Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | TTD | |
Entity Registrant Name | THE TRADE DESK, INC | |
Entity Central Index Key | 0001671933 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-37879 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-1887399 | |
Entity Address, Address Line One | 42 N. Chestnut Street | |
Entity Address, City or Town | Ventura | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 93001 | |
City Area Code | 805 | |
Local Phone Number | 585-3434 | |
Title of 12(b) Security | Class A Common Stock | |
Security Exchange Name | NASDAQ | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 39,834,865 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 5,299,496 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 173,446 | $ 207,232 |
Short-term investments | 123,082 | |
Accounts receivable, net | 835,958 | 834,764 |
Prepaid expenses and other current assets | 26,641 | 14,527 |
TOTAL CURRENT ASSETS | 1,159,127 | 1,056,523 |
Property and equipment, net | 47,734 | 33,046 |
Operating lease assets | 177,276 | |
Deferred income taxes | 8,460 | 8,460 |
Other assets, non-current | 22,442 | 19,843 |
TOTAL ASSETS | 1,415,039 | 1,117,872 |
Current liabilities: | ||
Accounts payable | 647,547 | 669,147 |
Accrued expenses and other current liabilities | 40,553 | 44,844 |
Operating lease liabilities | 15,938 | |
TOTAL CURRENT LIABILITIES | 704,038 | 713,991 |
Operating lease liabilities, non-current | 167,668 | |
Other liabilities, non-current | 7,941 | 9,314 |
TOTAL LIABILITIES | 879,647 | 723,305 |
Commitments and contingencies (Note 9) | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, par value $0.000001; 100,000 shares authorized, zero shares issued and outstanding as of September 30, 2019 and December 31, 2018 | ||
Common stock, par value $0.000001 Class A, 1,000,000 shares authorized; 39,810 and 36,822 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively Class B, 95,000 shares authorized; 5,311 and 7,042 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 0 | 0 |
Additional paid-in capital | 353,899 | 270,447 |
Retained earnings | 181,493 | 124,120 |
TOTAL STOCKHOLDERS’ EQUITY | 535,392 | 394,567 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,415,039 | $ 1,117,872 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Preferred stock | ||
Preferred stock, par value (in dollars per share) | $ 0.000001 | $ 0.000001 |
Preferred stock, authorized shares | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.000001 | $ 0.000001 |
Class A common stock | ||
Common stock | ||
Common stock, authorized shares | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 39,810,000 | 36,822,000 |
Common stock, shares outstanding | 39,810,000 | 36,822,000 |
Class B common stock | ||
Common stock | ||
Common stock, authorized shares | 95,000,000 | 95,000,000 |
Common stock, shares issued | 5,311,000 | 7,042,000 |
Common stock, shares outstanding | 5,311,000 | 7,042,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 164,203 | $ 118,825 | $ 445,114 | $ 316,826 |
Type of Revenue [Extensible List] | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember |
Operating expenses: | ||||
Platform operations | $ 39,932 | $ 29,344 | $ 108,913 | $ 78,842 |
Type of Cost, Good or Service [Extensible List] | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember |
Sales and marketing | $ 36,142 | $ 23,287 | $ 89,951 | $ 60,007 |
Technology and development | 29,185 | 22,621 | 83,949 | 59,806 |
General and administrative | 37,017 | 21,310 | 102,755 | 59,816 |
Total operating expenses | 142,276 | 96,562 | 385,568 | 258,471 |
Income from operations | 21,927 | 22,263 | 59,546 | 58,355 |
Other expense (income): | ||||
Interest expense (income), net | (1,480) | (237) | (3,763) | (113) |
Foreign currency exchange (gain) loss, net | (412) | 395 | 784 | 2,035 |
Total other expense (income), net | (1,892) | 158 | (2,979) | 1,922 |
Income before income taxes | 23,819 | 22,105 | 62,525 | 56,433 |
Provision for income taxes | 4,397 | 1,813 | 5,152 | 7,728 |
Net income | $ 19,422 | $ 20,292 | $ 57,373 | $ 48,705 |
Earnings per share: | ||||
Basic | $ 0.43 | $ 0.47 | $ 1.29 | $ 1.15 |
Diluted | $ 0.40 | $ 0.44 | $ 1.20 | $ 1.07 |
Weighted average shares outstanding: | ||||
Basic | 44,771 | 42,721 | 44,363 | 42,178 |
Diluted | 48,037 | 46,576 | 47,728 | 45,460 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings |
Balance at beginning of period at Dec. 31, 2017 | $ 245,583 | $ 209,603 | $ 35,980 | |
Balance at beginning of period (in shares) at Dec. 31, 2017 | 41,641 | |||
Exercise of common stock options | 1,212 | 1,212 | ||
Exercise of common stock options (in shares) | 415 | |||
Stock-based compensation | 7,427 | 7,427 | ||
Restricted stock award grants, net of forfeitures and shares withheld for taxes | (361) | (361) | ||
Restricted stock award grants, net of forfeitures and shares withheld for taxes (in shares) | 13 | |||
