Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 24, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-38872 | |
Entity Registrant Name | Pinterest, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 26-3607129 | |
Entity Address, Address Line One | 651 Brannan Street | |
Entity Address, City or Town | San Francisco | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94107 | |
City Area Code | 415 | |
Local Phone Number | 762-7100 | |
Title of 12(b) Security | Class A Common Stock, $0.00001 par value | |
Trading Symbol | PINS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity Central Index Key | 0001506293 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 586,342,235 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 88,016,296 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,168,419 | $ 1,611,063 |
Marketable securities | 1,162,260 | 1,087,164 |
Accounts receivable, net of allowances of $9,554 and $12,672 as of September 30, 2023 and December 31, 2022, respectively | 624,223 | 681,532 |
Prepaid expenses and other current assets | 84,365 | 74,918 |
Total current assets | 3,039,267 | 3,454,677 |
Property and equipment, net | 26,998 | 59,575 |
Operating lease right-of-use assets | 105,300 | 206,253 |
Goodwill and intangible assets, net | 119,302 | 124,822 |
Other assets | 13,715 | 17,403 |
Total assets | 3,304,582 | 3,862,730 |
Current liabilities: | ||
Accounts payable | 71,490 | 87,920 |
Accrued expenses and other current liabilities | 232,855 | 292,611 |
Total current liabilities | 304,345 | 380,531 |
Operating lease liabilities | 170,860 | 178,694 |
Other liabilities | 22,735 | 21,851 |
Total liabilities | 497,940 | 581,076 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Class A common stock, $0.00001 par value, 6,666,667 shares authorized, 585,737 and 593,918 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively; Class B common stock, $0.00001 par value, 1,333,333 shares authorized, 87,902 and 89,284 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively | 7 | 7 |
Additional paid-in capital | 5,165,530 | 5,407,724 |
Accumulated other comprehensive loss | (7,449) | (11,419) |
Accumulated deficit | (2,351,446) | (2,114,658) |
Total stockholders’ equity | 2,806,642 | 3,281,654 |
Total liabilities and stockholders’ equity | $ 3,304,582 | $ 3,862,730 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Allowances | $ 9,554 | $ 12,672 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 6,666,667 | 6,666,667 |
Common stock, shares issued (in shares) | 585,737 | 593,918 |
Common stock, shares outstanding (in shares) | 585,737 | 593,918 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 1,333,333 | 1,333,333 |
Common stock, shares issued (in shares) | 87,902 | 89,284 |
Common stock, shares outstanding (in shares) | 87,902 | 89,284 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Statement [Abstract] | ||||
Revenue | $ 763,203 | $ 684,550 | $ 2,073,809 | $ 1,925,365 |
Costs and expenses: | ||||
Cost of revenue | 170,998 | 182,603 | 510,664 | 493,569 |
Research and development | 264,698 | 254,684 | 800,435 | 683,740 |
Sales and marketing | 225,929 | 229,873 | 670,299 | 615,863 |
General and administrative | 106,577 | 86,765 | 414,339 | 239,738 |
Total costs and expenses | 768,202 | 753,925 | 2,395,737 | 2,032,910 |
Loss from operations | (4,999) | (69,375) | (321,928) | (107,545) |
Interest income (expense), net | 26,691 | 8,928 | 76,480 | 13,649 |
Other income (expense), net | (4,596) | (9,726) | (2,094) | (20,822) |
Income (loss) before provision for (benefit from) income taxes | 17,096 | (70,173) | (247,542) | (114,718) |
Provision for (benefit from) income taxes | 10,363 | (4,992) | (10,754) | (1,180) |
Net income (loss) | $ 6,733 | $ (65,181) | $ (236,788) | $ (113,538) |
Net income (loss) per share: | ||||
Basic (in dollars per share) | $ 0.01 | $ (0.10) | $ (0.35) | $ (0.17) |
Diluted (in dollars per share) | $ 0.01 | $ (0.10) | $ (0.35) | $ (0.17) |
Weighted-average shares used in computing net income (loss) per share: | ||||
Basic (in shares) | 669,261 | 669,171 | 674,853 | 662,816 |
Diluted (in shares) | 687,101 | 669,171 | 674,853 | 662,816 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 6,733 | $ (65,181) | $ (236,788) | $ (113,538) |
Other comprehensive income (loss), net of taxes: | ||||
Change in unrealized gain (loss) on available-for-sale marketable securities | 1,646 | (1,772) | 4,404 | (11,810) |
Change in foreign currency translation adjustment | (389) | (1,075) | (434) | (2,114) |
Comprehensive income (loss) | $ 7,990 | $ (68,028) | $ (232,818) | $ (127,462) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Class A and Class B Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2021 | 656,872 | ||||
Beginning balance at Dec. 31, 2021 | $ 3,038,743 | $ 7 | $ 5,059,528 | $ (2,181) | $ (2,018,611) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Release of restricted stock units and issuance of restricted stock awards, net (in shares) | 15,471 | ||||
Shares repurchased for tax withholdings on release of restricted stock units and restricted stock awards | (98,357) | (98,357) | |||
Issuance of common stock for cash upon exercise of stock options, net (in shares) | 4,806 | ||||
Issuance of common stock for cash upon exercise of stock options, net | 4,807 | 4,807 | |||
Share-based compensation | 326,811 | 326,811 | |||
Other comprehensive income (loss) | (13,924) | (13,924) | |||
Net income (loss) | (113,538) | (113,538) | |||
Ending balance (in shares) at Sep. 30, 2022 | 677,149 | ||||
Ending balance at Sep. 30, 2022 | 3,144,542 | $ 7 | 5,292,789 | (16,105) | (2,132,149) |
Beginning balance (in shares) at Jun. 30, 2022 | 670,126 | ||||
Beginning balance at Jun. 30, 2022 | 3,136,089 | $ 7 | 5,216,308 | (13,258) | (2,066,968) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Release of restricted stock units and issuance of restricted stock awards, net (in shares) | 6,774 | ||||
Shares repurchased for tax withholdings on release of restricted stock units and restricted stock awards | (60,404) | (60,404) | |||
Issuance of common stock for cash upon exercise of stock options, net (in shares) | 249 | ||||
Issuance of common stock for cash upon exercise of stock options, net | 727 | 727 | |||
Share-based compensation | 136,158 | 136,158 | |||
Other comprehensive income (loss) | (2,847) | (2,847) | |||
Net income (loss) | (65,181) | (65,181) | |||
Ending balance (in shares) at Sep. 30, 2022 | 677,149 | ||||
Ending balance at Sep. 30, 2022 | 3,144,542 | $ 7 | 5,292,789 | (16,105) | (2,132,149) |
Beginning balance (in shares) at Dec. 31, 2022 | 683,202 | ||||
Beginning balance at Dec. 31, 2022 | 3,281,654 | $ 7 | 5,407,724 | (11,419) | (2,114,658) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Release of restricted stock units and issuance of restricted stock awards, net (in shares) | 9,487 | ||||
Shares repurchased for tax withholdings on release of restricted stock units and restricted stock awards | $ (243,926) | (243,926) | |||
Issuance of common stock for cash upon exercise of stock options, net (in shares) | 1,666 | 1,666 | |||
Issuance of common stock for cash upon exercise of stock options, net | $ 4,664 | 4,664 | |||
Issuance of common stock related to charitable contributions (in shares) | 500 | ||||
