Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Annual Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-37806 | |
Entity Registrant Name | TWILIO INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-2574840 | |
Entity Address, Address Line One | 101 Spear Street | |
Entity Address, Address Line Two | First Floor | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94105 | |
City Area Code | 415 | |
Local Phone Number | 390-2337 | |
Title of 12(b) Security | Class A Common Stock, par value $0.001 per share | |
Trading Symbol | TWLO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001447669 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Common Stock Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 162,370,009 | |
Common Stock Class B | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 10,325,768 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 2,331,774 | $ 933,885 |
Short-term marketable securities | 3,375,284 | 2,105,906 |
Accounts receivable, net | 257,854 | 251,167 |
Prepaid expenses and other current assets | 129,063 | 81,377 |
Total current assets | 6,093,975 | 3,372,335 |
Property and equipment, net | 195,885 | 183,239 |
Operating right-of-use asset | 241,328 | 258,610 |
Intangible assets, net | 951,884 | 966,573 |
Goodwill | 4,635,177 | 4,595,394 |
Other long-term assets | 123,932 | 111,282 |
Total assets | 12,242,181 | 9,487,433 |
Current liabilities: | ||
Accounts payable | 66,511 | 60,042 |
Accrued expenses and other current liabilities | 293,658 | 252,895 |
Deferred revenue and customer deposits | 93,516 | 87,031 |
Operating lease liability, current | 46,239 | 48,338 |
Total current liabilities | 499,924 | 448,306 |
Operating lease liability, noncurrent | 214,456 | 229,905 |
Finance lease liability, noncurrent | 19,933 | 17,856 |
Long-term debt | 1,218,048 | 302,068 |
Other long-term liabilities | 42,624 | 36,633 |
Total liabilities | 1,994,985 | 1,034,768 |
Commitments and contingencies (Note 12) | ||
Stockholders’ equity: | ||
Preferred stock | 0 | 0 |
Class A and Class B common stock | 171 | 164 |
Additional paid-in capital | 11,618,698 | 9,613,246 |
Accumulated other comprehensive income | 4,660 | 9,046 |
Accumulated deficit | (1,376,333) | (1,169,791) |
Total stockholders’ equity | 10,247,196 | 8,452,665 |
Total liabilities and stockholders’ equity | $ 12,242,181 | $ 9,487,433 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Revenue | $ 589,988 | $ 364,868 |
Cost of revenue | 291,684 | 171,333 |
Gross profit | 298,304 | 193,535 |
Operating expenses: | ||
Research and development | 174,800 | 114,339 |
Sales and marketing | 210,590 | 116,722 |
General and administrative | 110,253 | 55,170 |
Total operating expenses | 495,643 | 286,231 |
Loss from operations | (197,339) | (92,696) |
Other expenses, net | (8,313) | (1,118) |
Loss before provision for income taxes | (205,652) | (93,814) |
Provision for income taxes | (890) | (977) |
Net loss attributable to common stockholders | $ (206,542) | $ (94,791) |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (1.24) | $ (0.68) |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (1.24) | $ (0.68) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted (in shares) | 167,160,458 | 139,231,594 |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted (in shares) | 167,160,458 | 139,231,594 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (206,542) | $ (94,791) |
Other comprehensive loss: | ||
Unrealized loss on marketable securities | (4,176) | (9,375) |
Foreign currency translation | (210) | 0 |
Total other comprehensive loss | (4,386) | (9,375) |
Comprehensive loss attributable to common stockholders | $ (210,928) | $ (104,166) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders Equity - USD ($) $ in Thousands | Total | RSAs | Follow-on Public Offering | Common StockCommon Stock Class A | Common StockCommon Stock Class AFollow-on Public Offering | Common StockCommon Stock Class B | Additional Paid-In Capital | Additional Paid-In CapitalFollow-on Public Offering | Accumulated Other Comprehensive Income | Accumulated Deficit |
Balance (in shares) at Dec. 31, 2019 | 126,882,172 | 11,530,627 | ||||||||
Balance at Dec. 31, 2019 | $ 4,279,411 | $ 124 | $ 14 | $ 4,952,999 | $ 5,086 | $ (678,812) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net loss | (94,791) | (94,791) | ||||||||
Exercises of vested stock options (in shares) | 243,029 | 426,001 | ||||||||
Exercises of vested stock options | 8,231 | $ 0 | $ 0 | 8,231 | ||||||
Vesting of restricted stock units (in shares) | 849,763 | 23,107 | ||||||||
Vesting of restricted stock units | 1 | $ 1 | $ 0 | |||||||
Value of equity awards withheld for tax liability (in shares) | (8,726) | (4,692) | ||||||||
Value of equity awards withheld for tax liability | (1,674) | (1,674) | ||||||||
Conversion of shares of Class B common stock into shares of Class A common stock (in shares) | 618,103 | (618,103) | ||||||||
Conversion of shares of Class B common stock into shares of Class A common stock | $ 1 | $ (1) | ||||||||
Donated common stock (in shares) | 22,102 | |||||||||
Donated common stock | 2,701 | 2,701 | ||||||||
Unrealized loss on marketable securities | (9,375) | (9,375) | ||||||||
Foreign currency translation | 0 | |||||||||
Stock-based compensation | 72,021 | 72,021 | ||||||||
Balance (in shares) at Mar. 31, 2020 | 128,606,443 | 11,356,940 | ||||||||
Balance at Mar. 31, 2020 | 4,256,525 | $ 126 | $ 13 | 5,034,278 | (4,289) | (773,603) | ||||
Balance (in shares) at Dec. 31, 2019 | 126,882,172 | 11,530,627 | ||||||||
Balance at Dec. 31, 2019 | 4,279,411 | $ 124 | $ 14 | 4,952,999 | 5,086 | (678,812) | ||||
Balance (in shares) at Dec. 31, 2020 | 153,496,222 | 10,551,302 | ||||||||
Balance at Dec. 31, 2020 | 8,452,665 | $ 151 | $ 13 | 9,613,246 | 9,046 | (1,169,791) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net loss | (206,542) | (206,542) | ||||||||
Exercises of vested stock options (in shares) | 248,008 | 211,371 | ||||||||
Exercises of vested stock options | 11,564 | $ 0 | $ 0 | 11,564 | ||||||
Vesting of restricted stock units (in shares) | 913,966 | 0 | ||||||||
Vesting of restricted stock units | 0 | $ 1 | $ 0 | (1) | ||||||
Value of equity awards withheld for tax liability (in shares) | (6,989) | 0 | ||||||||
Value of equity awards withheld for tax liability | (2,774) | (2,774) | ||||||||
Conversion of shares of Class B common stock into shares of Class A common stock (in shares) | 419,371 | (419,371) | ||||||||
Conversion of shares of Class B common stock into shares of Class A common stock | 0 | $ 0 | $ 0 | |||||||
Equity component from partial settlement of 2023 convertible senior notes (in shares) | 1,158,381 | |||||||||
Equity component from partial settlement of 2023 convertible senior notes | 80,049 | $ 2 | 80,047 | |||||||
Donated common stock (in shares) | 22,102 | |||||||||
Donated common stock | 9,405 | 9,405 | ||||||||
Issuance of common stock in connection with a follow-on public offering, net of underwriter discounts and issuance costs (in shares) | 4,312,500 | |||||||||
Issuance of common stock in connection with a follow-on public offering, net of underwriter discounts | $ 1,766,400 | $ 4 | $ 1,766,396 | |||||||
Costs related to the follow-on public offering | (727) | |||||||||
Issuance of restricted stock awards (in shares) | 24,697 | |||||||||
Unrealized loss on marketable securities | (4,176) | (4,176) | ||||||||
Foreign currency translation | (210) | (210) | ||||||||
Stock-based compensation | 141,542 | 141,542 | ||||||||
Balance (in shares) at Mar. 31, 2021 | 160,588,258 | 10,343,302 | ||||||||
Balance at Mar. 31, 2021 | $ 10,247,196 | $ 158 | $ 13 | $ 11,618,698 | $ 4,660 | $ (1,376,333) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (206,542) | $ (94,791) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 59,592 | 32,239 |
Non-cash reduction to the right-of-use asset | 11,711 | 8,023 |
Net amortization of investment premium and discount | 4,240 | 343 |
Amortization of debt discount and issuance costs | 3,373 | 6,178 |
Stock-based compensation | 137,155 | 69,025 |
Amortization of deferred commissions | 5,630 | 1,981 |
Allowance for credit losses | 1,985 | 4,170 |
Value of donated common stock | 9,405 | 2,701 |
Loss on extinguishment of debt | 7,602 | 0 |
Other adjustments | 3,089 | 1,866 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 5,565 | (23,123) |
Prepaid expenses and other current assets | (29,912) | (8,130) |
Other long-term assets | (15,232) | (5,759) |
Accounts payable | (10,275) | (20,803) |
Accrued expenses and other current liabilities | 28,307 | 44,840 |
Deferred revenue and customer deposits | 3,435 | 589 |
Operating lease liabilities | (12,053) | (7,008) |
Other long-term liabilities | (2,570) | 3,194 |
Net cash provided by operating activities | 4,505 | 15,535 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisitions, net of cash acquired and other related payments | (66,926) | (2,377) |
Purchases of marketable securities and other investments | (1,640,499) | (228,025) |
Proceeds from sales and maturities of marketable securities | 356,824 | 316,992 |
Capitalized software development costs | (10,434) | (8,626) |
Purchases of long-lived and intangible assets | (4,986) | (6,319) |
Net cash (used in) provided by investing activities | (1,366,021) | 71,645 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from a public equity offering | 1,766,400 | 0 |
Payments of costs related to public offerings | (360) | 0 |
Proceeds from issuance of senior notes | 987,500 | 0 |
Payments of debt issuance costs | (130) | 0 |
Principal payments on debt and finance leases | (2,751) | (1,954) |
Proceeds from exercises of stock options and shares issued in ESPP | 11,564 | 8,231 |
Value of equity awards withheld for tax liabilities | (2,774) | (1,674) |
Net cash provided by financing activities | 2,759,449 | 4,603 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (44) | 0 |
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 1,397,889 | 91,783 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 933,885 | 253,735 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period | 2,331,774 | 345,518 |
Supplemental Cash Flow Information [Abstract] | ||
Cash paid for income taxes, net | 1,252 | 257 |
Cash paid for interest | 263 | 198 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Purchases of property, equipment and intangible assets, accrued but not paid | 3,494 | 5,510 |
Purchases of property and equipment through finance leases | 5,266 | 0 |
Value of common stock issued to settle convertible senior notes | 422,716 | 0 |
Stock-based compensation capitalized in software development costs | 4,650 | 3,418 |
Costs related to public debt and equity offerings, accrued but not paid | 2,681 | 0 |
Costs related to proposed investment in Syniverse, accrued but not paid | $ 3,262 | $ 0 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Twilio Inc. (the “Company”) was incorporated in the state of Delaware on March 13, 2008. The Company is the leading cloud communications platform and enables developers to build, scale and operate real-time customer engagement within their software applications via simple-to-use Application Programming Interfaces (“API”). The power, flexibility, and reliability offered by the Company’s software building blocks empower entities of virtually every shape and size to build world-class engagement into their customer experience. The Company’s headquarters are located in San Francisco, California, and the Company has subsidiaries in Australia, Bermuda, Brazil, Canada, Colombia, Czech Republic, Estonia, France, Germany, Hong Kong, India, Ireland, Japan, Mexico, the Netherlands, Serbia, Singapore, Spain, Sweden, the United Kingdom and the United States. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (a) Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“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. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K filed with the SEC on February 26, 2021 (“Annual Report”). The condensed consolidated balance sheet as of December 31, 2020, included herein, was derived from the audited financial statements as of that date, but may not include all disclosures including certain notes required by U.S. GAAP on an annual reporting basis. In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss, stockholders' equity and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year 2021 or any future period. (b) Principles of Consolidation The condensed consolidated financial statements include the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. (c) Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are used for, but not limited to, revenue allowances and sales credit reserves; recoverability of long-lived and intangible assets; capitalization and useful life of the Company’s capitalized internal-use software development costs; fair value of acquired intangible assets and goodwill; accruals and contingencies. Estimates are based on historical experience and on various assumptions that the Company believes are reasonable under current circumstances. However, future events are subject to change and best estimates and judgments may require further adjustments, therefore, actual results could differ materially from those estimates. Management periodically evaluates such estimates and they are adjusted prospectively based upon such periodic evaluation. (d) Concentration of Credit Risk Financial instruments that potentially expose the Company to a concentration of credit risk consist primarily of cash, cash equivalents, marketable securities and accounts receivable. The Company maintains cash, cash equivalents and marketable securities with financial institutions that management believes are financially sound and have minimal credit risk exposure although the balances will exceed insured limits. The Company sells its services to a wide variety of customers. If the financial condition or results of operations of any significant customers deteriorate substantially, operating results could be adversely affected. To reduce credit risk, management performs credit evaluations of the financial condition of significant customers. The Company does not require collateral from its credit customers and maintains reserves for estimated credit losses on customer accounts when considered necessary. Actual credit losses may differ from the Company’s estimates. During the three months ended March 31, 2021 and 2020, no customer organization accounted for more than 10% of the Company’s total revenue. As of March 31, 2021 and December 31, 2020, no customer organization represented more than 10% of the Company’s gross accounts receivable. (e) Significant Accounting Policies There have been no changes to the Company's significant accounting policies as described in its Annual Report. (f) Recently Issued Accounting Guidance, Not yet Adopted In August 