Net income | 9,070 | 9,070 | ||
Balance at end of period at Mar. 31, 2018 | 262,931 | 217,881 | 45,050 | |
Balance at end of period (in shares) at Mar. 31, 2018 | 42,069 | |||
Balance at beginning of period at Dec. 31, 2017 | 245,583 | 209,603 | 35,980 | |
Balance at beginning of period (in shares) at Dec. 31, 2017 | 41,641 | |||
Net income | 48,705 | |||
Balance at end of period at Sep. 30, 2018 | 337,014 | 252,329 | 84,685 | |
Balance at end of period (in shares) at Sep. 30, 2018 | 43,185 | |||
Balance at beginning of period at Mar. 31, 2018 | 262,931 | 217,881 | 45,050 | |
Balance at beginning of period (in shares) at Mar. 31, 2018 | 42,069 | |||
Exercise of common stock options | 1,997 | 1,997 | ||
Exercise of common stock options (in shares) | 365 | |||
Stock-based compensation | 9,872 | 9,872 | ||
Issuance of common stock under employee stock purchase plan | 7,014 | 7,014 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 392 | |||
Restricted stock award grants, net of forfeitures and shares withheld for taxes | (183) | (183) | ||
Restricted stock award grants, net of forfeitures and shares withheld for taxes (in shares) | 28 | |||
Net income | 19,343 | 19,343 | ||
Balance at end of period at Jun. 30, 2018 | 300,974 | 236,581 | 64,393 | |
Balance at end of period (in shares) at Jun. 30, 2018 | 42,854 | |||
Exercise of common stock options | 3,956 | 3,956 | ||
Exercise of common stock options (in shares) | 330 | |||
Stock-based compensation | 11,851 | 11,851 | ||
Restricted stock award grants, net of forfeitures and shares withheld for taxes | (59) | (59) | ||
Restricted stock award grants, net of forfeitures and shares withheld for taxes (in shares) | 1 | |||
Net income | 20,292 | 20,292 | ||
Balance at end of period at Sep. 30, 2018 | 337,014 | 252,329 | 84,685 | |
Balance at end of period (in shares) at Sep. 30, 2018 | 43,185 | |||
Balance at beginning of period at Dec. 31, 2018 | 394,567 | 270,447 | 124,120 | |
Balance at beginning of period (in shares) at Dec. 31, 2018 | 43,864 | |||
Exercise of common stock options | 9,502 | 9,502 | ||
Exercise of common stock options (in shares) | 592 | |||
Stock-based compensation | 16,324 | 16,324 | ||
Restricted stock award grants, net of forfeitures and shares withheld for taxes | (1,146) | (1,146) | ||
Restricted stock award grants, net of forfeitures and shares withheld for taxes (in shares) | 23 | |||
Net income | 10,151 | 10,151 | ||
Balance at end of period at Mar. 31, 2019 | 429,398 | 295,127 | 134,271 | |
Balance at end of period (in shares) at Mar. 31, 2019 | 44,479 | |||
Balance at beginning of period at Dec. 31, 2018 | 394,567 | $ 270,447 | $ 124,120 | |
Balance at beginning of period (in shares) at Dec. 31, 2018 | 43,864 | |||
Net income | 57,373 | |||
Balance at end of period at Sep. 30, 2019 | $ 535,392 | |||
Balance at end of period (in shares) at Sep. 30, 2019 | 535,392 | 45,121 | 353,899 | 181,493 |
Balance at beginning of period at Mar. 31, 2019 | $ 429,398 | $ 295,127 | $ 134,271 | |
Balance at beginning of period (in shares) at Mar. 31, 2019 | 44,479 | |||
Exercise of common stock options | 7,473 | 7,473 | ||
Exercise of common stock options (in shares) | 284 | |||
Stock-based compensation | 21,390 | 21,390 | ||
Issuance of common stock under employee stock purchase plan | 8,648 | 8,648 | ||
Issuance of common stock under employee stock purchase plan (in shares) | 153 | |||
Restricted stock award grants, net of forfeitures and shares withheld for taxes | (2,488) | (2,488) | ||
Restricted stock award grants, net of forfeitures and shares withheld for taxes (in shares) | 7 | |||
Net income | 27,800 | 27,800 | ||
Balance at end of period at Jun. 30, 2019 | 492,221 | 330,150 | 162,071 | |
Balance at end of period (in shares) at Jun. 30, 2019 | 44,923 | |||
Exercise of common stock options | 4,936 | 4,936 | ||
Exercise of common stock options (in shares) | 196 | |||
Stock-based compensation | 19,923 | 19,923 | ||
Restricted stock award grants, net of forfeitures and shares withheld for taxes | (1,110) | $ (1,110) | ||
Restricted stock award grants, net of forfeitures and shares withheld for taxes (in shares) | 2 | |||
Net income | 19,422 | $ 19,422 | ||
Balance at end of period at Sep. 30, 2019 | $ 535,392 | |||
Balance at end of period (in shares) at Sep. 30, 2019 | 535,392 | 45,121 | 353,899 | 181,493 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
OPERATING ACTIVITIES: | ||
Net income | $ 57,373 | $ 48,705 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,246 | 8,107 |
Stock-based compensation | 56,368 | 27,958 |
Bad debt expense | 1,647 | 1,727 |
Noncash lease expense | 15,394 | |
Other | (2,945) | 2,396 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,739) | (44,736) |
Prepaid expenses and other assets | (19,024) | (10,597) |
Accounts payable | (21,401) | (2,804) |
Accrued expenses and other liabilities | (3,178) | 7,789 |