Issuance of common stock related to charitable contributions | 12,890 | 12,890 | |||
Repurchases of Class A common stock (in shares) | (21,216) | ||||
Repurchases of Class A common stock | (500,455) | (500,455) | |||
Share-based compensation | 484,633 | 484,633 | |||
Other comprehensive income (loss) | 3,970 | 3,970 | |||
Net income (loss) | (236,788) | (236,788) | |||
Ending balance (in shares) at Sep. 30, 2023 | 673,639 | ||||
Ending balance at Sep. 30, 2023 | 2,806,642 | $ 7 | 5,165,530 | (7,449) | (2,351,446) |
Beginning balance (in shares) at Jun. 30, 2023 | 669,516 | ||||
Beginning balance at Jun. 30, 2023 | 2,693,082 | $ 7 | 5,059,960 | (8,706) | (2,358,179) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Release of restricted stock units and issuance of restricted stock awards, net (in shares) | 3,232 | ||||
Shares repurchased for tax withholdings on release of restricted stock units and restricted stock awards | (80,723) | (80,723) | |||
Issuance of common stock for cash upon exercise of stock options, net (in shares) | 391 | ||||
Issuance of common stock for cash upon exercise of stock options, net | 1,448 | 1,448 | |||
Issuance of common stock related to charitable contributions (in shares) | 500 | ||||
Issuance of common stock related to charitable contributions | 12,890 | 12,890 | |||
Repurchases of Class A common stock | 74 | 74 | |||
Share-based compensation | 171,881 | 171,881 | |||
Other comprehensive income (loss) | 1,257 | 1,257 | |||
Net income (loss) | 6,733 | 6,733 | |||
Ending balance (in shares) at Sep. 30, 2023 | 673,639 | ||||
Ending balance at Sep. 30, 2023 | $ 2,806,642 | $ 7 | $ 5,165,530 | $ (7,449) | $ (2,351,446) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities | ||
Net income (loss) | $ (236,788) | $ (113,538) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 16,185 | 26,884 |
Share-based compensation | 484,633 | 326,811 |
Non-cash charitable contributions | 12,890 | 0 |
Impairment and abandonment charges for leases and leasehold improvements | 117,315 | 0 |
Other | (15,470) | 10,731 |
Changes in assets and liabilities: | ||
Accounts receivable | 59,303 | 144,083 |
Prepaid expenses and other assets | (2,308) | (37,960) |
Operating lease right-of-use assets | 43,785 | 39,140 |
Accounts payable | (16,711) | 71,603 |
Accrued expenses and other liabilities | (54,780) | (17,852) |
Operating lease liabilities | (53,373) | (38,990) |
Net cash provided by operating activities | 354,681 | 410,912 |
Investing activities | ||
Purchases of property and equipment and intangible assets | (3,780) | (27,931) |
Purchases of marketable securities | (1,065,445) | (688,146) |
Sales of marketable securities | 31,709 | 4,168 |
Maturities of marketable securities | 978,804 | 735,819 |
Acquisition of business, net of cash acquired | 0 | (86,059) |
Net cash used in investing activities | (58,712) | (62,149) |
Financing activities | ||
Proceeds from exercise of stock options, net | 4,664 | 4,807 |
Repurchases of Class A common stock | (500,000) | 0 |
Shares repurchased for tax withholdings on release of restricted stock units and restricted stock awards | (243,926) | (98,357) |
Net cash used in financing activities | (739,262) | (93,550) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 648 | (3,558) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (442,645) | 251,655 |
Cash, cash equivalents and restricted cash, beginning of period | 1,617,660 | 1,427,064 |
Cash, cash equivalents and restricted cash, end of period | 1,175,015 | 1,678,719 |
Supplemental cash flow information | ||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ 35,347 | $ 19,783 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Sep. 30, 2022 |
Reconciliation of cash, cash equivalents and restricted cash to condensed consolidated balance sheets | ||
Cash and cash equivalents | $ 1,168,419 | $ 1,671,320 |
Restricted cash included in prepaid expenses and other current assets | 2,542 | 1,869 |
Restricted cash included in other assets | 4,054 | 5,530 |
Total cash, cash equivalents and restricted cash | $ 1,175,015 | $ 1,678,719 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | Description of Business and Summary of Significant Accounting Policies Description of Business Pinterest was incorporated in Delaware in 2008 and is headquartered in San Francisco, California. Pinterest is a visual discovery engine that people around the globe use to find the inspiration to create a life they love. We generate revenue by delivering ads on our website and mobile application. Basis of Presentation and Consolidation We prepared the accompanying condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). The condensed consolidated financial statements include the accounts of Pinterest, Inc. and its wholly owned subsidiaries. We have eliminated all intercompany balances and transactions. The condensed consolidated balance sheet as of December 31, 2022 included herein was derived from the audited financial statements as of that date. We have condensed or omitted certain information and notes normally included in complete financial statements prepared in accordance with GAAP. As such, these unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2022, which are included in our Annual Report on Form 10-K. In our opinion, the accompanying condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the results for the interim periods presented, but they are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2023. Reclassifications We have reclassified certain amounts in prior periods to conform with current presentation. Use of Estimates Preparing our condensed consolidated financial statements in conformity with GAAP requires us to make estimates and judgments that affect amounts reported in the condensed consolidated financial statements and accompanying notes. We base these estimates and judgments on historical experience and various other assumptions that we consider reasonable. GAAP requires us to make estimates and assumptions in several areas, including the fair values of financial instruments, leases, assets acquired and liabilities assumed through business combinations, share-based awards, and contingencies as well as the collectability of our accounts receivable, the useful lives of our intangible assets and property and equipment, the incremental borrowing rate we use to determine our operating lease liabilities, and revenue recognition, among others. Actual results could differ materially from these estimates and judgments. Significant Accounting Policies There have been no material changes to our significant accounting policies from our Annual Report on Form 10-K for the year ended December 31, 2022. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair values of the financial instruments we measure at fair value on a recurring basis are as follows (in thousands): September 30, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 869,051 $ — $ — $ 869,051 Commercial paper — 80,604 — 80,604 Marketable securities: Corporate bonds — 359,680 — 359,680 Commercial paper — 245,549 — 245,549 U.S. treasury securities 292,659 — — 292,659 Certificates of deposit — 157,821 — 157,821 U.S. agency bonds — 85,984 — 85,984 Non-U.S. government and supranational bonds — 14,552 — 14,552 Municipal securities — 6,015 — 6,015 Prepaid expenses and other current assets: Certificates of deposit — 2,542 — 2,542 Other assets: Certificates of deposit $ — $ 4,054 $ — $ 4,054 December 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,017,191 $ — $ — $ 1,017,191 Commercial paper — 111,975 — 111,975 Corporate bonds — 1,542 — 1,542 U.S. treasury securities 5,990 — — 5,990 Marketable securities: Corporate bonds — 363,075 — 363,075 Commercial paper — 241,192 — 241,192 U.S. treasury securities 242,916 — — 242,916 Certificates of deposit — 158,246 — 158,246 Municipal securities — 27,449 — 27,449 Non-U.S. government and supranational bonds — 22,599 — 22,599 U.S. agency bonds — 31,687 — 31,687 Prepaid expenses and other current assets: Certificates of deposit — 1,067 — 1,067 Other assets: Certificates of deposit $ — $ 5,530 $ — $ 5,530 We classify our marketable securities within Level 1 or Level 2 because we determine their fair values using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Gross unrealized gains and losses on our marketable securities were immaterial in the aggregate as of September 30, 2023 and December 31, 2022. We evaluated all available evidence and did not recognize any allowance for credit losses for our marketable securities as of September 30, 2023 and December 31, 2022. The fair value of our marketable securities by contractual maturity is as follows (in thousands): September 30, 2023 Due in one year or less $ 893,173 Due after one to five years 269,087 Total $ 1,162,260 Net realized gains and losses from sales of available-for-sale securities were not material for any period presented. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Purchase Commitments In April 2021, we entered into a private pricing addendum with Amazon Web Services (“AWS”), which governs our use of cloud computing infrastructure provided by AWS. Under the pricing addendum, we are required to purchase at least $3,250.0 million of cloud services from AWS through April 2029. If we fail to do so, we are required to pay the difference between the amount we spend and the required commitment amount. As of September 30, 2023, our remaining contractual commitment is $1,908.7 million. We expect to meet our remaining commitment. Legal Matters We are involved in various lawsuits, claims and proceedings that arise in the ordinary course of business. While the results of legal matters are inherently uncertain, we do not believe there is a reasonable possibility that the ultimate resolution of these matters, either individually or in aggregate, will have a material adverse effect on our business, financial position, results of operations or cash flows. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stockholders' Equity | Stockholders' Equity Equity Incentive Plan In June 2009, our board of directors adopted and approved our 2009 Stock Plan (the "2009 Plan"), which provides for the issuance of stock options, Restricted Stock Awards ("RSAs") and Restricted Stock Units ("RSUs") to qualified employees, directors and consultants. Stock options granted under our 2009 Plan have a maximum life of 10 years and an exercise price not less than 100% of the fair market value of our common stock on the date of grant. RSUs granted under our 2009 Plan have a maximum life of seven years. No shares of our common stock were reserved for future issuance under our 2009 Plan as of September 30, 2023. Our 2019 Omnibus Incentive Plan ("2019 Plan") became effective upon closing of our initial public offering and succeeds our 2009 Plan. Our 2019 Plan provides for the issuance of stock options, RSAs, RSUs and other equity- or cash-based awards to qualified employees, directors and consultants. Stock options granted under our 2019 Plan have a maximum life of 10 years and an exercise price not less than 100% of the fair market value of our common stock on the date of grant. 142,711,633 shares of our Class A common stock were reserved for future issuance under our 2019 Plan as of September 30, 2023. The number of shares of our Class A common stock available for issuance under the 2019 Plan will be increased by the number of shares of our Class B common stock subject to awards outstanding under our 2009 Plan that would, but for the terms of the 2019 Plan, have returned to the share reserves of the 2009 Plan pursuant to the terms of such awards, including as the result of forfeiture, repurchase, expiration or retention by us in order to satisfy an award’s exercise price or tax withholding obligations. In addition, the number of shares of our Class A common stock reserved for issuance under our 2019 Plan will automatically increase on the first day of each fiscal year through and including January 1, 2029, in an amount equal to 5% of the total number of shares of our Class A common stock and our Class B common stock outstanding on the last day of the calendar month before the date of each automatic increase, or a lesser number of shares determined by our board of directors. Stock Option Activity Stock option activity during the nine months ended September 30, 2023, was as follows (in thousands, except per share amounts): Stock Options Outstanding Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (1) (in years) Outstanding as of December 31, 2022 15,799 $ 13.25 6.1 $ 174,165 Exercised (1,666) 2.80 Outstanding as of September 30, 2023 14,133 $ 14.49 5.9 $ 177,236 Exercisable as of September 30, 2023 7,648 $ 9.83 3.5 $ 131,553 (1) We calculate intrinsic value based on the difference between the exercise price of in-the-money-stock options and the fair value of our common stock as of the respective balance sheet date. The total grant-date fair value of stock options vested during the nine months ended September 30, 2023 and 2022, was $21.3 million and $2.4 million, respectively. The aggregate intrinsic value of stock options exercised during the nine months ended September 30, 2023 and 2022 was $38.9 million and $88.2 million, respectively. Restricted Stock Unit and Restricted Stock Award Activity RSU and RSA activity during the nine months ended September 30, 2023, was as follows (in thousands, except per share amounts): Restricted Stock Units and Restricted Stock Awards Outstanding Shares Weighted Average Grant Date Fair Value Outstanding as of December 31, 2022 54,518 $ 25.46 Granted (1) 25,184 25.14 Released (21,213) 24.89 Forfeited (1) (7,090) 23.44 Outstanding as of September 30, 2023 51,399 $ 25.82 (1) Includes the effects of awards modified during the nine months ended September 30, 2023. Share-Based Compensation Share-based compensation expense during the three and nine months ended September 30, 2023 and 2022, was as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Cost of revenue $ 2,989 $ 2,189 $ 8,038 $ 4,800 Research and development 112,879 89,669 315,724 223,995 Sales and marketing 25,857 23,294 71,444 53,564 General and administrative 30,156 21,006 89,427 44,452 Total share-based compensation $ 171,881 $ 136,158 $ 484,633 $ 326,811 As of September 30, 2023, we had $1,284.2 million of unrecognized share-based compensation expense, which we expect to recognize over a weighted-average period of 2.4 years. Stock