Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 20, 2021 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SNAP | |
Entity Central Index Key | 0001564408 | |
Entity Registrant Name | SNAP INC | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Class A Common Stock, par value $0.00001 per share | |
Security Exchange Name | NYSE | |
Entity File Number | 001-38017 | |
Entity Tax Identification Number | 45-5452795 | |
Entity Address, Address Line One | 3000 31st Street | |
Entity Address, City or Town | Santa Monica | |
Entity Address, State or Province | CA | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Postal Zip Code | 90405 | |
City Area Code | (310) | |
Local Phone Number | 399-3339 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock Shares Outstanding | 1,268,223,482 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock Shares Outstanding | 23,640,382 | |
Class C Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock Shares Outstanding | 231,626,943 | |
Former Address | ||
Entity Information [Line Items] | ||
Entity Address, Address Line One | 2772 Donald Douglas Loop North | |
Entity Address, City or Town | Santa Monica | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90405 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities | ||
Net loss | $ (286,882) | $ (305,936) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 23,498 | 21,204 |
Stock-based compensation | 237,073 | 172,049 |
Amortization of debt discount and issuance costs | 1,044 | 11,563 |
Other | (15,682) | 10,030 |
Change in operating assets and liabilities, net of effect of acquisitions: | ||
Accounts receivable, net of allowance | 129,316 | 92,892 |
Prepaid expenses and other current assets | (12,436) | (12,867) |
Operating lease right-of-use assets | 11,198 | 8,716 |
Other assets | (898) | (1,155) |
Accounts payable | 56,505 | 5,734 |
Accrued expenses and other current liabilities | 5,349 | 17,910 |
Operating lease liabilities | (13,295) | (13,994) |
Other liabilities | 2,096 | 137 |
Net cash provided by operating activities | 136,886 | 6,283 |
Cash flows from investing activities | ||
Purchases of property and equipment | (10,851) | (10,891) |
Non-marketable investments | (1,350) | (35,500) |
Cash paid for acquisitions, net of cash acquired | (108,912) | |
Purchases of marketable securities | (523,219) | (552,675) |
Sales of marketable securities | 108,056 | 217,958 |
Maturities of marketable securities | 816,931 | 752,685 |
Other | (100) | |
Net cash provided by investing activities | 280,555 | 371,577 |
Cash flows from financing activities | ||
Proceeds from the exercise of stock options | 4,453 | 3,130 |
Net cash provided by financing activities | 4,453 | 3,130 |
Change in cash, cash equivalents, and restricted cash | 421,894 | 380,990 |
Cash, cash equivalents, and restricted cash, beginning of period | 546,543 | 521,260 |
Cash, cash equivalents, and restricted cash, end of period | 968,437 | 902,250 |
Supplemental disclosures | ||
Cash paid for income taxes, net | 11,008 | 808 |
Cash paid for interest | $ 5,127 | $ 4,899 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 769,584 | $ 462,478 |
Costs and expenses: | ||
Cost of revenue | 412,601 | 253,410 |
Research and development | 348,580 | 238,613 |
Sales and marketing | 150,286 | 122,205 |
General and administrative | 161,723 | 134,614 |
Total costs and expenses | 1,073,190 | 748,842 |
Operating loss | (303,606) | (286,364) |
Interest income | 1,137 | 8,589 |
Interest expense | (5,031) | (15,113) |
Other income (expense), net | 22,058 | (12,389) |
Loss before income taxes | (285,442) | (305,277) |
Income tax benefit (expense) | (1,440) | (659) |
Net loss | $ (286,882) | $ (305,936) |
Net loss per share attributable to Class A, Class B, and Class C common stockholders (Note 3): | ||
Basic | $ (0.19) | $ (0.21) |
Diluted | $ (0.19) | $ (0.21) |
Weighted average shares used in computation of net loss per share: | ||
Basic | 1,501,636 | 1,426,305 |
Diluted | 1,501,636 | 1,426,305 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (286,882) | $ (305,936) |
Other comprehensive income (loss), net of tax | ||
Unrealized gain (loss) on marketable securities, net of tax | 116 | 3,694 |
Foreign currency translation | (9,569) | (7,163) |
Total other comprehensive income (loss), net of tax | (9,453) | (3,469) |
Total comprehensive income (loss) | $ (296,335) | $ (309,405) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets | ||
Cash and cash equivalents | $ 967,519 | $ 545,618 |
Marketable securities | 1,589,178 | 1,991,922 |
Accounts receivable, net of allowance | 612,757 | 744,288 |
Prepaid expenses and other current assets | 69,245 | 56,147 |
Total current assets | 3,238,699 | 3,337,975 |
Property and equipment, net | 177,071 | 178,709 |
Operating lease right-of-use assets | 269,023 | 269,728 |
Intangible assets, net | 132,483 | 105,929 |
Goodwill | 1,025,710 | 939,259 |
Other assets | 215,794 | 192,638 |
Total assets | 5,058,780 | 5,024,238 |
Current liabilities | ||
Accounts payable | 126,132 | 71,908 |
Operating lease liabilities | 44,872 | 41,077 |
Accrued expenses and other current liabilities | 580,924 | 554,342 |
Total current liabilities | 751,928 | 667,327 |
Convertible senior notes, net | 2,245,203 | 1,675,169 |
Operating lease liabilities, noncurrent | 281,849 | 287,292 |
Other liabilities | 73,622 | 64,474 |
Total liabilities | 3,352,602 | 2,694,262 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity | ||
Additional paid-in capital | 9,777,646 | 10,200,141 |
Accumulated other comprehensive income (loss) | 11,910 | 21,363 |
Accumulated deficit | (8,083,393) | (7,891,542) |
Total stockholders’ equity | 1,706,178 | 2,329,976 |
Total liabilities and stockholders’ equity | 5,058,780 | 5,024,238 |
Class A Non-voting Common Stock | ||
Stockholders’ equity | ||
Common stock, value | 13 | 12 |
Class C Voting Common Stock | ||
Stockholders’ equity | ||
Common stock, value | $ 2 | $ 2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
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 | 1,263,733,000 | 1,248,010,000 |
Common stock outstanding | 1,263,733,000 | 1,248,010,000 |
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 | 23,640,000 | 23,696,000 |
Common stock outstanding | 23,640,000 | 23,696,000 |
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 | 231,627,000 | 231,627,000 |
Common stock outstanding | 231,627,000 | 231,627,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Additional Paid-in Capital | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Class A Non-voting Common Stock | Class A Non-voting Common StockCommon Stock | Class B Common Stock | Class B Common StockCommon Stock | Class C Common Stock | Class C Common StockCommon Stock |
Balance, beginning of period, shares at Dec. 31, 2019 | 1,160,127 | 24,522 | 231,147 | |||||||||
Balance, beginning of period at Dec. 31, 2019 | $ 9,205,256 | $ (6,945,930) | $ (780) | $ 573 | $ 12 | $ 2 | ||||||
Stock-based compensation expense | 172,049 | |||||||||||
Shares issued in connection with exercise of stock options under stock-based compensation plans, shares | 396 | 2 | ||||||||||
Shares issued in connection with exercise of stock options under stock-based compensation plans | 3,130 | |||||||||||
Issuance of voting/non-voting common stock for vesting of restricted stock units and restricted stock awards, shares | 21,759 | |||||||||||
Conversion of stock to voting/non-voting common stock, shares | 245 | (245) | ||||||||||
Issuance of Class C voting common stock for settlement of restricted stock awards net, Shares | 1,636 | |||||||||||
Net loss | $ (305,936) | (305,936) | $ (249,240) | $ (5,223) | $ (51,473) | |||||||
Other comprehensive income (loss), net of tax | $ (3,469) | (3,469) | ||||||||||
Balance, end of period, shares at Mar. 31, 2020 | 1,439,589 | 1,182,527 | 24,279 | 232,783 | ||||||||
Balance, end of period at Mar. 31, 2020 | $ 2,124,907 | 9,380,435 | (7,252,646) | (2,896) | $ 12 | $ 2 | ||||||
Balance, beginning of period, shares at Dec. 31, 2020 | 1,248,010 | 23,696 | 231,627 | |||||||||
Balance, beginning of period at Dec. 31, 2020 | 2,329,976 | 10,200,141 | $ (664,021) | (7,891,542) | $ 95,031 | 21,363 | $ 12 | $ 2 | ||||
Stock-based compensation expense | 237,073 | |||||||||||
Shares issued in connection with exercise of stock options under stock-based compensation plans, shares | 314 | 5 | ||||||||||
Shares issued in connection with exercise of stock options under stock-based compensation plans | 4,453 | |||||||||||
Issuance of voting/non-voting common stock for vesting of restricted stock units and restricted stock awards, shares | 15,348 | |||||||||||
Issuance of non-voting common stock for vesting of restricted stock units and restricted stock awards, net | $ 1 | |||||||||||
Conversion of stock to voting/non-voting common stock, shares | 61 | (61) | ||||||||||
Net loss | (286,882) | (286,882) | $ (238,107) | $ (4,523) | $ (44,252) | |||||||
