Snap (SNAP) 10-Q 2 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	Apr. 27, 2018
Entity Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
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		944,614,706
Class B Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		95,321,185
Class C Common Stock
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		218,235,221

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 466,323	$ 334,063
Marketable securities	1,355,030	1,708,976
Accounts receivable, net of allowance	231,409	279,473
Prepaid expenses and other current assets	58,469	44,282
Total current assets	2,111,231	2,366,794
Property and equipment, net	191,043	166,762
Intangible assets, net	156,525	166,473
Goodwill	645,707	639,882
Other assets	77,524	81,655
Total assets	3,182,030	3,421,566
Current liabilities
Accounts payable	28,562	71,194
Accrued expenses and other current liabilities	272,795	275,062
Total current liabilities	301,357	346,256
Other liabilities	88,825	82,983
Total liabilities	390,182	429,239
Commitments and contingencies (Note 6)
Stockholders’ equity
Additional paid-in capital	7,813,325	7,634,825
Accumulated other comprehensive income (loss)	20,963	14,157
Accumulated deficit	(5,042,452)	(4,656,667)
Total stockholders’ equity	2,791,848	2,992,327
Total liabilities and stockholders’ equity	3,182,030	3,421,566
Class A Non-voting Common Stock
Stockholders’ equity
Common stock, value	9	9
Class B Voting Common Stock
Stockholders’ equity
Common stock, value	1	1
Class C Voting Common Stock
Stockholders’ equity
Common stock, value	$ 2	$ 2

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Class A Non-voting Common Stock
Common stock par value	$ 0.00001	$ 0.00001
Common stock authorized	3,000,000,000	3,000,000,000
Common stock issued	939,248,000	883,022,000
Common stock outstanding	939,248,000	883,022,000
Class B Voting Common Stock
Common stock par value	$ 0.00001	$ 0.00001
Common stock authorized	700,000,000	700,000,000
Common stock issued	96,956,000	122,564,000
Common stock outstanding	96,956,000	122,564,000
Class C Voting Common Stock
Common stock par value	$ 0.00001	$ 0.00001
Common stock authorized	260,888,000	260,888,000
Common stock issued	218,235,000	216,616,000
Common stock outstanding	218,235,000	216,616,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Statement [Abstract]
Revenue	$ 230,666	$ 149,648
Costs and expenses:
Cost of revenue	196,798	163,358
Research and development	200,986	805,848
Sales and marketing	102,113	219,733
General and administrative	123,299	1,174,476
Total costs and expenses	623,196	2,363,415
Loss from operations	(392,530)	(2,213,767)
Interest income	6,104	2,424
Interest expense	(934)	(695)
Other income (expense), net	3,153	187
Loss before income taxes	(384,207)	(2,211,851)
Income tax benefit (expense)	(1,578)	3,014
Net loss	$ (385,785)	$ (2,208,837)
Net loss per share attributable to Class A, Class B, and Class C common stockholders (Note 3):
Basic	$ (0.30)	$ (2.31)
Diluted	$ (0.30)	$ (2.31)

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (385,785)	$ (2,208,837)
Other comprehensive income (loss), net of tax
Unrealized gain (loss) on marketable securities, net of tax	43	(124)
Foreign currency translation	6,763	546
Total other comprehensive income (loss), net of tax	6,806	422
Total comprehensive income (loss)	$ (378,979)	$ (2,208,415)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities
Net loss	$ (385,785)	$ (2,208,837)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	21,553	12,450
Stock-based compensation	133,258	1,992,121
Deferred income taxes	236	(1,488)
Other	(3,392)	1,892
Change in operating assets and liabilities, net of effect of acquisitions:
Accounts receivable, net of allowance	48,697	13,444
Prepaid expenses and other current assets	(10,439)	(43,436)
Other assets	4,204	2,715
Accounts payable	(37,069)	5,619
Accrued expenses and other current liabilities	(10,149)	69,204
Other liabilities	6,905	1,319
Net cash used in operating activities	(231,981)	(154,997)
Cash flows from investing activities
Purchases of property and equipment	(36,315)	(17,993)
Purchases of intangible assets	(60)	0
Non-marketable investments	0	(625)
Cash paid for acquisitions, net of cash acquired	0	(18,013)
Purchases of marketable securities	(477,213)	(1,423,214)
Sales of marketable securities	45,007	0
Maturities of marketable securities	787,828	445,047
Net cash provided by (used in) investing activities	319,247	(1,014,798)
Cash flows from financing activities
Proceeds from the exercise of stock options	45,809	594
Stock repurchases from employees for tax withholdings	(551)	(206,579)
Proceeds from issuance of Class A common stock in initial public offering, net of underwriting commissions	0	2,657,797
Payments of initial public offering issuance costs	0	(5,024)
Net cash provided by financing activities	45,258	2,446,788
Change in cash, cash equivalents, and restricted cash	132,524	1,276,993
Cash, cash equivalents, and restricted cash, beginning of period	337,007	163,336
Cash, cash equivalents, and restricted cash, end of period	469,531	1,440,329
Supplemental disclosures
Cash paid for income taxes	991	3,545
Supplemental disclosures of non-cash activities
Purchase consideration liabilities related to acquisitions	0	1,901
Construction in progress related to financing lease obligations	425	257
Net change in accounts payable and accrued expenses and other current liabilities related to property and equipment additions	$ 445	$ (4,355)

Summary of Significant Accounti

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
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 Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as filed with the SEC on February 22, 2018 (the “Annual Report”). 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 months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018. Other than described below, there have been no changes to our significant accounting policies described in our Annual Report that have had a material impact on our consolidated financial statements and related notes. 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. 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 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 January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Revenue Recognition, Effective January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. As a result of adopting Topic 606, we recorded no adjustment to the opening retained earnings as of January 1, 2018. The impact to revenues and related deferred revenue balances as a result of applying Topic 606 was not material as of and for the three months ended March 31, 2018. See Note 2 for additional information. 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).

