Snap (SNAP) 10-Q 8 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	SNAP
Entity Registrant Name	Snap Inc
Entity Central Index Key	1,564,408
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Class A Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		863,056,520
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		125,316,628
Class C Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		215,887,848

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 317,554	$ 150,121
Marketable securities	1,980,514	837,247
Accounts receivable, net of allowance	194,971	162,659
Prepaid expenses and other current assets	54,692	29,958
Total current assets	2,547,731	1,179,985
Property and equipment, net	143,112	100,585
Intangible assets, net	164,612	75,982
Goodwill	612,823	319,137
Other assets	74,102	47,103
Total assets	3,542,380	1,722,792
Current liabilities
Accounts payable	15,207	8,419
Accrued expenses and other current liabilities	280,957	148,325
Total current liabilities	296,164	156,744
Other liabilities	70,946	47,134
Total liabilities	367,110	203,878
Commitments and contingencies (Note 6)
Stockholders’ equity
Additional paid-in capital	7,470,272	2,728,823
Accumulated other comprehensive income (loss)	11,682	(2,057)
Accumulated deficit	(4,306,696)	(1,207,862)
Total stockholders’ equity	3,175,270	1,518,914
Total liabilities and stockholders’ equity	3,542,380	1,722,792
Convertible Voting Preferred Stock, Series A, A-1, and B
Stockholders’ equity
Preferred stock, value		1
Convertible Non-voting Preferred Stock, Series C
Stockholders’ equity
Preferred stock, value
Convertible Non-voting Preferred Stock, Series D, E, and F
Stockholders’ equity
Preferred stock, value		2
Series FP Convertible Voting Preferred Stock
Stockholders’ equity
Preferred stock, value		2
Class A Non-voting Common Stock
Stockholders’ equity
Common stock, value	9	$ 5
Class B Common Stock
Stockholders’ equity
Common stock, value	1
Class C Common Stock
Stockholders’ equity
Common stock, value	$ 2

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Convertible Voting Preferred Stock, Series A, A-1, and B
Preferred stock par value	$ 0.00001	$ 0.00001
Preferred stock authorized	0	146,962,000
Preferred stock issued	0	146,962,000
Preferred stock outstanding	0	146,962,000
Preferred stock liquidation preference		$ 95,175,000
Convertible Non-voting Preferred Stock, Series C
Preferred stock par value	$ 0.00001	$ 0.00001
Preferred stock authorized	0	16,000,000
Preferred stock issued	0	16,000,000
Preferred stock outstanding	0	16,000,000
Preferred stock liquidation preference		$ 54,543,000
Convertible Non-voting Preferred Stock, Series D, E, and F
Preferred stock par value	$ 0.00001	$ 0.00001
Preferred stock authorized	0	83,851,000
Preferred stock issued	0	83,851,000
Preferred stock outstanding	0	83,851,000
Series FP Convertible Voting Preferred Stock
Preferred stock par value	$ 0.00001	$ 0.00001
Preferred stock authorized	0	260,888,000
Preferred stock issued	0	215,888,000
Preferred stock outstanding	0	215,888,000
Class A Non-voting Common Stock
Common stock par value	$ 0.00001	$ 0.00001
Common stock authorized	3,000,000,000	1,500,000,000
Common stock issued	858,546,000	504,902,000
Common stock outstanding	858,546,000	504,902,000
Class B Common Stock
Common stock par value	$ 0.00001	$ 0.00001
Common stock authorized	700,000,000	1,500,000,000
Common stock issued	127,302,000	31,469,000
Common stock outstanding	127,302,000	31,469,000
Class C Common Stock
Common stock par value	$ 0.00001	$ 0.00001
Common stock authorized	260,888,000	260,888,000
Common stock issued	215,888,000	0
Common stock outstanding	215,888,000	0

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Revenue	$ 207,937	$ 128,204	$ 539,256	$ 238,800
Costs and expenses:
Cost of revenue	210,710	127,780	526,216	298,310
Research and development	239,442	54,562	1,301,025	118,712
Sales and marketing	101,511	34,658	412,147	73,982
General and administrative	118,101	42,172	1,424,480	98,444
Total costs and expenses	669,764	259,172	3,663,868	589,448
Loss from operations	(461,827)	(130,968)	(3,124,612)	(350,648)
Interest income	6,253	1,938	15,026	3,168
Interest expense	(887)	(648)	(2,580)	(648)
Other income (expense), net	1,002	(1,421)	1,975	(3,353)
Loss before income taxes	(455,459)	(131,099)	(3,110,191)	(351,481)
Income tax benefit (expense)	12,300	6,871	15,102	6,783
Net loss	$ (443,159)	$ (124,228)	$ (3,095,089)	$ (344,698)
Net loss per share attributable to Class A, Class B, and Class C common stockholders (Note 2):
Basic	$ (0.36)	$ (0.15)	$ (2.71)	$ (0.43)
Diluted	$ (0.36)	$ (0.15)	$ (2.71)	$ (0.43)

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (443,159)	$ (124,228)	$ (3,095,089)	$ (344,698)
Other comprehensive income (loss), net of tax
Unrealized gain (loss) on marketable securities, net of tax	485	(147)	(411)	251
Foreign currency translation	7,607	(1,016)	14,150	(530)
Total other comprehensive income (loss), net of tax	8,092	(1,163)	13,739	(279)
Total comprehensive income (loss)	$ (435,067)	$ (125,391)	$ (3,081,350)	$ (344,977)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net loss	$ (3,095,089)	$ (344,698)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	42,502	18,482
Stock-based compensation	2,458,851	25,075
Deferred income taxes	(14,397)	(7,231)
Excess inventory reserve and related asset impairment	21,997	0
Other	(3,714)	(360)
Change in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable, net of allowance	(24,513)	(78,488)
Prepaid expenses and other current assets	(48,965)	(14,926)
Other assets	(8,545)	450
Accounts payable	4,103	1,656
Accrued expenses and other current liabilities	103,449	(45,475)
Other liabilities	5,737	1,998
Net cash used in operating activities	(558,584)	(443,517)
Cash flows from investing activities
Purchases of property and equipment	(63,306)	(46,065)
Purchases of intangible assets	(8,025)	(572)
Non-marketable investments	(7,530)	(5,703)
Cash paid for acquisitions, net of cash acquired	(352,407)	(68,096)
Issuance of notes receivable from officers/stockholders	0	(15,000)
Repayment of notes receivables from officers/stockholders	0	15,000
Purchases of marketable securities	(3,412,776)	(1,358,295)
Sales of marketable securities	441,089	164,003
Maturities of marketable securities	1,831,327	180,805
Change in restricted cash	9,899	(7,048)
Net cash used in investing activities	(1,561,729)	(1,140,971)
Cash flows from financing activities
Proceeds from the exercise of stock options	6,855	576
Stock repurchases from employees for tax withholdings	(367,234)	0
Proceeds from issuance of Class A common stock in initial public offering, net of underwriting commissions	2,657,797	0
Repurchase of Class B voting common stock and Series FP voting preferred stock	0	(10,593)
Proceeds from issuances of preferred stock, net of issuance costs	0	1,157,147
Borrowings from revolving credit facility	0	5,000
Principal payments on revolving credit facility	0	(5,000)
Payments of initial public offering issuance costs	(9,672)	0
Net cash provided by financing activities	2,287,746	1,147,130
Change in cash and cash equivalents	167,433	(437,358)
Cash and cash equivalents, beginning of period	150,121	640,810
Cash and cash equivalents, end of period	317,554	203,452
Supplemental disclosures
Cash paid for income taxes	5,437	4
Supplemental disclosures of non-cash activities
Assumed equity awards in acquisitions	3,911	0
Purchase consideration liabilities related to acquisitions	11,772	17,042
Repurchase of Class B voting common stock and Series FP voting preferred stock in exchange for notes receivable from officers/stockholders	0	13,500
Construction in progress related to financing lease obligations	1,107	1,024
Net change in accounts payable and accrued expenses and other current liabilities related to property and equipment additions	(4,155)	2,395
Class B Common Stock
Cash flows from operating activities
Net loss	(561,713)	(42,329)
Supplemental disclosures of non-cash activities
Issuance of Class B common stock related to acquisitions	$ 0	$ 96,145

