Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 02, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Interactive Data Current | Yes | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | DDOG | |
Entity Registrant Name | Datadog, Inc. | |
Entity Central Index Key | 0001561550 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity File Number | 001-39051 | |
Entity Tax Identification Number | 27-2825503 | |
Entity Address, Address Line One | 620 8th Avenue | |
Entity Address, Address Line Two | 45th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10018 | |
City Area Code | 866 | |
Local Phone Number | 329-4466 | |
Title of 12(b) Security | Class A common stock, par value $0.00001 per share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | DE | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 208,048,784 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 96,483,565 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 198,523 | $ 597,297 |
Marketable securities | 1,296,261 | 176,674 |
Accounts receivable, net of allowance for credit losses of $2,589 and $817 as of September 30, 2020 and December 31, 2019, respectively | 120,992 | 102,394 |
Deferred contract costs, current | 11,544 | 8,346 |
Prepaid expenses and other current assets | 25,655 | 19,231 |
Total current assets | 1,652,975 | 903,942 |
Property and equipment, net | 42,059 | 32,749 |
Operating lease assets | 55,365 | 53,002 |
Goodwill | 17,211 | 9,058 |
Intangible assets, net | 2,327 | 1,435 |
Deferred contract costs, non-current | 22,667 | 17,409 |
Restricted cash | 3,607 | 3,456 |
Other assets | 18,073 | 16,990 |
TOTAL ASSETS | 1,814,284 | 1,038,041 |
CURRENT LIABILITIES: | ||
Accounts payable | 21,199 | 15,429 |
Accrued expenses and other current liabilities | 54,383 | 38,746 |
Operating lease liabilities, current | 15,058 | 11,916 |
Deferred revenue, current | 164,010 | 134,148 |
Total current liabilities | 254,650 | 200,239 |
Operating lease liabilities, non-current | 49,675 | 48,510 |
Convertible senior notes, net | 567,683 | |
Deferred revenue, non-current | 2,444 | 4,340 |
Other liabilities | 3,644 | 2,611 |
Total liabilities | 878,096 | 255,700 |
COMMITMENTS AND CONTINGENCIES (NOTE 8) | ||
STOCKHOLDERS' EQUITY: | ||
Additional paid-in capital | 1,065,543 | 905,821 |
Accumulated other comprehensive income | 2,645 | 133 |
Accumulated deficit | (132,003) | (123,616) |
Total stockholders’ equity | 936,188 | 782,341 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,814,284 | 1,038,041 |
Class A Common Stock | ||
STOCKHOLDERS' EQUITY: | ||
Common stock, value | 2 | 1 |
Class B Common Stock | ||
STOCKHOLDERS' EQUITY: | ||
Common stock, value | $ 1 | $ 2 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts receivable, net of allowance for doubtful accounts | $ 2,589 | $ 817 |
Class A Common Stock | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 |
Common stock, shares issued | 206,054,826 | 64,308,498 |
Common stock, shares outstanding | 206,054,826 | 64,308,498 |
Class B Common Stock | ||
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 310,000,000 | 310,000,000 |
Common stock, shares issued | 98,337,015 | 232,078,452 |
Common stock, shares outstanding | 98,337,015 | 232,078,452 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Revenue | $ 154,675 | $ 95,864 | $ 425,935 | $ 249,136 |
Cost of revenue | 33,984 | 23,297 | 89,340 | 63,225 |
Gross profit | 120,691 | 72,567 | 336,595 | 185,911 |
Operating expenses: | ||||
Research and development | 56,440 | 28,684 | 142,928 | 75,531 |
Sales and marketing | 57,142 | 38,836 | 153,626 | 105,061 |
General and administrative | 16,376 | 9,265 | 44,876 | 23,193 |
Total operating expenses | 129,958 | 76,785 | 341,430 | 203,785 |
Operating loss | (9,267) | (4,218) | (4,835) | (17,874) |
Other (expense) income: | ||||
Interest expense | (12,423) | (17,424) | ||
Interest income and other income, net | 7,135 | 90 | 15,204 | 646 |
Other (expense) income, net | (5,288) | 90 | (2,220) | 646 |
Loss before provision for income taxes | (14,555) | (4,128) | (7,055) | (17,228) |
Provision for income taxes | (595) | (33) | (1,332) | (373) |
Net loss | (15,150) | (4,161) | (8,387) | (17,601) |
Net loss attributable to common stockholders | $ (15,150) | $ (4,161) | $ (8,387) | $ (17,601) |
Basic and diluted net loss per share | $ (0.05) | $ (0.04) | $ (0.03) | $ (0.20) |
Weighted average shares used in calculating basic and diluted net loss per share | 302,554 | 103,876 | 299,105 | 87,758 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (15,150) | $ (4,161) | $ (8,387) | $ (17,601) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 536 | (45) | 446 | (85) |
Unrealized gain on available-for-sale marketable securities | 44 | 2,066 | ||
Other comprehensive income (loss): | 580 | (45) | 2,512 | (85) |
Comprehensive loss | $ (14,570) | $ (4,206) | $ (5,875) | $ (17,686) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) $ in Thousands | Total | Initial Public Offering | Third-Party Tender Offer | Convertible Preferred Stock | Convertible Preferred StockInitial Public Offering | Convertible Preferred StockThird-Party Tender Offer | Class A and Class B Common Stock | Class A and Class B Common StockInitial Public Offering | Common Stock | Common StockThird-Party Tender Offer | Additional Paid-in Capital | Additional Paid-in CapitalInitial Public Offering | Additional Paid-in CapitalThird-Party Tender Offer | Accumulated Other Comprehensive (Loss) Income | Accumulated Deficit |
Beginning balance at Dec. 31, 2018 | $ (76,041) | $ 30,834 | $ 31 | $ (106,906) | |||||||||||
Beginning balance, shares at Dec. 31, 2018 | 78,180,606 | ||||||||||||||
Convertible preferred stock, beginning balance at Dec. 31, 2018 | $ 140,805 | ||||||||||||||
Convertible preferred stock, beginning balance, shares at Dec. 31, 2018 | 179,814,912 | ||||||||||||||
Issuance of common stock upon exercise of stock options | 6,576 | 6,576 | |||||||||||||
Issuance of common stock upon exercise of stock options, shares | 10,117,557 | ||||||||||||||
Vesting of early exercised stock options | 1,490 | 1,490 | |||||||||||||
Stock-based compensation | 10,153 | 10,153 | |||||||||||||
Issuance of class A common stock in connection with initial public offering, net of underwriting discounts and issuance costs | 705,938 | $ 1 | 705,937 | ||||||||||||
Issuance of class A common stock in connection with initial public offering, net of underwriting discounts and issuance costs, shares | 27,600,000 | ||||||||||||||
Conversion of convertible preferred stock to common stock | $ 140,752 | $ 53 | $ (140,752) | $ (53) | $ 2 | $ 140,750 | $ 53 | ||||||||
Conversion of convertible preferred stock to common stock, shares | (179,011,431) | (803,481) | 179,011,431 | 803,481 | |||||||||||
Change in accumulated other comprehensive income (loss) | (85) | (85) | |||||||||||||
Reclassification of common stock to class A and class B common stock | 89,101,644 | (89,101,644) | |||||||||||||
Net loss | (17,601) | (17,601) | |||||||||||||
Ending balance at Sep. 30, 2019 | 771,235 | $ 3 | 895,793 | (54) | (124,507) | ||||||||||
Ending balance, shares at Sep. 30, 2019 | 295,713,075 | ||||||||||||||
Beginning balance at Jun. 30, 2019 | (79,223) | 41,132 | (9) | (120,346) | |||||||||||
Beginning balance, shares at Jun. 30, 2019 | 86,823,234 | ||||||||||||||
Convertible preferred stock, beginning balance at Jun. 30, 2019 | $ 140,752 | ||||||||||||||
Convertible preferred stock, beginning balance, shares at Jun. 30, 2019 | 179,011,431 | ||||||||||||||
Issuance of common stock upon exercise of stock options | 2,106 | 2,106 | |||||||||||||
Issuance of common stock upon exercise of stock options, shares | 2,278,410 | ||||||||||||||
Vesting of early exercised stock options | 1,177 | 1,177 | |||||||||||||
Stock-based compensation | 4,691 | 4,691 | |||||||||||||
Issuance of class A common stock in connection with initial public offering, net of underwriting discounts and issuance costs | 705,938 | $ 1 | 705,937 | ||||||||||||
Issuance of class A common stock in connection with initial public offering, net of underwriting discounts and issuance costs, shares | 27,600,000 | ||||||||||||||
Conversion of convertible preferred stock to common stock | $ 140,752 | $ (140,752) | $ 2 | $ 140,750 | |||||||||||
Conversion of convertible preferred stock to common stock, shares | (179,011,431) | 179,011,431 | |||||||||||||
Change in accumulated other comprehensive income (loss) | (45) | (45) | |||||||||||||
Reclassification of common stock to class A and class B common stock | 89,101,644 | (89,101,644) | |||||||||||||
Net loss | (4,161) | (4,161) | |||||||||||||
Ending balance at Sep. 30, 2019 | 771,235 | $ 3 | 895,793 | (54) | (124,507) | ||||||||||
Ending balance, shares at Sep. 30, 2019 | 295,713,075 | ||||||||||||||
Beginning balance at Dec. 31, 2019 | 782,341 | $ 3 | 905,821 | 133 | (123,616) | ||||||||||
Beginning balance, shares at Dec. 31, 2019 | 296,386,950 | ||||||||||||||
Issuance of common stock upon exercise of stock options | $ 12,391 | 12,391 | |||||||||||||
Issuance of common stock upon exercise of stock options, shares | 7,555,561 | 7,555,561 | |||||||||||||
Vesting of early exercised stock options | $ 883 | 883 | |||||||||||||
Vesting of restricted stock units, shares | 8,234 | ||||||||||||||
Issuance of restricted shares of common stock | 5,169 | 5,169 | |||||||||||||
Issuance of restricted shares of common stock, shares | 120,992 | ||||||||||||||
Issuance of common stock under the employee stock purchase plan, net of shares withheld for taxes | 6,703 | 6,703 | |||||||||||||
Issuance of common stock under the employee stock purchase plan, net of shares withheld for taxes, shares | 320,104 | ||||||||||||||
Stock-based compensation | 51,131 | 51,131 | |||||||||||||
Equity component of 2025 Convertible Senior Notes, net | 173,070 | 173,070 | |||||||||||||
Purchases of capped calls related to 2025 Convertible Senior Notes | (89,625) | (89,625) | |||||||||||||
Change in accumulated other comprehensive income (loss) | 2,512 | 2,512 | |||||||||||||
Net loss | (8,387) | (8,387) | |||||||||||||
Ending balance at Sep. 30, 2020 | 936,188 | $ 3 | 1,065,543 | 2,645 | (132,003) | ||||||||||
Ending balance, shares at Sep. 30, 2020 | 304,391,841 | ||||||||||||||
Beginning balance at Jun. 30, 2020 | $ 912,871 | $ 3 | 1,027,656 | 2,065 | (116,853) | ||||||||||
Beginning balance, shares at Jun. 30, 2020 | 302,254,533 | ||||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201912Member | ||||||||||||||
Issuance of common stock upon exercise of stock options | $ 5,156 | 5,156 | |||||||||||||
Issuance of common stock upon exercise of stock options, shares | 2,132,732 | ||||||||||||||
Vesting of early exercised stock options | 295 | 295 | |||||||||||||
Vesting of restricted stock units, shares | 4,576 | ||||||||||||||
Stock-based compensation | 21,936 | 21,936 | |||||||||||||
Reversal of prior income tax associated with the issuance of the 2025 convertible senior notes | 10,500 | 10,500 | |||||||||||||
Change in accumulated other comprehensive income (loss) | 580 | 580 | |||||||||||||
Net loss | (15,150) | (15,150) | |||||||||||||
Ending balance at Sep. 30, 2020 | $ 936,188 | $ 3 | $ 1,065,543 | $ 2,645 | $ (132,003) | ||||||||||
Ending balance, shares at Sep. 30, 2020 | 304,391,841 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (8,387) | $ (17,601) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 11,367 | 8,776 |
Amortization of discounts or premiums on marketable securities | 5,344 | |
Amortization of debt discount and issuance costs | 10,546 | |
Amortization of deferred contract costs | 7,348 | 3,688 |
Stock-based compensation, net of amounts capitalized | 49,610 | 10,016 |
Non-cash lease expense | 10,004 | 8,403 |
Allowance for credit losses on accounts receivable | 2,656 | 835 |
Loss on disposal of property and equipment | 4 | 442 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (21,253) | (32,224) |