Revenue

Revenue	3 Months Ended
	Mar. 31, 2018
Revenue From Contract With Customer [Abstract]
Revenue	2. Revenue Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We determine collectability by performing ongoing credit evaluations and monitoring customer accounts receivable balances. Sales tax is excluded from reported revenue. Advertising Revenues We generate substantially all of our revenues by offering various advertising products on Snapchat, including Snap Ads, Sponsored Creative Tools, and measurement services, referred to as advertising revenue. Sponsored Geofilters allow users to interact with an advertiser’s brand by enabling stylized brand artwork to be overlaid on a Snap. Sponsored Lenses allow users to interact with an advertiser’s brand by enabling branded interactive experiences. The majority of advertising revenue is generated from the display of advertisements on Snapchat through contractual agreements, that are either on a fixed fee basis over a period of time or based on the number of advertising impressions delivered. Revenue related to agreements based on the number of impressions delivered is recognized when the advertisement is displayed. Revenue related to fixed fee arrangements is recognized ratably over the service period, typically less than 30 days in duration, and such arrangements do not contain minimum impression guarantees. In determining whether an arrangement exists, we ensure that an agreement, such as an insertion order, has been fully executed. We sell advertising directly to advertisers (“Snap-sold” revenue) and certain partners that provide content on Snapchat (“content partners”) also sell directly to advertisers (“partner-sold” revenue). Snap Ads may be subject to revenue sharing agreements between us and our content partners. Our Sponsored Creative Tools and measurement services are only Snap-sold and are not subject to revenue sharing arrangements. Snap-sold revenue is recognized based on the gross amount that we charge the advertiser. Partner-sold revenue is recognized based on the net amount of revenue received from the content partners. We report Snap-sold revenue on a gross basis predominately because we are the primary obligor responsible for fulfilling advertisement delivery, including the acceptability of the services delivered. For Snap-sold advertising, we enter into contractual arrangements directly with advertisers. We are directly responsible for the fulfillment of the contractual terms and any remedy for issues with such fulfillment. For Snap-sold revenue, we also have latitude in establishing the selling price with the advertiser, as we sell advertisements at a rate determined at our sole discretion. We report revenue related to transactions sold by our content partners on a net basis predominately because the content partner, and not Snap, is the primary obligor responsible for fulfillment, including the acceptability of the services delivered. In partner-sold advertising arrangements, the content partner has a direct contractual relationship with the advertiser. There is no contractual relationship between us and the advertiser for partner-sold transactions. When a content partner sells advertisements, the content partner is responsible for fulfilling the advertisements, and accordingly, we have determined the content partner is the primary obligor. Additionally, we do not have any latitude in establishing the price with the advertiser for partner-sold advertising. The content partner may sell advertisements at a rate determined at its sole discretion. Other Revenue Other revenue primarily consists of revenue from sales of our hardware product, Spectacles. For the periods presented, revenue from the sales of Spectacles was not material. Components of Revenue The following table presents our revenue disaggregated by revenue source: Three Months Ended March 31, 2018 2017 (in thousands) Snap-sold (1) $ 222,535 $ 128,969 Partner-sold 6,627 12,260 Advertising revenue 229,162 141,229 Other revenue 1,504 8,419 Total revenue $ 230,666 $ 149,648 (1) Snap-sold revenue includes advertisements displayed on both our content and content contributed by our users and partners, as well as Sponsored Creative Tools and measurement services. The following table represents our revenue disaggregated by geography based on the billing address of the advertising customer: Three Months Ended March 31, 2018 2017 (in thousands) Revenue: North America (1) (2) $ 166,939 $ 126,286 Europe (3) 30,825 17,015 Rest of world 32,902 6,347 Total revenue $ 230,666 $ 149,648 (1) North America includes Mexico and the Caribbean. (2) United States revenue was $161.0 million and $123.8 million for the three months ended March 31, 2018 and 2017, respectively. (3) Europe includes Russia and Turkey.