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies Snap Inc. is a camera company. Snap Inc. (“we,” “our,” or “us”) was formed as Future Freshman, LLC, a California limited liability company, in 2010. We changed our name to Toyopa Group, LLC in 2011, incorporated as Snapchat, Inc., a Delaware corporation, in 2012, and changed our name to Snap Inc. in 2016. Snap Inc. is headquartered in Venice, California. Our flagship product, Snapchat, is a camera application that was created to help people communicate through short videos and images called “Snaps.” Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Our consolidated financial statements include the accounts of Snap Inc. and our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Our fiscal year ends on December 31. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our prospectus dated March 1, 2017, as filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended (File No. 333-215866) (“Prospectus”). In our opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position, results of operations, and cash flows. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017. Other than described below, there have been no changes to our significant accounting policies described in our Prospectus that have had a material impact on our consolidated financial statements and related notes. Initial Public Offering In March 2017, we completed our initial public offering (“IPO”) in which we issued and sold 160.3 million shares of Class A common stock, inclusive of the over-allotment, at a public offering price of $17.00 per share and excluding shares sold in the IPO by certain of our existing stockholders. We received net proceeds of $2.6 billion after deducting underwriting discounts and commissions of $68.1 million and other offering expenses of $14.7 million. On the closing of the IPO, all shares of our then-outstanding convertible preferred stock other than Series FP preferred stock automatically converted into an aggregate of 246.8 million shares of Class B common stock and all outstanding shares of Series FP preferred stock automatically converted into 215.9 million shares of Class C common stock. Following the IPO, we have three classes of authorized common stock – Class A common stock, Class B common stock, and Class C common stock. Restricted stock units (“RSUs”) granted to employees before January 1, 2017 (“Pre-2017 RSUs”) included both service-based and performance conditions to vest in the underlying common stock. The performance condition related to these awards was satisfied on the effectiveness of the registration statement for our IPO, which occurred in March 2017. On the effectiveness of the registration statement for our IPO, we recognized $1.3 billion of stock-based compensation expense for Pre-2017 RSUs. To meet the related tax withholding requirements, we withheld 12.1 million of the 26.7 million shares of common stock issued. Based on the public offering price of $17.00 per share, the tax withholding obligation for these vested Pre-2017 RSUs was $206.6 million. In addition, on the closing of the IPO, our Chief Executive Officer (“CEO”) received an RSU award (“CEO award”) for 37.4 million shares of Series FP preferred stock, which automatically converted into an equivalent number of shares of Class C common stock on the closing of the IPO. The CEO award represented 3.0% of all outstanding shares on the closing of the IPO, including shares sold by us in the IPO and vested stock options and RSUs, net of shares withheld to satisfy tax withholding obligations, on the closing of the IPO. The CEO award vested immediately on the closing of the IPO, and such shares will be delivered to the CEO in equal quarterly installments over three years beginning in the third full calendar quarter following the IPO. There is no continuing service requirement for our CEO. The stock-based compensation expense recognized related to the CEO award was $636.6 million, which is based on the vesting of 37.4 million shares of Class C common stock on the closing of the IPO, at the public offering price of $17.00 per share. The future tax benefits on settlement of the above RSUs is not expected to be material as currently we have established valuation allowances to reduce our net deferred tax assets to the amount that is more likely than not to be realized. The majority of the future tax benefits that arise on settlement of the above RSUs are in jurisdictions for which our net deferred tax assets have a full valuation allowance. Use of Estimates The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements. Management’s estimates are based on historical information available as of the date of the consolidated financial statements and various other assumptions that we believe are reasonable under the circumstances. Actual results could differ from those estimates. Key estimates relate primarily to determining the fair value of assets and liabilities assumed in business combinations, evaluation of contingencies, uncertain tax positions, excess inventory reserves, and the fair value of stock-based awards. On an ongoing basis, management evaluates our estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. Excess Inventory and Related Charges During the third quarter of 2017, based on management’s updated assessment, we recorded $39.9 million of charges related to Spectacles inventory. The charges were composed of $19.5 million of excess inventory reserves, $17.9 million of inventory purchase commitment cancellation charges, and $2.5 million of asset impairments. As of September 30, 2017, there was $2.6 million of Spectacles inventory included in prepaid expenses and other current assets. Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Revenue Recognition, The most significant aspect of our evaluation of Topic 606 related to ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). We do not expect the new standard to have a material impact on our consolidated financial statements. We will adopt Topic 606 during the first quarter of 2018. We plan to use the modified retrospective transition method.

Net Loss per Share

Net Loss per Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Net Loss per Share	2. Net Loss per Share We compute net loss per share using the two-class method required for multiple classes of common stock and participating securities. Our participating securities include any shares issued on the early exercise of stock options subject to repurchase because holders of such shares have non-forfeitable dividend rights in the event a dividend is paid on common stock. Before the IPO, our participating securities also included Series D, E, F, and FP preferred stock and Series A, A-1, B, and C convertible preferred stock. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock, and the Series D, E, F, and FP preferred stock were substantially identical, other than voting rights. Accordingly, the Class A common stock, Class B common stock, and the Series D, E, F, and FP shared equally in our net losses. The holders of early exercised shares subject to repurchase and the holders of Series A, A-1, B, and C convertible preferred stock did not have a contractual obligation to share in our losses, and as a result our net losses were not allocated to these participating securities. In connection with our IPO, our Series D, E, and F preferred stock converted on a one-to-one basis into Class B common stock, and our Series FP preferred stock converted on a one-to-one basis into Class C common stock. The liquidation and dividend rights of the aforementioned preferred series are substantially identical to the rights of the common classes into which they converted. Accordingly, we have presented the Series D, E, and F preferred stock outstanding before the IPO together with the Class B common stock, and the Series FP preferred stock outstanding before the IPO together with the Class C common stock for purposes of calculating net loss per share. The prior period presentation has been adjusted to conform to our current period presentation. Also in connection with our IPO, our Series A, A-1, B, and C preferred stock converted on a one-to-one basis into Class B common stock. The shares of Class B common stock that resulted from the conversion of the Series A, A-1, B, and C preferred stock are weighted in the denominator of net loss per share for Class B common stock for the portion of the time outstanding subsequent to our IPO. Basic net loss per share is computed by dividing net loss attributable to each class of stockholders by the weighted-average number of shares of stock outstanding during the period. Vested RSUs that have not been settled, including the vested CEO award, have been included in the appropriate common share class used to calculate basic net loss per share. For the calculation of diluted net loss per share, net loss per share attributable to common stockholders for basic net loss per share is adjusted by the effect of dilutive securities, including awards under our equity compensation plans. Diluted net loss per share attributable to common stockholders is computed by dividing the resulting net loss attributable to common stockholders by the weighted-average number of fully diluted common shares outstanding. For the three and nine months ended September 30, 2017 and 2016 our potential dilutive shares relating to stock options, RSUs, and common stock subject to repurchase, and, for the 2016 periods, shares of convertible Series A, A-1, B, and C preferred stock were not included in the computation of diluted net loss per share as the effect of including these shares in the calculation would have been anti-dilutive. The numerators and denominators of the basic and diluted net loss per share computations for our common stock are calculated as follows for the three and nine months ended September 30, 2017 and 2016: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands, except per share data) Class A Common (1) Class B Common (2) Class C Common (3) Class A Common Class B Common (2) Class C Common (3) Class A Common (1) Class B Common (2) Class C Common (3) Class A Common Class B Common (2) Class C Common (3) Numerator: Net loss $ (289,818 ) $ (62,288 ) $ (91,053 ) $ (74,874 ) $ (17,097 ) $ (32,257 ) $ (1,869,782 ) $ (561,713 ) $ (663,594 ) $ (208,815 ) $ (42,329 ) $ (93,554 ) Net loss attributable to common stockholders $ (289,818 ) $ (62,288 ) $ (91,053 ) $ (74,874 ) $ (17,097 ) $ (32,257 ) $ (1,869,782 ) $ (561,713 ) $ (663,594 ) $ (208,815 ) $ (42,329 ) $ (93,554 ) Denominator: Basic shares: Weighted-average common shares - Basic 806,353 173,304 253,336 501,700 114,562 216,139 688,690 206,894 244,420 483,821 98,076 216,763 Diluted shares: Weighted-average common shares - Diluted 806,353 173,304 253,336 501,700 114,562 216,139 688,690 206,894 244,420 483,821 98,076 216,763 Net loss per share attributable to common stockholders: Basic $ (0.36 ) $ (0.36 ) $ (0.36 ) $ (0.15 ) $ (0.15 ) $ (0.15 ) $ (2.71 ) $ (2.71 ) $ (2.71 ) $ (0.43 ) $ (0.43 ) $ (0.43 ) Diluted $ (0.36 ) $ (0.36 ) $ (0.36 ) $ (0.15 ) $ (0.15 ) $ (0.15 ) $ (2.71 ) $ (2.71 ) $ (2.71 ) $ (0.43 ) $ (0.43 ) $ (0.43 ) (1) Class A common stock includes the issuance of 160.3 million shares of Class A common stock issued by us in connection with our IPO. (2) Included in the Class B common stock, for all periods presented, is Series D, E, and F preferred stock, which automatically converted to Class B common stock on the closing of the IPO. Series A, A-1, B, and C preferred stock are included in Class B common stock on the automatic conversion of such shares to 163.0 million shares of Class B common stock on the closing of the IPO. (3) Included in the Class C common stock, for all periods presented, is Series FP preferred stock which automatically converted to Class C common stock on the closing of the IPO. Additionally, 37.4 million shares of Class C common stock related to the CEO award are included in Class C common stock on the closing of the IPO. The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented: Three and Nine Months Ended September 30, 2017 2016 (in thousands) Convertible voting preferred stock, Series A, A-1 and B — 146,962 Convertible non-voting preferred stock, Series C — 16,000 Stock options 31,106 46,198 Unvested RSUs not subject to a performance condition 169,719 188 Shares subject to repurchase — 540