2020, the FASB issued ASU 2020-06, “Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40),” which removes certain separation models for convertible debt instruments and convertible preferred stock that require the separation of a convertible debt instrument into a debt component and an equity or derivative component. The ASU also expands disclosure requirements for convertible instruments and simplifies areas of the guidance for diluted earnings-per-share calculations that are impacted by the amendments. The standard is effective for interim and annual periods beginning after December 15, 2021, with early adoption permitted. The Company is evaluating the impact of the adoption of this guidance on its consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Financial Assets The following tables provide the financial assets measured at fair value on a recurring basis: Amortized Gross Gross Fair Value Hierarchy as of Aggregate Level 1 Level 2 Level 3 Financial Assets: (In thousands) Cash and cash equivalents: Money market funds $ 1,867,034 $ — $ — $ 1,867,034 $ — $ — $ 1,867,034 Commercial paper 322,701 — — — 322,701 — 322,701 Total included in cash and cash equivalents 2,189,735 — — 1,867,034 322,701 — 2,189,735 Marketable securities: U.S. Treasury securities 236,651 248 (56) 236,843 — — 236,843 Corporate debt securities and commercial paper 3,134,407 5,582 (1,548) 45,000 3,093,441 — 3,138,441 Total marketable securities 3,371,058 5,830 (1,604) 281,843 3,093,441 — 3,375,284 Total financial assets $ 5,560,793 $ 5,830 $ (1,604) $ 2,148,877 $ 3,416,142 $ — $ 5,565,019 Amortized Gross Gross Fair Value Hierarchy as of Aggregate Level 1 Level 2 Level 3 Financial Assets: (In thousands) Cash and cash equivalents: Money market funds $ 656,749 $ — $ — $ 656,749 $ — $ — $ 656,749 Commercial paper 2,000 — — — 2,000 — 2,000 Total included in cash and cash equivalents 658,749 — — 656,749 2,000 — 658,749 Marketable securities: U.S. Treasury securities 223,247 389 (1) 223,635 — — 223,635 Corporate debt securities and commercial paper 1,874,257 8,149 (135) 50,000 1,832,271 — 1,882,271 Total marketable securities 2,097,504 8,538 (136) 273,635 1,832,271 — 2,105,906 Total financial assets $ 2,756,253 $ 8,538 $ (136) $ 930,384 $ 1,834,271 $ — $ 2,764,655 The Company's primary objective when investing excess cash is preservation of capital, hence the Company's marketable securities primarily consist of U.S. Treasury Securities, high credit quality corporate debt securities and commercial paper. As the Company views its marketable securities as available to support current operations, it has classified all available for sale securities as short-term. As of March 31, 2021 and December 31, 2020, for fixed income securities that were in unrealized loss positions, the Company has determined that (i) it does not have the intent to sell any of these investments, and (ii) it is not more likely than not that it will be required to sell any of these investments before recovery of the entire amortized cost basis. In addition, as of March 31, 2021 and December 31, 2020, the Company anticipates that it will recover the entire amortized cost basis of such fixed income securities before maturity. The Company regularly reviews changes to the rating of its debt securities by rating agencies as well as reasonably monitors the surrounding economic conditions to assess the risk of expected credit losses. As of March 31, 2021, the risk of expected credit losses was not significant. Interest earned on marketable securities was $3.9 million and $8.8 million in the three months ended March 31, 2021 and 2020, respectively. The interest is recorded as other expenses, net, in the accompanying condensed consolidated statements of operations. The following table summarizes the contractual maturities of marketable securities: As of March 31, 2021 As of December 31, 2020 Amortized Aggregate Amortized Aggregate Financial Assets: (In thousands) Less than one year $ 1,322,778 $ 1,325,489 $ 1,126,091 $ 1,128,927 One to three years 2,048,280 2,049,795 971,413 976,979 Total $ 3,371,058 $ 3,375,284 $ 2,097,504 $ 2,105,906 Strategic Investments As of March 31, 2021 and December 31, 2020, the Company held strategic investments with a fair value of $9.3 million in equity securities of privately held companies in which the Company does not have a controlling interest or significant influence. These securities are recorded as other long-term assets in the accompanying condensed consolidated balance sheets. There were no impairments in the three months ended March 31, 2021 and 2020. Financial Liabilities The Company's financial liabilities that are not measured at fair value on a recurring basis consist of its convertible senior notes due 2023 (“Convertible Notes”) and its senior notes due 2029 and 2031 (“2029 Notes” and “2031 Notes,” respectively) that are further described in Note 9. As of March 31, 2021, the fair values of the Convertible Notes, 2029 Notes and 2031 Notes were $1.3 billion, $510.5 million and $512.8 million, respectively. The fair value of the Convertible Notes as of December 31, 2020 was $1.7 billion. The Convertible Notes, 2029 Notes and 2031 Notes are classified as level 2 financial instruments within the fair value hierarchy. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: As of As of March 31, December 31, 2021 2020 (In thousands) Capitalized internal-use software development costs $ 154,117 $ 142,489 Data center equipment (1) 49,627 43,477 Leasehold improvements 70,663 69,756 Office equipment 45,040 35,346 Furniture and fixtures (1) 12,808 12,312 Software 10,218 9,943 Total property and equipment 342,473 313,323 Less: accumulated depreciation and amortization (146,588) (130,084) Total property and equipment, net $ 195,885 $ 183,239 ____________________________________ ( 1 ) Data center equipment and furniture and fixtures contain assets under finance leases. See Note 5 for further detail. Depreciation and amortization expense was $14.4 million and $11.9 million for the three months ended March 31, 2021 and 2020, respectively. |
Right-of-Use Asset and Lease Li
Right-of-Use Asset and Lease Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Right-of-Use Asset and Lease Liabilities | Right-of-Use Asset and Lease Liabilities The Company has entered into various operating lease agreements for office space and data centers and finance lease agreements for data center and office equipment and furniture. As of March 31, 2021, the Company had 24 leased properties with remaining lease terms of 0.1 years to 8.0 years, some of which include options to extend the leases for up to 5.0 years. The components of the lease expense recorded in the accompanying condensed consolidated statements of operations were as follows: Three Months Ended 2021 2020 (In thousands) Operating lease cost $ 14,873 $ 10,424 Finance lease cost: Amortization of assets 2,680 1,904 Interest on lease liabilities 263 198 Short-term lease cost 1,692 1,412 Variable lease cost 2,900 1,296 Total net lease cost $ 22,408 $ 15,234 Supplemental balance sheet information related to leases was as follows: As of As of March 31, December 31, Leases Classification 2021 2020 Assets: (In thousands) Operating lease assets Operating right-of-use asset, net of accumulated amortization (1) $ 241,328 $ 258,610 Finance lease assets Property and equipment, net of accumulated depreciation (2) 28,357 25,771 Total leased assets $ 269,685 $ 284,381 Liabilities: Current Operating Operating lease liability, current $ 46,239 $ 48,338 Finance Finance lease liability, current 9,389 9,062 Noncurrent Operating Operating lease liability, noncurrent 214,456 229,905 Finance Finance lease liability, noncurrent 19,933 17,856 Total lease liabilities $ 290,017 $ 305,161 ____________________________________ (1) Operating lease assets are recorded net of accumulated amortization of $65.2 million and $57.1 million as of March 31, 2021 and December 31, 2020, respectively. (2) Finance lease assets are recorded net of accumulated depreciation of $17.7 million and $15.0 million as of March 31, 2021 and December 31, 2020, respectively. Supplemental cash flow and other information related to leases was as follows: Three Months Ended 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: (In thousands) Operating cash flows from operating leases $ 14,691 $ 9,953 Operating cash flows from finance leases (interest) $ 263 $ 198 Financing cash flows from finance leases $ 2,748 $ 1,881 Weighted average remaining lease term (in years): Operating leases 5.9 5.8 Finance leases 3.4 2.9 Weighted average discount rate: Operating leases 4.8 % 5.7 % Finance leases 3.7 % 5.3 % Maturities of lease liabilities were as follows: As of March 31, 2021 Operating Finance Year Ended December 31, (In thousands) 2021 (remaining nine months) $ 42,698 $ 7,911 2022 57,060 8,987 2023 48,937 8,240 2024 44,373 4,999 2025 32,167 547 Thereafter 75,304 518 Total lease payments 300,539 31,202 Less: imputed interest (39,844) (1,880) Total lease obligations 260,695 29,322 Less: current obligations (46,239) (9,389) Long-term lease obligations $ 214,456 $ 19,933 As of March 31, 2021, the Company had an additional operating lease obligation totaling $11.0 million for a lease that will commence in the first quarter of 2023 with a lease term of 6.2 years. As of March 31, 2021, the Company had no additional finance leases with future commencement dates. |
Right-of-Use Asset and Lease Liabilities | Right-of-Use Asset and Lease Liabilities The Company has entered into various operating lease agreements for office space and data centers and finance lease agreements for data center and office equipment and furniture. As of March 31, 2021, the Company had 24 leased properties with remaining lease terms of 0.1 years to 8.0 years, some of which include options to extend the leases for up to 5.0 years. The components of the lease expense recorded in the accompanying condensed consolidated statements of operations were as follows: Three Months Ended 2021 2020 (In thousands) Operating lease cost $ 14,873 $ 10,424 Finance lease cost: Amortization of assets 2,680 1,904 Interest on lease liabilities 263 198 Short-term lease cost 1,692 1,412 Variable lease cost 2,900 1,296 Total net lease cost $ 22,408 $ 15,234 Supplemental balance sheet information related to leases was as follows: As of As of March 31, December 31, Leases Classification 2021 2020 Assets: (In thousands) Operating lease assets Operating right-of-use asset, net of accumulated amortization (1) $ 241,328 $ 258,610 Finance lease assets Property and equipment, net of accumulated depreciation (2) 28,357 25,771 Total leased assets $ 269,685 $ 284,381 Liabilities: Current Operating Operating lease liability, current $ 46,239 $ 48,338 Finance Finance lease liability, current 9,389 9,062 Noncurrent Operating Operating lease liability, noncurrent 214,456 229,905 Finance Finance lease liability, noncurrent 19,933 17,856 Total lease liabilities $ 290,017 $ 305,161 ____________________________________ (1) Operating lease assets are recorded net of accumulated amortization of $65.2 million and $57.1 million as of March 31, 2021 and December 31, 2020, respectively. (2) Finance lease assets are recorded net of accumulated depreciation of $17.7 million and $15.0 million as of March 31, 2021 and December 31, 2020, respectively. Supplemental cash flow and other information related to leases was as follows: Three Months Ended 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: (In thousands) Operating cash flows from operating leases $ 14,691 $ 9,953 Operating cash flows from finance leases (interest) $ 263 $ 198 Financing cash flows from finance leases $ 2,748 $ 1,881 Weighted average remaining lease term (in years): Operating leases 5.9 5.8 Finance leases 3.4 2.9 Weighted average discount rate: Operating leases 4.8 % 5.7 % Finance leases 3.7 % 5.3 % Maturities of lease liabilities were as follows: As of March 31, 2021 Operating Finance Year Ended December 31, (In thousands) 2021 (remaining nine months) $ 42,698 $ 7,911 2022 57,060 8,987 2023 48,937 8,240 2024 44,373 4,999 2025 32,167 547 Thereafter 75,304 518 Total lease payments 300,539 31,202 Less: imputed interest (39,844) (1,880) Total lease obligations 260,695 29,322 Less: current obligations (46,239) (9,389) Long-term lease obligations $ 214,456 $ 19,933 As of March 31, 2021, the Company had an additional operating lease obligation totaling $11.0 million for a lease that will commence in the first quarter of 2023 with a lease term of 6.2 years. As of March 31, 2021, the Company had no additional finance leases with future commencement dates. |
Business Combinations
Business Combinations | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations On March 12, 2021, the Company acquired ValueFirst Digital Media Private Limited (“ValueFirst”) for a purchase price of $70.2 million paid in cash. ValueFirst is an enterprise communications platform in India. The acquisition was accounted for as a business combination and the preliminary purchase price was allocated to the net tangible and intangible assets as follows: Total (In thousands) Net tangible assets $ 9,756 Intangible assets (1) 30,300 Deferred tax liability (6,179) Goodwill 36,356 Total preliminary purchase price $ 70,233 ____________________________________ (1) Identifiable intangible assets were comprised of the following: Total Estimated (In thousands) (In years) Developed technology $ 6,700 7 Customer relationships 11,200 7 Carrier relationships 7,700 5 Trademark and trade name 4,700 5 Total intangible assets acquired $ 30,300 The acquired entity's results of operations were included in the Company's condensed consolidated financial statements from the date of the acquisition. Pro forma results of operations for this acquisition are not presented as the financial impact to the Company's consolidated financial statements is not material. As of March 31, 2021, the areas not yet finalized due to information that may become available subsequent to the filing of this Quarterly Report on Form 10-Q and may result in changes in the values recorded at March 31, 2021, relate to the purchase price, valuation of acquired intangible assets, contingencies and income and other taxes. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The Goodwill balance as of March 31, 2021 and December 31, 2020, was as follows: Total (In thousands) Balance as of December 31, 2020 $ 4,595,394 Goodwill additions and adjustments 39,783 Balance as of March 31, 2021 $ 4,635,177 Intangible assets Intangible assets consisted of the following: As of Gross Accumulated Net Amortizable intangible assets: (In thousands) Developed technology $ 731,311 $ (139,293) $ 592,018 Customer relationships 390,564 (74,466) 316,098 Supplier relationships 12,071 (3,461) 8,610 Trade names 30,268 (9,252) 21,016 Order backlog 10,000 (4,167) 5,833 Patent 3,503 (409) 3,094 Total amortizable intangible assets 1,177,717 (231,048) 946,669 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,182,932 $ (231,048) $ 951,884 As of Gross Accumulated Net Amortizable intangible assets: (In thousands) Developed technology $ 724,599 $ (113,282) $ 611,317 Customer relationships 379,344 (59,574) 319,770 Supplier relationships 4,356 (3,044) 1,312 Trade name 25,560 (7,921) 17,639 Order backlog 10,000 (1,667) 8,333 Patent 3,360 (373) 2,987 Total amortizable intangible assets 1,147,219 (185,861) 961,358 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,152,434 $ (185,861) $ 966,573 Amortization expense was $45.2 million and $20.3 million for the three months ended March 31, 2021 and 2020, respectively. Total estimated future amortization expense is as follows: As of Year Ended December 31, (In thousands) 2021 (remaining nine months) $ 136,983 2022 172,264 2023 168,954 2024 163,380 2025 161,067 Thereafter 144,021 Total $ 946,669 |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 3 Months Ended |
