Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-37496 | |
Entity Registrant Name | RAPID7, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 35-2423994 | |
Entity Address, Address Line One | 120 Causeway Street | |
Entity Address, City or Town | Boston, | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02114 | |
City Area Code | 617 | |
Local Phone Number | 247-1717 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | RPD | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 55,129,962 | |
Entity Central Index Key | 0001560327 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 503,804 | $ 173,617 |
Short-term investments | 101,996 | 138,839 |
Accounts receivable, net of allowance for doubtful accounts of $2,869 and $3,251 at March 31, 2021 and December 31, 2020, respectively | 76,714 | 111,599 |
Deferred contract acquisition and fulfillment costs, current portion | 22,598 | 21,536 |
Prepaid expenses and other current assets | 28,943 | 27,844 |
Total current assets | 734,055 | 473,435 |
Long-term investments | 11,133 | 10,124 |
Property and equipment, net | 51,141 | 53,114 |
Operating lease right-of-use assets | 64,965 | 67,178 |
Deferred contract acquisition and fulfillment costs, non-current portion | 43,997 | 43,103 |
Goodwill | 253,324 | 213,601 |
Intangible assets, net | 52,708 | 44,296 |
Other assets | 11,370 | 8,271 |
Total assets | 1,222,693 | 913,122 |
Current liabilities: | ||
Accounts payable | 4,296 | 3,860 |
Accrued expenses | 47,806 | 61,677 |
Operating lease liabilities, current portion | 9,261 | 9,612 |
Deferred revenue, current portion | 282,245 | 278,585 |
Other current liabilities | 127 | 0 |
Total current liabilities | 343,735 | 353,734 |
Convertible senior notes, net | 855,709 | 378,586 |
Operating lease liabilities, non-current portion | 73,466 | 75,737 |
Deferred revenue, non-current portion | 28,833 | 31,365 |
Other long-term liabilities | 2,175 | 2,164 |
Total liabilities | 1,303,918 | 841,586 |
Stockholders’ equity (deficit): | ||
Preferred stock, $0.01 par value per share; 10,000,000 shares authorized at March 31, 2021 and December 31, 2020; 0 shares issued at March 31, 2021 and December 31, 2020 | 0 | 0 |
Common stock, $0.01 par value per share; 100,000,000 shares authorized at March 31, 2021 and December 31, 2020; 55,578,120 and 52,712,084 shares issued at March 31, 2021 and December 31, 2020, respectively; 55,091,312 and 52,225,276 shares outstanding at March 31, 2021 and December 31, 2020, respectively | 551 | 522 |
Treasury stock, at cost, 486,808 shares at March 31, 2021 and December 31, 2020 | (4,764) | (4,764) |
Additional paid-in-capital | 542,415 | 692,603 |
Accumulated other comprehensive loss | 112 | 454 |
Accumulated deficit | (619,539) | (617,279) |
Total stockholders’ equity (deficit) | (81,225) | 71,536 |
Total liabilities and stockholders’ equity (deficit) | $ 1,222,693 | $ 913,122 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Net of allowance for doubtful accounts | $ 2,869 | $ 3,251 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 55,578,120 | 52,712,084 |
Common stock, shares outstanding (in shares) | 55,091,312 | 52,225,276 |
Treasury stock, shares (in shares) | 486,808 | 486,808 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenue: | ||
Total revenue | $ 117,451 | $ 94,340 |
Cost of revenue: | ||
Total cost of revenue | 36,289 | 27,714 |
Total gross profit | 81,162 | 66,626 |
Operating expenses: | ||
Research and development | 33,080 | 24,202 |
Sales and marketing | 54,978 | 48,145 |
General and administrative | 16,220 | 14,099 |
Total operating expenses | 104,278 | 86,446 |
Loss from operations | (23,116) | (19,820) |
Other income (expense), net: | ||
Interest income | 96 | 1,048 |
Interest expense | (5,394) | (3,462) |
Other income (expense), net | (1,068) | (447) |
Loss before income taxes | (29,482) | (22,681) |
Provision for income taxes | 363 | 243 |
Net loss | $ (29,845) | $ (22,924) |
Net loss per share, basic and diluted (in dollars per share) | $ (0.56) | $ (0.46) |
Weighted-average common shares outstanding, basic and diluted (in shares) | 52,904,881 | 50,127,310 |
Products | ||
Revenue: | ||
Total revenue | $ 109,285 | $ 87,549 |
Cost of revenue: | ||
Total cost of revenue | 29,650 | 21,256 |
Professional services | ||
Revenue: | ||
Total revenue | 8,166 | 6,791 |
Cost of revenue: | ||
Total cost of revenue | $ 6,639 | $ 6,458 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (29,845) | $ (22,924) |
Other comprehensive income (loss): | ||
Change in fair value of investments | (9) | (235) |
Adjustments for net gains realized and included in net loss | 0 | (56) |
Total change in unrealized losses on investments | (9) | (291) |
Change in unrealized losses on cash flow hedges | (129) | 0 |
Adjustments for net gains realized and included in net loss | (204) | 0 |
Total change in unrealized losses on cash flow hedges | (333) | 0 |
Total other comprehensive loss | (342) | (291) |
Comprehensive loss | $ (30,187) | $ (23,215) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common stock | Treasury stock | Additional paid-in-capital | Additional paid-in-capitalCumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive gain (loss) | Accumulated deficit | Accumulated deficitCumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Dec. 31, 2019 | 49,911 | 487 | |||||||
Beginning balance at Dec. 31, 2019 | $ 83,168 | $ 499 | $ (4,764) | $ 605,650 | $ 213 | $ (518,430) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock-based compensation expense | 12,965 | 12,965 | |||||||
Issuance of common stock under employee stock purchase plan (in shares) | 102 | ||||||||
Issuance of common stock under employee stock purchase plan | 3,346 | $ 1 | 3,345 | ||||||
Vesting of restricted stock units (in shares) | 308 | ||||||||
Vesting of restricted stock units | 0 | $ 3 | (3) | ||||||
Shares withheld for employee taxes (in shares) | (27) | ||||||||
Shares withheld for employee taxes | (1,533) | (1,533) | |||||||
Issuance of common stock upon exercise of stock options (in shares) | 125 | ||||||||
Issuance of common stock upon exercise of stock options | 1,569 | $ 1 | 1,568 | ||||||
Other comprehensive loss | (291) | (291) | |||||||
Net loss | (22,924) | (22,924) | |||||||
Ending balance (in shares) at Mar. 31, 2020 | 50,419 | 487 | |||||||
Ending balance at Mar. 31, 2020 | $ 76,300 | $ 504 | $ (4,764) | 621,992 | (78) | (541,354) | |||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2020-06 | ||||||||
Beginning balance (in shares) at Dec. 31, 2020 | 52,225 | 487 | |||||||
Beginning balance at Dec. 31, 2020 | $ 71,536 | $ (71,441) | $ 522 | $ (4,764) | 692,603 | $ (99,026) | 454 | (617,279) | $ 27,585 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Stock-based compensation expense | 22,284 | 22,284 | |||||||
Issuance of common stock under employee stock purchase plan (in shares) | 148 | ||||||||
Issuance of common stock under employee stock purchase plan | 4,467 | $ 1 | 4,466 | ||||||
Vesting of restricted stock units (in shares) | 374 | ||||||||
Vesting of restricted stock units | 0 | $ 4 | (4) | ||||||
Shares withheld for employee taxes (in shares) | (38) | ||||||||
Shares withheld for employee taxes | (3,324) | (3,324) | |||||||
Issuance of common stock upon exercise of stock options (in shares) | 170 | ||||||||
Issuance of common stock upon exercise of stock options | 1,418 | $ 2 | 1,416 | ||||||
Purchase of capped calls related to convertible senior notes | (76,020) | (76,020) | |||||||
Issuance of common stock in connection with repurchase of convertible senior notes (in shares) | 2,177 | ||||||||
Issuance of common stock in connection with repurchase of convertible senior notes | (2,698) | $ 22 | (2,720) | ||||||
Issuance of common stock in connection with inducement of convertible senior notes (in shares) | 35 | ||||||||
Issuance of common stock in connection with inducement of convertible senior notes | 2,740 | 2,740 | |||||||
Other comprehensive loss | (342) | (342) | |||||||
Net loss | (29,845) | (29,845) | |||||||
Ending balance (in shares) at Mar. 31, 2021 | 55,091 | 487 | |||||||
Ending balance at Mar. 31, 2021 | $ (81,225) | $ 551 | $ (4,764) | $ 542,415 | $ 112 | $ (619,539) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net loss | $ (29,845) | $ (22,924) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 6,740 | 4,843 |
Amortization of debt discount and issuance costs | 658 | 2,743 |
Stock-based compensation expense | 20,862 | 13,347 |
Induced conversion expense | 2,740 | 0 |
Other | 1,404 | 836 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 34,414 | 22,608 |
Deferred contract acquisition and fulfillment costs | (1,956) | (516) |
Prepaid expenses and other assets | (136) | 135 |
Accounts payable | 550 | 4,010 |
Accrued expenses | (15,429) | (14,563) |
Deferred revenue | 987 | (16,671) |
Other liabilities | (394) | (1,063) |
Net cash provided by (used in) operating activities | 20,595 | (7,215) |
Cash flows from investing activities: | ||
Business acquisition, net of cash acquired | (49,720) | 0 |
Purchases of property and equipment | (972) | (2,756) |
Capitalization of internal-use software costs | (1,758) | (1,474) |
Purchases of investments | (6,394) | (24,272) |
Sales/maturities of investments | 41,900 | 113,924 |
Other | (1,500) | 0 |
Net cash (used in) provided by investing activities | (18,444) | 85,422 |
Cash flows from financing activities: | ||
Proceeds from issuance of convertible senior notes, net of issuance costs paid of $12,900 | 587,100 | 0 |
Purchase of capped calls related to convertible senior notes | (76,020) | 0 |
Payments for repurchase of convertible senior notes | (182,647) | 0 |
Payments related to business acquisition | (2,431) | 0 |
Taxes paid related to net share settlement of equity awards | (3,324) | (1,533) |
Proceeds from employee stock purchase plan | 4,467 | 3,346 |
Proceeds from stock option exercises | 1,427 | 1,561 |
Net cash provided by financing activities | 328,572 | 3,374 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (500) | (560) |
Net increase in cash, cash equivalents and restricted cash | 330,223 | 81,021 |
Cash, cash equivalents and restricted cash, beginning of period | 173,617 | 123,413 |
Cash, cash equivalents and restricted cash, end of period | 503,840 | 204,434 |
Supplemental cash flow information: | ||
Cash paid for interest on convertible senior notes | 1,438 | 1,438 |
Cash paid for income taxes, net of refunds | 64 | 33 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Total cash, cash equivalents and restricted cash | $ 503,840 | $ 204,434 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Convertible Debt | |
Payments of debt issuance costs | $ 12,900 |
Description of Business, Basis
Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies | Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies Description of Business Rapid7, Inc. and subsidiaries (“we,” “us” or “our”) is advancing security with visibility, analytics, and automation delivered through our Insight Platform. Our solutions simplify the complex, allowing security teams to work more effectively with IT and development to reduce vulnerabilities, monitor for malicious behavior, investigate and shut down attacks, and automate routine tasks. Basis of Presentation and Consolidation The accompanying unaudited consolidated financial statements have been prepared by us in accordance with accounting principles generally accepted in the United States of America (GAAP), as well as pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), regarding interim financial reporting. Accordingly, certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 26, 2021. The consolidated financial statements include our results of operations and those of our wholly-owned subsidiaries and reflect all adjustments (consisting solely of normal, recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim periods presented. All intercompany transactions and balances have been eliminated in consolidation. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The management estimates include, but are not limited to the determination of the estimated economic life of perpetual licenses for revenue recognition, the determination of standalone selling prices in revenue transactions with multiple performance obligations, the estimated period of benefit for deferred contract acquisition and fulfillment costs, the useful lives and recoverability of long-lived assets, the valuation of allowance for doubtful accounts, the valuation of stock-based compensation, the fair value of assets acquired and liabilities assumed in business combinations, the incremental borrowing rate for operating leases and the valuation for deferred tax assets. We base our estimates on historical experience and on various other assumptions that we believe are reasonable. Actual results could differ from those estimates. The COVID-19 pandemic has resulted in a sustained global slowdown of economic activity that has decreased demand for a broad variety of goods and services, including from our customers. While we have not experienced significant disruptions from the COVID-19 pandemic during the first quarter of fiscal 2021, we are unable to accurately predict the extent to which the COVID-19 pandemic may impact our business, results of operations and financial condition going forward. Estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require the exercise of judgment. As of the date of issuance of these financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, assumptions and judgments or revise the carrying value of our assets or liabilities. These estimates may change as new events occur and additional information is obtained and will be recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to our financial statements. Significant Accounting Policies Our significant accounting policies are described in Note 2, Summary of Significant Accounting Policies , to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2020. There have been no changes to the significant accounting policies during the three-month period ended March 31, 2021. Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplified the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. We early adopted this standard on January 1, 2021 under the modified retrospective basis. Refer to Note 10, Debt , for further details of the impact the adoption of this standard had on our consolidated balance sheet. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This standard is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying certain aspects of the current guidance to promote consistency among reporting entities. We adopted this standard on January 1, 2021 and there was no impact to our consolidated financial statements as a result of the adoption. Accounting Pronouncements Not Yet Effective In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions to GAAP guidance on contract modifications to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) to alternative reference rates. We may elect to apply the amendments prospectively through December 31, 2022. The impact to our consolidated financial statements from the adoption of this standard is expected to be immaterial. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers We generate revenue primarily from: (1) subscriptions from the sale of cloud-based subscriptions, managed services, term software licenses, content subscriptions and maintenance and support associated with our software licenses, (2) perpetual software licenses, and (3) professional services from the sale of our deployment and training services related to our solutions, incident response services, penetration testing and security advisory services. The following table summarizes revenue from contracts with customers for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 (in thousands) Subscriptions $ 107,167 $ 84,548 Perpetual software licenses 2,114 2,770 Professional services 8,166 6,791 Other 4 231 Total revenue $ 117,451 $ 94,340 Subscriptions Subscriptions consists of revenue from our cloud-based subscription, managed services offerings, term software licenses and content subscriptions maintenance and support associated with our software licenses. • We generate cloud-based subscription revenue primarily from sales of subscriptions to access our cloud platform, together with related support services to our customers. These arrangements do not provide the customer with the right to take possession of our software operating on our cloud platform at any time. Instead, customers are granted continuous access to our cloud platform over the contractual period. Revenue is recognized over time on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our cloud-based subscription contracts generally have annual or multi-year contractual terms which are billed in advance of the annual subscription period and are non-cancellable. • Managed services offerings consist of fees generated when we operate our software and provide our capabilities on behalf of our customers. Revenue is recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our managed services offerings generally have annual or multi-year contractual terms which are billed in advance of the annual subscription period and are non-cancellable. • For our term software licenses where the utility to the customer is dependent on the continued delivery of content subscriptions, we recognize the license revenue over the contractual term of the arrangement as a material right does not exist. For our term software licenses which are not dependent on the continued delivery of content subscriptions, the license is considered distinct from the maintenance and support, and we therefore recognize revenue attributable to the license at the time of delivery. • Content subscriptions and our maintenance and support services are sold with our perpetual and term software licenses. Revenue related to our content subscriptions associated with our software licenses is recognized ratably over the contractual period. Maintenance and support services are distinct from the perpetual and term software license and revenue attributable to maintenance and support services is recognized ratably over the contractual period. Perpetual Software Licenses For our perpetual software licenses where the utility to the customer is dependent on the continued delivery of content subscriptions, the content subscription renewal options result in a material right with respect to the perpetual software license. As a result, the revenue attributable to the perpetual software license is recognized ratably over the customer’s estimated economic life of five years, which represents a longer period of time in comparison to the initial contractual period of maintenance and support. The estimated economic life of five years represents the period which the customer is expected to benefit from the material right. We estimated this period of benefit by taking into consideration several factors, including the terms and conditions of our customer contracts and renewals and the expected useful life of our technology. For our perpetual software licenses which are not dependent on the continued delivery of content subscriptions, the license is considered distinct from the maintenance and support, and we therefore recognize revenue attributable to the license at the time of delivery. Professional Services All of our professional services are considered distinct performance obligations when sold stand alone or with other products. These contracts generally have terms of one year or less. For the majority of these contracts, revenue is recognized over time based upon the proportion of work performed to date. Other Other revenue primarily includes revenue from delivery of appliances and other miscellaneous revenue. Contracts with Multiple Performance Obligations The majority of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price (SSP) basis. We determine SSP of our products and services based on our overall pricing objectives using all information reasonably available to us, taking into consideration market conditions and other factors, including the geographic locations of our customers, negotiated discounts from price lists and selling method (i.e., partner or direct). When available, we use directly observable stand-alone transactions to determine SSP. When not regularly sold on a stand-alone basis, we estimate SSP for our products and services utilizing historical sales data, including discounts from list price. The historical data is aggregated and analyzed by geographic location and selling method to establish a median or average price. Once SSP is established it is applied consistently to all transactions including that product or service utilizing a portfolio approach. Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period consistent with the above methodology. For the three months ended March 31, 2021 and 2020, we recognized revenue of $101.9 million and $83.4 million, respectively, that was included in the corresponding contract liability balance at the beginning of the periods presented. Deferred revenue that will be realized during the succeeding 12-month period is recorded as current, and the remaining deferred revenue is recorded as non-current. We receive payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Unbilled receivables include amounts related to our contractual right to consideration for both completed and partially completed performance obligations that have not been invoiced. If the right to consideration is based on satisfaction of another performance obligation in the contract other than the passage of time, we record a contract asset. As of March 31, 2021 and December 31, 2020, unbilled receivables of $1.1 million and $1.2 million, respectively, are included in prepaid expenses and other current assets in our consolidated balance sheet. As of March 31, 2021 and December 31, 2020, we had no contract assets recorded on our consolidated balance sheet. Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied as of March 31, 2021. The estimated revenues do not include unexercised contract renewals. Next Twelve Months Thereafter (in thousands) Subscriptions $ 290,552 $ 79,335 Perpetual software licenses 6,880 2,917 Professional services 12,488 1,084 The following table summarizes the activity of the deferred contract acquisition and fulfillment costs for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 (in thousands) Beginning balance $ 64,639 $ 51,260 Capitalization of contract acquisition and fulfillment costs 7,865 5,084 Amortization of deferred contract acquisition and fulfillment costs (5,909) (4,569) Ending balance $ 66,595 $ 51,775 |
Business Combination
Business Combination | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combination | Business Combination Alcide.IO Ltd. On January 28, 2021, we acquired Alcide.IO Ltd. (Alcide), a leading provider of Kubernetes security, for a purchase consideration of $50.5 million, which was funded in cash. The following table summarizes the preliminary allocation of purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands): Purchase price $ 50,538 Recognized amount of identifiable assets acquired and liabilities assumed: Cash and cash equivalents 818 Other current assets 163 Deferred tax asset, long-term 2,714 Other assets 208 Accounts payable and other current liabilities (3,488) Intangible assets 10,400 Total identifiable net assets assumed 10,815 Goodwill 39,723 Total purchase price allocation $ 50,538 We identified developed technology as the sole acquired intangible asset. The estimated fair value of the developed technology intangible asset was $10.4 million which was based on a valuation using the income approach. The estimated useful life of the developed technology is 6 years. The excess of the purchase price over the tangible assets acquired, identifiable intangible assets acquired and assumed liabilities was recorded as goodwill. We believe that the amount of goodwill reflects the expected synergistic benefits of being able to leverage the integration of the technology acquired with our existing product offerings and being able to successfully market and sell these new features to our customer base. The goodwill was allocated to our one reporting unit. The acquired goodwill and intangible assets were not deductible for tax purposes. Following the acquisition, certain retained employees of Alcide received an aggregate of 96,127 restricted stock units (RSUs), which will vest over a maximum of three years. The vesting of the RSUs are subject to the employee's continued service with us. Accordingly, stock-based compensation expense associated with the RSUs will be expensed as incurred in our post-acquisition financial statements. In the three months ended March 31, 2021, we recorded $0.9 million of acquisition-related costs related to the acquisition of Alcide, of which $0.8 million was recorded to general and administrative expense and $0.1 million was recorded to sales and marketing expense. Proforma results of operations have not been included, as the acquisition of Alcide was not material to our results of operations for any periods presented. Divvy Cloud Corporation On May 1, 2020, we acquired Divvy Cloud Corporation (DivvyCloud), a Cloud Security Posture Management (CSPM) company, for a purchase price with an aggregate fair value of $137.8 million. The assets acquired and liabilities assumed were recorded at their estimated fair values as of the acquisition date. The excess of the purchase price over the assets acquired and liabilities assumed was recorded as goodwill. The fair value of net assets acquired, goodwill and intangible assets were $0.8 million, $115.7 million and $21.2 million, respectively. The goodwill was allocated to our one reporting unit. The acquired goodwill and intangible asset were not deductible for tax purposes. Pro Forma Financial Information The unaudited pro forma financial information in the table below summarizes the combined results of our operations and DivvyCloud, on a pro forma basis, as though we had acquired DivvyCloud on January 1, 2019. The unaudited pro forma financial information also includes the effects of business combination accounting resulting from the acquisition, including an adjustment to revenue for the deferred revenue fair value adjustment, amortization expense from acquired intangibles assets, reversal of acquisition-related expenses and the stock-compensation expense recorded to retain certain employees. Three Months Ended March 31, 2020 (in thousands) Revenue $ 97,221 Net loss $ (27,566) |
Investments
Investments | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Our investments, which are all classified as available-for-sale, consisted of the following: As of March 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. government agencies 55,388 5 — 55,393 Commercial paper 27,676 — — 27,676 Corporate bonds 27,648 16 (7) 27,657 Asset-backed securities 2,403 — — 2,403 Total $ 113,115 $ 21 $ (7) $ 113,129 As of December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. government agencies $ 83,596 $ 3 $ (12) $ 83,587 Corporate bonds 24,162 31 (1) 24,192 Commercial paper 34,766 — — 34,766 Agency bonds 3,998 1 — 3,999 Asset-backed securities 2,419 — — 2,419 Total $ 148,941 $ 35 $ (13) $ 148,963 As of March 31, 2021, our available-for-sale investments had maturities ranging from 1 to 13 months. As of December 31, 2020, our available-for-sale investments had maturities ranging from 1 to 19 months. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We measure certain financial assets and liabilities at fair value. Fair value is determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level hierarchy, as follows: Level 1 : Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 : Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 : Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the asset or liability. We consider an active market to be one in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis, and we consider an inactive market to be one in which there are infrequent or few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers. The following table presents our financial assets and liabilities measured and recorded at fair value on a recurring basis using the above input categories: As of March 31, 2021 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds 464,176 $ — $ — $ 464,176 U.S. government agencies 55,393 — — 55,393 Commercial paper — 27,676 — 27,676 Corporate bonds — 27,657 — 27,657 Asset-backed securities — 2,403 — 2,403 Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets) — 226 — 226 Total $ 519,569 $ 57,962 $ — $ 577,531 Liabilities: Foreign currency forward contracts designated as cash flow hedges (other current liabilities) $ — $ 128 $ — $ 128 Total $ — $ 128 $ — $ 128 As of December 31, 2020 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 152,570 $ — $ — $ 152,570 U.S. government agencies 83,587 — — 83,587 Commercial paper — 34,766 — 34,766 Corporate bonds — 24,192 — 24,192 Agency bonds — 3,999 — 3,999 Asset-backed securities — 2,419 — 2,419 Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets) — 432 — 432 Total $ 236,157 $ 65,808 $ — $ 301,965 As of March 31, 2021, the fair value of our 1.25% , 2.25% and 0.25% convertible senior notes due 2023, 2025 and 2027, as further described in Note 10, Debt |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and consist of the following: As of March 31, 2021 As of December 31, 2020 (in thousands) Computer equipment and software $ 14,368 $ 13,438 Furniture and fixtures 9,655 9,655 Leasehold improvements 50,427 50,336 Total 74,450 73,429 Less accumulated depreciation (23,309) (20,315) Property and equipment, net $ 51,141 $ 53,114 Depreciation expense was $3.0 million and $2.7 million for the three months ended March 31, 2021 and 2020, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill was $253.3 million and $213.6 million as of March 31, 2021 and December 31, 2020, respectively. The following table displays the changes in the gross carrying amount of goodwill: Amount (in thousands) Balance at December 31, 2020 $ 213,601 Alcide acquisition 39,723 Balance at March 31, 2021 $ 253,324 The following table presents details of our intangible assets, which include acquired identifiable intangible assets and capitalized internal-use software costs: As of March 31, 2021 As of December 31, 2020 Weighted- Gross Carrying Accumulated Net Book Value Gross Carrying Accumulated Net Book Value (in thousands) Intangible assets subject to amortization: Developed technology 5.7 $ 64,855 $ (27,521) $ 37,334 $ 54,455 $ (24,780) $ 29,675 Customer relationships 6.3 2,700 (1,061) 1,639 2,700 (958) 1,742 Trade names 5.4 1,419 (684) 735 1,419 (639) 780 Total acquired intangible assets 68,974 (29,266) 39,708 58,574 (26,377) 32,197 Internal-use software 3.0 17,760 (4,760) 13,000 16,002 (3,903) 12,099 Total intangible assets $ 86,734 $ (34,026) $ 52,708 $ 74,576 $ (30,280) $ 44,296 Amortization expense was $3.7 million and $2.1 million for the three months ended March 31, 2021 and 2020, respectively. Estimated future amortization expense of the acquired identifiable intangible assets and completed capitalized internal-use software costs as of March 31, 2021 was as follows (in thousands): 2021 (for the remaining nine months) $ 10,929 2022 11,934 2023 9,048 2024 5,605 2025 5,177 2026 and thereafter 2,987 Total $ 45,680 |