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stockholders' Equity	3. Stockholders’ Equity We maintain three share-based employee compensation plans: the 2017 Equity Incentive Plan (“2017 Plan”), the 2014 Equity Incentive Plan (“2014 Plan”), and the 2012 Equity Incentive Plan (“2012 Plan”, and collectively with the 2017 Plan and the 2014 Plan, the “Stock Plans”). In January 2017, our board of directors adopted the 2017 Plan, and in February 2017 our stockholders approved the 2017 Plan, effective on March 1, 2017, which serves as the successor to the 2014 Plan and 2012 Plan and provides for the grant of incentive stock options to employees, including employees of any parent or subsidiary, and for the grant of nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, performance cash awards, and other forms of stock awards to employees, directors, and consultants, including employees and consultants of our affiliates. We do not expect to grant any additional awards under the 2014 Plan or 2012 Plan as of the effective date of the 2017 Plan, other than awards for up to 2,500,000 shares of Class A common stock to our employees and consultants in France under the 2014 Plan. Outstanding awards under the 2014 Plan and 2012 Plan continue to be subject to the terms and conditions of the 2014 Plan and 2012 Plan, respectively. Shares available for grant under the 2014 Plan and 2012 Plan, which were reserved but not issued or subject to outstanding awards under the 2014 Plan or 2012 Plan, respectively, as of the effective date of the 2017 Plan, were added to the reserves of the 2017 Plan. We have initially reserved 87,270,108 shares of our Class A common stock for future issuance under the 2017 Plan. An additional number of shares of Class A common stock will be added to the 2017 Plan equal to (i) 96,993,064 shares of Class A common stock reserved for future issuance pursuant to outstanding stock options and unvested RSUs under the 2014 Plan, (ii) 37,228,865 shares of Class A common stock issuable on conversion of Class B common stock underlying stock options and unvested RSUs outstanding the 2012 Plan, (iii) 17,858,235 shares of Class A common stock that were reserved for issuance under the 2014 Plan as of the date the 2017 Plan became effective, (iv) 11,004,580 shares of Class A common stock issuable on conversion Class B common stock that were reserved for issuance under the 2012 Plan as of the date the 2017 Plan became effective, and (v) a maximum of 86,737,997 shares of Class A common stock that will be added pursuant to the following sentence. With respect to each share that returns to the 2017 Plan pursuant to (i) and (ii) of the prior sentence that was associated with an award that was outstanding under the 2014 Plan and 2012 Plan as of October 31, 2016, an additional share of Class A common stock will be added to the share reserve of the 2017 Plan, up to a maximum of 86,737,997 shares st In July 2017, we acquired Placed, Inc. (“Placed”), an advertising measurement services company. See Note 4 for additional information. In connection with the Placed acquisition, we assumed the outstanding stock options under Placed, Inc.’s 2011 Equity Incentive Plan, as amended. Additionally, we granted restricted stock, which was not issued under any existing Snap or Placed equity incentive plans and will settle in shares of Class A common stock. The following table summarizes the restricted stock activity during the nine months ended September 30, 2017: Class A Outstanding Restricted Stock Class B Outstanding Restricted Stock Weighted- Average Grant Date Fair Value per Restricted Stock (in thousands, except per share data) Unvested at December 31, 2016 152,114 28,581 $ 15.50 Granted (1) 50,770 — $ 16.78 Vested (34,577 ) (16,777 ) $ 14.94 Forfeited (10,026 ) (366 ) $ 17.15 Unvested at September 30, 2017 158,281 11,438 $ 15.95 (1) Includes 1.4 million restricted stock granted in connection with the Placed acquisition. Total unrecognized compensation cost related to Pre-2017 RSUs was $818.1 million as of September 30, 2017 and is expected to be recognized over a weighted-average period of 2.7 years. All RSUs granted after December 31, 2016 vest on the satisfaction of only a service-based condition (“Post-2017 RSUs”). Total unrecognized compensation cost related to Post-2017 RSUs, including awards granted in connection with the Placed acquisition, was $658.1 million as of September 30, 2017 and is expected to be recognized over a weighted-average period of 4.5 years. The service condition is generally satisfied over four years, 10% after the first year of service, 20% over the second year, 30% over the third year, and 40% over the fourth year. In limited instances, we have issued Post-2017 RSUs with vesting periods in excess of four years. For the nine months ended September 30, 2017, for RSUs issued to employees, we withheld 23.8 million shares of common stock (“net settlement”) and remitted $370.9 million in cash to meet the related tax withholding requirements on behalf of our employees. We will continue to evaluate the net settlement of RSUs that vest in the future. The table below presents stock option awards that entitle the holder to an additional share of Class A common stock on exercise. The total stock options granted and underlying common stock fair value do not give effect to the additional Class A common stock. The following table summarizes the stock option award activity under the Stock Plans during the nine months ended September 30, 2017: Class A Number of Shares Class B Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (1) (in thousands, except per share data) Outstanding at December 31, 2016 1,266 21,186 $ 2.26 6.97 $ 682,565 Granted and assumed (2) 550 — $ 0.64 — $ — Exercised (192 ) (6,978 ) $ 0.96 — $ — Forfeited (4 ) — $ 0.72 — $ — Outstanding at September 30, 2017 1,620 14,208 $ 2.71 6.34 $ 409,287 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the assessed fair value of our common stock as of December 31, 2016 or the closing market price of our Class A common stock as of September 30, 2017. (2) Amount includes assumed options from Placed, Inc.’s 2011 Equity Incentive Plan, as amended, which are not entitled to an additional share of Class A common stock on exercise. Total unrecognized compensation cost related to stock options granted and assumed was $36.4 million as of September 30, 2017 Stock-Based Compensation Expense by Function Total stock-based compensation expense by function is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Cost of revenue $ 1,951 $ 128 $ 23,882 $ 410 Research and development 143,303 12,138 1,025,231 17,486 Sales and marketing 27,254 1,251 207,538 2,579 General and administrative 49,194 1,278 1,202,200 4,600 Total $ 221,702 $ 14,795 $ 2,458,851 $ 25,075 2017 Employee Stock Purchase Plan In January 2017, our board of directors adopted the 2017 Employee Stock Purchase Plan (“2017 ESPP”). Our stockholders approved the 2017 ESPP in February 2017. The 2017 ESPP became effective in connection with the IPO. A total of 16,484,690 shares of Class A common stock were initially reserved for issuance under the 2017 ESPP. No shares of our Class A common stock have been purchased under the 2017 ESPP. The number of shares of our Class A common stock reserved for issuance will automatically increase on January 1st of each calendar year, beginning on January 1, 2018 through January 1, 2027, by the lesser of (1) 1.0% of the total number of shares of our common stock outstanding on the last day of the calendar month before the date of the automatic increase, and (2) 15,000,000 shares; provided that before the date of any such increase, our board of directors may determine that such increase will be less than the amount set forth in clauses (1) and (2).

Business Acquisitions

Business Acquisitions	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
Business Acquisitions	4. Business Acquisitions Placed, Inc. In July 2017, we acquired Placed, Inc. (“Placed”), a location-based measurement services company. The purpose of the acquisition was to enhance our measurement capabilities. The total consideration was $185.9 million, of which $139.6 million represents purchase consideration and includes $135.2 million in cash paid to sellers, $3.9 million for the fair value of assumed options, and $0.5 million of liabilities due to the sellers. The remaining $46.3 million of total consideration transferred represents compensation for future employment services. The allocation of purchase price is preliminary and is subject to additional information related to the liabilities that existed as of the acquisition date. The preliminary allocation of the total purchase consideration for this acquisition is estimated as follows: Total (in thousands) Cash $ 6,919 Trademarks 2,700 Technology 22,400 Customer relationships 11,800 Goodwill 103,995 Net deferred tax liability (13,520 ) Other assets acquired and liabilities assumed, net 5,296 Total $ 139,590 The goodwill amount represents synergies related to our existing platform expected to be realized from this business combination and assembled workforce. The associated goodwill and intangible assets are not deductible for tax purposes. Zenly SAS In May 2017, we acquired Zenly SAS, a company that develops a location-based application that allows users to see where their friends are on a map. The purpose of the acquisition was to enhance the functionality of our platform. The total consideration paid was $213.3 million in cash, of which $196.1 million represents purchase consideration and includes $186.8 million in cash paid to the sellers and $9.3 million of liabilities due to the sellers. The remaining $17.2 million of total consideration transferred represents compensation for future employment services. The allocation of purchase price is preliminary and is subject to additional information related to the liabilities that existed as of the acquisition date. The preliminary allocation of the total purchase consideration for this acquisition is estimated as follows: Total (in thousands) Cash $ 22,610 Technology 23,000 Goodwill 154,353 Net deferred tax liability (2,418 ) Other assets acquired and liabilities assumed, net (1,428 ) Total $ 196,117 The goodwill amount represents synergies related to our existing platform expected to be realized from this business combination and assembled workforce. The associated goodwill and intangible assets are not deductible for tax purposes. Other Acquisitions In June 2017, we acquired a component of a business from a social advertising software company that was integrated with our existing advertising platform and adds advertising tools to our advertising customers. In addition, in March 2017, we acquired all outstanding shares of a company that operates a cloud hosted platform for building content online. The company was acquired to enhance the functionality of our platform. The total purchase consideration for these acquisitions was $62.1 million, which included $60.2 million in cash and $1.9 million recorded in other liabilities on the consolidated balance sheets. The allocation of the total purchase consideration for the above acquisitions is as follows: Total (in thousands) Technology $ 39,000 Customer relationships 500 Goodwill 24,135 Net deferred tax liability (1,710 ) Other assets acquired and liabilities assumed, net 200 Total $ 62,125 The goodwill amount represents synergies related to our existing platform expected to be realized from these business combinations and assembled workforce. Of the technology intangible assets and goodwill in the above table, $30.5 million and $11.5 million is deductible for tax purposes, respectively. Additional Information on 2017 Acquisitions For all acquisitions in 2017, we provided for a combined $147.5 million in the form of RSUs to certain continuing employees of the companies in exchange for future service. In addition, unaudited pro forma results of operations assuming the above acquisitions had taken place at the beginning of each period are not provided because the historical operating results of the acquired entities were not material and pro forma results would not be materially different from reported results for the periods presented.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	5. Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the nine months ended September 30, 2017 are as follows: Goodwill (in thousands) Balance as of December 31, 2016 $ 319,137 Goodwill acquired 282,483 Foreign currency translation 11,203 Balance as of September 30, 2017 $ 612,823 Intangible assets consisted of the following: September 30, 2017 Weighted- Average Remaining Useful Life - Years Gross Carrying Amount Accumulated Amortization Net (in thousands except years) Domain names 2.4 $ 5,336 $ 2,936 $ 2,400 Trademarks 2.6 5,772 2,355 3,417 Acquired developed technology 4.8 169,555 37,216 132,339 Customer relationships 2.2 13,953 2,150 11,803 Patents 8.0 17,150 2,497 14,653 $ 211,766 $ 47,154 $ 164,612 December 31, 2016 Weighted- Average Remaining Useful Life - Years Gross Carrying Amount Accumulated Amortization Net (in thousands except years) Domain names 3.0 $ 5,000 $ 2,157 $ 2,843 Trademarks 2.6 3,072 1,829 1,243 Non-compete agreements 0.3 243 226 17 Acquired developed technology 4.1 83,137 20,569 62,568 Customer relationships 1.0 3,752 2,569 1,183 Patents 9.2 9,450 1,322 8,128 $ 104,654 $ 28,672 $ 75,982 Amortization of intangible assets was $9.7 million and $4.5 million for the three months ended September 30, 2017 and 2016, respectively, and $20.9 million and $11.4 million for the nine months ended September 30, 2017 and 2016, respectively. As of September 30, 2017, the estimated intangible asset amortization expense for the next five years and thereafter is as follows: Estimated Amortization (in thousands) Remainder of 2017 $ 10,222 2018 39,723 2019 35,897 2020 29,515 2021 22,588 Thereafter 26,667 Total $ 164,612