Repurchase On February 2, 2023, our board of directors authorized a stock repurchase program of up to $500.0 million of our Class A common stock, which we completed in the second quarter of 2023. Under the program, we repurchased and retired 21,215,663 shares of our Class A common stock for an aggregate purchase price of $500.5 million, including $0.5 million excise tax resulting from the Inflation Reduction Act of 2022. On September 16, 2023, our board of directors authorized a new stock repurchase program of up to $1.0 billion of our Class A common stock. Under the stock repurchase program, we are authorized to repurchase, from time-to-time, shares of our Class A common stock through open market purchases, in privately negotiated transactions or in such other manner as permitted by securities law and as determined by management at such time and in such amounts as management may decide. The program does not obligate us to repurchase any specific number of shares and may be modified, suspended or discontinued at any time. The timing, manner, price and amount of any repurchases are determined by management in its discretion and depend on a variety of factors, including legal requirements, price and economic and market conditions. As of September 30, 2023, $1.0 billion remains available for repurchases under the stock repurchase program. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | Net Income (Loss) Per Share We present net income (loss) per share using the two-class method required for multiple classes of common stock. Holders of our Class A and Class B common stock have identical rights except with respect to voting, conversion and transfer rights and therefore share equally in our net income or losses. We calculate basic net income (loss) per share by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted income (loss) per share gives effect to all potential shares of common stock, including stock options, RSAs and RSUs, to the extent these are dilutive. The calculation of diluted net income (loss) of Class A common stock assumes the conversion of our Class B common stock to Class A common stock, while the diluted net income (loss) of Class B common stock does not assume the conversion of those shares to Class A common stock. We calculated basic and diluted net income (loss) per share as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Class A Class B Class A Class B Class A Class B Class A Class B Basic net income (loss) per share: Numerator: Net income (loss) $ 5,847 $ 886 $ (56,362) $ (8,819) $ (205,602) $ (31,186) $ (98,224) $ (15,314) Denominator: Basic weighted-average shares used in computing net income (loss) per share 581,235 88,026 578,637 90,534 585,973 88,880 573,415 89,401 Basic net income (loss) per share $ 0.01 $ 0.01 $ (0.10) $ (0.10) $ (0.35) $ (0.35) $ (0.17) $ (0.17) Diluted net income (loss) per share: Numerator: Net income (loss) $ 5,847 $ 886 $ (56,362) $ (8,819) $ (205,602) $ (31,186) $ (98,224) $ (15,314) Reallocation of net income as a result of conversion of Class B to Class A common stock 886 — — — — — — — Reallocation of net income to Class B common stock — (25) — — — — — — Diluted net income (loss) $ 6,733 $ 861 $ (56,362) $ (8,819) $ (205,602) $ (31,186) $ (98,224) $ (15,314) Denominator Basic weighted-average shares used in computing net income (loss) per share 581,235 88,026 578,637 90,534 585,973 88,880 573,415 89,401 Conversion of Class B to Class A common stock 88,026 — — — — — — — Weighted average effect of dilutive potential common stock 17,840 — — — — — — — Diluted weighted-average shares used in computing net income (loss) per share 687,101 88,026 578,637 90,534 585,973 88,880 573,415 89,401 Diluted net income (loss) per share $ 0.01 $ 0.01 $ (0.10) $ (0.10) $ (0.35) $ (0.35) $ (0.17) $ (0.17) Basic net loss per share is the same as diluted net loss per share for the periods we reported net losses. We excluded the following weighted-average potential shares of common stock from our calculation of diluted net income (loss) per share because these would be anti-dilutive (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Outstanding stock options 8,553 20,004 14,750 17,063 Unvested restricted stock units and restricted stock awards 5,327 57,967 53,967 47,941 Total 13,880 77,971 68,717 65,004 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesWe determine our income tax provision for interim periods using an estimate of our annual effective tax rate adjusted for discrete items occurring during the periods presented. The primary difference between our effective tax rate and the federal statutory rate is the full valuation allowance we have established on our federal, state and foreign net operating losses and credits. Income taxes are not material for the three and nine months ended September 30, 2023 and 2022. All periods include the effects of the capitalization and amortization of research and development expenses as required by the 2017 Tax Cuts and Jobs Act.We are subject to taxation in the U.S. and various other state and foreign jurisdictions. As we have net operating loss carryforwards for U.S. federal and state jurisdictions, the statute of limitations is open for all tax years. For material foreign jurisdictions, the tax years open to examination include the years 2018 and forward. |
Geographical Information
Geographical Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Geographical Information | Geographical Information Revenue disaggregated by geography based on our customers’ billing addresses was as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 U.S. and Canada (1) $ 592,366 $ 562,434 $ 1,613,840 $ 1,555,233 Europe (2) 118,469 90,110 334,666 283,758 Rest of World 52,368 32,006 125,303 86,374 Total revenue $ 763,203 $ 684,550 $ 2,073,809 $ 1,925,365 (1) United States revenue was $560.0 million and $534.1 million for the three months ended September 30, 2023 and 2022, respectively, and $1,527.5 million and $1,475.3 million for the nine months ended September 30, 2023 and 2022, respectively. No individual country other than the United States exceeded 10% of our total revenue for any period presented. (2) Europe includes Russia and Turkey. Property and equipment, net and operating lease right-of-use assets by geography is as follows (in thousands): September 30, December 31, 2023 2022 United States $ 70,265 $ 205,374 Ireland 17,748 4,950 Mexico 13,762 11,627 International (1) 30,523 43,877 Total property and equipment, net and operating lease right-of-use assets $ 132,298 $ 265,828 (1) Other than the United States, Ireland and Mexico, no other country exceeded 10% of our total property and equipment, net and operating lease right-of-use assets for any period presented. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | RestructuringIn March 2023, we initiated a restructuring plan intended to support our corporate strategy, improve efficiency and position our business in light of the ongoing macroeconomic environment (the “Plan”). As part of the Plan, we announced a workforce reduction of approximately 4%. We also ceased occupying and plan to sublease our former headquarters at 505 Brannan Street in San Francisco and abandoned certain other leased office spaces in order to adjust our office space footprint to better align with the needs of our flexible work model. As a result, we recorded impairment and abandonment charges for the related operating lease right-of-use assets and leasehold improvements. The Plan was completed and restructuring charges during the three months ended September 30, 2023 were immaterial. Restructuring charges during the nine months ended September 30, 2023 were as follows (in thousands): Nine Months Ended September 30, 2023 Office Space Reductions (1) Severance and Other Personnel Costs Total Cost of revenue $ — $ — $ — Research and development — 4,696 4,696 Sales and marketing — 2,749 2,749 General and administrative 117,315 2,122 119,437 Total $ 117,315 $ 9,567 $ 126,882 (1) Office space reductions are non-cash and include impairment charges and accelerated expense related to operating lease right-of-use assets and leasehold improvements. We estimated the fair value of the impaired assets using a discounted cash flow model based on market participant assumptions. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsIn October 2023, we amended our existing five-year $400.0 million revolving credit facility (the “2022 revolving credit facility”), which increased our aggregate commitment to $500.0 million and reduced our accordion option from $405.0 million to $305.0 million. There were no other material changes to the existing terms and conditions of the 2022 revolving credit facility. We are in compliance with all covenants, and there were no amounts outstanding under the credit facility as of the filing of the Quarterly Report on Form 10-Q. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income (loss) | $ 6,733 | $ (65,181) | $ (236,788) | $ (113,538) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 shares | Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Sabrina Ellis [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On August 14, 2023, Sabrina Ellis, our Chief Product Officer, adopted a trading plan intended to satisfy Rule 10b5-1(c) under the Exchange Act (“Rule 10b5-1(c)”) to sell, between November 15, 2023 and August 27, 2024, (a) up to 51,372 shares of our Class A common stock, and (b) up to 50% of net shares of our Class A common stock to be issued to Ms. Ellis after the satisfaction of applicable taxes following the vesting and settlement of 362,611 RSUs. | |
Name | Sabrina Ellis | |
Title | Chief Product Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 14, 2023 | |
Arrangement Duration | 286 days | |
Evan Sharp [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On August 15, 2023, Evan Sharp, a member of our board of directors, adopted a trading plan intended to satisfy Rule 10b5-1(c) to sell, between November 15, 2023 and October 16, 2024, (a) up to 765,859 shares of our Class B common stock, held directly or indirectly, and (b) the total number of shares of our Class B common stock to be issued to Mr. Sharp after the satisfaction of applicable taxes following the vesting and settlement of 350,001 RSUs. | |
Name | Evan Sharp | |
Title | member of our board of directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 15, 2023 | |
Arrangement Duration | 336 days | |
Sabrina Ellis Trading Arrangement, Class A Common Stock [Member] | Sabrina Ellis [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 51,372 | 51,372 |
Sabrina Ellis Trading Arrangement, RSUs [Member] | Sabrina Ellis [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 362,611 | 362,611 |
Evan Sharp Trading Arrangement, Class B Common Stock [Member] | Evan Sharp [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 765,859 | 765,859 |
Evan Sharp Trading Arrangement, RSUs [Member] | Evan Sharp [Member] | ||
Trading Arrangements, by Individual | ||
Aggregate Available | 350,001 | 350,001 |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | We prepared the accompanying condensed consolidated financial statements in accordance with generally accepted accounting principles in the United States ("GAAP"). |
Consolidation | We have eliminated all intercompany balances and transactions. |
Reclassifications | Reclassifications We have reclassified certain amounts in prior periods to conform with current presentation. |
Use of Estimates | Use of Estimates Preparing our condensed consolidated financial statements in conformity with GAAP requires us to make estimates and judgments that affect amounts reported in the condensed consolidated financial statements and accompanying notes. We base these estimates and judgments on historical experience and various other assumptions that we consider reasonable. GAAP requires us to make estimates and assumptions in several areas, including the fair values of financial instruments, leases, assets acquired and liabilities assumed through business combinations, share-based awards, and contingencies as well as the collectability of our accounts receivable, the useful lives of our intangible assets and property and equipment, the incremental borrowing rate we use to determine our operating lease liabilities, and revenue recognition, among others. Actual results could differ materially from these estimates and judgments. |
Net Loss Per Share Attributable to Common Stockholders | We present net income (loss) per share using the two-class method required for multiple classes of common stock. Holders of our Class A and Class B common stock have identical rights except with respect to voting, conversion and transfer rights and therefore share equally in our net income or losses. We calculate basic net income (loss) per share by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted income (loss) per share gives effect to all potential shares of common stock, including stock options, RSAs and RSUs, to the extent these are dilutive. The calculation of diluted net income (loss) of Class A common stock assumes the conversion of our Class B common stock to Class A common stock, while the diluted net income (loss) of Class B common stock does not assume the conversion of those shares to Class A common stock. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Values of Financial Instruments Measured on a Recurring Basis | The fair values of the financial instruments we measure at fair value on a recurring basis are as follows (in thousands): September 30, 2023 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 869,051 $ — $ — $ 869,051 Commercial paper — 80,604 — 80,604 Marketable securities: Corporate bonds — 359,680 — 359,680 Commercial paper — 245,549 — 245,549 U.S. treasury securities 292,659 — — 292,659 Certificates of deposit — 157,821 — 157,821 U.S. agency bonds — 85,984 — 85,984 Non-U.S. government and supranational bonds — 14,552 — 14,552 Municipal securities — 6,015 — 6,015 Prepaid expenses and other current assets: Certificates of deposit — 2,542 — 2,542 Other assets: Certificates of deposit $ — $ 4,054 $ — $ 4,054 December 31, 2022 Level 1 Level 2 Level 3 Total Cash equivalents: Money market funds $ 1,017,191 $ — $ — $ 1,017,191 Commercial paper — 111,975 — 111,975 Corporate bonds — 1,542 — 1,542 U.S. treasury securities 5,990 — — 5,990 Marketable securities: Corporate bonds — 363,075 — 363,075 Commercial paper — 241,192 — 241,192 U.S. treasury securities 242,916 — — 242,916 Certificates of deposit — 158,246 — 158,246 Municipal securities — 27,449 — 27,449 Non-U.S. government and supranational bonds — 22,599 — 22,599 U.S. agency bonds — 31,687 — 31,687 Prepaid expenses and other current assets: Certificates of deposit — 1,067 — 1,067 Other assets: Certificates of deposit $ — $ 5,530 $ — $ 5,530 |