Mar. 31, 2021 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued expenses and other current liabilities consisted of the following: As of As of March 31, December 31, 2021 2020 (In thousands) Accrued payroll and related $ 55,713 $ 54,683 Accrued bonus and commission 18,582 25,341 Accrued cost of revenue 88,882 80,620 Sales and other taxes payable 51,069 48,390 ESPP contributions 16,202 6,272 Finance lease liability, current 9,389 9,062 Accrued other expense 53,821 28,527 Total accrued expenses and other current liabilities $ 293,658 $ 252,895 Other long-term liabilities consisted of the following: As of As of March 31, December 31, 2021 2020 (In thousands) Deferred tax liability $ 19,031 $ 13,684 Acquisition holdback 8,751 8,800 Accrued other expenses 14,842 14,149 Total other long-term liabilities $ 42,624 $ 36,633 |
Notes Payable
Notes Payable | 3 Months Ended |
Mar. 31, 2021 | |
Long-term Debt, Unclassified [Abstract] | |
Notes Payable | Notes Payable Long-term debt consisted of the following: As of As of March 31, December 31, 2021 2020 (In thousands) 2029 Senior Notes (1) Principal $ 500,000 $ — Unamortized discount (6,209) — Unamortized issuance costs (1,213) — Net carrying amount 492,578 — 2031 Senior Notes (1) Principal 500,000 — Unamortized discount (6,219) — Unamortized issuance costs (1,216) — Net carrying amount 492,565 — Convertible Senior Notes (2) Principal 261,570 343,702 Unamortized discount (26,455) (38,406) Unamortized issuance costs (2,210) (3,228) Net carrying amount 232,905 302,068 Total long-term debt $ 1,218,048 $ 302,068 (1) 2029 and 2031 Senior Notes In March 2021, the Company issued $1.0 billion aggregate principal amount of senior notes, consisting of $500.0 million principal amount of 3.625% notes due 2029 (the “2029 Notes”) and $500.0 million principal amount of 3.875% notes due 2031 (the “2031 Notes,” and together with the 2029 Notes, the “Notes”). Initially, none of the Company's subsidiaries guaranteed the Notes. However, under certain circumstances in the future the Notes can be guaranteed by each of the Company's material domestic subsidiaries. The 2029 Notes and 2031 Notes will mature on March 15, 2029, and March 15, 2031, respectively. Interest payments are payable semi-annually in arrears on March 15 and September 15 of each year, commencing on September 15, 2021. The aggregate net proceeds from offering of the Notes were approximately $985.1 million, after deducting underwriting discounts and issuance costs, paid and payable by the Company. The issuance costs of $2.4 million will be amortized into interest expense using the effective interest method over the term of the Notes. The Company may voluntarily redeem the 2029 Notes, in whole or in part, under the following circumstances: (1) at any time prior to March 15, 2024 with the net cash proceeds received by the Company from an equity offering at a redemption price equal to 103.625% of the principal amount, provided the aggregate principal amount of all such redemptions does not exceed 40% of the original aggregate principal amount of the 2029 Notes. Such redemption shall occur within 180 days after the closing of an equity offering and at least 50% of the then-outstanding aggregate principal amount of the 2029 Notes shall remain outstanding, unless all 2029 Notes are redeemed concurrently; (2) at any time prior to March 15, 2024 at 100% of the principal amount, plus a “make-whole” premium; (3) at any time on or after March 15, 2024 at a prepayment price equal to 101.813% of the principal amount; (4) at any time on or after March 15, 2025 at a prepayment price equal to 100.906% of the principal amount; and (5) at any time on or after March 15, 2026 at a prepayment price equal to 100.000% of the principal amount; in each case, the redemption will include the accrued and unpaid interest, as applicable. The Company may voluntarily redeem the 2031 Notes, in whole or in part, under the following circumstances: (1) at any time prior to March 15, 2024 with the net cash proceeds received by the Company from an equity offering at a redemption price equal to 103.875% of the principal amount, provided the aggregate principal amount of all such redemptions does not to exceed 40% of the original aggregate principal amount of the 2031 Notes. Such redemption shall occur within 180 days after the closing of an equity offering and at least 50% of the then-outstanding aggregate principal amount of the 2031 Notes shall remain outstanding, unless all 2031 Notes are redeemed concurrently; (2) at any time prior to March 15, 2026 at 100% of the principal amount, plus a “make-whole” premium; (3) at any time on or after March 15, 2026 at a prepayment price equal to 101.938% of the principal amount; (4) at any time on or after March 15, 2027 at a prepayment price equal to 101.292% of the principal amount; (5) at any time on or after March 15, 2028 at a prepayment price equal to 100.646% of the principal amount; and (6) at any time on or after March 15, 2029 at a prepayment price equal to 100.000% of the principal amount; in each case, the redemption will include accrued and unpaid interest, as applicable. The Notes are unsecured obligations and will rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Notes that the Company may incur in the future and equal in right of payment with the Company’s existing and future liabilities that are not subordinated. In certain circumstances involving a change of control event, the Company will be required to make an offer to repurchase all, or, at the holder's option, any part, of each holder's notes of that series at 101% of the aggregate principal amount, plus accrued and unpaid interest, as applicable. The indenture governing the Notes (the “Indenture”) contains covenants limiting the Company's ability and the ability of its subsidiaries to: (i) create liens on certain assets to secure debt; (ii) grant a subsidiary guarantee of certain debt without also providing a guarantee of the Notes; and (iii) consolidate or merge with or into, or sell or otherwise dispose of all or substantially all of its assets to another person. These covenants are subject to a number of limitations and exceptions. Certain of these covenants will not apply during any period in which the Notes are rated investment grade by either Moody's Investors Service, Inc. or Standard & Poor's Ratings Services. For the three months ended March 31, 2021, the interest expense recognized related to the 2029 Notes and 2031 Notes was as follows: 2029 Notes 2031 Notes (In thousands) Contractual interest expense $ 1,120 $ 1,197 Amortization of debt discount and issuance costs 49 37 Total interest expense $ 1,169 $ 1,234 As of March 31, 2021, the Company was in compliance with all of its financial covenants under the Indenture. (2) Convertible Senior Notes and Capped Call Transactions In May 2018, the Company issued $550.0 million aggregate principal amount of 0.25% convertible senior notes due 2023 in a private placement, including $75.0 million aggregate principal amount of such Notes pursuant to the exercise in full of the over-allotment options of the initial purchasers (collectively, the “Convertible Notes”). The interest on the Convertible Notes is payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2018. The Convertible Notes may bear special interest under specified circumstances relating to the Company’s failure to comply with its reporting obligations under the indenture relating to the issuance of Convertible Notes (the “Convertible Notes Indenture”) or if the Convertible Notes are not freely tradeable as required by the Convertible Notes Indenture. The Convertible Notes will mature on June 1, 2023, unless earlier repurchased or redeemed by the Company or converted pursuant to their terms. The total net proceeds from the debt offering, after deducting initial purchaser discounts and debt issuance costs paid by us were approximately $537.0 million. Each $1,000 principal amount of the Convertible Notes is initially convertible into 14.104 shares of the Company’s Class A common stock par value $0.001, which is equivalent to an initial conversion price of approximately $70.90 per share. The conversion rate is subject to adjustment upon the occurrence of certain specified events but will not be adjusted for any accrued and unpaid special interest. In addition, upon the occurrence of a make-whole fundamental change, as defined in the Convertible Notes Indenture, the Company will, in certain circumstances, increase the conversion rate by a number of additional shares for a holder that elects to convert its Convertible Notes in connection with such make-whole fundamental change or during the relevant redemption period. Prior to the close of business on the business day immediately preceding March 1, 2023, the Convertible Notes may be convertible at the option of the holders only under the following circumstances: (1) during any calendar quarter commencing after September 30, 2018, and only during such calendar quarter, if the last reported sale price of the Class A common stock for at least 20 trading days (whether or not consecutive) in a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is more than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business days period after any five consecutive trading day period in which, for each trading day of that period, the trading price per $1,000 principal amount of Convertible Notes for such trading day was less than 98% of the product of the last reported sale price of the Class A common stock and the conversion rate on each such trading day; (3) upon the Company’s notice that it is redeeming any or all of the Convertible Notes; or (4) upon the occurrence of specified corporate events. On or after March 1, 2023, until the close of business on the second scheduled trading day immediately preceding the maturity date, holders of the Convertible Notes may, at their option, convert all or a portion of their Convertible Notes regardless of the foregoing conditions. Upon conversion, the Company may pay or deliver, as the case may be, cash, shares of Class A common stock, or a combination of cash and shares of Class A common stock, at the Company’s election. It is the Company’s current intent to settle the principal amount of the Convertible Notes in shares of Class A common stock if a conversion were to occur. During the three months ended March 31, 2021, the conditional conversion feature of the Convertible Notes was triggered as the last reported sale price of the Company's Class A common stock was more than or equal to 130% of the conversion price for at least 20 trading days (whether or not consecutive) in the period of 30 consecutive trading days ending on March 31, 2021 (the last trading day of the calendar quarter), and therefore the Convertible Notes are currently convertible, in whole or in part, at the option of the holders between April 1, 2021 through June 30, 2021. Whether the Convertible Notes will be convertible following such period will depend on the continued satisfaction of this condition or another conversion condition in the future. The Company continues to classify the Convertible Notes as a long-term liability in its condensed consolidated balance sheet as of March 31, 2021, based on contractual settlement provisions. The Company may redeem the Convertible Notes, in whole or in part, at its option, on or after June 1, 2021 but before the 35th scheduled trading day before the maturity date, at a cash redemption price equal to 100% of the principal amount of the Convertible Notes to be redeemed, plus accrued and unpaid interest, if any, if the last reported sale price of the Class A common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading days ending on, and including, the trading day immediately before the date the redemption notices were sent; and the trading day immediately before such notices were sent. No sinking fund is provided for the Convertible Notes. Upon the occurrence of a fundamental change (as defined in the Convertible Notes Indenture) prior to the maturity date, holders may require the Company to repurchase all or a portion of the Convertible Notes for cash at a price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The Convertible Notes are senior unsecured obligations and will rank senior in right of payment to any of the Company’s indebtedness that is expressly subordinated in right of payment to the Convertible Notes; equal in right of payment with the Company’s existing and future liabilities that are not so subordinated; effectively subordinated to any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of current or future subsidiaries of the Company. The foregoing description is qualified in its entirety by reference to the text of the Convertible Notes Indenture and the form of 0.25% convertible senior notes due 2023, which were filed as exhibits to the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2018 and are incorporated herein by reference. In accounting for the issuance of the Convertible Notes, the Company separated the Convertible Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $119.4 million and was determined by deducting the fair value of the liability component from the par value of the Convertible Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount, or the debt discount, is amortized to interest expense at an annual effective interest rate of 5.7% over the contractual terms of the Convertible Notes. In accounting for the transaction costs related to the Convertible Notes, the Company allocated the total amount incurred to the liability and equity components of the Convertible Notes based on the proportion of the proceeds allocated to the debt and equity components. Issuance costs attributable to the liability component were approximately $10.2 million, were