Company recognized $29.0 million and $2.7 million during the three months ended March 31, 2021 and 2020, respectively, from performance obligations that were satisfied in previous periods due to the changes in transaction price of its revenue contracts. Customer H accounted for 11% of the total net revenue during the three months ended March 31, 2021, and Customer C accounted for 14% of the total net revenue during the three months ended March 31, 2020. |
Business Combination
Business Combination | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combination | 4. business combination On March 19, 2021, the Company acquired all outstanding shares of TOH Intermediate Holdings, LLC (“This Old House”) according to the terms and conditions of the Equity Purchase Agreement. The Company acquired the This Old House business, as the Company believes the content aligns with The Roku Channel’s ad-supported growth strategy. The total purchase consideration for This Old House was $97.8 million, paid entirely in cash. The Company incurred $ million in acquisition related expenses and has recorded them in General and administrative expenses in the condensed consolidated statement of operations. The Company is still in the process of finalizing the fair value of the assets and liabilities acquired. The purchase price allocation below is preliminary in nature. The estimates and assumptions regarding the fair value of certain tangible assets acquired and liabilities assumed, the valuation of intangible assets acquired, income taxes, and goodwill are subject to change as the Company obtains additional information during the measurement period, which usually lasts for up to one year from the acquisition date. The preliminary allocation of the purchase consideration to tangible and intangible assets acquired and liabilities assumed is based on estimated fair values and is as follows (in thousands): Assets acquired Fair Values Cash and cash equivalents $ 7 Accounts receivable 4,875 Prepaid and other current assets 7,310 Property and equipment, net 307 Intangible assets: Tradename 20,000 Customer relationships 700 Goodwill 47,626 Operating lease right-of-use assets 5,498 Other long-term assets 23,487 Total assets acquired 109,810 Liabilities assumed Accounts payable and accrued liabilities (2,747 ) Deferred revenue, current (4,146 ) Operating lease liabilities (4,262 ) Deferred revenue, non-current (816 ) Other long-term liabilities (28 ) Total liabilities assumed (11,999 ) Total purchase consideration $ 97,811 Other long-term assets include The excess of the total consideration over the tangible assets, identifiable intangible assets, and assumed liabilities is recorded as goodwill. Goodwill is primarily attributable to expected synergies in our advertising offerings as we bring more . The goodwill recorded is deductible for tax purposes. The fair value of the tradename has been estimated using the relief-from-royalty method. The key valuation assumptions include the Company's estimates of expected future revenue and royalty rate. The Company amortizes the fair value of the tradename on a straight-line basis over its useful life. The valuation of the intangible assets acquired from This Old House along with their estimated useful lives, is as follows (in thousands): Estimated Fair Value Estimated Useful Lives (in years) Tradename $ 20,000 10 Customer relationships 700 4 Estimated fair value of acquired intangible assets $ 20,700 The revenue, cost of revenue and gross profit recorded by the Company in its condensed consolidated statement of operations from the acquisition date of March 19, 2021 to March 31, 2021 are not material. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. GOODWILL AND INTANGIBLE ASSETS Goodwill Goodwill represents the excess of purchase consideration in a business combination over the fair value of tangible and intangible assets acquired net of the liabilities assumed. All goodwill relates to the Company’s platform segment. The following table reflects the carrying value of goodwill (in thousands): Carrying Value Balance as of December 31, 2020 $ 73,058 Additions: This Old House acquisition 47,626 Other immaterial acquisitions 5,000 Balance as of March 31, 2021 $ 125,684 Intangible Assets The following table is the summary of Company’s intangible assets (in thousands): As of March 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Useful Lives (in years) Developed technology $ 62,367 $ (16,082 ) $ 46,285 5.9 Customer relationships 14,100 (4,752 ) 9,348 4.0 Tradename 20,400 (466 ) 19,934 9.8 Patents 4,076 (388 ) 3,688 14.0 Intangible assets $ 100,943 $ (21,688 ) $ 79,255 As of December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Useful Lives (in years) Developed technology $ 62,367 $ (13,439 ) $ 48,928 5.9 Customer relationships 13,400 (3,908 ) 9,492 4.0 Tradename 400 (400 ) — 0.5 Patents 4,076 (315 ) 3,761 14.0 Intangible assets $ 80,243 $ (18,062 ) $ 62,181 The Company recorded expenses of $3.6 million and $3.8 million for amortization of intangible assets during the three months ended March 31, 2021 and March 31, 2020, respectively. In three months ended March 31, 2021 and 2020, the Company recorded amortization of developed technology in Cost of revenue, platform, Cost of revenue, player and Research and development expenses. The amortization for customer relationships and tradenames is recorded in Sales and marketing expenses and the amortization of patents is recorded in General and administrative expenses in the condensed consolidated statement of operations. The estimated future amortization expense for intangible asset for the next five years and thereafter is as follows (in thousands): Year Ending December 31, 2021 (remaining 9 months) $ 12,153 2022 15,896 2023 15,338 2024 12,546 2025 10,794 Thereafter 12,528 Total $ 79,255 |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 6. Balance sheet components Accounts Receivable, net : Accounts receivable, net consists of the following (in thousands): As of March 31, 2021 December 31, 2020 Gross accounts receivable $ 524,429 $ 565,088 Allowance for sales returns (3,768 ) (5,912 ) Allowance for sales incentives (20,136 ) (30,838 ) Allowance for doubtful accounts (4,127 ) (4,181 ) Other allowances (225 ) (305 ) Total allowances (28,256 ) (41,236 ) Total Accounts Receivable, net of allowances $ 496,173 $ 523,852 Property and Equipment, net : Property and equipment, net consists of the following (in thousands): As of March 31, 2021 December 31, 2020 Computers and equipment $ 32,279 $ 30,859 Leasehold improvements 147,790 144,013 Website and internal-use software 7,319 6,744 Office equipment and furniture 19,671 19,661 Total property and equipment 207,059 201,277 Accumulated depreciation and amortization (52,058 ) (46,080 ) Property and Equipment, net $ 155,001 $ 155,197 Depreciation and amortization expense, for property and equipment assets, for the three months ended March 31, 2021 and 2020 was $6.0 million and $4.7 Accrued Liabilities : Accrued liabilities consists of the following (in thousands): As of March 31, 2021 December 31, 2020 Payments due to content publishers 144,138 106,576 Accrued cost of revenue 102,285 98,285 Marketing, retail and merchandising costs 44,023 43,645 Operating lease liability, current 32,715 35,647 Content liability, current 89,816 6,165 Other accrued expenses 64,425 57,350 Total Accrued Liabilities $ 477,402 $ 347,668 Deferred Revenue : Deferred revenue consists of the following (in thousands): As of March 31, 2021 December 31, 2020 Platform, current $ 21,516 $ 27,587 Player, current 26,605 27,878 Total deferred revenue, current 48,121 55,465 Platform, non-current 10,906 9,909 Player, non-current 11,712 11,374 Total deferred revenue, non-current 22,618 21,283 Total Deferred Revenue $ 70,739 $ 76,748 |
Content Assets
Content Assets | 3 Months Ended |
Mar. 31, 2021 | |
Capitalized Content Costs [Abstract] | |
Content Assets | 7. Content Assets As of March 31, 2021 and December 31, 2020, content assets that met the capitalization criteria were $104.6 million and $7.9 million, respectively, and are recorded in Other non-current assets. On January 8, 2021, the Company entered into an agreement with the mobile-first video distribution service known as Quibi to acquire certain content rights. The transaction was accounted for as an asset acquisition. As discussed in Note 4, the Company also acquired content assets as part of the This Old House acquisition. During the three months ended March 31, 2021, the increase of $96.7 million in content assets was primarily driven by content acquired from Quibi and This Old House. The Company records amortization expense for licensed content based on the pattern of monetization of such content. Amortization expense associated with licensed content assets was $9.8 million and $6.1 million for the three months ended March 31, 2021 and 2020, respectively and is included in Cost of revenue, platform in the condensed consolidated statements of operations. Licensed content assets are primarily monetized together as a unit, referred to as a film group. The film group is evaluated for impairment whenever an event occurs or circumstances change indicating the fair value is less than the carrying value. The Company reviews various qualitative factors and indicators to assess whether the group asset is impaired. |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 8. FAIR VALUE The Company’s financial assets measured at fair value are as follows (in thousands): As of March 31, 2021 As of December 31, 2020 Fair Value Level 1 Fair Value Level 1 Assets: Cash and cash equivalents: Cash $ 2,005,720 $ 2,005,720 $ 1,021,022 $ 1,021,022 Money market funds 71,794 71,794 71,793 71,793 Restricted cash 83 83 434 434 Total assets measured and recorded at fair value $ 2,077,597 $ 2,077,597 $ 1,093,249 $ 1,093,249 Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal market (or most advantageous market, in the absence of a principal market) for the asset or liability in an orderly transaction between market participants at the measurement date. Further, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs in measuring fair value and utilizes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows: 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 90 days or less at the date of purchase to be cash equivalents. The Company measured money market funds of $71.8 million as cash equivalents as of March 31, 2021 and December 31, 2020, respectively, using Level 1 inputs. 