Fair Value of Marketable Securities by Contractual Maturity | The fair value of our marketable securities by contractual maturity is as follows (in thousands): September 30, 2023 Due in one year or less $ 893,173 Due after one to five years 269,087 Total $ 1,162,260 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Option Activity | Stock option activity during the nine months ended September 30, 2023, was as follows (in thousands, except per share amounts): Stock Options Outstanding Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (1) (in years) Outstanding as of December 31, 2022 15,799 $ 13.25 6.1 $ 174,165 Exercised (1,666) 2.80 Outstanding as of September 30, 2023 14,133 $ 14.49 5.9 $ 177,236 Exercisable as of September 30, 2023 7,648 $ 9.83 3.5 $ 131,553 (1) We calculate intrinsic value based on the difference between the exercise price of in-the-money-stock options and the fair value of our common stock as of the respective balance sheet date. |
Restricted Stock Unit Activity | RSU and RSA activity during the nine months ended September 30, 2023, was as follows (in thousands, except per share amounts): Restricted Stock Units and Restricted Stock Awards Outstanding Shares Weighted Average Grant Date Fair Value Outstanding as of December 31, 2022 54,518 $ 25.46 Granted (1) 25,184 25.14 Released (21,213) 24.89 Forfeited (1) (7,090) 23.44 Outstanding as of September 30, 2023 51,399 $ 25.82 (1) Includes the effects of awards modified during the nine months ended September 30, 2023. |
Share-Based Compensation Expense | Share-based compensation expense during the three and nine months ended September 30, 2023 and 2022, was as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Cost of revenue $ 2,989 $ 2,189 $ 8,038 $ 4,800 Research and development 112,879 89,669 315,724 223,995 Sales and marketing 25,857 23,294 71,444 53,564 General and administrative 30,156 21,006 89,427 44,452 Total share-based compensation $ 171,881 $ 136,158 $ 484,633 $ 326,811 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Net Income (Loss) Per Share | We calculated basic and diluted net income (loss) per share as follows (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Class A Class B Class A Class B Class A Class B Class A Class B Basic net income (loss) per share: Numerator: Net income (loss) $ 5,847 $ 886 $ (56,362) $ (8,819) $ (205,602) $ (31,186) $ (98,224) $ (15,314) Denominator: Basic weighted-average shares used in computing net income (loss) per share 581,235 88,026 578,637 90,534 585,973 88,880 573,415 89,401 Basic net income (loss) per share $ 0.01 $ 0.01 $ (0.10) $ (0.10) $ (0.35) $ (0.35) $ (0.17) $ (0.17) Diluted net income (loss) per share: Numerator: Net income (loss) $ 5,847 $ 886 $ (56,362) $ (8,819) $ (205,602) $ (31,186) $ (98,224) $ (15,314) Reallocation of net income as a result of conversion of Class B to Class A common stock 886 — — — — — — — Reallocation of net income to Class B common stock — (25) — — — — — — Diluted net income (loss) $ 6,733 $ 861 $ (56,362) $ (8,819) $ (205,602) $ (31,186) $ (98,224) $ (15,314) Denominator Basic weighted-average shares used in computing net income (loss) per share 581,235 88,026 578,637 90,534 585,973 88,880 573,415 89,401 Conversion of Class B to Class A common stock 88,026 — — — — — — — Weighted average effect of dilutive potential common stock 17,840 — — — — — — — Diluted weighted-average shares used in computing net income (loss) per share 687,101 88,026 578,637 90,534 585,973 88,880 573,415 89,401 Diluted net income (loss) per share $ 0.01 $ 0.01 $ (0.10) $ (0.10) $ (0.35) $ (0.35) $ (0.17) $ (0.17) |
Weighted-Average Anti-Dilutive Shares of Common Stock Excluded from the Calculation of Diluted Net Income (Loss) Per Share | Basic net loss per share is the same as diluted net loss per share for the periods we reported net losses. We excluded the following weighted-average potential shares of common stock from our calculation of diluted net income (loss) per share because these would be anti-dilutive (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Outstanding stock options 8,553 20,004 14,750 17,063 Unvested restricted stock units and restricted stock awards 5,327 57,967 53,967 47,941 Total 13,880 77,971 68,717 65,004 |
Geographical Information (Table
Geographical Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Revenue Disaggregated by Geography | Revenue disaggregated by geography based on our customers’ billing addresses was as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 U.S. and Canada (1) $ 592,366 $ 562,434 $ 1,613,840 $ 1,555,233 Europe (2) 118,469 90,110 334,666 283,758 Rest of World 52,368 32,006 125,303 86,374 Total revenue $ 763,203 $ 684,550 $ 2,073,809 $ 1,925,365 (1) United States revenue was $560.0 million and $534.1 million for the three months ended September 30, 2023 and 2022, respectively, and $1,527.5 million and $1,475.3 million for the nine months ended September 30, 2023 and 2022, respectively. No individual country other than the United States exceeded 10% of our total revenue for any period presented. (2) Europe includes Russia and Turkey. |
Property and Equipment, Net and Operating Lease Right-of-Use Assets by Geography | Property and equipment, net and operating lease right-of-use assets by geography is as follows (in thousands): September 30, December 31, 2023 2022 United States $ 70,265 $ 205,374 Ireland 17,748 4,950 Mexico 13,762 11,627 International (1) 30,523 43,877 Total property and equipment, net and operating lease right-of-use assets $ 132,298 $ 265,828 (1) Other than the United States, Ireland and Mexico, no other country exceeded 10% of our total property and equipment, net and operating lease right-of-use assets for any period presented. |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Charges | Restructuring charges during the nine months ended September 30, 2023 were as follows (in thousands): Nine Months Ended September 30, 2023 Office Space Reductions (1) Severance and Other Personnel Costs Total Cost of revenue $ — $ — $ — Research and development — 4,696 4,696 Sales and marketing — 2,749 2,749 General and administrative 117,315 2,122 119,437 Total $ 117,315 $ 9,567 $ 126,882 (1) Office space reductions are non-cash and include impairment charges and accelerated expense related to operating lease right-of-use assets and leasehold improvements. We estimated the fair value of the impaired assets using a discounted cash flow model based on market participant assumptions. |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Fair Values of Financial Instruments Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 1,162,260 | |
Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 359,680 | $ 363,075 |
Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 245,549 | 241,192 |
Recurring | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 292,659 | 242,916 |