Operating lease liabilities | (8,468) | |
Net cash provided by operating activities | 88,273 | 38,545 |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (21,659) | (10,383) |
Capitalized software development costs | (3,849) | (4,340) |
Purchases of investments | (178,179) | |
Maturities of investments | 55,819 | |
Net cash used in investing activities | (147,868) | (14,723) |
FINANCING ACTIVITIES: | ||
Repayment on line of credit | (27,000) | |
Payment of debt financing costs | (6) | |
Proceeds from exercise of stock options | 21,911 | 7,165 |
Proceeds from employee stock purchase plan | 8,648 | 7,014 |
Taxes paid related to net settlement of restricted stock awards | (4,744) | (602) |
Net cash provided by (used in) financing activities | 25,809 | (13,423) |
(Decrease) increase in cash and cash equivalents | (33,786) | 10,399 |
Cash and cash equivalents—Beginning of period | 207,232 | 155,950 |
Cash and cash equivalents—End of period | 173,446 | 166,349 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Capitalized assets financed by accounts payable | 1,968 | 6,624 |
Tenant improvements paid by lessor | 1,017 | |
Asset retirement obligation | 3,543 | 386 |
Stock-based compensation included in capitalized software development costs | 1,269 | $ 1,192 |
Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows | 12,268 | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 147,682 |
Nature of Operations
Nature of Operations | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations | Note 1—Nature of Operations The Trade Desk, Inc. (the “Company”) was formed in November 2009 as a Delaware corporation. The Company is headquartered in Ventura, California and has offices in various cities in North America, Europe, Asia and Australia. The Company is a technology company that empowers buyers of advertising by providing a self-service cloud-based platform on which ad buyers can create, manage, and optimize more expressive data-driven digital advertising campaigns across ad formats, including display, video, audio, native and, social, on a multitude of devices, such as computers, mobile devices, and connected TV (CTV). |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2—Basis of Presentation and Summary of Significant Accounting Policies The accompanying condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and are unaudited. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. The condensed consolidated balance sheet as of December 31, 2018 was derived from audited financial statements but does not include all disclosures required by GAAP. On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) , Leases using the modified retrospective adoption approach. The Company elected the transition option provided by Leases (Topic 842): Targeted Improvements . The impact on the Company’s consolidated statements of income and cash flows was not material. Except for the adoption of ASC 842, there have been no changes to the Company’s accounting policies and these unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with that used to prepare the Company’s audited annual consolidated financial statements for the year ended December 31, 2018, and include, in the opinion of management, all adjustments, consisting of normal recurring items, necessary for the fair statement of the condensed consolidated financial statements. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the results expected for the full year ending December 31, 2019. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from these estimates. Operating Leases ROU Assets represent the Company’s right to control the use of an identified asset for a period of time, or term, in exchange for consideration, and Lease Liabilities represent its obligation to make lease payments arising from the aforementioned right. The Company determines if an arrangement is, or contains, a lease at the inception date, and the Company measures and records a non-current ROU Asset and corresponding Lease Liabilities, classified as current and non-current, on its consolidated balance sheet at the lease commencement date for all leases except for short-term leases with a term of 12 months or less. ROU Assets and Lease Liabilities are initially recorded based on the present value of lease payments over the lease term, which may include options to extend or terminate the lease when it is reasonably certain at the commencement date that such options will be exercised. As the rate implicit for each of the Company’s leases is not readily determinable, the Company uses its incremental borrowing rate, based on the information available at the lease commencement date in determining the present value of its expected lease payments. The ROU Asset also includes any initial direct costs and any lease payments made prior to the lease commencement date and is reduced by any lease incentives received. The ROU Asset is