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 did not have Level 2 instruments on March 31, 2021 and December 31, 2020. 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 did not have Level 3 instruments on March 31, 2021 and December 31, 2020. Assets and liabilities that are measured at fair value on a non-recurring basis Non-financial assets such as goodwill, intangible assets, property, plant, and equipment, operating lease right-of-use (“ROU”) assets and licensed content assets are evaluated for impairment and adjusted to fair value using Level 3 inputs, only when impairment is recognized. There were no indicators of impairment that required a fair value analysis during the three months ended March 31, 2021. The impairments for operating right-of-use assets recorded by the Company for the year ended December 31, 2020 were not material. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | 9. LEASES The Company has entered into operating leases primarily for office real estate. The leases have remaining terms ranging from two to ten years and may include options to extend or terminate the lease. The depreciable life of ROU assets is limited by the expected lease term. The components of lease expense are as follows (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Operating lease cost (1) $ 10,266 $ 12,217 Variable lease cost 2,952 2,198 Net operating lease cost $ 13,218 $ 14,415 (1) Operating lease cost is presented net of sublease income. The Company had no sublease income for the three months ended March 31, 2021. Sublease income for the three months ended March 31, 2020 was not material. Supplemental cash flow information related to leases is as follows (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 16,224 $ 9,451 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 5,498 $ (795 ) Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate As of March 31, 2021 December 31, 2020 Operating lease right-of-use assets $ 265,237 $ 266,197 Included in accounts payable and accrued liabilities: Operating lease liability, current 32,715 35,647 Operating lease liability, non-current 303,159 307,936 Total operating lease liability $ 335,874 $ 343,583 Weighted Average Remaining Lease Term: Operating leases (in years) 8.81 9.05 Weighted Average Discount Rate: Operating leases 4.59 % 4.60 % Future lease payments under operating leases as of March 31, 2021 are as follows (in thousands): Year Ending December 31, Operating Leases 2021 (remaining 9 months) $ 35,113 2022 48,126 2023 48,287 2024 47,238 2025 46,910 Thereafter 204,271 Total future lease payments 429,945 Less: imputed interest (78,085 ) Less: expected tenant improvement allowance (15,986 ) Total $ 335,874 As of March 31, 2021, the Company’s commitment relating to operating leases that have not yet commenced was $42.4 million. These operating leases |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 10. DEBT The Company’s outstanding debt as of March 31, 2021 and December 31, 2020 is as follows (in thousands): As of March 31, 2021 December 31, 2020 Amount Effective Interest Rate Amount Effective Interest Rate Term Loan A Facility $ 93,750 2.02 % $ 95,000 2.03 % Less: Debt issuance costs (227 ) (258 ) Net carrying amount of debt $ 93,523 $ 94,742 The carrying amount of debt approximates fair value due to its variable interest rates. Interest expense for the three months ended March 31, 2021 and 2020 associated with the Term Loan A Facility is $0.5 million and $0.6 million, respectively. Senior Secured Term Loan A and Revolving Credit Facilities On February 19, 2019 (the “Original Closing Date”), the Company entered into a Credit Agreement (the “Existing Credit Agreement”) with Morgan Stanley Senior Funding, Inc. On May 3, 2019 (the “Closing Date”), the Existing Credit Agreement was amended pursuant to an Incremental Assumption and Amendment No. 1 (the “Amendment” and the Existing Credit Agreement as amended by the Amendment, the “Credit Agreement”). On the Original Closing Date, the Company terminated the Amended and Restated Loan and Security Agreement that it entered into with Silicon Valley Bank in November 2014 (the “Restated 2014 LSA”). The Credit Agreement provides for (i) a four-year four-year On November 18, 2019, the Company borrowed the Term Loan A facility in the aggregate principal amount of $100.0 million. On March 24, 2020, the Company borrowed the available balance of $69.3 million from the Revolving Credit Facility. For both borrowings, the Company elected an interest rate equal to the adjusted one-month LIBOR rate plus an applicable margin of 1.75% based on the Company’s secured leverage ratio. Loans under the Term Loan A Facility amortize in equal quarterly installments beginning on March 31, 2020, in an aggregate annual amount equal to (i) on or prior to December 31, 2021, 1.25% of the drawn principal amount of the Term Loan Facility or $1.25 million and (ii) thereafter, 2.50% of the drawn principal amount of the Term Loan Facility or $2.5 million, with the remaining balance payable on the maturity date of the Term Loan A Facility in February 2023. The Revolving Credit Facility may be borrowed, repaid and reborrowed until the fourth anniversary of the Closing Date in February 2023, at which time all outstanding balances of the Revolving Credit Facility are due to be repaid. The Company had outstanding letters of credit against the Revolving Credit Facility of $30.8 million as of March 31, 2021 and December 31, 2020, respectively. The Company’s obligations under the Credit Agreement are secured by substantially all of its assets. In the future, certain of its direct and indirect subsidiaries may be required to guarantee the Credit Agreement. The Company may prepay, and in certain circumstances would be required to prepay, loans under the Credit Agreement without payment of a premium. The Credit Agreement contains customary representations and warranties, customary affirmative and negative covenants, a financial covenant that is tested quarterly and requires the Company to maintain a certain adjusted quick ratio of at least 1.00 to 1.00, and cu stomary events of default. As of March 31, 2021, the Company was in compliance with all of the covenants of the Credit Agreement. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | 11. STOCKHOLDERS’ EQUITY Preferred Stock The Company has 10 million shares of undesignated preferred stock authorized but not issued with rights and preferences determined by the Company’s Board of Directors at the time of issuance of such shares. As of March 31, 2021 and December 31, 2020, there were no shares of preferred stock issued and outstanding. Common Stock The Company has two classes of authorized common stock, Class A common stock and 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. Shares of Class B common stock are voluntarily convertible into shares of Class A common stock at the option of the holder and are generally automatically converted into shares of the Company's Class A common stock upon sale or transfer. Shares issued in connection with exercises of stock options, vesting of restricted stock units, or shares purchased under the employee stock purchase plan are generally automatically converted into shares of the Company’s Class A common stock. At-the-Market Offering On March 2, 2021, the Company entered into an Equity Distribution Agreement with Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and Evercore Group L.L.C., as its sales agents, pursuant to which the Company could offer and sell from time-to-time shares of its Class A common stock for aggregate gross proceeds of up to $1,000.0 million. In March 2021, the Company sold approximately 2.6 million shares of Class A common stock at an average selling price of $ 379.26 per share, for aggregate gross proceeds of $ m illion and incurred issuance costs of $ 10.4 million. Common Stock Reserved For Future Issuance At March 31, 2021, the Company had reserved shares of common stock for issuance as follows (in thousands): As of March 31, 2021 Common stock awards granted under equity incentive plans 11,457 Common stock awards available for issuance under the 2017 Employee Stock Purchase Plan * 5,089 Common stock awards available for issuance under the 2017 Equity Incentive Plan 27,847 Total reserved shares of common stock 44,393 * The Company has not issued any common stock pursuant to the 2017 Employee Stock Purchase Plan. Equity Incentive Plans The Company has two equity incentive plans, the 2008 Equity Incentive Plan (the “2008 Plan”) and the 2017 Equity Incentive Plan (the “2017 Plan”). The 2017 Plan became effective September 2017 in connection with the Company’s initial public offering. No further shares have been issued under the 2008 Plan. The 2017 Plan provides for the grant of incentive stock options to the Company’s 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 the Company’s employees, directors and consultants. Restricted stock units granted under the plan are subject to