Net Loss per Share

Net Loss per Share	3 Months Ended
	Mar. 31, 2018
Earnings Per Share [Abstract]
Net Loss per Share	3. 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. 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 an initial 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. 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 preferred stock 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 such class of stock outstanding during the period. Vested RSUs that have not been settled, including the vested equity award granted to our CEO (“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 months ended March 31, 2018, our potentially dilutive shares relating to stock options, RSUs, and common stock subject to repurchase, and, for the prior year period, shares of Series A, A-1, B, and C convertible 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 months ended March 31, 2018: Three Months Ended March 31, 2018 2017 (in thousands, except per share data) Class A Common Class B Common Class C Common Class A Common Class B Common Class C Common Numerator: Net loss $ (276,790 ) $ (32,989 ) $ (76,006 ) $ (1,309,062 ) $ (376,386 ) $ (523,389 ) Net loss attributable to common stockholders $ (276,790 ) $ (32,989 ) $ (76,006 ) $ (1,309,062 ) $ (376,386 ) $ (523,389 ) Denominator: Basic shares: Weighted-average common shares - Basic 911,906 108,683 250,409 565,980 162,733 226,290 Diluted shares: Weighted-average common shares - Diluted 911,906 108,683 250,409 565,980 162,733 226,290 Net loss per share attributable to common stockholders: Basic $ (0.30 ) $ (0.30 ) $ (0.30 ) $ (2.31 ) $ (2.31 ) $ (2.31 ) Diluted $ (0.30 ) $ (0.30 ) $ (0.30 ) $ (2.31 ) $ (2.31 ) $ (2.31 ) 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 Months Ended March 31, 2018 2017 (in thousands) Stock options 16,486 40,554 Unvested RSUs 152,987 175,298 Shares subject to repurchase — 38

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stockholders' Equity	4. 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. The following table summarizes the restricted stock activity during the three months ended March 31, 2018: 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, 2017 156,005 7,791 $ 15.89 Granted 15,153 — $ 17.77 Vested (11,828 ) (2,326 ) $ 15.73 Forfeited (11,289 ) (519 ) $ 15.42 Unvested at March 31, 2018 148,041 4,946 $ 16.13 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. Total unrecognized compensation cost related to Pre-2017 RSUs was $453.3 million as of March 31, 2018 and is expected to be recognized over a weighted-average period of 2.3 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 was $914.4 million as of March 31, 2018 and is expected to be recognized over a weighted-average period of 4.0 years. The service condition for RSUs granted prior to February 2018 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. The service condition for RSUs granted after February 2018 is generally satisfied in equal monthly installments over four years. The following table summarizes the stock option award activity under the Stock Plans during the three months ended March 31, 2018: 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, 2017 20,807 11,790 $ 4.10 4.99 $ 343,110 Granted 1,301 — $ 17.15 — $ — Exercised (9,618 ) (7,708 ) $ 2.64 — $ — Forfeited (53 ) (32 ) $ 6.55 — $ — Outstanding at March 31, 2018 12,437 4,050 $ 6.66 6.29 $ 153,498 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the closing market price of our Class A common stock as of December 31, 2017 and March 31, 2018, respectively. Total unrecognized compensation cost related to stock options granted and assumed was $39.9 million as of March 31, 2018 Stock-Based Compensation Expense by Function Total stock-based compensation expense by function was as follows: Three Months Ended March 31, 2018 2017 (in thousands) Cost of revenue $ 276 $ 19,708 Research and development 77,815 718,080 Sales and marketing 16,185 159,726 General and administrative 38,982 1,094,607 Total $ 133,258 $ 1,992,121

Goodwill and Intangible Assets

Goodwill and Intangible Assets	3 Months Ended
	Mar. 31, 2018
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 three months ended March 31, 2018 are as follows: Goodwill (in thousands) Balance as of December 31, 2017 $ 639,882 Foreign currency translation 5,825 Balance as of March 31, 2018 $ 645,707 Intangible assets consisted of the following: March 31, 2018 Weighted- Average Remaining Useful Life - Years Gross Carrying Amount Accumulated Amortization Net (in thousands except years) Domain names 2.1 $ 5,418 $ 3,480 $ 1,938 Trademarks 2.1 5,772 3,042 2,730 Acquired developed technology 4.4 181,309 53,958 127,351 Customer relationships 2.4 15,572 4,833 10,739 Patents 7.5 17,210 3,443 13,767 $ 225,281 $ 68,756 $ 156,525 December 31, 2017 Weighted- Average Remaining Useful Life - Years Gross Carrying Amount Accumulated Amortization Net (in thousands except years) Domain names 2.1 $ 5,418 $ 3,210 $ 2,208 Trademarks 2.3 5,772 2,701 3,071 Acquired developed technology 4.7 180,396 45,435 134,961 Customer relationships 2.6 15,558 3,506 12,052 Patents 7.8 17,150 2,969 14,181 $ 224,294 $ 57,821 $ 166,473 Amortization of intangible assets was $10.8 million and $5.4 million for the three months ended March 31, 2018 and 2017, respectively. As of March 31, 2018, the estimated intangible asset amortization expense for the next five years and thereafter is as follows: Estimated Amortization (in thousands) Remainder of 2018 $ 31,766 2019 38,675 2020 32,191 2021 25,142 2022 15,250 Thereafter 13,501 Total $ 156,525