amortized on a straight-line basis as the operating lease cost over the lease term on the consolidated statements of income. ROU Asset amortization, referred to as noncash lease expense, along with the change in the operating lease liabilities are separately presented within the cash flows from operating activities on the consolidated statements of cash flows. ASC 842 provides various optional transition practical expedients. Upon transition to ASC 842, the Company elected the use of the package of practical expedients to not reassess: whether a contract is or contains a lease, lease classification and indirect costs. The Company did not elect the hindsight practical expedient in transition. The Company has elected to not separate lease and non-lease components. Refer to Note 5—Leases for additional information. Revision of Cash and Cash Equivalents and Accounts Payable The Company identified an error in its classification of cash and cash equivalents and accounts payable balances at June 30, 2019 of $23.0 million related to certain bank overdrafts. This error had the effect of understating reported cash and cash equivalents and accounts payable by that amount, and accordingly, current assets, total assets, current liabilities, and total liabilities were also understated by an equivalent amount. It also resulted in an understatement of net cash provided by operating activities in the same amount. If corrected, the amounts reported in the 2019 second quarter Form 10-Q would have been as follows: cash and cash equivalents of $153.6 million, accounts payable of $639.2 million, current assets of $1,107.0 million, total assets of $1,262.4 million, current liabilities of $693.5 million, total liabilities of $770.2 million and net cash provided by operating activities of $43.8 million. The Company determined that this error was not material to the previously issued financial statements, and it will revise these amounts in its Quarterly Report on Form 10-Q for the reporting period ended June 30, 2020. Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments - Credit Losses, in April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . These ASUs provide supplemental guidance and clarification to ASU 2016-13 and must be adopted concurrently with the adoption of ASU 2016-13, cumulatively referred to as “Topic 326.” Topic 326 is In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement-Disclosure Framework (Topic 820). |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 3—Earnings Per Share The Company has two classes of common stock, Class A and Class B. Basic and diluted earnings per share (“EPS”) attributable to common stockholders for Class A and Class B common stock were the same because they were entitled to the same liquidation and dividend rights. The computation of basic and diluted EPS is as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Numerator: Net income $ 19,422 $ 20,292 $ 57,373 $ 48,705 Denominator: Weighted-average shares outstanding—basic 44,771 42,721 44,363 42,178 Effect of dilutive securities: Options to purchase common stock 2,762 3,239 2,871 2,780 Employee stock purchase plan shares 141 270 135 273 Restricted stock 363 346 359 229 Weighted-average shares outstanding—diluted 48,037 46,576 47,728 45,460 Basic EPS $ 0.43 $ 0.47 $ 1.29 $ 1.15 Diluted EPS $ 0.40 $ 0.44 $ 1.20 $ 1.07 Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted EPS 163 167 163 167 |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-Term Investments | 9 Months Ended |
Sep. 30, 2019 | |
Cash Cash Equivalents And Short Term Investments [Abstract] | |
Cash, Cash Equivalents and Short-Term Investments | Note 4—Cash, Cash Equivalents and Short-Term Investments Cash, cash equivalents and short-term investments in marketable securities were as follows (in thousands): As of September 30, 2019 Cash and Cash Short-Term Equivalents Investments Total Cash $ 39,704 — $ 39,704 Level 1: Money market funds 118,510 — 118,510 Level 2: Commercial paper 14,232 25,844 40,076 Corporate debt securities 1,000 69,152 70,152 U.S. government and agency securities — 28,086 28,086 Total $ 173,446 $ 123,082 $ 296,528 As of December 31, 2018 Cash and Cash Equivalents Cash $ 35,087 Level 1: Money market funds 14,145 Time deposits 158,000 Total $ 207,232 The Company’s gross unrealized gains or losses from its short-term investments, recorded at fair value, for the periods presented within this quarterly report were immaterial. The contractual maturities of the Company’s short-term investments are as follows (in thousands): September 30, 2019 Due in one year $ 107,221 Due in one to two years 15,861 Total $ 123,082 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 5—Leases The Company has operating leases for its offices. Its leases have remaining lease terms of up to 11 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year with proper notification. ROU Assets