continuous service. Options granted under the plans are granted at a price per share equivalent to the fair market value on the date of grant. Recipients of option grants 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 are at a price no less than 110% of the fair market value at the date of grant. Restricted Stock Units Restricted stock unit activity for the three months ended March 31, 2021 is as follows (in thousands, except per share data): Number of Shares Weighted Average Grant Date Fair Value Per Share Balance, December 31, 2020 4,355 $ 92.91 Awarded 97 384.11 Released (387 ) 71.77 Forfeited (71 ) 112.86 Balance, March 31, 2021 – outstanding 3,994 $ 101.66 The grant-date fair value of restricted stock units granted during the three months ended March 31, 2021 and 2020 was $37.2 million and $53.6 million, respectively. The grant-date fair value of restricted stock units that vested during the three months ended March 31, 2021 and 2020 was $27.8 million and $17.1 million, respectively. Total unrecognized compensation cost related to restricted stock units as of March 31, 2021 was $330.7 million, which the Company expects to recognize over a weighted-average period of approximately 2.11 years. Stock Options The following table summarizes the Company’s stock option activities under the 2008 Plan and 2017 Plan (in thousands, except 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, 2020 8,733 $ 26.19 5.7 — Granted 10 413.11 — $ 154.43 Exercised (1,276 ) 5.25 — — Forfeited and expired (4 ) 7.57 — — Balance, March 31, 2021 - outstanding 7,463 $ 30.31 5.8 — $ 2,206,030 Options exercisable at March 31, 2021 5,311 $ 9.47 4.9 — $ 1,680,001 The weighted average grant-date fair value of options granted during the three months ended March 31, 2021 and 2020, was , respectively. in the three months ended March 31, 2021 and 2020, was million, respectively. Intrinsic value represents the difference between the fair values of the Company’s common stock and the options’ exercise price on the date of grant. As of March 31, 2021, the Company had $ million of unrecognized stock compensation expense related to unvested stock options that is expected to be recognized over a weighted-average period of approximately Stock-Based Compensation The Company measures the cost of employee services received in exchange for an equity award based on the grant date fair value of the award. Generally, stock options granted to employees vest 25% after one year and then 1/48th monthly thereafter and have a term of ten years. Restricted stock units generally vest over 4 years. For the three months ended March 31, 2021 and 2020, the amount of stock-based compensation capitalized as part of internal use software was not material. The following table shows total stock-based compensation expense for the three months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Cost of platform revenue $ 198 $ 211 Cost of player revenue 415 338 Research and development 16,554 13,255 Sales and marketing 13,363 10,057 General and administrative 10,007 6,544 Total stock-based compensation $ 40,537 $ 30,405 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 March 31, 2021 March 31, 2020 Expected term (in years) 5.0 - 6.0 5.0 Risk-free interest rate 0.36 - 0.80% 0.88 - 1.67% Expected volatility 38.3 - 39.0% 36.0 % Dividend rate — — |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. COMMITMENTS AND CONTINGENCIES Manufacturing Purchase Commitments The Company has various manufacturing contracts with vendors in the conduct of the normal course of its business. In order to manage future demand for its products, the Company enters into agreements with manufacturers and suppliers to procure inventory based upon certain criteria and timing. Some of these commitments are non-cancelable. License Content Commitments As of March 31, 2021, the Company recognized a liability of $89.8 million in Accrued liabilities and $2.2 million in Other long-term liabilities for licensed content that is available for streaming. As of December 31, 2020, the Company recognized a liability of $6.2 million in Accrued liabilities and $1.4 million in Other long-term liabilities for licensed content that was available for streaming. In connection with the acquisition of certain content rights, the Company also assumed liabilities related to certain costs of the development and use of certain assets that had been incurred but not paid at the time assumed. Escrow arrangements were put in place such that selling shareholders will cover such costs. Accordingly, the Company has recognized both an indemnification asset and liability of $81.4 million, respectively, as of March 31, 2021. This indemnification asset is recorded as part of Prepaid and other current assets and the indemnification liability is recorded as part of Accrued liabilities in the condensed consolidated balance sheets. The Company also enters into contracts with content publishers to acquire content or to buy ad inventory in the future. As of March 31, 2021, the Company had $94.5 million in commitments with content Letters of Credit As of March 31, 2021 and December 31, 2020, the Company had irrevocable letters of credit outstanding in the amount of $30.8 million and $30.9 million, respectively, related to facilities leases. The letters of credit have various expiration dates through 2030. Contingencies The Company accrues for loss contingencies, including liabilities for intellectual property licensing claims, when it believes such losses are probable and reasonably estimable. From time to time, the Company is subject to legal proceedings, claims, and investigations in the ordinary course of business, including claims relating to employee relations, business practices and patent infringement. The Company is involved in litigation matters not listed herein. 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. In connection with the acquisition of certain content rights, the Company became jointly and severally liable for all liabilities arising from an office lease. Prior to the acquisition, the lease was assigned to an entity unaffiliated with the Company, which is now the primary lessee and which pays the liabilities associated with such office lease on an ongoing basis. The Company does not have access to the leased property, nor does it have a right to use the building, however the Company is a guarantor of the lease. The estimated maximum amount owed for the remaining term of the lease at the time of the acquisition was approximately $35.0 million. Escrow arrangements were put in place to cover foreseeable liabilities that potentially could be incurred by the Company. Indemnification In the ordinary course of business, the Company has entered into contractual arrangements which provide indemnification provisions of varying scope and terms to business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements and out of intellectual property infringement claims made by third parties. 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 condensed consolidated financial statements. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. INCOME TAXES Income tax benefit for the three months ended March 31, 2021 and 2020 is not material. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized through future operations. As a result of the Company’s analysis of all available objective evidence, both positive and negative, as of March 31, 2021, management believes it is more likely than not that the deferred tax assets will not be fully realizable. Accordingly, the Company has provided a full valuation allowance against its deferred tax assets with the exception of deferred tax assets related to foreign entities in Brazil, Canada, China, Denmark, India, Netherlands, Taiwan and the U.K. 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. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 14. NET INCOME (LOSS) PER SHARE The Company’s basic net income (loss) per share is calculated by dividing the net income (loss) 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, options to purchase common stock, restricted stock units and unvested shares of common stock issued upon the early exercise of stock options are considered common stock equivalents. Dilutive shares of common stock are determined by applying the treasury stock method. The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended March 31, 2021 March 31, 2020 Numerator: Net income (loss) $ 76,296 $ (54,612 ) Denominator: Weighted-average common shares outstanding — basic 129,674 120,180 Net income (loss) per share — basic $ 0.59 $ (0.45 ) Weighted-average common shares outstanding — basic 129,674 120,180 Common stock equivalents 10,654 — Weighted-average common shares outstanding — diluted 140,328 120,180 Net income (loss) per share — diluted $ 0.54 $ (0.45 ) Common shares excluded from the calculation of diluted net income or excluded from the calculation of diluted net loss per share because of their anti-dilutive effect are as follows (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Restricted stock units and stock options 74 15,227 Unvested shares of common stock issued upon early exercise of stock options — 19 Total 74 15,246 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 15. SEGMENT INFORMATION The Company is organized into two reportable segments as follows: Platform Consists of revenue generated from sale of digital advertising, content distribution services, subscription and transaction revenue share including Premium Subscriptions, sale of branded buttons on remote controls and licensing arrangements with service operators and TV brands. Player Consists of revenue generated from sale of streaming players, audio products and accessories through retailers and distributors, as well as directly to customers through the Company’s website. Customers accounting for 10% or more of segment revenue are as follows: Three Months Ended March 31, 2021 March 31, 2020 Platform segment revenue Customer H 14 % 13 % Player segment revenue Customer A 10 % 13 % Customer B 23 % 13 % Customer C 39 % 47 % Revenue in international markets |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | 16. SUBSEQUENT EVENT On April 15, 2021, the Company completed the acquisition of Nielsen’s Advanced Video Advertising business, which includes its video automatic content recognition and dynamic ad insertion technologies. The total purchase price for the acquisition was $39.1 million, paid in cash. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020, filed with the SEC on February 26, 2021 (the “Annual Report”). The condensed consolidated balance sheet as of December 31, 2020 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. 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 months ended March 31, 2021 are not necessarily indicative of the operating results to be expected for the full year or any future periods. |