recorded as an additional debt discount and are amortized to interest expense using the effective interest method over the contractual terms of the Convertible Notes. Issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity. In the three months ended March 31, 2021, the Company converted $82.1 million aggregate principal amount of the Convertible Notes by issuing 1,158,381 shares of its Class A common stock. Of the $422.7 million total value of these transactions, $342.7 million and $80.1 million were allocated to the equity and liability components, respectively, utilizing an effective interest rate to determine the fair value of the liability component. The selected interest rate reflects the Company's incremental borrowing rate, adjusted for the Company's credit standing on nonconvertible debt with similar maturity. The extinguishment of these Convertible Notes resulted in a $7.6 million loss that is included in other expenses, net, in the accompanying condensed consolidated statement of operations. The net carrying amount of the equity component of the Convertible Notes was as follows: As of As of March 31, December 31, 2021 2020 (In thousands) Proceeds allocated to the conversion options (debt discount) $ 56,801 $ 74,636 Issuance costs (2,819) (2,819) Net carrying amount $ 53,982 $ 71,817 The following table sets forth the interest expense recognized related to the Convertible Notes: Three Months Ended 2021 2020 (In thousands) Contractual interest expense $ 170 $ 344 Amortization of debt issuance costs 259 484 Amortization of debt discount 3,028 5,694 Total interest expense $ 3,457 $ 6,522 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information A roll‑forward of the Company’s reserves is as follows: (a) Allowance for doubtful accounts: Three Months Ended 2021 2020 (In thousands) Balance, beginning of period $ 12,046 $ 6,287 Additions 3,381 4,261 Write-offs (2,036) (1,463) Balance, end of period $ 13,391 $ 9,085 Percentage of revenue 2 % 2 % (b) Customer credit reserve: Three Months Ended 2021 2020 (In thousands) Balance, beginning of period $ 16,783 $ 6,784 Additions 15,466 8,174 Deductions against reserve (14,998) (5,271) Balance, end of period $ 17,251 $ 9,687 Percentage of revenue 3 % 3 % |
Revenue by Geographic Area
Revenue by Geographic Area | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue by Geographic Area | Revenue by Geographic Area Revenue by geographic area is based on the IP address or the mailing address at the time of registration. The following table sets forth revenue by geographic area: Three Months Ended 2021 2020 Revenue by geographic area: (In thousands) United States $ 421,531 $ 261,813 International 168,457 103,055 Total $ 589,988 $ 364,868 Percentage of revenue by geographic area: United States 71 % 72 % International 29 % 28 % Long-lived assets outside of the United States were not significant. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesLease and Other Commitments The Company entered into various non-cancelable operating lease agreements for its facilities with remaining lease terms from less than one year to eight years. See Note 5 to these condensed consolidated financial statements for additional detail on the Company's operating and finance lease commitments. Additionally, the Company has noncancellable contractual commitments with its cloud infrastructure provider, network service providers and other vendors. In the three months ended March 31, 2021, the Company entered into several such agreements with terms up to three years for a total purchase commitment of $426.9 million. In February 2021, the Company entered into a Framework Agreement with Syniverse Corporation (“Syniverse”) and Carlyle Partners V Holdings, L.P. (“Carlyle”) (the “Framework Agreement”), pursuant to which Syniverse will issue to the Company shares of Syniverse common stock in consideration for an investment by the Company of up to $750.0 million. In connection with the closing of the investment, the Company and Syniverse will enter into a wholesale agreement, in which Syniverse will process, route and deliver application-to-person messages originating and/or terminating between the Company's customers and mobile network operators. The investment is expected to result in the Company holding a significant minority equity ownership position in Syniverse, subject to certain adjustments based on the terms of the final agreement. This proposed transaction closing is subject to consummation of certain other transactions by Syniverse, as defined in the Framework Agreement, and other customary closing conditions, including regulatory approvals. The closing is expected to occur before the end of 2021. As of March 31, 2021, the Company has deferred $3.3 million of costs related to this proposed transaction that are recorded in prepaid expenses and other current assets in the accompanying condensed consolidated balance sheet. From time to time, the Company may be subject to legal actions and claims in the ordinary course of business. The Company has received, and may in the future continue to receive, claims from third parties asserting, among other things, infringement of their intellectual property rights. Future litigation may be necessary to defend the Company, its partners and its customers by determining the scope, enforceability and validity of third‑party proprietary rights, or to establish our proprietary rights. The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors. Legal fees and other costs related to litigation and other legal proceedings are expensed as incurred and are included in general and administrative expenses in the accompanying condensed consolidated statements of operations. The Company has signed indemnification agreements with all of its board members and executive officers. The agreements indemnify the board members and executive officers from claims and expenses on actions brought against the individuals separately or jointly with the Company for certain indemnifiable events. Indemnifiable events generally mean any event or occurrence related to the fact that the board member or the executive officer was or is acting in his or her capacity as a board member or an executive officer for the Company or was or is acting or representing the interests of the Company. In the ordinary course of business and in connection with our financing and business combinations transactions, the Company enters into contractual arrangements under which it agrees to provide indemnification of varying scope and terms to business partners, customers and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, intellectual property infringement claims made by third parties and other liabilities relating to or arising from the Company’s various products, or its acts or omissions. In these circumstances, payment may be conditional on the other party making a claim pursuant to the procedures specified in the particular contract. Further, the Company’s obligations under these agreements may be limited in terms of time and/or amount, and in some instances, the Company may have recourse against third parties for certain payments. The terms of such obligations may vary. As of March 31, 2021 and December 31, 2020, no amounts were accrued related to any outstanding indemnification agreements. The Company conducts operations in many tax jurisdictions within and outside the United States. In many of these jurisdictions, non-income-based taxes, such as sales, use, telecommunications, and other local taxes are assessed on the Company’s operations. Prior to March 2017, the Company had not billed nor collected these taxes from its customers and, in accordance with U.S. GAAP, recorded a provision for its tax exposure in these jurisdictions when it was both probable that a liability had been incurred and the amount of the exposure could be reasonably estimated. These estimates included several key assumptions including, but not limited to, the taxability of the Company’s services, the jurisdictions in which its management believes it had nexus, and the sourcing of revenues to those jurisdictions. Starting in March 2017, the Company began collecting these taxes from customers in certain jurisdictions and since then has expanded to collect taxes in most jurisdictions where the Company operates. The Company is also in discussions with certain jurisdictions regarding its prior sales and other taxes, if any, that it may owe. In the event any of these jurisdictions disagrees with management’s assumptions and analysis, the assessment of the Company's tax exposure could differ materially from management's current estimates. For example, one jurisdiction has assessed the Company for $38.8 million in taxes, including interest and penalties, which exceeded the $11.5 million the Company had accrued for the period covered by this assessment. The Company believes that this assessment is incorrect and has disputed it, paid the full amount as required by law, and is seeking a refund or settlement. The payment made in excess of the accrued amount is reflected as a deposit in the Company's accompanying condensed consolidated balance sheets. If a reasonable settlement cannot be reached in the near future, the Company will challenge the jurisdiction’s assessment in court. However, litigation is uncertain and a ruling against the Company may adversely affect its financial position and results of operation. As of March 31, 2021 and December 31, 2020, the liability recorded for these taxes was $26.6 million and $25.6 million, respectively. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock As of March 31, 2021 and December 31, 2020, the Company had authorized 100,000,000 shares of preferred stock, par value $0.001, of which no shares were issued and outstanding. Common Stock As of March 31, 2021 and December 31, 2020, the Company had authorized 1,000,000,000 shares of Class A common stock and 100,000,000 shares of Class B common stock, each par value $0.001 per share. As of March 31, 2021, 160,588,258 shares of Class A common stock and 10,343,302 shares of Class B common stock were issued and outstanding. As of December 31, 2020, 153,496,222 shares of Class A common stock and 10,551,302 shares of Class B common stock were issued and outstanding. Holders of Class A and Class B common stock are entitled to one vote per share and 10 votes per share, respectively, and the shares of Class A common stock and Class B common stock are identical, except for voting and conversion rights. The Company had reserved shares of common stock for issuance as follows: As of As of March 31, December 31, 2021 2020 Stock options issued and outstanding 5,216,385 5,625,735 Unvested restricted stock units issued and outstanding 6,758,222 7,523,882 Class A common stock reserved for Twilio.org 685,163 707,265 Stock-based awards available for grant under 2016 Plan 26,871,942 18,942,205 Stock-based awards available for grant under 2016 ESPP 6,581,756 4,941,281 Class A common stock reserved for the convertible senior notes 6,411,350 7,569,731 Total 52,524,818 45,310,099 Public Equity Offerings In February 2021, the Company completed public equity offerings in which it sold 4,312,500 shares of its Class A common stock at a public offering price of $409.60 per share. The Company received total proceeds of $1.8 billion, net of offering expenses paid and payable by the Company. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company's 2016 Stock Option and Incentive Plan (the “2016 Plan”) provides for granting stock options, restricted stock units ("RSU"), restricted stock awards (“RSA”), stock appreciation rights, unrestricted stock awards, performance share awards, dividend equivalent rights and cash-based awards to its employees, directors and consultants. Certain of the Company's outstanding equity awards were granted under equity incentive plans that are no longer active but continue to govern the outstanding equity awards granted thereunder. The Company also offers an Employee Stock Purchase Plan ("ESPP") to eligible employees. The ESPP provides for separate six-month offering periods beginning in May and November of each year. On January 1, 2021, the shares available for grant under the 2016 Plan and ESPP were automatically increased by 8,202,376 shares and 1,640,475 shares, respectively. Stock-options and restricted stock units and awards activity under the Company's equity incentive plans was as follows: Stock Options Number of Weighted- Weighted- Aggregate Outstanding options as of December 31, 2020 5,070,735 $ 51.71 6.85 $ 1,454,222 Granted 108,429 378.11 Exercised (459,379) 25.17 Forfeited and canceled (58,400) 62.63 Outstanding options as of March 31, 2021 4,661,385 $ 61.78 6.67 $ 1,304,466 Options vested and exercisable as of March 31, 2021 2,609,089 $ 26.89 5.35 $ 818,926 Three Months Ended 2021 2020 (In thousands, except per share amounts) Aggregate intrinsic value of stock options exercised (1) $ 165,559 $ 68,359 Total estimated grant date fair value of options vested $ 31,979 $ 23,335 Weighted-average grant date fair value per share of options granted $ 205.36 $ 60.47 ____________________________________ ( 1 ) Aggregate intrinsic value represents the difference between the fair value of the Company’s Class A common stock as reported on the New York Stock Exchange and the exercise price of outstanding “in-the-money” options. Additionally, as of March 31, 2021, the Company had outstanding 555,000 shares of performance-based stock options with a weighted average exercise price of $31.72, of which 543,437 were vested and exercisable. All performance conditions have been met. Restricted Stock Units and Awards Number of Weighted- Aggregate Unvested RSUs as of December 31, 2020 7,523,882 $ 131.76 $ 2,542,858 Granted 314,291 389.26 Vested (919,022) 84.12 Forfeited and canceled (160,929) 124.66 Unvested RSUs as of March 31, 2021 6,758,222 $ 150.39 $ 2,302,932 Additionally, as of March 31, 2021, the Company granted 24,697 shares of RSAs with a weighted average grant date fair value of $359.80 per share and aggregate intrinsic value of $8.9 million. As of March 31, 2021, the Company had 258,554 shares of its Class A common stock in escrow that are subject to future vesting over a period of 2.5 years with a weighted average grant date fair value of $273.38 per share and aggregate intrinsic value of $88.1 million. As of March 31, 2021, total unrecognized compensation cost was as follows: Unrecognized Compensation Cost Weighted-average remaining period (In thousands) (In years) Unvested stock options $ 225,119 2.4 Unvested restricted stock units and awards 923,508 2.9 Class A shares in escrow subject to future vesting 58,889 2.5 ESPP 2,119 0.1 Total $ 1,209,635 Valuation Assumptions The fair value of employee stock options was estimated on the date of grant using the following assumptions in the Black-Scholes option