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies Commitments Leases We entered into various non-cancelable lease agreements for certain of our offices with original lease periods expiring between 2017 and 2027. Certain of the arrangements have free rent periods or escalating rent payment provisions. We recognize rent expense under such arrangements on a straight-line basis. Our future minimum lease payments required under these non-cancelable operating lease obligations as of September 30, 2017, are as follows: Operating Leases (in thousands) Remainder of 2017 $ 10,221 2018 49,415 2019 58,211 2020 58,531 2021 57,089 Thereafter 190,106 Total minimum lease payments $ 423,573 Operating lease expenses for the three months ended September 30, 2017 and 2016 were $13.5 and $5.6, respectively, and $38.2 million and $16.3 million for the nine months ended September 30, 2017 and 2016, respectively. We have several lease agreements where we are deemed the owner under build-to-suit lease accounting. The fair value of the leased property and corresponding financing obligations are included in property and equipment, net and other liabilities, respectively, on our consolidated balance sheets as of September 30, 2017. Our future minimum lease payments required under non-cancelable financing lease obligations, which exclusively relate to our build-to-suit leases, as of September 30, 2017, are as follows: Financing Leases (in thousands) Remainder of 2017 $ 1,170 2018 4,726 2019 4,796 2020 4,947 2021 5,091 Thereafter 25,953 Total minimum lease payments $ 46,683 We recognize an increase in the fair value of the asset as additional building costs are incurred during the construction period and a corresponding increase in the lease financing obligation for any construction costs to be reimbursed by the landlord. As of September 30, 2017, $15.9 million of lease financing obligations are included in other liabilities on our consolidated balance sheets. Contractual Commitments We have non-cancelable contractual agreements related to the hosting of our data storage processing, storage, and other computing services. In January 2017, we entered into the Google Cloud Platform License Agreement that was amended in September 2017. Under the agreement, we were granted a license to access and use certain cloud services. The agreement has an initial term of five years and we are required to purchase at least $400.0 million of cloud services in each year of the agreement, though for each of the first four years, up to 15% of this amount may be moved to a subsequent year. If we fail to meet the minimum purchase commitment during any year, we are required to pay the difference. In March 2016, we entered into the AWS Enterprise Agreement for the use of cloud services from Amazon Web Services, Inc. (“AWS”) that was amended in March 2016, and again in February 2017. Such agreement will continue indefinitely until terminated by either party. Under the February 2017 addendum to the agreement, we committed to spend $1.0 billion between January 2017 and December 2021 on AWS services ($50.0 million in 2017, $125.0 million in 2018, $200.0 million in 2019, $275.0 million in 2020, and $350.0 million in 2021). If we fail to meet the minimum purchase commitment during any year, we are required to pay the difference. Any such payment may be applied to future use of AWS services during the addendum term, although it will not count towards meeting the future minimum purchase commitments under the addendum. We also have various other non-cancelable contractual commitments related to purchase agreements. During the third quarter of 2017, based on management’s updated assessment, we recorded $39.9 million of charges related to Spectacles inventory. The charges were primarily related to excess inventory reserves and inventory purchase commitment cancellation charges. As of September 30, 2017, there are no material hardware inventory commitments. The future minimum contractual commitment including commitments less than one year, as of September 30, 2017 for each of the next five years are as follows: Minimum Commitment (in thousands) Remainder of 2017 $ 137,486 2018 535,666 2019 603,787 2020 675,000 2021 750,000 Thereafter 33,333 Total minimum commitments $ 2,735,272 Contingencies We record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We also disclose material contingencies when we believe a loss is not probable but reasonably possible. Accounting for contingencies requires us to use judgment related to both the likelihood of a loss and the estimate of the amount or range of loss. Many legal and tax contingencies can take years to be resolved. Pending Matters In April 2016, an individual filed a lawsuit against us and another individual after he was injured in a car accident. The plaintiff alleges that we are liable because the other individual was supposedly using our “speed filter” at the time of the collision. In January 2017, the court dismissed the claim against us. This matter is currently on appeal. Beginning in May 2017, we, certain of our officers and directors, and the underwriters for our IPO were named as defendants in securities class actions purportedly brought on behalf of purchasers of our Class A common stock, alleging violation of securities laws in connection with our IPO. Management believes these lawsuits are without merit and intend to vigorously defend them. Based on the preliminary nature of the proceedings in this case, the outcome of this matter remains uncertain. The outcomes of our legal proceedings are inherently unpredictable, subject to significant uncertainties, and could be material to our financial condition, results of operations, and cash flows for a particular period. For the pending matters described above, it is not possible to estimate the reasonably possible loss or range of loss. We are subject to various other legal proceedings and claims in the ordinary course of business, including certain patent, trademark, and privacy matters. Although occasional adverse decisions or settlements may occur, we do not believe that the final disposition of any of our other pending matters will seriously harm our business, financial condition, results of operations, and cash flows. Settlement In September 2014, two individuals filed a lawsuit against us and our two founders in the Superior Court of California for Los Angeles County. The complaint alleged two causes of action—common-law right of publicity and statutory right of publicity—based on allegations that the defendants improperly used the plaintiffs’ images in promoting Snapchat for Android. In May 2017, the parties entered into a settlement agreement that resolved all claims among the parties. The settlement was not material. In June 2017, the parties filed a stipulation of dismissal with the court. Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, investors, directors, officers, employees, and other parties with respect to certain matters. Indemnification may include losses from our breach of such agreements, services we provide, or third party intellectual property infringement claims. These indemnifications may survive termination of the underlying agreement and the maximum potential amount of future indemnification payments may not be subject to a cap. We have not incurred material costs to defend lawsuits or settle claims related to these indemnifications as of September 30, 2017. We believe the fair value of these liabilities is immaterial and accordingly have no liabilities recorded for these agreements at September 30, 2017.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	7. Fair Value Measurements We determine the fair value of our marketable securities using quoted market prices. The following table sets forth our financial assets as of September 30, 2017 and December 31, 2016 that are measured at fair value on a recurring basis during the period: Fair Value September 30, 2017 December 31, 2016 (in thousands) Cash and cash equivalents Cash $ 186,056 $ 150,121 U.S. government securities 50,260 — U.S. government agency securities 81,238 — Total cash and cash equivalents $ 317,554 $ 150,121 Marketable securities U.S. government securities $ 1,448,732 $ 505,333 U.S. government agency securities 531,782 331,914 Total marketable securities $ 1,980,514 $ 837,247 Gross unrealized gains and losses for cash equivalents and marketable securities as of September 30, 2017 and December 31, 2016 were not material. The amortized cost of U.S. government securities with maturities less than one year was $1.4 billion and $502.4 million as of September 30, 2017 and December 31, 2016, respectively. The amortized cost of U.S. government securities with maturities between one and five years was zero and $3.0 million as of September 30, 2017 and December 31, 2016, respectively. The amortized cost of U.S. government agency securities with maturities of less than a year was $531.8 million and $284.7 million as of September 30, 2017 and December 31, 2016, respectively. The amortized cost of U.S. government agency securities with maturities between one and five years was zero and $47.2 million as of September 30, 2017 and December 31, 2016, respectively.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	8. Income Taxes Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items arising in that quarter. Our effective tax rate differs from the U.S. statutory tax rate primarily due to valuation allowances on our deferred tax assets as it is more likely than not that some or all of our deferred tax assets will not be realized. Income tax benefit was $12.3 million and $15.1 million for the three and nine months ended September 30, 2017, respectively, as compared to a tax benefit of $6.9 million and $6.8 million for the three and nine months ended September 30, 2016, respectively. The income tax benefits for all periods were primarily from the partial releases of valuation allowances against our net deferred tax assets. The valuation allowance releases were the result of net deferred tax liabilities originating from acquisitions that were an available source of income to realize a portion of our deferred tax assets.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 30, 2017
Accumulated Other Comprehensive Income Loss [Abstract]
Accumulated Other Comprehensive Income (Loss)	9. Accumulated Other Comprehensive Income (Loss) The table below presents the changes in accumulated other comprehensive income (loss) (“AOCI”) by component and the reclassifications out of AOCI: Changes in Accumulated Other Comprehensive Income (Loss) by Component Marketable Securities Foreign Currency Translation Total (in thousands) Balance at December 31, 2016 $ 44 $ (2,101 ) $ (2,057 ) OCI before reclassifications (1) (422 ) 14,150 13,728 Amounts reclassified from AOCI (2) 11 — 11 Net current period OCI (411 ) 14,150 13,739 Balance at September 30, 2017 $ (367 ) $ 12,049 $ 11,682 (1) The associated income tax effects for gains / losses on marketable securities were not material. (2) Realized gains and losses on marketable securities are reclassified from AOCI into other income (expense), net in the consolidated statements of operations.

Geographic Information

Geographic Information	9 Months Ended
	Sep. 30, 2017
Segments Geographical Areas [Abstract]
Geographic Information	10. Geographic Information Revenue by geography is based on the billing address of the advertiser. The following tables list revenue and property and equipment, net by geographic area: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Revenue: United States $ 162,780 $ 111,809 $ 432,201 $ 210,862 Rest of the world (1) 45,157 16,395 107,055 27,938 Total revenue $ 207,937 $ 128,204 $ 539,256 $ 238,800 (1) No individual country exceeded 10% of our total revenue for any period presented. As of September 30, 2017 As of December 31, 2016 (in thousands) Property and equipment, net: United States $ 126,232 $ 98,254 Rest of the world (1) 16,880 2,331 Total property and equipment, net $ 143,112 $ 100,585 (1) No individual country exceeded 10% of our total property and equipment, net for any period presented.