Deferred Contract Acquisition a
Deferred Contract Acquisition and Fulfillment Costs | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Deferred Contract Acquisition and Fulfillment Costs | Revenue from Contracts with Customers We generate revenue primarily from: (1) subscriptions from the sale of cloud-based subscriptions, managed services, term software licenses, content subscriptions and maintenance and support associated with our software licenses, (2) perpetual software licenses, and (3) professional services from the sale of our deployment and training services related to our solutions, incident response services, penetration testing and security advisory services. The following table summarizes revenue from contracts with customers for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 (in thousands) Subscriptions $ 107,167 $ 84,548 Perpetual software licenses 2,114 2,770 Professional services 8,166 6,791 Other 4 231 Total revenue $ 117,451 $ 94,340 Subscriptions Subscriptions consists of revenue from our cloud-based subscription, managed services offerings, term software licenses and content subscriptions maintenance and support associated with our software licenses. • We generate cloud-based subscription revenue primarily from sales of subscriptions to access our cloud platform, together with related support services to our customers. These arrangements do not provide the customer with the right to take possession of our software operating on our cloud platform at any time. Instead, customers are granted continuous access to our cloud platform over the contractual period. Revenue is recognized over time on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our cloud-based subscription contracts generally have annual or multi-year contractual terms which are billed in advance of the annual subscription period and are non-cancellable. • Managed services offerings consist of fees generated when we operate our software and provide our capabilities on behalf of our customers. Revenue is recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our managed services offerings generally have annual or multi-year contractual terms which are billed in advance of the annual subscription period and are non-cancellable. • For our term software licenses where the utility to the customer is dependent on the continued delivery of content subscriptions, we recognize the license revenue over the contractual term of the arrangement as a material right does not exist. For our term software licenses which are not dependent on the continued delivery of content subscriptions, the license is considered distinct from the maintenance and support, and we therefore recognize revenue attributable to the license at the time of delivery. • Content subscriptions and our maintenance and support services are sold with our perpetual and term software licenses. Revenue related to our content subscriptions associated with our software licenses is recognized ratably over the contractual period. Maintenance and support services are distinct from the perpetual and term software license and revenue attributable to maintenance and support services is recognized ratably over the contractual period. Perpetual Software Licenses For our perpetual software licenses where the utility to the customer is dependent on the continued delivery of content subscriptions, the content subscription renewal options result in a material right with respect to the perpetual software license. As a result, the revenue attributable to the perpetual software license is recognized ratably over the customer’s estimated economic life of five years, which represents a longer period of time in comparison to the initial contractual period of maintenance and support. The estimated economic life of five years represents the period which the customer is expected to benefit from the material right. We estimated this period of benefit by taking into consideration several factors, including the terms and conditions of our customer contracts and renewals and the expected useful life of our technology. For our perpetual software licenses which are not dependent on the continued delivery of content subscriptions, the license is considered distinct from the maintenance and support, and we therefore recognize revenue attributable to the license at the time of delivery. Professional Services All of our professional services are considered distinct performance obligations when sold stand alone or with other products. These contracts generally have terms of one year or less. For the majority of these contracts, revenue is recognized over time based upon the proportion of work performed to date. Other Other revenue primarily includes revenue from delivery of appliances and other miscellaneous revenue. Contracts with Multiple Performance Obligations The majority of our contracts with customers contain multiple performance obligations. For these contracts, we account for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price (SSP) basis. We determine SSP of our products and services based on our overall pricing objectives using all information reasonably available to us, taking into consideration market conditions and other factors, including the geographic locations of our customers, negotiated discounts from price lists and selling method (i.e., partner or direct). When available, we use directly observable stand-alone transactions to determine SSP. When not regularly sold on a stand-alone basis, we estimate SSP for our products and services utilizing historical sales data, including discounts from list price. The historical data is aggregated and analyzed by geographic location and selling method to establish a median or average price. Once SSP is established it is applied consistently to all transactions including that product or service utilizing a portfolio approach. Contract Balances Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract. Such amounts are recognized as revenue over the contractual period consistent with the above methodology. For the three months ended March 31, 2021 and 2020, we recognized revenue of $101.9 million and $83.4 million, respectively, that was included in the corresponding contract liability balance at the beginning of the periods presented. Deferred revenue that will be realized during the succeeding 12-month period is recorded as current, and the remaining deferred revenue is recorded as non-current. We receive payments from customers based upon contractual billing schedules. Accounts receivable are recorded when the right to consideration becomes unconditional. Unbilled receivables include amounts related to our contractual right to consideration for both completed and partially completed performance obligations that have not been invoiced. If the right to consideration is based on satisfaction of another performance obligation in the contract other than the passage of time, we record a contract asset. As of March 31, 2021 and December 31, 2020, unbilled receivables of $1.1 million and $1.2 million, respectively, are included in prepaid expenses and other current assets in our consolidated balance sheet. As of March 31, 2021 and December 31, 2020, we had no contract assets recorded on our consolidated balance sheet. Transaction price allocated to the remaining performance obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied as of March 31, 2021. The estimated revenues do not include unexercised contract renewals. Next Twelve Months Thereafter (in thousands) Subscriptions $ 290,552 $ 79,335 Perpetual software licenses 6,880 2,917 Professional services 12,488 1,084 The following table summarizes the activity of the deferred contract acquisition and fulfillment costs for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 (in thousands) Beginning balance $ 64,639 $ 51,260 Capitalization of contract acquisition and fulfillment costs 7,865 5,084 Amortization of deferred contract acquisition and fulfillment costs (5,909) (4,569) Ending balance $ 66,595 $ 51,775 |
Derivative and Hedging Activiti
Derivative and Hedging Activities | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities To mitigate our exposure to foreign currency fluctuations resulting from certain expenses denominated in certain foreign currencies, we enter into forward contracts that are designated as cash flow hedging instruments. These forward contracts have contractual maturities of thirteen months or less, and as of March 31, 2021 and December 31, 2020, outstanding forward contracts had a total notional value of $19.9 million and $12.5 million, respectively. The notional value represents the gross amount of foreign currency that will be bought or sold upon maturity of the forward contract. During the three months ended March 31, 2021, all cash flow hedges were considered effective. Refer to Note 5, Fair Value Measurements , for the fair values of our outstanding derivative instruments. For the three months ended March 31, 2021, we reclassified realized gains of $0.2 million from accumulated other comprehensive income (loss) on our consolidated balance sheet to the financial statement line item associated with the underlying hedged transaction on our consolidated statement of operations. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Convertible Senior Notes In August 2018, we issued $230.0 million aggregate principal amount of convertible senior notes due August 1, 2023 (the 2023 Notes), in May 2020, we issued $230.0 million aggregate principal amount of convertible senior notes due May 1, 2025 (the 2025 Notes) and in March 2021, we issued $600.0 million aggregate principal amount of convertible senior notes due March 15, 2027 (the 2027 Notes) (collectively, the Notes). Further details of the Notes are as follows: Issuance Maturity Date Interest Rate First Interest Payment Date Effective Interest Rate Semi-Annual Interest Payment Dates Initial Conversion Rate per $1,000 Principal Initial Conversion Price Number of Shares (in millions) 2023 Notes August 1, 2023 1.25 % February 1, 2019 1.86 % February 1 and August 1 24.0460 $ 41.59 1.1 2025 Notes May 1, 2025 2.25 % November 1, 2020 2.88 % May 1 and November 1 16.3875 $ 61.02 3.8 2027 Notes March 15, 2027 0.25 % September 15, 2021 0.67 % March 15 and September 15 9.6734 $ 103.38 5.8 The 2023 Notes, the 2025 Notes and the 2027 Notes are senior unsecured obligations, do not contain any financial covenants and are governed by indentures between the Company, as issuer, and U.S. Bank National Association, as trustee (the Indentures). The total net proceeds from the 2023 Notes, the 2025 Notes and the 2027 Notes offerings, after deducting initial purchase discounts and estimated debt issuance costs, were $223.1 million, $222.8 million and $585.0 million, respectively. Terms of the Notes The holders of the Notes may convert their respective Notes at their option at any time prior to the close of business on the business day immediately preceding their respective convertible dates only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ending on December 31, 2018 for the 2023 Notes, September 30, 2020 for the 2025 Notes and March 20, 2024 for the 2027 Notes (and only during such calendar quarter), if the last reported sale price of our 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 respective Notes on each applicable trading day; • during the five business day period after any five consecutive trading day period for the 2023 Notes and the 2025 Notes and any ten consecutive trading day period for the 2027 Notes (measurement periods) in which the trading price (as defined in the Indentures) per $1,000 principal amount of the applicable series of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate of the respective Notes on each such trading day; • if we call any or all of the respective Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the respective redemption date; or • upon the occurrence of specified corporate events (as set forth in the Indentures). As of March 31, 2021, the conversion feature of the 2023 Notes was triggered as the last reported price of our common stock was greater than or equal to 130% of the conversion price for at least 20 trading days in the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter, and therefore the 2023 Notes were convertible, in whole or in part, at the option of the holders from April 1, 2021 through June 30, 2021. Whether the 2023 Notes will be convertible following such period will depend on the continued satisfaction of this condition or another conversion condition in the future. Since we may elect to repay the 2023 Notes in cash, shares of our common stock, or a combination of both, we have continued to classify the 2023 Notes as long-term debt on our consolidated balance sheet as of March 31, 2021. As of March 31, 2021, the 2025 Notes and the 2027 Notes are not convertible at the option of the holder. As of March 31, 2021, an immaterial principal amount of the 2023 Notes was requested for conversion, which is expected to be settled during the quarter ended June 30, 2021. No additional conversion requests for the 2023 Notes have been received. The holders may convert the 2023 Notes, the 2025 Notes and the 2027 Notes at any time on or after February 1, 2023, November 1, 2024 and December 15, 2026, respectively, until the close of business on the second scheduled trading day immediately preceding the maturity date, regardless of the circumstances set forth above. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election, in the manner and subject to the terms and conditions provided in the Indentures. If we undergo a fundamental change (as set forth in the Indentures) at any time prior to the maturity date, holders of the Notes will have the right, at their option, to require us to repurchase for cash all or any portion of their Notes at a repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, following certain corporate events that occur prior to the maturity date or following our issuance of a notice of redemption, in each case as described in the Indentures, we will increase the conversion rate for a holder of the Notes who elects to convert its Notes in connection with such a corporate event or during the related redemption period in certain circumstances. We may not redeem the 2023 Notes, the 2025 Notes or the 2027 Notes prior to August 6, 2021, May 6, 2023 and March 20, 2024 (Redemption Dates), respectively. On or after the respective Redemption Dates, we may redeem for cash all or any portion of the 2023 Notes, the 2025 Notes or the 2027 Notes, at our option, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including the trading day immediately preceding, the date on which we provide the redemption notice at a redemption price equal to 100% principal amount of the 2023 Notes, the 2025 Notes or the 2027 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. Partial Repurchase of the 2023 Notes On March 16, 2021, we used a portion of the proceeds from the issuance of the 2027 Notes, together with 2.2 million shares of our common stock, to repurchase and retire $182.6 million aggregate principal amount of the 2023 Notes, and paid accrued and unpaid interest thereon (the 2023 Notes Repurchase Transaction). The 2023 Notes Repurchase Transaction was accounted for as an induced conversion in accordance with Accounting Standards Codification 470-20, Debt with Conversion and Other Options (ASC 470-20). The total fair value of the additional common stock issued to induce the conversion of $2.7 million was recognized as an inducement expense and classified as a component of interest expense in our consolidated statement of operations. The remaining cash and common stock consideration issued under the original terms of the 2023 Notes was accounted for under the general conversion accounting guidance where the difference between the carrying amount of the 2023 Notes retired, including unamortized debt issuance cost of $2.7 million, and the cash consideration paid and the par amount of the common stock issued, was recorded in additional paid-in capital. Accounting for the Notes Prior to the Adoption of ASU 2020-06 Prior to our January 1, 2021 adoption of ASU 2020-06, the 2023 Notes and the 2025 Notes were separated into liability and equity components. The initial carrying amounts of the liability components were calculated by measuring the fair value of similar debt instruments that do not have an associated convertible feature. The initial carrying amounts of the equity components representing the option to convert the 2023 Notes and the 2025 Notes was $53.8 million and $48.3 million, respectively, and were determined by deducting the fair values of the liability components from the par value of the 2023 Notes and 2025 Notes. The equity components were recorded as an increase to additional paid-in capital and were not remeasured as long as they continued to meet the conditions for equity classification. The excess of the principal amount of the 2023 Notes and the 2025 Notes over their respective carrying amount of the liability component, or debt discount, was amortized to interest expense using the effective interest method over the contractual terms of the respective convertible senior notes. In addition, prior to the adoption of ASU 2020-06, the debt issuance costs of $6.9 million and $7.2 million related to the 2023 Notes and the 2025 Notes, respectively, were allocated to the liability and equity components of the 2023 Notes and 2025 Notes based on their relative values. Debt issuance costs attributable to the liability component were $5.3 million and $5.7 million, for the 2023 Notes and the 2025 Notes, respectively, and were amortized to interest expense using the effective interest method over the contractual term of the 2023 Notes and 2025 Notes, respectively. Debt issuance costs attributable to the equity component of $1.6 million and $1.5 million for the 2023 Notes and the 2025 Notes, respectively, were netted with the equity component in additional paid-in capital. Impact of the Adoption of ASU 2020-06 On January 1, 2021, we early adopted ASU 2020-06 on a modified retrospective basis. Under ASU 2020-06, we no longer separate the convertible senior notes into liability and equity components. We recognized the cumulative effect of initially applying this new standard as of January 1, 2021. Comparative prior year periods were not adjusted. As a result of applying the modified retrospective method to adopt this standard, the following adjustments were made to the consolidated balance sheet as of January 1, 2021 (in thousands): As Reported Adjustments Adjusted Under ASU 2020-06 December 31, 2020 Transfer Equity Component of the Debt to Liabilities Reverse Equity Component of Debt Issuance Costs Reverse Debt Discount Amortization Record Debt Issuance Costs Amortization Total January 1, 2021 Liabilities and Stockholders' Equity: Convertible senior notes, net $ 378,586 $ 102,166 $ (3,140) $ (28,811) $ 1,226 $ 71,441 $ 450,027 Total liabilities $ 841,586 $ 102,166 $ (3,140) $ (28,811) $ 1,226 $ 71,441 $ 913,027 Stockholders' Equity: Additional paid-in capital $ 692,603 $ (102,166) $ 3,140 $ — $ — $ (99,026) $ 593,577 Accumulated deficit $ (617,279) $ — $ — $ 28,811 $ (1,226) $ 27,585 $ (589,694) Total stockholders' equity $ 71,536 $ (102,166) $ 3,140 $ 28,811 $ (1,226) $ (71,441) $ 95 Total liabilities and stockholders' equity $ 913,122 $ — $ — $ — $ — $ — $ 913,122 Post Adoption of ASU 2020-06 In accounting for the issuance of the 2027 Notes, the principal of $600.0 million less estimated debt issuance costs of $15.0 million was recorded as long-term debt on our consolidated balance sheet. The debt issuance costs are amortized to interest expense using the effective interest method over the contractual term of the 2027 Notes. The net carrying amount of the Notes as of March 31, 2021 and December 31, 2020 was as follows (in thousands): As of March 31, 2021 As of December 31, 2020 2023 Notes 2025 Notes 2027 Notes Total 2023 Notes 2025 Notes Total Principal $ 47,353 $ 230,000 $ 600,000 $ 877,353 $ 230,000 $ 230,000 $ 460,000 Unamortized debt discount — — — — (30,425) (42,930) (73,355) Unamortized debt issuance costs (778) (5,957) (14,909) (21,644) (3,009) (5,050) (8,059) Net carrying amount $ 46,575 $ 224,043 $ 585,091 $ 855,709 $ 196,566 $ 182,020 $ 378,586 Interest expense related to the Notes was as follows (in thousands): Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 2023 Notes 2025 Notes 2027 Notes Total 2023 Notes Total Contractual interest expense $ 558 $ 1,294 $ 50 $ 1,902 $ 719 $ 719 Amortization of debt discount — — — — 2,496 2,496 Amortization of debt issuance costs 221 319 80 620 247 247 Induced conversion expense 2,740 — — 2,740 — — Total interest expense $ 3,519 $ 1,613 $ 130 $ 5,262 $ 3,462 $ 3,462 Capped Calls In connection with the offering of the 2023 Notes, the 2025 Notes and the 2027 Notes, we entered into privately negotiated capped call transactions with certain counterparties (the 2023 Capped Calls, 2025 Capped Calls and 2027 Capped Calls). The initial strike prices for the 2023 Capped Calls, the 2025 Capped Calls and the 2027 Capped Calls are $41.59, $61.02 and $103.38 per share, respectively, subject to certain adjustments, which correspond to the initial conversion price of the 2023 Notes, the 2025 Notes and the 2027 Notes. The initial cap prices for the 2023 Capped Calls, the 2025 Capped Calls and the 2027 Capped Calls are $63.98, $93.88 and $159.04 per share, respectively, subject to certain adjustments. The 2023 Capped Calls, the 2025 Capped Calls and the 2027 Capped Calls are expected to offset potential dilution to our common stock upon conversion of the respective 2023 Notes, the 2025 Notes or the 2027 Notes, with such offset subject to a cap based on the cap price. For accounting purposes, the 2023 Capped Calls, the 2025 Capped Calls and the 2027 Capped Calls are separate transactions, and not part of the terms of the 2023 Notes, the 2025 Notes and the 2027 Notes. The 2023 Capped Calls, the 2025 Capped Calls and the 2027 Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives. Accordingly, the cost of $26.9 million, $27.3 million and $76.0 million, respectively, for the 2023 Capped Calls, the 2025 Capped Calls and the 2027 Capped Calls was recorded as a reduction to additional paid-in capital at the time of each transaction. Credit Agreement In April 2020, we entered into a Credit and Security Agreement (the Credit Agreement), with KeyBank National Association that provides for a $30.0 million revolving credit facility, with a letter of credit sublimit of $15.0 million and an accordion feature under which we can increase the credit facility to up to $70.0 million. In May 2020, we utilized the accordion feature to increase the credit facility to $50.0 million. We incurred fees of $0.4 million in connection with entering into the Credit Agreement. The fees are recorded in other current assets on the consolidated balance sheet and are amortized on a straight-line basis over the contractual term of the arrangement. The commitment fee of 0.2% per annum on the unused portion of the credit facility is expensed as incurred and included within interest expense on the consolidated statement of operations. The Credit Agreement matures on April 23, 2023 and contains certain financial covenants including a requirement that we maintain specified minimum recurring revenue and liquidity amounts. The borrowings under the Credit Agreement bear interest, at our option, at a rate equal to either the London Interbank Offered Rate (LIBOR) rate (subject to a 1.00% floor), plus an applicable margin equal to 2.50% per annum or the alternate base rate (subject to a floor), plus an applicable margin equal to 0% per annum. As of March 31, 2021, we did not have any outstanding borrowings and we were in compliance with all covenants under the Credit Agreement. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Our leases primarily relate to office facilities that have remaining terms of up to 9.7 years, some of which include one or more options to renew with renewal terms of up to 5 years and some of which include options to terminate the leases within the next 6.5 years. All of our leases are classified as operating leases. The components of lease expense were as follows: Three Months Ended March 31, 2021 2020 (in thousands) Operating lease cost $ 3,766 $ 3,371 Short-term lease costs 165 290 Variable lease costs 1,463 922 Total lease costs $ 5,394 $ 4,583 Supplemental balance sheet information related to the operating leases was as follows: As of March 31, 2021 As of December 31, 2020 Weighted average remaining lease term (in years) - operating leases 7.7 7.9 Weighted average discount rate - operating leases 7.7 % 7.7 % Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2021 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 4,147 $ 3,836 ROU assets obtained in exchange for new lease obligations $ 152 $ 3,990 Maturities of operating lease liabilities as of March 31, 2021 were as follows (in thousands): 2021 (for the remaining nine months) $ 11,022 2022 13,880 2023 14,167 2024 13,461 2025 12,543 2026 and thereafter 41,983 Total lease payments $ 107,056 Less: imputed interest (24,329) Total $ 82,727 |
Stock-Based Compensation Expens
Stock-Based Compensation Expense | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense | Stock-Based Compensation Expense (a) General Stock-based compensation expense for restricted stock units (RSUs), performance-based restricted stock units (PSUs), stock options and issuances of common stock pursuant to our employee stock purchase plan was classified in the accompanying consolidated statements of operations as follows: Three Months Ended March 31, 2021 2020 (in thousands) Stock-based compensation expense: Cost of revenue $ 1,554 $ 931 Research and development 7,815 4,645 Sales and marketing 5,746 3,678 General and administrative 5,747 4,093 Total stock-based compensation expense $ 20,862 $ 13,347 We recognize compensation cost of all awards on a straight-line basis over the applicable vesting period, which is generally four years. Our Compensation Committee adopted and approved the performance goals, targets and payout formulas for our 2021 and 2020 bonus plans, including permitting our executive officers and certain other employees the opportunity to receive payment of their earned bonuses in the form of common stock (in lieu of cash). During the three months ended March 31, 2021 and 2020, we recognized stock-based compensation expense related to such bonuses in the amount of $1.0 million and $0.4 million, respectively, based on the probable expected performance against the pre-established corporate financial objectives as of March 31, 2021 and 2020. For all employees, including executive officers, who elect to receive their bonuses in the form of common stock (in lieu of cash), the payouts are expected to be made in the form of fully vested stock awards in the first quarter of the following year pursuant to our 2015 Equity Incentive Plan, as amended. The number of shares underlying such awards is determined by dividing the dollar value of the actual bonus award payment by the closing price per share of our common stock on the date of grant. (b) Restricted Stock Units and Performance-Based Restricted Stock Units RSUs and PSUs activity during the three months ended March 31, 2021 was as follows: Shares Weighted-Average Unvested balance as of December 31, 2020 2,941,914 $ 45.86 Granted 1,447,632 88.64 Vested (374,579) 33.20 Forfeited (61,704) 52.67 Unvested balance as of March 31, 2021 3,953,263 $ 62.61 As of March 31, 2021, the unrecognized compensation expense related to our unvested RSUs and PSUs was $228.8 million. This unrecognized compensation expense will be recognized over an estimated weighted-average amortization period of 2.8 years. (c) Stock Options Stock option activity during the three months ended March 31, 2021 was as follows: Shares Weighted Weighted Aggregate Outstanding as of December 31, 2020 1,933,013 $ 10.07 Granted — — Exercised (170,006) 8.34 $ 12,550 Forfeited/cancelled — — Outstanding as of March 31, 2021 1,763,007 $ 10.24 3.9 $ 113,492 Vested and exercisable as of March 31, 2021 1,736,419 $ 10.04 3.8 $ 112,127 As of March 31, 2021, the unrecognized compensation expense related to our unvested stock options was $0.3 million. This unrecognized compensation expense will be recognized over an estimated weighted-average amortization period of 0.8 years. The total fair value of stock options vested in the three months ended March 31, 2021 was $0.4 million. (d) Employee Stock Purchase Plan Under the Rapid7, Inc. 2015 Employee Stock Purchase Plan (ESPP), employees may set aside up to 15% of their gross earnings, on an after-tax basis, to purchase our common stock at a discounted price, which is calculated at 85% of the lesser of: (i) the market value of our common stock at the beginning of each offering period and (ii) the market value of our common stock on the applicable purchase date. On March 15, 2021, we issued 147,837 shares of common stock to employees, with purchase prices of $28.39 or $52.60 per share, for aggregate proceeds of $4.5 million. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | Net Loss per Share The following table summarizes the computation of basic and diluted net loss per share of our common stock for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 (in thousands, except share and per share data) Numerator: Net loss $ (29,845) $ (22,924) Denominator: Weighted-average common shares outstanding, basic and diluted 52,904,881 50,127,310 Net loss per share, basic and diluted $ (0.56) $ (0.46) We intend to settle any conversion of our 2023 Notes, 2025 Notes and 2027 Notes in cash, shares, or a combination thereof. As a result of our adoption of ASU 2020-06 on January 1, 2021, the dilutive impact of the Notes for our calculation of diluted net income (loss) per share is considered using the if-converted method. For periods prior to our January 1, 2021 adoption of ASU 2020-06, we considered the impact of the Notes on our diluted net income (loss) per share calculation based on applying the treasury stock method as we had the ability, and intent, to settle any conversions of the Notes solely in cash at that time. For the three months ended March 31, 2021 and 2020, the shares underlying the Notes were not considered in the calculation of diluted net loss per share as the effect would have been anti-dilutive under each respective method. In connection with the issuance of the 2023 Notes, the 2025 Notes and the 2027 Notes, we entered into 2023 Capped Calls, 2025 Capped Calls and 2027 Capped Calls, which were not included for the purpose of calculating the number of diluted shares outstanding, as their effect would have been anti-dilutive. The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding for the respective periods below because they would have been anti-dilutive: Three Months Ended March 31, 2021 2020 Options to purchase common stock 1,763,007 2,568,776 Unvested restricted stock units 3,953,263 3,715,342 Shares to be issued under ESPP 7,889 11,522 Convertible senior notes 10,711,653 5,530,176 Total 16,435,812 11,825,816 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies (a) Warranty We provide limited product warranties. Historically, any payments made under these provisions have been immaterial. (b) Litigation and Claims In October 2018, Finjan, Inc. (Finjan) filed a complaint against us and our wholly-owned subsidiary, Rapid7 LLC, in the United States District Court, District of Delaware, alleging patent infringement of seven patents held by them. In the complaint, Finjan sought unspecified damages, attorneys' fees and injunctive relief. We intend to vigorously contest Finjan's claims. The final outcome, including our liability, if any, with respect to Finjan's claims, is uncertain. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. In addition, from time to time, we may be a party to litigation or subject to claims incident to the ordinary course of business. Although the results of litigation and claims cannot be predicted with certainty, we currently believe that the final outcome of these ordinary course matters will not have a material adverse effect on our business. Regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources and other factors. (c) Indemnification Obligations We agree to standard indemnification provisions in the ordinary course of business. Pursuant to these provisions, we agree to indemnify, hold harmless and reimburse the indemnified party for losses suffered or incurred by the indemnified party, generally our customers, in connection with any United States patent, copyright or other intellectual property infringement claim by any third party arising from the use of our products or services in accordance with the agreement or arising from our gross negligence, willful misconduct or violation of the law (provided that there is not gross or willful misconduct on the part of the other party) with respect to our products or services. The term of these indemnification provisions is generally perpetual from the time of execution of the agreement. We carry insurance that covers certain third-party claims relating to our services and limits our exposure. We have never incurred costs to defend lawsuits or settle claims related to these indemnification provisions. As permitted under Delaware law, we have entered into indemnification agreements with our officers and directors, indemnifying them for certain events or occurrences while they serve as officers or directors of the company. |
Segment Information and Informa
Segment Information and Information about Geographic Areas | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information and Information about Geographic Areas | Segment Information and Information about Geographic Areas We operate in one segment. Our chief operating decision maker is our Chief Executive Officer, who makes operating decisions, assesses performance and allocates resources on a consolidated basis. Net revenues by geographic area presented based upon the location of the customer were as follows: Three Months Ended March 31, 2021 2020 (in thousands) United States $ 92,509 $ 75,837 Other 24,942 18,503 Total $ 117,451 $ 94,340 Property and equipment, net by geographic area was as follows: As of March 31, 2021 As of December 31, 2020 (in thousands) United States $ 38,585 $ 40,101 Other 12,556 13,013 Total $ 51,141 $ 53,114 |
Description of Business, Basi_2
Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation The accompanying unaudited consolidated financial statements have been prepared by us in accordance with accounting principles generally accepted in the United States of America (GAAP), as well as pursuant to the rules and regulations of the Securities and Exchange Commission (SEC), regarding interim financial reporting. Accordingly, certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 26, 2021. The consolidated financial statements include our results of operations and those of our wholly-owned subsidiaries and reflect all adjustments (consisting solely of normal, recurring adjustments) which are, in the opinion of management, necessary for a fair statement of results for the interim periods presented. All intercompany transactions and balances have been eliminated in consolidation. The results of operations for the three months ended March 31, 2021 are not necessarily indicative of the results to be expected for any future period or the entire fiscal year. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The management estimates include, but are not limited to the determination of the estimated economic life of perpetual licenses for revenue recognition, the determination of standalone selling prices in revenue transactions with multiple performance obligations, the estimated period of benefit for deferred contract acquisition and fulfillment costs, the useful lives and recoverability of long-lived assets, the valuation of allowance for doubtful accounts, the valuation of stock-based compensation, the fair value of assets acquired and liabilities assumed in business combinations, the incremental borrowing rate for operating leases and the valuation for deferred tax assets. We base our estimates on historical experience and on various other assumptions that we believe are reasonable. Actual results could differ from those estimates. The COVID-19 pandemic has resulted in a sustained global slowdown of economic activity that has decreased demand for a broad variety of goods and services, including from our customers. While we have not experienced significant disruptions from the COVID-19 pandemic during the first quarter of fiscal 2021, we are unable to accurately predict the extent to which the COVID-19 pandemic may impact our business, results of operations and financial condition going forward. Estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require the exercise of judgment. As of the date of issuance of these financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, assumptions and judgments or revise the carrying value of our assets or liabilities. These estimates may change as new events occur and additional information is obtained and will be recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to our financial statements. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplified the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. We early adopted this standard on January 1, 2021 under the modified retrospective basis. Refer to Note 10, Debt , for further details of the impact the adoption of this standard had on our consolidated balance sheet. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes . This standard is intended to simplify various aspects related to accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and clarifying certain aspects of the current guidance to promote consistency among reporting entities. We adopted this standard on January 1, 2021 and there was no impact to our consolidated financial statements as a result of the adoption. Accounting Pronouncements Not Yet Effective In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides temporary optional expedients and exceptions to GAAP guidance on contract modifications to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) to alternative reference rates. We may elect to apply the amendments prospectively through December 31, 2022. The impact to our consolidated financial statements from the adoption of this standard is expected to be immaterial. |
Revenue | We generate revenue primarily from: (1) subscriptions from the sale of cloud-based subscriptions, managed services, term software licenses, content subscriptions and maintenance and support associated with our software licenses, (2) perpetual software licenses, and (3) professional services from the sale of our deployment and training services related to our solutions, incident response services, penetration testing and security advisory services. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue from Contracts with Customers and Revenue by Region | The following table summarizes revenue from contracts with customers for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 (in thousands) Subscriptions $ 107,167 $ 84,548 Perpetual software licenses 2,114 2,770 Professional services 8,166 6,791 Other 4 231 Total revenue $ 117,451 $ 94,340 |
Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations | The estimated revenues do not include unexercised contract renewals. Next Twelve Months Thereafter (in thousands) Subscriptions $ 290,552 $ 79,335 Perpetual software licenses 6,880 2,917 Professional services 12,488 1,084 |
Business Combination (Tables)
Business Combination (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Summary of Preliminary Allocation of Purchase Price to Estimated Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary allocation of purchase price to the estimated fair value of the assets acquired and liabilities assumed at the acquisition date (in thousands): Purchase price $ 50,538 Recognized amount of identifiable assets acquired and liabilities assumed: Cash and cash equivalents 818 Other current assets 163 Deferred tax asset, long-term 2,714 Other assets 208 Accounts payable and other current liabilities (3,488) Intangible assets 10,400 Total identifiable net assets assumed 10,815 Goodwill 39,723 Total purchase price allocation $ 50,538 |
Business Acquisition, Pro Forma Information | The unaudited pro forma financial information in the table below summarizes the combined results of our operations and DivvyCloud, on a pro forma basis, as though we had acquired DivvyCloud on January 1, 2019. The unaudited pro forma financial information also includes the effects of business combination accounting resulting from the acquisition, including an adjustment to revenue for the deferred revenue fair value adjustment, amortization expense from acquired intangibles assets, reversal of acquisition-related expenses and the stock-compensation expense recorded to retain certain employees. Three Months Ended March 31, 2020 (in thousands) Revenue $ 97,221 Net loss $ (27,566) |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investments Classified as Available-For-Sale | Our investments, which are all classified as available-for-sale, consisted of the following: As of March 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. government agencies 55,388 5 — 55,393 Commercial paper 27,676 — — 27,676 Corporate bonds 27,648 16 (7) 27,657 Asset-backed securities 2,403 — — 2,403 Total $ 113,115 $ 21 $ (7) $ 113,129 As of December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) Description: U.S. government agencies $ 83,596 $ 3 $ (12) $ 83,587 Corporate bonds 24,162 31 (1) 24,192 Commercial paper 34,766 — — 34,766 Agency bonds 3,998 1 — 3,999 Asset-backed securities 2,419 — — 2,419 Total $ 148,941 $ 35 $ (13) $ 148,963 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Measured and Recorded at Fair Value on Recurring Basis | The following table presents our financial assets and liabilities measured and recorded at fair value on a recurring basis using the above input categories: As of March 31, 2021 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds 464,176 $ — $ — $ 464,176 U.S. government agencies 55,393 — — 55,393 Commercial paper — 27,676 — 27,676 Corporate bonds — 27,657 — 27,657 Asset-backed securities — 2,403 — 2,403 Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets) — 226 — 226 Total $ 519,569 $ 57,962 $ — $ 577,531 Liabilities: Foreign currency forward contracts designated as cash flow hedges (other current liabilities) $ — $ 128 $ — $ 128 Total $ — $ 128 $ — $ 128 As of December 31, 2020 Level 1 Level 2 Level 3 Total (in thousands) Description: Assets: Money market funds $ 152,570 $ — $ — $ 152,570 U.S. government agencies 83,587 — — 83,587 Commercial paper — 34,766 — 34,766 Corporate bonds — 24,192 — 24,192 Agency bonds — 3,999 — 3,999 Asset-backed securities — 2,419 — 2,419 Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets) — 432 — 432 Total $ 236,157 $ 65,808 $ — $ 301,965 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment are recorded at cost and consist of the following: As of March 31, 2021 As of December 31, 2020 (in thousands) Computer equipment and software $ 14,368 $ 13,438 Furniture and fixtures 9,655 9,655 Leasehold improvements 50,427 50,336 Total 74,450 73,429 Less accumulated depreciation (23,309) (20,315) Property and equipment, net $ 51,141 $ 53,114 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table displays the changes in the gross carrying amount of goodwill: Amount (in thousands) Balance at December 31, 2020 $ 213,601 Alcide acquisition 39,723 Balance at March 31, 2021 $ 253,324 |
