COVER PAGE
COVER PAGE - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 19, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-35480 | |
Entity Registrant Name | Enphase Energy, Inc. | |
Entity Incorporation, State | DE | |
Entity Tax Identification Number | 20-4645388 | |
Entity Address, Address Line One | 47281 Bayside Parkway | |
Entity Address, City or Town | Fremont | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94538 | |
City Area Code | 707 | |
Local Phone Number | 774-7000 | |
Title of 12(b) Security | Common Stock, $0.00001 par value per share | |
Trading Symbol | ENPH | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 136,062,737 | |
Entity Central Index Key | 0001463101 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 253,652 | $ 288,748 |
Marketable securities | 1,375,941 | 1,406,286 |
Accounts receivable, net of allowances of $1,739 and $2,502 at March 31, 2024 and December 31, 2023, respectively | 364,364 | 445,959 |
Inventory | 207,893 | 213,595 |
Prepaid expenses and other assets | 100,721 | 88,930 |
Total current assets | 2,302,571 | 2,443,518 |
Property and equipment, net | 158,303 | 168,244 |
Operating lease, right of use asset, net | 19,875 | 19,887 |
Intangible assets, net | 62,625 | 68,536 |
Goodwill | 213,625 | 214,562 |
Other assets | 214,119 | 215,895 |
Deferred tax assets, net | 261,862 | 252,370 |
Total assets | 3,232,980 | 3,383,012 |
Current liabilities: | ||
Accounts payable | 71,751 | 116,164 |
Accrued liabilities | 234,391 | 261,919 |
Deferred revenues, current | 119,821 | 118,300 |
Warranty obligations, current | 30,868 | 36,066 |
Debt, current | 97,264 | 0 |
Total current liabilities | 554,095 | 532,449 |
Long-term liabilities: | ||
Deferred revenues, non-current | 359,300 | 369,172 |
Warranty obligations, non-current | 146,296 | 153,021 |
Other liabilities | 51,962 | 51,008 |
Debt, non-current | 1,198,604 | 1,293,738 |
Total liabilities | 2,310,257 | 2,399,388 |
Commitments and contingencies (Note 10) | ||
Stockholders’ equity: | ||
Common stock, $0.00001 par value, 300,000 shares authorized; and 135,989 shares and 135,722 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively | 1 | 1 |
Additional paid-in capital | 941,315 | 939,338 |
Accumulated earnings (deficit) | (11,820) | 46,273 |
Accumulated other comprehensive loss | (6,773) | (1,988) |
Total stockholders’ equity | 922,723 | 983,624 |
Total liabilities and stockholders’ equity | $ 3,232,980 | $ 3,383,012 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 1,739 | $ 2,502 |
Common stock, par value (in usd per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 300,000 | 300,000 |
Common stock, shares issued (in shares) | 135,989 | 135,722 |
Common stock, shares outstanding (in shares) | 135,989 | 135,722 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net revenues | $ 263,339 | $ 726,016 |
Cost of revenues | 147,831 | 399,645 |
Gross profit | 115,508 | 326,371 |
Operating expenses: | ||
Research and development | 54,211 | 57,129 |
Sales and marketing | 53,307 | 64,621 |
General and administrative | 35,182 | 36,265 |
Restructuring and asset impairment charges | 1,907 | 693 |
Total operating expenses | 144,607 | 158,708 |
Income (loss) from operations | (29,099) | 167,663 |
Other income, net | ||
Interest income | 19,709 | 13,040 |
Interest expense | (2,196) | (2,156) |
Other income, net | 87 | 426 |
Total other income, net | 17,600 | 11,310 |
Income (loss) before income taxes | (11,499) | 178,973 |
Income tax provision | (4,598) | (32,100) |
Net (loss) income | $ (16,097) | $ 146,873 |
Net (loss) income per share: | ||
Basic (in shares) | $ (0.12) | $ 1.07 |
Diluted (in shares) | $ (0.12) | $ 1.02 |
Shares used in per share calculation: | ||
Basic (in shares) | 135,891 | 136,689 |
Diluted (in shares) | 135,891 | 145,986 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (16,097) | $ 146,873 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (2,974) | 1,077 |
Marketable securities | ||
Change in net unrealized gain (loss), net of income tax benefit (provision) of $(604) and $1,079 for the three months ended March 31, 2024 and 2023, respectively. | (1,811) | 3,071 |
Comprehensive income (loss) | $ (20,882) | $ 151,021 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Marketable Securities, income tax benefit | $ (604) | $ 1,079 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock and paid-in capital | Accumulated Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) |
Balance, beginning of period at Dec. 31, 2022 | $ 819,120 | $ 17,335 | $ (10,882) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock from exercise of equity awards and employee stock purchase plan | 40 | |||
Issuance of common stock related to 365 Pronto, Inc. post combination expense | 6,307 | |||
Payment of withholding taxes related to net share settlement of equity awards | (71,845) | |||
Stock-based compensation | 58,997 | |||
Net income (loss) | $ 146,873 | 146,873 | ||
Foreign currency translation adjustments | 1,077 | 1,077 | ||
Change in net unrealized gain (loss) on marketable securities, net of tax | 3,071 | |||
Balance, end of period at Mar. 31, 2023 | 970,093 | 812,619 | 164,208 | (6,734) |
Balance, beginning of period at Dec. 31, 2023 | 983,624 | 939,339 | 46,273 | (1,988) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Issuance of common stock from exercise of equity awards and employee stock purchase plan | 1,186 | |||
Payment of withholding taxes related to net share settlement of equity awards | (60,042) | |||
Stock-based compensation | 60,833 | |||
Repurchase of common stock | (41,996) | |||
Net income (loss) | (16,097) | (16,097) | ||
Foreign currency translation adjustments | (2,974) | (2,974) | ||
Change in net unrealized gain (loss) on marketable securities, net of tax | (1,811) | |||
Balance, end of period at Mar. 31, 2024 | $ 922,723 | $ 941,316 | $ (11,820) | $ (6,773) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (16,097) | $ 146,873 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 20,137 | 16,591 |
Net amortization (accretion) of premium (discount) on marketable securities | 2,825 | (7,548) |
Provision (benefit) for doubtful accounts | (130) | 180 |
Asset impairment | 332 | 0 |
Non-cash interest expense | 2,132 | 2,034 |
Net gain from change in fair value of debt securities | (942) | (1,744) |
Stock-based compensation | 60,833 | 59,655 |
Deferred income taxes | (8,292) | (16,181) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 77,359 | (79,529) |
Inventory | 5,702 | (855) |
Prepaid expenses and other assets | (10,897) | (21,457) |
Accounts payable, accrued and other liabilities | (66,284) | 82,540 |
Warranty obligations | (11,923) | 14,588 |
Deferred revenues | (5,554) | 51,085 |
Net cash provided by operating activities | 49,201 | 246,232 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (7,371) | (22,476) |
Purchases of marketable securities | (472,268) | (695,387) |
Maturities and sale of marketable securities | 497,373 | 354,333 |
Net cash provided by (used in) investing activities | 17,734 | (363,530) |
Cash flows from financing activities: | ||
Partial settlement of convertible notes | (2) | 0 |
Proceeds from issuance of common stock under employee equity plans | 1,186 | 40 |
Payment of withholding taxes related to net share settlement of equity awards | (60,042) | (71,845) |
Repurchase of common stock | (41,996) | 0 |
Net cash used in financing activities | (100,854) | (71,805) |
Effect of exchange rate changes on cash and cash equivalents | (1,177) | 1,904 |
Net decrease in cash and cash equivalents | (35,096) | (187,199) |
Cash and cash equivalents—Beginning of period | 288,748 | 473,244 |
Cash and cash equivalents—End of period | 253,652 | 286,045 |
Supplemental disclosures of non-cash investing activities: | ||
Purchases of property and equipment included in accounts payable | $ 7,898 | $ 9,814 |
DESCRIPTION OF BUSINESS AND BAS
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION Description of Business Enphase Energy, Inc. (the “Company”) is a global energy technology company. The Company delivers smart, easy-to-use solutions that manage solar generation, storage and communication on one platform. The Company’s intelligent microinverters work with virtually every solar panel made, and when paired with the Company’s smart technology, results in one of the industry’s best-performing clean energy systems. Basis of Presentation and Consolidation The accompanying condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Unaudited Interim Financial Information These accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial reporting. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring items, considered necessary to present fairly the Company’s financial condition, results of operations, comprehensive income (loss), stockholders’ equity and cash flows for the interim periods indicated. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the operating results for the full year. 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 income and expenses during the reporting period. Significant estimates and assumptions reflected in the financial statements include revenue recognition, allowance for doubtful accounts, stock-based compensation, deferred compensation arrangements, income tax provision, inventory valuation, government grants, accrued warranty obligations, fair value of investments, convertible notes, fair value of acquired intangible assets and goodwill, useful lives of acquired intangible assets and property and equipment, incremental borrowing rate for right-of-use assets and lease liability. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ materially from those estimates due to risks and uncertainties, including uncertainty in the ongoing semiconductor supply and logistic constraints. The year-end condensed consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by U.S. GAAP. The Company filed audited consolidated financial statements, which included all information and notes necessary for such a complete presentation in conjunction with its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 filed with the SEC on February 9, 2024 (the “Form 10‑K”). Summary of Significant Accounting Policies There have been no changes to the Company’s significant accounting policies as described in Note 2, “Summary of Significant Accounting Policies” of the notes to consolidated financial statements included in Part II, Item 8 of the Form 10-K. Recently Issued Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires additional disclosures for segment reporting, including disclosure of the title and position of the Chief Operating Decision Maker and requires a public entity that has a single reportable segment to provide all the disclosures required by the amendments in ASU 2023-07, and all existing segment disclosures in Topic 280. ASU 2023-07 is effective for fiscal periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company plans to adopt ASU 2023-07 effective for the annual report on Form 10-K for the year ended December 31, 2024 and subsequent interim periods. Since ASU 2023-07 addresses only disclosures, the adoption of ASU 2023-07 is not expected to have a significant impact on the Company’s consolidated financial statements. Not Yet Effective In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires that an entity disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold, certain disclosures of state versus federal income tax expenses and taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The Company does not expect the adoption of ASU 2023-09 to have a significant impact on its consolidated financial statements and will adopt the standard effective January 1, 2025. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION Disaggregated Revenue The Company has one major business activity, which is the design, manufacture and sale of solutions for the solar photovoltaic industry. Disaggregated revenue by primary geographical market and timing of revenue recognition for the Company’s single product line are as follows: Three Months Ended 2024 2023 (In thousands) Primary geographical markets: U.S. $ 149,974 $ 472,961 International 113,365 253,055 Total $ 263,339 $ 726,016 Timing of revenue recognition: Products delivered at a point in time $ 233,145 $ 701,652 Products and services delivered over time 30,194 24,364 Total $ 263,339 $ 726,016 Contract Balances Receivables, and contract assets and contract liabilities from contracts with customers, are as follows: March 31, December 31, (In thousands) Receivables $ 364,364 $ 445,959 Short-term contract assets (Prepaid expenses and other assets) 40,915 40,241 Long-term contract assets (Other assets) 121,633 124,190 Short-term contract liabilities (Deferred revenues, current) 119,821 118,300 Long-term contract liabilities (Deferred revenues, non-current) 359,300 369,172 The Company receives payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include deferred product costs and commissions associated with the deferred revenue and will be amortized along with the associated revenue. The Company had no asset impairment charges related to contract assets for the three months ended March 31, 2024. Significant changes in the balances of contract assets (prepaid expenses and other assets) as of March 31, 2024 are as follows (in thousands): Contract Assets Contract Assets, beginning of period $ 164,431 Amount recognized (10,524) Increased due to shipments 8,641 Contract Assets, end of period $ 162,548 Contract liabilities are recorded as deferred revenue on the accompanying condensed consolidated balance sheets and include payments received in advance of performance obligations under the contract and are realized when the associated revenue is recognized under the contract. Significant changes in the balances of contract liabilities (deferred revenues) as of March 31, 2024 are as follows (in thousands): Contract Liabilities Contract Liabilities, beginning of period $ 487,472 Revenue recognized (30,194) Increased due to billings 21,843 Contract Liabilities, end of period $ 479,121 Remaining Performance Obligations Estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period are as follows: March 31, (In thousands) Fiscal year: 2024 (remaining nine months) $ 90,521 2025 113,226 2026 96,983 2027 77,353 2028 56,091 Thereafter 44,947 Total $ 479,121 |
OTHER FINANCIAL INFORMATION