Summary of Significant Accoun17

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Our consolidated financial statements include the accounts of Snap Inc. and our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Our fiscal year ends on December 31. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our prospectus dated March 1, 2017, as filed with the SEC pursuant to Rule 424(b) under the Securities Act of 1933, as amended (File No. 333-215866) (“Prospectus”). In our opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position, results of operations, and cash flows. The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results to be expected for the year ending December 31, 2017. Other than described below, there have been no changes to our significant accounting policies described in our Prospectus that have had a material impact on our consolidated financial statements and related notes.
Initial Public Offering	Initial Public Offering In March 2017, we completed our initial public offering (“IPO”) in which we issued and sold 160.3 million shares of Class A common stock, inclusive of the over-allotment, at a public offering price of $17.00 per share and excluding shares sold in the IPO by certain of our existing stockholders. We received net proceeds of $2.6 billion after deducting underwriting discounts and commissions of $68.1 million and other offering expenses of $14.7 million. On the closing of the IPO, all shares of our then-outstanding convertible preferred stock other than Series FP preferred stock automatically converted into an aggregate of 246.8 million shares of Class B common stock and all outstanding shares of Series FP preferred stock automatically converted into 215.9 million shares of Class C common stock. Following the IPO, we have three classes of authorized common stock – Class A common stock, Class B common stock, and Class C common stock. Restricted stock units (“RSUs”) granted to employees before January 1, 2017 (“Pre-2017 RSUs”) included both service-based and performance conditions to vest in the underlying common stock. The performance condition related to these awards was satisfied on the effectiveness of the registration statement for our IPO, which occurred in March 2017. On the effectiveness of the registration statement for our IPO, we recognized $1.3 billion of stock-based compensation expense for Pre-2017 RSUs. To meet the related tax withholding requirements, we withheld 12.1 million of the 26.7 million shares of common stock issued. Based on the public offering price of $17.00 per share, the tax withholding obligation for these vested Pre-2017 RSUs was $206.6 million. In addition, on the closing of the IPO, our Chief Executive Officer (“CEO”) received an RSU award (“CEO award”) for 37.4 million shares of Series FP preferred stock, which automatically converted into an equivalent number of shares of Class C common stock on the closing of the IPO. The CEO award represented 3.0% of all outstanding shares on the closing of the IPO, including shares sold by us in the IPO and vested stock options and RSUs, net of shares withheld to satisfy tax withholding obligations, on the closing of the IPO. The CEO award vested immediately on the closing of the IPO, and such shares will be delivered to the CEO in equal quarterly installments over three years beginning in the third full calendar quarter following the IPO. There is no continuing service requirement for our CEO. The stock-based compensation expense recognized related to the CEO award was $636.6 million, which is based on the vesting of 37.4 million shares of Class C common stock on the closing of the IPO, at the public offering price of $17.00 per share. The future tax benefits on settlement of the above RSUs is not expected to be material as currently we have established valuation allowances to reduce our net deferred tax assets to the amount that is more likely than not to be realized. The majority of the future tax benefits that arise on settlement of the above RSUs are in jurisdictions for which our net deferred tax assets have a full valuation allowance.
Use of Estimates	Use of Estimates The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements. Management’s estimates are based on historical information available as of the date of the consolidated financial statements and various other assumptions that we believe are reasonable under the circumstances. Actual results could differ from those estimates. Key estimates relate primarily to determining the fair value of assets and liabilities assumed in business combinations, evaluation of contingencies, uncertain tax positions, excess inventory reserves, and the fair value of stock-based awards. On an ongoing basis, management evaluates our estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities.
Excess Inventory and Related Charges	Excess Inventory and Related Charges During the third quarter of 2017, based on management’s updated assessment, we recorded $39.9 million of charges related to Spectacles inventory. The charges were composed of $19.5 million of excess inventory reserves, $17.9 million of inventory purchase commitment cancellation charges, and $2.5 million of asset impairments. As of September 30, 2017, there was $2.6 million of Spectacles inventory included in prepaid expenses and other current assets.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805) Clarifying the Definition of a Business In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfer of Assets Other than Inventory In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Revenue Recognition, The most significant aspect of our evaluation of Topic 606 related to ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). We do not expect the new standard to have a material impact on our consolidated financial statements. We will adopt Topic 606 during the first quarter of 2018. We plan to use the modified retrospective transition method.

Net Loss per Share (Tables)

Net Loss per Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Numerators and Denominators of Basic and Diluted Net Loss per Share Computations for Common Stock	The numerators and denominators of the basic and diluted net loss per share computations for our common stock are calculated as follows for the three and nine months ended September 30, 2017 and 2016: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands, except per share data) Class A Common (1) Class B Common (2) Class C Common (3) Class A Common Class B Common (2) Class C Common (3) Class A Common (1) Class B Common (2) Class C Common (3) Class A Common Class B Common (2) Class C Common (3) Numerator: Net loss $ (289,818 ) $ (62,288 ) $ (91,053 ) $ (74,874 ) $ (17,097 ) $ (32,257 ) $ (1,869,782 ) $ (561,713 ) $ (663,594 ) $ (208,815 ) $ (42,329 ) $ (93,554 ) Net loss attributable to common stockholders $ (289,818 ) $ (62,288 ) $ (91,053 ) $ (74,874 ) $ (17,097 ) $ (32,257 ) $ (1,869,782 ) $ (561,713 ) $ (663,594 ) $ (208,815 ) $ (42,329 ) $ (93,554 ) Denominator: Basic shares: Weighted-average common shares - Basic 806,353 173,304 253,336 501,700 114,562 216,139 688,690 206,894 244,420 483,821 98,076 216,763 Diluted shares: Weighted-average common shares - Diluted 806,353 173,304 253,336 501,700 114,562 216,139 688,690 206,894 244,420 483,821 98,076 216,763 Net loss per share attributable to common stockholders: Basic $ (0.36 ) $ (0.36 ) $ (0.36 ) $ (0.15 ) $ (0.15 ) $ (0.15 ) $ (2.71 ) $ (2.71 ) $ (2.71 ) $ (0.43 ) $ (0.43 ) $ (0.43 ) Diluted $ (0.36 ) $ (0.36 ) $ (0.36 ) $ (0.15 ) $ (0.15 ) $ (0.15 ) $ (2.71 ) $ (2.71 ) $ (2.71 ) $ (0.43 ) $ (0.43 ) $ (0.43 ) (1) Class A common stock includes the issuance of 160.3 million shares of Class A common stock issued by us in connection with our IPO. (2) Included in the Class B common stock, for all periods presented, is Series D, E, and F preferred stock, which automatically converted to Class B common stock on the closing of the IPO. Series A, A-1, B, and C preferred stock are included in Class B common stock on the automatic conversion of such shares to 163.0 million shares of Class B common stock on the closing of the IPO. (3) Included in the Class C common stock, for all periods presented, is Series FP preferred stock which automatically converted to Class C common stock on the closing of the IPO. Additionally, 37.4 million shares of Class C common stock related to the CEO award are included in Class C common stock on the closing of the IPO.
Schedule of Potentially Dilutive Shares Excluded from Calculation of Diluted Net Loss per Share	The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented: Three and Nine Months Ended September 30, 2017 2016 (in thousands) Convertible voting preferred stock, Series A, A-1 and B — 146,962 Convertible non-voting preferred stock, Series C — 16,000 Stock options 31,106 46,198 Unvested RSUs not subject to a performance condition 169,719 188 Shares subject to repurchase — 540

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Restricted Stock Activity	The following table summarizes the restricted stock activity during the nine months ended September 30, 2017: Class A Outstanding Restricted Stock Class B Outstanding Restricted Stock Weighted- Average Grant Date Fair Value per Restricted Stock (in thousands, except per share data) Unvested at December 31, 2016 152,114 28,581 $ 15.50 Granted (1) 50,770 — $ 16.78 Vested (34,577 ) (16,777 ) $ 14.94 Forfeited (10,026 ) (366 ) $ 17.15 Unvested at September 30, 2017 158,281 11,438 $ 15.95 (1) Includes 1.4 million restricted stock granted in connection with the Placed acquisition.
Summary of Stock Option Award Activity	The following table summarizes the stock option award activity under the Stock Plans during the nine months ended September 30, 2017: Class A Number of Shares Class B Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (1) (in thousands, except per share data) Outstanding at December 31, 2016 1,266 21,186 $ 2.26 6.97 $ 682,565 Granted and assumed (2) 550 — $ 0.64 — $ — Exercised (192 ) (6,978 ) $ 0.96 — $ — Forfeited (4 ) — $ 0.72 — $ — Outstanding at September 30, 2017 1,620 14,208 $ 2.71 6.34 $ 409,287 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the assessed fair value of our common stock as of December 31, 2016 or the closing market price of our Class A common stock as of September 30, 2017. (2) Amount includes assumed options from Placed, Inc.’s 2011 Equity Incentive Plan, as amended, which are not entitled to an additional share of Class A common stock on exercise.
Summary of Total Stock-based Compensation Expense	Total stock-based compensation expense by function is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Cost of revenue $ 1,951 $ 128 $ 23,882 $ 410 Research and development 143,303 12,138 1,025,231 17,486 Sales and marketing 27,254 1,251 207,538 2,579 General and administrative 49,194 1,278 1,202,200 4,600 Total $ 221,702 $ 14,795 $ 2,458,851 $ 25,075

Business Acquisitions (Tables)

Business Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2017
Placed, Inc.
Business Acquisition [Line Items]
Summary of Total Purchase Consideration Allocation	The preliminary allocation of the total purchase consideration for this acquisition is estimated as follows: Total (in thousands) Cash $ 6,919 Trademarks 2,700 Technology 22,400 Customer relationships 11,800 Goodwill 103,995 Net deferred tax liability (13,520 ) Other assets acquired and liabilities assumed, net 5,296 Total $ 139,590
Zenly SAS
Business Acquisition [Line Items]
Summary of Total Purchase Consideration Allocation	The preliminary allocation of the total purchase consideration for this acquisition is estimated as follows: Total (in thousands) Cash $ 22,610 Technology 23,000 Goodwill 154,353 Net deferred tax liability (2,418 ) Other assets acquired and liabilities assumed, net (1,428 ) Total $ 196,117
Other Acquisitions
Business Acquisition [Line Items]
Summary of Total Purchase Consideration Allocation	The allocation of the total purchase consideration for the above acquisitions is as follows: Total (in thousands) Technology $ 39,000 Customer relationships 500 Goodwill 24,135 Net deferred tax liability (1,710 ) Other assets acquired and liabilities assumed, net 200 Total $ 62,125