and Lease Liabilities are recorded based on the present value of lease payments over the lease term, which includes the minimum unconditional term of the lease, and may include options to extend or terminate the lease when it is reasonably certain at the commencement date that such options will be exercised. The decision to include these options involves consideration of the Company’s overall growth plans, as well as other strategic requirements. As the rate implicit for each of its leases is not readily determinable, the Company uses its incremental borrowing rate, based on the information available at the lease commencement date, for each of its leases in determining the present value of its expected lease payments. The Company’s incremental borrowing rate is determined by analyzing and combining an applicable risk-free rate, a financial spread adjustment and any lease specific adjustment. Certain leases contain provisions for property-related costs that are variable in nature for which the Company is responsible, including common area maintenance and other property operating services. These costs are calculated based on a variety of factors including property values, tax and utility rates, property services fees, and other factors. The Company records rent expense for operating leases, some of which have escalating rent payments, on a straight-line basis over the lease term. The components of lease expense for the three and nine months ended September 30, 2019 were as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease cost $ 8,547 $ 19,089 Short-term lease cost 491 1,373 Variable lease cost 654 1,836 Sublease income (271 ) (827 ) Total lease cost $ 9,421 $ 21,471 Supplemental information related to leases as of September 30, 2019 was as follows: Weighted average remaining lease term 8.8 years Weighted average discount rate 4.5% Maturities of lease commitments as of September 30, 2019 were as follows (in thousands): Year Amount Remainder of 2019 $ 4,556 2020 10,601 2021 38,462 2022 34,916 2023 32,241 Thereafter 181,843 Total undiscounted lease commitments 302,619 Less: commitments for leases not yet commenced (71,977 ) Less: interest (47,036 ) Present value of lease liabilities 183,606 Less: operating lease liabilities, current (15,938 ) Operating lease liabilities, non-current $ 167,668 As of December 31, 2018, the Company’s non-cancelable minimum lease commitments were as follows (in thousands): Year Amount (1) 2019 $ 13,419 2020 18,746 2021 29,054 2022 23,786 2023 20,902 Thereafter 119,109 Total $ 225,016 (1) Includes non-cancelable minimum lease payments of $183.5 million for leases executed in 2018 that the Company plans to occupy in 2019. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 6—Stock-Based Compensation Stock-Based Compensation Expense Stock-based compensation expense recorded in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Platform operations $ 1,507 $ 1,234 $ 3,894 $ 3,137 Sales and marketing 5,036 3,033 13,094 7,757 Technology and development 7,146 4,013 18,579 8,905 General and administrative 5,753 3,137 20,801 8,159 Total $ 19,442 $ 11,417 $ 56,368 $ 27,958 Stock Options The following summarizes stock option activity: Shares Under Option (in thousands) Weighted- Average Exercise Price Outstanding as of December 31, 2018 4,630 $ 37.03 Granted 681 164.08 Exercised (1,072 ) 20.38 Cancelled (131 ) 66.79 Outstanding as of September 30, 2019 4,108 $ 61.47 Exercisable as of September 30, 2019 1,797 $ 31.01 On January 1, 2019, the number of shares authorized for grant under the Company’s 2016 Incentive Award Plan was increased by 1.8 million shares in accordance with plan provisions. Restricted Stock The following summarizes Restricted Stock activity: Shares (in thousands) Weighted- Average Grant Date Fair Value Unvested as of December 31, 2018 518 $ 65.14 Granted 107 161.61 Vested (81 ) 65.12 Forfeited (40 ) 54.94 Unvested as of September 30, 2019 504 $ 86.44 Employee Stock Purchase Plan (“ESPP”) Stock-based compensation expense related to the ESPP totaled $7.3 million and $4.4 million for the three months ended September 30, 2019 and 2018, respectively. Stock-based compensation expense related to the ESPP totaled $17.7 million and $11.0 million for the nine months ended September 30, 2019 and 2018, respectively. On January 1, 2019, the number of shares available for issuance under the Company’s Employee Stock Purchase Plan was increased by 0.4 million shares in accordance with plan provisions. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7—Income Taxes In determining the interim provision for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date income and adds the tax effects of any discrete items in the reporting period in which they occur. For each of the three months ended September 30, 2019 and 2018, there were benefits associated with stock-based awards of $7.7 million. For the nine months ended September 30, 2019 and 2018, the provision for income taxes included $28.0 million and $14.2 million, respectively, of benefits associated with stock-based awards. For the nine months ended September 30, 2019, and 2018, the Company’s effective tax rate differed from the United States federal statutory tax rate of 21% primarily due to state and foreign taxes, nondeductible stock-based compensation and the impact of tax benefits associated with stock-based awards. There were no material changes to the Company’s unrecognized tax benefits during the nine months ended September 30, 2019, and the Company does not expect to have any significant changes to unrecognized tax benefits through the end of the fiscal year. |