Deferred contract costs | (15,804) | (10,894) |
Prepaid expenses and other current assets | (6,821) | (9,476) |
Other assets | (605) | (8,480) |
Accounts payable | 6,406 | 4,213 |
Accrued expenses and other liabilities | 6,884 | (1,990) |
Deferred revenue | 27,964 | 51,096 |
Net cash provided by operating activities | 85,263 | 6,804 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of marketable securities | (1,477,063) | |
Maturities of marketable securities | 268,500 | |
Proceeds from sale of marketable securities | 85,700 | |
Purchases of property and equipment | (4,336) | (9,813) |
Capitalized software development costs | (14,371) | (7,058) |
Cash paid for acquisition of businesses; net of cash acquired | (2,363) | |
Net cash used in investing activities | (1,143,933) | (16,871) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 12,354 | 7,306 |
Proceeds from initial public offering, net of underwriting discounts and commissions and other offering cost | (421) | 708,659 |
Proceeds from issuance of common stock under the employee stock purchase plan | 7,680 | |
Employee payroll taxes paid related to net share settlement under the employee stock purchase plan | (977) | |
Proceeds from issuance of convertible senior notes, net of issuance costs | 730,207 | |
Purchase of capped call related to convertible senior notes | (89,625) | |
Net cash provided by financing activities | 659,218 | 715,965 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 393 | 49 |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (399,059) | 705,947 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 601,189 | 64,980 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period | 202,130 | 770,927 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 186 | 97 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Accrued property and equipment purchases | 315 | 1,574 |
Stock-based compensation included in capitalized software development costs | 1,521 | 137 |
Vesting of early exercised options | 883 | 1,490 |
Costs related to initial public offering included in accounts payable and accrued liabilities | 2,721 | |
Issuance of restricted shares of common stock for the acquisition of businesses | 5,169 | |
Acquisition holdback | 1,500 | |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH WITHIN THE CONDENSED CONSOLIDATED BALANCE SHEETS TO THE AMOUNTS SHOWN IN THE STATEMENTS OF CASH FLOWS ABOVE: | ||
Cash and cash equivalents | 198,523 | 760,945 |
Restricted cash – Including amounts in prepaid expense and other current assets and other assets | $ 3,607 | $ 9,982 |
Restricted Cash and Cash Equivalents, Asset, Statement of Financial Position [Extensible List] | ddog:PrepaidExpenseOtherCurrentAssetsAndOtherAssets | ddog:PrepaidExpenseOtherCurrentAssetsAndOtherAssets |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period | $ 202,130 | $ 770,927 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business Description of Business Datadog, Inc. (“Datadog” or the “Company”) was incorporated in the State of Delaware on June 4, 2010. The Company is the monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. The Company’s SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, and security monitoring to provide unified, real-time observability of its customers’ entire technology stack. The Company is headquartered in New York City and has various other global office locations. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | 2. Basis of Presentation and Summary of Significant Accounting Policies Unaudited Interim Condensed Consolidated Financial Information The unaudited condensed consolidated financial statements include the accounts of Datadog, Inc. and its wholly-owned subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and following the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2020 or for any other interim period or for any other future year. The accompanying unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the SEC on February 25, 2020 (the “Annual Report”). Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP. Principles of Consolidation The condensed consolidated financial statements include the accounts of Datadog, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Stock Split On September 6, 2019, the Board and stockholders approved an amended and restated certificate of incorporation of the Company effecting a 3-for-1 stock split of the Company’s issued and outstanding shares of common stock and convertible preferred stock, and an increase to the authorized shares of the Company’s common stock and convertible preferred stock to 380,000,000 shares and 179,814,912 shares, respectively. The split was effected on September 6, 2019 and without any change in the par value per share. All information related to the Company’s common stock, convertible preferred stock and stock awards has been retroactively adjusted to give effect to the 3-for-1 stock split on September 6, 2019. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Such estimates include the fair value of marketable securities, the allowance for credit losses, the fair value of acquired assets and assumed liabilities from business combinations, useful lives of property, equipment, software, and finite lived intangibles, stock-based compensation including the determination of the fair value of the Company’s stock prior to its initial public offering (“IPO”), fair value of common stock and redeemable convertible preferred stock prior to the IPO, valuation of long-lived assets and their recoverability, including goodwill, estimated expected period of benefit for deferred contract costs, the incremental borrowing rate for operating leases, fair value of the liability component of the convertible debt, realization of deferred tax assets and uncertain tax positions, revenue recognition and the allocation of overhead costs between cost of revenue and operating expenses. The Company bases its estimates on historical experience and also on assumptions that management considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could materially differ from these estimates. Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Internal-Use Software In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes Accounting Pronouncements Not Yet Adopted In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion Options (“Subtopic 470-20”) and Derivatives and Hedging—Contracts in Entity’s Own Equity |
Marketable Securities
Marketable Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Marketable Securities | 3. Marketable Securities The following is a summary of available-for-sale marketable securities, excluding those securities classified within cash and cash equivalents on the condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Amortized Cost Unrealized Gain Unrealized Losses Fair Value Commercial debt securities $ 965,398 $ 1,784 $ (154 ) $ 967,028 Certificates of deposit 34,225 37 — 34,262 U.S. government treasury securities 169,306 427 (2 ) 169,731 Commercial paper 125,218 30 (8 ) 125,240 Marketable securities $ 1,294,147 $ 2,278 $ (164 ) $ 1,296,261 December 31, 2019 Amortized Cost Unrealized Gain Unrealized Losses Fair Value Commercial debt securities $ 80,376 $ 46 $ (5 ) $ 80,417 U.S. government treasury securities 72,467 10 (4 ) 72,473 Commercial paper 23,784 — — 23,784 Marketable securities $ 176,627 $ 56 $ (9 ) $ 176,674 As of September Due within one year $ 1,074,047 Due in one year through five years 222,214 Total $ 1,296,261 The Company does not believe that any unrealized losses are attributable to credit-related factors based on its evaluation of available evidence. To determine whether a decline in value is related to credit loss, the Company evaluates, among other factors: the extent to which the fair value is less than the amortized cost basis, changes to the rating of the security by a rating agency and any adverse conditions specifically related to an issuer of a security or its industry. Unrealized gain and losses on marketable securities are presented net of tax. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The following tables present information about the Company’s financial assets and liabilities that have been measured at fair value on a recurring basis as of Sep Fair Value Measurement as of September 30, 2020 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 159,536 $ — $ — $ 159,536 Commercial paper — 10,500 — 10,500 Corporate debt securities — 10,601 — 10,601 Marketable Securities: Corporate debt securities — 967,028 — 967,028 Certificates of deposit — 34,261 — 34,261 U.S. government treasury securities — 169,731 — 169,731 Commercial paper — 125,240 — 125,240 Total financial assets $ 159,536 $ 1,317,361 $ — $ 1,476,897 Fair Value Measurement as of December 31, 2019 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 588,762 $ — $ — $ 588,762 Marketable Securities: Corporate debt securities — 80,417 — 80,417 U.S. government treasury securities — 72,473 — 72,473 Commercial paper — 23,784 — 23,784 Total financial assets $ 588,762 $ 176,674 $ — $ 765,436 The Company classifies its highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its commercial paper, corporate debt securities, certificates of deposit, and U.S. government treasury securities within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security which may not be actively traded. In addition to its cash equivalents and marketable securities, the Company measures the fair value of its outstanding convertible senior notes on a quarterly basis for disclosure purposes. The Company considers the fair value of the convertible senior notes to be a Level 2 measurement due to limited trading activity of the convertible senior notes. Refer to Note 7, Convertible Senior Notes |
Property and Equipment, Net
Property and Equipment, Net | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 5. Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): September 30, 2020 December 31, 2019 Computers and equipment $ 10,544 $ 7,536 Furniture and fixtures 5,090 4,804 Leasehold improvements 17,510 16,517 Capitalized software development costs 40,522 24,630 Total property and equipment $ 73,666 $ 53,487 Less: accumulated depreciation and amortization (31,607 ) (20,738 ) Total property and equipment, net $ 42,059 $ 32,749 The Company capitalizes costs related to the development of computer software for internal use and is included in capitalized software development costs within property and equipment, net. Depreciation and amortization expense was approximately $3.7 million and $10.7 million for the three and nine months ended September 30, 2020, respectively. Depreciation and amortization expense was approximately $3.8 million and $8.3 million for the three and nine months ended September 30, 2019, respectively. |
Acquisition, Intangible Assets
Acquisition, Intangible Assets and Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisition, Intangible Assets and Goodwill | 6. Acquisition, Intangible Assets and Goodwill 2020 Acquisition During the nine months ended September 30, 2020, we completed an acquisition with the purchase price in cash and stock. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations Intangible Assets Intangible assets, net consisted of the following (in thousands): September 30, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortization Period Developed technology $ 3,291 $ (964 ) $ 2,327 2-3 years December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortization Period Developed technology $ 3,046 $ (1,611 ) $ 1,435 2-3 years Intangible amortization expense was approximately $0.3 million and $0.2 million for the three months ended September 30, 2020 and 2019, respectively, and $0.7 million and $0.5 million for the nine months ended September 30, 2020 and 2019, respectively. Amortization of developed technology is included in cost of revenue on the Company’s condensed consolidated statement of operations. As of September 30, 2020, future amortization expense by year is expected to be as follows (in thousands): Amount Remainder of 2020 $ 273 2021 1,027 2022 774 2023 253 Total $ 2,327 Goodwill The changes in the carrying amount of goodwill were as follows (in thousands): Amount Balance as of December 31, 2019 $ 9,058 Foreign currency translation adjustments 339 2020 acquisition 7,814 Balance as of September 30, 2020 $ 17,211 |