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill for the nine months ended September 30, 2017 are as follows: Goodwill (in thousands) Balance as of December 31, 2016 $ 319,137 Goodwill acquired 282,483 Foreign currency translation 11,203 Balance as of September 30, 2017 $ 612,823
Schedule of Intangible Assets	Intangible assets consisted of the following: September 30, 2017 Weighted- Average Remaining Useful Life - Years Gross Carrying Amount Accumulated Amortization Net (in thousands except years) Domain names 2.4 $ 5,336 $ 2,936 $ 2,400 Trademarks 2.6 5,772 2,355 3,417 Acquired developed technology 4.8 169,555 37,216 132,339 Customer relationships 2.2 13,953 2,150 11,803 Patents 8.0 17,150 2,497 14,653 $ 211,766 $ 47,154 $ 164,612 December 31, 2016 Weighted- Average Remaining Useful Life - Years Gross Carrying Amount Accumulated Amortization Net (in thousands except years) Domain names 3.0 $ 5,000 $ 2,157 $ 2,843 Trademarks 2.6 3,072 1,829 1,243 Non-compete agreements 0.3 243 226 17 Acquired developed technology 4.1 83,137 20,569 62,568 Customer relationships 1.0 3,752 2,569 1,183 Patents 9.2 9,450 1,322 8,128 $ 104,654 $ 28,672 $ 75,982
Schedule of Estimated Intangible Asset Amortization Expense	As of September 30, 2017, the estimated intangible asset amortization expense for the next five years and thereafter is as follows: Estimated Amortization (in thousands) Remainder of 2017 $ 10,222 2018 39,723 2019 35,897 2020 29,515 2021 22,588 Thereafter 26,667 Total $ 164,612

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2017
Commitments And Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments for Operating Leases	Our future minimum lease payments required under these non-cancelable operating lease obligations as of September 30, 2017, are as follows: Operating Leases (in thousands) Remainder of 2017 $ 10,221 2018 49,415 2019 58,211 2020 58,531 2021 57,089 Thereafter 190,106 Total minimum lease payments $ 423,573
Schedule of Future Minimum Payments for Financing Leases	Our future minimum lease payments required under non-cancelable financing lease obligations, which exclusively relate to our build-to-suit leases, as of September 30, 2017, are as follows: Financing Leases (in thousands) Remainder of 2017 $ 1,170 2018 4,726 2019 4,796 2020 4,947 2021 5,091 Thereafter 25,953 Total minimum lease payments $ 46,683
Schedule of Future Minimum Contractual Commitment	The future minimum contractual commitment including commitments less than one year, as of September 30, 2017 for each of the next five years are as follows: Minimum Commitment (in thousands) Remainder of 2017 $ 137,486 2018 535,666 2019 603,787 2020 675,000 2021 750,000 Thereafter 33,333 Total minimum commitments $ 2,735,272

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Summary of Financial Assets Measured at Fair Value on Recurring Basis	The following table sets forth our financial assets as of September 30, 2017 and December 31, 2016 that are measured at fair value on a recurring basis during the period: Fair Value September 30, 2017 December 31, 2016 (in thousands) Cash and cash equivalents Cash $ 186,056 $ 150,121 U.S. government securities 50,260 — U.S. government agency securities 81,238 — Total cash and cash equivalents $ 317,554 $ 150,121 Marketable securities U.S. government securities $ 1,448,732 $ 505,333 U.S. government agency securities 531,782 331,914 Total marketable securities $ 1,980,514 $ 837,247

Accumulated Other Comprehensi24

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 2017
Accumulated Other Comprehensive Income Loss [Abstract]
Schedule of Changes in Accumulated Other Comprehensive Income (Loss)	The table below presents the changes in accumulated other comprehensive income (loss) (“AOCI”) by component and the reclassifications out of AOCI: Changes in Accumulated Other Comprehensive Income (Loss) by Component Marketable Securities Foreign Currency Translation Total (in thousands) Balance at December 31, 2016 $ 44 $ (2,101 ) $ (2,057 ) OCI before reclassifications (1) (422 ) 14,150 13,728 Amounts reclassified from AOCI (2) 11 — 11 Net current period OCI (411 ) 14,150 13,739 Balance at September 30, 2017 $ (367 ) $ 12,049 $ 11,682 (1) The associated income tax effects for gains / losses on marketable securities were not material. (2) Realized gains and losses on marketable securities are reclassified from AOCI into other income (expense), net in the consolidated statements of operations.

Geographic Information (Tables)

Geographic Information (Tables)	9 Months Ended
	Sep. 30, 2017
Segments Geographical Areas [Abstract]
Revenue and Property and Equipment, Net by Geographic Area	Revenue by geography is based on the billing address of the advertiser. The following tables list revenue and property and equipment, net by geographic area: Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 (in thousands) Revenue: United States $ 162,780 $ 111,809 $ 432,201 $ 210,862 Rest of the world (1) 45,157 16,395 107,055 27,938 Total revenue $ 207,937 $ 128,204 $ 539,256 $ 238,800 (1) No individual country exceeded 10% of our total revenue for any period presented. As of September 30, 2017 As of December 31, 2016 (in thousands) Property and equipment, net: United States $ 126,232 $ 98,254 Rest of the world (1) 16,880 2,331 Total property and equipment, net $ 143,112 $ 100,585 (1) No individual country exceeded 10% of our total property and equipment, net for any period presented.

Summary of Significant Accoun26

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended			9 Months Ended
	Mar. 31, 2017	Sep. 30, 2017	Mar. 31, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Summary Of Significant Accounting Policies [Line Items]
Net proceeds from initial public offering					$ 2,657,797,000	$ 0
Stock-based compensation expense		$ 221,702,000		$ 14,795,000	2,458,851,000	25,075,000
Tax withholding obligation					$ 367,234,000	$ 0
Charges related to inventory		39,900,000
Asset Impairment Charges		2,500,000
Purchase Commitment
Summary Of Significant Accounting Policies [Line Items]
Charges related to inventory		17,900,000
Inventory Valuation Reserve
Summary Of Significant Accounting Policies [Line Items]
Charges related to inventory		$ 19,500,000
Pre-2017 RSUs
Summary Of Significant Accounting Policies [Line Items]
Public offering price per share		$ 17			$ 17
Shares withheld for payroll taxes			12,100,000		23,800,000
Common stock issued		26,700,000			26,700,000
Tax withholding obligation			$ 206,600,000		$ 370,900,000
Class B Common Stock
Summary Of Significant Accounting Policies [Line Items]
Common stock issued		127,302,000			127,302,000		31,469,000
Class C Common Stock
Summary Of Significant Accounting Policies [Line Items]
Common stock issued		215,888,000			215,888,000		0
IPO | Pre-2017 RSUs
Summary Of Significant Accounting Policies [Line Items]
Stock-based compensation expense					$ 1,300,000,000
IPO | Class A Common Stock
Summary Of Significant Accounting Policies [Line Items]
Common stock, shares issued and sold	160,300,000				160,300,000
Public offering price per share	$ 17		$ 17
Net proceeds from initial public offering	$ 2,600,000,000
Underwriting discounts and commissions	68,100,000
Other stock offering expenses	$ 14,700,000
IPO | Class C Common Stock | CEO Award | CEO
Summary Of Significant Accounting Policies [Line Items]
Public offering price per share		$ 17			$ 17
Stock-based compensation expense					$ 636,600,000
Percentage of outstanding shares					3.00%
Share based compensation arrangement by share based payment award vesting					37,400,000
Vested awards, distribution period					3 years
Vested awards, distribution description					The CEO award vested immediately on the closing of the IPO, and such shares will be delivered to the CEO in equal quarterly installments over three years beginning in the third full calendar quarter following the IPO.
IPO | Convertible Preferred Stock Other Than Series FP Preferred Stock | Class B Common Stock
Summary Of Significant Accounting Policies [Line Items]
Conversion of convertible preferred stock into common stock	246,800,000
IPO | Series FP Preferred Stock | Class C Common Stock
Summary Of Significant Accounting Policies [Line Items]
Conversion of convertible preferred stock into common stock	215,900,000
IPO | Series FP Preferred Stock | Class C Common Stock | CEO Award
Summary Of Significant Accounting Policies [Line Items]
Conversion of convertible preferred stock into common stock					37,400,000
IPO | Series FP Preferred Stock | Class C Common Stock | CEO Award | CEO
Summary Of Significant Accounting Policies [Line Items]
Conversion of convertible preferred stock into common stock					37,400,000
Prepaid Expenses and Other Current Assets
Summary Of Significant Accounting Policies [Line Items]
Spectacles inventory		$ 2,600,000			$ 2,600,000

Net Loss per Share - Additional

Net Loss per Share - Additional Information (Details) - IPO	9 Months Ended
	Sep. 30, 2017
Series D, E, and F Preferred Stock | Class B Common Stock
Earnings Per Share [Line Items]
Conversion ratio	1
Series FP Preferred Stock | Class C Common Stock
Earnings Per Share [Line Items]
Conversion ratio	1
Series A, A-1, B, and C Preferred Stock | Class B Common Stock
Earnings Per Share [Line Items]
Conversion ratio	1