Geographic Information
Geographic Information | 9 Months Ended |
Sep. 30, 2019 | |
Segments Geographical Areas [Abstract] | |
Geographic Information | Note 8—Geographic Information The Company reports revenue net of amounts it pays suppliers for the cost of advertising inventory, third-party data and other add-on features (collectively, “Supplier Features”). The Company generally bills clients for the gross amount of Supplier Features they purchase through its platform and the platform fees, net of allowances (“Gross Billings”). The Company’s accounts receivable are recorded at the amount of Gross Billings for the amounts it is responsible to collect, and accounts payable are recorded at the net amount payable to suppliers. Accordingly, both accounts receivable and accounts payable appear large in relation to revenue reported on a net basis. Gross Billings, based on the billing address of the clients or client affiliates, were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 US $ 641,555 $ 479,489 $ 1,754,261 $ 1,282,178 International 109,463 89,255 303,018 242,519 Total $ 751,018 $ 568,744 $ 2,057,279 $ 1,524,697 Property and equipment, net and operating lease assets presented by principal geographic area, were as follows (in thousands): September 30, 2019 December 31, 2018 (1) US $ 141,721 $ 25,887 International 83,289 7,159 Total $ 225,010 $ 33,046 (1) As a result of the Company’s adoption of ASC 842 on January 1, 2019, the December 31, 2018 balance excludes operating lease assets. Refer to Note 2 — |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9— Commitments and Contingencies As of September Refer to Note 5 — Leases for additional information regarding lease commitments. As of September 30, 2019, the Company has non-cancelable contractual commitments of obligations to its hosting services providers, marketing contracts and providers of software as a service, and these commitments were as follows (in thousands): Year Amount Remainder of 2019 $ 30,162 2020 32,111 2021 30,629 2022 30,248 2023 30,000 Thereafter 50,000 $ 203,150 Guarantees and Indemnification In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to clients, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. In the ordinary course of business, demands have been made upon the Company to provide indemnification under such agreements, but the Company is not aware of any claims that could have a material effect on the Company’s balance sheet, statement of operations or statement of cash flows. Accordingly, no amounts for any obligation have been recorded at September 30, 2019 . Litigation From time to time, the Company is subject to various legal proceedings and claims, either asserted or unasserted, that arise in the ordinary course of business. Although the outcome of the various legal proceedings and claims cannot be predicted with certainty, management does not believe that any of these proceedings or other claims will have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. Employment Contracts The Company has entered into agreements with severance terms with certain employees and officers, all of whom are employed at-will. The Company may be required to accelerate the vesting of certain equity awards in the event of changes in control, as defined, and involuntary terminations. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from these estimates. |
Operating Leases | Operating Leases ROU Assets represent the Company’s right to control the use of an identified asset for a period of time, or term, in exchange for consideration, and Lease Liabilities represent its obligation to make lease payments arising from the aforementioned right. The Company determines if an arrangement is, or contains, a lease at the inception date, and the Company measures and records a non-current ROU Asset and corresponding Lease Liabilities, classified as current and non-current, on its consolidated balance sheet at the lease commencement date for all leases except for short-term leases with a term of 12 months or less. ROU Assets and Lease Liabilities are initially recorded based on the present value of lease payments over the lease term, which may