Schedule of Identifiable Intangible Assets | The following table presents details of our intangible assets, which include acquired identifiable intangible assets and capitalized internal-use software costs: As of March 31, 2021 As of December 31, 2020 Weighted- Gross Carrying Accumulated Net Book Value Gross Carrying Accumulated Net Book Value (in thousands) Intangible assets subject to amortization: Developed technology 5.7 $ 64,855 $ (27,521) $ 37,334 $ 54,455 $ (24,780) $ 29,675 Customer relationships 6.3 2,700 (1,061) 1,639 2,700 (958) 1,742 Trade names 5.4 1,419 (684) 735 1,419 (639) 780 Total acquired intangible assets 68,974 (29,266) 39,708 58,574 (26,377) 32,197 Internal-use software 3.0 17,760 (4,760) 13,000 16,002 (3,903) 12,099 Total intangible assets $ 86,734 $ (34,026) $ 52,708 $ 74,576 $ (30,280) $ 44,296 |
Schedule of Estimated Amortization Expense | Estimated future amortization expense of the acquired identifiable intangible assets and completed capitalized internal-use software costs as of March 31, 2021 was as follows (in thousands): 2021 (for the remaining nine months) $ 10,929 2022 11,934 2023 9,048 2024 5,605 2025 5,177 2026 and thereafter 2,987 Total $ 45,680 |
Deferred Contract Acquisition_2
Deferred Contract Acquisition and Fulfillment Costs (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Activity of Deferred Contract Acquisition and Fulfillment Costs | The following table summarizes the activity of the deferred contract acquisition and fulfillment costs for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 (in thousands) Beginning balance $ 64,639 $ 51,260 Capitalization of contract acquisition and fulfillment costs 7,865 5,084 Amortization of deferred contract acquisition and fulfillment costs (5,909) (4,569) Ending balance $ 66,595 $ 51,775 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Further details of the Notes are as follows: Issuance Maturity Date Interest Rate First Interest Payment Date Effective Interest Rate Semi-Annual Interest Payment Dates Initial Conversion Rate per $1,000 Principal Initial Conversion Price Number of Shares (in millions) 2023 Notes August 1, 2023 1.25 % February 1, 2019 1.86 % February 1 and August 1 24.0460 $ 41.59 1.1 2025 Notes May 1, 2025 2.25 % November 1, 2020 2.88 % May 1 and November 1 16.3875 $ 61.02 3.8 2027 Notes March 15, 2027 0.25 % September 15, 2021 0.67 % March 15 and September 15 9.6734 $ 103.38 5.8 |
Schedule of Liability and Equity Components of Convertible Debt | As a result of applying the modified retrospective method to adopt this standard, the following adjustments were made to the consolidated balance sheet as of January 1, 2021 (in thousands): As Reported Adjustments Adjusted Under ASU 2020-06 December 31, 2020 Transfer Equity Component of the Debt to Liabilities Reverse Equity Component of Debt Issuance Costs Reverse Debt Discount Amortization Record Debt Issuance Costs Amortization Total January 1, 2021 Liabilities and Stockholders' Equity: Convertible senior notes, net $ 378,586 $ 102,166 $ (3,140) $ (28,811) $ 1,226 $ 71,441 $ 450,027 Total liabilities $ 841,586 $ 102,166 $ (3,140) $ (28,811) $ 1,226 $ 71,441 $ 913,027 Stockholders' Equity: Additional paid-in capital $ 692,603 $ (102,166) $ 3,140 $ — $ — $ (99,026) $ 593,577 Accumulated deficit $ (617,279) $ — $ — $ 28,811 $ (1,226) $ 27,585 $ (589,694) Total stockholders' equity $ 71,536 $ (102,166) $ 3,140 $ 28,811 $ (1,226) $ (71,441) $ 95 Total liabilities and stockholders' equity $ 913,122 $ — $ — $ — $ — $ — $ 913,122 The net carrying amount of the Notes as of March 31, 2021 and December 31, 2020 was as follows (in thousands): As of March 31, 2021 As of December 31, 2020 2023 Notes 2025 Notes 2027 Notes Total 2023 Notes 2025 Notes Total Principal $ 47,353 $ 230,000 $ 600,000 $ 877,353 $ 230,000 $ 230,000 $ 460,000 Unamortized debt discount — — — — (30,425) (42,930) (73,355) Unamortized debt issuance costs (778) (5,957) (14,909) (21,644) (3,009) (5,050) (8,059) Net carrying amount $ 46,575 $ 224,043 $ 585,091 $ 855,709 $ 196,566 $ 182,020 $ 378,586 Interest expense related to the Notes was as follows (in thousands): Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 2023 Notes 2025 Notes 2027 Notes Total 2023 Notes Total Contractual interest expense $ 558 $ 1,294 $ 50 $ 1,902 $ 719 $ 719 Amortization of debt discount — — — — 2,496 2,496 Amortization of debt issuance costs 221 319 80 620 247 247 Induced conversion expense 2,740 — — 2,740 — — Total interest expense $ 3,519 $ 1,613 $ 130 $ 5,262 $ 3,462 $ 3,462 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Summary of Components of Lease Expense and Supplemental Cash Flow Information Related to Leases | The components of lease expense were as follows: Three Months Ended March 31, 2021 2020 (in thousands) Operating lease cost $ 3,766 $ 3,371 Short-term lease costs 165 290 Variable lease costs 1,463 922 Total lease costs $ 5,394 $ 4,583 Supplemental cash flow information related to leases was as follows: Three Months Ended March 31, 2021 2020 (in thousands) Cash paid for amounts included in the measurement of lease liabilities $ 4,147 $ 3,836 ROU assets obtained in exchange for new lease obligations $ 152 $ 3,990 |
Summary of Supplemental Balance Sheet Information Related to Operating Leases | Supplemental balance sheet information related to the operating leases was as follows: As of March 31, 2021 As of December 31, 2020 Weighted average remaining lease term (in years) - operating leases 7.7 7.9 Weighted average discount rate - operating leases 7.7 % 7.7 % |
Summary of Maturities of Operating Lease Liabilities and Future Minimum Payments under Non-cancellable Leases | Maturities of operating lease liabilities as of March 31, 2021 were as follows (in thousands): 2021 (for the remaining nine months) $ 11,022 2022 13,880 2023 14,167 2024 13,461 2025 12,543 2026 and thereafter 41,983 Total lease payments $ 107,056 Less: imputed interest (24,329) Total $ 82,727 |
Stock-Based Compensation Expe_2
Stock-Based Compensation Expense (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation Expense | Stock-based compensation expense for restricted stock units (RSUs), performance-based restricted stock units (PSUs), stock options and issuances of common stock pursuant to our employee stock purchase plan was classified in the accompanying consolidated statements of operations as follows: Three Months Ended March 31, 2021 2020 (in thousands) Stock-based compensation expense: Cost of revenue $ 1,554 $ 931 Research and development 7,815 4,645 Sales and marketing 5,746 3,678 General and administrative 5,747 4,093 Total stock-based compensation expense $ 20,862 $ 13,347 |
Summary of Restricted Stock and Restricted Stock Unit Activity | RSUs and PSUs activity during the three months ended March 31, 2021 was as follows: Shares Weighted-Average Unvested balance as of December 31, 2020 2,941,914 $ 45.86 Granted 1,447,632 88.64 Vested (374,579) 33.20 Forfeited (61,704) 52.67 Unvested balance as of March 31, 2021 3,953,263 $ 62.61 |
Summary of Stock Option Activity | Stock option activity during the three months ended March 31, 2021 was as follows: Shares Weighted Weighted Aggregate Outstanding as of December 31, 2020 1,933,013 $ 10.07 Granted — — Exercised (170,006) 8.34 $ 12,550 Forfeited/cancelled — — Outstanding as of March 31, 2021 1,763,007 $ 10.24 3.9 $ 113,492 Vested and exercisable as of March 31, 2021 1,736,419 $ 10.04 3.8 $ 112,127 |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Basic and Diluted Net Loss Per Share of Common Stock | The following table summarizes the computation of basic and diluted net loss per share of our common stock for the three months ended March 31, 2021 and 2020: Three Months Ended March 31, 2021 2020 (in thousands, except share and per share data) Numerator: Net loss $ (29,845) $ (22,924) Denominator: Weighted-average common shares outstanding, basic and diluted 52,904,881 50,127,310 Net loss per share, basic and diluted $ (0.56) $ (0.46) |
Anti-Dilutive Securities Excluded from Computation Diluted Weighted Average Shares Outstanding | The following potentially dilutive securities outstanding have been excluded from the computation of diluted weighted-average shares outstanding for the respective periods below because they would have been anti-dilutive: Three Months Ended March 31, 2021 2020 Options to purchase common stock 1,763,007 2,568,776 Unvested restricted stock units 3,953,263 3,715,342 Shares to be issued under ESPP 7,889 11,522 Convertible senior notes 10,711,653 5,530,176 Total 16,435,812 11,825,816 |
Segment Information and Infor_2
Segment Information and Information about Geographic Areas (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Net Revenues of Customer by Geographic Area | Net revenues by geographic area presented based upon the location of the customer were as follows: Three Months Ended March 31, 2021 2020 (in thousands) United States $ 92,509 $ 75,837 Other 24,942 18,503 Total $ 117,451 $ 94,340 |
Property and Equipment, Net By Geographic Area | Property and equipment, net by geographic area was as follows: As of March 31, 2021 As of December 31, 2020 (in thousands) United States $ 38,585 $ 40,101 Other 12,556 13,013 Total $ 51,141 $ 53,114 |
Description of Business, Basi_3
Description of Business, Basis of Presentation and Consolidation and Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total stockholders' equity | $ (81,225) | $ 71,536 | $ 76,300 | $ 83,168 |
Accumulated deficit | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total stockholders' equity | $ (619,539) | (617,279) | $ (541,354) | $ (518,430) |
Cumulative Effect, Period of Adoption, Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total stockholders' equity | (71,441) | |||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated deficit | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total stockholders' equity | $ 27,585 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Revenue from Contracts with Customers and Revenue by Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 117,451 | $ 94,340 |
Subscriptions | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 107,167 | 84,548 |
Perpetual software licenses | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 2,114 | 2,770 |
Professional services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 8,166 | 6,791 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 4 | $ 231 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Revenue recognized | $ 101.9 | $ 83.4 | |
Contract assets | $ 1.1 | $ 1.2 | |
Perpetual software licenses | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Economic life | 5 years | ||
Professional services | Difference between Revenue Guidance in Effect before and after Topic 606 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Contractual period | 1 year |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Subscriptions | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 290,552 |
Expected timing of satisfaction, period | 12 months |
Subscriptions | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 79,335 |
Expected timing of satisfaction, period | |
Perpetual software licenses | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 6,880 |
Expected timing of satisfaction, period | 12 months |
Perpetual software licenses | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 2,917 |
Expected timing of satisfaction, period | |
Professional services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 12,488 |
Expected timing of satisfaction, period | 12 months |
Professional services | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 1,084 |
Expected timing of satisfaction, period |
Business Combination - Addition
Business Combination - Additional Information (Details) $ in Thousands | Jan. 28, 2021USD ($)reportingUnitshares | May 01, 2020USD ($)reportingUnit | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Business Acquisition [Line Items] | ||||
Number of reporting units | reportingUnit | 1 | 1 | ||
Vesting period | 4 years | |||
Goodwill | $ 253,324 | $ 213,601 | ||
Alcide.IO Ltd. | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 50,538 | |||
Acquisition related costs | 900 | |||
Net assets acquired | 10,815 | |||
Goodwill | 39,723 | |||
Intangible assets | 10,400 | |||
Alcide.IO Ltd. | General and Administrative | ||||
Business Acquisition [Line Items] | ||||
Acquisition related costs | 800 | |||
Alcide.IO Ltd. | Sales and Marketing | ||||
Business Acquisition [Line Items] | ||||
Acquisition related costs | $ 100 | |||
Alcide.IO Ltd. | Developed Technology Rights | ||||
Business Acquisition [Line Items] | ||||
Finite-lived intangible assets acquired | $ 10,400 | |||
Useful life | 6 years | |||
Alcide.IO Ltd. | Restricted Stock Units (RSUs) | ||||
Business Acquisition [Line Items] | ||||
Equity awards granted to certain retained employees (in shares) | shares | 96,127 | |||
Vesting period | 3 years | |||
Divvy Cloud Corporation | ||||
Business Acquisition [Line Items] | ||||
Purchase price | $ 137,800 | |||
Net assets acquired | 800 | |||
Goodwill | 115,700 | |||
Intangible assets | $ 21,200 |
Business Combination - Summary
Business Combination - Summary of Preliminary Allocation of Purchase Price to Estimated Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jan. 28, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 253,324 | $ 213,601 | |
Alcide.IO Ltd. | |||