Other comprehensive income (loss), net of tax | $ (9,453) | (9,453) | ||||||||||
Balance, end of period, shares at Mar. 31, 2021 | 1,519,000 | 1,263,733 | 23,640 | 231,627 | ||||||||
Balance, end of period at Mar. 31, 2021 | $ 1,706,178 | $ 9,777,646 | $ (8,083,393) | $ 11,910 | $ 13 | $ 2 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | 1. Description of Business and 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 Santa Monica, 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, 2020, as filed with the SEC in February 2021 (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, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021. 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, lease exit charges, forfeiture rate, the fair value of convertible senior notes, the fair value of stock-based awards, and the fair value of non-marketable investments. 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 August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Under ASU 2020-06, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. The new guidance also requires the if-converted method to be applied for all convertible instruments. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. Adoption of the standard requires using either a modified retrospective or a full retrospective approach. Effective January 1, 2021, we early adopted ASU 2020-06 using the modified retrospective approach. Adoption of the new standard resulted in a decrease to accumulated deficit of $95.0 million, a decrease to additional paid-in capital of $664.0 million, and an increase to convertible senior notes, net of $569.0 million. Interest expense recognized in future periods will be reduced as a result of accounting for the convertible debt instrument as a single liability measured at its amortized cost. In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), which clarifies the interaction between the accounting for equity securities in Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. Effective January 1, 2021, we adopted this standard on a prospective basis. The impact of adoption of this standard on our consolidated financial statements, including accounting policies, processes, and systems, was not material. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 2. Revenue We determine revenue recognition by first identifying the contract or contracts with a customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract, and recognizing revenue when, or as, we satisfy a performance obligation. 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, including value added tax, is excluded from reported revenue. We generate substantially all of our revenues by offering various advertising products on Snapchat, which include Snap Ads and AR Ads, referred to as advertising revenue. AR Ads include Sponsored Filters and Sponsored Lenses. Sponsored Filters 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 augmented reality experiences. The substantial 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 arrangements where another party is involved in providing specified services to a customer, we evaluate whether we are the principal or agent. In this evaluation, we consider if we obtain control of the specified goods or services before they are transferred to the customer, as well as other indicators such as the party primarily responsible for fulfillment, inventory risk, and discretion in establishing price. For advertising revenue arrangements where we are not the principal, we recognize revenue on a net basis. For the periods presented, revenue for arrangements where we are the agent was not material. We also generate revenue from sales of hardware. For the periods presented, revenue from the sales of hardware was not material. The following table represents our revenue disaggregated by geography based on the billing address of the advertising customer: Three Months Ended March 31, 2021 2020 (in thousands) Revenue: North America (1) (2) $ 531,363 $ 281,274 Europe (3) 129,118 81,077 Rest of world 109,103 100,127 Total revenue $ 769,584 $ 462,478 (1) North America includes Mexico, the Caribbean, and Central America. (2) United States revenue was $514.6 million and $273.2 million for the three months ended March 31, 2021 and 2020, respectively. (3) Europe includes Russia and Turkey. |
Net Loss per Share
Net Loss per Share | 3 Months Ended |
Mar. 31, 2021 | |
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. We have three classes of authorized common stock for which voting rights differ by class. 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, adjusted for v ested restricted stock units (“RSUs”) that have not been settled and restricted stock awards (“RSAs”) for which the risk of forfeiture has not yet lapsed. 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. We use the if-converted method for calculating any potential dilutive effect of the senior convertible notes due in 2025 and 2026 (collectively, the “Convertible Notes”) on diluted net loss per share. The Convertible Notes would have a dilutive impact on net income per share when the average market price of Class A common stock for a given period exceeds the respective conversion price of the Convertible Notes. For the periods presented, our potentially dilutive shares relating to stock options, RSUs, RSAs, and Convertible Notes 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, 2021 and 2020: Three Months Ended March 31, 2021 2020 (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 $ (238,107 ) $ (4,523 ) $ (44,252 ) $ (249,240 ) $ (5,223 ) $ (51,473 ) Net loss attributable to common stockholders $ (238,107 ) $ (4,523 ) $ (44,252 ) $ (249,240 ) $ (5,223 ) $ (51,473 ) Denominator: Basic shares: Weighted-average common shares - Basic 1,246,333 23,676 231,627 1,161,982 24,352 239,971 Diluted shares: Weighted-average common shares - Diluted 1,246,333 23,676 231,627 1,161,982 24,352 239,971 Net loss per share attributable to common stockholders: Basic $ (0.19 ) $ (0.19 ) $ (0.19 ) $ (0.21 ) $ (0.21 ) $ (0.21 ) Diluted $ (0.19 ) $ (0.19 ) $ (0.19 ) $ (0.21 ) $ (0.21 ) $ (0.21 ) 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, 2021 2020 (in thousands) Stock options 5,305 9,793 Unvested RSUs and RSAs 114,307 143,511 Convertible Notes (if-converted) 101,591 55,468 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
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, RSAs, RSUs, performance stock awards, performance cash awards, and other forms of stock awards to employees, directors, and consultants, including employees and consultants of our affiliate s . Restricted Stock Units and Restricted Stock Awards The following table summarizes the RSU and RSA activity during the three months ended March 31, 2021: Class A Outstanding Weighted- Average Grant Date Fair Value (in thousands, except per share data) Unvested at December 31, 2020 131,172 $ 15.10 Granted 3,252 $ 60.94 Vested (16,436 ) $ 15.02 Forfeited (3,681 ) $ 12.04 Unvested at March 31, 2021 114,307 $ 16.51 All RSUs and RSAs granted after December 31, 2016 vest on the satisfaction of only a service-based condition (“Post-2017 Awards”). Total unrecognized compensation cost related to Post-2017 Awards was $1.8 billion as of March 31, 2021 and is expected to be recognized over a weighted-average period of 2.5 years. The service condition for Post-2017 Awards 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. Stock Options The following table summarizes the stock option award activity under the Stock Plans during the three months ended March 31, 2021: 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, 2020 4,828 796 $ 10.37 5.20 $ 223,230 Granted — — $ — — $ — Exercised (314 ) (5 ) $ 13.98 — $ — Forfeited — — $ — — $ — Outstanding at March 31, 2021 4,514 791 $ 10.16 4.76 $ 223,515 (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, 2020 and March 31, 2021, respectively. Total unrecognized compensation cost related to unvested stock options was $6.7 million as of March 31, 2021 Stock-Based Compensation Expense by Function Total stock-based compensation expense by function was as follows: Three Months Ended March 31, 2021 2020 (in thousands) Cost of revenue $ 2,656 $ 1,782 Research and development 163,793 118,317 Sales and marketing 29,084 24,806 General and administrative 41,540 27,144 Total $ 237,073 $ 172,049 |
Business Acquisitions
Business Acquisitions | 3 Months Ended |
Mar. 31, 2021 | |
Business Combinations [Abstract] | |