Use of Estimates | Use of Estimates The preparation of the Company’s 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, liabilities, net revenue and expenses. Significant items subject to such estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, variable consideration, determining the stand-alone selling prices of performance obligations, gross versus net revenue recognition, evaluation of customer versus vendor relationships, and other obligations such as sales return reserves and sales incentive programs; the impairment of goodwill and intangible assets; useful lives of tangible and intangible assets; allowances for doubtful accounts; the valuation of deferred income tax assets; and stock-based compensation. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results may differ from the Company’s estimates and assumptions. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements, which include the accounts of Roku, Inc. and its wholly-owned subsidiaries, have been prepared in conformity with U.S. GAAP. All intercompany accounts and transactions have been eliminated in consolidation. |
Reclassification of Prior Year Presentation | Reclassification of Prior Year Presentation Certain prior period amounts within cash flow from operations in the statement of cash flows, have been reclassified to conform to current period presentation. These reclassifications had no effect on net cash provided by operating activities for any period reported. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of March 31, 2021, two financial institutions managed 61% and 21%, respectively, of the Company’s cash and cash equivalents balance. As of December 31, 2020, two financial institutions managed 46% and 26%, respectively, of the Company’s cash and cash equivalents balance. |
Accounts Receivable, Net | Accounts Receivable, net Accounts receivable are typically unsecured and are derived from revenue earned from customers. They are stated at invoice value less estimated allowances for sales returns, sales incentives and doubtful accounts. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses and doubtful accounts. The Company considers historical experience, ongoing promotional activities, historical claim rate and other factors to determine the allowances for sales returns and sales incentives. Allowance for Sales Returns : Allowance for sales returns consists of the following activities (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Beginning balance $ (5,912 ) $ (6,550 ) Charged to revenue (2,526 ) (2,727 ) Utilization of sales return reserve 4,670 4,609 Ending balance $ (3,768 ) $ (4,668 ) Allowance for Sales Incentives : Allowance for sales incentives consists of the following activities (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Beginning balance $ (30,838 ) $ (19,476 ) Charged to revenue (12,618 ) (9,409 ) Utilization of sales incentive reserve 23,320 19,612 Ending balance $ (20,136 ) $ (9,273 ) Allowance for Doubtful Accounts : Allowance for doubtful accounts consists of the following activities (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Balance, beginning of period $ (4,181 ) $ (1,140 ) Impact of adoption of ASU 2016-13 — (1,066 ) Adjusted balance, beginning of period (4,181 ) (2,206 ) Provision for doubtful accounts 54 (3,788 ) Adjustments for recovery and write-off — 1,035 Balance, end of period $ (4,127 ) $ (4,959 ) The Company did not have any customer that accounted for more than 10% of its accounts receivable, net balance as of March 31, 2021. Customer H accounted for 11% of the accounts receivable, net balance as of December 31, 2020. |
Recently Adopted Accounting Standards | Recently On January 1, 2021, the Company adopted the guidance issued in Accounting Standards Updates (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting that reference London Interbank Offered Rate (“LIBOR”) that is expected to be discontinued, subject to meeting certain criteria. The guidance is effective as of March 12, 2020 through December 31, 2022. The Company made a policy election in the second quarter of 2020 to elect a different reference rate for the Credit Agreement (as defined below) when LIBOR is discontinued. |
Fair Value | The Company’s financial assets measured at fair value are as follows (in thousands): As of March 31, 2021 As of December 31, 2020 Fair Value Level 1 Fair Value Level 1 Assets: Cash and cash equivalents: Cash $ 2,005,720 $ 2,005,720 $ 1,021,022 $ 1,021,022 Money market funds 71,794 71,794 71,793 71,793 Restricted cash 83 83 434 434 Total assets measured and recorded at fair value $ 2,077,597 $ 2,077,597 $ 1,093,249 $ 1,093,249 Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal market (or most advantageous market, in the absence of a principal market) for the asset or liability in an orderly transaction between market participants at the measurement date. Further, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs in measuring fair value and utilizes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows: 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 90 days or less at the date of purchase to be cash equivalents. The Company measured money market funds of $71.8 million as cash equivalents as of March 31, 2021 and December 31, 2020, respectively, using Level 1 inputs. 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 did not have Level 2 instruments on March 31, 2021 and December 31, 2020. 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 did not have Level 3 instruments on March 31, 2021 and December 31, 2020. Assets and liabilities that are measured at fair value on a non-recurring basis Non-financial assets such as goodwill, intangible assets, property, plant, and equipment, operating lease right-of-use (“ROU”) assets and licensed content assets are evaluated for impairment and adjusted to fair value using Level 3 inputs, only when impairment is recognized. There were no indicators of impairment that required a fair value analysis during the three months ended March 31, 2021. The impairments for operating right-of-use assets recorded by the Company for the year ended December 31, 2020 were not material. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Sales Returns | Allowance for sales returns consists of the following activities (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Beginning balance $ (5,912 ) $ (6,550 ) Charged to revenue (2,526 ) (2,727 ) Utilization of sales return reserve 4,670 4,609 Ending balance $ (3,768 ) $ (4,668 ) |
Schedule of Allowance for Sales Incentives | Allowance for sales incentives consists of the following activities (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Beginning balance $ (30,838 ) $ (19,476 ) Charged to revenue (12,618 ) (9,409 ) Utilization of sales incentive reserve 23,320 19,612 Ending balance $ (20,136 ) $ (9,273 ) |
Schedule of Allowance for Doubtful Accounts | Allowance for doubtful accounts consists of the following activities (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Balance, beginning of period $ (4,181 ) $ (1,140 ) Impact of adoption of ASU 2016-13 — (1,066 ) Adjusted balance, beginning of period (4,181 ) (2,206 ) Provision for doubtful accounts 54 (3,788 ) Adjustments for recovery and write-off — 1,035 Balance, end of period $ (4,127 ) $ (4,959 ) |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Contract Balances | The contract balances include the following (in thousands): As of March 31, 2021 December 31, 2020 Accounts receivable, net $ 496,173 $ 523,852 Contract assets (included in Prepaid expenses and other current assets) 28,684 7,431 Deferred revenue, current portion 48,121 55,465 Deferred revenue, non-current portion 22,618 21,283 Total deferred revenue $ 70,739 $ 76,748 |
Business Combination (Tables)
Business Combination (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Allocation of Purchase Consideration to Tangible and Intangible Assets Acquired and Liabilities Assumed | The preliminary allocation of the purchase consideration to tangible and intangible assets acquired and liabilities assumed is based on estimated fair values and is as follows (in thousands): Assets acquired Fair Values Cash and cash equivalents $ 7 Accounts receivable 4,875 Prepaid and other current assets 7,310 Property and equipment, net 307 Intangible assets: Tradename 20,000 Customer relationships 700 Goodwill 47,626 Operating lease right-of-use assets 5,498 Other long-term assets 23,487 Total assets acquired 109,810 Liabilities assumed Accounts payable and accrued liabilities (2,747 ) Deferred revenue, current (4,146 ) Operating lease liabilities (4,262 ) Deferred revenue, non-current (816 ) Other long-term liabilities (28 ) Total liabilities assumed (11,999 ) Total purchase consideration $ 97,811 |