Business Acquisition [Line Items] | |||
Purchase price | $ 50,538 | ||
Cash and cash equivalents | 818 | ||
Other current assets | 163 | ||
Deferred tax asset, long-term | 2,714 | ||
Other assets | 208 | ||
Accounts payable and other current liabilities | (3,488) | ||
Intangible assets | 10,400 | ||
Total identifiable net assets assumed | 10,815 | ||
Goodwill | 39,723 | ||
Total purchase price allocation | $ 50,538 |
Business Combinations - Summary
Business Combinations - Summary of Estimated Fair Value and Useful Life of Identifiable Intangible Assets (Details) - Developed Technology Rights - Alcide.IO Ltd. $ in Millions | Jan. 28, 2021USD ($) |
Business Acquisition [Line Items] | |
Finite-lived intangible assets acquired | $ 10.4 |
Useful life | 6 years |
Business Combination - Pro Form
Business Combination - Pro Forma Information (Details) - Divvy Cloud Corporation $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Business Acquisition [Line Items] | |
Revenue | $ 97,221 |
Net loss | $ (27,566) |
Investments (Details)
Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | $ 113,115 | $ 148,941 |
Gross Unrealized Gains | 21 | 35 |
Gross Unrealized Losses | (7) | (13) |
Fair Value | $ 113,129 | $ 148,963 |
Minimum | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Remaining maturity | 1 month | 1 month |
Maximum | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Remaining maturity | 13 months | 19 months |
U.S. Government Agencies | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | $ 55,388 | $ 83,596 |
Gross Unrealized Gains | 5 | 3 |
Gross Unrealized Losses | 0 | (12) |
Fair Value | 55,393 | 83,587 |
Commercial Paper | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 27,676 | 34,766 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 27,676 | 34,766 |
Corporate Bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 27,648 | 24,162 |
Gross Unrealized Gains | 16 | 31 |
Gross Unrealized Losses | (7) | (1) |
Fair Value | 27,657 | 24,192 |
Agency Bonds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 3,998 | |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | 0 | |
Fair Value | 3,999 | |
Asset-backed Securities | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Amortized Cost | 2,403 | 2,419 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 2,403 | $ 2,419 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets Measured and Recorded at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Available-for-sale securities | $ 113,129 | $ 148,963 |
The Notes, Due 2023 | Convertible Debt | ||
Liabilities: | ||
Interest Rate | 1.25% | |
Convertible debt, fair value | $ 86,800 | |
The Notes, Due 2025 | Convertible Debt | ||
Liabilities: | ||
Interest Rate | 2.25% | |
Convertible debt, fair value | $ 325,900 | |
The Notes, Due 2027 | Convertible Debt | ||
Liabilities: | ||
Interest Rate | 0.25% | |
Convertible debt, fair value | $ 583,900 | |
Fair Value, Recurring | ||
Assets: | ||
Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets) | 226 | 432 |
Total | 577,531 | 301,965 |
Liabilities: | ||
Foreign currency forward contracts designated as cash flow hedges (other current liabilities) | 128 | |
Total | 128 | |
Level 1 | Fair Value, Recurring | ||
Assets: | ||
Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets) | 0 | 0 |
Total | 519,569 | 236,157 |
Liabilities: | ||
Foreign currency forward contracts designated as cash flow hedges (other current liabilities) | 0 | |
Total | 0 | |
Level 2 | Fair Value, Recurring | ||
Assets: | ||
Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets) | 226 | 432 |
Total | 57,962 | 65,808 |
Liabilities: | ||
Foreign currency forward contracts designated as cash flow hedges (other current liabilities) | 128 | |
Total | 128 | |
Level 3 | Fair Value, Recurring | ||
Assets: | ||
Foreign currency forward contracts designated as cash flow hedges (prepaid expenses and other current assets) | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ||
Foreign currency forward contracts designated as cash flow hedges (other current liabilities) | 0 | |
Total | 0 | |
U.S. Government Agencies | ||
Assets: | ||
Available-for-sale securities | 55,393 | 83,587 |
U.S. Government Agencies | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 55,393 | 83,587 |
U.S. Government Agencies | Level 1 | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 55,393 | 83,587 |
U.S. Government Agencies | Level 2 | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
U.S. Government Agencies | Level 3 | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Commercial Paper | ||
Assets: | ||
Available-for-sale securities | 27,676 | 34,766 |
Commercial Paper | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 27,676 | 34,766 |
Commercial Paper | Level 1 | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Commercial Paper | Level 2 | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 27,676 | 34,766 |
Commercial Paper | Level 3 | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Corporate Bonds | ||
Assets: | ||
Available-for-sale securities | 27,657 | 24,192 |
Corporate Bonds | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 27,657 | 24,192 |
Corporate Bonds | Level 1 | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Corporate Bonds | Level 2 | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 27,657 | 24,192 |
Corporate Bonds | Level 3 | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Agency Bonds | ||
Assets: | ||
Available-for-sale securities | 3,999 | |
Agency Bonds | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 3,999 | |
Agency Bonds | Level 1 | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 0 | |
Agency Bonds | Level 2 | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 3,999 | |
Agency Bonds | Level 3 | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 0 | |
Asset-backed Securities | ||
Assets: | ||
Available-for-sale securities | 2,403 | 2,419 |
Asset-backed Securities | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 2,403 | 2,419 |
Asset-backed Securities | Level 1 | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Asset-backed Securities | Level 2 | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 2,403 | 2,419 |
Asset-backed Securities | Level 3 | Fair Value, Recurring | ||
Assets: | ||
Available-for-sale securities | 0 | 0 |
Money Market Funds | Fair Value, Recurring | ||
Assets: | ||
Money market funds | 464,176 | 152,570 |
Money Market Funds | Level 1 | Fair Value, Recurring | ||
Assets: | ||
Money market funds | 464,176 | 152,570 |
Money Market Funds | Level 2 | Fair Value, Recurring | ||
Assets: | ||
Money market funds | 0 | 0 |
Money Market Funds | Level 3 | Fair Value, Recurring | ||
Assets: | ||
Money market funds | $ 0 | $ 0 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 74,450 | $ 73,429 |
Less accumulated depreciation | (23,309) | (20,315) |
Property and equipment, net | 51,141 | 53,114 |
Computer Equipment and Software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 14,368 | 13,438 |
Furniture and Fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,655 | 9,655 |
Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 50,427 | $ 50,336 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 3 | $ 2.7 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 253,324 | $ 213,601 | |
Amortization expense | 3,700 | $ 2,100 | |
Capitalized computer software, gross | $ 7,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill Activity (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Balance at December 31, 2020 | $ 213,601 |
Alcide acquisition | 39,723 |
Balance at March 31, 2021 | $ 253,324 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total acquired intangible assets, Gross Carrying Amount | $ 68,974 | $ 58,574 |
Total acquired intangible assets, Accumulated Amortization | (29,266) | (26,377) |
Acquired Intangible Assets, Net Book Value | 39,708 | 32,197 |
Total intangible assets, Gross Carrying Amount | 86,734 | 74,576 |
Accumulated Amortization | (34,026) | (30,280) |
Total | 45,680 | |
Total intangible assets, Net Book Value | $ 52,708 | 44,296 |
Developed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Weighted-Average Life (years) | 5 years 8 months 12 days | |
Gross Carrying Amount | $ 64,855 | 54,455 |
Accumulated Amortization | (27,521) | (24,780) |
Total | $ 37,334 | 29,675 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Weighted-Average Life (years) | 6 years 3 months 18 days | |
Gross Carrying Amount | $ 2,700 | 2,700 |
Accumulated Amortization | (1,061) | (958) |
Total | $ 1,639 | 1,742 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Weighted-Average Life (years) | 5 years 4 months 24 days | |
Gross Carrying Amount | $ 1,419 | 1,419 |
Accumulated Amortization | (684) | (639) |
Total | $ 735 | 780 |
Internal-use Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, Weighted-Average Life (years) | 3 years | |
Gross Carrying Amount | $ 17,760 | 16,002 |
Accumulated Amortization | (4,760) | (3,903) |
Total | $ 13,000 | $ 12,099 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2021 | $ 10,929 |
2022 | 11,934 |
2023 | 9,048 |
2024 | 5,605 |
2025 | 5,177 |
2026 and thereafter | 2,987 |
Total | $ 45,680 |
Deferred Contract Acquisition_3
Deferred Contract Acquisition and Fulfillment Costs (Details) - Contract Acquisition and Fulfillment Costs - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Capitalized Contract Costs [Roll Forward] | ||
Beginning balance | $ 64,639 | $ 51,260 |
Capitalization of contract acquisition and fulfillment costs | 7,865 | 5,084 |
Amortization of deferred contract acquisition and fulfillment costs | (5,909) | (4,569) |
Ending balance | $ 66,595 | $ 51,775 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities - Balance Sheet Location (Details) - Foreign currency forward contracts designated as cash flow hedges - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Derivative [Line Items] | ||
Reclassified to earnings, net | $ 200,000 | |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Term of contract | 13 months | |
Notional amount | $ 19,900,000 | $ 12,500,000 |
Debt - Details of Notes (Detail
Debt - Details of Notes (Details) - Convertible Debt convertible_unit in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2021$ / shares | May 31, 2020 | Aug. 31, 2018 | Mar. 31, 2021convertible_unit$ / shares | |
2023 Notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 1.25% | 1.25% | ||
Effective Interest Rate | 1.86% | 1.86% | ||
Initial Conversion Rate per $1,000 Principal | 0.0240 | |||
Initial Conversion Price (in dollars per share) | $ / shares | $ 41,590 | $ 41,590 | ||
Number of shares (in millions) (in shares) | convertible_unit | 1.1 | |||
2025 Notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 2.25% | 2.25% | ||
Effective Interest Rate | 2.88% | 2.88% | ||
Initial Conversion Rate per $1,000 Principal | 0.0163875 | |||
Initial Conversion Price (in dollars per share) | $ / shares | $ 61,020 | $ 61,020 | ||
Number of shares (in millions) (in shares) | convertible_unit | 3.8 | |||
2027 Notes | ||||
Debt Instrument [Line Items] | ||||
Interest Rate | 0.25% | 0.25% | ||
Effective Interest Rate | 0.67% | 0.67% | ||
Initial Conversion Rate per $1,000 Principal | 0.0096734 | |||
Initial Conversion Price (in dollars per share) | $ / shares | $ 103,380 | $ 103,380 | ||
Number of shares (in millions) (in shares) | convertible_unit | 5.8 |
Debt - Additional Information (
Debt - Additional Information (Details) $ / shares in Units, shares in Millions | Mar. 31, 2021USD ($)day | Mar. 16, 2021USD ($)shares | May 01, 2020USD ($)$ / shares | Apr. 30, 2020USD ($) | Aug. 31, 2018USD ($)day$ / shares | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | May 07, 2021USD ($) | Mar. 30, 2021USD ($) | Dec. 31, 2020USD ($) | May 31, 2020USD ($) |
Debt Instrument [Line Items] | |||||||||||
Proceeds from convertible debt | $ 587,100,000 | $ 0 | |||||||||
Induced conversion expense | 2,740,000 | 0 | |||||||||
Letter of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Long-term line of credit | $ 7,600,000 | 7,600,000 | |||||||||
Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Induced conversion expense | 2,740,000 | 0 | |||||||||
Debt issuance costs, net | $ 21,644,000 | 21,644,000 | $ 8,059,000 | ||||||||
Convertible Debt | Debt Covenant One | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Threshold trading days | day | 20 | 20 | |||||||||
Threshold consecutive trading days | day | 30 | 30 | |||||||||
Threshold percentage of stock price trigger | 130.00% | 130.00% | |||||||||
Convertible Debt | Debt Covenant Two | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Threshold trading days | day | 5 | ||||||||||
Threshold consecutive trading days | day | 10 | ||||||||||
Threshold percentage of stock price trigger | 98.00% | ||||||||||
Convertible Debt | Debt Covenant Three | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Threshold percentage of stock price trigger | 130.00% | ||||||||||
Redemption price, percentage | 100.00% | ||||||||||
2023 Notes | Call Option | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Strike price (in dollars per share) | $ / shares | $ 41.59 | ||||||||||
Cap price (in dollars per share) | $ / shares | $ 63.98 | ||||||||||
Equity component of convertible debt, subsequent adjustments | $ 26,900,000 | ||||||||||
2023 Notes | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | 230,000,000 | ||||||||||
Proceeds from convertible debt | 223,100,000 | ||||||||||
Shares issued upon conversion (in shares) | shares | 2.2 | ||||||||||
Repurchased face amount | $ 182,600,000 | ||||||||||
Induced conversion expense | 2,740,000 | $ 0 | |||||||||
Carrying amount of equity component | 53,800,000 | ||||||||||
Debt issuance costs, net | $ 778,000 | 6,900,000 | 778,000 | 3,009,000 | |||||||
Liability component | 5,300,000 | ||||||||||
Issuance costs of equity component | $ 1,600,000 | ||||||||||
2023 Notes | Convertible Debt | Debt Covenant Three | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Threshold trading days | day | 20 | ||||||||||
Threshold consecutive trading days | day | 30 | ||||||||||
Redemption price, percentage | 100.00% | ||||||||||
2025 Notes | Call Option | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Strike price (in dollars per share) | $ / shares | 61.02 | ||||||||||
Cap price (in dollars per share) | $ / shares | $ 93.88 | ||||||||||
Equity component of convertible debt, subsequent adjustments | $ 27,300,000 | ||||||||||
2025 Notes | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | $ 230,000,000 | ||||||||||
Proceeds from convertible debt | $ 222,800,000 | ||||||||||
Induced conversion expense | 0 | ||||||||||
Carrying amount of equity component | 48,300,000 | ||||||||||
Debt issuance costs, net | 5,957,000 | 7,200,000 | 5,957,000 | $ 5,050,000 | |||||||
Liability component | 5,700,000 | ||||||||||