OTHER FINANCIAL INFORMATION | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OTHER FINANCIAL INFORMATION | OTHER FINANCIAL INFORMATION Inventory Inventory consists of the following: March 31, December 31, (In thousands) Raw materials $ 52,452 $ 30,849 Finished goods 155,441 182,746 Total inventory $ 207,893 $ 213,595 Accrued Liabilities Accrued liabilities consist of the following: March 31, December 31, (In thousands) Customer rebates and sales incentives $ 124,769 $ 158,338 Liability due to supply agreements 41,288 32,973 Freight 19,673 19,262 Salaries, commissions, incentive compensation and benefits 14,498 10,316 Income tax payable 1,471 8,531 Operating lease liabilities, current 5,148 5,220 VAT payable 6,033 3,243 Liabilities related to restructuring accruals 399 3,104 Other 21,112 20,932 Total accrued liabilities $ 234,391 $ 261,919 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The Company’s goodwill as of March 31, 2024 and December 31, 2023 was as follows: Goodwill March 31, December 31, (In thousands) Goodwill, beginning of period $ 214,562 $ 213,559 Currency translation adjustment (937) 1,003 Goodwill, end of period $ 213,625 $ 214,562 The Company’s purchased intangible assets as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 Gross Additions Accumulated Amortization Net Gross Additions Accumulated Amortization Impairment Net (In thousands) Intangible assets: Other indefinite-lived intangibles $ 286 $ — $ — $ 286 $ 286 $ — $ — $ — $ 286 Intangible assets with finite lives: Developed technology 51,054 — (29,560) 21,494 51,044 — (27,093) — 23,951 Customer relationships 51,306 — (31,103) 20,203 55,106 — (29,527) (3,807) 21,772 Trade names 37,700 — (17,058) 20,642 37,700 — (15,173) — 22,527 Total purchased intangible assets $ 140,346 $ — $ (77,721) $ 62,625 $ 144,136 $ — $ (71,793) $ (3,807) $ 68,536 During the three months ended March 31, 2024, intangible assets decreased by less than $0.1 million due to the impact of foreign currency translation. Amortization expense related to finite-lived intangible assets were as follows: Three Months Ended 2024 2023 (In thousands) Developed technology $ 2,467 $ 2,455 Customer relationships 1,576 2,454 Trade names 1,885 1,885 Total amortization expense $ 5,928 $ 6,794 Amortization of developed technology is recorded to cost of revenues, amortization of customer relationships and trade names are recorded to sales and marketing expense, and amortization of certain customer relationships is recorded as a reduction to revenue. The expected future amortization expense of intangible assets as of March 31, 2024 is presented below: March 31, (In thousands) Fiscal year: 2024 (remaining nine months) $ 16,811 2025 21,397 2026 19,108 2027 5,023 Total $ 62,339 |
CASH EQUIVALENTS AND MARKETABLE
CASH EQUIVALENTS AND MARKETABLE SECURITIES | 3 Months Ended |
Mar. 31, 2024 | |
Cash and Cash Equivalents [Abstract] | |
CASH EQUIVALENTS AND MARKETABLE SECURITIES | CASH EQUIVALENTS AND MARKETABLE SECURITIES The cash equivalents and marketable securities consist of the following: As of March 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities (In thousands) Money market funds $ 113,904 $ — $ — $ 113,904 $ 113,904 $ — Certificates of deposit 45,432 46 — 45,478 — 45,478 Commercial paper 73,606 16 (49) 73,573 — 73,573 Corporate notes and bonds 424,500 372 (701) 424,171 — 424,171 U.S. Treasuries 170,120 16 (185) 169,951 — 169,951 U.S. Government agency securities 665,055 95 (2,382) 662,768 — 662,768 Total $ 1,492,617 $ 545 $ (3,317) $ 1,489,845 $ 113,904 $ 1,375,941 As of December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities (In thousands) Money market funds $ 132,037 $ — $ — $ 132,037 $ 132,037 $ — Certificates of deposit 55,863 58 (9) 55,912 750 55,162 Commercial paper 71,427 29 (19) 71,437 1,694 69,743 Corporate notes and bonds 406,093 934 (931) 406,096 462 405,634 U.S. Treasuries 327,773 152 (34) 327,891 — 327,891 U.S. Government agency securities 548,391 690 (1,225) 547,856 — 547,856 Total $ 1,541,584 $ 1,863 $ (2,218) $ 1,541,229 $ 134,943 $ 1,406,286 The following table summarizes the contractual maturities of the Company’s cash equivalents and marketable securities as of March 31, 2024: Amortized Cost Fair Value (In thousands) Due within one year $ 1,081,773 $ 1,080,140 Due within one to three years 410,844 409,705 Total $ 1,492,617 $ 1,489,845 All available-for-sale securities have been classified as current, based on management's intent and ability to use the funds in current operations. |
WARRANTY OBLIGATIONS
WARRANTY OBLIGATIONS | 3 Months Ended |
Mar. 31, 2024 | |
Product Warranties Disclosures [Abstract] | |
WARRANTY OBLIGATIONS | WARRANTY OBLIGATIONS The Company’s warranty obligation activities were as follows: Three Months Ended 2024 2023 (In thousands) Warranty obligations, beginning of period $ 189,087 $ 131,446 Accruals for warranties issued during period 6,098 16,171 Expense (benefit) from changes in estimates (12,361) 3,728 Settlements (6,893) (8,894) Increase due to accretion expense 2,905 3,545 Other (1,672) 38 Warranty obligations, end of period 177,164 146,034 Less: warranty obligations, current (30,868) (34,513) Warranty obligations, non-current $ 146,296 $ 111,521 Changes in Estimates In the three months ended March 31, 2024, the Company recorded $12.4 million in warranty benefit from change in estimates, of which $9.3 million related to a decrease in product replacement costs for Enphase IQ ® .Battery storage systems and $3.1 million related to continuing analysis of field performance data and diagnostic root-cause failure analysis for Enphase IQ battery storage systems. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset’s or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: • Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of such assets or liabilities do not entail a significant degree of judgment. • Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. • Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The following table presents assets and liabilities measured at fair value on a recurring basis using the above input categories: March 31, 2024 December 31, 2023 (In thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 113,904 $ — $ — $ 132,037 $ — $ — Certificates of deposit — — — 750 — Commercial paper — — — — 1,694 — Corporate notes and bonds — — — — 462 — Marketable securities: Certificates of deposit — 45,478 — — 55,162 — Commercial paper — 73,573 — — 69,743 — Corporate notes and bonds — 424,171 — — 405,634 — U.S. Treasuries — 169,951 — — 327,891 — U.S. Government agency securities — 662,768 — — 547,856 — Other assets Investments in debt securities — — 80,797 — — 79,855 Total assets measured at fair value $ 113,904 $ 1,375,941 $ 80,797 $ 132,037 $ 1,409,192 $ 79,855 Liabilities: Warranty obligations Current $ — $ — $ 23,486 $ — $ — $ 28,667 Non-current — — 127,064 — — 133,126 Total warranty obligations measured at fair value — — 150,550 — — 161,793 Total liabilities measured at fair value $ — $ — $ 150,550 $ — $ — $ 161,793 Notes due 2028 , Notes due 2026 and Notes due 2025 The Company carries the Notes due 2028 (as defined in Note 9, “Debt”) and Notes due 2026 (as defined in Note 9, “Debt”) at face value less unamortized debt issuance costs on its condensed consolidated balance sheets. The Company carries the Notes due 2025 (as defined in Note 9, “Debt”) at face value less unamortized debt discount and issuance costs on its condensed consolidated balance sheets. As of March 31, 2024, the fair value of the Notes due 2028, Notes due 2026 and Notes due 2025 was $492.3 million, $579.8 million and $154.3 million, respectively. The fair value as of March 31, 2024 was determined based on the closing trading price per $100 principal amount as of the last day of trading for the period. The Company considers the fair value of the Notes due 2028, Notes due 2026 and Notes due 2025 to be a Level 2 measurement as they are not actively traded. Investments in debt securities Investment in debt securities is recorded in “Other assets” on the accompanying condensed consolidated balance sheet as of March 31, 2024 and December 31, 2023. The changes in the balance in investments in debt securities during the period were as follows: Three Months Ended 2024 2023 (In thousands) Balance at beginning of period $ 79,855 $ 56,777 Fair value adjustments included in other income, net 942 1,744 Balance at end of period $ 80,797 $ 58,521 Warranty obligations Fair Value Option for Warranty Obligations Related to Products Sold Since January 1, 2014 The Company estimates the fair value of warranty obligations by calculating the warranty obligations in the same manner as for sales prior to January 1, 2014 and applying an expected present value technique to that result. The expected present value technique, an income approach, converts future amounts into a single current discounted amount. In addition to the key estimates of return rates and replacement costs, the Company used certain Level 3 inputs, which are unobservable and significant to the overall fair value measurement. Such additional assumptions are based on the Company’s credit-adjusted risk-free rate (“discount rate”) and compensation comprised of a profit element and risk premium required of a market participant to assume the obligation. The following table provides information regarding changes in nonfinancial liabilities related to the Company’s warranty obligations measured at fair value on a recurring basis using significant unobservable inputs designated as Level 3 for the periods indicated: Three Months Ended 2024 2023 (In thousands) Balance at beginning of period $ 161,793 $ 106,489 Accruals for warranties issued during period 6,082 16,025 Changes in estimates (12,018) 1,245 Settlements (6,540) (7,834) Increase due to accretion expense 2,905 3,545 Other (1,672) 38 Balance at end of period $ 150,550 $ 119,508 Quantitative and Qualitative Information about Level 3 Fair Value Measurements As of March 31, 2024 and December 31, 2023, the significant unobservable inputs used in the fair value measurement of the Company’s liabilities designated as Level 3 were as follows, of which the monetary impact for change in discount rate is captured in “Change in discount rate” in the table above: Percent Used (Weighted Average) Item Measured at Fair Value Valuation Technique Description of Significant Unobservable Input March 31, December 31, Warranty obligations for products sold since January 1, 2014 Discounted cash flows Profit element and risk premium 17% 17% Credit-adjusted risk-free rate 7% 7% Sensitivity of Level 3 Inputs - Warranty Obligations Each of the significant unobservable inputs is independent of the other. The profit element and risk premium are estimated based on the requirements of a third-party participant willing to assume the Company’s warranty obligations. The discount rate is determined by reference to the Company’s own credit standing at the fair value measurement date. Under the expected present value technique, increasing the profit element and risk premium input by 100 basis points would result in a $1.1 million increase to the liability. Decreasing the profit element and risk premium by 100 basis points would result in a $1.1 million reduction of the liability. Increasing the discount rate by 100 basis points would result in a $10.4 million reduction of the liability. Decreasing the discount rate by 100 basis points would result in a $11.7 million increase to the liability. |
RESTRUCTURING AND ASSET IMPAIRM
RESTRUCTURING AND ASSET IMPAIRMENT CHARGES | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND ASSET IMPAIRMENT CHARGES | RESTRUCTURING AND ASSET IMPAIRMENT CHARGES 2023 Restructuring Plan In the fourth quarter of 2023, the Company implemented a new restructuring plan (the “2023 Restructuring Plan”) designed to increase operational efficiencies and execution, reduce operating costs, and better align the Company’s workforce and cost structure with current market conditions, and the Company’s business needs, strategic priorities and ongoing commitment to profitable growth. The Company plans to complete its restructuring activities under the 2023 Restructuring Plan by June 30, 2024. The following table presents the details of the Company’s restructuring and asset impairment charges and accrued balance under the 2023 Restructuring Plan: Employee Severance and Benefits Contract Termination Charges Asset Impairment Total (In thousands) Balance as of December 31, 2023 $ 1,304 $ 1,800 $ — $ 3,104 Charges 270 1,305 332 1,907 Cash payments (1,152) (1,500) — (2,652) Non-cash settlement and other (267) (1,361) (332) (1,960) Balance as of March 31, 2024 $ 155 $ 244 $ — $ 399 |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The following table provides information regarding the Company’s debt: March 31, December 31, (In thousands) Convertible notes Notes due 2028 $ 575,000 $ 575,000 Less: unamortized debt issuance costs (5,082) (5,408) Carrying amount of Notes due 2028 569,918 569,592 Notes due 2026 632,500 632,500 Less: unamortized debt issuance costs (3,814) (4,317) Carrying amount of Notes due 2026 628,686 628,183 Notes due 2025 102,173 102,175 Less: unamortized debt discount (4,467) (5,644) Less: unamortized debt issuance costs (442) (568) Carrying amount of Notes due 2025 97,264 95,963 Total carrying amount of debt 1,295,868 1,293,738 Less: debt, current (97,264) — Debt, non-current $ 1,198,604 $ 1,293,738 The following table presents the total amount of interest cost recognized in the consolidated statement of operations relating to the Notes: Three Months Ended 2024 2023 (In thousands) Notes due 2028 Amortization of debt issuance costs $ 326 $ 316 Total interest cost recognized $ 326 $ 316 Notes due 2026 Amortization of debt issuance costs $ 503 $ 485 Total interest cost recognized $ 503 $ 485 Notes due 2025 Contractual interest expense $ 64 $ 64 Amortization of debt discount 1,177 1,105 Amortization of debt issuance costs 126 118 Total interest cost recognized $ 1,367 $ 1,287 Convertible Senior Notes due 2023 (the “Notes due 2023”) Contractual interest expense $ — $ 50 Amortization of debt issuance costs — 10 Total interest costs recognized $ — $ 60 Convertible Senior Notes due 2028 On March 1, 2021, the Company issued $575.0 million aggregate principal amount of its 0.0% convertible senior notes due 2028 (the “Notes due 2028”). The Notes due 2028 will not bear regular interest, and the principal amount of the Notes due 2028 will not accrete. The Notes due 2028 are general unsecured obligations and are governed by an indenture between the Company and U.S. Bank National Association, as trustee. The Notes due 2028 will mature on March 1, 2028, unless earlier repurchased by the Company or converted at the option of the holders. The Company received approximately $566.4 million in net proceeds, after deducting the initial purchasers’ discount, from the issuance of the Notes due 2028. The initial conversion rate for the Notes due 2028 is 3.5104 shares of common stock per $1,000 principal amount of the Notes due 2028 (which represents an initial conversion price of approximately $284.87 per share). Upon conversion, the Company will settle conversions of the Notes due 2028 through payment or delivery, as the case may be, of cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company’s election. The Company may not redeem the Notes due 2028 prior