Business Acquisitions | 5. Business Acquisitions 2021 Acquisitions Fit Analytics In March 2021, we acquired Fit Analytics GmbH (“Fit Analytics”), a sizing technology company that powers solutions for retailers and brands, to grow our e-commerce and shopping offerings. The purchase consideration for Fit Analytics was $124.4 million, which primarily represents current and future cash consideration payments. The allocation of purchase price is preliminary and is subject to additional information received related to the assets and liabilities that existed as of the acquisition date. Total (in thousands) Trademarks $ 800 Technology 17,000 Customer Relationships 17,000 Goodwill 88,132 Net deferred tax liability (5,643 ) Other assets acquired and liabilities assumed, net 7,160 Total $ 124,449 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 the first quarter of 2021, we completed an acquisition to enhance our existing platform, technology, and workforce. The purchase consideration was $7.6 million of which $5.8 million was allocated to goodwill and the remainder primarily to identifiable intangible assets. The goodwill amount represents synergies related to our existing platform expected to be realized from the business acquisitions and assembled workforces. The associated goodwill and intangible assets are not deductible for tax purposes. 2020 Acquisitions For the year ended December 31, 2020, we completed acquisitions to enhance our existing platform, technology, and workforce. The aggregate allocation of acquisition date fair value was as follows: Total (in thousands) Technology 46,112 Goodwill 162,747 Net deferred tax liability (5,741 ) Other assets acquired and liabilities assumed, net 1,392 Total $ 204,510 The goodwill amount represents synergies related to our existing platform expected to be realized from the business acquisitions and assembled workforces. Of the acquired goodwill and intangible assets, $49.6 million is deductible for tax purposes. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the three months ended March 31, 2021 were as follows: Goodwill (in thousands) Balance as of December 31, 2020 $ 939,259 Goodwill acquired 93,913 Foreign currency translation (7,462 ) Balance as of March 31, 2021 $ 1,025,710 Intangible assets consisted of the following: March 31, 2021 Weighted- Average Remaining Useful Life - Years Gross Carrying Amount Accumulated Amortization Net (in thousands, except years) Domain names 1.4 $ 414 $ 303 $ 111 Trademarks 3.0 800 11 789 Acquired developed technology 3.3 205,470 101,249 104,221 Customer relationships 8.0 17,000 89 16,911 Patents 4.7 20,145 9,694 10,451 $ 243,829 $ 111,346 $ 132,483 December 31, 2020 Weighted- Average Remaining Useful Life - Years Gross Carrying Amount Accumulated Amortization Net (in thousands except years) Domain names 1.6 $ 414 $ 283 $ 131 Acquired developed technology 3.2 206,197 111,129 95,068 Patents 4.9 19,860 9,130 10,730 $ 226,471 $ 120,542 $ 105,929 Amortization of intangible assets was $10.4 million and $8.0 million for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, the estimated intangible asset amortization expense for the next five years and thereafter is as follows: Estimated Amortization (in thousands) Remainder of 2021 $ 31,779 2022 34,711 2023 30,657 2024 20,159 2025 7,130 Thereafter 8,047 Total $ 132,483 |
Convertible Notes
Convertible Notes | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Convertible Notes | 7. Convertible Notes 2025 Notes In April 2020, we entered into a purchase agreement for the sale of an aggregate of $1.0 billion principal amount of senior convertible notes (the “2025 Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The 2025 Notes consisted of an $850.0 million initial placement and an over-allotment option that provided the initial purchasers of the 2025 Notes with the option to purchase an additional $150.0 million aggregate principal amount of the 2025 Notes, which was fully exercised. The 2025 Notes were issued pursuant to an Indenture dated April 28, 2020 (the “Indenture”). The net proceeds from the issuance of the 2025 Notes were $888.6 million, net of debt issuance costs and cash used to purchase the capped call transactions (the “2025 Capped Call Transactions”) discussed below. The debt issuance costs are amortized to interest expense using the effective interest rate method. The 2025 Notes are unsecured and unsubordinated obligations. Interest is payable in cash semi-annually in arrears beginning on November 1, 2020 at a rate of 0.25% per year. The 2025 Notes mature on May 1, 2025 unless repurchased, redeemed, or converted in accordance with the terms prior to such date. The 2025 Notes are convertible into cash, shares of our Class A common stock, or a combination of cash and shares of our Class A common stock, at our election, at an initial conversion rate of 46.1233 shares of Class A common stock per $1,000 principal amount of 2025 Notes, which is equivalent to an initial conversion price of approximately $21.68 (the “2025 Conversion Price”) per share of our Class A common stock. We may redeem for cash all or portions of the 2025 Notes, at our option, on or after May 6, 2023 based on certain circumstances. 2026 Notes In August 2019, we entered into a purchase agreement for the sale of an aggregate of $1.265 billion principal amount of senior convertible notes (the “2026 Notes”) in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The net proceeds from the issuance of the 2026 Notes were $1.15 billion, net of debt issuance costs and cash used to purchase the capped call transactions (the “2026 Capped Call Transactions”) discussed below. The debt issuance costs are amortized to interest expense using the effective interest rate method. The 2026 Notes are unsecured and unsubordinated obligations. Interest is payable in cash semi-annually in arrears beginning on February 1, 2020 at a rate of 0.75% per year. The 2026 Notes mature on August 1, 2026 unless repurchased, redeemed, or converted in accordance with the terms prior to such date. The 2026 Notes are convertible into cash, shares of our Class A common stock, or a combination of cash and shares of our Class A common stock, at our election, at an initial conversion rate of 43.8481 shares of Class A common stock per $1,000 principal amount of 2026 Notes, which is equivalent to an initial conversion price of approximately $22.81 (the “2026 Conversion Price”) per share of our Class A common stock. We may redeem for cash all or portions of the 2026 Notes, at our option, on or after August 6, 2023 based on certain circumstances. The Convertible Notes consisted of the following: As of March 31, 2021 2025 Notes 2026 Notes (in thousands) Principal $ 1,000,000 $ 1,265,000 Unamortized debt issuance costs (9,330 ) (10,467 ) Net carrying amount $ 990,670 $ 1,254,533 As of March 31, 2021, the debt issuance costs on the 2025 Notes and 2026 Notes will be amortized over the remaining period of approximately 4.1 years and 5.3 years, respectively. Prior to January 1, 2021, we separated the 2025 Notes and 2026 Notes into liability and equity components. On issuance, the carrying amount of the equity components was recorded as a debt discount and subsequently amortized to interest expense. Effective January 1, 2021, we early adopted ASU 2020-06 using the modified retrospective approach. The 2025 Notes and 2026 Notes are each accounted for as a single liability measured at its amortized cost, as no other embedded features require bifurcation and recognition as derivatives. Adoption of the new standard resulted in a decrease to accumulated deficit of $95.0 million, a decrease to additional paid-in capital of $664.0 million, and an increase to convertible senior notes, net of $569.0 million. Interest expense related to the amortization of debt issuance costs was $1.0 million for the three months ended March 31, 2021. Interest expense related to the amortization of debt discount and issuance costs was $11.6 million for the three months ended March 31, 2020, while contractual interest expense was $3.0 million and $2.4 million for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, the if-converted value of the 2025 Notes and 2026 Notes exceeded the principal amount by $1.4 billion and $1.6 billion, respectively. The sale price for conversion was satisfied as of March 31, 2021 and as a result, the Convertible Notes will continue to be during the second quarter of 2021 Refer to our audited consolidated financial statements and Note 7 in the Annual Report for additional details. Capped Call Transactions In connection with the pricing of the 2025 Notes and 2026 Notes, we entered into the 2025 Capped Call Transactions and the 2026 Capped Call Transactions (together, the “Capped Call Transactions”), respectively, with certain counterparties at a net cost of $100.0 million and $102.1 million, respectively. The cap price of the 2025 Capped Call Transactions is initially $32.12 per share of our Class A common stock and the cap price of the 2026 Capped Call Transaction is $32.58 per share of our Class A common stock. Both are subject to certain adjustments under the terms of the Capped Call Transactions. Conditions that cause adjustments to the initial strike price of the Capped Call Transactions mirror conditions that result in corresponding adjustments for the Convertible Notes. The Capped Call Transactions are intended to reduce potential dilution to holders of our Class A common stock beyond the conversion prices up to the cap prices on any conversion of the Convertible Notes or offset any cash payments we are required to make in excess of the principal amount, as the case may be, with such reduction or offset subject to a cap. The cost of the Capped Call Transactions was recorded as a reduction of our additional paid-in capital in our consolidated balance sheets. As of March 31, 2021, the Capped Call Transactions were in-the-money and will not be remeasured as long as they continue to meet the conditions for equity classification. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Commitments We have non-cancelable contractual agreements related to the hosting of our data processing, storage, and other computing services. In January 2017, we entered into the Google Cloud Platform License Agreement. 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”). Under the agreement, as amended, we are committed to spend an aggregate of $1.1 billion between January 2017 and December 2022 on AWS services ($90.0 million in 2018, $150.0 million in 2019, $215.0 million in 2020, $280.0 million in 2021, and $349.0 million in 2022). 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 term, although it will not count towards meeting the future minimum purchase commitments. The future minimum contractual commitment including commitments less than one year, as of March 31, 2021, for each of the next five years are as follows: Minimum Commitment (in thousands) Remainder of 2021 $ 554,319 2022 389,114 2023 447 2024 57 2025 — Thereafter 2 Total minimum commitments $ 943,939 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 that arose following our IPO. On January 17, 2020, we reached a preliminary agreement to settle the securities class actions. The preliminary settlement agreement was signed in January 2020 and provided for a resolution of all of the pending claims in the securities class actions for $187.5 million. In the fourth quarter of 2019, we recorded legal expense, net of amounts directly covered by insurance, of $100.0 million for the expected settlement of the stockholder actions since we concluded the loss was probable and estimable. The amount was recorded in general and administrative expense in our consolidated statements of operations. The settlement amount was paid into escrow in December 2020. The settlement amount was paid into escrow in December 2020. In March 2021, the federal court granted final approval of the settlement and entered judgment while the state court granted final approval of the settlement in March 2021 and entered judgement in April 2021. The settlement amount will be released from escrow following exhaustion of any appeals . 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 any pending matters, 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, privacy, regulatory, and employment 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, 2021 . We believe the fair value of these liabilities is immaterial and accordingly have no liabilities recorded for these agreements at March 31, 2021 . |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | 9. Leases We have various non-cancelable lease agreements for certain of our offices with original lease periods expiring between 2021 and 2042. Our lease terms may include options to extend or terminate the lease when it is reasonably certain we will exercise that option. Certain of the arrangements have free rent periods or escalating rent payment provisions. Leases with an initial term of twelve months or less are not recorded on the consolidated balance sheets. We recognize rent expense on a straight-line basis over the lease term. Additionally, we sublease certain operating leases to third parties primarily as a result of moving to a centralized corporate office in Santa Monica, California in 2018. Lease Cost The components of lease cost were as follows: Three Months Ended March 31, 2021 2020 (in thousands) Operating lease expense $ 14,940 $ 14,405 Sublease income (402 ) (742 ) Total net lease costs $ 14,538 $ 13,663 Lease Term and Discount Rate The weighted-average remaining lease term (in years) and discount rate related to the operating leases were as follows: Three Months Ended March 31, 2021 2020 Weighted-average remaining lease term 7.3 7.9 Weighted-average discount rate 5.5 % 5.6 % As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the lease commencement date to determine the present value of lease payments. Maturity of Lease Liabilities The present value of our operating lease liabilities as of March 31, 2021 were as follows: Operating Leases (in thousands) Remainder of 2021 $ 43,793 2022 66,872 2023 62,401 2024 62,038 2025 57,179 Thereafter 107,373 Total lease payments $ 399,656 Less: Imputed interest (72,935 ) Present value of lease liabilities $ 326,721 As of March 31, 2021, we have additional operating leases for facilities that have not yet commenced with lease obligations of $15.6 million. These operating leases will commence between 2021 and 2022 with lease terms of greater than one year to five years. This table does not include lease payments that were not fixed at commencement or modification. Other Information Cash payments included in the measurement of our o perating lease liabilities were $17.0 million and $21.1 million for the three months ended March 31, 2021 and 2020, respectively. Lease liabilities arising from obtaining operating lease right-of-use assets was $9.4 million for the three months ended March 31, 2021. Lease liabilities arising from obtaining operating lease right-of-use assets was not material for the three months ended March 31, 2020 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10. Fair Value Measurements Assets and liabilities measured at fair value are classified into the following categories: • Level 1: Quoted market prices in active markets for identical assets or liabilities. • Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. • Level 3: Unobservable inputs reflecting the reporting entity’s own assumptions or external inputs from inactive markets. We classify our cash equivalents and marketable securities within Level 1 or Level 2 because we use quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. There were no transfers between levels during the periods presented. The following tables set forth our financial assets as of March 31, 2021 and December 31, 2020 that are measured at fair value on a recurring basis during the period: March 31, 2021 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value (in thousands) Cash $ 930,155 $ — $ — $ 930,155 Level 1 securities: U.S. government securities 1,002,193 193 — 1,002,386 U.S. government agency securities 123,354 6 (6 ) 123,354 Level 2 securities: Corporate debt securities 68,483 3 (12 ) 68,474 Commercial paper 397,233 — — 397,233 Certificates of deposit 35,095 — — 35,095 Total $ 2,556,513 $ 202 $ (18 ) $ 2,556,697 December 31, 2020 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value (in thousands) Cash $ 464,006 $ — $ — $ 464,006 Level 1 securities: U.S. government securities 1,272,125 122 (21 ) 1,272,226 U.S. government agency securities 245,055 8 (24 ) 245,039 Level 2 securities: Corporate debt securities 81,158 1 (18 ) 81,141 Commercial paper 425,861 — — 425,861 Certificates of deposit 49,267 — — 49,267 Total $ 2,537,472 $ 131 $ (63 ) $ 2,537,540 Gross unrealized losses were not material as of March 31, 2021 and December 31, 2020, respectively. As of March 31, 2021, we considered any decreases in fair value on our marketable securities to be driven by factors other than credit risk, including market risk. All of our marketable securities have contractual maturities of less than one year. For certain non-marketable investments we have elected the fair value option , using Level 3 inputs, where changes in fair value are recorded in other income (expense), net. Unrealized gains and losses related to these debt investments were not material for the period ended March 31, 202 1 . As of March 31, 202 1 the fair value of the debt investments was recorded within other assets and was not material. W e carry the Convertible Notes at face value less the unamortized debt issuance costs on our consolidated balance sheets and present that fair value for disclosure purposes only. As of March 31, 2021, the fair value of the 2025 Notes and the 2026 Notes was $2.4 billion and $3.0 billion, respectively. The estimated fair value of the Convertible Notes, which are classified as Level 2 financial instruments, was determined based on the estimated or actual bid prices of the Convertible Notes in an over-the-counter market on the last business day of the period. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. 