pricing model: Three Months Ended Employee Stock Options: 2021 2020 Fair value of common stock $377.6 - $409.2 $117.9 - $126.7 Expected term (in years) 6.08 6.08 Expected volatility 58.3% - 58.4% 51.9% Risk-free interest rate 0.8% - 1.0% 1.3% - 1.4% Dividend rate —% —% Stock-Based Compensation Expense The Company recorded total stock-based compensation expense as follows: Three Months Ended 2021 2020 (In thousands) Cost of revenue $ 2,717 $ 1,837 Research and development 56,959 33,209 Sales and marketing 41,636 19,943 General and administrative 35,843 14,036 Total $ 137,155 $ 69,025 |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Common Stockholders | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Common Stockholders | Net Loss Per Share Attributable to Common StockholdersBasic and diluted net loss per common share is presented in conformity with the two-class method required for participating securities and is described in detail in the Company's Annual Report. The following table sets forth the calculation of basic and diluted net loss per share attributable to common stockholders during the periods presented: Three Months Ended 2021 2020 Net loss attributable to common stockholders (in thousands) $ (206,542) $ (94,791) Weighted-average shares used to compute net loss per share attributable to 167,160,458 139,231,594 Net loss per share attributable to common stockholders, basic and diluted $ (1.24) $ (0.68) The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive: As of March 31, 2021 2020 Stock options issued and outstanding 5,216,385 7,492,970 Restricted stock units issued and outstanding 6,758,222 8,039,823 Class A common stock reserved for Twilio.org 685,163 773,571 Class A common stock committed under 2016 ESPP 101,030 212,028 Convertible senior notes (1) 3,689,177 2,747,996 Class A common stock in escrow 75,612 — Class A common stock in escrow and restricted stock awards subject to future 289,618 — Total 16,815,207 19,266,388 ____________________________________ |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company computes its provision for interim periods by applying an estimated annual effective tax rate to anticipated annual pretax income or loss. The estimated annual effective tax rate is applied to the Company's year to date income or loss, and is adjusted for discrete items recorded in the period. The Company recorded an income tax provision of $0.9 million and $1.0 million for the three months ended March 31, 2021 and 2020, respectively. The provision for income taxes recorded in the three months ended March 31, 2021 and 2020 consists primarily of income taxes and withholding taxes in foreign jurisdictions in which the Company conducts business, partially offset by an income tax benefit from the reversal of U.S. deferred tax liabilities related to acquired intangibles from prior year business combinations. The primary difference between the effective tax rate and the federal statutory rate is the full valuation allowance the Company established on the federal, state, and certain foreign net operating losses and credits. The Company continues to maintain a full valuation allowance against its U.S. federal and state net deferred tax assets. |
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 accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (“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. Therefore, these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes included in the Company's Annual Report on Form 10-K filed with the SEC on February 26, 2021 (“Annual Report”). The condensed consolidated balance sheet as of December 31, 2020, included herein, was derived from the audited financial statements as of that date, but may not include all disclosures including certain notes required by U.S. GAAP on an annual reporting basis. In the opinion of management, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the financial position, results of operations, comprehensive loss, stockholders' equity and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year 2021 or any future period. |
Principles of Consolidation | Principles of ConsolidationThe condensed consolidated financial statements include the Company and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates are used for, but not limited to, revenue allowances and sales credit reserves; recoverability of long-lived and intangible assets; capitalization and useful life of the Company’s capitalized internal-use software development costs; fair value of acquired intangible assets and goodwill; accruals and contingencies. Estimates are based on historical experience and on various assumptions that the Company believes are reasonable under current circumstances. However, future events are subject to change and best estimates and judgments may require further adjustments, therefore, actual results could differ materially from those estimates. Management periodically evaluates such estimates and they are adjusted prospectively based upon such periodic evaluation. |
Concentration of Credit Risk | Concentration of Credit RiskFinancial instruments that potentially expose the Company to a concentration of credit risk consist primarily of cash, cash equivalents, marketable securities and accounts receivable. The Company maintains cash, cash equivalents and marketable securities with financial institutions that management believes are financially sound and have minimal credit risk exposure although the balances will exceed insured limits.The Company sells its services to a wide variety of customers. If the financial condition or results of operations of any significant customers deteriorate substantially, operating results could be adversely affected. To reduce credit risk, management performs credit evaluations of the financial condition of significant customers. The Company does not require collateral from its credit customers and maintains reserves for estimated credit losses on customer accounts when considered necessary. Actual credit losses may differ from the Company’s estimates. |
Recently Issued Accounting Guidance, Not yet Adopted | Recently Issued Accounting Guidance, Not yet Adopted In August 2020, the FASB issued ASU 2020-06, “Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40),” which removes certain separation models for convertible debt instruments and convertible preferred stock that require the separation of a convertible debt instrument into a debt component and an equity or derivative component. The ASU also expands disclosure requirements for convertible instruments and simplifies areas of the guidance for diluted earnings-per-share calculations that are impacted by the amendments. The standard is effective for interim and annual periods beginning after December 15, 2021, with early adoption permitted. The Company is evaluating the impact of the adoption of this guidance on its consolidated financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets measured at fair value on a recurring basis | The following tables provide the financial assets measured at fair value on a recurring basis: Amortized Gross Gross Fair Value Hierarchy as of Aggregate Level 1 Level 2 Level 3 Financial Assets: (In thousands) Cash and cash equivalents: Money market funds $ 1,867,034 $ — $ — $ 1,867,034 $ — $ — $ 1,867,034 Commercial paper 322,701 — — — 322,701 — 322,701 Total included in cash and cash equivalents 2,189,735 — — 1,867,034 322,701 — 2,189,735 Marketable securities: U.S. Treasury securities 236,651 248 (56) 236,843 — — 236,843 Corporate debt securities and commercial paper 3,134,407 5,582 (1,548) 45,000 3,093,441 — 3,138,441 Total marketable securities 3,371,058 5,830 (1,604) 281,843 3,093,441 — 3,375,284 Total financial assets $ 5,560,793 $ 5,830 $ (1,604) $ 2,148,877 $ 3,416,142 $ — $ 5,565,019 Amortized Gross Gross Fair Value Hierarchy as of Aggregate Level 1 Level 2 Level 3 Financial Assets: (In thousands) Cash and cash equivalents: Money market funds $ 656,749 $ — $ — $ 656,749 $ — $ — $ 656,749 Commercial paper 2,000 — — — 2,000 — 2,000 Total included in cash and cash equivalents 658,749 — — 656,749 2,000 — 658,749 Marketable securities: U.S. Treasury securities 223,247 389 (1) 223,635 — — 223,635 Corporate debt securities and commercial paper 1,874,257 8,149 (135) 50,000 1,832,271 — 1,882,271 Total marketable securities 2,097,504 8,538 (136) 273,635 1,832,271 — 2,105,906 Total financial assets $ 2,756,253 $ 8,538 $ (136) $ 930,384 $ 1,834,271 $ — $ 2,764,655 |
Schedule of contractual maturities of marketable securities | The following table summarizes the contractual maturities of marketable securities: As of March 31, 2021 As of December 31, 2020 Amortized Aggregate Amortized Aggregate Financial Assets: (In thousands) Less than one year $ 1,322,778 $ 1,325,489 $ 1,126,091 $ 1,128,927 One to three years 2,048,280 2,049,795 971,413 976,979 Total $ 3,371,058 $ 3,375,284 $ 2,097,504 $ 2,105,906 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Property and equipment consisted of the following: As of As of March 31, December 31, 2021 2020 (In thousands) Capitalized internal-use software development costs $ 154,117 $ 142,489 Data center equipment (1) 49,627 43,477 Leasehold improvements 70,663 69,756 Office equipment 45,040 35,346 Furniture and fixtures (1) 12,808 12,312 Software 10,218 9,943 Total property and equipment 342,473 313,323 Less: accumulated depreciation and amortization (146,588) (130,084) Total property and equipment, net $ 195,885 $ 183,239 ____________________________________ ( 1 ) Data center equipment and furniture and fixtures contain assets under finance leases. See Note 5 for further detail. |
Right-of-Use Asset and Lease _2
Right-of-Use Asset and Lease Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Lease, Cost | The components of the lease expense recorded in the accompanying condensed consolidated statements of operations were as follows: Three Months Ended 2021 2020 (In thousands) Operating lease cost $ 14,873 $ 10,424 Finance lease cost: Amortization of assets 2,680 1,904 Interest on lease liabilities 263 198 Short-term lease cost 1,692 1,412 Variable lease cost 2,900 1,296 Total net lease cost $ 22,408 $ 15,234 Supplemental cash flow and other information related to leases was as follows: Three Months Ended 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: (In thousands) Operating cash flows from operating leases $ 14,691 $ 9,953 Operating cash flows from finance leases (interest) $ 263 $ 198 Financing cash flows from finance leases $ 2,748 $ 1,881 Weighted average remaining lease term (in years): Operating leases 5.9 5.8 Finance leases 3.4 2.9 Weighted average discount rate: Operating leases 4.8 % 5.7 % Finance leases 3.7 % 5.3 % |
Assets and Liabilities, Lessee | Supplemental balance sheet information related to leases was as follows: As of As of March 31, December 31, Leases Classification 2021 2020 Assets: (In thousands) Operating lease assets Operating right-of-use asset, net of accumulated amortization (1) $ 241,328 $ 258,610 Finance lease assets Property and equipment, net of accumulated depreciation (2) 28,357 25,771 Total leased assets $ 269,685 $ 284,381 Liabilities: Current Operating Operating lease liability, current $ 46,239 $ 48,338 Finance Finance lease liability, current 9,389 9,062 Noncurrent Operating Operating lease liability, noncurrent 214,456 229,905 Finance Finance lease liability, noncurrent 19,933 17,856 Total lease liabilities $ 290,017 $ 305,161 ____________________________________ (1) Operating lease assets are recorded net of accumulated amortization of $65.2 million and $57.1 million as of March 31, 2021 and December 31, 2020, respectively. (2) Finance lease assets are recorded net of accumulated depreciation of $17.7 million and $15.0 million as of March 31, 2021 and December 31, 2020, respectively. |
Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities were as follows: As of March 31, 2021 Operating Finance Year Ended December 31, (In thousands) 2021 (remaining nine months) $ 42,698 $ 7,911 2022 57,060 8,987 2023 48,937 8,240 2024 44,373 4,999 2025 32,167 547 Thereafter 75,304 518 Total lease payments 300,539 31,202 Less: imputed interest (39,844) (1,880) Total lease obligations 260,695 29,322 Less: current obligations (46,239) (9,389) Long-term lease obligations $ 214,456 $ 19,933 |
Finance Lease, Liability, Maturity | Maturities of lease liabilities were as follows: As of March 31, 2021 Operating Finance Year Ended December 31, (In thousands) 2021 (remaining nine months) $ 42,698 $ 7,911 2022 57,060 8,987 2023 48,937 8,240 2024 44,373 4,999 2025 32,167 547 Thereafter 75,304 518 Total lease payments 300,539 31,202 Less: imputed interest (39,844) (1,880) Total lease obligations 260,695 29,322 Less: current obligations (46,239) (9,389) Long-term lease obligations $ 214,456 $ 19,933 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of purchase price allocation | Total (In thousands) Net tangible assets $ 9,756 Intangible assets (1) 30,300 Deferred tax liability (6,179) Goodwill 36,356 Total preliminary purchase price $ 70,233 ____________________________________ (1) Identifiable intangible assets were comprised of the following: Total Estimated (In thousands) (In years) Developed technology $ 6,700 7 Customer relationships 11,200 7 Carrier relationships 7,700 5 Trademark and trade name 4,700 5 Total intangible assets acquired $ 30,300 |
Schedule of identifiable finite-lived intangible assets | (1) Identifiable intangible assets were comprised of the following: Total Estimated (In thousands) (In years) Developed technology $ 6,700 7 Customer relationships 11,200 7 Carrier relationships 7,700 5 Trademark and trade name 4,700 5 Total intangible assets acquired $ 30,300 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill balance | Goodwill balance as of March 31, 2021 and December 31, 2020, was as follows: Total (In thousands) Balance as of December 31, 2020 $ 4,595,394 Goodwill additions and adjustments 39,783 Balance as of March 31, 2021 $ 4,635,177 |
Schedule of intangible assets | Intangible assets consisted of the following: As of Gross Accumulated Net Amortizable intangible assets: (In thousands) Developed technology $ 731,311 $ (139,293) $ 592,018 Customer relationships 390,564 (74,466) 316,098 Supplier relationships 12,071 (3,461) 8,610 Trade names 30,268 (9,252) 21,016 Order backlog 10,000 (4,167) 5,833 Patent 3,503 (409) 3,094 Total amortizable intangible assets 1,177,717 (231,048) 946,669 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,182,932 $ (231,048) $ 951,884 As of Gross Accumulated Net Amortizable intangible assets: (In thousands) Developed technology $ 724,599 $ (113,282) $ 611,317 Customer relationships 379,344 (59,574) 319,770 Supplier relationships 4,356 (3,044) 1,312 Trade name 25,560 (7,921) 17,639 Order backlog 10,000 (1,667) 8,333 Patent 3,360 (373) 2,987 Total amortizable intangible assets 1,147,219 (185,861) 961,358 Non-amortizable intangible assets: Telecommunication licenses 4,920 — 4,920 Trademarks and other 295 — 295 Total $ 1,152,434 $ (185,861) $ 966,573 |