Issuance costs of equity component | $ 1,500,000 | ||||||||||
2027 Notes | Call Option | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Strike price (in dollars per share) | $ / shares | $ 103.38 | ||||||||||
Cap price (in dollars per share) | $ / shares | $ 159.04 | ||||||||||
Equity component of convertible debt, subsequent adjustments | $ 76,000,000 | ||||||||||
2027 Notes | Convertible Debt | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | 600,000,000 | 600,000,000 | $ 600,000,000 | ||||||||
Proceeds from convertible debt | $ 585,000,000 | ||||||||||
Induced conversion expense | 0 | ||||||||||
Debt issuance costs, net | $ 14,909,000 | $ 14,909,000 | $ 15,000,000 | ||||||||
Credit Agreement | London Interbank Offered Rate (LIBOR) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 2.50% | ||||||||||
Credit Agreement | Base Rate | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 0.00% | ||||||||||
Credit Agreement | Minimum | London Interbank Offered Rate (LIBOR) | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt instrument, interest rate floor | 1.00% | ||||||||||
Credit Agreement | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Current borrowing capacity | $ 30,000,000 | ||||||||||
Credit sublimit | 15,000,000 | ||||||||||
Fee amount | $ 400,000 | ||||||||||
Commitment fee percentage | 0.20% | ||||||||||
Credit Agreement | Revolving Credit Facility | Subsequent Event [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Current borrowing capacity | $ 50,000,000 | ||||||||||
Credit Agreement | Letter of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Maximum borrowing capacity | $ 70,000,000 |
Debt - Adoption of ASU (Details
Debt - Adoption of ASU (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||||
Convertible senior notes, net | $ 855,709 | $ 378,586 | |||
Total liabilities | 1,303,918 | 841,586 | |||
Additional paid-in-capital | 542,415 | 692,603 | |||
Accumulated deficit | (619,539) | (617,279) | |||
Total stockholders' equity | (81,225) | 71,536 | $ 76,300 | $ 83,168 | |
Total liabilities and stockholders' equity | $ 1,222,693 | 913,122 | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||
Debt Instrument [Line Items] | |||||
Total stockholders' equity | $ (71,441) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | |||||
Debt Instrument [Line Items] | |||||
Convertible senior notes, net | $ 71,441 | ||||
Total liabilities | 71,441 | ||||
Additional paid-in-capital | (99,026) | ||||
Accumulated deficit | 27,585 | ||||
Total stockholders' equity | (71,441) | ||||
Total liabilities and stockholders' equity | 0 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06, Transfer Equity Component of the Debt to Liabilities | |||||
Debt Instrument [Line Items] | |||||
Convertible senior notes, net | 102,166 | ||||
Total liabilities | 102,166 | ||||
Additional paid-in-capital | (102,166) | ||||
Accumulated deficit | 0 | ||||
Total stockholders' equity | (102,166) | ||||
Total liabilities and stockholders' equity | 0 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06, Equity Component of Debt Issuance Costs | |||||
Debt Instrument [Line Items] | |||||
Convertible senior notes, net | (3,140) | ||||
Total liabilities | (3,140) | ||||
Additional paid-in-capital | 3,140 | ||||
Accumulated deficit | 0 | ||||
Total stockholders' equity | 3,140 | ||||
Total liabilities and stockholders' equity | 0 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06, Reverse Debt Discount Amortization | |||||
Debt Instrument [Line Items] | |||||
Convertible senior notes, net | (28,811) | ||||
Total liabilities | (28,811) | ||||
Additional paid-in-capital | 0 | ||||
Accumulated deficit | 28,811 | ||||
Total stockholders' equity | 28,811 | ||||
Total liabilities and stockholders' equity | 0 | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06, Record Debt Issuance Costs Amortization | |||||
Debt Instrument [Line Items] | |||||
Convertible senior notes, net | 1,226 | ||||
Total liabilities | 1,226 | ||||
Additional paid-in-capital | 0 | ||||
Accumulated deficit | (1,226) | ||||
Total stockholders' equity | (1,226) | ||||
Total liabilities and stockholders' equity | 0 | ||||
Cumulative Effect, Period of Adoption, Adjusted Balance | Accounting Standards Update 2020-06 | |||||
Debt Instrument [Line Items] | |||||
Convertible senior notes, net | 450,027 | ||||
Total liabilities | 913,027 | ||||
Additional paid-in-capital | 593,577 | ||||
Accumulated deficit | (589,694) | ||||
Total stockholders' equity | 95 | ||||
Total liabilities and stockholders' equity | $ 913,122 |
Debt - Carrying Amount (Details
Debt - Carrying Amount (Details) - Convertible Debt - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 30, 2021 | Dec. 31, 2020 | May 01, 2020 | Aug. 31, 2018 |
Debt Instrument [Line Items] | |||||
Principal | $ 877,353 | $ 460,000 | |||
Unamortized debt discount | 0 | (73,355) | |||
Unamortized debt issuance costs | (21,644) | (8,059) | |||
Net carrying amount | 855,709 | 378,586 | |||
2023 Notes | |||||
Debt Instrument [Line Items] | |||||
Principal | 47,353 | 230,000 | |||
Unamortized debt discount | 0 | (30,425) | |||
Unamortized debt issuance costs | (778) | (3,009) | $ (6,900) | ||
Net carrying amount | 46,575 | 196,566 | |||
2025 Notes | |||||
Debt Instrument [Line Items] | |||||
Principal | 230,000 | 230,000 | |||
Unamortized debt discount | 0 | (42,930) | |||
Unamortized debt issuance costs | (5,957) | (5,050) | $ (7,200) | ||
Net carrying amount | 224,043 | $ 182,020 | |||
2027 Notes | |||||
Debt Instrument [Line Items] | |||||
Principal | 600,000 | ||||
Unamortized debt discount | 0 | ||||
Unamortized debt issuance costs | (14,909) | $ (15,000) | |||
Net carrying amount | $ 585,091 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Debt Instrument [Line Items] | ||
Induced conversion expense | $ 2,740 | $ 0 |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 1,902 | 719 |
Amortization of debt discount | 0 | 2,496 |
Amortization of debt issuance costs | 620 | 247 |
Induced conversion expense | 2,740 | 0 |
Total interest expense | 5,262 | 3,462 |
Convertible Debt | 2023 Notes | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 558 | 719 |
Amortization of debt discount | 0 | 2,496 |
Amortization of debt issuance costs | 221 | 247 |
Induced conversion expense | 2,740 | 0 |
Total interest expense | 3,519 | $ 3,462 |
Convertible Debt | 2025 Notes | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 1,294 | |
Amortization of debt discount | 0 | |
Amortization of debt issuance costs | 319 | |
Induced conversion expense | 0 | |
Total interest expense | 1,613 | |
Convertible Debt | 2027 Notes | ||
Debt Instrument [Line Items] | ||
Contractual interest expense | 50 | |
Amortization of debt discount | 0 | |
Amortization of debt issuance costs | 80 | |
Induced conversion expense | 0 | |
Total interest expense | $ 130 |
Leases - Additional Information
Leases - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Lease term | 7 years 8 months 12 days | 7 years 10 months 24 days |
Renewal term | 5 years | |
Termination period | 6 years 6 months | |
Office Building | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 9 years 8 months 12 days |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 3,766 | $ 3,371 |
Short-term lease costs | 165 | 290 |
Variable lease costs | 1,463 | 922 |
Total lease costs | $ 5,394 | $ 4,583 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Balance Sheet Information Related to Operating Leases (Details) | Mar. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Weighted average remaining lease term (in years) - operating leases | 7 years 8 months 12 days | 7 years 10 months 24 days |
Weighted average discount rate - operating leases | 7.70% | 7.70% |
Leases - Summary of Supplemen_2
Leases - Summary of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 4,147 | $ 3,836 |
ROU assets obtained in exchange for new lease obligations | $ 152 | $ 3,990 |
Leases - Summary of Maturities
Leases - Summary of Maturities of Operating Lease Liabilities (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
2021 (for the remaining nine months) | $ 11,022 |
2022 | 13,880 |
2023 | 14,167 |
2024 | 13,461 |
2025 | 12,543 |
2026 and thereafter | 41,983 |
Total lease payments | 107,056 |
Less: imputed interest | (24,329) |
Total | $ 82,727 |
Stock-Based Compensation Expe_3
Stock-Based Compensation Expense - Schedule of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | $ 20,862 | $ 13,347 |
Cost of Revenue | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | 1,554 | 931 |
Research and Development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | 7,815 | 4,645 |
Sales and Marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | 5,746 | 3,678 |
General and Administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total stock-based compensation | $ 5,747 | $ 4,093 |
Stock-Based Compensation Expe_4
Stock-Based Compensation Expense - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 15, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
Share-based payment arrangement, expense | $ 20,862 | $ 13,347 | |
Purchase price of common stock by employees | 85.00% | ||
Issuance of common stock under employee stock purchase plan | $ 4,467 | 3,346 | |
2020 Bonus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based payment arrangement, expense | $ 1,000 | $ 400 | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock issued to employees (in shares) | 147,837 | ||
Issuance of common stock under employee stock purchase plan | $ 4,500 | ||
Employee Stock Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee withholding percentage | 15.00% | ||
Share issued, price per share (in dollars per share) | $ 52.60 | ||
Employee Stock Purchase Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share issued, price per share (in dollars per share) | $ 28.39 | ||
Restricted Stock and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 228,800 | ||
Unrecognized compensation expense, recognition period | 2 years 9 months 18 days | ||
Options to Purchase Common Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense, recognition period | 9 months 18 days | ||
Unrecognized compensation cost, stock options | $ 300 | ||
Stock options vested, fair value | $ 400 |
Stock-Based Compensation Expe_5
Stock-Based Compensation Expense - Summary of Restricted Stock and Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Shares | |
Unvested balance, Beginning balance (in shares) | shares | 2,941,914 |
Granted (in shares) | shares | 1,447,632 |
Vested (in shares) | shares | (374,579) |
Forfeited (in shares) | shares | (61,704) |
Unvested balance, Ending balance (in shares) | shares | 3,953,263 |
Weighted-Average Grant Date Fair Value | |
Unvested balance, Beginning balance (in dollars per share) | $ / shares | $ 45.86 |
Granted (in dollars per share) | $ / shares | 88.64 |
Vested (in dollars per share) | $ / shares | 33.20 |
Forfeited (in dollars per share) | $ / shares | 52.67 |
Unvested balance, Ending Balance (in dollars per share) | $ / shares | $ 62.61 |
Stock-Based Compensation Expe_6
Stock-Based Compensation Expense - Summary of Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($)$ / sharesshares | |
Shares | |
Outstanding, Beginning balance (in shares) | shares | 1,933,013 |
Granted (in shares) | shares | 0 |
Exercised (in shares) | shares | (170,006) |
Forfeited/canceled (in shares) | shares | 0 |
Outstanding, Ending balance (in shares) | shares | 1,763,007 |
Vested and exercisable (in shares) | shares | 1,736,419 |
Weighted Average Exercise Price | |
Outstanding, Beginning balance (in dollars per share) | $ / shares | $ 10.07 |
Granted (in dollars per share) | $ / shares | 0 |
Exercised (in dollars per share) | $ / shares | 8.34 |
Forfeited/canceled (in dollars per share) | $ / shares | 0 |
Outstanding, Ending balance (in dollars per share) | $ / shares | 10.24 |
Vested and exercisable (in dollars per share) | $ / shares | $ 10.04 |
Weighted Average Remaining Contractual Life (in years) | |
Outstanding | 3 years 10 months 24 days |
Vested and exercisable | 3 years 9 months 18 days |
Aggregate Intrinsic Value | |
Exercised | $ | $ 12,550 |
Outstanding | $ | 113,492 |
Vested and exercisable | $ | $ 112,127 |
Net Loss per Share - Summary of
Net Loss per Share - Summary of Basic and Diluted Net Loss Per Share of Common Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net loss | $ (29,845) | $ (22,924) |
Denominator: | ||
Weighted-average common shares outstanding, basic and diluted (in shares) | 52,904,881 | 50,127,310 |
Net loss per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.56) | $ (0.46) |
Net Loss per Share - Summary _2
Net Loss per Share - Summary of Antidilutive Securities Excluded From Computation Diluted Weighted Average Shares Outstanding (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 16,435,812 | 11,825,816 |
Options to Purchase Common Stock | ||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 1,763,007 | 2,568,776 |
Unvested Restricted Stock Units | ||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 3,953,263 | 3,715,342 |
Employee Stock Purchase Plan | ||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 7,889 | 11,522 |
Convertible Debt Securities | ||
Schedule Of Calculation Of Numerator And Denominator In Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 10,711,653 | 5,530,176 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | 1 Months Ended |
Oct. 31, 2018patent | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of patents allegedly infringed | 7 |
Segment Information and Infor_3
Segment Information and Information about Geographic Areas - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2021segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
Segment Information and Infor_4
Segment Information and Information about Geographic Areas - Net Revenues of Customer by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items] | ||
Net revenues, Total | $ 117,451 | $ 94,340 |
North America | ||
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items] | ||
Net revenues, Total | 92,509 | 75,837 |
Other | ||
Entity Wide Portfolio Carrying Amount, Major Customer [Line Items] | ||
Net revenues, Total | $ 24,942 | $ 18,503 |
Segment Information and Infor_5
Segment Information and Information about Geographic Areas - Property and Equipment, Net By Geographic Area (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net, Total | $ 51,141 | $ 53,114 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net, Total | 38,585 | 40,101 |
Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Property and equipment, net, Total | $ 12,556 | $ 13,013 |
Uncategorized Items - rp-202103
Label | Element | Value |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 0 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 36,000 |