Recurring | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 157,821 | 158,246 |
Prepaid expenses and other current assets | 2,542 | 1,067 |
Other assets | 4,054 | 5,530 |
Recurring | U.S. agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 85,984 | 31,687 |
Recurring | Non-U.S. government and supranational bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 14,552 | 22,599 |
Recurring | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 6,015 | 27,449 |
Level 1 | Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 1 | Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 1 | Recurring | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 292,659 | 242,916 |
Level 1 | Recurring | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Prepaid expenses and other current assets | 0 | 0 |
Other assets | 0 | 0 |
Level 1 | Recurring | U.S. agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 1 | Recurring | Non-U.S. government and supranational bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 1 | Recurring | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 2 | Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 359,680 | 363,075 |
Level 2 | Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 245,549 | 241,192 |
Level 2 | Recurring | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 2 | Recurring | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 157,821 | 158,246 |
Prepaid expenses and other current assets | 2,542 | 1,067 |
Other assets | 4,054 | 5,530 |
Level 2 | Recurring | U.S. agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 85,984 | 31,687 |
Level 2 | Recurring | Non-U.S. government and supranational bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 14,552 | 22,599 |
Level 2 | Recurring | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 6,015 | 27,449 |
Level 3 | Recurring | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 3 | Recurring | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 3 | Recurring | U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 3 | Recurring | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Prepaid expenses and other current assets | 0 | 0 |
Other assets | 0 | 0 |
Level 3 | Recurring | U.S. agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 3 | Recurring | Non-U.S. government and supranational bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level 3 | Recurring | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Money market funds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 869,051 | 1,017,191 |
Money market funds | Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 869,051 | 1,017,191 |
Money market funds | Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Money market funds | Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Commercial paper | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 80,604 | 111,975 |
Commercial paper | Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Commercial paper | Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 80,604 | 111,975 |
Commercial paper | Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | 0 |
Corporate bonds | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,542 | |
Corporate bonds | Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Corporate bonds | Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,542 | |
Corporate bonds | Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
U.S. treasury securities | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,990 | |
U.S. treasury securities | Level 1 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 5,990 | |
U.S. treasury securities | Level 2 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
U.S. treasury securities | Level 3 | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Fair Value of Marketable Securities by Contractual Maturity (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Fair Value Disclosures [Abstract] | |
Due in one year or less | $ 893,173 |
Due after one to five years | 269,087 |
Total | $ 1,162,260 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Apr. 30, 2021 |
Commitments and Contingencies Disclosure [Abstract] | ||
Minimum required purchases | $ 1,908.7 | $ 3,250 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Feb. 02, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 16, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Grant-date fair value of stock options vested | $ 21,300 | $ 2,400 | |||
Aggregate intrinsic value of stock options exercised | 38,900 | $ 88,200 | |||
Unrecognized share-based compensation expense | $ 1,284,200 | $ 1,284,200 | |||
Weighted-average recognition period for unrecognized share-based compensation expense | 2 years 4 months 24 days | ||||
Repurchases of Class A common stock | (74) | $ 500,455 | |||
Stock Repurchase Program , February 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized share repurchase amount | $ 500,000 | ||||
Repurchases of Class A common stock (in shares) | 21,215,663 | ||||
Repurchases of Class A common stock | $ 500,500 | ||||
Excise tax | $ 500 | ||||
Stock Repurchase Program , September 2023 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Authorized share repurchase amount | $ 1,000,000 | ||||
Stock remaining available for repurchases | $ 1,000,000 | $ 1,000,000 | |||
2009 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for issuance (in shares) | 0 | 0 | |||
2019 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of outstanding shares, additional reserve | 5% | ||||
2019 Plan | Class A | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares reserved for issuance (in shares) | 142,711,633 | 142,711,633 | |||
Stock Options | 2009 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period | 10 years | ||||
Stock Options | 2019 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period | 10 years | ||||
RSUs | 2009 Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Expiration period | 7 years |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Shares | ||
Beginning balance (in shares) | shares | 15,799 | |
Exercised (in shares) | shares | (1,666) | |
Ending balance (in shares) | shares | 14,133 | 15,799 |
Exercisable (in shares) | shares | 7,648 | |
Weighted-Average Exercise Price | ||
Beginning balance (in dollars per share) | $ / shares | $ 13.25 | |
Exercised (in dollars per share) | $ / shares | 2.80 | |
Ending balance (in dollars per share) | $ / shares | 14.49 | $ 13.25 |
Exercisable (in dollars per share) | $ / shares | $ 9.83 | |
Weighted-Average Remaining Contractual Term, Outstanding | 5 years 10 months 24 days | 6 years 1 month 6 days |
Weighted-Average Remaining Contractual Term, Exercisable | 3 years 6 months | |
Aggregate Intrinsic Value, Outstanding | $ | $ 177,236 | $ 174,165 |
Aggregate Intrinsic Value, Exercisable | $ | $ 131,553 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Unit Activity (Details) - Restricted Stock Units and Restricted Stock Awards Outstanding shares in Thousands | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Shares | |
Beginning balance (in shares) | shares | 54,518 |
Granted (in shares) | shares | 25,184 |
Released (in shares) | shares | (21,213) |
Forfeited (in shares) | shares | (7,090) |
Ending balance (in shares) | shares | 51,399 |