to September 6, 2024. The Company may redeem for cash all or any portion of the Notes due 2028, at the Company’s election, on or after September 6, 2024, if the last reported sale price of the Company’s common stock has been greater than or equal to 130% of the conversion price then in effect for the Notes due 2028 ( i.e., $370.33, which is 130% of the current conversion price for the Notes due 2028) for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption. The redemption price will equal 100% of the principal amount of the Notes due 2028 to be redeemed, plus accrued and unpaid special interest, if any to, but excluding, the relevant redemption date. No sinking fund is provided for the Notes due 2028. The Notes due 2028 may be converted on any day prior to the close of business on the business day immediately preceding September 1, 2027, in multiples of $1,000 principal amount, at the option of the holder only under any of the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price for the Notes due 2028 on each applicable trading day; (2) during the five As of March 31, 2024, the unamortized deferred issuance cost for the Notes due 2028 was $5.1 million on the condensed consolidated balance sheet. Notes due 2028 Hedge and Warrant Transactions In connection with the offering of the Notes due 2028, the Company entered into privately-negotiated convertible note hedge transactions (“Notes due 2028 Hedge”) pursuant to which the Company has the option to purchase a total of approximately 2.0 million shares of its common stock (subject to anti-dilution adjustments), which is the same number of shares initially issuable upon conversion of the Notes due 2028, at a price of $284.87 per share. The total cost of the convertible note hedge transactions was approximately $161.6 million. The convertible note hedge transactions are expected generally to reduce potential dilution to the Company’s common stock upon any conversion of the Notes due 2028 and/or offset any cash payments the Company is required to make in excess of the principal amount of converted notes, as the case may be. Additionally, the Company separately entered into privately-negotiated warrant transactions (the “2028 Warrants”) whereby the Company sold warrants to acquire approximately 2.0 million shares of the Company’s common stock (subject to anti-dilution adjustments) at an initial strike price of $397.91 per share. The Company received aggregate proceeds of approximately $123.4 million from the sale of the 2028 Warrants. If the market value per share of the Company’s common stock, as measured under the 2028 Warrants, exceeds the strike price of the 2028 Warrants, the 2028 Warrants will have a dilutive effect on the Company’s earnings per share, unless the Company elects, subject to certain conditions, to settle the 2028 Warrants in cash. Taken together, the purchase of the Notes due 2028 Hedge and the sale of the 2028 Warrants are intended to reduce potential dilution from the conversion of the Notes due 2028 and to effectively increase the overall conversion price from $284.87 to $397.91 per share. The 2028 Warrants are only exercisable on the applicable expiration dates in accordance with the Notes due 2028 Hedge. Subject to the other terms of the 2028 Warrants, the first expiration date applicable to the Notes due 2028 Hedge is June 1, 2028, and the final expiration date applicable to the Notes due 2028 Hedge is July 27, 2028. Given that the transactions meet certain accounting criteria, the Notes due 2028 Hedge and the 2028 Warrants transactions are recorded in stockholders’ equity, and they are not accounted for as derivatives and are not remeasured each reporting period. Convertible Senior Notes due 2026 On March 1, 2021, the Company issued $575.0 million aggregate principal amount of 0.0% convertible senior notes due 2026 (the “Notes due 2026”). In addition, on March 12, 2021, the Company issued an additional $57.5 million aggregate principal amount of the Notes due 2026 pursuant to the initial purchasers’ full exercise of the over-allotment option for additional Notes due 2026. The Notes due 2026 will not bear regular interest, and the principal amount of the Notes due 2026 will not accrete. The Notes due 2026 are general unsecured obligations and are governed by an indenture between the Company and U.S. Bank National Association, as trustee. The Notes due 2026 will mature on March 1, 2026, unless repurchased earlier by the Company or converted at the option of the holders. The Company received approximately $623.0 million in net proceeds, after deducting the initial purchasers’ discount, from the issuance of the Notes due 2026. The initial conversion rate for the Notes due 2026 is 3.2523 shares of common stock per $1,000 principal amount of the Notes due 2026 (which represents an initial conversion price of approximately $307.47 per share). Upon conversion, the Company will settle conversions of Notes due 2026 through payment or delivery, as the case may be, of cash, shares of its common stock or a combination of cash and shares of its common stock, at the Company’s election. The Company may not redeem the Notes due 2026 prior to the September 6, 2023. The Company may redeem for cash all or any portion of the Notes due 2026, at the Company’s election, on or after September 6, 2023, if the last reported sale price of the Company’s common stock has been greater than or equal to 130% of the conversion price then in effect for the Notes due 2026 ( i.e ., $399.71, which is 130% of the current conversion price for the Notes due 2026) for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption. The redemption price will equal 100% of the principal amount of the Notes due 2026 to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the relevant redemption date for the Notes due 2026. The redemption price will be increased as described in the relevant indentures by a number of additional shares of the Company in connection with such optional redemption by the Company. No sinking fund is provided for the Notes due 2026. The Notes due 2026 may be converted on any day prior to the close of business on the business day immediately preceding September 1, 2025, in multiples of $1,000 principal amount, at the option of the holder only under any of the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price of the Notes due 2026 on each applicable trading day; (2) during the five As of March 31, 2024, the unamortized deferred issuance cost for the Notes due 2026 was $3.8 million on the condensed consolidated balance sheet. Notes due 2026 Hedge and Warrant Transactions In connection with the offering of the Notes due 2026 (including in connection with the issuance of additional Notes due 2026 upon the initial purchasers’ exercise of their over-allotment option), the Company entered into privately-negotiated convertible note hedge transactions (the “Notes due 2026 Hedge”) pursuant to which the Company has the option to purchase a total of approximately 2.1 million shares of its common stock (subject to anti-dilution adjustments), which is the same number of shares initially issuable upon conversion of the Notes due 2026, at a price of $307.47 per share, which is the initial conversion price of the Notes due 2026. The total cost of the Notes due 2026 Hedge was approximately $124.6 million. The Notes due 2026 Hedge are expected generally to reduce potential dilution to the Company’s common stock upon any conversion of the Notes due 2026 and/or offset any cash payments the Company is required to make in excess of the principal amount of converted notes, as the case may be. Additionally, the Company separately entered into privately-negotiated warrant transactions, including in connection with the issuance of additional Notes due 2026 upon the initial purchasers’ exercise of their over-allotment option (the “2026 Warrants”), whereby the Company sold warrants to acquire approximately 2.1 million shares of the Company’s common stock (subject to anti-dilution adjustments) at an initial strike price of $397.91 per share. The Company received aggregate proceeds of approximately $97.4 million from the sale of the 2026 Warrants. If the market value per share of the Company’s common stock, as measured under the 2026 Warrants, exceeds the strike price of the 2026 Warrants, the 2026 Warrants will have a dilutive effect on the Company’s earnings per share, unless the Company elects, subject to certain conditions, to settle the 2026 Warrants in cash. Taken together, the purchase of the Notes due 2026 Hedge and the sale of the 2026 Warrants are intended to reduce potential dilution from the conversion of the Notes due 2026 and to effectively increase the overall conversion price from $307.47 to $397.91 per share. The 2026 Warrants are only exercisable on the applicable expiration dates in accordance with the 2026 Warrants. Subject to the other terms of the 2026 Warrants, the first expiration date applicable to the Warrants is June 1, 2026, and the final expiration date applicable to the 2026 Warrants is July 27, 2026. Given that the transactions meet certain accounting criteria, the Notes due 2026 Hedge and the 2026 Warrants transactions are recorded in stockholders’ equity, and they are not accounted for as derivatives and are not remeasured each reporting period. Convertible Senior Notes due 2025 On March 9, 2020, the Company issued $320.0 million aggregate principal amount of its 0.25% convertible senior notes due 2025 (the “Notes due 2025”). The Notes due 2025 are general unsecured obligations and bear interest at an annual rate of 0.25% per year, payable semi-annually on March 1 and September 1 of each year. The Notes due 2025 are governed by an indenture between the Company and U.S. Bank National Association, as trustee. The Notes due 2025 will mature on March 1, 2025, unless earlier repurchased by the Company or converted at the option of the holders. The Company may not redeem the notes prior to the maturity date, and no sinking fund is provided for the notes. The Notes due 2025 may be converted, under certain circumstances as described below, based on an initial conversion rate of 12.2637 shares of common stock per $1,000 principal amount (which represents an initial conversion price of $81.54 per share). The conversion rate for the Notes due 2025 will be subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid interest. In addition, upon the occurrence of a make-whole fundamental change (as defined in the relevant 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 notes in connection with such make-whole fundamental change. The Company received approximately $313.0 million in net proceeds, after deducting the initial purchasers’ discount, from the issuance of the Notes due 2025. The Notes due 2025 may be converted prior to the close of business on the business day immediately preceding September 1, 2024, in multiples of $1,000 principal amount, at the option of the holder only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2020 (and only during such calendar quarter), if the last reported sale price of the Company’s common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five As of March 31, 2024 the sale price of the Company’s common stock was greater than or equal to $106.00 (130% of the notes conversion price) for at least 20 trading days (whether consecutive or not) during a period of 30 consecutive trading days preceding the quarter-ended March 31, 2024. As a result, the Notes due 2025 are convertible at the holders’ option through June 30, 2024. Further, as the Notes due 2025 mature in less than a year, the Company classified the net carrying amount of the Notes due 2025 of $97.3 million as Debt, current on the condensed consolidated balance sheet as of March 31, 2024. Partial repurchase of Notes due 2025 On December 29, 2023, the Company received a request for conversion of $2.0 thousand in the principal amount of the Notes due 2025. In February 2024, the principal amount of the converted Notes due 2025 was repaid in cash. In connection with the conversion, the Company also issued six shares of its common stock to the holders of the converted Notes due 2025, with an aggregate fair value of less than $0.1 million, representing the conversion value in excess of the principal amount of the Notes due 2025. Following this repurchase combined with repurchase in previous years, as of March 31, 2024, $102.2 million aggregate principal amount of the Notes due 2025 remained outstanding. The derived effective interest rate on the Notes due 2025 host contract was determined to be 5.18%, which remains unchanged from the date of issuance. The remaining unamortized debt discount was $4.5 million as of March 31, 2024, and will be amortized over approximately 0.9 years from March 31, 2024. Notes due 2025 Hedge and Warrant Transactions In connection with the offering of the Notes due 2025, the Company entered into privately-negotiated convertible note hedge transactions (the “Notes due 2025 Hedge”) pursuant to which the Company has the option to purchase a total of approximately 3.9 million shares of its common stock (subject to anti-dilution adjustments), which is the same number of shares initially issuable upon conversion of the notes, at a price of $81.54 per share, which is the initial conversion price of the Notes due 2025. The total cost of the convertible note hedge transactions was approximately $89.1 million. The convertible note hedge transactions are expected generally to reduce potential dilution to the Company’s common stock upon any conversion of the Notes due 2025 and/or offset any cash payments the Company is required to make in excess of the principal amount of converted notes, as the case may be. Additionally, the Company separately entered into privately-negotiated warrant transactions in connection with the offering of the Notes due 2025 whereby the Company sold the 2025 Warrants to acquire approximately 3.9 million shares of the Company’s common stock (subject to anti-dilution adjustments) at an initial strike price of $106.94 per share. The Company received aggregate proceeds of approximately $71.6 million from the sale of the 2025 Warrants. If the market value per share of the Company’s common stock, as measured under the 2025 Warrants, exceeds the strike price of the 2025 Warrants, the 2025 Warrants will have a dilutive effect on the Company’s earnings per share, unless the Company elects, subject to certain conditions, to settle the 2025 Warrants in cash. Taken together, the purchase of the convertible note hedges in connection with the Notes due 2025 Hedge and the sale of the 2025 Warrants are intended to reduce potential dilution from the conversion of the Notes due 2025 and to effectively increase the overall conversion price from $81.54 to $106.94 per share. The 2025 Warrants are only exercisable on the applicable expiration dates in accordance with the agreements relating to each of the 2025 Warrants. Subject to the other terms of the 2025 Warrants, the first expiration date applicable to the 2025 Warrants is June 1, 2025, and the final expiration date applicable to the 2025 Warrants is September 23, 2025. As of March 31, 2024, options to purchase approximately 1.3 million shares of common stock remained outstanding under the Notes due 2025 Hedge, and 2025 Warrants exercisable to purchase approximately 1.3 million shares remained outstanding. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases office facilities under noncancellable operating leases that expire on various dates through 2034, some of which may include options to extend the leases for up to 12 years. The components of lease expense are presented as follows: Three Months Ended 2024 2023 (In thousands) Operating lease costs $ 2,647 $ 2,592 The components of lease liabilities are presented as follows: March 31, December 31, (In thousands except years and percentage data) Operating lease liabilities, current (Accrued liabilities) $ 5,148 $ 5,220 Operating lease liabilities, non-current (Other liabilities) 18,781 18,802 Total operating lease liabilities $ 23,929 $ 24,002 Supplemental lease information: Weighted average remaining lease term 5.8 years 5.8 years Weighted average discount rate 6.9% 7.0% Supplemental cash flow and other information related to operating leases were as follows: Three Months Ended 2024 2023 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,905 $ 1,702 Non-cash investing activities: Lease liabilities arising from obtaining right-of-use assets $ 1,695 $ 1,516 Undiscounted cash flows of operating lease liabilities as of March 31, 2024 were as follows: Lease Amounts (In thousands) Year: 2024 (remaining nine months) $ 4,964 2025 6,228 2026 4,565 2027 3,211 2028 2,621 Thereafter 7,795 Total lease payments 29,384 Less: imputed lease interest (5,455) Total lease liabilities $ 23,929 Purchase Obligations The Company has contractual obligations related to component inventory that its contract manufacturers procure on its behalf in accordance with its production forecast as well as other inventory related purchase commitments. As of March 31, 2024, these purchase obligations totaled approximately $116.7 million. Litigation |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY In July 2023, the board of directors authorized a share repurchase program (the “2023 Repurchase Program”) pursuant to which the Company was authorized to repurchase up to $1.0 billion of the Company’s common stock. The Company may repurchase shares of common stock from time to time through solicited or unsolicited transactions in the open market, in privately negotiated transactions or pursuant to a Rule 10b5-1 plan. During the three months ended March 31, 2024, the Company repurchased and subsequently retired 332,735 shares of common stock from the open market at an average cost of $126.21 per share for a total of $42.0 million. As of March 31, 2024, $748.0 million remains available for repurchase of shares under the 2023 Repurchase Program. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-based Compensation Expense Stock-based compensation expense for all stock-based awards, which includes shares purchased under the Company’s employee stock purchase plan (“ESPP”), restricted stock units (“RSUs”) and performance stock units (“PSUs”), expected to vest is measured at fair value on the date of grant and recognized ratably over the requisite service period. In addition, as part of certain business acquisitions, the Company was obligated to issue shares of common stock of the Company as payment subject to achievement of certain targets. For such payments, the Company records stock-based compensation classified as post-combination expense recognized ratably over the measurement period presuming the targets will be met. The following table summarizes the components of total stock-based compensation expense included in the condensed consolidated statements of operations for the periods presented: Three Months Ended 2024 2023 (In thousands) Cost of revenues $ 4,182 $ 3,669 Research and development 24,550 21,478 Sales and marketing 18,178 21,419 General and administrative 13,923 13,089 Total $ 60,833 $ 59,655 The following table summarizes the various types of stock-based compensation expense for the periods presented: Three Months Ended 2024 2023 (In thousands) RSUs and PSUs $ 58,787 $ 56,957 Employee stock purchase plan 2,046 2,040 Post combination expense — 658 Total $ 60,833 $ 59,655 As of March 31, 2024, there was approximately $442.9 million of total unrecognized stock-based compensation expense related to unvested equity awards, which are expected to be recognized over a weighted-average period of 2.5 years. Equity Awards Activity Stock Options The following table summarizes stock option activity: Number of Weighted- Weighted- Aggregate (1) (In thousands) (Years) (In thousands) Outstanding at December 31, 2023 692 $ 2.01 Exercised (585) 1.87 $ 70,514 Canceled — — Outstanding at March 31, 2024 107 $ 2.77 0.5 $ 12,655 Vested and expected to vest at March 31, 2024 107 $ 2.77 0.5 $ 12,655 Exercisable at March 31, 2024 107 $ 2.77 0.5 $ 12,655 (1) The intrinsic value of options exercised is based upon the value of the Company’s stock at exercise. The intrinsic value of options outstanding, vested and expected to vest, and exercisable as of March 31, 2024 is based on the closing price of the last trading day during the period ended March 31, 2024. The Company’s stock fair value used in this computation was $120.98 per share. The following table summarizes information about stock options outstanding at March 31, 2024: Options Outstanding Options Exercisable Range of Exercise Prices Number of Weighted- Weighted- Number of Weighted- (In thousands) (Years) (In thousands) $0.70 —– $0.70 46 0.1 $ 0.70 46 $ 0.70 $0.84 —– $0.84 34 0.3 0.84 34 0.84 $2.76 —– $2.90 19 0.8 2.81 19 2.81 $3.96 —– $3.96 6 1.0 3.96 6 3.96 $64.17 —– $64.17 2 3.1 64.17 2 64.17 Total 107 0.5 $ 2.77 107 $ 2.77 Restricted Stock Units The following table summarizes RSU activity: Number of Weighted- Weighted- Aggregate (1) (In thousands) (Years) (In thousands) Outstanding at December 31, 2023 2,332 $ 177.64 Granted 363 110.46 Vested (398) 179.38 $ 51,145 Canceled (156) 174.94 Outstanding at March 31, 2024 2,141 $ 166.12 1.5 $ 259,015 Expected to vest at March 31, 2024 2,141 $ 166.12 1.5 $ 259,006 (1) The intrinsic value of RSUs vested is based upon the value of the Company’s stock when vested. The intrinsic value of RSUs outstanding and expected to vest as of March 31, 2024 is based on the closing price of the last trading day during the period ended March 31, 2024. The Company’s stock fair value used in this computation was $120.98 per share. Performance Stock Units The following summarizes PSU activity: Number of Weighted- Weighted- Aggregate (1) (In thousands) (Years) (In thousands) Outstanding at December 31, 2023 396 $ 235.99 Granted 721 127.15 Vested (98) 214.52 $ 12,642 Canceled (98) 214.88 Outstanding at March 31, 2024 921 $ 155.33 1.9 $ 111,431 Expected to vest at March 31, 2024 921 $ 155.33 1.9 $ 111,431 (1) The intrinsic value of PSUs vested is based upon the value of the Company’s stock when vested. The intrinsic value of PSUs outstanding and expected to vest as of March 31, 2024 is based on the closing price of the last trading day during the period ended March 31, 2024. The Company’s stock fair value used in this computation was $120.98 per share. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES For the three months ended March 31, 2024 and 2023, the Company’s income tax provision totaled $4.6 million and $32.1 million, respectively, on a net loss before income taxes of $11.5 million and a net income before income taxes of $179.0 million, respectively. For the three months ended March 31, 2024, the income tax provision was calculated using the annualized effective tax rate method and was primarily due to tax expense from equity compensation shortfalls, offset by tax benefit from year-to-date loss before income taxes. For the three months ended March 31, 2023, the income tax provision was calculated using the annualized effective tax rate method and was primarily due to projected tax expense in the U.S. and foreign jurisdictions that are profitable, partially offset by a tax deduction from employee stock compensation reported as a discrete event. For the three months ended March 31, 2024 and 2023, in accordance with FASB guidance for interim reporting of income tax, the Company has computed its provision for income taxes based on a projected annual effective tax rate while excluding loss jurisdictions, which cannot be benefited. In December 2021, the Organization for Economic Co-operation and Development Inclusive Framework on Base Erosion Profit Shifting released Model Global Anti-Base Erosion rules (“Model Rules”) under Pillar Two. The Model Rules set forth the “common approach” for a Global Minimum Tax at 15 percent for multinational enterprises with a turnover of more than 750 million euros. Rules under Pillar Two were effective from January 1, 2024. The Company does not expect adoption of Pillar Two rules to have a significant impact on its consolidated financial statements during fiscal year 2024. |
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
NET INCOME (LOSS) PER SHARE | NET INCOME (LOSS) PER SHARE Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed in a similar manner, but it also includes the effect of potential common shares outstanding during the period, when dilutive. Potential common shares for the three months ended March 31, 2023 include stock options, RSUs, PSUs, shares to be purchased under the ESPP, Notes due 2025, Notes due 2026, Notes due 2028, Notes due 2023 and the 2025 Warrants. The following table presents the computation of basic and diluted net income (loss) per share for the periods presented: Three Months Ended 2024 2023 (In thousands, except per share data) Numerator: Net income (loss) $ (16,097) $ 146,873 Convertible senior notes interest and financing costs, net of tax — 1,604 Adjusted net income (loss) $ (16,097) $ 148,477 Denominator: Shares used in basic per share amounts: Weighted average common shares outstanding 135,891 136,689 Shares used in diluted per share amounts: Weighted average common shares outstanding used for basic calculation 135,891 136,689 Effect of dilutive securities: Employee stock-based awards — 2,434 Notes due 2023 — 900 Notes due 2025 — 1,253 2025 Warrants — 635 Notes due 2026 — 2,057 Notes due 2028 — 2,018 Weighted average common shares outstanding for diluted calculation 135,891 145,986 Basic and diluted net income (loss) per share Net income (loss) per share, basic $ (0.12) $ 1.07 Net income (loss) per share, diluted $ (0.12) $ 1.02 Diluted earnings per share for the three months ended March 31, 2023 includes the dilutive effect of potentially dilutive common shares by application of the treasury stock method for stock options, RSUs, PSUs, ESPP, the 2025 Warrants, and includes potentially dilutive common shares by application of the if-converted method for the Notes due 2025, Notes due 2026, Notes due 2028 and Notes due 2023. To the extent these potential common shares are antidilutive, they are excluded from the calculation of diluted net income per share. Further, the Company under the relevant sections of the indentures, irrevocably may elect to settle principal in cash and any excess in cash or shares of the Company’s common stock for the Notes due 2025, Notes due 2026 and Notes due 2028. If and when the Company makes such election, there will be no adjustment to the net income and the Company will use the average share price for the period to determine the potential number of shares to be issued based upon assumed conversion to be included in the diluted share count. The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net income (loss) per share attributable to common stockholders because their effect would have been antidilutive: Three Months Ended 2024 2023 (In thousands) Employee stock-based awards 1,656 781 Notes due 2028 2,018 — 2028 Warrants 4,865 1,690 Notes due 2026 2,057 — 2026 Warrants 4,958 1,722 Notes due 2025 1,253 — Total 16,807 4,193 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net (loss) income | $ (16,097) | $ 146,873 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
DESCRIPTION OF BUSINESS AND B_2
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Unaudited Interim Financial Information These accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) for interim financial reporting. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring items, considered necessary to present fairly the Company’s financial condition, results of operations, comprehensive income (loss), stockholders’ equity and cash flows for the interim periods indicated. The results of operations for the three months ended March 31, 2024 are not necessarily indicative of the operating results for the full year. |
Use of Estimates | 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 income and expenses during the reporting period. Significant estimates and assumptions reflected in the financial statements include revenue recognition, allowance for doubtful accounts, stock-based compensation, deferred compensation arrangements, income tax provision, inventory valuation, government grants, accrued warranty obligations, fair value of investments, convertible notes, fair value of acquired intangible assets and goodwill, useful lives of acquired intangible assets and property and equipment, incremental borrowing rate for right-of-use assets and lease liability. These estimates are based on information available as of the date of the financial statements; therefore, actual results could differ materially from those estimates due to risks and uncertainties, including uncertainty in the ongoing semiconductor supply and logistic constraints. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements Not Yet Adopted In November 2023, the Financial Accounting Standard Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires additional disclosures for segment reporting, including disclosure of the title and position of the Chief Operating Decision Maker and requires a public entity that has a single reportable segment to provide all the disclosures required by the amendments in ASU 2023-07, and all existing segment disclosures in Topic 280. ASU 2023-07 is effective for fiscal periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. The Company plans to adopt ASU 2023-07 effective for the annual report on Form 10-K for the year ended December 31, 2024 and subsequent interim periods. Since ASU 2023-07 addresses only disclosures, the adoption of ASU 2023-07 is not expected to have a significant impact on the Company’s consolidated financial statements. Not Yet Effective In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires that an entity disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold, certain disclosures of state versus federal income tax expenses and taxes paid. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. The Company does not expect the adoption of ASU 2023-09 to have a significant impact on its consolidated financial statements and will adopt the standard effective January 1, 2025. |