Summary of Valuation of Intangible Assets Acquired | The valuation of the intangible assets acquired from This Old House along with their estimated useful lives, is as follows (in thousands): Estimated Fair Value Estimated Useful Lives (in years) Tradename $ 20,000 10 Customer relationships 700 4 Estimated fair value of acquired intangible assets $ 20,700 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Value of Goodwill | The following table reflects the carrying value of goodwill (in thousands): Carrying Value Balance as of December 31, 2020 $ 73,058 Additions: This Old House acquisition 47,626 Other immaterial acquisitions 5,000 Balance as of March 31, 2021 $ 125,684 |
Summary of Intangible Assets | The following table is the summary of Company’s intangible assets (in thousands): As of March 31, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Useful Lives (in years) Developed technology $ 62,367 $ (16,082 ) $ 46,285 5.9 Customer relationships 14,100 (4,752 ) 9,348 4.0 Tradename 20,400 (466 ) 19,934 9.8 Patents 4,076 (388 ) 3,688 14.0 Intangible assets $ 100,943 $ (21,688 ) $ 79,255 As of December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Useful Lives (in years) Developed technology $ 62,367 $ (13,439 ) $ 48,928 5.9 Customer relationships 13,400 (3,908 ) 9,492 4.0 Tradename 400 (400 ) — 0.5 Patents 4,076 (315 ) 3,761 14.0 Intangible assets $ 80,243 $ (18,062 ) $ 62,181 |
Schedule of Estimated Future Amortization Expense for Intangible Asset | The estimated future amortization expense for intangible asset for the next five years and thereafter is as follows (in thousands): Year Ending December 31, 2021 (remaining 9 months) $ 12,153 2022 15,896 2023 15,338 2024 12,546 2025 10,794 Thereafter 12,528 Total $ 79,255 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net consists of the following (in thousands): As of March 31, 2021 December 31, 2020 Gross accounts receivable $ 524,429 $ 565,088 Allowance for sales returns (3,768 ) (5,912 ) Allowance for sales incentives (20,136 ) (30,838 ) Allowance for doubtful accounts (4,127 ) (4,181 ) Other allowances (225 ) (305 ) Total allowances (28,256 ) (41,236 ) Total Accounts Receivable, net of allowances $ 496,173 $ 523,852 |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following (in thousands): As of March 31, 2021 December 31, 2020 Computers and equipment $ 32,279 $ 30,859 Leasehold improvements 147,790 144,013 Website and internal-use software 7,319 6,744 Office equipment and furniture 19,671 19,661 Total property and equipment 207,059 201,277 Accumulated depreciation and amortization (52,058 ) (46,080 ) Property and Equipment, net $ 155,001 $ 155,197 |
Schedule of Accrued Liabilities | Accrued liabilities consists of the following (in thousands): As of March 31, 2021 December 31, 2020 Payments due to content publishers 144,138 106,576 Accrued cost of revenue 102,285 98,285 Marketing, retail and merchandising costs 44,023 43,645 Operating lease liability, current 32,715 35,647 Content liability, current 89,816 6,165 Other accrued expenses 64,425 57,350 Total Accrued Liabilities $ 477,402 $ 347,668 |
Schedule of Deferred Revenue | Deferred revenue consists of the following (in thousands): As of March 31, 2021 December 31, 2020 Platform, current $ 21,516 $ 27,587 Player, current 26,605 27,878 Total deferred revenue, current 48,121 55,465 Platform, non-current 10,906 9,909 Player, non-current 11,712 11,374 Total deferred revenue, non-current 22,618 21,283 Total Deferred Revenue $ 70,739 $ 76,748 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Measured at Fair Value | The Company’s financial assets measured at fair value are as follows (in thousands): As of March 31, 2021 As of December 31, 2020 Fair Value Level 1 Fair Value Level 1 Assets: Cash and cash equivalents: Cash $ 2,005,720 $ 2,005,720 $ 1,021,022 $ 1,021,022 Money market funds 71,794 71,794 71,793 71,793 Restricted cash 83 83 434 434 Total assets measured and recorded at fair value $ 2,077,597 $ 2,077,597 $ 1,093,249 $ 1,093,249 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense are as follows (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Operating lease cost (1) $ 10,266 $ 12,217 Variable lease cost 2,952 2,198 Net operating lease cost $ 13,218 $ 14,415 (1) Operating lease cost is presented net of sublease income. The Company had no sublease income for the three months ended March 31, 2021. Sublease income for the three months ended March 31, 2020 was not material. |
Schedule of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to leases is as follows (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 16,224 $ 9,451 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 5,498 $ (795 ) |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate As of March 31, 2021 December 31, 2020 Operating lease right-of-use assets $ 265,237 $ 266,197 Included in accounts payable and accrued liabilities: Operating lease liability, current 32,715 35,647 Operating lease liability, non-current 303,159 307,936 Total operating lease liability $ 335,874 $ 343,583 Weighted Average Remaining Lease Term: Operating leases (in years) 8.81 9.05 Weighted Average Discount Rate: Operating leases 4.59 % 4.60 % |
Schedule of Future Lease Payments under Operating Leases | Future lease payments under operating leases as of March 31, 2021 are as follows (in thousands): Year Ending December 31, Operating Leases 2021 (remaining 9 months) $ 35,113 2022 48,126 2023 48,287 2024 47,238 2025 46,910 Thereafter 204,271 Total future lease payments 429,945 Less: imputed interest (78,085 ) Less: expected tenant improvement allowance (15,986 ) Total $ 335,874 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The Company’s outstanding debt as of March 31, 2021 and December 31, 2020 is as follows (in thousands): As of March 31, 2021 December 31, 2020 Amount Effective Interest Rate Amount Effective Interest Rate Term Loan A Facility $ 93,750 2.02 % $ 95,000 2.03 % Less: Debt issuance costs (227 ) (258 ) Net carrying amount of debt $ 93,523 $ 94,742 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule of Reserved Shares of Common Stock for Issuance | At March 31, 2021, the Company had reserved shares of common stock for issuance as follows (in thousands): As of March 31, 2021 Common stock awards granted under equity incentive plans 11,457 Common stock awards available for issuance under the 2017 Employee Stock Purchase Plan * 5,089 Common stock awards available for issuance under the 2017 Equity Incentive Plan 27,847 Total reserved shares of common stock 44,393 * The Company has not issued any common stock pursuant to the 2017 Employee Stock Purchase Plan. |
Summary of Restricted Stock Unit Activity | Restricted stock unit activity for the three months ended March 31, 2021 is as follows (in thousands, except per share data): Number of Shares Weighted Average Grant Date Fair Value Per Share Balance, December 31, 2020 4,355 $ 92.91 Awarded 97 384.11 Released (387 ) 71.77 Forfeited (71 ) 112.86 Balance, March 31, 2021 – outstanding 3,994 $ 101.66 |
Schedule of Stock Option Activity | The following table summarizes the Company’s stock option activities under the 2008 Plan and 2017 Plan (in thousands, except 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, 2020 8,733 $ 26.19 5.7 — Granted 10 413.11 — $ 154.43 Exercised (1,276 ) 5.25 — — Forfeited and expired (4 ) 7.57 — — Balance, March 31, 2021 - outstanding 7,463 $ 30.31 5.8 — $ 2,206,030 Options exercisable at March 31, 2021 5,311 $ 9.47 4.9 — $ 1,680,001 |
Schedule of Stock-based Compensation Expense | The following table shows total stock-based compensation expense for the three months ended March 31, 2021 and 2020 (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Cost of platform revenue $ 198 $ 211 Cost of player revenue 415 338 Research and development 16,554 13,255 Sales and marketing 13,363 10,057 General and administrative 10,007 6,544 Total stock-based compensation $ 40,537 $ 30,405 |
Summary of Assumptions Used to Value Stock Options 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 March 31, 2021 March 31, 2020 Expected term (in years) 5.0 - 6.0 5.0 Risk-free interest rate 0.36 - 0.80% 0.88 - 1.67% Expected volatility 38.3 - 39.0% 36.0 % Dividend rate — — |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Basic and Diluted Net 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 March 31, 2021 March 31, 2020 Numerator: Net income (loss) $ 76,296 $ (54,612 ) Denominator: Weighted-average common shares outstanding — basic 129,674 120,180 Net income (loss) per share — basic $ 0.59 $ (0.45 ) Weighted-average common shares outstanding — basic 129,674 120,180 Common stock equivalents 10,654 — Weighted-average common shares outstanding — diluted 140,328 120,180 Net income (loss) per share — diluted $ 0.54 $ (0.45 ) |
Schedule of Antidilutive Securities Excluded from Calculation of Diluted Net Income or Net Loss Per Share | Common shares excluded from the calculation of diluted net income or excluded from the calculation of diluted net loss per share because of their anti-dilutive effect are as follows (in thousands): Three Months Ended March 31, 2021 March 31, 2020 Restricted stock units and stock options 74 15,227 Unvested shares of common stock issued upon early exercise of stock options — 19 Total 74 15,246 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Customer Accounting for 10% or More of Segment Revenue | Customers accounting for 10% or more of segment revenue are as follows: Three Months Ended March 31, 2021 March 31, 2020 Platform segment revenue Customer H 14 % 13 % Player segment revenue Customer A 10 % 13 % Customer B 23 % 13 % Customer C 39 % 47 % |