Convertible Senior Notes
Convertible Senior Notes | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | 7. Convertible Senior Notes On June 2, 2020, the Company issued $747.5 million aggregate principal amount of 0.125% convertible senior notes due 2025 (the “2025 Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (“Securities Act”). The total net proceeds from the sale of the 2025 Notes, after deducting the initial purchasers’ discounts and debt issuance costs, were approximately $730.2 million. The 2025 Notes bear interest at a rate of 0.125% per year, payable semiannually in arrears on June 15 and December 15 of each year, beginning on December 15, 2020. The 2025 Notes will mature on June 15, 2025, unless earlier converted, redeemed or repurchased. Holders may convert their notes at their option at any time prior to the close of business on the business day immediately preceding March 15, 2025 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2020 (and only during such calendar quarter), if the last reported sale price of the Company’s Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period in which the trading price per $1,000 principal amount of 2025 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate on each such trading day; (3) if the Company calls such 2025 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events, On or after March 15, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their notes, in integral multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances. During the three months ended September 30, 2020, the conditions allowing holders of the 2025 Notes to convert have not been met. The 2025 Notes were therefore not convertible during the three months ended September 30, 2020 and were classified as long-term debt on the Company’s condensed consolidated balance sheets. The Company may not redeem the 2025 Notes prior to June 20, 2023. On or after June 20, 2023, and prior to the 31st scheduled trading day immediately preceding the maturity date, the Company may redeem for cash all or any portion of the 2025 Notes, at its option, if the last reported sale price of its Class A common stock was 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 the Company provides a notice of redemption at a redemption price equal to 100% of the principal amount of the 2025 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. In accounting for the issuance of the 2025 Notes, the 2025 Notes were separated into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of similar liabilities that do not have associated convertible features. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the respective 2025 Notes. This difference represents the debt discount that is amortized to interest expense over the expected terms of the 2025 Notes using the effective interest rate method. The carrying amount of the equity component representing the conversion option was $177.2 million. The equity component was recorded in additional paid-in capital and is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the debt issuance costs of $17.3 million related to the 2025 Notes, the Company allocated the total amount incurred to the liability and equity components of the 2025 Notes in the same proportion as the allocation of the proceeds. Issuance costs attributable to the liability component were $13.2 million and will be amortized, along with the debt discount, to interest expense over the contractual term of the 2025 Notes at an effective interest rate of 5.97%. Issuance costs attributable to the equity component were $4.1 million and are netted against the equity component representing the conversion option in additional paid-in capital The net carrying amount of the liability component of the 2025 Notes was as follows (in thousands): September 30, 2020 Principal $ 747,500 Unamortized debt discount (167,240 ) Unamortized debt issuance costs (12,577 ) Net carrying amount $ 567,683 The net carrying amount of the equity component of the 2025 Notes was as follows (in thousands): September 30, 2020 Debt discount for conversion option $ 177,169 Issuance costs (4,099 ) Net carrying amount $ 173,070 As of September 30, 2020, the total estimated fair value of the 2025 Notes was approximately $994.1 million. The fair value was determined based on the closing trading price per $100 of the 2025 Notes as of the last day of trading for the period. The fair value of the 2025 Notes is primarily affected by the trading price of the Company’s Class A common stock and market interest rates. The following table sets forth the interest expense related to the 2025 Notes for each of the three and nine months ended September 30, 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2020 Contractual interest expense $ 234 $ 306 Amortization of debt discount 7,589 9,929 Amortization of issuance costs 473 617 Total $ 8,296 $ 10,852 Capped Calls In connection with the pricing of the 2025 Notes, the Company entered into privately negotiated capped call transactions with certain counterparties (“Capped Calls”). The Capped Calls each have an initial strike price of approximately $92.30 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2025 Notes. The Capped Calls have initial cap prices of $151.04 per share, subject to certain adjustments. The Capped Calls are expected to partially offset the potential dilution to the Company’s Class A common stock upon any conversion of the 2025 Notes, with such offset subject to a cap based on the cap price. The Capped Calls cover, subject to anti-dilution adjustments, approximately 8.1 million shares of the Company’s Class A common stock. For accounting purposes, the Capped Calls are separate transactions, and not part of the terms of the 2025 Notes. As these transactions meet certain accounting criteria, the Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives. The cost of $89.6 million incurred to purchase the Capped Calls was recorded as a reduction to additional paid-in capital and will not be remeasured. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Non-cancelable Material Commitments —In January 2020, the Company entered into a cloud hosting agreement for a total purchase commitment of $21.0 million payable over the three years following the date of the applicable agreement. In September 2020, the Company entered into a cloud hosting agreement for a total purchase commitment of $76.7 million payable over three years through October 2023. Non-Income Tax Matters —In January 2016, the Company recorded a $5.4 million contingent Federal payroll tax liability in conjunction with common stock repurchase transactions, as part of a capital raise, with certain of its employees. The potential payroll tax treatment of these transactions was subject to uncertainty, and the contingent payroll tax liability was deemed probable and reasonably estimable. On April 15, 2020, the period of limitations for assessing the contingent Federal payroll tax liability expired and the Company was legally released from being the primary obligor. As a result, the Company recognized a $5.6 million benefit in the condensed consolidated statement of operations during the nine months ended September 30, 2020. 401(k) Plan —The Company sponsors a 401(k) defined contribution plan covering all eligible US employees. Contributions to the 401(k) plan are discretionary. The Company did not make any matching contributions to the 401(k) plan for the three and nine months ended September 30, 2020 and 2019. Legal Matters —The Company is involved from time to time in various claims and legal actions arising in the ordinary course of business. While it is not feasible to predict or determine the ultimate outcome of these matters, the Company believes that none of its current legal proceedings will have a material adverse effect on its financial position or results of operations. Indemnification —The Company enters into indemnification provisions under some agreements with other parties in the ordinary course of business, including business partners, investors, contractors, customers, and the Company’s officers, directors and certain employees. The Company has agreed to indemnify and defend the indemnified party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party claim because of the Company’s activities or non-compliance with certain representations and warranties made by the Company. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. To date, losses recorded in the Company’s condensed consolidated statements of operations in connection with the indemnification provisions have not been material. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | 9. Leases The Company has entered into various noncancelable operating leases for its facilities expiring between 2020 and 2029. Certain lease agreements contain an option for the Company to renew a lease for a term of up to five years or an option to terminate a lease early within three years. The Company considers these options, which may be elected at the Company’s sole discretion, in determining the lease term on a lease-by-lease basis. Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The components of lease cost recognized within the Company’s condensed consolidated statements of operations were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Operating lease cost (1) $ 4,252 $ 3,885 $ 12,322 $ 9,715 Variable lease cost (2) — 126 — 136 Short-term lease cost 867 564 2,763 2,148 1) Includes non-cash lease expense of $3.4 million and $3.1 million for the three months ended September 30, 2020 and 2019, respectively, and $10.0 million and $7.6 million for the nine months ended September 30, 2020 and 2019, respectively. 2) Primarily related to Consumer Price Index adjustments, common area maintenance and property tax. Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows (in thousands): Nine Months Ended September 30, 2020 2019 Cash paid for amounts included in measurement of lease liabilities $ 10,622 $ 6,077 Operating lease assets obtained in exchange for new lease liabilities 11,581 14,618 Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows (in thousands): Amount Remainder of 2020 $ 4,421 2021 17,627 2022 17,410 2023 15,291 2024 2,572 2025 and beyond 15,512 Total lease payments $ 72,833 Less: imputed interest (8,100 ) Present value of lease liabilities $ 64,733 As of September 30, 2020, the Company had two additional operating leases that had not yet commenced, which are excluded from the table above. The first operating lease will commence in fiscal year 2021 and had $19.0 million of undiscounted future payments with a lease term of 7.75 years. The second operating lease will commence in October 2020 and had $7.1 million of undiscounted future payments with a lease term of 3.25 years. Weighted average remaining lease term and discount rate for the Company’s operating leases are as follows: September 30, 2020 December 31, 2019 Weighted-average remaining lease term (years) 4.8 4.0 Weighted-average discount rate 4.75 % 4.98 % |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 10. Revenue Geographical Information Revenue by location is determined by the billing address of the customer. The following table sets forth revenue by geographic area (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 North America $ 114,679 $ 70,904 $ 320,166 $ 186,340 International 39,996 24,960 105,769 62,796 Total $ 154,675 $ 95,864 $ 425,935 $ 249,136 Deferred Revenue and Remaining Performance Obligations Certain of the Company’s customers pay in advance of satisfaction of performance obligations and other customers with monthly contract terms are billed in arrears on a monthly basis. The Company records contract liabilities to deferred revenue when customers are billed or when the Company receives customer payments in advance of the performance obligations being satisfied on the Company’s contracts. Revenue recognized during the three months ended September 30, 2020 and 2019 that was included in the deferred revenue balances at the beginning of each such period was $73.3 million and $43.5 million, respectively. Revenue recognized during the nine months ended September 30, 2020 and 2019 that was included in the deferred revenue balances at the beginning of each such period was $121.0 million and $62.9 million, respectively. Remaining performance obligations represent the aggregate amount of the transaction price in contracts allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations include unearned revenue, multi-year contracts with future installment payments and certain unfulfilled orders against accepted customer contracts at the end of any given period. As of September 30, 2020 and December 31, 2019, the aggregate transaction price allocated to remaining performance obligations was $316.3 million and $243.8 million, respectively. There is uncertainty in the timing of revenues associated with the Company’s drawdown contracts, as future revenue can often vary significantly from past revenue. However, the Company expects to recognize substantially all of the remaining performance obligations over the next 24 months. Accounts Receivable Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. Unbilled accounts receivable represents revenue recognized on contracts for which billings have not yet been presented to customers because the amounts were earned but not contractually billable as of the balance sheet date. The unbilled accounts receivable balance is due within one year. As of September 30, 2020, and December 31, 2019, unbilled accounts receivable of approximately $17.2 million and $14.4 million, respectively, was included in accounts receivable on the Company’s condensed consolidated balance sheets. Deferred Contract Costs Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit which is determined to be four years. Amounts expected to be recognized within one year of the balance sheet date are recorded as deferred contract costs, current; the remaining portion is recorded as deferred contract costs, non-current, in the condensed consolidated balance sheets. Deferred contract costs on the Company’s condensed consolidated balance sheets were $34.2 million and $25.8 million as of September 30, 2020 and December 31, 2019, respectively. Amortization expense was $2.7 million and $1.4 million for the three months ended September 30, 2020 and 2019, respectively, and was $7.3 million and $3.7 million for the nine months ended September 30, 2020 and 2019, respectively. The following table represents a rollforward of the Company’s deferred contract costs (in thousands): Amount Balance as of December 31, 2019 $ 25,755 Additions to deferred contract costs 15,804 Amortization of deferred contract costs (7,348 ) Balance as of September 30, 2020 $ 34,211 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 11. Stockholders’ Equity Class A and Class B Common Stock The Company has two classes of common stock, Class A and Class B. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Shares of Class B common stock may be converted into Class A common stock at any time at the option of the stockholder, and are automatically converted upon the sale or transfer to Class A common stock, subject to certain limited exceptions. During the three and nine months ended September 30, 2020, 16,808,933 shares and 134,419,844 shares of Class B common stock were converted into Class A common stock, respectively. As of September 30, 2020, the Company had authorized 2,000,000,000 shares of Class A common stock and 310,000,000 shares of Class B common stock, each at a par value per share of $0.00001, of which 206,054,826 shares of Class A common stock and 98,337,015 shares of Class B common stock were issued and outstanding. Equity Incentive Plans The Company has two equity incentive plans, the 2012 equity incentive plan (the “2012 Plan”) and the 2019 equity incentive plan (the “2019 Plan”). In connection with the IPO, the Company ceased granting awards under the 2012 Plan, and all shares that remained available for issuance under the 2012 Plan at that time were transferred to the 2019 Plan. Stock Options The following table summarizes the Company’s stock option activity and weighted-average exercise prices: Number Of Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value (in thousands) Balance outstanding—December 31, 2019 36,384,767 $ 2.96 7.6 $ 1,266,938 Options granted 14,600 41.19 Options exercised (7,555,561 ) 1.64 Options forfeited or expired (511,680 ) 4.63 Balance outstanding—September 30, 2020 28,332,126 $ 3.31 6.9 $ 2,800,772 As of September 30, 2020, there were 35,300 shares of Class A common stock and 28,296,826 shares of Class B common stock issuable upon the exercise of options outstanding. As of December 31, 2019, there were 20,700 shares of Class A common stock and 36,364,067 shares of Class B common stock issuable upon the exercise of options outstanding. Total compensation cost related to unvested awards not yet recognized was approximately $67.8 million and $90.5 million as of September 30, 2020 and December 31, 2019, respectively. The weighted-average period over which this compensation cost related to unvested employee awards will be recognized is 2.2 years and 2.7 years as of September 30, 2020 and December 31, 2019, respectively. The weighted-average grant-date fair value of options granted during the nine months ended September 30, 2020 and 2019 was $16.55 and $8.68, respectively. The Company received approximately $12.4 million and $7.3 million in cash proceeds from options exercised during the nine months ended September 30, 2020 and 2019, respectively. The intrinsic value of options exercised during the nine months ended September 30, 2020 and 2019 was approximately $443.4 million and $106.0 million, respectively. The aggregate fair value of options vested during the nine months ended September 30, 2020 and 2019 was $19.6 million and $8.5 million, respectively. Common stock purchased pursuant to an early exercise of stock options is not deemed to be outstanding for accounting purposes until those shares vest. The consideration received for an exercise of an option is considered to be a deposit of the exercise price and the related dollar amount is recorded as a liability. The shares issued upon the early exercise of these unvested stock option awards, which are reflected as exercises in the table above, are considered to be legally issued and outstanding on the date of exercise. Upon termination of service, the Company may repurchase unvested shares acquired through early exercise of stock options at a price equal to the price per share paid upon the exercise of such options. The Company has recorded liabilities related to early exercises of 639,000 shares of common stock and 1,239,750 shares of common stock as of September 30, 2020 and December 31, 2019, respectively. Restricted Stock Units The following table summarizes the activity for the Company’s unvested RSUs: Shares Weighted- Average Fair Value Balance—December 31, 2019 647,094 $ 36.08 Awarded 4,102,243 54.12 Vested (8,234 ) 35.81 Forfeited/canceled (101,468 ) 42.97 Unvested and outstanding—September 30, 2020 4,639,635 $ 51.88 In June 2020, the Company granted 96,210 restricted shares of Class A common stock, which are subject to service-based vesting conditions over approximately four years. Total compensation cost related to unvested RSUs and restricted shares of common stock not yet recognized was approximately $227.2 million and $30.4 million as of September 30, 2020 and December 31, 2019, respectively. The weighted-average period over which this compensation cost related to unvested RSUs and restricted shares will be recognized is 3.5 years and 3.9 years as of September 30, 2020 and December 31, 2019, respectively. Employee Stock Purchase Plan In September 2019, the Board adopted and approved the 2019 Employee Stock Purchase Plan (the “ESPP”), which became effective on the date of the final prospectus for the Company’s IPO (the “Final Prospectus”). As of September 30, 2020, 9,354,222 shares of Class A common stock remain available for grant under the ESPP. The ESPP is implemented through a series of offerings under which eligible employees are granted purchase rights to purchase shares of the Company’s Class A common stock on specified dates during such offerings. Under the ESPP, the Company may specify offerings with durations of not more than 27 months, and may specify shorter purchase periods within each offering. On each purchase date, eligible employees will purchase the shares at a price per share equal to 85% of the lesser of (1) the fair market value of the Company’s Class A common stock on the first trading day of the offering period, or (2) the fair market value of the Company’s Class A common stock on the purchase date, as defined in the ESPP. The Company recognized $1.4 million and $3.5 million of stock-based compensation expense related to the ESPP during the three and nine months ended September 30, 2020, respectively. As of September 30, 2020, $5.9 million has been withheld on behalf of employees for a future purchase under the ESPP due to the timing of payroll deductions. During the nine months ended September 30, 2020, the Company issued 320,104 shares of Class A common stock under the ESPP. Stock-Based Compensation The Company uses the Black-Scholes option-pricing model to estimate the fair value of stock options on the date of grant. The Company recognizes and measures compensation expense for all stock-based payment awards granted to employees, directors, and nonemployees based on the fair value of the awards on the date of grant. The determination of the grant date fair value using an option-pricing model is affected by the estimated fair value of the Company’s common stock as well as assumptions regarding a number of other complex and subjective variables. These variables include expected stock price volatility over the expected term of the award, actual and projected employee stock option exercise behaviors, the risk-free interest rate for the expected term of the award and expected dividends. The fair value of RSUs is determined by the closing price on the date of grant of the Company’s Class A common stock, as reported on the Nasdaq Global Select Market. The Company estimates the fair value of the rights to acquire stock under the ESPP using the Black-Scholes option-pricing model. Stock-based compensation is recognized on a straight-line basis over the requisite service period and account for forfeitures as they occur. Stock-based compensation expense was included in the condensed consolidated statement of operations as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of revenue $ 529 $ 161 $ 1,167 $ 372 Research and development 10,173 1,934 24,723 3,709 Sales and marketing 6,068 1,540 13,683 3,276 General and administrative 3,946 1,042 10,037 2,659 Stock-based compensation, net of amounts capitalized 20,716 4,677 49,610 10,016 Capitalized stock-based compensation expense 1,220 14 1,521 137 Total stock-based compensation expense $ 21,936 $ 4,691 $ 51,131 $ 10,153 |
Interest Income and Other Incom
Interest Income and Other Income, Net | 9 Months Ended |
Sep. 30, 2020 | |
Interest And Other Income [Abstract] | |