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 $1.4 million and $0.7 million for the three months ended March 31, 2021 and 2020, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income Loss [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 12. 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, 2020 $ (87 ) $ 21,450 $ 21,363 OCI before reclassifications 123 (9,569 ) (9,446 ) Amounts reclassified from AOCI (1) (7 ) — (7 ) Net current period OCI 116 (9,569 ) (9,453 ) Balance at March 31, 2021 $ 29 $ 11,881 $ 11,910 (1) 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, 2021 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 13. Property and Equipment, Net The following table lists property and equipment, net by geographic area: As of March 31, 2021 As of December 31, 2020 (in thousands) Property and equipment, net: United States $ 157,312 $ 157,596 Rest of world (1) 19,759 21,113 Total property and equipment, net $ 177,071 $ 178,709 (1) No individual country exceeded 10% of our total property and equipment, net for any period presented. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020, as filed with the SEC in February 2021 (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, 2021 are not necessarily indicative of the results to be expected for the year ending December 31, 2021. 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, lease exit charges, forfeiture rate, the fair value of convertible senior notes, the fair value of stock-based awards, and the fair value of non-marketable investments. 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 August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. Under ASU 2020-06, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. The new guidance also requires the if-converted method to be applied for all convertible instruments. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted. Adoption of the standard requires using either a modified retrospective or a full retrospective approach. Effective January 1, 2021, we early adopted ASU 2020-06 using the modified retrospective approach. Adoption of the new standard resulted in a decrease to accumulated deficit of $95.0 million, a decrease to additional paid-in capital of $664.0 million, and an increase to convertible senior notes, net of $569.0 million. Interest expense recognized in future periods will be reduced as a result of accounting for the convertible debt instrument as a single liability measured at its amortized cost. In January 2020, the FASB issued ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815), which clarifies the interaction between the accounting for equity securities in Topic 321, the accounting for equity method investments in Topic 323, and the accounting for certain forward contracts and purchased options in Topic 815. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. Effective January 1, 2021, we adopted this standard on a prospective basis. The impact of adoption of this standard on our consolidated financial statements, including accounting policies, processes, and systems, was not material. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue From Contract With Customer [Abstract] | |
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, 2021 2020 (in thousands) Revenue: North America (1) (2) $ 531,363 $ 281,274 Europe (3) 129,118 81,077 Rest of world 109,103 100,127 Total revenue $ 769,584 $ 462,478 (1) North America includes Mexico, the Caribbean, and Central America. (2) United States revenue was $514.6 million and $273.2 million for the three months ended March 31, 2021 and 2020, respectively. (3) Europe includes Russia and Turkey. |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 and 2020: Three Months Ended March 31, 2021 2020 (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 $ (238,107 ) $ (4,523 ) $ (44,252 ) $ (249,240 ) $ (5,223 ) $ (51,473 ) Net loss attributable to common stockholders $ (238,107 ) $ (4,523 ) $ (44,252 ) $ (249,240 ) $ (5,223 ) $ (51,473 ) Denominator: Basic shares: Weighted-average common shares - Basic 1,246,333 23,676 231,627 1,161,982 24,352 239,971 Diluted shares: Weighted-average common shares - Diluted 1,246,333 23,676 231,627 1,161,982 24,352 239,971 Net loss per share attributable to common stockholders: Basic $ (0.19 ) $ (0.19 ) $ (0.19 ) $ (0.21 ) $ (0.21 ) $ (0.21 ) Diluted $ (0.19 ) $ (0.19 ) $ (0.19 ) $ (0.21 ) $ (0.21 ) $ (0.21 ) |
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, 2021 2020 (in thousands) Stock options 5,305 9,793 Unvested RSUs and RSAs 114,307 143,511 Convertible Notes (if-converted) 101,591 55,468 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021: 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, 2020 4,828 796 $ 10.37 5.20 $ 223,230 Granted — — $ — — $ — Exercised (314 ) (5 ) $ 13.98 — $ — Forfeited — — $ — — $ — Outstanding at March 31, 2021 4,514 791 $ 10.16 4.76 $ 223,515 (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, 2020 and March 31, 2021, respectively. |
Summary of Total Stock-based Compensation Expense | Total stock-based compensation expense by function was as follows: Three Months Ended March 31, 2021 2020 (in thousands) Cost of revenue $ 2,656 $ 1,782 Research and development 163,793 118,317 Sales and marketing 29,084 24,806 General and administrative 41,540 27,144 Total $ 237,073 $ 172,049 |
Restricted Stock Units and Restricted Stock Awards | |
Summary of RSU and RSA Activity | Restricted Stock Units and Restricted Stock Awards The following table summarizes the RSU and RSA activity during the three months ended March 31, 2021: Class A Outstanding Weighted- Average Grant Date Fair Value (in thousands, except per share data) Unvested at December 31, 2020 131,172 $ 15.10 Granted 3,252 $ 60.94 Vested (16,436 ) $ 15.02 Forfeited (3,681 ) $ 12.04 Unvested at March 31, 2021 114,307 $ 16.51 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fit Analytics | |
Business Acquisition [Line Items] | |
Summary of Total Purchase Consideration Allocation | The allocation of purchase price is preliminary and is subject to additional information received related to the assets and liabilities that existed as of the acquisition date. Total (in thousands) Trademarks $ 800 Technology 17,000 Customer Relationships 17,000 Goodwill 88,132 Net deferred tax liability (5,643 ) Other assets acquired and liabilities assumed, net 7,160 Total $ 124,449 |
2020 Acquisitions | |
Business Acquisition [Line Items] | |
Summary of Total Purchase Consideration Allocation | The aggregate allocation of acquisition date fair value was as follows: Total (in thousands) Technology 46,112 Goodwill 162,747 Net deferred tax liability (5,741 ) Other assets acquired and liabilities assumed, net 1,392 Total $ 204,510 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 were as follows: Goodwill (in thousands) Balance as of December 31, 2020 $ 939,259 Goodwill acquired 93,913 Foreign currency translation (7,462 ) Balance as of March 31, 2021 $ 1,025,710 |
Schedule of Intangible Assets | Intangible assets consisted of the following: March 31, 2021 Weighted- Average Remaining Useful Life - Years Gross Carrying Amount Accumulated Amortization Net (in thousands, except years) Domain names 1.4 $ 414 $ 303 $ 111 Trademarks 3.0 800 11 789 Acquired developed technology 3.3 205,470 101,249 104,221 Customer relationships 8.0 17,000 89 16,911 Patents 4.7 20,145 9,694 10,451 $ 243,829 $ 111,346 $ 132,483 December 31, 2020 Weighted- Average Remaining Useful Life - Years Gross Carrying Amount Accumulated Amortization Net (in thousands except years) Domain names 1.6 $ 414 $ 283 $ 131 Acquired developed technology 3.2 206,197 111,129 95,068 Patents 4.9 19,860 9,130 10,730 $ 226,471 $ 120,542 $ 105,929 |
Schedule of Estimated Intangible Asset Amortization Expense | As of March 31, 2021, the estimated intangible asset amortization expense for the next five years and thereafter is as follows: Estimated Amortization (in thousands) Remainder of 2021 $ 31,779 2022 34,711 2023 30,657 2024 20,159 2025 7,130 Thereafter 8,047 Total $ 132,483 |
Convertible Notes (Tables)
Convertible Notes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Convertible Notes | The Convertible Notes consisted of the following: As of March 31, 2021 2025 Notes 2026 Notes (in thousands) Principal $ 1,000,000 $ 1,265,000 Unamortized debt issuance costs (9,330 ) (10,467 ) Net carrying amount $ 990,670 $ 1,254,533 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Contractual Commitments | The future minimum contractual commitment including commitments less than one year, as of March 31, 2021, for each of the next five years are as follows: Minimum Commitment (in thousands) Remainder of 2021 $ 554,319 2022 389,114 2023 447 2024 57 2025 — Thereafter 2 Total minimum commitments $ 943,939 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Components of Lease Cost | The components of lease cost were as follows: Three Months Ended March 31, 2021 2020 (in thousands) Operating lease expense $ 14,940 $ 14,405 Sublease income (402 ) (742 ) Total net lease costs $ 14,538 $ 13,663 |