Fair Value Measurement | The accounting guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. The fair value hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset’s or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: • Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of such assets or liabilities do not entail a significant degree of judgment. • Level 2 - Valuations based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. • |
Earnings Per Share | Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed in a similar manner, but it also includes the effect of potential common shares outstanding during the period, when dilutive. Potential common shares for the three months ended March 31, 2023 include stock options, RSUs, PSUs, shares to be purchased under the ESPP, Notes due 2025, Notes due 2026, Notes due 2028, Notes due 2023 and the 2025 Warrants. |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue Disaggregation | Disaggregated revenue by primary geographical market and timing of revenue recognition for the Company’s single product line are as follows: Three Months Ended 2024 2023 (In thousands) Primary geographical markets: U.S. $ 149,974 $ 472,961 International 113,365 253,055 Total $ 263,339 $ 726,016 Timing of revenue recognition: Products delivered at a point in time $ 233,145 $ 701,652 Products and services delivered over time 30,194 24,364 Total $ 263,339 $ 726,016 |
Summary of Contract Assets and Contract Liabilities, and Changes in Balances from Contracts with Customers | Receivables, and contract assets and contract liabilities from contracts with customers, are as follows: March 31, December 31, (In thousands) Receivables $ 364,364 $ 445,959 Short-term contract assets (Prepaid expenses and other assets) 40,915 40,241 Long-term contract assets (Other assets) 121,633 124,190 Short-term contract liabilities (Deferred revenues, current) 119,821 118,300 Long-term contract liabilities (Deferred revenues, non-current) 359,300 369,172 Significant changes in the balances of contract assets (prepaid expenses and other assets) as of March 31, 2024 are as follows (in thousands): Contract Assets Contract Assets, beginning of period $ 164,431 Amount recognized (10,524) Increased due to shipments 8,641 Contract Assets, end of period $ 162,548 Significant changes in the balances of contract liabilities (deferred revenues) as of March 31, 2024 are as follows (in thousands): Contract Liabilities Contract Liabilities, beginning of period $ 487,472 Revenue recognized (30,194) Increased due to billings 21,843 Contract Liabilities, end of period $ 479,121 |
Summary of Estimated Revenue Expected to be Recognized in Future Periods | Estimated revenue expected to be recognized in future periods related to performance obligations that are unsatisfied or partially unsatisfied at the end of the reporting period are as follows: March 31, (In thousands) Fiscal year: 2024 (remaining nine months) $ 90,521 2025 113,226 2026 96,983 2027 77,353 2028 56,091 Thereafter 44,947 Total $ 479,121 |
OTHER FINANCIAL INFORMATION (Ta
OTHER FINANCIAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Inventory | Inventory consists of the following: March 31, December 31, (In thousands) Raw materials $ 52,452 $ 30,849 Finished goods 155,441 182,746 Total inventory $ 207,893 $ 213,595 Accrued Liabilities |
Schedule of Accrued Liabilities | Accrued liabilities consist of the following: March 31, December 31, (In thousands) Customer rebates and sales incentives $ 124,769 $ 158,338 Liability due to supply agreements 41,288 32,973 Freight 19,673 19,262 Salaries, commissions, incentive compensation and benefits 14,498 10,316 Income tax payable 1,471 8,531 Operating lease liabilities, current 5,148 5,220 VAT payable 6,033 3,243 Liabilities related to restructuring accruals 399 3,104 Other 21,112 20,932 Total accrued liabilities $ 234,391 $ 261,919 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The Company’s goodwill as of March 31, 2024 and December 31, 2023 was as follows: Goodwill March 31, December 31, (In thousands) Goodwill, beginning of period $ 214,562 $ 213,559 Currency translation adjustment (937) 1,003 Goodwill, end of period $ 213,625 $ 214,562 |
Schedule of Acquired Indefinite-lived Intangible Assets by Major Class | The Company’s purchased intangible assets as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 Gross Additions Accumulated Amortization Net Gross Additions Accumulated Amortization Impairment Net (In thousands) Intangible assets: Other indefinite-lived intangibles $ 286 $ — $ — $ 286 $ 286 $ — $ — $ — $ 286 Intangible assets with finite lives: Developed technology 51,054 — (29,560) 21,494 51,044 — (27,093) — 23,951 Customer relationships 51,306 — (31,103) 20,203 55,106 — (29,527) (3,807) 21,772 Trade names 37,700 — (17,058) 20,642 37,700 — (15,173) — 22,527 Total purchased intangible assets $ 140,346 $ — $ (77,721) $ 62,625 $ 144,136 $ — $ (71,793) $ (3,807) $ 68,536 |
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The Company’s purchased intangible assets as of March 31, 2024 and December 31, 2023 were as follows: March 31, 2024 December 31, 2023 Gross Additions Accumulated Amortization Net Gross Additions Accumulated Amortization Impairment Net (In thousands) Intangible assets: Other indefinite-lived intangibles $ 286 $ — $ — $ 286 $ 286 $ — $ — $ — $ 286 Intangible assets with finite lives: Developed technology 51,054 — (29,560) 21,494 51,044 — (27,093) — 23,951 Customer relationships 51,306 — (31,103) 20,203 55,106 — (29,527) (3,807) 21,772 Trade names 37,700 — (17,058) 20,642 37,700 — (15,173) — 22,527 Total purchased intangible assets $ 140,346 $ — $ (77,721) $ 62,625 $ 144,136 $ — $ (71,793) $ (3,807) $ 68,536 |
Schedule of Amortization Expense | Amortization expense related to finite-lived intangible assets were as follows: Three Months Ended 2024 2023 (In thousands) Developed technology $ 2,467 $ 2,455 Customer relationships 1,576 2,454 Trade names 1,885 1,885 Total amortization expense $ 5,928 $ 6,794 The expected future amortization expense of intangible assets as of March 31, 2024 is presented below: March 31, (In thousands) Fiscal year: 2024 (remaining nine months) $ 16,811 2025 21,397 2026 19,108 2027 5,023 Total $ 62,339 |
CASH EQUIVALENTS AND MARKETAB_2
CASH EQUIVALENTS AND MARKETABLE SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Debt Securities, Available-for-sale | The cash equivalents and marketable securities consist of the following: As of March 31, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities (In thousands) Money market funds $ 113,904 $ — $ — $ 113,904 $ 113,904 $ — Certificates of deposit 45,432 46 — 45,478 — 45,478 Commercial paper 73,606 16 (49) 73,573 — 73,573 Corporate notes and bonds 424,500 372 (701) 424,171 — 424,171 U.S. Treasuries 170,120 16 (185) 169,951 — 169,951 U.S. Government agency securities 665,055 95 (2,382) 662,768 — 662,768 Total $ 1,492,617 $ 545 $ (3,317) $ 1,489,845 $ 113,904 $ 1,375,941 As of December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Cash Equivalents Marketable Securities (In thousands) Money market funds $ 132,037 $ — $ — $ 132,037 $ 132,037 $ — Certificates of deposit 55,863 58 (9) 55,912 750 55,162 Commercial paper 71,427 29 (19) 71,437 1,694 69,743 Corporate notes and bonds 406,093 934 (931) 406,096 462 405,634 U.S. Treasuries 327,773 152 (34) 327,891 — 327,891 U.S. Government agency securities 548,391 690 (1,225) 547,856 — 547,856 Total $ 1,541,584 $ 1,863 $ (2,218) $ 1,541,229 $ 134,943 $ 1,406,286 |
Investments Classified by Contractual Maturity Date | The following table summarizes the contractual maturities of the Company’s cash equivalents and marketable securities as of March 31, 2024: Amortized Cost Fair Value (In thousands) Due within one year $ 1,081,773 $ 1,080,140 Due within one to three years 410,844 409,705 Total $ 1,492,617 $ 1,489,845 |
WARRANTY OBLIGATIONS (Tables)
WARRANTY OBLIGATIONS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Product Warranties Disclosures [Abstract] | |
Summary of Warranty Activities | The Company’s warranty obligation activities were as follows: Three Months Ended 2024 2023 (In thousands) Warranty obligations, beginning of period $ 189,087 $ 131,446 Accruals for warranties issued during period 6,098 16,171 Expense (benefit) from changes in estimates (12,361) 3,728 Settlements (6,893) (8,894) Increase due to accretion expense 2,905 3,545 Other (1,672) 38 Warranty obligations, end of period 177,164 146,034 Less: warranty obligations, current (30,868) (34,513) Warranty obligations, non-current $ 146,296 $ 111,521 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents assets and liabilities measured at fair value on a recurring basis using the above input categories: March 31, 2024 December 31, 2023 (In thousands) Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Cash and cash equivalents: Money market funds $ 113,904 $ — $ — $ 132,037 $ — $ — Certificates of deposit — — — 750 — Commercial paper — — — — 1,694 — Corporate notes and bonds — — — — 462 — Marketable securities: Certificates of deposit — 45,478 — — 55,162 — Commercial paper — 73,573 — — 69,743 — Corporate notes and bonds — 424,171 — — 405,634 — U.S. Treasuries — 169,951 — — 327,891 — U.S. Government agency securities — 662,768 — — 547,856 — Other assets Investments in debt securities — — 80,797 — — 79,855 Total assets measured at fair value $ 113,904 $ 1,375,941 $ 80,797 $ 132,037 $ 1,409,192 $ 79,855 Liabilities: Warranty obligations Current $ — $ — $ 23,486 $ — $ — $ 28,667 Non-current — — 127,064 — — 133,126 Total warranty obligations measured at fair value — — 150,550 — — 161,793 Total liabilities measured at fair value $ — $ — $ 150,550 $ — $ — $ 161,793 |
Summary of Significant Unobservable Inputs used in the Fair Value Measurement of Assets Designated as Level 3 | The changes in the balance in investments in debt securities during the period were as follows: Three Months Ended 2024 2023 (In thousands) Balance at beginning of period $ 79,855 $ 56,777 Fair value adjustments included in other income, net 942 1,744 Balance at end of period $ 80,797 $ 58,521 |
Schedule of Changes in Nonfinancial Liabilities Related to Warrant Obligations Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs | The following table provides information regarding changes in nonfinancial liabilities related to the Company’s warranty obligations measured at fair value on a recurring basis using significant unobservable inputs designated as Level 3 for the periods indicated: Three Months Ended 2024 2023 (In thousands) Balance at beginning of period $ 161,793 $ 106,489 Accruals for warranties issued during period 6,082 16,025 Changes in estimates (12,018) 1,245 Settlements (6,540) (7,834) Increase due to accretion expense 2,905 3,545 Other (1,672) 38 Balance at end of period $ 150,550 $ 119,508 |
Summary of Significant Unobservable Inputs used in the Fair Value Measurement of Liabilities Designated as Level 3 | As of March 31, 2024 and December 31, 2023, the significant unobservable inputs used in the fair value measurement of the Company’s liabilities designated as Level 3 were as follows, of which the monetary impact for change in discount rate is captured in “Change in discount rate” in the table above: Percent Used (Weighted Average) Item Measured at Fair Value Valuation Technique Description of Significant Unobservable Input March 31, December 31, Warranty obligations for products sold since January 1, 2014 Discounted cash flows Profit element and risk premium 17% 17% Credit-adjusted risk-free rate 7% 7% |
RESTRUCTURING AND ASSET IMPAI_2
RESTRUCTURING AND ASSET IMPAIRMENT CHARGES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table presents the details of the Company’s restructuring and asset impairment charges and accrued balance under the 2023 Restructuring Plan: Employee Severance and Benefits Contract Termination Charges Asset Impairment Total (In thousands) Balance as of December 31, 2023 $ 1,304 $ 1,800 $ — $ 3,104 Charges 270 1,305 332 1,907 Cash payments (1,152) (1,500) — (2,652) Non-cash settlement and other (267) (1,361) (332) (1,960) Balance as of March 31, 2024 $ 155 $ 244 $ — $ 399 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table provides information regarding the Company’s debt: March 31, December 31, (In thousands) Convertible notes Notes due 2028 $ 575,000 $ 575,000 Less: unamortized debt issuance costs (5,082) (5,408) Carrying amount of Notes due 2028 569,918 569,592 Notes due 2026 632,500 632,500 Less: unamortized debt issuance costs (3,814) (4,317) Carrying amount of Notes due 2026 628,686 628,183 Notes due 2025 102,173 102,175 Less: unamortized debt discount (4,467) (5,644) Less: unamortized debt issuance costs (442) (568) Carrying amount of Notes due 2025 97,264 95,963 Total carrying amount of debt 1,295,868 1,293,738 Less: debt, current (97,264) — Debt, non-current $ 1,198,604 $ 1,293,738 The following table presents the total amount of interest cost recognized in the consolidated statement of operations relating to the Notes: Three Months Ended 2024 2023 (In thousands) Notes due 2028 Amortization of debt issuance costs $ 326 $ 316 Total interest cost recognized $ 326 $ 316 Notes due 2026 Amortization of debt issuance costs $ 503 $ 485 Total interest cost recognized $ 503 $ 485 Notes due 2025 Contractual interest expense $ 64 $ 64 Amortization of debt discount 1,177 1,105 Amortization of debt issuance costs 126 118 Total interest cost recognized $ 1,367 $ 1,287 Convertible Senior Notes due 2023 (the “Notes due 2023”) Contractual interest expense $ — $ 50 Amortization of debt issuance costs — 10 Total interest costs recognized $ — $ 60 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Components of Lease | The components of lease expense are presented as follows: Three Months Ended 2024 2023 (In thousands) Operating lease costs $ 2,647 $ 2,592 The components of lease liabilities are presented as follows: March 31, December 31, (In thousands except years and percentage data) Operating lease liabilities, current (Accrued liabilities) $ 5,148 $ 5,220 Operating lease liabilities, non-current (Other liabilities) 18,781 18,802 Total operating lease liabilities $ 23,929 $ 24,002 Supplemental lease information: Weighted average remaining lease term 5.8 years 5.8 years Weighted average discount rate 6.9% 7.0% Supplemental cash flow and other information related to operating leases were as follows: Three Months Ended 2024 2023 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,905 $ 1,702 Non-cash investing activities: Lease liabilities arising from obtaining right-of-use assets $ 1,695 $ 1,516 |