The Company - Additional Inform
The Company - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Conversion date | Feb. 1, 2008 |
Number of reportable segments operates | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021FinancialInstitutionCustomer | Dec. 31, 2020FinancialInstitution | |
Accounting Standards Update 2019-12 | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Change in accounting principle, accounting standards update, adopted [true false] | true | |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | |
Accounting Standards Update 2020-04 | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Change in accounting principle, accounting standards update, adopted [true false] | true | |
Change in accounting principle, accounting standards update, adoption date | Mar. 12, 2020 | |
Customer Concentration Risk | Net Accounts Receivable | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of customers accounted for 10% or more | Customer | 0 | |
Customer 1 | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of financial institutions which manage cash balances | 2 | 2 |
Customer 1 | Cash and Cash Equivalents | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration risk percentage | 61.00% | 46.00% |
Customer 2 | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of financial institutions which manage cash balances | 2 | 2 |
Customer 2 | Cash and Cash Equivalents | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration risk percentage | 21.00% | 26.00% |
Customer H | Customer Concentration Risk | Net Accounts Receivable | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration risk percentage | 11.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Allowance for Sales Returns (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning balance | $ (41,236) | |
Ending balance | (28,256) | |
Allowance for Sales Returns | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning balance | (5,912) | $ (6,550) |
Charged to revenue | (2,526) | (2,727) |
Utilization of sales return reserve | 4,670 | 4,609 |
Ending balance | $ (3,768) | $ (4,668) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Allowance for Sales Incentives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning balance | $ (41,236) | |
Ending balance | (28,256) | |
Allowance for Sales Incentives | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning balance | (30,838) | $ (19,476) |
Charged to revenue | (12,618) | (9,409) |
Utilization of sales incentive reserve | 23,320 | 19,612 |
Ending balance | $ (20,136) | $ (9,273) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning balance | $ (41,236) | |
Ending balance | (28,256) | |
Allowance for Doubtful Accounts | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning balance | (4,181) | $ (1,140) |
Adjusted balance, beginning of period | (4,181) | (2,206) |
Charged to revenue | 54 | (3,788) |
Adjustments for recovery and write-off | 1,035 | |
Ending balance | $ (4,127) | (4,959) |
Allowance for Doubtful Accounts | Accounting Standards Update 2016-13 | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Impact of adoption of ASU 2016-13 | $ (1,066) |
Revenue - Additional Informatio
Revenue - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | |
Disaggregation Of Revenue [Line Items] | ||
Number of reportable segment | segment | 2 | |
Contract with customer assets increase (decrease) | $ 21.3 | |
Increase (decrease) in deferred revenue | (6) | |
Deferred revenue recognized | 26.2 | $ 20.5 |
Estimated contracted revenue | $ 900.8 | |
Revenue, remaining performance obligation, expected timing of satisfaction, Description | Revenue allocated to remaining performance obligations represents estimated contracted revenue that has not yet been recognized which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Estimated contracted revenue was $900.8 million as of March 31, 2021 of which we expect to recognize approximately 47% over the next 12 months and the remainder thereafter. | |
Revenue remaining performance obligation percentage of revenue expected to be recognized | 47.00% | |
Revenue recognized from performance obligation satisfied in previous period | $ 29 | $ 2.7 |
Customer Concentration Risk | Net Revenue | Customer H | ||
Disaggregation Of Revenue [Line Items] | ||
Concentration risk | 11.00% | |
Customer Concentration Risk | Net Revenue | Customer C | ||
Disaggregation Of Revenue [Line Items] | ||
Concentration risk | 14.00% |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Schedule Of Contract Balances [Line Items] | ||
Accounts receivable, net | $ 496,173 | $ 523,852 |
Deferred revenue, current portion | 48,121 | 55,465 |
Deferred revenue, non-current portion | 22,618 | 21,283 |
Total deferred revenue | 70,739 | 76,748 |
Prepaid Expenses and Other Current Assets | ||
Schedule Of Contract Balances [Line Items] | ||
Contract assets (included in Prepaid expenses and other current assets) | $ 28,684 | $ 7,431 |
Business Combination - Addition
Business Combination - Additional Information (Details) $ in Millions | Mar. 19, 2021USD ($) |
Other Long-term Assets | |
Business Acquisition [Line Items] | |
Content assets acquired | $ 22.5 |
Maximum | |
Business Acquisition [Line Items] | |
Business acquisition measurement period | 1 year |
TOH Intermediate Holdings, LLC | |
Business Acquisition [Line Items] | |
Business combination, date of merger agreement | Mar. 19, 2021 |
Purchase consideration | $ 97.8 |
TOH Intermediate Holdings, LLC | General and Administrative Expenses | |
Business Acquisition [Line Items] | |
Acquisition related cost | $ 2.2 |
Business Combination - Schedule
Business Combination - Schedule of Preliminary Allocation of Purchase Consideration to Tangible and Intangible Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 19, 2021 | Dec. 31, 2020 |
Assets acquired | |||
Goodwill | $ 125,684 | $ 73,058 | |
TOH Intermediate Holdings, LLC | |||
Assets acquired | |||
Cash and cash equivalents | $ 7 | ||
Accounts receivable | 4,875 | ||
Prepaid and other current assets | 7,310 | ||
Property and equipment, net | 307 | ||
Intangible assets | 20,700 | ||
Goodwill | 47,626 | ||
Operating lease right-of-use assets | 5,498 | ||
Other long-term assets | 23,487 | ||
Total assets acquired | 109,810 | ||
Liabilities assumed | |||
Accounts payable and accrued liabilities | (2,747) | ||
Deferred revenue, current | (4,146) | ||
Operating lease liabilities | (4,262) | ||
Deferred revenue, non-current | (816) | ||
Other long-term liabilities | (28) | ||
Total liabilities assumed | (11,999) | ||
Total purchase consideration | 97,811 | ||
Customer Relationships | TOH Intermediate Holdings, LLC | |||
Assets acquired | |||
Intangible assets | 700 | ||
Tradename | TOH Intermediate Holdings, LLC | |||
Assets acquired | |||
Intangible assets | $ 20,000 |
Business Combination - Summary
Business Combination - Summary of Valuation of Intangible Assets Acquired (Details) - TOH Intermediate Holdings, LLC $ in Thousands | Mar. 19, 2021USD ($) |
Business Acquisition [Line Items] | |
Estimated Fair Value | $ 20,700 |
Customer Relationships | |
Business Acquisition [Line Items] | |
Estimated Fair Value | $ 700 |
Estimated Useful Lives (in years) | 4 years |
Tradename | |
Business Acquisition [Line Items] | |
Estimated Fair Value | $ 20,000 |
Estimated Useful Lives (in years) | 10 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Carrying Value of Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Line Items] | |
Beginning Balance | $ 73,058 |
Ending Balance | 125,684 |
This Old House Acquisition | |
Goodwill [Line Items] | |
Acquisitions | 47,626 |
Other Immaterial Acquisitions | |
Goodwill [Line Items] | |
Acquisitions | $ 5,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 100,943 | $ 80,243 |
Accumulated Amortization | (21,688) | (18,062) |
Net Carrying Amount | 79,255 | 62,181 |
Developed Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 62,367 | 62,367 |
Accumulated Amortization | (16,082) | (13,439) |
Net Carrying Amount | $ 46,285 | $ 48,928 |
Weighted-Average Useful Lives (in years) | 5 years 10 months 24 days | 5 years 10 months 24 days |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 14,100 | $ 13,400 |
Accumulated Amortization | (4,752) | (3,908) |
Net Carrying Amount | $ 9,348 | $ 9,492 |
Weighted-Average Useful Lives (in years) | 4 years | 4 years |
Tradename | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 20,400 | $ 400 |
Accumulated Amortization | (466) | $ (400) |
Net Carrying Amount | $ 19,934 | |
Weighted-Average Useful Lives (in years) | 9 years 9 months 18 days | 6 months |
Patents | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,076 | $ 4,076 |
Accumulated Amortization | (388) | (315) |
Net Carrying Amount | $ 3,688 | $ 3,761 |
Weighted-Average Useful Lives (in years) | 14 years | 14 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 3.6 | $ 3.8 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense for Intangible Asset (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2021 (remaining 9 months) | $ 12,153 | |
2022 | 15,896 | |
2023 | 15,338 | |
2024 | 12,546 | |
2025 | 10,794 | |
Thereafter | 12,528 | |
Net Carrying Amount | $ 79,255 | $ 62,181 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Gross accounts receivable | $ 524,429 | $ 565,088 | ||
Allowance for accounts receivable | (28,256) | (41,236) | ||
Total Accounts Receivable, net of allowances | 496,173 | 523,852 | ||
Allowance for Sales Returns | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Allowance for accounts receivable | (3,768) | (5,912) | $ (4,668) | $ (6,550) |
Allowance for Sales Incentives | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Allowance for accounts receivable | (20,136) | (30,838) | (9,273) | (19,476) |