Weighted Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 25.46 |
Granted (in dollars per share) | $ / shares | 25.14 |
Released (in dollars per share) | $ / shares | 24.89 |
Forfeited (in dollars per share) | $ / shares | 23.44 |
Ending balance (in dollars per share) | $ / shares | $ 25.82 |
Stockholders' Equity - Share-ba
Stockholders' Equity - Share-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share based compensation expense | $ 171,881 | $ 136,158 | $ 484,633 | $ 326,811 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share based compensation expense | 2,989 | 2,189 | 8,038 | 4,800 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share based compensation expense | 112,879 | 89,669 | 315,724 | 223,995 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share based compensation expense | 25,857 | 23,294 | 71,444 | 53,564 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Share based compensation expense | $ 30,156 | $ 21,006 | $ 89,427 | $ 44,452 |
Net Income (Loss) Per Share - C
Net Income (Loss) Per Share - Calculation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Denominator: | ||||
Basic weighted-average shares used in computing net income (loss) per share (in shares) | 669,261 | 669,171 | 674,853 | 662,816 |
Diluted weighted-average shares used in computing net income (loss) per share (in shares) | 687,101 | 669,171 | 674,853 | 662,816 |
Basic net income (loss) per share (in dollars per share) | $ 0.01 | $ (0.10) | $ (0.35) | $ (0.17) |
Diluted net income (loss) per share (in dollars per share) | $ 0.01 | $ (0.10) | $ (0.35) | $ (0.17) |
Class A | ||||
Numerator: | ||||
Net income (loss), basic | $ 5,847 | $ (56,362) | $ (205,602) | $ (98,224) |
Reallocation of net income as a result of conversion of Class B to Class A common stock | 886 | 0 | 0 | 0 |
Reallocation of net income to Class B common stock | 0 | 0 | 0 | 0 |
Diluted net income (loss) | $ 6,733 | $ (56,362) | $ (205,602) | $ (98,224) |
Denominator: | ||||
Basic weighted-average shares used in computing net income (loss) per share (in shares) | 581,235 | 578,637 | 585,973 | 573,415 |
Conversion of Class B to Class A common stock (in shares) | 88,026 | 0 | 0 | 0 |
Weighted average effect of dilutive potential common stock (in shares) | 17,840 | 0 | 0 | 0 |
Diluted weighted-average shares used in computing net income (loss) per share (in shares) | 687,101 | 578,637 | 585,973 | 573,415 |
Basic net income (loss) per share (in dollars per share) | $ 0.01 | $ (0.10) | $ (0.35) | $ (0.17) |
Diluted net income (loss) per share (in dollars per share) | $ 0.01 | $ (0.10) | $ (0.35) | $ (0.17) |
Class B | ||||
Numerator: | ||||
Net income (loss), basic | $ 886 | $ (8,819) | $ (31,186) | $ (15,314) |
Reallocation of net income as a result of conversion of Class B to Class A common stock | 0 | 0 | 0 | 0 |
Reallocation of net income to Class B common stock | (25) | 0 | 0 | 0 |
Diluted net income (loss) | $ 861 | $ (8,819) | $ (31,186) | $ (15,314) |
Denominator: | ||||
Basic weighted-average shares used in computing net income (loss) per share (in shares) | 88,026 | 90,534 | 88,880 | 89,401 |
Conversion of Class B to Class A common stock (in shares) | 0 | 0 | 0 | 0 |
Weighted average effect of dilutive potential common stock (in shares) | 0 | 0 | 0 | 0 |
Diluted weighted-average shares used in computing net income (loss) per share (in shares) | 88,026 | 90,534 | 88,880 | 89,401 |
Basic net income (loss) per share (in dollars per share) | $ 0.01 | $ (0.10) | $ (0.35) | $ (0.17) |
Diluted net income (loss) per share (in dollars per share) | $ 0.01 | $ (0.10) | $ (0.35) | $ (0.17) |
Net Income (Loss) Per Share- We
Net Income (Loss) Per Share- Weighted-Average Anti-Dilutive Shares of Common Stock Excluded from the Calculation of Diluted Net Income (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average anti-dilutive shares of common stock (in shares) | 13,880 | 77,971 | 68,717 | 65,004 |
Outstanding stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average anti-dilutive shares of common stock (in shares) | 8,553 | 20,004 | 14,750 | 17,063 |
Unvested restricted stock units and restricted stock awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Weighted-average anti-dilutive shares of common stock (in shares) | 5,327 | 57,967 | 53,967 | 47,941 |
Geographical Information (Detai
Geographical Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | $ 763,203 | $ 684,550 | $ 2,073,809 | $ 1,925,365 | |
Total property and equipment, net and operating lease right-of-use assets | 132,298 | 132,298 | $ 265,828 | ||
U.S. and Canada | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 592,366 | 562,434 | 1,613,840 | 1,555,233 | |
Europe | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 118,469 | 90,110 | 334,666 | 283,758 | |
Rest of World | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 52,368 | 32,006 | 125,303 | 86,374 | |
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total revenue | 560,000 | $ 534,100 | 1,527,500 | $ 1,475,300 | |
Total property and equipment, net and operating lease right-of-use assets | 70,265 | 70,265 | 205,374 | ||
Ireland | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total property and equipment, net and operating lease right-of-use assets | 17,748 | 17,748 | 4,950 | ||
Mexico | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total property and equipment, net and operating lease right-of-use assets | 13,762 | 13,762 | 11,627 | ||
International | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Total property and equipment, net and operating lease right-of-use assets | $ 30,523 | $ 30,523 | $ 43,877 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) | 1 Months Ended |
Mar. 31, 2023 | |
Plan | Employee Severance | |
Restructuring Cost and Reserve [Line Items] | |
Workforce reduction | 4% |
Restructuring - Summary of Rest
Restructuring - Summary of Restructuring Charges (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Office Space Reductions | $ 117,315 |
Severance and Other Personnel Costs | 9,567 |
Total | 126,882 |
Cost of revenue | |
Restructuring Cost and Reserve [Line Items] | |
Office Space Reductions | 0 |
Severance and Other Personnel Costs | 0 |
Total | 0 |
Research and development | |
Restructuring Cost and Reserve [Line Items] | |
Office Space Reductions | 0 |
Severance and Other Personnel Costs | 4,696 |
Total | 4,696 |
Sales and marketing | |
Restructuring Cost and Reserve [Line Items] | |
Office Space Reductions | 0 |
Severance and Other Personnel Costs | 2,749 |
Total | 2,749 |
General and administrative | |
Restructuring Cost and Reserve [Line Items] | |
Office Space Reductions | 117,315 |
Severance and Other Personnel Costs | 2,122 |
Total | $ 119,437 |
Subsequent Events (Details)
Subsequent Events (Details) - Revolving Credit Facility - Line of Credit - USD ($) | 1 Months Ended | ||
Oct. 30, 2023 | Sep. 30, 2023 | Oct. 31, 2022 | |
Subsequent Event [Line Items] | |||
Maximum borrowing capacity | $ 400,000,000 | ||
Accordion feature maximum borrowing capacity | $ 405,000,000 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Term of borrowing agreement | 5 years | ||
Maximum borrowing capacity | $ 500,000,000 | ||
Accordion feature maximum borrowing capacity | 305,000,000 | ||
Line of credit | $ 0 |