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2018
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 2018 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 March 31, 2018, are as follows: Operating Leases (in thousands) Remainder of 2018 $ 43,480 2019 60,268 2020 60,269 2021 58,565 2022 47,101 Thereafter 144,436 Total minimum lease payments $ 414,119 Operating lease expenses for the three months ended March 31, 2018 and 2017 were $15.8 million and $12.9 million, 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 March 31, 2018. Our future minimum lease payments required under non-cancelable financing lease obligations, which exclusively relate to our build-to-suit leases, as of March 31, 2018, are as follows: Financing Leases (in thousands) Remainder of 2018 $ 3,556 2019 4,796 2020 4,947 2021 5,092 2022 5,167 Thereafter 20,785 Total minimum lease payments $ 44,343 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 March 31, 2018, $16.2 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, which was amended in September 2017, December 2017, and again in January 2018. 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. 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”) which was amended in March 2016, and again in February 2017. The 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. The future minimum contractual commitment including commitments less than one year, as of March 31, 2018 for each of the next five years are as follows: Minimum Commitment (in thousands) Remainder of 2018 $ 444,208 2019 603,251 2020 675,055 2021 750,080 2022 33,333 Thereafter — Total minimum commitments $ 2,505,927 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 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. On April 3, 2018, BlackBerry Limited filed a lawsuit against us alleging that we infringe six of its patents. We are currently investigating BlackBerry’s allegations, and management believes we have meritorious defenses. Based on the preliminary nature of the proceedings, the outcome of this matter remains uncertain. In 2017, Vaporstream, Inc. filed a lawsuit against us alleging that we infringe a number of its patents. We filed a motion to dismiss, which the court denied without prejudice to re-file after further factual development. Later in 2017, we filed a motion for summary judgment. On February 27, 2018, the court issued an order denying our motion for summary judgment. Trial is scheduled for August 2018. While management believes we have meritorious defenses to Vaporstream's claims, 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. 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 March 31, 2018. We believe the fair value of these liabilities is immaterial and accordingly have no liabilities recorded for these agreements at March 31, 2018.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 and December 31, 2017 that are measured at fair value on a recurring basis during the period: Fair Value March 31, 2018 December 31, 2017 (in thousands) Cash and cash equivalents Cash $ 370,379 $ 267,715 U.S. government securities 78,225 25,861 U.S. government agency securities 17,719 40,487 Total cash and cash equivalents $ 466,323 $ 334,063 Marketable securities U.S. government securities $ 1,032,622 $ 1,350,581 U.S. government agency securities 322,408 358,395 Total marketable securities $ 1,355,030 $ 1,708,976 The amortized cost of U.S. government securities with maturities less than one year was $1.0 billion and $1.4 billion as of March 31, 2018 and December 31, 2017, respectively. The amortized cost of U.S. government agency securities with maturities of less than a year was $322.7 million and $358.6 million as of March 31, 2018 and December 31, 2017, respectively.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2018
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 expense was $1.6 million for the three months ended March 31, 2018, compared to a tax benefit of $3.0 million for the three months ended March 31, 2017. The income tax benefit in the prior period was primarily from the partial release of a valuation allowance against our net deferred tax assets that was not in the current period. The valuation allowance release was 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. The Tax Cuts and Jobs Act introduced the global intangible low-taxed income (“GILTI”) provisions that impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. We recognize the tax on GILTI as an expense in the period the tax is incurred. We have not provided deferred taxes related to temporary differences that on their reversal will affect the amount of income subject to GILTI in the period.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	3 Months Ended
	Mar. 31, 2018
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, 2017 $ (1,078 ) $ 15,235 $ 14,157 OCI before reclassifications (1) 44 6,763 6,807 Amounts reclassified from AOCI (2) (1 ) — (1 ) Net current period OCI 43 6,763 6,806 Balance at March 31, 2018 $ (1,035 ) $ 21,998 $ 20,963 (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.

Property and Equipment, Net

Property and Equipment, Net	3 Months Ended
	Mar. 31, 2018
Property Plant And Equipment [Abstract]
Property and Equipment, Net	10. Property and Equipment, Net The following table lists property and equipment, net by geographic area: As of March 31, 2018 As of December 31, 2017 (in thousands) Property and equipment, net: United States $ 168,090 $ 146,862 Rest of world (1) 22,953 19,900 Total property and equipment, net $ 191,043 $ 166,762 (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)	3 Months Ended
	Mar. 31, 2018
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 Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as filed with the SEC on February 22, 2018 (the “Annual Report”). 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 months ended March 31, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018. Other than described below, there have been no changes to our significant accounting policies described in our Annual Report that have had a material impact on our consolidated financial statements and related notes.
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.
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 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 January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Revenue Recognition, Effective January 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. As a result of adopting Topic 606, we recorded no adjustment to the opening retained earnings as of January 1, 2018. The impact to revenues and related deferred revenue balances as a result of applying Topic 606 was not material as of and for the three months ended March 31, 2018. See Note 2 for additional information. 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).

Revenue (Tables)

Revenue (Tables)	3 Months Ended
	Mar. 31, 2018
Revenue From Contract With Customer [Abstract]
Disaggregation of Revenue by Source	The following table presents our revenue disaggregated by revenue source: Three Months Ended March 31, 2018 2017 (in thousands) Snap-sold (1) $ 222,535 $ 128,969 Partner-sold 6,627 12,260 Advertising revenue 229,162 141,229 Other revenue 1,504 8,419 Total revenue $ 230,666 $ 149,648 (1) Snap-sold revenue includes advertisements displayed on both our content and content contributed by our users and partners, as well as Sponsored Creative Tools and measurement services.
Disaggregation of Revenue by Geography	The following table represents our revenue disaggregated by geography based on the billing address of the advertising customer: Three Months Ended March 31, 2018 2017 (in thousands) Revenue: North America (1) (2) $ 166,939 $ 126,286 Europe (3) 30,825 17,015 Rest of world 32,902 6,347 Total revenue $ 230,666 $ 149,648 (1) North America includes Mexico and the Caribbean. (2) United States revenue was $161.0 million and $123.8 million for the three months ended March 31, 2018 and 2017, respectively. (3) Europe includes Russia and Turkey.