Net Loss per Share - Numerators

Net Loss per Share - Numerators and Denominators of Basic and Diluted Net Loss per Share Computations for Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Numerator:
Net loss	$ (443,159)	$ (124,228)	$ (3,095,089)	$ (344,698)
Net loss per share attributable to common stockholders:
Basic	$ (0.36)	$ (0.15)	$ (2.71)	$ (0.43)
Diluted	$ (0.36)	$ (0.15)	$ (2.71)	$ (0.43)
Class A Common Stock
Numerator:
Net loss	$ (289,818)	$ (74,874)	$ (1,869,782)	$ (208,815)
Net loss attributable to common stockholders	$ (289,818)	$ (74,874)	$ (1,869,782)	$ (208,815)
Basic shares:
Weighted-average common shares - Basic	806,353	501,700	688,690	483,821
Diluted shares:
Weighted-average common shares - Diluted	806,353	501,700	688,690	483,821
Net loss per share attributable to common stockholders:
Basic	$ (0.36)	$ (0.15)	$ (2.71)	$ (0.43)
Diluted	$ (0.36)	$ (0.15)	$ (2.71)	$ (0.43)
Class B Common Stock
Numerator:
Net loss	$ (62,288)	$ (17,097)	$ (561,713)	$ (42,329)
Net loss attributable to common stockholders	$ (62,288)	$ (17,097)	$ (561,713)	$ (42,329)
Basic shares:
Weighted-average common shares - Basic	173,304	114,562	206,894	98,076
Diluted shares:
Weighted-average common shares - Diluted	173,304	114,562	206,894	98,076
Net loss per share attributable to common stockholders:
Basic	$ (0.36)	$ (0.15)	$ (2.71)	$ (0.43)
Diluted	$ (0.36)	$ (0.15)	$ (2.71)	$ (0.43)
Class C Common Stock
Numerator:
Net loss	$ (91,053)	$ (32,257)	$ (663,594)	$ (93,554)
Net loss attributable to common stockholders	$ (91,053)	$ (32,257)	$ (663,594)	$ (93,554)
Basic shares:
Weighted-average common shares - Basic	253,336	216,139	244,420	216,763
Diluted shares:
Weighted-average common shares - Diluted	253,336	216,139	244,420	216,763
Net loss per share attributable to common stockholders:
Basic	$ (0.36)	$ (0.15)	$ (2.71)	$ (0.43)
Diluted	$ (0.36)	$ (0.15)	$ (2.71)	$ (0.43)

Net Loss per Share - Numerato29

Net Loss per Share - Numerators and Denominators of Basic and Diluted Net Loss per Share Computations for Common Stock (Parenthetical) (Details) - IPO - shares shares in Millions	1 Months Ended	9 Months Ended
	Mar. 31, 2017	Sep. 30, 2017
Class A Common Stock
Earnings Per Share [Line Items]
Common stock, shares issued	160.3	160.3
Class B Common Stock | Series A, A-1, B, and C Preferred Stock
Earnings Per Share [Line Items]
Conversion of convertible preferred stock into common stock		163
Class C Common Stock | Series FP Preferred Stock
Earnings Per Share [Line Items]
Conversion of convertible preferred stock into common stock	215.9
Class C Common Stock | Series FP Preferred Stock | CEO Award
Earnings Per Share [Line Items]
Conversion of convertible preferred stock into common stock		37.4

Net Loss per Share - Schedule o

Net Loss per Share - Schedule of Potentially Dilutive Shares Excluded from Calculation of Diluted Net Loss per Share (Details) - shares shares in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Convertible Voting Preferred Stock, Series A, A-1, and B
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share		146,962
Convertible Non-voting Preferred Stock, Series C
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share		16,000
Stock Options
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share	31,106	46,198
Unvested RSUs Not Subject to a Performance Condition
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share	169,719	188
Shares Subject to Repurchase
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share		540

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details)	3 Months Ended	9 Months Ended
	Mar. 31, 2017USD ($)shares	Sep. 30, 2017USD ($)Planshares	Sep. 30, 2016USD ($)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of share-based employee compensation plans | Plan		3
Common stock remitted | $		$ 367,234,000	$ 0
Unrecognized compensation cost related to stock options granted and assumed | $		$ 36,400,000
Class A Common Stock | 2017 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance		87,270,108
Class A Common Stock | 2014 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance		17,858,235
Class A Common Stock | 2012 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance		11,004,580
Class A Common Stock | 2017 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance		16,484,690
Number of shares purchased under plan		0
Maximum | 2017 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Percentage of capital stock outstanding		5.00%
Shares reserved for issuance, automatic increase date		Jan. 1, 2027
Maximum | Class A Common Stock | 2017 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Additional common stock reserved for future issuance		86,737,997
Maximum | Class A Common Stock | 2017 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserved for issuance, automatic increase date		Jan. 1, 2027
Percentage of number of shares, common stock outstanding		1.00%
Increase in number of shares reserved for issuance		15,000,000
Minimum | 2017 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserved for issuance, automatic increase date		Jan. 1, 2018
Minimum | Class A Common Stock | 2017 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserved for issuance, automatic increase date		Jan. 1, 2018
2014 Equity Incentive Plan | Maximum | Class A Common Stock | France
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards granted to employees and consultants		2,500,000
Stock Options And Unvested RSUs | Class A Common Stock | 2014 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance		96,993,064
Stock Options And Unvested RSUs | Class A Common Stock | 2012 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock reserved for future issuance		37,228,865
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average recognition period		2 years 1 month 7 days
Stock Options | Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Maximum term for stock options from the grant date		10 years
Pre-2017 RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost | $		$ 818,100,000
Weighted average recognition period		2 years 8 months 13 days
Common stock shares withheld	12,100,000	23,800,000
Common stock remitted | $	$ 206,600,000	$ 370,900,000
Post-2017 RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost | $		$ 658,100,000
Weighted average recognition period		4 years 6 months
Service condition satisfied, years		4 years
Post-2017 RSUs | First Year
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting percentage		10.00%
Post-2017 RSUs | Second Year
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting percentage		20.00%
Post-2017 RSUs | Third Year
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting percentage		30.00%
Post-2017 RSUs | Fourth Year
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting percentage		40.00%

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Restricted Stock Activity (Details) - Restricted Stock shares in Thousands	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Weighted Average Grant Date Fair Value per Restricted Stock
Weighted Average Grant Date Fair Value per Restricted Stock, Unvested Beginning Balance | $ / shares	$ 15.50
Weighted Average Grant Date Fair Value per Restricted Stock, Granted | $ / shares	16.78
Weighted Average Grant Date Fair Value per Restricted Stock, Vested | $ / shares	14.94
Weighted Average Grant Date Fair Value per Restricted Stock, Forfeited | $ / shares	17.15
Weighted Average Grant Date Fair Value per Restricted Stock, Unvested Ending Balance | $ / shares	$ 15.95
Class A Common Stock
Outstanding Restricted Stock
Outstanding Restricted Stock, Unvested Beginning Balance	152,114
Outstanding Restricted Stock, Granted	50,770
Outstanding Restricted Stock, Vested	(34,577)
Outstanding Restricted Stock, Forfeited	(10,026)
Outstanding Restricted Stock, Unvested Ending Balance	158,281
Class B Common Stock
Outstanding Restricted Stock
Outstanding Restricted Stock, Unvested Beginning Balance	28,581
Outstanding Restricted Stock, Granted	0
Outstanding Restricted Stock, Vested	(16,777)
Outstanding Restricted Stock, Forfeited	(366)
Outstanding Restricted Stock, Unvested Ending Balance	11,438

Stockholders' Equity - Summar33

Stockholders' Equity - Summary of Restricted Stock Activity (Parenthetical) (Details) - Restricted Stock - Class A Common Stock shares in Thousands	9 Months Ended
	Sep. 30, 2017shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Outstanding Restricted Stock, Granted	50,770
Placed, Inc.
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Outstanding Restricted Stock, Granted	1,400

Stockholders' Equity - Summar34

Stockholders' Equity - Summary of Stock Option Award Activity (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Weighted Average Exercise Price
Weighted Average Exercise Price, Beginning balance	$ 2.26
Weighted Average Exercise Price, Granted and assumed	0.64
Weighted Average Exercise Price, Exercised	0.96
Weighted Average Exercise Price, Forfeited	0.72
Weighted Average Exercise Price, Ending balance	$ 2.71	$ 2.26
Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term (in years)	6 years 4 months 2 days	6 years 11 months 19 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value	$ 409,287	$ 682,565
Class A Common Stock
Number of Shares
Number of Shares, Beginning balance	1,266
Number of Shares, Granted and assumed	550
Number of Shares, Exercised	(192)
Number of Shares, Forfeited	(4)
Number of Shares, Ending balance	1,620	1,266
Class B Common Stock
Number of Shares
Number of Shares, Beginning balance	21,186
Number of Shares, Granted and assumed	0
Number of Shares, Exercised	(6,978)
Number of Shares, Forfeited	0
Number of Shares, Ending balance	14,208	21,186

Stockholders' Equity - Summar35

Stockholders' Equity - Summary of Total Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total	$ 221,702	$ 14,795	$ 2,458,851	$ 25,075
Cost of Revenue
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total	1,951	128	23,882	410
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total	143,303	12,138	1,025,231	17,486
Sales and Marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total	27,254	1,251	207,538	2,579
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total	$ 49,194	$ 1,278	$ 1,202,200	$ 4,600

Business Acquisitions - Additio

Business Acquisitions - Additional Information (Details) - USD ($) $ in Millions	1 Months Ended		6 Months Ended
	Jul. 31, 2017	May 31, 2017	Jun. 30, 2017	Sep. 30, 2017
Business Acquisition [Line Items]
Goodwill deductible for tax purposes			$ 11.5
RSUs to certain continuing employees in exchange for future service				$ 147.5
Placed, Inc.
Business Acquisition [Line Items]
Total consideration including compensation paid in cash	$ 185.9
Total purchase consideration	139.6
Business acquisition, purchase price cash consideration	135.2
Business acquisition, fair value of assumed options	3.9
Purchase consideration, liabilities assumed	0.5
Business acquisition, compensation transferred for future employment service	$ 46.3
Other Acquisitions
Business Acquisition [Line Items]
Total purchase consideration			62.1
Business acquisition, purchase price cash consideration			60.2
Other Acquisitions | Other Liabilities
Business Acquisition [Line Items]
Purchase consideration, liabilities assumed			1.9
Zenly SAS
Business Acquisition [Line Items]
Total consideration including compensation paid in cash		$ 213.3
Total purchase consideration		196.1
Business acquisition, purchase price cash consideration		186.8
Purchase consideration, liabilities assumed		9.3
Business acquisition, compensation transferred for future employment service		$ 17.2
Technology
Business Acquisition [Line Items]
Intangible assets deductible for tax purposes			$ 30.5