Summary of Weighted Average Remaining Lease Term and Discount Rate Related to Operating Leases | Lease Term and Discount Rate The weighted-average remaining lease term (in years) and discount rate related to the operating leases were as follows: Three Months Ended March 31, 2021 2020 Weighted-average remaining lease term 7.3 7.9 Weighted-average discount rate 5.5 % 5.6 % |
Present Value of Operating Lease Liabilities | Maturity of Lease Liabilities The present value of our operating lease liabilities as of March 31, 2021 were as follows: Operating Leases (in thousands) Remainder of 2021 $ 43,793 2022 66,872 2023 62,401 2024 62,038 2025 57,179 Thereafter 107,373 Total lease payments $ 399,656 Less: Imputed interest (72,935 ) Present value of lease liabilities $ 326,721 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Measured at Fair Value on Recurring Basis | The following tables set forth our financial assets as of March 31, 2021 and December 31, 2020 that are measured at fair value on a recurring basis during the period: March 31, 2021 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value (in thousands) Cash $ 930,155 $ — $ — $ 930,155 Level 1 securities: U.S. government securities 1,002,193 193 — 1,002,386 U.S. government agency securities 123,354 6 (6 ) 123,354 Level 2 securities: Corporate debt securities 68,483 3 (12 ) 68,474 Commercial paper 397,233 — — 397,233 Certificates of deposit 35,095 — — 35,095 Total $ 2,556,513 $ 202 $ (18 ) $ 2,556,697 December 31, 2020 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Total Estimated Fair Value (in thousands) Cash $ 464,006 $ — $ — $ 464,006 Level 1 securities: U.S. government securities 1,272,125 122 (21 ) 1,272,226 U.S. government agency securities 245,055 8 (24 ) 245,039 Level 2 securities: Corporate debt securities 81,158 1 (18 ) 81,141 Commercial paper 425,861 — — 425,861 Certificates of deposit 49,267 — — 49,267 Total $ 2,537,472 $ 131 $ (63 ) $ 2,537,540 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2020 $ (87 ) $ 21,450 $ 21,363 OCI before reclassifications 123 (9,569 ) (9,446 ) Amounts reclassified from AOCI (1) (7 ) — (7 ) Net current period OCI 116 (9,569 ) (9,453 ) Balance at March 31, 2021 $ 29 $ 11,881 $ 11,910 (1) 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, 2021 | |
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, 2021 As of December 31, 2020 (in thousands) Property and equipment, net: United States $ 157,312 $ 157,596 Rest of world (1) 19,759 21,113 Total property and equipment, net $ 177,071 $ 178,709 (1) No individual country exceeded 10% of our total property and equipment, net for any period presented. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | |
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Accumulated deficit | $ (8,083,393) | $ (7,891,542) | |
Additional paid-in capital | 9,777,646 | 10,200,141 | |
Convertible senior notes, net | $ 2,245,203 | $ 1,675,169 | |
Accounting Standards Update 2020-06 | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | ||
Change in accounting principle, accounting standards update, early adoption [true false] | true | ||
Change in accounting principle, accounting standards update, transition option elected | snap:AccountingStandardsUpdate202006RetrospectiveMember | ||
Change in accounting principle, accounting standards update, adopted [true false] | true | ||
Accounting Standards Update 2020-06 | Revision of Prior Period, Accounting Standards Update, Adjustment | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Accumulated deficit | $ (95,000) | ||
Additional paid-in capital | (664,000) | ||
Convertible senior notes, net | $ 569,000 | ||
Accounting Standards Update 2020-01 | |||
Description Of Business And Summary Of Significant Accounting Policies [Line Items] | |||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | ||
Change in accounting principle, accounting standards update, transition option elected | snap:AccountingStandardsUpdate202001ProspectiveMember | ||
Change in accounting principle, accounting standards update, adopted [true false] | true | ||
Change in accounting principle, accounting standards update, immaterial effect [true false] | true |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 769,584 | $ 462,478 |
North America | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 531,363 | 281,274 |
Europe | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | 129,118 | 81,077 |
Rest of World | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 109,103 | $ 100,127 |
Revenue - Disaggregation of R_2
Revenue - Disaggregation of Revenue by Geography (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 769,584 | $ 462,478 |
United States | ||
Disaggregation Of Revenue [Line Items] | ||
Total revenue | $ 514,600 | $ 273,200 |
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, 2021 | Mar. 31, 2020 | |
Numerator: | ||
Net loss | $ (286,882) | $ (305,936) |
Basic shares: | ||
Weighted-average common shares - Basic | 1,501,636 | 1,426,305 |
Diluted shares: | ||
Weighted-average common shares - Diluted | 1,501,636 | 1,426,305 |
Net loss per share attributable to common stockholders: | ||
Basic | $ (0.19) | $ (0.21) |
Diluted | $ (0.19) | $ (0.21) |
Class A Common Stock | ||
Numerator: | ||
Net loss | $ (238,107) | $ (249,240) |
Net loss attributable to common stockholders | $ (238,107) | $ (249,240) |
Basic shares: | ||
Weighted-average common shares - Basic | 1,246,333 | 1,161,982 |
Diluted shares: | ||
Weighted-average common shares - Diluted | 1,246,333 | 1,161,982 |
Net loss per share attributable to common stockholders: | ||
Basic | $ (0.19) | $ (0.21) |
Diluted | $ (0.19) | $ (0.21) |
Class B Common Stock | ||
Numerator: | ||
Net loss | $ (4,523) | $ (5,223) |
Net loss attributable to common stockholders | $ (4,523) | $ (5,223) |
Basic shares: | ||
Weighted-average common shares - Basic | 23,676 | 24,352 |
Diluted shares: | ||
Weighted-average common shares - Diluted | 23,676 | 24,352 |
Net loss per share attributable to common stockholders: | ||
Basic | $ (0.19) | $ (0.21) |
Diluted | $ (0.19) | $ (0.21) |
Class C Common Stock | ||
Numerator: | ||
Net loss | $ (44,252) | $ (51,473) |
Net loss attributable to common stockholders | $ (44,252) | $ (51,473) |
Basic shares: | ||
Weighted-average common shares - Basic | 231,627 | 239,971 |
Diluted shares: | ||
Weighted-average common shares - Diluted | 231,627 | 239,971 |
Net loss per share attributable to common stockholders: | ||
Basic | $ (0.19) | $ (0.21) |
Diluted | $ (0.19) | $ (0.21) |
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, 2021 | Mar. 31, 2020 | |
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 | 5,305 | 9,793 |
Unvested Restricted Stock Units And Restricted Stock Awards 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 | 114,307 | 143,511 |
Convertible Notes (If Converted) | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of diluted net loss per share | 101,591 | 55,468 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($)Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of share-based employee compensation plans | Plan | 3 |
Post-2017 Awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average recognition period | 2 years 6 months |
Unrecognized compensation cost | $ 1,800 |
Post-2017 Awards Granted Prior to February 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Service condition satisfied, years | 4 years |
Post-2017 Awards Granted Prior to February 2018 | First Year | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Award vesting percentage | 10.00% |
Post-2017 Awards Granted Prior to February 2018 | Second Year | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Award vesting percentage | 20.00% |
Post-2017 Awards Granted Prior to February 2018 | Third Year | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Award vesting percentage | 30.00% |
Post-2017 Awards Granted Prior to February 2018 | Fourth Year | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Award vesting percentage | 40.00% |
Post-2017 Awards Granted After February 2018 | Minimum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Service condition satisfied, years | 1 year |
Post-2017 Awards Granted After February 2018 | Maximum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Service condition satisfied, years | 4 years |
Stock Options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Weighted average recognition period | 1 year |
Unrecognized compensation cost | $ 6.7 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of RSU and RSA Activity (Details) - Restricted Stock Units and Restricted Stock Awards shares in Thousands | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Weighted-Average Grant Date Fair Value per Restricted Stock | |
Weighted-Average Grant Date Fair Value per Restricted Stock, Unvested Beginning Balance | $ / shares | $ 15.10 |