Net Loss per Share (Tables)

Net Loss per Share (Tables)	3 Months Ended
	Mar. 31, 2018
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 months ended March 31, 2018: Three Months Ended March 31, 2018 2017 (in thousands, except per share data) Class A Common Class B Common Class C Common Class A Common Class B Common Class C Common Numerator: Net loss $ (276,790 ) $ (32,989 ) $ (76,006 ) $ (1,309,062 ) $ (376,386 ) $ (523,389 ) Net loss attributable to common stockholders $ (276,790 ) $ (32,989 ) $ (76,006 ) $ (1,309,062 ) $ (376,386 ) $ (523,389 ) Denominator: Basic shares: Weighted-average common shares - Basic 911,906 108,683 250,409 565,980 162,733 226,290 Diluted shares: Weighted-average common shares - Diluted 911,906 108,683 250,409 565,980 162,733 226,290 Net loss per share attributable to common stockholders: Basic $ (0.30 ) $ (0.30 ) $ (0.30 ) $ (2.31 ) $ (2.31 ) $ (2.31 ) Diluted $ (0.30 ) $ (0.30 ) $ (0.30 ) $ (2.31 ) $ (2.31 ) $ (2.31 )
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 Months Ended March 31, 2018 2017 (in thousands) Stock options 16,486 40,554 Unvested RSUs 152,987 175,298 Shares subject to repurchase — 38

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2018
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Summary of Restricted Stock Activity	The following table summarizes the restricted stock activity during the three months ended March 31, 2018: 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, 2017 156,005 7,791 $ 15.89 Granted 15,153 — $ 17.77 Vested (11,828 ) (2,326 ) $ 15.73 Forfeited (11,289 ) (519 ) $ 15.42 Unvested at March 31, 2018 148,041 4,946 $ 16.13
Summary of Stock Option Award Activity	The following table summarizes the stock option award activity under the Stock Plans during the three months ended March 31, 2018: 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, 2017 20,807 11,790 $ 4.10 4.99 $ 343,110 Granted 1,301 — $ 17.15 — $ — Exercised (9,618 ) (7,708 ) $ 2.64 — $ — Forfeited (53 ) (32 ) $ 6.55 — $ — Outstanding at March 31, 2018 12,437 4,050 $ 6.66 6.29 $ 153,498 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the closing market price of our Class A common stock as of December 31, 2017 and March 31, 2018, respectively.
Summary of Total Stock-based Compensation Expense	Total stock-based compensation expense by function was as follows: Three Months Ended March 31, 2018 2017 (in thousands) Cost of revenue $ 276 $ 19,708 Research and development 77,815 718,080 Sales and marketing 16,185 159,726 General and administrative 38,982 1,094,607 Total $ 133,258 $ 1,992,121

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	3 Months Ended
	Mar. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Changes in Carrying Amount of Goodwill	The changes in the carrying amount of goodwill for the three months ended March 31, 2018 are as follows: Goodwill (in thousands) Balance as of December 31, 2017 $ 639,882 Foreign currency translation 5,825 Balance as of March 31, 2018 $ 645,707
Schedule of Intangible Assets	Intangible assets consisted of the following: March 31, 2018 Weighted- Average Remaining Useful Life - Years Gross Carrying Amount Accumulated Amortization Net (in thousands except years) Domain names 2.1 $ 5,418 $ 3,480 $ 1,938 Trademarks 2.1 5,772 3,042 2,730 Acquired developed technology 4.4 181,309 53,958 127,351 Customer relationships 2.4 15,572 4,833 10,739 Patents 7.5 17,210 3,443 13,767 $ 225,281 $ 68,756 $ 156,525 December 31, 2017 Weighted- Average Remaining Useful Life - Years Gross Carrying Amount Accumulated Amortization Net (in thousands except years) Domain names 2.1 $ 5,418 $ 3,210 $ 2,208 Trademarks 2.3 5,772 2,701 3,071 Acquired developed technology 4.7 180,396 45,435 134,961 Customer relationships 2.6 15,558 3,506 12,052 Patents 7.8 17,150 2,969 14,181 $ 224,294 $ 57,821 $ 166,473
Schedule of Estimated Intangible Asset Amortization Expense	As of March 31, 2018, the estimated intangible asset amortization expense for the next five years and thereafter is as follows: Estimated Amortization (in thousands) Remainder of 2018 $ 31,766 2019 38,675 2020 32,191 2021 25,142 2022 15,250 Thereafter 13,501 Total $ 156,525

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018, are as follows: Operating Leases (in thousands) Remainder of 2018 $ 43,480 2019 60,268 2020 60,269 2021 58,565 2022 47,101 Thereafter 144,436 Total minimum lease payments $ 414,119
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 March 31, 2018, are as follows: Financing Leases (in thousands) Remainder of 2018 $ 3,556 2019 4,796 2020 4,947 2021 5,092 2022 5,167 Thereafter 20,785 Total minimum lease payments $ 44,343
Schedule of Future Minimum Contractual Commitment	The future minimum contractual commitment including commitments less than one year, as of March 31, 2018 for each of the next five years are as follows: Minimum Commitment (in thousands) Remainder of 2018 $ 444,208 2019 603,251 2020 675,055 2021 750,080 2022 33,333 Thereafter — Total minimum commitments $ 2,505,927