Business Acquisitions - Summary

Business Acquisitions - Summary of Total Purchase Consideration Allocation (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jul. 31, 2017	Jun. 30, 2017	May 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill	$ 612,823				$ 319,137
Placed, Inc.
Business Acquisition [Line Items]
Cash		$ 6,919
Goodwill		103,995
Net deferred tax liability		(13,520)
Other assets acquired and liabilities assumed, net		5,296
Total		139,590
Placed, Inc. | Technology
Business Acquisition [Line Items]
Finite lived intangible assets		22,400
Placed, Inc. | Trademarks
Business Acquisition [Line Items]
Finite lived intangible assets		2,700
Placed, Inc. | Customer Relationships
Business Acquisition [Line Items]
Finite lived intangible assets		$ 11,800
Zenly SAS
Business Acquisition [Line Items]
Cash				$ 22,610
Goodwill				154,353
Net deferred tax liability				(2,418)
Other assets acquired and liabilities assumed, net				(1,428)
Total				196,117
Zenly SAS | Technology
Business Acquisition [Line Items]
Finite lived intangible assets				$ 23,000
Other Acquisitions
Business Acquisition [Line Items]
Goodwill			$ 24,135
Net deferred tax liability			(1,710)
Other assets acquired and liabilities assumed, net			200
Total			62,125
Other Acquisitions | Technology
Business Acquisition [Line Items]
Finite lived intangible assets			39,000
Other Acquisitions | Customer Relationships
Business Acquisition [Line Items]
Finite lived intangible assets			$ 500

Goodwill and Intangible Asset38

Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill, beginning balance	$ 319,137
Goodwill acquired	282,483
Foreign currency translation	11,203
Goodwill, ending balance	$ 612,823

Goodwill and Intangible Asset39

Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 211,766	$ 104,654
Accumulated Amortization	47,154	28,672
Net	$ 164,612	$ 75,982
Domain Names
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Useful Life - Years	2 years 4 months 25 days	3 years
Gross Carrying Amount	$ 5,336	$ 5,000
Accumulated Amortization	2,936	2,157
Net	$ 2,400	$ 2,843
Trademarks
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Useful Life - Years	2 years 7 months 6 days	2 years 7 months 6 days
Gross Carrying Amount	$ 5,772	$ 3,072
Accumulated Amortization	2,355	1,829
Net	$ 3,417	$ 1,243
Non-compete Agreements
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Useful Life - Years		3 months 18 days
Gross Carrying Amount		$ 243
Accumulated Amortization		226
Net		$ 17
Acquired Developed Technology
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Useful Life - Years	4 years 9 months 18 days	4 years 1 month 6 days
Gross Carrying Amount	$ 169,555	$ 83,137
Accumulated Amortization	37,216	20,569
Net	$ 132,339	$ 62,568
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Useful Life - Years	2 years 2 months 13 days	1 year
Gross Carrying Amount	$ 13,953	$ 3,752
Accumulated Amortization	2,150	2,569
Net	$ 11,803	$ 1,183
Patents
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Useful Life - Years	8 years	9 years 2 months 12 days
Gross Carrying Amount	$ 17,150	$ 9,450
Accumulated Amortization	2,497	1,322
Net	$ 14,653	$ 8,128

Goodwill and Intangible Asset40

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 9.7	$ 4.5	$ 20.9	$ 11.4

Goodwill and Intangible Asset41

Goodwill and Intangible Assets - Schedule of Estimated Intangible Asset Amortization Expense (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract]
Remainder of 2017	$ 10,222
2,018	39,723
2,019	35,897
2,020	29,515
2,021	22,588
Thereafter	26,667
Net	$ 164,612	$ 75,982

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Details) $ in Thousands	Sep. 30, 2017USD ($)
Commitments And Contingencies Disclosure [Abstract]
Remainder of 2017	$ 10,221
2,018	49,415
2,019	58,211
2,020	58,531
2,021	57,089
Thereafter	190,106
Total minimum lease payments	$ 423,573

Commitments and Contingencies43

Commitments and Contingencies - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Jan. 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Feb. 28, 2017
Loss Contingencies [Line Items]
Operating lease expense		$ 13,500,000	$ 5,600,000	$ 38,200,000	$ 16,300,000
Lease financing obligations included in other liabilities		15,900,000		15,900,000
Charges related to inventory		39,900,000
Contractual Obligation		2,735,272,000		2,735,272,000
Indemnification Agreement
Loss Contingencies [Line Items]
Liabilities recorded		0		$ 0
Google Cloud Platform License Agreement
Loss Contingencies [Line Items]
Purchase commitment, description				The agreement has an initial term of five years and we are required to purchase at least $400.0 million of cloud services in each year of the agreement, though for each of the first four years, up to 15% of this amount may be moved to a subsequent year. If we fail to meet the minimum purchase commitment during any year, we are required to pay the difference.
Initial term of agreement	5 years
Minimum amount of services to be purchased in each year	$ 400,000,000
Initial period required to purchase minimum amount of services	4 years
Google Cloud Platform License Agreement | Maximum
Loss Contingencies [Line Items]
Purchase commitment, percentage of minimum purchase requirement that can be moved to subsequent year	15.00%
AWS Enterprise Agreement, Cloud Services
Loss Contingencies [Line Items]
Purchase commitment, description				In March 2016, we entered into the AWS Enterprise Agreement for the use of cloud services from Amazon Web Services, Inc. (“AWS”) that was amended in March 2016, and again in February 2017. Such agreement will continue indefinitely until terminated by either party. Under the February 2017 addendum to the agreement, we committed to spend $1.0 billion between January 2017 and December 2021 on AWS services ($50.0 million in 2017, $125.0 million in 2018, $200.0 million in 2019, $275.0 million in 2020, and $350.0 million in 2021). If we fail to meet the minimum purchase commitment during any year, we are required to pay the difference. Any such payment may be applied to future use of AWS services during the addendum term, although it will not count towards meeting the future minimum purchase commitments under the addendum.
Minimum purchase commitment to spend between January 2017 and December 2021						$ 1,000,000,000
Minimum purchase commitment, due in 2017						50,000,000
Minimum purchase commitment, due in 2018						125,000,000
Minimum purchase commitment, due in 2019						200,000,000
Minimum purchase commitment, due in 2020						275,000,000
Minimum purchase commitment, due in 2021						$ 350,000,000
Hardware Inventory
Loss Contingencies [Line Items]
Contractual Obligation		$ 0		$ 0

Commitments and Contingencies44

Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Financing Leases (Details) - Build-to-suit Leases $ in Thousands	Sep. 30, 2017USD ($)
Commitments And Contingencies Disclosure [Line Items]
Remainder of 2017	$ 1,170
2,018	4,726
2,019	4,796
2,020	4,947
2,021	5,091
Thereafter	25,953
Total minimum lease payments	$ 46,683

Commitments and Contingencies45

Commitments and Contingencies - Schedule of Future Minimum Contractual Commitment (Details) $ in Thousands	Sep. 30, 2017USD ($)
Commitments And Contingencies Disclosure [Abstract]
Remainder of 2017	$ 137,486
2,018	535,666
2,019	603,787
2,020	675,000
2,021	750,000
Thereafter	33,333
Total minimum commitments	$ 2,735,272

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	$ 1,980,514	$ 837,247
Fair Value, Measurements, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents	317,554	150,121
Marketable securities	1,980,514	837,247
Fair Value, Measurements, Recurring | Cash
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents	186,056	150,121
Fair Value, Measurements, Recurring | U.S. Government Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents	50,260	0
Marketable securities	1,448,732	505,333
Fair Value, Measurements, Recurring | U.S. Government Agency Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents	81,238	0
Marketable securities	$ 531,782	$ 331,914

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
U.S. Government Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized cost with maturities less than one year	$ 1,400,000,000	$ 502,400,000
Amortized cost with maturities between one and five years	0	3,000,000
U.S. Government Agency Securities
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Amortized cost with maturities less than one year	531,800,000	284,700,000
Amortized cost with maturities between one and five years	$ 0	$ 47,200,000

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income tax benefit	$ 12,300	$ 6,871	$ 15,102	$ 6,783

Accumulated Other Comprehensi49

Accumulated Other Comprehensive Income (Loss) - Schedules of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning of Period			$ 1,518,914
OCI before reclassifications			13,728
Amounts reclassified from AOCI			(11)
Total other comprehensive income (loss), net of tax	$ 8,092	$ (1,163)	13,739	$ (279)
Ending of Period	3,175,270		3,175,270
Marketable Securities
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning of Period			44
OCI before reclassifications			(422)
Amounts reclassified from AOCI			(11)
Total other comprehensive income (loss), net of tax			(411)
Ending of Period	(367)		(367)
Foreign Currency Translation
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning of Period			(2,101)
OCI before reclassifications			14,150
Amounts reclassified from AOCI			0
Total other comprehensive income (loss), net of tax			14,150
Ending of Period	12,049		12,049
Accumulated Other Comprehensive Income Loss
Accumulated Other Comprehensive Income Loss [Line Items]
Beginning of Period			(2,057)
Ending of Period	$ 11,682		$ 11,682

Geographic Information - Revenu

Geographic Information - Revenue by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue:
Total revenue	$ 207,937	$ 128,204	$ 539,256	$ 238,800
United States
Revenue:
Total revenue	162,780	111,809	432,201	210,862
Rest of the World
Revenue:
Total revenue	$ 45,157	$ 16,395	$ 107,055	$ 27,938

Geographic Information - Reve51

Geographic Information - Revenue by Geographic Area (Parenthetical) (Details) - Country	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Geographic Concentrations | Revenue
Revenue by Geographic Area [Line Items]
Number of individual country exceeded 10% of total revenue	0	0	0	0

Geographic Information - Proper

Geographic Information - Property and Equipment, Net by Geographic Area (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property and equipment, net:
Total property and equipment, net	$ 143,112	$ 100,585
United States
Property and equipment, net:
Total property and equipment, net	126,232	98,254
Rest of the World
Property and equipment, net:
Total property and equipment, net	$ 16,880	$ 2,331

Geographic Information - Prop53

Geographic Information - Property and Equipment, Net by Geographic Area (Parenthetical) (Details) - Country	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Geographic Concentrations | Property and Equipment Net
Revenues From External Customers And Long Lived Assets [Line Items]
Number of individual country exceeded 10% of total property and equipment	0	0