Interest Income and Other Income, Net | 12. Interest Income and Other Income, Net Interest income and other income, net consist of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Interest income $ 6,585 $ 507 $ 14,734 $ 1,036 Other income, net 550 (417 ) 470 (390 ) Interest income and other income, net $ 7,135 $ 90 $ 15,204 $ 646 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. Income Taxes The Company has an effective tax rate of (4.09)% and (0.8)% for the three months ended September 30, 2020 and 2019, respectively, and (18.88)% and (2.2)% for the nine months ended September 30, 2020 and 2019, respectively. The Company has incurred U.S. operating losses and has minimal profits in its foreign jurisdictions. The Company has applied ASC 740, Income Taxes The Company early adopted the provisions of ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The Company has evaluated the available evidence supporting the realization of its deferred tax assets, including the amount and timing of future taxable income, and has determined that it is more likely than not that its net deferred tax assets will not be realized in the United States. Due to uncertainties surrounding the realization of the deferred tax assets, the Company recorded a full valuation allowance against substantially all of its net deferred tax assets. When the Company determines that it will be able to realize some portion or all of its deferred tax assets, an adjustment to its valuation allowance on its deferred tax assets would have the effect of increasing net income in the period such determination is made. On March 27, 2020 the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") was enacted and signed into law. The CARES Act makes changes to the U.S. tax code, including, but not limited to: (1) modifications to the business interest deduction limitation for tax years 2019 and 2020; (2) a technical correction of the recovery period of qualified improvement property from 39 to 15 years; and (3) a repeal of the 80% taxable income limitation on the deduction of net operating losses ("NOLs") for tax years beginning before January 1, 2021 as well as a five-year carryback period allowed for NOLs generated in tax years beginning after December 31, 2017 and before January 1, 2021. Under ASC 740, the effects of new legislation would need to be recognized in the period of enactment. Therefore, the effects of the CARES Act would need to be accounted for in the quarter that includes March 27, 2020. The Company evaluated the provisions of the CARES Act and determined that there was no material impact for the three and nine months ended September 30, 2020. The Company will continue to monitor any updates to the legislation and assess the potential income tax impact. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 14. Net Income (Loss) Per Share Basic and diluted net income (loss) per common share is presented in conformity with the two-class method required for participating securities. Immediately prior to the consummation of the Company’s IPO in September 2019, all outstanding shares of convertible preferred stock and common stock were converted into shares of Class B common stock. As a result, Class A and Class B common stock are the only outstanding equity in the Company. Basic and diluted net income (loss) per share is computed using the weighted-average number of shares of common stock outstanding during the period. The undistributed earnings are allocated based on the contractual participation rights of the Class A and Class B common stock as if the earnings for the year have been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, as the conversion of Class B common stock is assumed in the computation of the diluted net income (loss) per share of Class A common stock, the undistributed earnings are equal to net income (loss) for that computation. The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic net loss per share: Class A Class B Class A Class B Numerator: Net loss $ (9,773 ) $ (5,377 ) $ (93 ) $ (4,068 ) $ (4,257 ) $ (4,130 ) $ (157 ) $ (17,444 ) Denominator: Weighted-average shares used in calculating net loss per share, basic 195,176 107,378 2,322 101,554 151,806 147,299 782 86,976 Basic net loss per share $ (0.05 ) $ (0.05 ) $ (0.04 ) $ (0.04 ) $ (0.03 ) $ (0.03 ) $ (0.20 ) $ (0.20 ) Diluted net loss per share: Numerator: Allocation of distributed loss for basic computation $ (9,773 ) $ (5,377 ) $ (93 ) $ (4,068 ) $ (4,257 ) $ (4,130 ) $ (157 ) $ (17,444 ) Reallocation of undistributed loss as a result of conversion of Class B to Class A shares (5,377 ) — (4,068 ) — (4,130 ) — (17,444 ) — Allocation of undistributed loss $ (15,150 ) $ (5,377 ) $ (4,161 ) $ (4,068 ) $ (8,387 ) $ (4,130 ) $ (17,601 ) $ (17,444 ) Denominator: Number of shares used in basic calculation 195,176 107,378 2,322 101,554 151,806 147,299 782 86,976 Weighted-average effect of diluted securities: Conversion of Class B to Class A common shares outstanding 107,378 — 101,554 — 147,299 — 86,976 — Number of shares used in diluted calculation 302,554 107,378 103,876 101,554 299,105 147,299 87,758 86,976 Diluted net loss per share $ (0.05 ) $ (0.05 ) $ (0.04 ) $ (0.04 ) $ (0.03 ) $ (0.03 ) $ (0.20 ) $ (0.20 ) Since the Company was in a loss position for the periods presented, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been anti-dilutive. Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): As of September 30, 2020 2019 Shares subject to outstanding stock options and restricted stock units 32,972 37,153 Unvested early exercised stock options and restricted stock 919 1,548 Shares subject to the employee stock purchase plan 131 — Total 34,022 38,701 The Company uses the treasury stock method for calculating the potential dilutive effect of the conversion spread on diluted net income per share; if any, as the Company currently expects to settle the principal amount of the 2025 Notes in cash, and any excess in shares of the Company’s Class A common stock. The shares of the underlying conversion option for the 2025 Notes were not considered in the calculation of diluted net income per share as the effect would have been anti-dilutive. The effect of the conversion spread becomes dilutive when the average share price for the Company’s Class A common stock exceeds the conversion price of $92.30 per share, which did not occur as of September 30, 2020. The Company entered into Capped Calls in connection with the issuance of the 2025 Notes. The effect of the Capped Calls was also excluded from the calculation of diluted net income per share as the effect of the Capped Calls would have been anti-dilutive. The Capped Calls are expected to partially offset the potential dilution to the Company’s Class A common stock upon any conversion of the 2025 Notes. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Unaudited Interim Condensed Consolidated Financial Information | Unaudited Interim Condensed Consolidated Financial Information The unaudited condensed consolidated financial statements include the accounts of Datadog, Inc. and its wholly-owned subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and following the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2020 or for any other interim period or for any other future year. The accompanying unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, as filed with the SEC on February 25, 2020 (the “Annual Report”). |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of Datadog, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Stock Split | Stock Split On September 6, 2019, the Board and stockholders approved an amended and restated certificate of incorporation of the Company effecting a 3-for-1 stock split of the Company’s issued and outstanding shares of common stock and convertible preferred stock, and an increase to the authorized shares of the Company’s common stock and convertible preferred stock to 380,000,000 shares and 179,814,912 shares, respectively. The split was effected on September 6, 2019 and without any change in the par value per share. All information related to the Company’s common stock, convertible preferred stock and stock awards has been retroactively adjusted to give effect to the 3-for-1 stock split on September 6, 2019. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Such estimates include the fair value of marketable securities, the allowance for credit losses, the fair value of acquired assets and assumed liabilities from business combinations, useful lives of property, equipment, software, and finite lived intangibles, stock-based compensation including the determination of the fair value of the Company’s stock prior to its initial public offering (“IPO”), fair value of common stock and redeemable convertible preferred stock prior to the IPO, valuation of long-lived assets and their recoverability, including goodwill, estimated expected period of benefit for deferred contract costs, the incremental borrowing rate for operating leases, fair value of the liability component of the convertible debt, realization of deferred tax assets and uncertain tax positions, revenue recognition and the allocation of overhead costs between cost of revenue and operating expenses. The Company bases its estimates on historical experience and also on assumptions that management considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could materially differ from these estimates. |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments—Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU No. 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract Internal-Use Software In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion Options (“Subtopic 470-20”) and Derivatives and Hedging—Contracts in Entity’s Own Equity |
Marketable Securities (Tables)
Marketable Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Available-for-Sale Marketable Securities | The following is a summary of available-for-sale marketable securities, excluding those securities classified within cash and cash equivalents on the condensed consolidated balance sheets as of September 30, 2020 and December 31, 2019 (in thousands): September 30, 2020 Amortized Cost Unrealized Gain Unrealized Losses Fair Value Commercial debt securities $ 965,398 $ 1,784 $ (154 ) $ 967,028 Certificates of deposit 34,225 37 — 34,262 U.S. government treasury securities 169,306 427 (2 ) 169,731 Commercial paper 125,218 30 (8 ) 125,240 Marketable securities $ 1,294,147 $ 2,278 $ (164 ) $ 1,296,261 December 31, 2019 Amortized Cost Unrealized Gain Unrealized Losses Fair Value Commercial debt securities $ 80,376 $ 46 $ (5 ) $ 80,417 U.S. government treasury securities 72,467 10 (4 ) 72,473 Commercial paper 23,784 — — 23,784 Marketable securities $ 176,627 $ 56 $ (9 ) $ 176,674 |
Summary of Fair Values of Available-for-Sale Marketable Securities, by Remaining Contractual Maturity | As of September Due within one year $ 1,074,047 Due in one year through five years 222,214 Total $ 1,296,261 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present information about the Company’s financial assets and liabilities that have been measured at fair value on a recurring basis as of Sep Fair Value Measurement as of September 30, 2020 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 159,536 $ — $ — $ 159,536 Commercial paper — 10,500 — 10,500 Corporate debt securities — 10,601 — 10,601 Marketable Securities: Corporate debt securities — 967,028 — 967,028 Certificates of deposit — 34,261 — 34,261 U.S. government treasury securities — 169,731 — 169,731 Commercial paper — 125,240 — 125,240 Total financial assets $ 159,536 $ 1,317,361 $ — $ 1,476,897 Fair Value Measurement as of December 31, 2019 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 588,762 $ — $ — $ 588,762 Marketable Securities: Corporate debt securities — 80,417 — 80,417 U.S. government treasury securities — 72,473 — 72,473 Commercial paper — 23,784 — 23,784 Total financial assets $ 588,762 $ 176,674 $ — $ 765,436 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property Plant And Equipment [Abstract] | |