Schedule of Future Minimum Rental Payments for Operating Leases | Undiscounted cash flows of operating lease liabilities as of March 31, 2024 were as follows: Lease Amounts (In thousands) Year: 2024 (remaining nine months) $ 4,964 2025 6,228 2026 4,565 2027 3,211 2028 2,621 Thereafter 7,795 Total lease payments 29,384 Less: imputed lease interest (5,455) Total lease liabilities $ 23,929 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of the Components of Total Stock-Based Compensation Expense | The following table summarizes the components of total stock-based compensation expense included in the condensed consolidated statements of operations for the periods presented: Three Months Ended 2024 2023 (In thousands) Cost of revenues $ 4,182 $ 3,669 Research and development 24,550 21,478 Sales and marketing 18,178 21,419 General and administrative 13,923 13,089 Total $ 60,833 $ 59,655 |
Summary of Stock-Based Compensation Associated with Each Type of Award | The following table summarizes the various types of stock-based compensation expense for the periods presented: Three Months Ended 2024 2023 (In thousands) RSUs and PSUs $ 58,787 $ 56,957 Employee stock purchase plan 2,046 2,040 Post combination expense — 658 Total $ 60,833 $ 59,655 |
Summary of Stock Option Activity | The following table summarizes stock option activity: Number of Weighted- Weighted- Aggregate (1) (In thousands) (Years) (In thousands) Outstanding at December 31, 2023 692 $ 2.01 Exercised (585) 1.87 $ 70,514 Canceled — — Outstanding at March 31, 2024 107 $ 2.77 0.5 $ 12,655 Vested and expected to vest at March 31, 2024 107 $ 2.77 0.5 $ 12,655 Exercisable at March 31, 2024 107 $ 2.77 0.5 $ 12,655 (1) The intrinsic value of options exercised is based upon the value of the Company’s stock at exercise. The intrinsic value of options outstanding, vested and expected to vest, and exercisable as of March 31, 2024 is based on the closing price of the last trading day during the period ended March 31, 2024. The Company’s stock fair value used in this computation was $120.98 per share. |
Summary of Stock Option Outstanding | The following table summarizes information about stock options outstanding at March 31, 2024: Options Outstanding Options Exercisable Range of Exercise Prices Number of Weighted- Weighted- Number of Weighted- (In thousands) (Years) (In thousands) $0.70 —– $0.70 46 0.1 $ 0.70 46 $ 0.70 $0.84 —– $0.84 34 0.3 0.84 34 0.84 $2.76 —– $2.90 19 0.8 2.81 19 2.81 $3.96 —– $3.96 6 1.0 3.96 6 3.96 $64.17 —– $64.17 2 3.1 64.17 2 64.17 Total 107 0.5 $ 2.77 107 $ 2.77 |
Summary of Restricted Stock Unit Activity | The following table summarizes RSU activity: Number of Weighted- Weighted- Aggregate (1) (In thousands) (Years) (In thousands) Outstanding at December 31, 2023 2,332 $ 177.64 Granted 363 110.46 Vested (398) 179.38 $ 51,145 Canceled (156) 174.94 Outstanding at March 31, 2024 2,141 $ 166.12 1.5 $ 259,015 Expected to vest at March 31, 2024 2,141 $ 166.12 1.5 $ 259,006 (1) The intrinsic value of RSUs vested is based upon the value of the Company’s stock when vested. The intrinsic value of RSUs outstanding and expected to vest as of March 31, 2024 is based on the closing price of the last trading day during the period ended March 31, 2024. The Company’s stock fair value used in this computation was $120.98 per share. |
Share-based Compensation, Performance Shares Award Outstanding Activity | The following summarizes PSU activity: Number of Weighted- Weighted- Aggregate (1) (In thousands) (Years) (In thousands) Outstanding at December 31, 2023 396 $ 235.99 Granted 721 127.15 Vested (98) 214.52 $ 12,642 Canceled (98) 214.88 Outstanding at March 31, 2024 921 $ 155.33 1.9 $ 111,431 Expected to vest at March 31, 2024 921 $ 155.33 1.9 $ 111,431 (1) The intrinsic value of PSUs vested is based upon the value of the Company’s stock when vested. The intrinsic value of PSUs outstanding and expected to vest as of March 31, 2024 is based on the closing price of the last trading day during the period ended March 31, 2024. The Company’s stock fair value used in this computation was $120.98 per share. |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Net Income (Loss) Per Share | The following table presents the computation of basic and diluted net income (loss) per share for the periods presented: Three Months Ended 2024 2023 (In thousands, except per share data) Numerator: Net income (loss) $ (16,097) $ 146,873 Convertible senior notes interest and financing costs, net of tax — 1,604 Adjusted net income (loss) $ (16,097) $ 148,477 Denominator: Shares used in basic per share amounts: Weighted average common shares outstanding 135,891 136,689 Shares used in diluted per share amounts: Weighted average common shares outstanding used for basic calculation 135,891 136,689 Effect of dilutive securities: Employee stock-based awards — 2,434 Notes due 2023 — 900 Notes due 2025 — 1,253 2025 Warrants — 635 Notes due 2026 — 2,057 Notes due 2028 — 2,018 Weighted average common shares outstanding for diluted calculation 135,891 145,986 Basic and diluted net income (loss) per share Net income (loss) per share, basic $ (0.12) $ 1.07 Net income (loss) per share, diluted $ (0.12) $ 1.02 |
Schedule of Potentially Dilutive Securities Excluded from the Computation of Diluted Net Income (Loss) Per Share | The following outstanding shares of common stock equivalents were excluded from the calculation of the diluted net income (loss) per share attributable to common stockholders because their effect would have been antidilutive: Three Months Ended 2024 2023 (In thousands) Employee stock-based awards 1,656 781 Notes due 2028 2,018 — 2028 Warrants 4,865 1,690 Notes due 2026 2,057 — 2026 Warrants 4,958 1,722 Notes due 2025 1,253 — Total 16,807 4,193 |
REVENUE RECOGNITION - Summary o
REVENUE RECOGNITION - Summary of Disaggregated Revenue by Primary Geographical Market and Timing of Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 263,339 | $ 726,016 |
Products delivered at a point in time | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 233,145 | 701,652 |
Products and services delivered over time | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 30,194 | 24,364 |
U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | 149,974 | 472,961 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Net revenues | $ 113,365 | $ 253,055 |
REVENUE RECOGNITION - Summary_2
REVENUE RECOGNITION - Summary of Contract Assets and Contract Liabilities from Contracts with Customers (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Revenue from Contract with Customer [Abstract] | ||
Receivables | $ 364,364 | $ 445,959 |
Short-term contract assets (Prepaid expenses and other assets) | 40,915 | 40,241 |
Long-term contract assets (Other assets) | 121,633 | 124,190 |
Short-term contract liabilities (Deferred revenues, current) | 119,821 | 118,300 |
Long-term contract liabilities (Deferred revenues, non-current) | $ 359,300 | $ 369,172 |
REVENUE RECOGNITION - Narrative
REVENUE RECOGNITION - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Contract asset impairment charges | $ 0 |
REVENUE RECOGNITION - Summary_3
REVENUE RECOGNITION - Summary of Significant Changes in the Balances of Contract Liabilities and Assets (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Contract Assets | |
Balance, beginning of period | $ 164,431 |
Amount recognized | (10,524) |
Increased due to shipments | 8,641 |
Balance, end of period | 162,548 |
Contract Liabilities | |
Balance, beginning of period | 487,472 |
Revenue recognized | (30,194) |
Increased due to billings | 21,843 |
Balance, end of period | $ 479,121 |
REVENUE RECOGNITION - Summary_4
REVENUE RECOGNITION - Summary of Estimated Revenue Expected to be Recognized in Future Periods (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total estimated revenue expected to be recognized in future periods | $ 479,121 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total estimated revenue expected to be recognized in future periods | $ 90,521 |
Total estimated revenue expected to be recognized in future periods, expected timing | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total estimated revenue expected to be recognized in future periods | $ 113,226 |
Total estimated revenue expected to be recognized in future periods, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total estimated revenue expected to be recognized in future periods | $ 96,983 |
Total estimated revenue expected to be recognized in future periods, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total estimated revenue expected to be recognized in future periods | $ 77,353 |
Total estimated revenue expected to be recognized in future periods, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total estimated revenue expected to be recognized in future periods | $ 56,091 |
Total estimated revenue expected to be recognized in future periods, expected timing | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Total estimated revenue expected to be recognized in future periods | $ 44,947 |
Total estimated revenue expected to be recognized in future periods, expected timing |
OTHER FINANCIAL INFORMATION - I
OTHER FINANCIAL INFORMATION - Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials | $ 52,452 | $ 30,849 |
Finished goods | 155,441 | 182,746 |
Total inventory | $ 207,893 | $ 213,595 |
OTHER FINANCIAL INFORMATION - A
OTHER FINANCIAL INFORMATION - Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Customer rebates and sales incentives | $ 124,769 | $ 158,338 |
Liability due to supply agreements | 41,288 | 32,973 |
Freight | 19,673 | 19,262 |
Salaries, commissions, incentive compensation and benefits | 14,498 | 10,316 |
Income tax payable | 1,471 | 8,531 |
Operating Lease, Liability, Current | 5,148 | 5,220 |
VAT payable | 6,033 | 3,243 |
Liabilities related to restructuring accruals | 399 | 3,104 |
Other | 21,112 | 20,932 |
Total accrued liabilities | $ 234,391 | $ 261,919 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 214,562 | $ 213,559 |
Currency translation adjustment | (937) | 1,003 |
Ending balance | $ 213,625 | $ 214,562 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Other indefinite-lived intangibles | $ 286 | $ 286 |
Intangible assets with finite lives: | ||
Additions | 0 | 0 |
Accumulated Amortization | (77,721) | (71,793) |
Total | 62,339 | |
Total purchased intangible assets, Gross | 140,346 | 144,136 |
Total purchased intangible assets, Net | 62,625 | 68,536 |
Developed technology | ||
Intangible assets with finite lives: | ||
Gross | 51,054 | 51,044 |
Additions | 0 | 0 |
Accumulated Amortization | (29,560) | (27,093) |
Total | 21,494 | 23,951 |
Customer relationship | ||
Intangible assets with finite lives: | ||
Gross | 51,306 | 55,106 |
Additions | 0 | 0 |
Accumulated Amortization | (31,103) | (29,527) |
Impairment | (3,807) | |
Total | 20,203 | 21,772 |
Trade names | ||
Intangible assets with finite lives: | ||
Gross | 37,700 | 37,700 |
Additions | 0 | 0 |
Accumulated Amortization | (17,058) | (15,173) |
Total | $ 20,642 | $ 22,527 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
GreenCom | |
Finite-Lived Intangible Assets [Line Items] | |
Decrease in intangible assets acquired | $ 0.1 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 5,928 | $ 6,794 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | 2,467 | 2,455 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | 1,576 | 2,454 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 1,885 | $ 1,885 |
GOODWILL AND INTANGIBLE ASSET_6
GOODWILL AND INTANGIBLE ASSETS - Expected Future Amortization Expense (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 (remaining nine months) | $ 16,811 |
2025 | 21,397 |
2026 | 19,108 |
2027 | 5,023 |
Total | $ 62,339 |
CASH EQUIVALENTS AND MARKETAB_3
CASH EQUIVALENTS AND MARKETABLE SECURITIES - Schedule of Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,492,617 | $ 1,541,584 |
Gross Unrealized Gains | 545 | 1,863 |
Gross Unrealized Losses | (3,317) | (2,218) |
Fair Value | 1,489,845 | 1,541,229 |
Cash Equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 113,904 | 134,943 |
Marketable Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 1,375,941 | 1,406,286 |
Money market funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 113,904 | 132,037 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 113,904 | 132,037 |
Money market funds | Cash Equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 113,904 | 132,037 |
Money market funds | Marketable Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 0 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 45,432 | 55,863 |
Gross Unrealized Gains | 46 | 58 |
Gross Unrealized Losses | 0 | (9) |
Fair Value | 45,478 | 55,912 |
Certificates of deposit | Cash Equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 750 |
Certificates of deposit | Marketable Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 45,478 | 55,162 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 73,606 | 71,427 |
Gross Unrealized Gains | 16 | 29 |
Gross Unrealized Losses | (49) | (19) |
Fair Value | 73,573 | 71,437 |
Commercial paper | Cash Equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 1,694 |
Commercial paper | Marketable Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 73,573 | 69,743 |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 424,500 | 406,093 |
Gross Unrealized Gains | 372 | 934 |
Gross Unrealized Losses | (701) | (931) |
Fair Value | 424,171 | 406,096 |
Corporate notes and bonds | Cash Equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 462 |
Corporate notes and bonds | Marketable Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 424,171 | 405,634 |
U.S. Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 170,120 | 327,773 |
Gross Unrealized Gains | 16 | 152 |
Gross Unrealized Losses | (185) | (34) |
Fair Value | 169,951 | 327,891 |
U.S. Treasuries | Cash Equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 0 |
U.S. Treasuries | Marketable Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 169,951 | 327,891 |
U.S. Government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 665,055 | 548,391 |
Gross Unrealized Gains | 95 | 690 |
Gross Unrealized Losses | (2,382) | (1,225) |
Fair Value | 662,768 | 547,856 |
U.S. Government agency securities | Cash Equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | 0 | 0 |
U.S. Government agency securities | Marketable Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair Value | $ 662,768 | $ 547,856 |
CASH EQUIVALENTS AND MARKETAB_4
CASH EQUIVALENTS AND MARKETABLE SECURITIES - Schedule of Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Cash and Cash Equivalents [Abstract] | ||