Schedule of total estimated future amortization expense | Total estimated future amortization expense is as follows: As of Year Ended December 31, (In thousands) 2021 (remaining nine months) $ 136,983 2022 172,264 2023 168,954 2024 163,380 2025 161,067 Thereafter 144,021 Total $ 946,669 |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accrued Liabilities and Other Liabilities [Abstract] | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following: As of As of March 31, December 31, 2021 2020 (In thousands) Accrued payroll and related $ 55,713 $ 54,683 Accrued bonus and commission 18,582 25,341 Accrued cost of revenue 88,882 80,620 Sales and other taxes payable 51,069 48,390 ESPP contributions 16,202 6,272 Finance lease liability, current 9,389 9,062 Accrued other expense 53,821 28,527 Total accrued expenses and other current liabilities $ 293,658 $ 252,895 |
Schedule of other long-term liabilities | Other long-term liabilities consisted of the following: As of As of March 31, December 31, 2021 2020 (In thousands) Deferred tax liability $ 19,031 $ 13,684 Acquisition holdback 8,751 8,800 Accrued other expenses 14,842 14,149 Total other long-term liabilities $ 42,624 $ 36,633 |
Notes Payable (Tables)
Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Long-term Debt, Unclassified [Abstract] | |
Schedule of net carrying amount of the liability and equity components of the Notes | Long-term debt consisted of the following: As of As of March 31, December 31, 2021 2020 (In thousands) 2029 Senior Notes (1) Principal $ 500,000 $ — Unamortized discount (6,209) — Unamortized issuance costs (1,213) — Net carrying amount 492,578 — 2031 Senior Notes (1) Principal 500,000 — Unamortized discount (6,219) — Unamortized issuance costs (1,216) — Net carrying amount 492,565 — Convertible Senior Notes (2) Principal 261,570 343,702 Unamortized discount (26,455) (38,406) Unamortized issuance costs (2,210) (3,228) Net carrying amount 232,905 302,068 Total long-term debt $ 1,218,048 $ 302,068 The net carrying amount of the equity component of the Convertible Notes was as follows: As of As of March 31, December 31, 2021 2020 (In thousands) Proceeds allocated to the conversion options (debt discount) $ 56,801 $ 74,636 Issuance costs (2,819) (2,819) Net carrying amount $ 53,982 $ 71,817 |
Schedule of interest expense recognized related to the Notes | For the three months ended March 31, 2021, the interest expense recognized related to the 2029 Notes and 2031 Notes was as follows: 2029 Notes 2031 Notes (In thousands) Contractual interest expense $ 1,120 $ 1,197 Amortization of debt discount and issuance costs 49 37 Total interest expense $ 1,169 $ 1,234 The following table sets forth the interest expense recognized related to the Convertible Notes: Three Months Ended 2021 2020 (In thousands) Contractual interest expense $ 170 $ 344 Amortization of debt issuance costs 259 484 Amortization of debt discount 3,028 5,694 Total interest expense $ 3,457 $ 6,522 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Schedule of the allowance for doubtful accounts | Allowance for doubtful accounts: Three Months Ended 2021 2020 (In thousands) Balance, beginning of period $ 12,046 $ 6,287 Additions 3,381 4,261 Write-offs (2,036) (1,463) Balance, end of period $ 13,391 $ 9,085 Percentage of revenue 2 % 2 % |
Schedule of the sales credit reserve | Customer credit reserve: Three Months Ended 2021 2020 (In thousands) Balance, beginning of period $ 16,783 $ 6,784 Additions 15,466 8,174 Deductions against reserve (14,998) (5,271) Balance, end of period $ 17,251 $ 9,687 Percentage of revenue 3 % 3 % |
Revenue by Geographic Area (Tab
Revenue by Geographic Area (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue by geographic area | Revenue by geographic area is based on the IP address or the mailing address at the time of registration. The following table sets forth revenue by geographic area: Three Months Ended 2021 2020 Revenue by geographic area: (In thousands) United States $ 421,531 $ 261,813 International 168,457 103,055 Total $ 589,988 $ 364,868 Percentage of revenue by geographic area: United States 71 % 72 % International 29 % 28 % |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of reserved shares of common stock for issuance | The Company had reserved shares of common stock for issuance as follows: As of As of March 31, December 31, 2021 2020 Stock options issued and outstanding 5,216,385 5,625,735 Unvested restricted stock units issued and outstanding 6,758,222 7,523,882 Class A common stock reserved for Twilio.org 685,163 707,265 Stock-based awards available for grant under 2016 Plan 26,871,942 18,942,205 Stock-based awards available for grant under 2016 ESPP 6,581,756 4,941,281 Class A common stock reserved for the convertible senior notes 6,411,350 7,569,731 Total 52,524,818 45,310,099 Public Equity Offerings In February 2021, the Company completed public equity offerings in which it sold 4,312,500 shares of its Class A common stock at a public offering price of $409.60 per share. The Company received total proceeds of $1.8 billion, net of offering expenses paid and payable by the Company. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock options activity | Number of Weighted- Weighted- Aggregate Outstanding options as of December 31, 2020 5,070,735 $ 51.71 6.85 $ 1,454,222 Granted 108,429 378.11 Exercised (459,379) 25.17 Forfeited and canceled (58,400) 62.63 Outstanding options as of March 31, 2021 4,661,385 $ 61.78 6.67 $ 1,304,466 Options vested and exercisable as of March 31, 2021 2,609,089 $ 26.89 5.35 $ 818,926 |
Schedule of weighted average grant date fair value | Three Months Ended 2021 2020 (In thousands, except per share amounts) Aggregate intrinsic value of stock options exercised (1) $ 165,559 $ 68,359 Total estimated grant date fair value of options vested $ 31,979 $ 23,335 Weighted-average grant date fair value per share of options granted $ 205.36 $ 60.47 ____________________________________ ( 1 ) Aggregate intrinsic value represents the difference between the fair value of the Company’s Class A common stock as reported on the New York Stock Exchange and the exercise price of outstanding “in-the-money” options. |
Schedule of restricted stock unit activity | Number of Weighted- Aggregate Unvested RSUs as of December 31, 2020 7,523,882 $ 131.76 $ 2,542,858 Granted 314,291 389.26 Vested (919,022) 84.12 Forfeited and canceled (160,929) 124.66 Unvested RSUs as of March 31, 2021 6,758,222 $ 150.39 $ 2,302,932 |
Schedule of unrecognized compensation | As of March 31, 2021, total unrecognized compensation cost was as follows: Unrecognized Compensation Cost Weighted-average remaining period (In thousands) (In years) Unvested stock options $ 225,119 2.4 Unvested restricted stock units and awards 923,508 2.9 Class A shares in escrow subject to future vesting 58,889 2.5 ESPP 2,119 0.1 Total $ 1,209,635 |
Schedule of valuation assumptions, options | The fair value of employee stock options was estimated on the date of grant using the following assumptions in the Black-Scholes option pricing model: Three Months Ended Employee Stock Options: 2021 2020 Fair value of common stock $377.6 - $409.2 $117.9 - $126.7 Expected term (in years) 6.08 6.08 Expected volatility 58.3% - 58.4% 51.9% Risk-free interest rate 0.8% - 1.0% 1.3% - 1.4% Dividend rate —% —% |
Schedule of stock based compensation expense | The Company recorded total stock-based compensation expense as follows: Three Months Ended 2021 2020 (In thousands) Cost of revenue $ 2,717 $ 1,837 Research and development 56,959 33,209 Sales and marketing 41,636 19,943 General and administrative 35,843 14,036 Total $ 137,155 $ 69,025 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Common Stockholders (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of the calculation of basic and diluted net loss per share attributable to common stockholders | The following table sets forth the calculation of basic and diluted net loss per share attributable to common stockholders during the periods presented: Three Months Ended 2021 2020 Net loss attributable to common stockholders (in thousands) $ (206,542) $ (94,791) Weighted-average shares used to compute net loss per share attributable to 167,160,458 139,231,594 Net loss per share attributable to common stockholders, basic and diluted $ (1.24) $ (0.68) |
Schedule of common stock equivalents excluded from the computation of the diluted net loss per share attributable to common stockholders | The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net loss per share attributable to common stockholders because their effect would have been anti-dilutive: As of March 31, 2021 2020 Stock options issued and outstanding 5,216,385 7,492,970 Restricted stock units issued and outstanding 6,758,222 8,039,823 Class A common stock reserved for Twilio.org 685,163 773,571 Class A common stock committed under 2016 ESPP 101,030 212,028 Convertible senior notes (1) 3,689,177 2,747,996 Class A common stock in escrow 75,612 — Class A common stock in escrow and restricted stock awards subject to future 289,618 — Total 16,815,207 19,266,388 ____________________________________ |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | $ 2,189,735 | $ 658,749 |
Total amortized cost | 3,371,058 | 2,097,504 |
Gross Unrealized Gains | 5,830 | 8,538 |
Gross Unrealized Losses | (1,604) | (136) |
Marketable securities, aggregate fair value | 3,375,284 | 2,105,906 |
Financial Assets, Amortized Cost or Carrying Value | 5,560,793 | 2,756,253 |
Total financial assets | 5,565,019 | 2,764,655 |
Note receivable | 9,300 | 9,300 |
U.S. Treasury securities | ||
Fair Value Measurements, Financial Assets | ||
Total amortized cost | 236,651 | 223,247 |
Gross Unrealized Gains | 248 | 389 |
Gross Unrealized Losses | (56) | (1) |
Marketable securities, aggregate fair value | 236,843 | 223,635 |
Corporate debt securities and commercial paper | ||
Fair Value Measurements, Financial Assets | ||
Total amortized cost | 3,134,407 | 1,874,257 |
Gross Unrealized Gains | 5,582 | 8,149 |
Gross Unrealized Losses | (1,548) | (135) |
Marketable securities, aggregate fair value | 3,138,441 | 1,882,271 |
Level 1 | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 1,867,034 | 656,749 |
Marketable securities, aggregate fair value | 281,843 | 273,635 |
Total financial assets | 2,148,877 | 930,384 |
Level 1 | U.S. Treasury securities | ||
Fair Value Measurements, Financial Assets | ||
Marketable securities, aggregate fair value | 236,843 | 223,635 |
Level 1 | Corporate debt securities and commercial paper | ||
Fair Value Measurements, Financial Assets | ||
Marketable securities, aggregate fair value | 45,000 | 50,000 |
Level 2 | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 322,701 | 2,000 |
Marketable securities, aggregate fair value | 3,093,441 | 1,832,271 |
Total financial assets | 3,416,142 | 1,834,271 |
Level 2 | U.S. Treasury securities | ||
Fair Value Measurements, Financial Assets | ||
Marketable securities, aggregate fair value | 0 | 0 |
Level 2 | Corporate debt securities and commercial paper | ||
Fair Value Measurements, Financial Assets | ||
Marketable securities, aggregate fair value | 3,093,441 | 1,832,271 |
Level 3 | ||
Fair Value Measurements, Financial Assets | ||
Total financial assets | 0 | 0 |
Carrying Value | Money market funds | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 1,867,034 | 656,749 |
Carrying Value | Commercial paper | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 322,701 | 2,000 |
Aggregate Fair Value | Money market funds | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 1,867,034 | 656,749 |
Aggregate Fair Value | Commercial paper | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 322,701 | 2,000 |
Aggregate Fair Value | Level 1 | Money market funds | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | 1,867,034 | 656,749 |
Aggregate Fair Value | Level 2 | Commercial paper | ||
Fair Value Measurements, Financial Assets | ||
Cash and cash equivalents: | $ 322,701 | $ 2,000 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | May 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest earned on marketable securities | $ 3,900,000 | $ 8,800,000 | ||
Note receivable | 9,300,000 | $ 9,300,000 | ||
Impairment of long-lived assets | $ 0 | $ 0 | ||
Senior Notes 3.525 Percent Due 2029 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate (as a percent) | 3.625% | |||
Senior Notes 3.525 Percent Due 2029 | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of the notes | $ 510,500,000 | |||
Senior Notes 3.875 Percent Due 2031 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate (as a percent) | 3.875% | |||
Senior Notes 3.875 Percent Due 2031 | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of the notes | $ 512,800,000 | |||
Convertible senior notes, 0.25%, due 2023 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest rate (as a percent) | 0.25% | |||
Convertible senior notes, 0.25%, due 2023 | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair value of the notes | $ 1,300,000,000 | $ 1,700,000,000 |
Fair Value Measurements - Contr
Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Less than one year, amortized cost | $ 1,322,778 | $ 1,126,091 |
One to three years, amortized cost | 2,048,280 | 971,413 |
Total amortized cost | 3,371,058 | 2,097,504 |
Less than one year, aggregate fair value | 1,325,489 | 1,128,927 |
One to three years, aggregate fair value | 2,049,795 | 976,979 |
Total aggregate fair value | $ 3,375,284 | $ 2,105,906 |
Property and Equipment - Proper
Property and Equipment - Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property and Equipment | ||
Total property and equipment | $ 342,473 | $ 313,323 |
Less: accumulated depreciation and amortization | (146,588) | (130,084) |
Total property and equipment, net | 195,885 | 183,239 |
Capitalized internal-use software development costs | ||
Property and Equipment | ||
Total property and equipment | 154,117 | 142,489 |
Data center equipment | ||
Property and Equipment | ||
Total property and equipment | 49,627 | 43,477 |
Leasehold improvements | ||
Property and Equipment | ||
Total property and equipment | 70,663 | 69,756 |
Office equipment | ||
Property and Equipment | ||
Total property and equipment | 45,040 | 35,346 |
Furniture and fixtures | ||
Property and Equipment | ||
Total property and equipment | 12,808 | 12,312 |
Software | ||
Property and Equipment | ||
Total property and equipment | $ 10,218 | $ 9,943 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization | $ 14,400 | $ 11,900 |
Capitalized internal use software development costs | 15,100 | 12,000 |
Stock-based compensation capitalized in software development costs | 4,650 | 3,418 |