Allowance for Doubtful Accounts | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Allowance for accounts receivable | (4,127) | (4,181) | $ (4,959) | $ (1,140) |
Other Allowances | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Allowance for accounts receivable | $ (225) | $ (305) |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 207,059 | $ 201,277 |
Accumulated depreciation and amortization | (52,058) | (46,080) |
Property and Equipment, net | 155,001 | 155,197 |
Computer and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 32,279 | 30,859 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 147,790 | 144,013 |
Website and Internal-Use Software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 7,319 | 6,744 |
Office Equipment and Furniture | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 19,671 | $ 19,661 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Balance Sheet Related Disclosures [Abstract] | ||
Depreciation and amortization | $ 6 | $ 4.7 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities Current [Abstract] | ||
Payments due to content publishers | $ 144,138 | $ 106,576 |
Accrued cost of revenue | 102,285 | 98,285 |
Marketing, retail and merchandising costs | 44,023 | 43,645 |
Operating lease liability, current | 32,715 | 35,647 |
Content liability, current | 89,816 | 6,165 |
Other accrued expenses | 64,425 | 57,350 |
Total Accrued Liabilities | $ 477,402 | $ 347,668 |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current | $ 48,121 | $ 55,465 |
Total deferred revenue, non-current | 22,618 | 21,283 |
Total deferred revenue | 70,739 | 76,748 |
Platform | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current | 21,516 | 27,587 |
Total deferred revenue, non-current | 10,906 | 9,909 |
Player | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current | 26,605 | 27,878 |
Total deferred revenue, non-current | $ 11,712 | $ 11,374 |
Content Assets - Additional Inf
Content Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Content Assets [Line Items] | |||
Content assets | $ 104,600 | $ 7,900 | |
Amortization of content assets | 9,818 | $ 6,123 | |
This Old House Acquisition | |||
Content Assets [Line Items] | |||
Content assets acquired | $ 96,700 |
Fair Value - Schedule of Financ
Fair Value - Schedule of Financial Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Assets: | |||
Restricted cash | $ 83 | $ 434 | $ 1,539 |
Total assets measured and recorded at fair value | 2,077,597 | 1,093,249 | |
Level 1 | |||
Assets: | |||
Restricted cash | 83 | 434 | |
Total assets measured and recorded at fair value | 2,077,597 | 1,093,249 | |
Cash | |||
Assets: | |||
Cash and cash equivalents | 2,005,720 | 1,021,022 | |
Cash | Level 1 | |||
Assets: | |||
Cash and cash equivalents | 2,005,720 | 1,021,022 | |
Money Market Fund | |||
Assets: | |||
Cash and cash equivalents | 71,794 | 71,793 | |
Money Market Fund | Level 1 | |||
Assets: | |||
Cash and cash equivalents | $ 71,794 | $ 71,793 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Money Market Fund | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 71.8 | $ 71.8 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Leases [Line Items] | |
Lessee, operating lease, existence of option to extend | true |
Lessee, operating lease, existence of option to terminate | true |
Commitment relating to operating lease, that have not yet commenced | $ 42.4 |
Minimum | |
Leases [Line Items] | |
Remaining lease term, operating lease | 2 years |
Operating leases that have not yet commenced, lease terms | 2 years |
Maximum | |
Leases [Line Items] | |
Remaining lease term, operating lease | 10 years |
Operating leases that have not yet commenced, lease terms | 11 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Leases [Abstract] | |||
Operating lease cost | [1] | $ 10,266 | $ 12,217 |
Variable lease cost | 2,952 | 2,198 | |
Net operating lease cost | $ 13,218 | $ 14,415 | |
[1] | Operating lease cost is presented net of sublease income. The Company had no sublease income for the three months ended March 31, 2021. Sublease income for the three months ended March 31, 2020 was not material. |
Leases - Schedule of Componen_2
Leases - Schedule of Components of Lease Expense (Parenthetical) (Details) | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Leases [Abstract] | |
Sublease income | $ 0 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflows from operating leases | $ 16,224 | $ 9,451 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 5,498 | $ (795) |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 265,237 | $ 266,197 |
Operating lease liability, current | $ 32,715 | $ 35,647 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued liabilities | Accrued liabilities |
Operating lease liability, non-current | $ 303,159 | $ 307,936 |
Total operating lease liability | $ 335,874 | $ 343,583 |
Weighted Average Remaining Lease Term: | ||
Operating leases (in years) | 8 years 9 months 21 days | 9 years 18 days |
Weighted Average Discount Rate: | ||
Operating leases | 4.59% | 4.60% |
Leases - Schedule of Future Lea
Leases - Schedule of Future Lease Payments under Operating Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 (remaining 9 months) | $ 35,113 | |
2022 | 48,126 | |
2023 | 48,287 | |
2024 | 47,238 | |
2025 | 46,910 | |
Thereafter | 204,271 | |
Total future lease payments | 429,945 | |
Less: imputed interest | (78,085) | |
Less: expected tenant improvement allowance | (15,986) | |
Total | $ 335,874 | $ 343,583 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - Term Loan A Facility - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Principal amount | $ 93,750 | $ 95,000 |
Less: Debt issuance costs | (227) | (258) |
Net carrying amount of debt | $ 93,523 | $ 94,742 |
Effective Interest Rate | 2.02% | 2.03% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Mar. 24, 2020 | Nov. 18, 2019 | May 03, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||||
Letters of credit outstanding | $ 30,800,000 | $ 30,900,000 | ||||
Morgan Stanley Senior Funding, Inc | Credit Agreement | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Adjusted quick ratio | 1.00% | |||||
Term Loan A Facility | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | $ 500,000 | $ 600,000 | ||||
Term Loan A Facility | Morgan Stanley Senior Funding, Inc | Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument term, years | 4 years | |||||
Maximum borrowing capacity | $ 100,000,000 | |||||
Amount borrowed under debt facility | $ 100,000,000 | |||||
Debt instrument, amortization description | Loans under the Term Loan A Facility amortize in equal quarterly installments beginning on March 31, 2020, in an aggregate annual amount equal to (i) on or prior to December 31, 2021, 1.25% of the drawn principal amount of the Term Loan Facility or $1.25 million and (ii) thereafter, 2.50% of the drawn principal amount of the Term Loan Facility or $2.5 million, with the remaining balance payable on the maturity date of the Term Loan A Facility in February 2023. | |||||
Debt instrument maturity month and year | 2023-02 | |||||
Term Loan A Facility | Morgan Stanley Senior Funding, Inc | Credit Agreement | On or Prior to December 31, 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of amortization on drawn principal amount | 1.25% | |||||
Amortization, aggregate principal amount | $ 1,250,000 | |||||
Term Loan A Facility | Morgan Stanley Senior Funding, Inc | Credit Agreement | Thereafter December 31, 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of amortization on drawn principal amount | 2.50% | |||||
Amortization, aggregate principal amount | $ 2,500,000 | |||||
Term Loan A Facility | Morgan Stanley Senior Funding, Inc | Credit Agreement | Adjusted One-Month LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, applicable margin on variable rate | 1.75% | |||||
Revolving Credit Facility | Morgan Stanley Senior Funding, Inc | Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument term, years | 4 years | |||||
Maximum borrowing capacity | $ 100,000,000 | |||||
Amount borrowed under debt facility | $ 69,300,000 | |||||
Credit facility expiration and maturity month and year | 2023-02 | |||||
Letters of credit outstanding | $ 30,800,000 | $ 30,800,000 | ||||
Revolving Credit Facility | Morgan Stanley Senior Funding, Inc | Credit Agreement | Adjusted One-Month LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, applicable margin on variable rate | 1.75% | |||||
Uncommitted Incremental Facility | Morgan Stanley Senior Funding, Inc | Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 50,000,000 | |||||
Debt to company's EBITDA, description | 1.0x of the Company’s EBITDA for the most recently completed four fiscal quarter period | |||||
Uncommitted Incremental Facility | Morgan Stanley Senior Funding, Inc | Credit Agreement | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Secured leverage ratio | 1.50% |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock - Additional Information (Details) - shares | Dec. 31, 2020 | Mar. 31, 2020 |
Equity [Abstract] | ||
Preferred stock, shares authorized | 10,000,000 | |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021Class | |
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 |
Stockholders' Equity - At-the-M
Stockholders' Equity - At-the-Market Offering - Additional Information (Details) - Class A Common Stock - At-the-Market Offerings - USD ($) $ / shares in Thousands, shares in Millions, $ in Millions | Mar. 02, 2021 | Mar. 31, 2021 |
Class Of Stock [Line Items] | ||
Aggregate shares of common stock, sold | 1,000 | |
Gross proceeds from issuance of common stock | $ 1,000,000 | $ 2,600 |
Average selling price per share | $ 379,260 | |