Weighted-Average Grant Date Fair Value per Restricted Stock, Granted | $ / shares | 60.94 |
Weighted-Average Grant Date Fair Value per Restricted Stock, Vested | $ / shares | 15.02 |
Weighted-Average Grant Date Fair Value per Restricted Stock, Forfeited | $ / shares | 12.04 |
Weighted-Average Grant Date Fair Value per Restricted Stock, Unvested Ending Balance | $ / shares | $ 16.51 |
Class A Common Stock | |
Outstanding Restricted Stock | |
Outstanding Restricted Stock, Unvested Beginning Balance | shares | 131,172 |
Outstanding Restricted Stock, Granted | shares | 3,252 |
Outstanding Restricted Stock, Vested | shares | (16,436) |
Outstanding Restricted Stock, Forfeited | shares | (3,681) |
Outstanding Restricted Stock, Unvested Ending Balance | shares | 114,307 |
Stockholders' Equity - Summar_2
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, 2021 | Dec. 31, 2020 | |
Weighted-Average Exercise Price | ||
Weighted-Average Exercise Price, Beginning balance | $ 10.37 | |
Weighted-Average Exercise Price, Exercised | 13.98 | |
Weighted-Average Exercise Price, Ending balance | $ 10.16 | $ 10.37 |
Weighted-Average Remaining Contractual Term | ||
Weighted-Average Remaining Contractual Term (in years) | 4 years 9 months 3 days | 5 years 2 months 12 days |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value, Outstanding | $ 223,515 | $ 223,230 |
Class A Common Stock | ||
Number of Shares | ||
Number of Shares, Beginning balance | 4,828 | |
Number of Shares, Exercised | (314) | |
Number of Shares, Ending balance | 4,514 | 4,828 |
Class B Common Stock | ||
Number of Shares | ||
Number of Shares, Beginning balance | 796 | |
Number of Shares, Exercised | (5) | |
Number of Shares, Ending balance | 791 | 796 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Total Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total | $ 237,073 | $ 172,049 |
Cost of Revenue | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total | 2,656 | 1,782 |
Research and Development | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total | 163,793 | 118,317 |
Sales and Marketing | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total | 29,084 | 24,806 |
General and Administrative | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Total | $ 41,540 | $ 27,144 |
Business Acquisitions - Additio
Business Acquisitions - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||
Goodwill deductible for tax purposes | $ 49.6 | ||
Fit Analytics | |||
Business Acquisition [Line Items] | |||
Purchase consideration | $ 124.4 | ||
Other Acquisitions | |||
Business Acquisition [Line Items] | |||
Purchase consideration | $ 7.6 | ||
Goodwill deductible for tax purposes | $ 5.8 | $ 5.8 |
Business Acquisitions - Summary
Business Acquisitions - Summary of Total Purchase Consideration Allocation (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||
Goodwill | $ 1,025,710 | $ 939,259 |
Fit Analytics | ||
Business Acquisition [Line Items] | ||
Goodwill | 88,132 | |
Net deferred tax liability | (5,643) | |
Other assets acquired and liabilities assumed, net | 7,160 | |
Total | 124,449 | |
Fit Analytics | Trademarks | ||
Business Acquisition [Line Items] | ||
Finite lived intangible assets | 800 | |
Fit Analytics | Technology | ||
Business Acquisition [Line Items] | ||
Finite lived intangible assets | 17,000 | |
Fit Analytics | Customer Relationships | ||
Business Acquisition [Line Items] | ||
Finite lived intangible assets | $ 17,000 | |
2020 Acquisitions | ||
Business Acquisition [Line Items] | ||
Goodwill | 162,747 | |
Net deferred tax liability | (5,741) | |
Other assets acquired and liabilities assumed, net | 1,392 | |
Total | 204,510 | |
2020 Acquisitions | Technology | ||
Business Acquisition [Line Items] | ||
Finite lived intangible assets | $ 46,112 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill, beginning balance | $ 939,259 |
Goodwill acquired | 93,913 |
Foreign currency translation | (7,462) |
Goodwill, ending balance | $ 1,025,710 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 243,829 | $ 226,471 |
Accumulated Amortization | 111,346 | 120,542 |
Net | $ 132,483 | $ 105,929 |
Domain Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life - Years | 1 year 4 months 24 days | 1 year 7 months 6 days |
Gross Carrying Amount | $ 414 | $ 414 |
Accumulated Amortization | 303 | 283 |
Net | $ 111 | $ 131 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life - Years | 3 years | |
Gross Carrying Amount | $ 800 | |
Accumulated Amortization | 11 | |
Net | $ 789 | |
Acquired Developed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life - Years | 3 years 3 months 18 days | 3 years 2 months 12 days |
Gross Carrying Amount | $ 205,470 | $ 206,197 |
Accumulated Amortization | 101,249 | 111,129 |
Net | $ 104,221 | $ 95,068 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life - Years | 8 years | |
Gross Carrying Amount | $ 17,000 | |
Accumulated Amortization | 89 | |
Net | $ 16,911 | |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Remaining Useful Life - Years | 4 years 8 months 12 days | 4 years 10 months 24 days |
Gross Carrying Amount | $ 20,145 | $ 19,860 |
Accumulated Amortization | 9,694 | 9,130 |
Net | $ 10,451 | $ 10,730 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 10.4 | $ 8 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Intangible Asset Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | ||
Remainder of 2021 | $ 31,779 | |
2022 | 34,711 | |
2023 | 30,657 | |
2024 | 20,159 | |
2025 | 7,130 | |
Thereafter | 8,047 | |
Net | $ 132,483 | $ 105,929 |
Convertible Notes - Additional
Convertible Notes - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||||
Apr. 30, 2020 | Aug. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Jan. 01, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||||
Accumulated deficit | $ (8,083,393,000) | $ (7,891,542,000) | ||||
Additional paid-in capital | 9,777,646,000 | 10,200,141,000 | ||||
Convertible senior notes, net | 2,245,203,000 | $ 1,675,169,000 | ||||
Amortization of debt discount and issuance costs | $ 1,044,000 | $ 11,563,000 | ||||
Accounting Standards Update 2020-06 | ||||||
Debt Instrument [Line Items] | ||||||
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | |||||
Change in accounting principle, accounting standards update, adopted [true false] | true | |||||
Change in accounting principle, accounting standards update, early adoption [true false] | true | |||||
Change in accounting principle, accounting standards update, transition option elected | snap:AccountingStandardsUpdate202006RetrospectiveMember | |||||
Accounting Standards Update 2020-06 | Revision of Prior Period, Accounting Standards Update, Adjustment | ||||||
Debt Instrument [Line Items] | ||||||
Accumulated deficit | $ (95,000,000) | |||||
Additional paid-in capital | (664,000,000) | |||||
Convertible senior notes, net | $ 569,000,000 | |||||
2025 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 1,000,000,000 | $ 1,000,000,000 | ||||
Indenture date | Apr. 28, 2020 | |||||
Proceeds from issuance of convertible notes, net of issuance costs | $ 888,600,000 | |||||
Interest payment beginning date | Nov. 1, 2020 | |||||
Debt instrument, interest rate | 0.25% | |||||
Debt instrument, interest rate terms | Interest is payable in cash semi-annually in arrears beginning on November 1, 2020 at a rate of 0.25% per year. | |||||
Debt instrument, maturity date | May 1, 2025 | |||||
Debt instrument convertible, amortization period | 4 years 1 month 6 days | |||||
If-converted value exceeding principal amount | $ 1,400,000,000 | |||||
Cap price, net cost | $ 100,000,000 | |||||
2025 Notes | Class A Non-voting Common Stock | ||||||
Debt Instrument [Line Items] | ||||||
Shares issued upon conversion of each $1000 principal amount | 46.1233 | |||||
Debt instrument, convertible principal amount used in conversion rate | $ 1,000 | |||||
Conversion price per share | $ 21.68 | |||||
Cap price, per share | $ 32.12 | |||||
2026 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 1,265,000,000 | $ 1,265,000,000 | ||||
Proceeds from issuance of convertible notes, net of issuance costs | $ 1,150,000,000 | |||||
Interest payment beginning date | Feb. 1, 2020 | |||||
Debt instrument, interest rate | 0.75% | |||||
Debt instrument, interest rate terms | Interest is payable in cash semi-annually in arrears beginning on February 1, 2020 at a rate of 0.75% per year. | |||||
Debt instrument, maturity date | Aug. 1, 2026 | |||||
Debt instrument convertible, amortization period | 5 years 3 months 18 days | |||||
Amortization of debt discount and issuance costs | 11,600,000 | |||||
Amortization of debt issuance costs | $ 1,000,000 | |||||
Contractual interest expense | 3,000,000 | $ 2,400,000 | ||||
If-converted value exceeding principal amount | 1,600,000,000 | |||||
Cap price, net cost | $ 102,100,000 | |||||
2026 Notes | Class A Non-voting Common Stock | ||||||