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2018
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 March 31, 2018 and December 31, 2017 that are measured at fair value on a recurring basis during the period: Fair Value March 31, 2018 December 31, 2017 (in thousands) Cash and cash equivalents Cash $ 370,379 $ 267,715 U.S. government securities 78,225 25,861 U.S. government agency securities 17,719 40,487 Total cash and cash equivalents $ 466,323 $ 334,063 Marketable securities U.S. government securities $ 1,032,622 $ 1,350,581 U.S. government agency securities 322,408 358,395 Total marketable securities $ 1,355,030 $ 1,708,976

Accumulated Other Comprehensi24

Accumulated Other Comprehensive Income (Loss) (Tables)	3 Months Ended
	Mar. 31, 2018
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, 2017 $ (1,078 ) $ 15,235 $ 14,157 OCI before reclassifications (1) 44 6,763 6,807 Amounts reclassified from AOCI (2) (1 ) — (1 ) Net current period OCI 43 6,763 6,806 Balance at March 31, 2018 $ (1,035 ) $ 21,998 $ 20,963 (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.

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	3 Months Ended
	Mar. 31, 2018
Property Plant And Equipment [Abstract]
Property and Equipment, Net by Geographic Area	The following table lists property and equipment, net by geographic area: As of March 31, 2018 As of December 31, 2017 (in thousands) Property and equipment, net: United States $ 168,090 $ 146,862 Rest of world (1) 22,953 19,900 Total property and equipment, net $ 191,043 $ 166,762 (1) No individual country exceeded 10% of our total property and equipment, net for any period presented.

Revenue - Disaggregation of Rev

Revenue - Disaggregation of Revenue by Source (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation Of Revenue [Line Items]
Advertising revenue	$ 229,162	$ 141,229
Other revenue	1,504	8,419
Total revenue	230,666	149,648
Snap-Sold
Disaggregation Of Revenue [Line Items]
Advertising revenue	222,535	128,969
Partner-Sold
Disaggregation Of Revenue [Line Items]
Advertising revenue	$ 6,627	$ 12,260

Revenue - Disaggregation of R27

Revenue - Disaggregation of Revenue by Geography (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation Of Revenue [Line Items]
Total revenue	$ 230,666	$ 149,648
North America
Disaggregation Of Revenue [Line Items]
Total revenue	166,939	126,286
Europe
Disaggregation Of Revenue [Line Items]
Total revenue	30,825	17,015
Rest of World
Disaggregation Of Revenue [Line Items]
Total revenue	$ 32,902	$ 6,347

Revenue - Disaggregation of R28

Revenue - Disaggregation of Revenue by Geography (Parenthetical) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Disaggregation Of Revenue [Line Items]
Total revenue	$ 230,666	$ 149,648
United States
Disaggregation Of Revenue [Line Items]
Total revenue	$ 161,000	$ 123,800

Net Loss per Share - Additional

Net Loss per Share - Additional Information (Details) $ / shares in Units, $ in Thousands, shares in Millions	1 Months Ended	3 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares	Mar. 31, 2018USD ($)	Mar. 31, 2017USD ($)$ / shares
Earnings Per Share [Line Items]
Net proceeds from initial public offering		$ 0	$ 2,657,797
IPO | Class A Common Stock
Earnings Per Share [Line Items]
Common stock, shares issued and sold | shares	160.3
Initial public offering price per share | $ / shares	$ 17		$ 17
Net proceeds from initial public offering	$ 2,600,000
Underwriting discounts and commissions	68,100
Other stock offering expenses	$ 14,700
Convertible Preferred Stock Other Than Series FP Preferred Stock | IPO | Class B Common Stock
Earnings Per Share [Line Items]
Conversion of convertible preferred stock into common stock | shares	246.8
Series D, E, and F Preferred Stock | IPO | Class B Common Stock
Earnings Per Share [Line Items]
Conversion ratio		1
Series FP Preferred Stock | IPO | Class C Common Stock
Earnings Per Share [Line Items]
Conversion of convertible preferred stock into common stock | shares	215.9
Conversion ratio		1
Series A, A-1, B, and C Preferred Stock | IPO | 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
	Mar. 31, 2018	Mar. 31, 2017
Numerator:
Net loss	$ (385,785)	$ (2,208,837)
Net loss per share attributable to common stockholders:
Basic	$ (0.30)	$ (2.31)
Diluted	$ (0.30)	$ (2.31)
Class A Common Stock
Numerator:
Net loss	$ (276,790)	$ (1,309,062)
Net loss attributable to common stockholders	$ (276,790)	$ (1,309,062)
Basic shares:
Weighted-average common shares - Basic	911,906	565,980
Diluted shares:
Weighted-average common shares - Diluted	911,906	565,980
Net loss per share attributable to common stockholders:
Basic	$ (0.30)	$ (2.31)
Diluted	$ (0.30)	$ (2.31)
Class B Common Stock
Numerator:
Net loss	$ (32,989)	$ (376,386)
Net loss attributable to common stockholders	$ (32,989)	$ (376,386)
Basic shares:
Weighted-average common shares - Basic	108,683	162,733
Diluted shares:
Weighted-average common shares - Diluted	108,683	162,733
Net loss per share attributable to common stockholders:
Basic	$ (0.30)	$ (2.31)
Diluted	$ (0.30)	$ (2.31)
Class C Common Stock
Numerator:
Net loss	$ (76,006)	$ (523,389)
Net loss attributable to common stockholders	$ (76,006)	$ (523,389)
Basic shares:
Weighted-average common shares - Basic	250,409	226,290
Diluted shares:
Weighted-average common shares - Diluted	250,409	226,290
Net loss per share attributable to common stockholders:
Basic	$ (0.30)	$ (2.31)
Diluted	$ (0.30)	$ (2.31)