Stock Issuance Costs | $ 10.4 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Reserved Shares of Common Stock for Issuance (Details) shares in Thousands | Mar. 31, 2021shares | |
Class Of Stock [Line Items] | ||
Total reserved shares of common stock | 44,393 | |
Equity Incentive Plan | ||
Class Of Stock [Line Items] | ||
Common stock awards granted under equity incentive plans | 11,457 | |
2017 Employee Stock Purchase Plan | ||
Class Of Stock [Line Items] | ||
Common stock awards available for issuance | 5,089 | [1] |
2017 Plan | ||
Class Of Stock [Line Items] | ||
Common stock awards available for issuance | 27,847 | |
[1] | The Company has not issued any common stock pursuant to the 2017 Employee Stock Purchase Plan. |
Stockholders' Equity - Equity I
Stockholders' Equity - Equity Incentive Plans - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021Plan | |
Class Of Stock [Line Items] | |
Number of equity incentive plans | 2 |
2008 Plan and 2017 Plan | Employee Stock Option | |
Class Of Stock [Line Items] | |
Percentage of voting rights | 10.00% |
2008 Plan and 2017 Plan | Employee Stock Option | Minimum | 10% Shareholder | |
Class Of Stock [Line Items] | |
Stock option fair market value at the date of grant, percent | 110.00% |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units shares in Thousands | 3 Months Ended |
Mar. 31, 2021$ / 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 | 4,355 |
Number of Shares, Awarded | shares | 97 |
Number of Shares, Released | shares | (387) |
Number of Shares, Forfeited | shares | (71) |
Ending balance, Number of Shares outstanding | shares | 3,994 |
Weighted Average Grant Date Fair Value Per Share, Beginning balance | $ / shares | $ 92.91 |
Weighted Average Grant Date Fair Value Per Share, Awarded | $ / shares | 384.11 |
Weighted Average Grant Date Fair Value Per Share, Released | $ / shares | 71.77 |
Weighted Average Grant Date Fair Value Per Share, Forfeited | $ / shares | 112.86 |
Weighted Average Grant Date Fair Value Per Share, Ending balance | $ / shares | $ 101.66 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Units - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Expected weighted average period to recognize unrecognized stock compensation expense | 1 year 9 months 14 days | |
Restricted Stock Units | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Grant-date fair value of restricted stock units granted | $ 37.2 | $ 53.6 |
Grant-date fair value of restricted stock units vested | 27.8 | $ 17.1 |
Unrecognized stock compensation expense | $ 330.7 | |
Expected weighted average period to recognize unrecognized stock compensation expense | 2 years 1 month 9 days |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Granted, Weighted Average Grant Date Fair Value Per Share | $ 154.43 | $ 42.17 | |
2008 Plan and 2017 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Balance, Number of Shares | 8,733 | ||
Granted, Number of Shares | 10 | ||
Exercised, Number of Shares | (1,276) | ||
Forfeited and expired, Number of Shares | (4) | ||
Balance, Number of Shares | 7,463 | 8,733 | |
Options exercisable at March 31, 2021, Number of Shares | 5,311 | ||
Balance, Weighted Average Exercise Price | $ 26.19 | ||
Granted, Weighted Average Exercise Price | 413.11 | ||
Exercised, Weighted Average Exercise Price | 5.25 | ||
Forfeited and expired, Weighted Average Exercise Price | 7.57 | ||
Balance, Weighted Average Exercise Price | 30.31 | $ 26.19 | |
Options exercisable at March 31, 2021, Weighted Average Exercise Price | $ 9.47 | ||
Balance, Weighted Average Remaining Contractual Life (Years) | 5 years 9 months 18 days | 5 years 8 months 12 days | |
Options exercisable at March 31, 2021, Weighted Average Remaining Contractual Life | 4 years 10 months 25 days | ||
Granted, Weighted Average Grant Date Fair Value Per Share | $ 154.43 | ||
Outstanding, ending balance | $ 2,206,030 | ||
Options exercisable, ending balance | $ 1,680,001 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Option Plan - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Weighted average grant-date fair value of stock options granted | $ 154.43 | $ 42.17 |
Intrinsic value of stock options exercised | $ 494.1 | $ 52.7 |
Unrecognized stock compensation expense | $ 44.8 | |
Expected weighted average period to recognize unrecognized stock compensation expense | 1 year 9 months 14 days |
Stockholders' Equity - Stock-ba
Stockholders' Equity - Stock-based Compensation - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021 | |
Class Of Stock [Line Items] | |
Stock option term | 10 years |
Employee Stock Option | Tranche One | |
Class Of Stock [Line Items] | |
Stock granted to employees vesting rights, percentage | 25.00% |
Employee Stock Option | Tranche Two | |
Class Of Stock [Line Items] | |
Stock granted to employees vesting rights, terms of award | one year and then 1/48th monthly thereafter |
Restricted Stock Units | |
Class Of Stock [Line Items] | |
Share-based compensation arrangement by share-based payment vesting period | 4 years |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 40,537 | $ 30,405 |
Cost of Revenue | Platform | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 198 | 211 |
Cost of Revenue | Player | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 415 | 338 |
Research and Development | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 16,554 | 13,255 |
Sales and Marketing | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | 13,363 | 10,057 |
General and Administrative | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock-based compensation expense | $ 10,007 | $ 6,544 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Assumptions Used to Value Stock-Based Awards Granted (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | ||
Expected term (in years) | 5 years | |
Risk-free interest rate, Minimum | 0.36% | 0.88% |
Risk-free interest rate, Maximum | 0.80% | 1.67% |
Expected volatility | 36.00% | |
Expected volatility, Minimum | 38.30% | |
Expected volatility, Maximum | 39.00% | |
Expected term (in years) | 5 years | |
Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | ||
Expected term (in years) | 5 years | |
Expected term (in years) | 5 years | |
Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | ||
Expected term (in years) | 6 years | |
Expected term (in years) | 6 years |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Commitments And Contingencies [Line Items] | ||
Letters of credit outstanding | $ 30.8 | $ 30.9 |
Letters of credit expiration year | 2030 | |
Estimated maximum amount owed for the remaining term of the lease | $ 35 | |
Manufacturing | ||
Commitments And Contingencies [Line Items] | ||
Purchase commitments for inventory and license | 239.4 | |
License Content | ||
Commitments And Contingencies [Line Items] | ||
Indemnification asset | 81.4 | |
Indemnification liability | 81.4 | |
License Content | Accrued Liabilities | ||
Commitments And Contingencies [Line Items] | ||
Purchase commitments for inventory and license | 89.8 | 6.2 |
License Content | Other Long-Term Liabilities | ||
Commitments And Contingencies [Line Items] | ||
Purchase commitments for inventory and license | 2.2 | $ 1.4 |
Content Publishers | ||
Commitments And Contingencies [Line Items] | ||
Purchase commitments for inventory and license | $ 94.5 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Summary of Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net income (loss) | $ 76,296 | $ (54,612) |
Denominator: | ||
Weighted-average common shares outstanding — basic | 129,674 | 120,180 |
Net income (loss) per share — basic | $ 0.59 | $ (0.45) |
Common stock equivalents | 10,654 | |
Weighted-average common shares outstanding — diluted | 140,328 | 120,180 |
Net income (loss) per share — diluted | $ 0.54 | $ (0.45) |
Net Income (Loss) Per Share -_2
Net Income (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Calculation of Diluted Net Income or Net Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from calculation of diluted net loss per share | 74 | 15,246 |
Restricted Stock Units and Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from calculation of diluted net loss per share | 74 | 15,227 |
Unvested Shares of Common Stock Issued Upon Early Exercise of Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from calculation of diluted net loss per share | 19 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - segment | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 2 | |
Net Revenue | International Market | Geographic Concentration Risk | Maximum | ||
Segment Reporting Information [Line Items] | ||
Concentration risk | 10.00% | 10.00% |
Segment Information - Schedule
Segment Information - Schedule of Customer Accounting for 10% or More of Segment Revenue (Details) - Net Revenue - Customer Concentration Risk | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Customer H | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Concentration risk | 11.00% | |
Customer C | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Concentration risk | 14.00% | |
Platform | Customer H | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Concentration risk | 14.00% | 13.00% |
Player | Customer A | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Concentration risk | 10.00% | 13.00% |
Player | Customer B | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Concentration risk | 23.00% | 13.00% |
Player | Customer C | ||
Entity Wide Revenue Major Customer [Line Items] | ||
Concentration risk | 39.00% | 47.00% |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event - Nielsen’s Advanced Video Advertising $ in Millions | Apr. 15, 2021USD ($) |
Subsequent Event [Line Items] | |
Business acquisition date | Apr. 15, 2021 |
Business acquisition total purchase price | $ 39.1 |