Capitalized Computer Software, Amortization | $ 4,500 | $ 4,600 |
Right-of-Use Asset and Lease _3
Right-of-Use Asset and Lease Liabilities - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)property | |
Lessee, Lease, Description [Line Items] | |
Number of leased properties | property | 24 |
Renewal option | 5 years |
Operating lease, not yet commenced, liability | $ 11 |
Finance lease not yet commenced, liability | $ 0 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Term of lease | 1 month 6 days |
Operating lease, not yet commenced, term of contract | 6 years 2 months 12 days |
Right-of-Use Asset and Lease _4
Right-of-Use Asset and Lease Liabilities - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 14,873 | $ 10,424 |
Finance lease cost: | ||
Amortization of assets | 2,680 | 1,904 |
Interest on lease liabilities | 263 | 198 |
Short-term lease cost | 1,692 | 1,412 |
Variable lease cost | 2,900 | 1,296 |
Total net lease cost | $ 22,408 | $ 15,234 |
Right-of-Use Asset and Lease _5
Right-of-Use Asset and Lease Liabilities - Balance Sheet Classification of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
ASSETS | ||
Operating lease assets | $ 241,328 | $ 258,610 |
Finance lease assets | 28,357 | 25,771 |
Total leased assets | 269,685 | 284,381 |
Current liabilities: | ||
Operating | 46,239 | 48,338 |
Finance | 9,389 | 9,062 |
Noncurrent liabilities | ||
Operating | 214,456 | 229,905 |
Finance | 19,933 | 17,856 |
Total lease liabilities | 290,017 | 305,161 |
Operating lease accumulated amortization | 65,200 | 57,100 |
Finance lease accumulated depreciation | $ 17,700 | $ 15,000 |
Right-of-Use Asset and Lease _6
Right-of-Use Asset and Lease Liabilities - Supplemental Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 14,691 | $ 9,953 | |
Operating cash flows from finance leases (interest) | 263 | 198 | |
Financing cash flows from finance leases | $ 2,748 | $ 1,881 | |
Weighted average remaining lease term (in years): | |||
Operating leases | 5 years 10 months 24 days | 5 years 9 months 18 days | |
Finance leases | 3 years 4 months 24 days | 2 years 10 months 24 days | |
Weighted average discount rate: | |||
Operating leases (as a percent) | 4.80% | 5.70% | |
Finance leases (as a percent) | 3.70% | 5.30% |
Right-of-Use Asset and Lease _7
Right-of-Use Asset and Lease Liabilities - Lease Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Maturity Of Operating Lease Liabilities | ||
2021 (remaining nine months) | $ 42,698 | |
2022 | 57,060 | |
2023 | 48,937 | |
2024 | 44,373 | |
2025 | 32,167 | |
Thereafter | 75,304 | |
Total lease payments | 300,539 | |
Less: imputed interest | (39,844) | |
Total lease obligations | 260,695 | |
Less: current obligations | (46,239) | $ (48,338) |
Long-term lease obligations | 214,456 | 229,905 |
Maturity Of Finance Lease Liabilities | ||
2021 (remaining nine months) | 7,911 | |
2022 | 8,987 | |
2023 | 8,240 | |
2024 | 4,999 | |
2025 | 547 | |
Thereafter | 518 | |
Total lease payments | 31,202 | |
Less: imputed interest | (1,880) | |
Total lease obligations | 29,322 | |
Less: current obligations | (9,389) | (9,062) |
Long-term lease obligations | $ 19,933 | $ 17,856 |
Business Combinations - Conside
Business Combinations - Consideration (Details) - ValueFirst - USD ($) $ in Millions | Mar. 12, 2021 | Mar. 31, 2021 |
Acquisition | ||
Payments to acquire businesses, gross | $ 70.2 | |
Acquisition related costs | $ 1.3 |
Business Combinations - Purchas
Business Combinations - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 12, 2021 | Dec. 31, 2020 |
Acquisition | |||
Goodwill | $ 4,635,177 | $ 4,595,394 | |
ValueFirst | |||
Acquisition | |||
Net liabilities | $ 9,756 | ||
Intangible assets | 30,300 | ||
Deferred tax liability | (6,179) | ||
Goodwill | 36,356 | ||
Total purchase price | $ 70,233 |
Business Combinations - Identif
Business Combinations - Identifiable Finite-lived Intangible Assets (Details) - ValueFirst $ in Thousands | Mar. 12, 2021USD ($) |
Acquisitions | |
Intangible assets | $ 30,300 |
Developed technology | |
Acquisitions | |
Intangible assets | $ 6,700 |
Intangible assets, estimated life | 7 years |
Customer relationships | |
Acquisitions | |
Intangible assets | $ 11,200 |
Intangible assets, estimated life | 7 years |
Trademark and tradename | |
Acquisitions | |
Intangible assets | $ 4,700 |
Intangible assets, estimated life | 5 years |
Supplier relationships | |
Acquisitions | |
Intangible assets | $ 7,700 |
Intangible assets, estimated life | 5 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Rollforward (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill | |
Balance (beginning of period) | $ 4,595,394 |
Goodwill additions and adjustments | 39,783 |
Balance (end of period) | $ 4,635,177 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Amortizable intangible assets: | ||
Gross | $ 1,177,717 | $ 1,147,219 |
Accumulated Amortization | (231,048) | (185,861) |
Net | 946,669 | 961,358 |
Intangible assets, gross | 1,182,932 | 1,152,434 |
Total | 951,884 | 966,573 |
Trademark and tradename | ||
Amortizable intangible assets: | ||
Non-amortizable intangible assets: | 4,920 | 4,920 |
Trademarks and other | ||
Amortizable intangible assets: | ||
Non-amortizable intangible assets: | 295 | 295 |
Developed technology | ||
Amortizable intangible assets: | ||
Gross | 731,311 | 724,599 |
Accumulated Amortization | (139,293) | (113,282) |
Net | 592,018 | 611,317 |
Customer relationships | ||
Amortizable intangible assets: | ||
Gross | 390,564 | 379,344 |
Accumulated Amortization | (74,466) | (59,574) |
Net | 316,098 | 319,770 |
Supplier relationships | ||
Amortizable intangible assets: | ||
Gross | 12,071 | 4,356 |
Accumulated Amortization | (3,461) | (3,044) |
Net | 8,610 | 1,312 |
Trade names | ||
Amortizable intangible assets: | ||
Gross | 30,268 | 25,560 |
Accumulated Amortization | (9,252) | (7,921) |
Net | 21,016 | 17,639 |
Order backlog | ||
Amortizable intangible assets: | ||
Gross | 10,000 | 10,000 |
Accumulated Amortization | (4,167) | (1,667) |
Net | 5,833 | 8,333 |
Patent | ||
Amortizable intangible assets: | ||
Gross | 3,503 | 3,360 |
Accumulated Amortization | (409) | (373) |
Net | $ 3,094 | $ 2,987 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 45.2 | $ 20.3 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Total Estimated Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Intangible Assets | ||
2021 (remaining nine months) | $ 136,983 | |
2022 | 172,264 | |
2023 | 168,954 | |
2024 | 163,380 | |
2025 | 161,067 | |
Thereafter | 144,021 | |
Net | $ 946,669 | $ 961,358 |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities - Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Accrued payroll and related | $ 55,713 | $ 54,683 |
Accrued bonus and commission | 18,582 | 25,341 |
Accrued cost of revenue | 88,882 | 80,620 |
Sales and other taxes payable | 51,069 | 48,390 |
ESPP contributions | 16,202 | 6,272 |
Finance lease liability, current | 9,389 | 9,062 |
Accrued other expense | 53,821 | 28,527 |
Total accrued expenses and other current liabilities | $ 293,658 | $ 252,895 |
Accrued Expenses and Other Li_4
Accrued Expenses and Other Liabilities - Long-term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities and Other Liabilities [Abstract] | ||
Deferred tax liability | $ 19,031 | $ 13,684 |
Acquisition holdback | 8,751 | 8,800 |
Accrued other expenses | 14,842 | 14,149 |
Total other long-term liabilities | $ 42,624 | $ 36,633 |
Notes Payable - Summary of Long
Notes Payable - Summary of Long-Term Debt (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | May 31, 2018 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,218,048,000 | $ 302,068,000 | |
Senior Notes 3.525 Percent Due 2029 | |||
Debt Instrument [Line Items] | |||
Principal | 500,000,000 | 0 | |
Unamortized discount | (6,209,000) | 0 | |
Unamortized issuance costs | (1,213,000) | 0 | |
Long-term debt | 492,578,000 | 0 | |
Senior Notes 3.875 Percent Due 2031 | |||
Debt Instrument [Line Items] | |||
Principal | 500,000,000 | 0 | |
Unamortized discount | (6,219,000) | 0 | |
Unamortized issuance costs | (1,216,000) | 0 | |
Long-term debt | 492,565,000 | 0 | |
Convertible senior notes, 0.25%, due 2023 | |||
Debt Instrument [Line Items] | |||
Principal | 261,570,000 | 343,702,000 | $ 550,000,000 |
Unamortized discount | (26,455,000) | (38,406,000) | |
Unamortized issuance costs | (2,210,000) | (3,228,000) | $ (10,200,000) |
Long-term debt | $ 232,905,000 | $ 302,068,000 |
Notes Payable - Issuance (Detai
Notes Payable - Issuance (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
May 31, 2018 | Mar. 31, 2021 | Dec. 31, 2020 | |
Senior Notes | |||
Debt Instrument [Line Items] | |||
Principal | $ 1,000,000,000 | ||
Net proceeds from the debt offering | 985,100,000 | ||
Debt issuance costs, gross | 2,400,000 | ||
Senior Notes 3.525 Percent Due 2029 | |||
Debt Instrument [Line Items] | |||
Principal | $ 500,000,000 | $ 0 | |
Interest rate (as a percent) | 3.625% | ||
Senior Notes 3.875 Percent Due 2031 | |||
Debt Instrument [Line Items] | |||
Principal | $ 500,000,000 | 0 | |
Interest rate (as a percent) | 3.875% | ||
Convertible senior notes, 0.25%, due 2023 | |||
Debt Instrument [Line Items] | |||
Principal | $ 550,000,000 | $ 261,570,000 | $ 343,702,000 |
Interest rate (as a percent) | 0.25% | ||
Net proceeds from the debt offering | $ 537,000,000 | ||
Convertible senior notes, 0.25%, due 2023 - over-allotment | |||
Debt Instrument [Line Items] | |||
Principal | $ 75,000,000 |
Notes Payable - Terms (Details)
Notes Payable - Terms (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | |||
May 31, 2018USD ($)$ / shares | Mar. 31, 2021USD ($)D$ / sharesshares | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |||
Carrying amount of equity component | $ 342,700 | ||||
Effective percentage | 5.70% | ||||
Debt conversion, converted instrument, amount including cash | $ 422,700 | ||||
Debt instrument, liability component | 80,100 | ||||
Loss on extinguishment of debt | $ (7,602) | $ 0 | |||
Common Stock Class A | |||||
Debt Instrument [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||||
Common Stock Class A | Common Stock | |||||
Debt Instrument [Line Items] | |||||
Equity component from partial settlement of 2023 convertible senior notes (in shares) | shares | 1,158,381 | ||||
Senior Notes 3.525 Percent Due 2029 | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 3.625% | ||||
Unamortized issuance costs | $ (1,213) | $ 0 | |||
Senior Notes 3.525 Percent Due 2029 | Redemption Period One | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, maximum redemption price as a percentage of principal 180 days after equity offer | 40.00% | ||||
Debt instrument, minimum redemption price as a percentage of principal outstanding | 50.00% | ||||
Senior Notes 3.525 Percent Due 2029 | Redemption Period One | Minimum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Senior Notes 3.525 Percent Due 2029 | Redemption Period One | Maximum | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 103.625% | ||||
Senior Notes 3.525 Percent Due 2029 | Redemption Period Two | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 101.813% | ||||
Senior Notes 3.525 Percent Due 2029 | Redemption Period Three | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.906% | ||||
Senior Notes 3.525 Percent Due 2029 | Redemption Period Four | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Senior Notes 3.875 Percent Due 2031 | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 3.875% | ||||
Unamortized issuance costs | $ (1,216) | 0 | |||
Senior Notes 3.875 Percent Due 2031 | Redemption Period One | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 103.875% | ||||
Debt instrument, maximum redemption price as a percentage of principal 180 days after equity offer | 40.00% | ||||
Debt instrument, minimum redemption price as a percentage of principal outstanding | 50.00% | ||||
Senior Notes 3.875 Percent Due 2031 | Redemption Period Two | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Senior Notes 3.875 Percent Due 2031 | Redemption Period Three | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 101.938% | ||||
Senior Notes 3.875 Percent Due 2031 | Redemption Period Four | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 101.292% | ||||
Senior Notes 3.875 Percent Due 2031 | Redemption Period Five | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.646% | ||||
Senior Notes 3.875 Percent Due 2031 | Redemption Period Six | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, redemption price, percentage | 100.00% | ||||
Convertible senior notes, 0.25%, due 2023 | |||||
Debt Instrument [Line Items] | |||||
Threshold trading days | D | 20 | ||||
Consecutive trading period | D | 30 | ||||
Minimum sale price of stock as a percentage of the conversion price | 130.00% | ||||
Number of consecutive trading days of threshold Notes trading price for conversion eligibility to follow | D | 5 | ||||
Trading price as a percentage of the product of common stock sale price and conversion rate | 98.00% | ||||
Percentage of principal amount of the Notes | 100.00% | ||||
Interest rate (as a percent) | 0.25% | ||||
Carrying amount of equity component | $ 56,801 | 74,636 | $ 119,400 | ||
Unamortized issuance costs | $ (10,200) | (2,210) | $ (3,228) | ||
Debt settlement, amount | $ 82,100 | ||||
Convertible senior notes, 0.25%, due 2023 | Common Stock Class A | |||||
Debt Instrument [Line Items] | |||||
Conversion ratio | 14.104 | ||||
Capped calls | |||||
Debt Instrument [Line Items] | |||||
Initial strike price (in dollars per share) | $ / shares | $ 70.90 |
Notes Payable - Net Carrying Am
Notes Payable - Net Carrying Amount (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net carrying amount of the equity component of the Notes | |||
Proceeds allocated to the conversion options (debt discount) | $ 342,700 | ||
Issuance costs | (727) | ||
Convertible senior notes, 0.25%, due 2023 | |||
Net carrying amount of the equity component of the Notes | |||
Proceeds allocated to the conversion options (debt discount) | 56,801 | $ 74,636 | $ 119,400 |
Issuance costs | (2,819) | (2,819) | |
Net carrying amount | $ 53,982 | $ 71,817 |
Notes Payable - Interest Expens
Notes Payable - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Interest expense recognized related to the Notes | ||
Amortization of debt discount and issuance costs | $ 3,373 | $ 6,178 |
Senior Notes 3.525 Percent Due 2029 | ||
Interest expense recognized related to the Notes | ||
Contractual interest expense | 1,120 | |
Amortization of debt discount | 49 | |
Total interest expense | 1,169 | |
Senior Notes 3.875 Percent Due 2031 | ||
Interest expense recognized related to the Notes | ||
Contractual interest expense | 1,197 | |
Amortization of debt discount | 37 | |
Total interest expense | 1,234 | |
Convertible senior notes, 0.25%, due 2023 | ||