Components of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): September 30, 2020 December 31, 2019 Computers and equipment $ 10,544 $ 7,536 Furniture and fixtures 5,090 4,804 Leasehold improvements 17,510 16,517 Capitalized software development costs 40,522 24,630 Total property and equipment $ 73,666 $ 53,487 Less: accumulated depreciation and amortization (31,607 ) (20,738 ) Total property and equipment, net $ 42,059 $ 32,749 |
Acquisition, Intangible Asset_2
Acquisition, Intangible Assets and Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consisted of the following (in thousands): September 30, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortization Period Developed technology $ 3,291 $ (964 ) $ 2,327 2-3 years December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Amortization Period Developed technology $ 3,046 $ (1,611 ) $ 1,435 2-3 years |
Schedule of Future Amortization Expense | As of September 30, 2020, future amortization expense by year is expected to be as follows (in thousands): Amount Remainder of 2020 $ 273 2021 1,027 2022 774 2023 253 Total $ 2,327 |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill were as follows (in thousands): Amount Balance as of December 31, 2019 $ 9,058 Foreign currency translation adjustments 339 2020 acquisition 7,814 Balance as of September 30, 2020 $ 17,211 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Summary of Net Carrying Amount of Liability and Equity Component of 2025 Notes | The net carrying amount of the liability component of the 2025 Notes was as follows (in thousands): September 30, 2020 Principal $ 747,500 Unamortized debt discount (167,240 ) Unamortized debt issuance costs (12,577 ) Net carrying amount $ 567,683 The net carrying amount of the equity component of the 2025 Notes was as follows (in thousands): September 30, 2020 Debt discount for conversion option $ 177,169 Issuance costs (4,099 ) Net carrying amount $ 173,070 |
Interest Expense related to 2025 Notes | The following table sets forth the interest expense related to the 2025 Notes for each of the three and nine months ended September 30, 2020 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2020 Contractual interest expense $ 234 $ 306 Amortization of debt discount 7,589 9,929 Amortization of issuance costs 473 617 Total $ 8,296 $ 10,852 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Summary of Components of Lease Cost Recognized | The components of lease cost recognized within the Company’s condensed consolidated statements of operations were as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Operating lease cost (1) $ 4,252 $ 3,885 $ 12,322 $ 9,715 Variable lease cost (2) — 126 — 136 Short-term lease cost 867 564 2,763 2,148 1) Includes non-cash lease expense of $3.4 million and $3.1 million for the three months ended September 30, 2020 and 2019, respectively, and $10.0 million and $7.6 million for the nine months ended September 30, 2020 and 2019, respectively. 2) Primarily related to Consumer Price Index adjustments, common area maintenance and property tax. |
Summary of Supplemental Cash Flow Information and Non-cash Activity | Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows (in thousands): Nine Months Ended September 30, 2020 2019 Cash paid for amounts included in measurement of lease liabilities $ 10,622 $ 6,077 Operating lease assets obtained in exchange for new lease liabilities 11,581 14,618 |
Summary of Maturities of Lease Liabilities | Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows (in thousands): Amount Remainder of 2020 $ 4,421 2021 17,627 2022 17,410 2023 15,291 2024 2,572 2025 and beyond 15,512 Total lease payments $ 72,833 Less: imputed interest (8,100 ) Present value of lease liabilities $ 64,733 |
Summary of Weighted Average Remaining Lease Term and Discount Rate | Weighted average remaining lease term and discount rate for the Company’s operating leases are as follows: September 30, 2020 December 31, 2019 Weighted-average remaining lease term (years) 4.8 4.0 Weighted-average discount rate 4.75 % 4.98 % |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Revenue by Geographic Area | Revenue by location is determined by the billing address of the customer. The following table sets forth revenue by geographic area (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 North America $ 114,679 $ 70,904 $ 320,166 $ 186,340 International 39,996 24,960 105,769 62,796 Total $ 154,675 $ 95,864 $ 425,935 $ 249,136 |
Schedule of Deferred Contract Costs | The following table represents a rollforward of the Company’s deferred contract costs (in thousands): Amount Balance as of December 31, 2019 $ 25,755 Additions to deferred contract costs 15,804 Amortization of deferred contract costs (7,348 ) Balance as of September 30, 2020 $ 34,211 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Summary of Stock Option Activity and Weighted Average Exercise Prices | The following table summarizes the Company’s stock option activity and weighted-average exercise prices: Number Of Options Outstanding Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (in Years) Aggregate Intrinsic Value (in thousands) Balance outstanding—December 31, 2019 36,384,767 $ 2.96 7.6 $ 1,266,938 Options granted 14,600 41.19 Options exercised (7,555,561 ) 1.64 Options forfeited or expired (511,680 ) 4.63 Balance outstanding—September 30, 2020 28,332,126 $ 3.31 6.9 $ 2,800,772 |
Summary of Activity for Unvested RSUs | The following table summarizes the activity for the Company’s unvested RSUs: Shares Weighted- Average Fair Value Balance—December 31, 2019 647,094 $ 36.08 Awarded 4,102,243 54.12 Vested (8,234 ) 35.81 Forfeited/canceled (101,468 ) 42.97 Unvested and outstanding—September 30, 2020 4,639,635 $ 51.88 |
Summary of Stock-based Compensation Expense | Stock-based compensation expense was included in the condensed consolidated statement of operations as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Cost of revenue $ 529 $ 161 $ 1,167 $ 372 Research and development 10,173 1,934 24,723 3,709 Sales and marketing 6,068 1,540 13,683 3,276 General and administrative 3,946 1,042 10,037 2,659 Stock-based compensation, net of amounts capitalized 20,716 4,677 49,610 10,016 Capitalized stock-based compensation expense 1,220 14 1,521 137 Total stock-based compensation expense $ 21,936 $ 4,691 $ 51,131 $ 10,153 |
Interest Income and Other Inc_2
Interest Income and Other Income, Net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Interest And Other Income [Abstract] | |
Schedule of Interest Income and Other Income, Net | Interest income and other income, net consist of the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Interest income $ 6,585 $ 507 $ 14,734 $ 1,036 Other income, net 550 (417 ) 470 (390 ) Interest income and other income, net $ 7,135 $ 90 $ 15,204 $ 646 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Basic net loss per share: Class A Class B Class A Class B Numerator: Net loss $ (9,773 ) $ (5,377 ) $ (93 ) $ (4,068 ) $ (4,257 ) $ (4,130 ) $ (157 ) $ (17,444 ) Denominator: Weighted-average shares used in calculating net loss per share, basic 195,176 107,378 2,322 101,554 151,806 147,299 782 86,976 Basic net loss per share $ (0.05 ) $ (0.05 ) $ (0.04 ) $ (0.04 ) $ (0.03 ) $ (0.03 ) $ (0.20 ) $ (0.20 ) Diluted net loss per share: Numerator: Allocation of distributed loss for basic computation $ (9,773 ) $ (5,377 ) $ (93 ) $ (4,068 ) $ (4,257 ) $ (4,130 ) $ (157 ) $ (17,444 ) Reallocation of undistributed loss as a result of conversion of Class B to Class A shares (5,377 ) — (4,068 ) — (4,130 ) — (17,444 ) — Allocation of undistributed loss $ (15,150 ) $ (5,377 ) $ (4,161 ) $ (4,068 ) $ (8,387 ) $ (4,130 ) $ (17,601 ) $ (17,444 ) Denominator: Number of shares used in basic calculation 195,176 107,378 2,322 101,554 151,806 147,299 782 86,976 Weighted-average effect of diluted securities: Conversion of Class B to Class A common shares outstanding 107,378 — 101,554 — 147,299 — 86,976 — Number of shares used in diluted calculation 302,554 107,378 103,876 101,554 299,105 147,299 87,758 86,976 Diluted net loss per share $ (0.05 ) $ (0.05 ) $ (0.04 ) $ (0.04 ) $ (0.03 ) $ (0.03 ) $ (0.20 ) $ (0.20 ) |
Schedule of Potentially Dilutive Securities not Included in Diluted Per Share Calculations | Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): As of September 30, 2020 2019 Shares subject to outstanding stock options and restricted stock units 32,972 37,153 Unvested early exercised stock options and restricted stock 919 1,548 Shares subject to the employee stock purchase plan 131 — Total 34,022 38,701 |
Organization and Description _2
Organization and Description of Business - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Date of Incorporation | Jun. 4, 2010 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details) | Sep. 06, 2019shares | Sep. 30, 2020 |
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Stock split, conversion ratio | 0.333 | |
Common stock, shares authorized | 380,000,000 | |
ASU No. 2016-13 | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect | true | |
ASU No. 2018-15 | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Change in Accounting Principle, Accounting Standards Update, Adopted | true | |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect | true | |
Change in Accounting Principle, Accounting Standards Update, Transition Option Elected [Extensible List] | us-gaap:AccountingStandardsUpdate201815ProspectiveMember | |
ASU No. 2019-12 | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect | true | |
Change In Accounting Principle Accounting Standards Update Early Adoption | true | |
Convertible Preferred Stock | ||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | ||
Convertible preferred stock, shares authorized | 179,814,912 |
Marketable Securities - Summary
Marketable Securities - Summary of Available-for-sale Marketable Securities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Marketable Securities [Line Items] | ||
Marketable securities, Amortized Cost | $ 1,294,147 | $ 176,627 |
Marketable securities, Unrealized Gain | 2,278 | 56 |
Marketable securities, Unrealized Losses | (164) | (9) |
Marketable securities, Fair Value | 1,296,261 | 176,674 |
Commercial Debt Securities | ||
Marketable Securities [Line Items] | ||
Marketable securities, Amortized Cost | 965,398 | 80,376 |
Marketable securities, Unrealized Gain | 1,784 | 46 |
Marketable securities, Unrealized Losses | (154) | (5) |
Marketable securities, Fair Value | 967,028 | 80,417 |
Certificates of Deposit | ||
Marketable Securities [Line Items] | ||
Marketable securities, Amortized Cost | 34,225 | |
Marketable securities, Unrealized Gain | 37 | |
Marketable securities, Fair Value | 34,262 | |
U.S. Government Treasury Securities | ||
Marketable Securities [Line Items] | ||
Marketable securities, Amortized Cost | 169,306 | 72,467 |
Marketable securities, Unrealized Gain | 427 | 10 |
Marketable securities, Unrealized Losses | (2) | (4) |
Marketable securities, Fair Value | 169,731 | 72,473 |
Commercial Paper | ||
Marketable Securities [Line Items] | ||
Marketable securities, Amortized Cost | 125,218 | 23,784 |
Marketable securities, Unrealized Gain | 30 | |
Marketable securities, Unrealized Losses | (8) | |
Marketable securities, Fair Value | $ 125,240 | $ 23,784 |
Marketable Securities - Summa_2
Marketable Securities - Summary of Fair Values of Available-for-Sale Marketable Securities, by Remaining Contractual Maturity (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Investments Debt And Equity Securities [Abstract] | |
Due within one year | $ 1,074,047 |
Due in one year through five years | 222,214 |