Contractual maturities, Due within one year, Amortized Cost | $ 1,081,773 | |
Contractual maturities, Due within one year, Fair Value | 1,080,140 | |
Contractual maturities, Due within one to three years, Amortized Cost | 410,844 | |
Contractual maturities, Due within one to three years, Fair Value | 409,705 | |
Amortized Cost | 1,492,617 | $ 1,541,584 |
Fair Value | $ 1,489,845 | $ 1,541,229 |
WARRANTY OBLIGATIONS - Summary
WARRANTY OBLIGATIONS - Summary of Warranty Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Changes in the Company's product warranty liability | |||
Warranty obligations, beginning of period | $ 189,087 | $ 131,446 | |
Accruals for warranties issued during period | 6,098 | 16,171 | |
Expense (benefit) from changes in estimates | (12,361) | 3,728 | |
Settlements | (6,893) | (8,894) | |
Increase due to accretion expense | 2,905 | 3,545 | |
Other | (1,672) | 38 | |
Warranty obligations, end of period | 177,164 | 146,034 | |
Less: warranty obligations, current | (30,868) | (34,513) | $ (36,066) |
Warranty obligations, non-current | $ 146,296 | $ 111,521 | $ 153,021 |
WARRANTY OBLIGATIONS - Narrativ
WARRANTY OBLIGATIONS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Product Warranty Liability [Line Items] | ||
Additional warranty expense (benefit) | $ (12,361) | $ 3,728 |
Product Replacement Costs Related To Other Products | ||
Product Warranty Liability [Line Items] | ||
Additional warranty expense (benefit) | (9,300) | (6,200) |
Field Performance Data And Diagnostic Root-Cause Failure Analysis | ||
Product Warranty Liability [Line Items] | ||
Additional warranty expense (benefit) | $ (3,100) | $ 9,900 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets [Abstract] | ||
Marketable securities: | $ 1,489,845 | $ 1,541,229 |
Certificates of deposit | ||
Assets [Abstract] | ||
Marketable securities: | 45,478 | 55,912 |
Commercial paper | ||
Assets [Abstract] | ||
Marketable securities: | 73,573 | 71,437 |
Corporate notes and bonds | ||
Assets [Abstract] | ||
Marketable securities: | 424,171 | 406,096 |
U.S. Treasuries | ||
Assets [Abstract] | ||
Marketable securities: | 169,951 | 327,891 |
U.S. Government agency securities | ||
Assets [Abstract] | ||
Marketable securities: | 662,768 | 547,856 |
Recurring | Level 1 | ||
Assets [Abstract] | ||
Investments in debt securities | 0 | 0 |
Total assets measured at fair value | 113,904 | 132,037 |
Warranty obligations | ||
Current | 0 | 0 |
Non-current | 0 | 0 |
Total warranty obligations measured at fair value | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Recurring | Level 1 | Certificates of deposit | ||
Assets [Abstract] | ||
Marketable securities: | 0 | 0 |
Recurring | Level 1 | Commercial paper | ||
Assets [Abstract] | ||
Marketable securities: | 0 | 0 |
Recurring | Level 1 | Corporate notes and bonds | ||
Assets [Abstract] | ||
Marketable securities: | 0 | 0 |
Recurring | Level 1 | U.S. Treasuries | ||
Assets [Abstract] | ||
Marketable securities: | 0 | 0 |
Recurring | Level 1 | U.S. Government agency securities | ||
Assets [Abstract] | ||
Marketable securities: | 0 | 0 |
Recurring | Level 1 | Money market funds | ||
Assets [Abstract] | ||
Cash and cash equivalents | 113,904 | 132,037 |
Recurring | Level 1 | Certificates of deposit | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Level 1 | Commercial paper | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Level 1 | Corporate notes and bonds | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Level 2 | ||
Assets [Abstract] | ||
Investments in debt securities | 0 | 0 |
Total assets measured at fair value | 1,375,941 | 1,409,192 |
Warranty obligations | ||
Current | 0 | 0 |
Non-current | 0 | 0 |
Total warranty obligations measured at fair value | 0 | 0 |
Total liabilities measured at fair value | 0 | 0 |
Recurring | Level 2 | Certificates of deposit | ||
Assets [Abstract] | ||
Marketable securities: | 45,478 | 55,162 |
Recurring | Level 2 | Commercial paper | ||
Assets [Abstract] | ||
Marketable securities: | 73,573 | 69,743 |
Recurring | Level 2 | Corporate notes and bonds | ||
Assets [Abstract] | ||
Marketable securities: | 424,171 | 405,634 |
Recurring | Level 2 | U.S. Treasuries | ||
Assets [Abstract] | ||
Marketable securities: | 169,951 | 327,891 |
Recurring | Level 2 | U.S. Government agency securities | ||
Assets [Abstract] | ||
Marketable securities: | 662,768 | 547,856 |
Recurring | Level 2 | Money market funds | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Level 2 | Certificates of deposit | ||
Assets [Abstract] | ||
Cash and cash equivalents | 750 | |
Recurring | Level 2 | Commercial paper | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 1,694 |
Recurring | Level 2 | Corporate notes and bonds | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 462 |
Recurring | Level 3 | ||
Assets [Abstract] | ||
Investments in debt securities | 80,797 | 79,855 |
Total assets measured at fair value | 80,797 | 79,855 |
Warranty obligations | ||
Current | 23,486 | 28,667 |
Non-current | 127,064 | 133,126 |
Total warranty obligations measured at fair value | 150,550 | 161,793 |
Total liabilities measured at fair value | 150,550 | 161,793 |
Recurring | Level 3 | Certificates of deposit | ||
Assets [Abstract] | ||
Marketable securities: | 0 | 0 |
Recurring | Level 3 | Commercial paper | ||
Assets [Abstract] | ||
Marketable securities: | 0 | 0 |
Recurring | Level 3 | Corporate notes and bonds | ||
Assets [Abstract] | ||
Marketable securities: | 0 | 0 |
Recurring | Level 3 | U.S. Treasuries | ||
Assets [Abstract] | ||
Marketable securities: | 0 | 0 |
Recurring | Level 3 | U.S. Government agency securities | ||
Assets [Abstract] | ||
Marketable securities: | 0 | 0 |
Recurring | Level 3 | Money market funds | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Level 3 | Certificates of deposit | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Level 3 | Commercial paper | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Recurring | Level 3 | Corporate notes and bonds | ||
Assets [Abstract] | ||
Cash and cash equivalents | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Increase in liability as a result of increasing the profit element and risk premium input by 100 basis points | $ 1,100 | |
Decrease in liability as a result of decreasing the profit element and risk premium input by 100 basis points | (1,100) | |
Increase in liability as a result of decreasing the discount rate by 100 basis points | (10,400) | |
Decrease in liability as a result of increasing the discount rate by 100 basis points | 11,700 | |
Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in debt securities | 0 | $ 0 |
Level 2 | Recurring | Convertible Notes | Notes due 2028 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable fair value | 492,300 | |
Level 2 | Recurring | Convertible Notes | Notes due 2026 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable fair value | 579,800 | |
Level 2 | Recurring | Convertible Notes | Notes due 2025 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable fair value | $ 154,300 |
FAIR VALUE MEASUREMENTS - Debt
FAIR VALUE MEASUREMENTS - Debt Securities Schedule of Fair Value (Details) - Investments in debt securities - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 79,855 | $ 56,777 |
Fair value adjustments included in other income, net | 942 | 1,744 |
Balance at end of period | $ 80,797 | $ 58,521 |
FAIR VALUE MEASUREMENTS - Sch_2
FAIR VALUE MEASUREMENTS - Schedule of Changes in Nonfinancial Liabilities Related to Warrant Obligations Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Details) - Recurring - Total warranty obligations measured at fair value - Level 3 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 161,793 | $ 106,489 |
Accruals for warranties issued during period | 6,082 | 16,025 |
Changes in estimates | (12,018) | 1,245 |
Settlements | (6,540) | (7,834) |
Increase due to accretion expense | 2,905 | 3,545 |
Other | (1,672) | 38 |
Balance at end of period | $ 150,550 | $ 119,508 |
FAIR VALUE MEASUREMENTS - Summa
FAIR VALUE MEASUREMENTS - Summary of Significant Unobservable Inputs used in the Fair Value Measurement of Liabilities Designated as Level 3 (Details) - Recurring - Level 3 - Warranty obligations for products sold since January 1, 2014 | Mar. 31, 2024 | Dec. 31, 2023 |
Profit element and risk premium | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warranty obligations, measurement input | 17% | 17% |
Credit-adjusted risk-free rate | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Warranty obligations, measurement input | 7% | 7% |
RESTRUCTURING AND ASSET IMPAI_3
RESTRUCTURING AND ASSET IMPAIRMENT CHARGES - Rollforward (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning | $ 3,104 | |
Charges | 1,907 | $ 693 |
Restructuring reserve, ending | 399 | |
2023 Restructuring Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning | 3,104 | |
Charges | 1,907 | |
Cash payments | (2,652) | |
Non-cash settlement and other | (1,960) | |
Restructuring reserve, ending | 399 | |
Employee Severance and Benefits | 2023 Restructuring Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning | 1,304 | |
Charges | 270 | |
Cash payments | (1,152) | |
Non-cash settlement and other | (267) | |
Restructuring reserve, ending | 155 | |
Contract Termination Charges | 2023 Restructuring Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning | 1,800 | |
Charges | 1,305 | |
Cash payments | (1,500) | |
Non-cash settlement and other | (1,361) | |
Restructuring reserve, ending | 244 | |
Asset Impairment | 2023 Restructuring Plan | ||
Restructuring Reserve [Roll Forward] | ||
Restructuring reserve, beginning | 0 | |
Charges | 332 | |
Cash payments | 0 | |
Non-cash settlement and other | (332) | |
Restructuring reserve, ending | $ 0 |
DEBT - Long-term debt (Details)
DEBT - Long-term debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Total carrying amount of debt | $ 1,295,868 | $ 1,293,738 |
Less: debt, current | (97,264) | 0 |
Debt, non-current | 1,198,604 | 1,293,738 |
Convertible Notes | Notes due 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 575,000 | 575,000 |
Less: unamortized debt issuance costs | (5,082) | (5,408) |
Total carrying amount of debt | 569,918 | 569,592 |
Convertible Notes | Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 632,500 | 632,500 |
Less: unamortized debt issuance costs | (3,814) | (4,317) |
Total carrying amount of debt | 628,686 | 628,183 |
Convertible Notes | Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 102,173 | 102,175 |
Less: unamortized debt discount | (4,467) | (5,644) |
Less: unamortized debt issuance costs | (442) | (568) |
Total carrying amount of debt | 97,264 | $ 95,963 |
Less: debt, current | $ (102,200) |
DEBT - Schedule of Interest Cos
DEBT - Schedule of Interest Cost Recognized In Statements Of Operations (Details) - Convertible Notes - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Notes due 2028 | ||
Debt Instrument [Line Items] | ||
Amortization of debt issuance costs | $ 326 | $ 316 |
Total interest cost recognized | 326 | 316 |
Notes due 2026 | ||
Debt Instrument [Line Items] | ||
Amortization of debt issuance costs | 503 | 485 |
Total interest cost recognized | 503 | 485 |
Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 64 | 64 |
Amortization of debt discount | 1,177 | 1,105 |
Amortization of debt issuance costs | 126 | 118 |
Total interest cost recognized | 1,367 | 1,287 |
Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 0 | 50 |
Amortization of debt issuance costs | 0 | 10 |
Total interest cost recognized | $ 0 | $ 60 |
DEBT - Convertible Senior Notes
DEBT - Convertible Senior Notes due in 2028 Narrative (Details) - Convertible Notes - Notes due 2028 $ / shares in Units, $ in Thousands, shares in Millions | Mar. 01, 2021 USD ($) tradingDay $ / shares shares | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 575,000 | ||
Interest rate | 0% | ||
Proceeds from convertible debt | $ 566,400 | ||
Conversion ratio | 0.0035104 | ||
Debt conversion price (in USD per share) | $ / shares | $ 284.87 | ||
Unamortized debt issuance costs | $ 5,082 | $ 5,408 | |
Conversion shares (in shares) | shares | 2 | ||
Payment for bonds hedge | $ 161,600 | ||
Warrants issued, strike price (in USD per share) | $ / shares | $ 397.91 | ||
Proceeds from sale of warrants | $ 123,400 | ||
Period One | |||
Debt Instrument [Line Items] | |||
Threshold percentage | 130% | ||
Stock trigger price (in USD per share) | $ / shares | $ 370.33 | ||
Number of threshold trading days | tradingDay | 20 | ||
Number of consecutive trading days | tradingDay | 30 | ||
Measurement period percentage of stock price trigger | 98% | ||
Period Two | |||
Debt Instrument [Line Items] | |||
Threshold percentage | 100% | ||
Number of consecutive trading days | tradingDay | 5 | ||
Business day period after measurement period | 5 days |
DEBT - Convertible Senior Not_2
DEBT - Convertible Senior Notes due in 2026 Narrative (Details) - Convertible Notes - Notes due 2026 $ / shares in Units, shares in Millions | Mar. 01, 2021 USD ($) tradingDay $ / shares shares | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Mar. 12, 2021 USD ($) |
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 575,000,000 | $ 57,500,000 | ||
Interest rate | 0% | |||
Proceeds from convertible debt | $ 623,000,000 | |||
Conversion ratio | 0.0032523 | |||
Debt conversion price (in USD per share) | $ / shares | $ 307.47 | |||
Unamortized debt issuance costs | $ 3,814,000 | $ 4,317,000 | ||
Conversion shares (in shares) | shares | 2.1 | |||
Payment for bonds hedge | $ 124,600,000 | |||
Warrants issued, strike price (in USD per share) | $ / shares | $ 397.91 | |||
Proceeds from sale of warrants | $ 97,400,000 | |||
Period One | ||||
Debt Instrument [Line Items] | ||||
Threshold percentage | 130% | |||
Stock trigger price (in USD per share) | $ / shares | $ 399.71 | |||
Number of threshold trading days | tradingDay | 20 | |||
Number of consecutive trading days | tradingDay | 30 | |||
Measurement period percentage of stock price trigger | 98% | |||
Period Two | ||||
Debt Instrument [Line Items] | ||||
Threshold percentage | 100% | |||
Number of consecutive trading days | tradingDay | 5 | |||
Business day period after measurement period | 5 days |
DEBT - Convertible Senior Not_3
DEBT - Convertible Senior Notes due in 2025 Narrative (Details) | 1 Months Ended | 3 Months Ended | ||||
Dec. 29, 2023 USD ($) | Mar. 09, 2020 USD ($) tradingDay $ / shares shares | Feb. 29, 2024 USD ($) shares | Mar. 31, 2024 USD ($) $ / shares shares | Mar. 31, 2023 $ / shares | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||||
Principal amount outstanding | $ 1,295,868,000 | $ 1,293,738,000 | ||||
Debt, current | 97,264,000 | 0 | ||||
Convertible Notes | Notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | $ 320,000,000 | |||||
Interest rate | 0.25% | |||||