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	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Unvested RSUs
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted net loss per share	152,987	175,298
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	16,486	40,554
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		38

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Details) $ in Millions	3 Months Ended
	Mar. 31, 2018USD ($)Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of share-based employee compensation plans | Plan	3
Pre-2017 RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost	$ 453.3
Weighted average recognition period	2 years 3 months 18 days
Post-2017 RSUs
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Unrecognized compensation cost	$ 914.4
Weighted average recognition period	4 years
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%
Stock Options
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted average recognition period	2 years 7 months 6 days
Unrecognized compensation cost related to stock options granted and assumed	$ 39.9

Stockholders' Equity - Summary

Stockholders' Equity - Summary of Restricted Stock Activity (Details) - Restricted Stock shares in Thousands	3 Months Ended
	Mar. 31, 2018$ / sharesshares
Weighted Average Grant Date Fair Value per Restricted Stock
Weighted Average Grant Date Fair Value per Restricted Stock, Unvested Beginning Balance | $ / shares	$ 15.89
Weighted Average Grant Date Fair Value per Restricted Stock, Granted | $ / shares	17.77
Weighted Average Grant Date Fair Value per Restricted Stock, Vested | $ / shares	15.73
Weighted Average Grant Date Fair Value per Restricted Stock, Forfeited | $ / shares	15.42
Weighted Average Grant Date Fair Value per Restricted Stock, Unvested Ending Balance | $ / shares	$ 16.13
Class A Common Stock
Outstanding Restricted Stock
Outstanding Restricted Stock, Unvested Beginning Balance	156,005
Outstanding Restricted Stock, Granted	15,153
Outstanding Restricted Stock, Vested	(11,828)
Outstanding Restricted Stock, Forfeited	(11,289)
Outstanding Restricted Stock, Unvested Ending Balance	148,041
Class B Common Stock
Outstanding Restricted Stock
Outstanding Restricted Stock, Unvested Beginning Balance	7,791
Outstanding Restricted Stock, Granted	0
Outstanding Restricted Stock, Vested	(2,326)
Outstanding Restricted Stock, Forfeited	(519)
Outstanding Restricted Stock, Unvested Ending Balance	4,946

Stockholders' Equity - Summar34

Stockholders' Equity - Summary of Stock Option Award Activity (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Weighted Average Exercise Price
Weighted Average Exercise Price, Beginning balance	$ 4.10
Weighted Average Exercise Price, Exercised	2.64
Weighted Average Exercise Price, Forfeited	6.55
Weighted Average Exercise Price, Ending balance	6.66	$ 4.10
Weighted Average Exercise Price, Granted	$ 17.15
Weighted Average Remaining Contractual Term
Weighted Average Remaining Contractual Term (in years)	6 years 3 months 15 days	4 years 11 months 26 days
Aggregate Intrinsic Value
Aggregate Intrinsic Value	$ 153,498	$ 343,110
Class A Common Stock
Number of Shares
Number of Shares, Beginning balance	20,807
Number of Shares, Granted	1,301
Number of Shares, Exercised	(9,618)
Number of Shares, Forfeited	(53)
Number of Shares, Ending balance	12,437	20,807
Class B Common Stock
Number of Shares
Number of Shares, Beginning balance	11,790
Number of Shares, Exercised	(7,708)
Number of Shares, Forfeited	(32)
Number of Shares, Ending balance	4,050	11,790

Stockholders' Equity - Summar35

Stockholders' Equity - Summary of Total Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total	$ 133,258	$ 1,992,121
Cost of Revenue
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total	276	19,708
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total	77,815	718,080
Sales and Marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total	16,185	159,726
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Total	$ 38,982	$ 1,094,607

Goodwill and Intangible Asset36

Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2018USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill, beginning balance	$ 639,882
Foreign currency translation	5,825
Goodwill, ending balance	$ 645,707