Total | $ 1,296,261 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financial Assets: | ||
Marketable securities | $ 1,296,261 | $ 176,674 |
Fair Value, Recurring | ||
Financial Assets: | ||
Total financial assets | 1,476,897 | 765,436 |
Fair Value, Recurring | Money Market Funds | ||
Financial Assets: | ||
Cash equivalents | 159,536 | 588,762 |
Fair Value, Recurring | Commercial Paper | ||
Financial Assets: | ||
Cash equivalents | 10,500 | |
Marketable securities | 125,240 | 23,784 |
Fair Value, Recurring | Corporate Debt Securities | ||
Financial Assets: | ||
Cash equivalents | 10,601 | |
Marketable securities | 967,028 | 80,417 |
Fair Value, Recurring | Certificates of Deposit | ||
Financial Assets: | ||
Marketable securities | 34,261 | |
Fair Value, Recurring | U.S. Government Treasury Securities | ||
Financial Assets: | ||
Marketable securities | 169,731 | 72,473 |
Fair Value, Recurring | Level 1 | ||
Financial Assets: | ||
Total financial assets | 159,536 | 588,762 |
Fair Value, Recurring | Level 1 | Money Market Funds | ||
Financial Assets: | ||
Cash equivalents | 159,536 | 588,762 |
Fair Value, Recurring | Level 2 | ||
Financial Assets: | ||
Total financial assets | 1,317,361 | 176,674 |
Fair Value, Recurring | Level 2 | Commercial Paper | ||
Financial Assets: | ||
Cash equivalents | 10,500 | |
Marketable securities | 125,240 | 23,784 |
Fair Value, Recurring | Level 2 | Corporate Debt Securities | ||
Financial Assets: | ||
Cash equivalents | 10,601 | |
Marketable securities | 967,028 | 80,417 |
Fair Value, Recurring | Level 2 | Certificates of Deposit | ||
Financial Assets: | ||
Marketable securities | 34,261 | |
Fair Value, Recurring | Level 2 | U.S. Government Treasury Securities | ||
Financial Assets: | ||
Marketable securities | $ 169,731 | $ 72,473 |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 73,666 | $ 53,487 |
Less: accumulated depreciation and amortization | (31,607) | (20,738) |
Total property and equipment, net | 42,059 | 32,749 |
Computers and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 10,544 | 7,536 |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 5,090 | 4,804 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 17,510 | 16,517 |
Capitalized Software Development Costs | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 40,522 | $ 24,630 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation and amortization expense | $ 3.7 | $ 3.8 | $ 10.7 | $ 8.3 |
Acquisition, Intangible Asset_3
Acquisition, Intangible Assets and Goodwill - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Acquisition Intangible Assets And Goodwill [Line Items] | |||||
Goodwill | $ 17,211 | $ 17,211 | $ 9,058 | ||
Intangible amortization expense | 300 | $ 200 | 700 | $ 500 | |
2020 Acquisition | |||||
Acquisition Intangible Assets And Goodwill [Line Items] | |||||
Purchase price allocated to estimated fair value of intangible assets | 1,500 | 1,500 | |||
Goodwill | $ 7,800 | $ 7,800 |
Acquisition, Intangible Asset_4
Acquisition, Intangible Assets and Goodwill - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 2,327 | $ 1,435 |
Developed Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,291 | 3,046 |
Accumulated Amortization | (964) | (1,611) |
Net Carrying Amount | $ 2,327 | $ 1,435 |
Developed Technology | Minimum | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization Period | 2 years | 2 years |
Developed Technology | Maximum | ||
Finite Lived Intangible Assets [Line Items] | ||
Amortization Period | 3 years | 3 years |
Acquisition, Intangible Asset_5
Acquisition, Intangible Assets and Goodwill - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2020 | $ 273 | |
2021 | 1,027 | |
2022 | 774 | |
2023 | 253 | |
Net Carrying Amount | $ 2,327 | $ 1,435 |
Acquisition, Intangible Asset_6
Acquisition, Intangible Assets and Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Balance as of December 31, 2019 | $ 9,058 |
Foreign currency translation adjustments | 339 |
2020 acquisition | 7,814 |
Balance as of September 30, 2020 | $ 17,211 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Details) - 0.125% Convertible Senior Notes due 2025 $ / shares in Units, shares in Millions | Jun. 02, 2020USD ($) | Sep. 30, 2020USD ($)d$ / sharesshares |
Debt Instrument [Line Items] | ||
Debt instrument, aggregate principal amount | $ 747,500,000 | $ 747,500,000 |
Debt instrument, interest rate | 0.125% | |
Debt instrument, net proceeds from sale of notes | $ 730,200,000 | |
Debt instrument, date of first required payment | Dec. 15, 2020 | |
Debt instrument, maturity date | Jun. 15, 2025 | |
Debt instrument, payment terms | The 2025 Notes bear interest at a rate of 0.125% per year, payable semiannually in arrears on June 15 and December 15 of each year, beginning on December 15, 2020. | |
Debt Instrument, frequency of interest payment | semiannually | |
Debt instrument, convertible carrying amount of equity component | $ 177,169,000 | |
Debt issuance costs | 17,300,000 | |
Issuance cost attributable to liability component | 13,200,000 | |
Issuance cost attributable to equity component | $ 4,099,000 | |
Debt instrument, effective interest rate | 5.97% | |
Debt instrument, estimated fair value | $ 994,100,000 | |
Initial strike price per share of capped calls | $ / shares | $ 92.30 | |
Initial cap price per share of capped calls | $ / shares | $ 151.04 | |
Cost incurred to purchase capped calls | $ 89,600,000 | |
Redemption, On or After June 20, 2023, and Prior to 31st Scheduled Trading Day | ||
Debt Instrument [Line Items] | ||
Debt instrument redemption price percentage of principal amount redeemed | 100.00% | |
Class A Common Stock | ||
Debt Instrument [Line Items] | ||
Common stock covered under capped calls | shares | 8.1 | |
Class A Common Stock | Redemption, On or After June 20, 2023, and Prior to 31st Scheduled Trading Day | ||
Debt Instrument [Line Items] | ||
Debt instrument, trading days | d | 20 | |
Debt instrument, consecutive trading days | d | 30 | |
Class A Common Stock | Minimum | Redemption, On or After June 20, 2023, and Prior to 31st Scheduled Trading Day | ||
Debt Instrument [Line Items] | ||
Debt instrument, threshold percentage of conversion price | 130.00% | |
Conversion Preceding March 15, 2025, Scenario One | ||
Debt Instrument [Line Items] | ||
Debt instrument, trading days | d | 20 | |
Debt instrument, consecutive trading days | d | 30 | |
Debt instrument, threshold percentage of conversion price | 130.00% | |
Conversion Preceding March 15, 2025, Scenario Two | ||
Debt Instrument [Line Items] | ||
Debt instrument, consecutive trading days | d | 10 | |
Number of consecutive business days after any five consecutive trading day period during the note measurement period | d | 5 | |
Debt instrument, principal amount denomination used in conversion | $ 1,000 | |
Debt instrument, convertible, threshold maximum percentage of product of last reported sale price of common stock | 98.00% | |
Conversion, On or After March 15, 2025 | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount denomination used in conversion | $ 1,000 | |
Debt instrument, conversion price per share | $ / shares | $ 92.30 | |
Conversion, On or After March 15, 2025 | Class A Common Stock | ||
Debt Instrument [Line Items] | ||
Debt instrument, principal amount denomination used in conversion | $ 1,000 | |
Debt instrument, conversion ratio | 10.8338 | |
Debt instrument, conversion price per share | $ / shares | $ 92.30 |
Convertible Senior Notes - Summ
Convertible Senior Notes - Summary of Net Carrying Amount of Liability Component of 2025 Notes (Details) - USD ($) | Sep. 30, 2020 | Jun. 02, 2020 |
Debt Instrument [Line Items] | ||
Net carrying amount | $ 567,683,000 | |
0.125% Convertible Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Principal | 747,500,000 | $ 747,500,000 |
Unamortized debt discount | (167,240,000) | |
Unamortized debt issuance costs | (12,577,000) | |
Net carrying amount | $ 567,683,000 |
Convertible Senior Notes - Su_2
Convertible Senior Notes - Summary of Net Carrying Amount of Equity Component of 2025 Notes (Details) - 0.125% Convertible Senior Notes due 2025 $ in Thousands | Sep. 30, 2020USD ($) |
Debt Instrument [Line Items] | |
Debt discount for conversion option | $ 177,169 |
Issuance costs | (4,099) |
Net carrying amount | $ 173,070 |
Convertible Senior Notes - Inte
Convertible Senior Notes - Interest Expense related to 2025 Notes (Details) - 0.125% Convertible Senior Notes due 2025 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||
Contractual interest expense | $ 234 | $ 306 |
Amortization of debt discount | 7,589 | 9,929 |
Amortization of issuance costs | 473 | 617 |
Total | $ 8,296 | $ 10,852 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jan. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jan. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |||||||
Total purchase commitment | $ 76,700,000 | $ 21,000,000 | |||||
Purchase commitment payable period | 3 years | 3 years | |||||
Contingent federal payroll tax liability | $ 5,400,000 | ||||||
Benefit on federal payroll tax liability | $ 5,600,000 | ||||||
Matching contributions to the 401(k) plan | $ 0 | $ 0 | $ 0 | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Lessee Lease Description [Line Items] | |
Operating lease, option to terminate | option to terminate a lease early within three years |
Lessee, Operating Lease, Existence of Option to Terminate [true false] | true |
Lease, Practical Expedient, Lessor Single Lease Component [true false] | true |
Lessee, operating lease, lease not yet commenced, description | As of September 30, 2020, the Company had two additional operating leases that had not yet commenced, which are excluded from the table above. The first operating lease will commence in fiscal year 2021 and had $19.0 million of undiscounted future payments with a lease term of 7.75 years. The second operating lease will commence in October 2020 and had $7.1 million of undiscounted future payments with a lease term of 3.25 years. |
Undiscounted future payments | $ 72,833 |
Operating Lease Not Yet Commenced One | |
Lessee Lease Description [Line Items] | |
Lessee, operating lease, lease not yet commenced, term of contract | 7 years 9 months |
Lessee operating lease commencing period | 2021 |
Undiscounted future payments | $ 19,000 |
Operating Lease Not Yet Commenced Two | |
Lessee Lease Description [Line Items] | |
Lessee, operating lease, lease not yet commenced, term of contract | 3 years 3 months |
Lessee operating lease commencing period | 2020-10 |
Undiscounted future payments | $ 7,100 |
Minimum | |
Lessee Lease Description [Line Items] | |
Noncancelable operating lease expiration period | 2020 |
Maximum | |
Lessee Lease Description [Line Items] | |
Noncancelable operating lease expiration period | 2029 |
Operating lease, renewal term | 5 years |
Operating lease, termination term | 3 years |
Leases - Summary of Components
Leases - Summary of Components of Lease Cost Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 4,252 | $ 3,885 | $ 12,322 | $ 9,715 |
Variable lease cost | 126 | 136 | ||
Short-term lease cost | $ 867 | $ 564 | $ 2,763 | $ 2,148 |
Leases - Summary of Component_2
Leases - Summary of Components of Lease Cost Recognized (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Operating lease, non-cash lease expense | $ 3.4 | $ 3.1 | $ 10 | $ 7.6 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information and Non-cash Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Cash paid for amounts included in measurement of lease liabilities | $ 10,622 | $ 6,077 |
Operating lease assets obtained in exchange for new lease liabilities | $ 11,581 | $ 14,618 |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Leases [Abstract] | |
Remainder of 2020 | $ 4,421 |
2021 | 17,627 |
2022 | 17,410 |
2023 | 15,291 |
2024 | 2,572 |
2025 and beyond | 15,512 |
Total lease payments | 72,833 |
Less: imputed interest | (8,100) |