Debt Instrument [Line Items] | ||||||
Shares issued upon conversion of each $1000 principal amount | 43.8481 | |||||
Debt instrument, convertible principal amount used in conversion rate | $ 1,000 | |||||
Conversion price per share | $ 22.81 | |||||
Cap price, per share | $ 32.58 | |||||
Initial Placement | 2025 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 850,000,000 | |||||
Over-Allotment Option | 2025 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, principal amount | $ 150,000,000 |
Convertible Notes - Summary of
Convertible Notes - Summary of Convertible Notes (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Apr. 30, 2020 | Aug. 31, 2019 |
2025 Notes | |||
Debt Instrument [Line Items] | |||
Principal | $ 1,000,000 | $ 1,000,000 | |
Unamortized debt issuance costs | (9,330) | ||
Net carrying amount | 990,670 | ||
2026 Notes | |||
Debt Instrument [Line Items] | |||
Principal | 1,265,000 | $ 1,265,000 | |
Unamortized debt issuance costs | (10,467) | ||
Net carrying amount | $ 1,254,533 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |||
Jan. 31, 2017 | Mar. 31, 2021 | Dec. 31, 2019 | Jan. 17, 2020 | Oct. 31, 2018 | |
Indemnification Agreement | |||||
Loss Contingencies [Line Items] | |||||
Liabilities recorded | $ 0 | ||||
Securities Class Actions | |||||
Loss Contingencies [Line Items] | |||||
Legal expense, net of amounts directly covered by insurance | $ 100,000,000 | ||||
Securities Class Actions | Pending Litigation | |||||
Loss Contingencies [Line Items] | |||||
Loss contingency, expected settlement amount | $ 187,500,000 | ||||
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”). Under the agreement, as amended, we are committed to spend an aggregate of $1.1 billion between January 2017 and December 2022 on AWS services ($90.0 million in 2018, $150.0 million in 2019, $215.0 million in 2020, $280.0 million in 2021, and $349.0 million in 2022). 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 term, although it will not count towards meeting the future minimum purchase commitments. | ||||
Minimum purchase commitment to spend between January 2017 and December 2022 | $ 1,100,000,000 | ||||
Minimum purchase commitment, due in 2018 | 90,000,000 | ||||
Minimum purchase commitment, due in 2019 | 150,000,000 | ||||
Minimum purchase commitment, due in 2020 | 215,000,000 | ||||
Minimum purchase commitment, due in 2021 | 280,000,000 | ||||
Minimum purchase commitment, due in 2022 | $ 349,000,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Contractual Commitments (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remainder of 2021 | $ 554,319 |
2022 | 389,114 |
2023 | 447 |
2024 | 57 |
Thereafter | 2 |
Total minimum commitments | $ 943,939 |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease expense | $ 14,940 | $ 14,405 |
Sublease income | (402) | (742) |
Total net lease costs | $ 14,538 | $ 13,663 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Term and Discount Rate Related to Operating Leases (Details) | Mar. 31, 2021 | Mar. 31, 2020 |
Leases [Abstract] | ||
Weighted-average remaining lease term | 7 years 3 months 18 days | 7 years 10 months 24 days |
Weighted-average discount rate | 5.50% | 5.60% |
Leases - Present Value of Opera
Leases - Present Value of Operating Lease Liabilities (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
Remainder of 2021 | $ 43,793 |
2022 | 66,872 |
2023 | 62,401 |
2024 | 62,038 |
2025 | 57,179 |
Thereafter | 107,373 |
Total lease payments | 399,656 |
Less: Imputed interest | (72,935) |
Present value of lease liabilities | $ 326,721 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Lessee Lease Description [Line Items] | ||
Lease obligations for additional leases not yet commenced | $ 15.6 | |
Operating leases not yet commenced, start year | 2021 | |
Operating leases not yet commenced, end year | 2022 | |
Operating lease liabilities | $ 17 | $ 21.1 |
Lease liabilities arising from obtaining operating lease right-of-use assets | $ 9.4 | |
Minimum | ||
Lessee Lease Description [Line Items] | ||
Operating leases, terms | 1 year | |
Maximum | ||
Lessee Lease Description [Line Items] | ||
Operating leases, terms | 5 years |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) | Mar. 31, 2021USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Fair value assets transferred from level 1 to level 2 | $ 0 |
Fair value assets transferred from level 2 to level 1 | 0 |
Fair value liabilities transferred from level 1 to level 2 | 0 |
Fair value liabilities transferred from level 2 to level 1 | 0 |
Level 2 Securities | 2025 Notes | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Convertible notes | 2,400,000,000 |
Level 2 Securities | 2026 Notes | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Convertible notes | $ 3,000,000,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash, Cost or Amortized Cost | $ 967,519 | $ 545,618 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and Marketable securities, Cost or Amortized Cost | 2,556,513 | 2,537,472 |
Cash and Marketable securities, Gross Unrealized Gains | 202 | 131 |
Cash and Marketable securities, Gross Unrealized Losses | (18) | (63) |
Cash and Marketable Securities, Total Estimated Fair Value | 2,556,697 | 2,537,540 |
Fair Value, Measurements, Recurring | Cash | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash, Cost or Amortized Cost | 930,155 | 464,006 |
Cash, Total Estimated Fair Value | 930,155 | 464,006 |
Fair Value, Measurements, Recurring | Level 1 Securities | U.S. Government Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities, Cost or Amortized Cost | 1,002,193 | 1,272,125 |
Marketable securities, Gross Unrealized Gains | 193 | 122 |
Marketable securities, Gross Unrealized Losses | (21) | |
Marketable securities, Total Estimated Fair Value | 1,002,386 | 1,272,226 |
Fair Value, Measurements, Recurring | Level 1 Securities | U.S. Government Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities, Cost or Amortized Cost | 123,354 | 245,055 |
Marketable securities, Gross Unrealized Gains | 6 | 8 |
Marketable securities, Gross Unrealized Losses | (6) | (24) |
Marketable securities, Total Estimated Fair Value | 123,354 | 245,039 |
Fair Value, Measurements, Recurring | Level 2 Securities | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities, Cost or Amortized Cost | 68,483 | 81,158 |
Marketable securities, Gross Unrealized Gains | 3 | 1 |
Marketable securities, Gross Unrealized Losses | (12) | (18) |
Marketable securities, Total Estimated Fair Value | 68,474 | 81,141 |
Fair Value, Measurements, Recurring | Level 2 Securities | Commercial Paper | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities, Cost or Amortized Cost | 397,233 | 425,861 |
Marketable securities, Total Estimated Fair Value | 397,233 | 425,861 |
Fair Value, Measurements, Recurring | Level 2 Securities | Certificates of Deposit | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities, Cost or Amortized Cost | 35,095 | 49,267 |
Marketable securities, Total Estimated Fair Value | $ 35,095 | $ 49,267 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 1,440 | $ 659 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedules of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance, beginning of period | $ 2,329,976 | |
OCI before reclassifications | (9,446) | |
Amounts reclassified from AOCI | (7) | |
Total other comprehensive income (loss), net of tax | (9,453) | $ (3,469) |
Balance, end of period | 1,706,178 | 2,124,907 |
Marketable Securities | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance, beginning of period | (87) | |
OCI before reclassifications | 123 | |
Amounts reclassified from AOCI | (7) | |
Total other comprehensive income (loss), net of tax | 116 | |
Balance, end of period | 29 | |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance, beginning of period | 21,450 | |
OCI before reclassifications | (9,569) | |
Total other comprehensive income (loss), net of tax | (9,569) | |
Balance, end of period | 11,881 | |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Balance, beginning of period | 21,363 | 573 |
Total other comprehensive income (loss), net of tax | (9,453) | (3,469) |
Balance, end of period | $ 11,910 | $ (2,896) |
Property and Equipment, Net - P
Property and Equipment, Net - Property and Equipment, Net by Geographic Area (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property and equipment, net: | ||
Total property and equipment, net | $ 177,071 | $ 178,709 |
United States | ||
Property and equipment, net: | ||
Total property and equipment, net | 157,312 | 157,596 |
Rest of World | ||
Property and equipment, net: | ||
Total property and equipment, net | $ 19,759 | $ 21,113 |
Property and Equipment, Net -_2
Property and Equipment, Net - Property and Equipment, Net by Geographic Area (Parenthetical) (Details) - Country | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
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 |