Goodwill and Intangible Asset37

Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 225,281	$ 224,294
Accumulated Amortization	68,756	57,821
Net	$ 156,525	$ 166,473
Domain Names
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Useful Life - Years	2 years 1 month 6 days	2 years 1 month 6 days
Gross Carrying Amount	$ 5,418	$ 5,418
Accumulated Amortization	3,480	3,210
Net	$ 1,938	$ 2,208
Trademarks
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Useful Life - Years	2 years 1 month 6 days	2 years 3 months 19 days
Gross Carrying Amount	$ 5,772	$ 5,772
Accumulated Amortization	3,042	2,701
Net	$ 2,730	$ 3,071
Acquired Developed Technology
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Useful Life - Years	4 years 4 months 24 days	4 years 8 months 12 days
Gross Carrying Amount	$ 181,309	$ 180,396
Accumulated Amortization	53,958	45,435
Net	$ 127,351	$ 134,961
Customer Relationships
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Useful Life - Years	2 years 4 months 24 days	2 years 7 months 6 days
Gross Carrying Amount	$ 15,572	$ 15,558
Accumulated Amortization	4,833	3,506
Net	$ 10,739	$ 12,052
Patents
Finite-Lived Intangible Assets [Line Items]
Weighted- Average Remaining Useful Life - Years	7 years 6 months	7 years 9 months 18 days
Gross Carrying Amount	$ 17,210	$ 17,150
Accumulated Amortization	3,443	2,969
Net	$ 13,767	$ 14,181

Goodwill and Intangible Asset38

Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 10.8	$ 5.4

Goodwill and Intangible Asset39

Goodwill and Intangible Assets - Schedule of Estimated Intangible Asset Amortization Expense (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract]
Remainder of 2018	$ 31,766
2,019	38,675
2,020	32,191
2,021	25,142
2,022	15,250
Thereafter	13,501
Net	$ 156,525	$ 166,473

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Details) $ in Thousands	Mar. 31, 2018USD ($)
Commitments And Contingencies Disclosure [Abstract]
Remainder of 2018	$ 43,480
2,019	60,268
2,020	60,269
2,021	58,565
2,022	47,101
Thereafter	144,436
Total minimum lease payments	$ 414,119

Commitments and Contingencies41

Commitments and Contingencies - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended
	Jan. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Feb. 28, 2017
Loss Contingencies [Line Items]
Operating lease expense		$ 15,800,000	$ 12,900,000
Lease financing obligations included in other liabilities		16,200,000
Indemnification Agreement
Loss Contingencies [Line Items]
Liabilities recorded		$ 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. 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”) which was amended in March 2016, and again in February 2017. The 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

Commitments and Contingencies42

Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Financing Leases (Details) - Build-to-suit Leases $ in Thousands	Mar. 31, 2018USD ($)
Commitments And Contingencies Disclosure [Line Items]
Remainder of 2018	$ 3,556
2,019	4,796
2,020	4,947
2,021	5,092
2,022	5,167
Thereafter	20,785
Total minimum lease payments	$ 44,343

Commitments and Contingencies43

Commitments and Contingencies - Schedule of Future Minimum Contractual Commitment (Details) $ in Millions	Mar. 31, 2018USD ($)
Commitments And Contingencies Disclosure [Abstract]
Remainder of 2018	$ 444,208
2,019	603,251
2,020	675,055
2,021	750,080
2,022	33,333
Thereafter	0
Total minimum commitments	$ 2,505,927

Fair Value Measurements - Summa

Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities	$ 1,355,030	$ 1,708,976
Fair Value, Measurements, Recurring
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents	466,323	334,063
Marketable securities	1,355,030	1,708,976
Fair Value, Measurements, Recurring | Cash
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Cash and cash equivalents	370,379	267,715
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	78,225	25,861
Marketable securities	1,032,622	1,350,581
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	17,719	40,487
Marketable securities	$ 322,408	$ 358,395

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017
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	$ 1,000	$ 1,400
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	$ 322.7	$ 358.6

Income Taxes - Additional Infor

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income tax benefit (expense)	$ (1,578)	$ 3,014

Accumulated Other Comprehensi47

Accumulated Other Comprehensive Income (Loss) - Schedules of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Accumulated Other Comprehensive Income Loss [Line Items]
Balance, beginning of period	$ 2,992,327
Total other comprehensive income (loss), net of tax	6,806	$ 422
Balance, end of period	2,791,848
Marketable Securities
Accumulated Other Comprehensive Income Loss [Line Items]
Balance, beginning of period	(1,078)
OCI before reclassifications	44
Amounts reclassified from AOCI	1
Total other comprehensive income (loss), net of tax	43
Balance, end of period	(1,035)
Foreign Currency Translation
Accumulated Other Comprehensive Income Loss [Line Items]
Balance, beginning of period	15,235
OCI before reclassifications	6,763
Total other comprehensive income (loss), net of tax	6,763
Balance, end of period	21,998
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income Loss [Line Items]
Balance, beginning of period	14,157
OCI before reclassifications	6,807
Amounts reclassified from AOCI	1
Total other comprehensive income (loss), net of tax	6,806
Balance, end of period	$ 20,963

Property and Equipment, Net - P

Property and Equipment, Net - Property and Equipment, Net by Geographic Area (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Dec. 31, 2017
Property and equipment, net:
Total property and equipment, net	$ 191,043	$ 166,762
United States
Property and equipment, net:
Total property and equipment, net	168,090	146,862
Rest of World
Property and equipment, net:
Total property and equipment, net	$ 22,953	$ 19,900

Property and Equipment, Net -49

Property and Equipment, Net - Property and Equipment, Net by Geographic Area (Parenthetical) (Details) - Country	3 Months Ended	12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Geographic Concentrations | Property and Equipment Net | Rest of World
Revenues From External Customers And Long Lived Assets [Line Items]
Number of individual country exceeded 10% of total property and equipment	0	0