Debt conversion price (in USD per share) | $ / shares | $ 81.54 | |||||
Conversion ratio | 0.0122637 | |||||
Proceeds from convertible debt | $ 313,000,000 | |||||
Principal amount outstanding | 97,264,000 | 95,963,000 | ||||
Conversion of debt | $ 2,000 | |||||
Exercise of warrants related to convertible senior notes (in shares) | shares | 6 | |||||
Equity component of convertible senior notes, net | $ 100,000 | |||||
Debt, current | $ 102,200,000 | |||||
Effective percentage rate | 5.18% | |||||
Unamortized discount | $ 4,467,000 | $ 5,644,000 | ||||
Remaining discount amortization period | 10 months 24 days | |||||
Conversion shares (in shares) | shares | 3,900,000 | |||||
Payment for bonds hedge | $ 89,100,000 | |||||
Warrants issued, strike price (in USD per share) | $ / shares | $ 106.94 | |||||
Proceeds from sale of warrants | $ 71,600,000 | |||||
Convertible notes hedge transaction, options outstanding (in shares) | shares | 1,300,000 | |||||
Warrants outstanding (in shares) | shares | 1,300,000 | |||||
Period One | Convertible Notes | Notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Number of threshold trading days | tradingDay | 20 | |||||
Number of consecutive trading days | tradingDay | 30 | |||||
Threshold percentage | 130% | |||||
Stock trigger price (in USD per share) | $ / shares | $ 106 | $ 106 | ||||
Period Two | Convertible Notes | Notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Number of consecutive trading days | tradingDay | 5 | |||||
Threshold percentage | 100% | |||||
Business day period after measurement period | 5 days | |||||
Measurement period percentage of stock price trigger | 98% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Term of lease contract, maximum renewal term | 12 years |
Purchase obligation | $ 116.7 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Lease Expense Components (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease costs | $ 2,647 | $ 2,592 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease liabilities, current (Accrued liabilities) | $ 5,148 | $ 5,220 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current |
Operating lease liabilities, non-current (Other liabilities) | $ 18,781 | $ 18,802 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Total operating lease liabilities | $ 23,929 | $ 24,002 |
Weighted average remaining lease term | 5 years 9 months 18 days | 5 years 9 months 18 days |
Weighted average discount rate | 6.90% | 7% |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Supplemental Cash Flow and Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating cash flows from operating leases | $ 1,905 | $ 1,702 |
Lease liabilities arising from obtaining right-of-use assets | $ 1,695 | $ 1,516 |
COMMITMENTS AND CONTINGENCIES_5
COMMITMENTS AND CONTINGENCIES - Schedule of Minimum Lease Payments Under Noncancelable Operating Leases (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2024 (remaining nine months) | $ 4,964 | |
2025 | 6,228 | |
2026 | 4,565 | |
2027 | 3,211 | |
2028 | 2,621 | |
Thereafter | 7,795 | |
Total lease payments | 29,384 | |
Less: imputed lease interest | (5,455) | |
Total lease liabilities | $ 23,929 | $ 24,002 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Jul. 31, 2023 | |
Equity, Class of Treasury Stock [Line Items] | ||
Stock repurchased and retired during period (in shares) | 332,735 | |
Average cost, shares repurchased (in usd per share) | $ 126.21 | |
2023 Repurchase Program | ||
Equity, Class of Treasury Stock [Line Items] | ||
Repurchase program, shares authorized (in shares) | $ 1,000 | |
Repurchase of common stock | $ 42 | |
Repurchase program, remaining stock authorized for repurchase | $ 748 |
STOCK-BASED COMPENSATION - Summ
STOCK-BASED COMPENSATION - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 60,833 | $ 59,655 |
Cost of revenues | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 4,182 | 3,669 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 24,550 | 21,478 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | 18,178 | 21,419 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Total stock-based compensation expense | $ 13,923 | $ 13,089 |
STOCK-BASED COMPENSATION - Su_2
STOCK-BASED COMPENSATION - Summary of Stock-Based Compensation Expense Associated with Each Type of Award (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 60,833 | $ 59,655 |
RSUs and PSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 58,787 | 56,957 |
Employee stock purchase plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | 2,046 | 2,040 |
Post combination expense | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation expense | $ 0 | $ 658 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Share-Based Payment Arrangement [Abstract] | |
Total unrecognized compensation cost | $ 442.9 |
Weighted-average recognition period for unrecognized compensation cost | 2 years 6 months |
STOCK-BASED COMPENSATION - Su_3
STOCK-BASED COMPENSATION - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Mar. 31, 2024 USD ($) $ / shares shares | |
Number of Shares Outstanding | |
Outstanding, beginning balance (in shares) | shares | 692 |
Exercised (in shares) | shares | (585) |
Canceled (in shares) | shares | 0 |
Outstanding, ending balance (in shares) | shares | 107 |
Shares outstanding, vested and expected to vest (in shares) | shares | 107 |
Shares outstanding, exercisable (in shares) | shares | 107 |
Weighted- Average Exercise Price per Share | |
Outstanding, beginning balance (in usd per share) | $ 2.01 |
Exercised (in usd per share) | 1.87 |
Canceled (in usd per share) | 0 |
Outstanding, ending balance (in usd per share) | 2.77 |
Weighted-average exercise price, vested and expected (in usd per share) | 2.77 |
Weighted-average exercise price, exercisable (in usd per share) | $ 2.77 |
Weighted-Average Remaining Contractual Term | |
Outstanding | 6 months |
Vested and expected to vest | 6 months |
Exercisable | 6 months |
Aggregate Intrinsic Value | |
Exercised | $ | $ 70,514 |
Outstanding | $ | 12,655 |
Vested and expected to vest | $ | 12,655 |
Exercisable | $ | $ 12,655 |
Share price (in usd per share) | $ 120.98 |
STOCK-BASED COMPENSATION - Su_4
STOCK-BASED COMPENSATION - Summary of Stock Options Outstanding (Details) shares in Thousands | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options outstanding, number of shares (shares) | shares | 107 |
Options outstanding - weighted- average remaining life | 6 months |
Options outstanding - weighted- average exercise price (usd per share) | $ 2.77 |
Options exercisable - number of shares exercisable (shares) | shares | 107 |
Options exercisable - weighted-average exercise price (usd per share) | $ 2.77 |
$0.70 —– $0.70 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower limit (usd per share) | 0.70 |
Exercise price range, upper limit (usd per share) | $ 0.70 |
Options outstanding, number of shares (shares) | shares | 46 |
Options outstanding - weighted- average remaining life | 1 month 6 days |
Options outstanding - weighted- average exercise price (usd per share) | $ 0.70 |
Options exercisable - number of shares exercisable (shares) | shares | 46 |
Options exercisable - weighted-average exercise price (usd per share) | $ 0.70 |
$0.84 —– $0.84 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower limit (usd per share) | 0.84 |
Exercise price range, upper limit (usd per share) | $ 0.84 |
Options outstanding, number of shares (shares) | shares | 34 |
Options outstanding - weighted- average remaining life | 3 months 18 days |
Options outstanding - weighted- average exercise price (usd per share) | $ 0.84 |
Options exercisable - number of shares exercisable (shares) | shares | 34 |
Options exercisable - weighted-average exercise price (usd per share) | $ 0.84 |
$2.76 —– $2.90 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower limit (usd per share) | 2.76 |
Exercise price range, upper limit (usd per share) | $ 2.90 |
Options outstanding, number of shares (shares) | shares | 19 |
Options outstanding - weighted- average remaining life | 9 months 18 days |
Options outstanding - weighted- average exercise price (usd per share) | $ 2.81 |
Options exercisable - number of shares exercisable (shares) | shares | 19 |
Options exercisable - weighted-average exercise price (usd per share) | $ 2.81 |
$3.96 —– $3.96 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower limit (usd per share) | 3.96 |
Exercise price range, upper limit (usd per share) | $ 3.96 |
Options outstanding, number of shares (shares) | shares | 6 |
Options outstanding - weighted- average remaining life | 1 year |
Options outstanding - weighted- average exercise price (usd per share) | $ 3.96 |
Options exercisable - number of shares exercisable (shares) | shares | 6 |
Options exercisable - weighted-average exercise price (usd per share) | $ 3.96 |
$64.17 —– $64.17 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, lower limit (usd per share) | 64.17 |
Exercise price range, upper limit (usd per share) | $ 64.17 |
Options outstanding, number of shares (shares) | shares | 2 |
Options outstanding - weighted- average remaining life | 3 years 1 month 6 days |
Options outstanding - weighted- average exercise price (usd per share) | $ 64.17 |
Options exercisable - number of shares exercisable (shares) | shares | 2 |
Options exercisable - weighted-average exercise price (usd per share) | $ 64.17 |
STOCK-BASED COMPENSATION - Su_5
STOCK-BASED COMPENSATION - Summary of Restricted Stock Unit Activity and Performance Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Aggregate Intrinsic Value | ||
Share price (in usd per share) | $ 120.98 | |
Restricted stock units | ||
Number of Shares Outstanding | ||
Outstanding, beginning balance (in shares) | 2,332 | |
Granted (in shares) | 363 | |
Vested (in shares) | (398) | |
Canceled (in shares) | (156) | |
Outstanding, ending balance (in shares) | 2,141 | |
Number of shares outstanding, expected to vest (in shares) | 2,141 | |
Weighted Average Fair Value per Share at Grant Date | ||
Outstanding, beginning balance (in usd per share) | $ 177.64 | |
Granted (in usd per share) | 110.46 | |
Vested (in usd per share) | 179.38 | |
Canceled (in usd per share) | 174.94 | |
Outstanding, ending balance (in usd per share) | 166.12 | |
Weighted-Average Fair Value per Share at Grant Date, Expected to vest (in usd per share) | $ 166.12 | |
Weighted-Average Remaining Contractual Term | ||
Outstanding | 1 year 6 months | |
Expected to vest | 1 year 6 months | |
Aggregate Intrinsic Value | ||
Outstanding | $ 259,015 | |
Vested | 51,145 | |
Aggregate intrinsic value, expected to vest | $ 259,006 | |
Performance shares | ||
Number of Shares Outstanding | ||
Outstanding, beginning balance (in shares) | 396 | |
Granted (in shares) | 721 | |
Vested (in shares) | (98) | |
Canceled (in shares) | (98) | |
Outstanding, ending balance (in shares) | 921 | |
Number of shares outstanding, expected to vest (in shares) | 921 | |
Weighted Average Fair Value per Share at Grant Date | ||
Outstanding, beginning balance (in usd per share) | $ 235.99 | |
Granted (in usd per share) | 127.15 | |
Vested (in usd per share) | 214.52 | |
Canceled (in usd per share) | 214.88 | |
Outstanding, ending balance (in usd per share) | 155.33 | |
Weighted-Average Fair Value per Share at Grant Date, Expected to vest (in usd per share) | $ 155.33 | |
Weighted-Average Remaining Contractual Term | ||
Outstanding | 1 year 10 months 24 days | |
Expected to vest | 1 year 10 months 24 days | |
Aggregate Intrinsic Value | ||
Outstanding | $ 111,431 | |
Vested | 12,642 | |
Aggregate intrinsic value, expected to vest | $ 111,431 |
STOCK-BASED COMPENSATION - Su_6
STOCK-BASED COMPENSATION - Summary of Performance Stock Unit Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Aggregate Intrinsic Value | ||
Share price (in usd per share) | $ 120.98 | |
Performance shares | ||
Number of Shares Outstanding | ||
Outstanding, beginning balance (in shares) | 396 | |
Granted (in shares) | 721 | |
Vested (in shares) | (98) | |
Canceled (in shares) | (98) | |
Outstanding, ending balance (in shares) | 921 | |
Expected to vest (in shares) | 921 | |
Weighted Average Fair Value per Share at Grant Date | ||
Outstanding, beginning balance (in usd per share) | $ 235.99 | |
Granted (in usd per share) | 127.15 | |
Vested (in usd per share) | 214.52 | |
Canceled (in usd per share) | 214.88 | |
Outstanding, ending balance (in usd per share) | 155.33 | |
Weighted-Average Fair Value per Share at Grant Date, Expected to vest (in usd per share) | $ 155.33 | |
Weighted-Average Remaining Contractual Term | ||
Weighted average remaining contractual term | 1 year 10 months 24 days | |
Expected to vest | 1 year 10 months 24 days | |
Aggregate Intrinsic Value | ||
Vested | $ 12,642 | |
Outstanding | 111,431 | |
Aggregate intrinsic value, expected to vest | $ 111,431 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision | $ (4,598) | $ (32,100) |
Loss before income taxes | $ (11,499) | $ 178,973 |
NET INCOME (LOSS) PER SHARE - S
NET INCOME (LOSS) PER SHARE - Schedule of Computation of Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net (loss) income | $ (16,097) | $ 146,873 |
Convertible senior notes interest and financing costs, net of tax | 0 | 1,604 |
Adjusted net income (loss) | $ (16,097) | $ 148,477 |
Denominator: | ||
Weighted average common shares outstanding (in shares) | 135,891 | 136,689 |
Employee stock-based awards (in shares) | 0 | 2,434 |
Weighted average common shares outstanding for diluted calculation (in shares) | 135,891 | 145,986 |
Basic and diluted net income (loss) per share | ||
Basic (in shares) | $ (0.12) | $ 1.07 |
Diluted (in shares) | $ (0.12) | $ 1.02 |
Notes due 2025 | ||
Denominator: | ||
Warrants (in shares) | 0 | 635 |
Convertible Notes | Notes due 2023 | ||
Denominator: | ||
Notes due (in shares) | 0 | 900 |
Convertible Notes | Notes due 2025 | ||
Denominator: | ||
Notes due (in shares) | 0 | 1,253 |
Convertible Notes | Notes due 2026 | ||
Denominator: | ||
Notes due (in shares) | 0 | 2,057 |
Convertible Notes | Notes due 2028 | ||
Denominator: | ||
Notes due (in shares) | 0 | 2,018 |
NET INCOME (LOSS) PER SHARE- Sc
NET INCOME (LOSS) PER SHARE- Schedule of Potentially Dilutive Securities Excluded from the Computation of Diluted Net Income Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 16,807 | 4,193 |
Employee stock-based awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 1,656 | 781 |
Notes due | Notes due 2028 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 2,018 | 0 |
Notes due | Notes due 2026 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 2,057 | 0 |
Notes due | Notes due 2025 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 1,253 | 0 |
Warrants | Notes due 2028 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 4,865 | 1,690 |
Warrants | Notes due 2026 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities (in shares) | 4,958 | 1,722 |