Present value of lease liabilities | $ 64,733 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Term and Discount Rate (Details) | Sep. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 4 years 9 months 18 days | 4 years |
Weighted-average discount rate | 4.75% | 4.98% |
Revenue - Schedule of Revenue b
Revenue - Schedule of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Revenue by geographic area | $ 154,675 | $ 95,864 | $ 425,935 | $ 249,136 |
North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue by geographic area | 114,679 | 70,904 | 320,166 | 186,340 |
International | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue by geographic area | $ 39,996 | $ 24,960 | $ 105,769 | $ 62,796 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |||||
Revenue recognized | $ 73.3 | $ 43.5 | $ 121 | $ 62.9 | |
Allowance for doubtful accounts receivable deemed uncollectible | 0.9 | 0.2 | 0.9 | 0.2 | |
Unbilled accounts receivable | $ 17.2 | $ 17.2 | $ 14.4 | ||
Deferred contract costs amortization period | 4 years | 4 years | |||
Deferred contract costs | $ 34.2 | $ 34.2 | $ 25.8 | ||
Amortization expense | $ 2.7 | $ 1.4 | $ 7.3 | $ 3.7 |
Revenue - Additional Informat_2
Revenue - Additional Information (Details 1) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligations | $ 243.8 | |
Remaining performance obligations, expected to recognize period | 24 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-10-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligations | $ 316.3 | |
Remaining performance obligations, expected to recognize period | 24 months |
Revenue - Schedule of Deferred
Revenue - Schedule of Deferred Contract Costs (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Capitalized Contract Cost [Abstract] | ||
Balance as of December 31, 2019 | $ 25,755 | |
Additions to deferred contract costs | 15,804 | |
Amortization of deferred contract costs | (7,348) | $ (3,688) |
Balance as of September 30, 2020 | $ 34,211 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Sep. 06, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common stock, shares authorized | 380,000,000 | |||||||
Stock issuable upon the exercise of options outstanding | 28,332,126 | 28,332,126 | 36,384,767 | |||||
Proceeds from exercise of stock options | $ 12,354 | $ 7,306 | ||||||
Share-based payment arrangement, expense | $ 20,716 | $ 4,677 | 49,610 | $ 10,016 | ||||
Amounts withheld on behalf of employees for a future purchase | 977 | |||||||
Stock Option | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Total compensation cost related to unvested awards not yet recognized | $ 67,800 | $ 67,800 | $ 90,500 | |||||
Weighted average period over compensation cost related to unvested employee awards | 2 years 2 months 12 days | 2 years 8 months 12 days | ||||||
Weighted average grant-date fair value of options granted | $ 16.55 | $ 8.68 | ||||||
Proceeds from exercise of stock options | $ 12,400 | $ 7,300 | ||||||
Intrinsic value of options exercised | 443,400 | 106,000 | ||||||
Aggregate fair value of options vested | $ 19,600 | $ 8,500 | ||||||
Early exercise of common stock | 639,000 | 639,000 | 1,239,750 | |||||
RSU | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Weighted average period over compensation cost related to unvested employee awards | 3 years 6 months | 3 years 10 months 24 days | ||||||
Common stock granted | 4,102,243 | |||||||
Total compensation cost related to unvested awards not yet recognized | $ 227,200 | $ 227,200 | $ 30,400 | |||||
Employee Stock Purchase Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Percentage of purchase the shares at a price per share | 85.00% | |||||||
Share-based payment arrangement, expense | $ 1,400 | 3,500 | ||||||
Amounts withheld on behalf of employees for a future purchase | $ 5,900 | |||||||
Class B Common Stock | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common stock, number of shares converted | 16,808,933 | 134,419,844 | ||||||
Common stock, shares authorized | 310,000,000 | 310,000,000 | 310,000,000 | |||||
Common stock, par value | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||
Common stock, shares issued | 98,337,015 | 98,337,015 | 232,078,452 | |||||
Common stock, shares outstanding | 98,337,015 | 98,337,015 | 232,078,452 | |||||
Stock issuable upon the exercise of options outstanding | 28,296,826 | 28,296,826 | 36,364,067 | |||||
Class A Common Stock | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common stock, shares authorized | 2,000,000,000 | 2,000,000,000 | 2,000,000,000 | |||||
Common stock, par value | $ 0.00001 | $ 0.00001 | $ 0.00001 | |||||
Common stock, shares issued | 206,054,826 | 206,054,826 | 64,308,498 | |||||
Common stock, shares outstanding | 206,054,826 | 206,054,826 | 64,308,498 | |||||
Stock issuable upon the exercise of options outstanding | 35,300 | 35,300 | 20,700 | |||||
Class A Common Stock | Service-based Restricted Shares | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Common stock granted | 96,210 | |||||||
Service based vesting period | 4 years | |||||||
Class A Common Stock | 2019 Equity Incentive Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares available for grant | 43,324,876 | 43,324,876 | ||||||
Class A Common Stock | Employee Stock Purchase Plan | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares available for grant | 9,354,222 | 9,354,222 | ||||||
Issuance of common stock under the employee stock purchase plan | 320,104 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity and Weighted Average Exercise Prices (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | |
Number Of Options Outstanding | ||
Balance outstanding—December 31, 2019 | shares | 36,384,767 | |
Options granted | shares | 14,600 | |
Options exercised | shares | (7,555,561) | |
Options forfeited or expired | shares | (511,680) | |
Balance outstanding—September 30, 2020 | shares | 28,332,126 | 36,384,767 |
Weighted-Average Exercise Price | ||
Balance outstanding—December 31, 2019 | $ / shares | $ 2.96 | |
Options granted | $ / shares | 41.19 | |
Options exercised | $ / shares | 1.64 | |
Options forfeited or expired | $ / shares | 4.63 | |
Balance outstanding—September 30, 2020 | $ / shares | $ 3.31 | $ 2.96 |
Weighted-Average Remaining Contractual Life (in Years) | ||
Options outstanding | 6 years 10 months 24 days | 7 years 7 months 6 days |
Balance outstanding | $ | $ 2,800,772 | $ 1,266,938 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Activity for Unvested RSUs (Details) - Restricted Stock Units (RSUs) | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Unvested Shares | |
Balance—December 31, 2019 | shares | 647,094 |
Awarded | shares | 4,102,243 |
Vested | shares | (8,234) |
Forfeited/canceled | shares | (101,468) |
Unvested and outstanding—September 30, 2020 | shares | 4,639,635 |
Weighted-Average Fair Value | |
Balance—December 31, 2019 | $ / shares | $ 36.08 |
Awarded | $ / shares | 54.12 |
Vested | $ / shares | 35.81 |
Forfeited/canceled | $ / shares | 42.97 |
Unvested and outstanding—September 30, 2020 | $ / shares | $ 51.88 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | $ 20,716 | $ 4,677 | $ 49,610 | $ 10,016 |
Capitalized stock-based compensation expense | 1,220 | 14 | 1,521 | 137 |
Total stock-based compensation expense | 21,936 | 4,691 | 51,131 | 10,153 |
Cost of Revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 529 | 161 | 1,167 | 372 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 10,173 | 1,934 | 24,723 | 3,709 |
Sales and Marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | 6,068 | 1,540 | 13,683 | 3,276 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation, net of amounts capitalized | $ 3,946 | $ 1,042 | $ 10,037 | $ 2,659 |
Interest Income and Other Inc_3
Interest Income and Other Income, Net - Schedule of Interest Income and Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest And Other Income [Abstract] | ||||
Interest income | $ 6,585 | $ 507 | $ 14,734 | $ 1,036 |
Other income, net | 550 | (417) | 470 | (390) |
Interest income and other income, net | $ 7,135 | $ 90 | $ 15,204 | $ 646 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | Mar. 27, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Income Taxes [Line Items] | |||||
Effective tax rate | (4.09%) | (0.80%) | (18.88%) | (2.20%) | |
Net operating loss deductible limitation percentage | 80.00% | ||||
Net operating losses carryback period | 5 years | ||||
Maximum | |||||
Income Taxes [Line Items] | |||||
Property recovery correction period | 39 years | ||||
Minimum | |||||
Income Taxes [Line Items] | |||||
Property recovery correction period | 15 years |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Schedule of Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic net loss per share: | ||||
Net loss | $ (15,150) | $ (4,161) | $ (8,387) | $ (17,601) |
Diluted net loss per share: | ||||
Net loss attributable to common stockholders | (15,150) | (4,161) | (8,387) | (17,601) |
Class A Common Stock | ||||
Basic net loss per share: | ||||
Net loss | $ (9,773) | $ (93) | $ (4,257) | $ (157) |
Weighted-average shares used in calculating net loss per share, basic | 195,176 | 2,322 | 151,806 | 782 |
Basic net loss per share | $ (0.05) | $ (0.04) | $ (0.03) | $ (0.20) |
Diluted net loss per share: | ||||
Net loss attributable to common stockholders | $ (9,773) | $ (93) | $ (4,257) | $ (157) |
Reallocation of undistributed loss as a result of conversion of Class B to Class A shares | (5,377) | (4,068) | (4,130) | (17,444) |
Allocation of undistributed loss | $ (15,150) | $ (4,161) | $ (8,387) | $ (17,601) |
Weighted-average shares used in calculating net loss per share, basic | 195,176 | 2,322 | 151,806 | 782 |
Conversion of Class B to Class A common shares outstanding | 107,378 | 101,554 | 147,299 | 86,976 |
Number of shares used in diluted calculation | 302,554 | 103,876 | 299,105 | 87,758 |
Diluted net loss per share | $ (0.05) | $ (0.04) | $ (0.03) | $ (0.20) |
Class B Common Stock | ||||
Basic net loss per share: | ||||
Net loss | $ (5,377) | $ (4,068) | $ (4,130) | $ (17,444) |
Weighted-average shares used in calculating net loss per share, basic | 107,378 | 101,554 | 147,299 | 86,976 |
Basic net loss per share | $ (0.05) | $ (0.04) | $ (0.03) | $ (0.20) |
Diluted net loss per share: | ||||
Net loss attributable to common stockholders | $ (5,377) | $ (4,068) | $ (4,130) | $ (17,444) |
Allocation of undistributed loss | $ (5,377) | $ (4,068) | $ (4,130) | $ (17,444) |
Weighted-average shares used in calculating net loss per share, basic | 107,378 | 101,554 | 147,299 | 86,976 |
Number of shares used in diluted calculation | 107,378 | 101,554 | 147,299 | 86,976 |
Diluted net loss per share | $ (0.05) | $ (0.04) | $ (0.03) | $ (0.20) |
Net Income (Loss) Per Share -_2
Net Income (Loss) Per Share - Schedule of Potentially Dilutive Securities not Included in Diluted Per Share Calculations (Details) - shares shares in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities not included in diluted per share calculations | 34,022 | 38,701 |
Shares Subject to Outstanding Stock Options and Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities not included in diluted per share calculations | 32,972 | 37,153 |
Unvested Early Exercised Stock Options and Restricted Stock | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities not included in diluted per share calculations | 919 | 1,548 |
Shares Subject to Employee Stock Purchase Plan | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Potentially dilutive securities not included in diluted per share calculations | 131 |
Net Income (Loss) Per Share - A
Net Income (Loss) Per Share - Additional Information (Details) | Sep. 30, 2020$ / shares |
0.125% Convertible Senior Notes due 2025 | Conversion, On or After March 15, 2025 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |
Debt instrument, conversion price per share | $ 92.30 |