Interest expense recognized related to the Notes | ||
Contractual interest expense | 170 | 344 |
Amortization of debt discount and issuance costs | 259 | 484 |
Amortization of debt discount | 3,028 | 5,694 |
Total interest expense | $ 3,457 | $ 6,522 |
Notes Payable - Capped Calls (D
Notes Payable - Capped Calls (Details) - Capped calls $ / shares in Units, $ in Millions | 1 Months Ended |
May 31, 2018USD ($)$ / sharesshares | |
Capped calls | |
Initial strike price (in dollars per share) | $ 70.90 |
Initial cap price (in dollars per share) | $ 105.04 |
Number of shares covered | shares | 7,757,200 |
Net cost to purchase the transactions | $ | $ 58.5 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Allowance for doubtful accounts | ||
Balance, beginning of period | $ 12,046 | $ 6,287 |
Additions | 3,381 | 4,261 |
Write-offs | (2,036) | (1,463) |
Balance, end of period | $ 13,391 | $ 9,085 |
Percentage of revenue | 2.00% | 2.00% |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Sales Credit Reserve (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Sales credit reserve | ||
Percentage of revenue | 3.00% | 3.00% |
Sales credit reserve | ||
Sales credit reserve | ||
Balance, beginning of period | $ 16,783 | $ 6,784 |
Additions | 15,466 | 8,174 |
Deductions against reserve | (14,998) | (5,271) |
Balance, end of period | $ 17,251 | $ 9,687 |
Revenue by Geographic Area - Re
Revenue by Geographic Area - Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue by geographic area: | ||
Revenue | $ 589,988 | $ 364,868 |
United States | ||
Revenue by geographic area: | ||
Revenue | 421,531 | 261,813 |
International | ||
Revenue by geographic area: | ||
Revenue | $ 168,457 | $ 103,055 |
Revenue by Geographic Area - Pe
Revenue by Geographic Area - Percentage of Revenue by Geographic Area (Details) - Revenue from Contract with Customer Benchmark - Geographic Concentration Risk | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
United States | ||
Percentage of revenue by geographic area: | ||
Percentage of revenue (as a percent) | 71.00% | 72.00% |
International | ||
Percentage of revenue by geographic area: | ||
Percentage of revenue (as a percent) | 29.00% | 28.00% |
Commitments and Contingencies -
Commitments and Contingencies - Other Commitments (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
Long-term Purchase Commitment [Line Items] | |||
Term of non-cancellable agreement | 3 years | ||
Purchase commitment | $ 426,900 | ||
Payments to acquire investments | 1,640,499 | $ 228,025 | |
Syniverse | |||
Long-term Purchase Commitment [Line Items] | |||
Payments to acquire investments | $ 750,000 | ||
Deferred costs | $ 3,300 | ||
Minimum | |||
Long-term Purchase Commitment [Line Items] | |||
Term of non-cancellable lease | 1 year | ||
Maximum | |||
Long-term Purchase Commitment [Line Items] | |||
Term of non-cancellable lease | 8 years |
Commitments and Contingencies_2
Commitments and Contingencies - Indemnification Agreements (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Indemnification Agreements | ||
Loss Contingencies [Line Items] | ||
Amount accrued | $ 0 | $ 0 |
Commitments and Contingencies_3
Commitments and Contingencies - Other taxes (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Taxes payable, jurisdictional estimate | $ 38.8 | |
Accrued taxes | 11.5 | |
Liability for uncertain tax positions | $ 26.6 | $ 25.6 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock (Details) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Preferred Stock | ||
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock (Details) | Mar. 31, 2021vote$ / sharesshares | Dec. 31, 2020vote$ / sharesshares | May 31, 2018$ / shares |
Common Stock | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | |
Common Stock Class A | |||
Common Stock | |||
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 | |
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | ||
Common stock, issued (in shares) | 160,588,258 | 153,496,222 | |
Common stock, outstanding (in shares) | 160,588,258 | 153,496,222 | |
Votes per share | vote | 1 | ||
Common Stock Class B | |||
Common Stock | |||
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 | |
Common stock, issued (in shares) | 10,343,302 | 10,551,302 | |
Common stock, outstanding (in shares) | 10,343,302 | 10,551,302 | |
Votes per share | vote | 10 |
Stockholders' Equity - Common_2
Stockholders' Equity - Common Stock Shares Reserved (Details) - shares | Mar. 31, 2021 | Dec. 31, 2020 |
Stockholders' Equity | ||
Total (in shares) | 52,524,818 | 45,310,099 |
2016 Stock Option and Incentive Plan | ||
Stockholders' Equity | ||
Stock-based awards available for grant under 2016 Plan (in shares) | 26,871,942 | 18,942,205 |
Common Stock Class A | ||
Stockholders' Equity | ||
Class A common stock reserved for Twilio.org (in shares) | 685,163 | 707,265 |
Class A common stock reserved for the convertible senior notes (in shares) | 6,411,350 | 7,569,731 |
Stock options issued and outstanding | ||
Stockholders' Equity | ||
Stock options issued and outstanding (in shares) | 5,216,385 | 5,625,735 |
Restricted stock units issued and outstanding | ||
Stockholders' Equity | ||
Unvested restricted stock units and awards issued and outstanding (in shares) | 6,758,222 | 7,523,882 |
Nonvested restricted stock units issued and outstanding (in shares) | 6,758,222 | 7,523,882 |
Class A common stock committed under 2016 ESPP | ||
Stockholders' Equity | ||
Stock-based awards available for grant under 2016 Plan (in shares) | 6,581,756 | 4,941,281 |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity - Public Offering (Details) - Common Stock Class A $ / shares in Units, $ in Billions | 1 Months Ended |
Feb. 28, 2021USD ($)$ / sharesshares | |
Class of Stock [Line Items] | |
Shares sold in offering (in shares) | shares | 4,312,500 |
Offering price per share (in dollars per share) | $ / shares | $ 409.60 |
Aggregate proceeds from stock offering | $ | $ 1.8 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2021 | Mar. 31, 2021 |
Class A common stock committed under 2016 ESPP | ||
Stock Based Compensation | ||
Increase in shares available for grant (in shares) | 1,640,475 | |
Weighted-average period (in years) | 1 month 6 days | |
Performance-based stock options | ||
Stock Based Compensation | ||
Granted (in shares) | 555,000 | |
Options vested and exercisable - number of options outstanding (in shares) | 543,437 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 31.72 | |
RSAs | ||
Stock Based Compensation | ||
Granted (in shares) | 24,697 | |
Granted (in dollars per share) | $ 359.80 | |
Outstanding RSUs, aggregate intrinsic value | $ 8.9 | |
Class A shares in escrow subject to future vesting | ||
Stock Based Compensation | ||
Outstanding RSUs, aggregate intrinsic value | $ 88.1 | |
Shares subject to future vesting conditions (in shares) | 258,554 | |
Weighted-average period (in years) | 2 years 6 months | |
Shares subject to future vesting conditions, weighted average grant date fair value (in dollars per share) | $ 273.38 | |
2016 Stock Option and Incentive Plan | ||
Stock Based Compensation | ||
Increase in shares available for grant (in shares) | 8,202,376 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Activity (Details) - Employee and nonemployee stock options - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Number of options outstanding | |||
Outstanding options as of the beginning of the period (in shares) | 5,070,735 | ||
Granted (in shares) | 108,429 | ||
Exercised (in shares) | (459,379) | ||
Forfeited and cancelled (in shares) | (58,400) | ||
Outstanding options as of the end of the period (in shares) | 4,661,385 | ||
Weighted- average exercise price (Per share) | |||
Outstanding options as of the beginning of the period (in dollars per share) | $ 51.71 | ||
Granted (in dollars per share) | 378.11 | ||
Exercised (in dollars per share) | 25.17 | ||
Forfeited and cancelled (in dollars per share) | 62.63 | ||
Outstanding options as of the end of the period (in dollars per share) | $ 61.78 | ||
Weighted- average remaining contractual term (In years) | |||
Weighted-average remaining contractual term (in years) | 6 years 8 months 1 day | 6 years 10 months 6 days | |
Aggregate intrinsic value | $ 1,304,466 | $ 1,454,222 | |
Options vested and exercisable and options vested and expected to vest | |||
Options vested and exercisable - number of options outstanding (in shares) | 2,609,089 | ||
Options vested and exercisable - weighted-average exercise price (in dollars per share) | $ 26.89 | ||
Options vested and exercisable - weighted-average remaining contractual term | 5 years 4 months 6 days | ||
Options vested and exercisable - aggregate intrinsic value | $ 818,926 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Options - Additional Information (Details) - Employee and nonemployee stock options - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Stock Based Compensation | ||
Aggregate intrinsic value of stock options exercised | $ 165,559 | $ 68,359 |
Total estimated grant date fair value of options vested | $ 31,979 | $ 23,335 |
Weighted-average grant date fair value per share of options granted (in dollars per share) | $ 205.36 | $ 60.47 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units Activity (Details) - Restricted stock units issued and outstanding - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Number of awards outstanding | ||
Nonvested RSUs at the beginning of the period (in shares) | 7,523,882 | |
Granted (in shares) | 314,291 | |
Vested (in shares) | (919,022) | |
Forfeited and canceled (in shares) | (160,929) | |
Nonvested RSUs at the end of the period (in shares) | 6,758,222 | |
Weighted- average grant date fair value (Per share) | ||
Nonvested RSUs at the beginning of the period (in dollars per share) | $ 131.76 | |
Granted (in dollars per share) | 389.26 | |
Vested (in dollars per share) | 84.12 | |
Forfeited and canceled (in dollars per share) | 124.66 | |
Nonvested RSUs at the end of the period (in dollars per share) | $ 150.39 | |
Aggregate intrinsic value (In thousands) | ||
Aggregate intrinsic value | $ 2,302,932 | $ 2,542,858 |
Stock-Based Compensation - Re_2
Stock-Based Compensation - Restricted Stock Units - Unrecognized Compensation Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Stock Based Compensation | |
Unvested stock options | $ 225,119 |
Total | $ 1,209,635 |
Equity Option | |
Stock Based Compensation | |
Weighted-average period (in years) | 2 years 4 months 24 days |
Restricted stock units issued and outstanding | |
Stock Based Compensation | |
Unrecognized compensation cost, other than options | $ 923,508 |
Weighted-average period (in years) | 2 years 10 months 24 days |
Class A shares in escrow subject to future vesting | |
Stock Based Compensation | |
Unrecognized compensation cost, other than options | $ 58,889 |
Weighted-average period (in years) | 2 years 6 months |
Class A common stock committed under 2016 ESPP | |
Stock Based Compensation | |
Unrecognized compensation cost, other than options | $ 2,119 |
Weighted-average period (in years) | 1 month 6 days |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions (Details) - Employee stock options - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Valuation Assumptions | ||
Expected term (in years) | 6 years 29 days | 6 years 29 days |
Expected volatility, low end of range (as a percent) | 58.30% | |
Expected volatility, high end of range (as a percent) | 58.40% | 51.90% |
Risk-free interest rate, low end of range (as a percent) | 0.80% | 1.30% |
Risk-free interest rate, high end of range (as a percent) | 1.00% | 1.40% |
Dividend rate (as a percent) | 0.00% | 0.00% |
Minimum | ||
Valuation Assumptions | ||
Fair value of common stock (in dollars per share) | $ 377.6 | $ 117.9 |
Maximum | ||
Valuation Assumptions | ||
Fair value of common stock (in dollars per share) | $ 409.2 | $ 126.7 |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Stock-Based Compensation Expense | ||
Stock-based compensation expense | $ 137,155 | $ 69,025 |
Cost of revenue | ||
Stock-Based Compensation Expense | ||
Stock-based compensation expense | 2,717 | 1,837 |
Research and development | ||
Stock-Based Compensation Expense | ||
Stock-based compensation expense | 56,959 | 33,209 |
Sales and marketing | ||
Stock-Based Compensation Expense | ||
Stock-based compensation expense | 41,636 | 19,943 |
General and administrative | ||
Stock-Based Compensation Expense | ||
Stock-based compensation expense | $ 35,843 | $ 14,036 |
Net Loss per Share Attributab_3
Net Loss per Share Attributable to Common Stockholders - General Information (Details) - vote | Mar. 31, 2021 | Dec. 31, 2020 |
Common Stock Class A | ||
Net Loss Per Share Attributable to Common Stockholders | ||
Votes per share | 1 | |
Common Stock Class B | ||
Net Loss Per Share Attributable to Common Stockholders | ||
Votes per share | 10 |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Common Stockholders - Basic and Diluted Net Loss per Share Attributable to Common Stockholders (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net Loss Per Share Attributable to Common Stockholders | ||
Net loss attributable to common stockholders (in thousands) | $ (206,542) | $ (94,791) |
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted (in shares) | 167,160,458 | 139,231,594 |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (1.24) | $ (0.68) |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (1.24) | $ (0.68) |
Net Loss Per Share Attributab_5
Net Loss Per Share Attributable to Common Stockholders - Anti-Dilutive Securities (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Anti-dilutive securities | ||
Antidilutive securities (in shares) | 16,815,207 | 19,266,388 |
Conversion price (in dollars per share) | $ 70.90 | |
Stock options issued and outstanding | ||
Anti-dilutive securities | ||
Antidilutive securities (in shares) | 5,216,385 | 7,492,970 |
Restricted stock units issued and outstanding | ||
Anti-dilutive securities | ||
Antidilutive securities (in shares) | 6,758,222 | 8,039,823 |
Class A common stock reserved for Twilio.org | ||
Anti-dilutive securities | ||
Antidilutive securities (in shares) | 685,163 | 773,571 |
Class A common stock committed under 2016 ESPP | ||
Anti-dilutive securities | ||
Antidilutive securities (in shares) | 101,030 | 212,028 |
Convertible senior notes | ||
Anti-dilutive securities | ||
Antidilutive securities (in shares) | 3,689,177 | 2,747,996 |
Class A common stock in escrow | ||
Anti-dilutive securities | ||
Antidilutive securities (in shares) | 75,612 | 0 |
Class A common stock in escrow and restricted stock awards subject to future vesting | ||
Anti-dilutive securities | ||
Antidilutive securities (in shares) | 289,618 | 0 |
Income Taxes Income Taxes - Add
Income Taxes Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income Tax expense (benefit) | $ 890 | $ 977 |