include options to extend or terminate the lease when it is reasonably certain at the commencement date that such options will be exercised. As the rate implicit for each of the Company’s leases is not readily determinable, the Company uses its incremental borrowing rate, based on the information available at the lease commencement date in determining the present value of its expected lease payments. The ROU Asset also includes any initial direct costs and any lease payments made prior to the lease commencement date and is reduced by any lease incentives received. The ROU Asset is amortized on a straight-line basis as the operating lease cost over the lease term on the consolidated statements of income. ROU Asset amortization, referred to as noncash lease expense, along with the change in the operating lease liabilities are separately presented within the cash flows from operating activities on the consolidated statements of cash flows. ASC 842 provides various optional transition practical expedients. Upon transition to ASC 842, the Company elected the use of the package of practical expedients to not reassess: whether a contract is or contains a lease, lease classification and indirect costs. The Company did not elect the hindsight practical expedient in transition. The Company has elected to not separate lease and non-lease components. Refer to Note 5—Leases for additional information. |
Revision of Cash and Cash Equivalents and Accounts Payable | Revision of Cash and Cash Equivalents and Accounts Payable The Company identified an error in its classification of cash and cash equivalents and accounts payable balances at June 30, 2019 of $23.0 million related to certain bank overdrafts. This error had the effect of understating reported cash and cash equivalents and accounts payable by that amount, and accordingly, current assets, total assets, current liabilities, and total liabilities were also understated by an equivalent amount. It also resulted in an understatement of net cash provided by operating activities in the same amount. If corrected, the amounts reported in the 2019 second quarter Form 10-Q would have been as follows: cash and cash equivalents of $153.6 million, accounts payable of $639.2 million, current assets of $1,107.0 million, total assets of $1,262.4 million, current liabilities of $693.5 million, total liabilities of $770.2 million and net cash provided by operating activities of $43.8 million. The Company determined that this error was not material to the previously issued financial statements, and it will revise these amounts in its Quarterly Report on Form 10-Q for the reporting period ended June 30, 2020. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Codification Improvements to Topic 326, Financial Instruments - Credit Losses, in April 2019, the FASB issued ASU No. 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments . These ASUs provide supplemental guidance and clarification to ASU 2016-13 and must be adopted concurrently with the adoption of ASU 2016-13, cumulatively referred to as “Topic 326.” Topic 326 is In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement-Disclosure Framework (Topic 820). |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted EPS is as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Numerator: Net income $ 19,422 $ 20,292 $ 57,373 $ 48,705 Denominator: Weighted-average shares outstanding—basic 44,771 42,721 44,363 42,178 Effect of dilutive securities: Options to purchase common stock 2,762 3,239 2,871 2,780 Employee stock purchase plan shares 141 270 135 273 Restricted stock 363 346 359 229 Weighted-average shares outstanding—diluted 48,037 46,576 47,728 45,460 Basic EPS $ 0.43 $ 0.47 $ 1.29 $ 1.15 Diluted EPS $ 0.40 $ 0.44 $ 1.20 $ 1.07 Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted EPS 163 167 163 167 |
Cash, Cash Equivalents and Sh_2
Cash, Cash Equivalents and Short-Term Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Cash Cash Equivalents And Short Term Investments [Abstract] | |
Schedule of Cash, Cash Equivalents and Short-term Investments in Marketable Securities | Cash, cash equivalents and short-term investments in marketable securities were as follows (in thousands): As of September 30, 2019 Cash and Cash Short-Term Equivalents Investments Total Cash $ 39,704 — $ 39,704 Level 1: Money market funds 118,510 — 118,510 Level 2: Commercial paper 14,232 25,844 40,076 Corporate debt securities 1,000 69,152 70,152 U.S. government and agency securities — 28,086 28,086 Total $ 173,446 $ 123,082 $ 296,528 As of December 31, 2018 Cash and Cash Equivalents Cash $ 35,087 Level 1: Money market funds 14,145 Time deposits 158,000 Total $ 207,232 |
Schedule of Contractual Maturities of Short-Term Investments | The contractual maturities of the Company’s short-term investments are as follows (in thousands): September 30, 2019 Due in one year $ 107,221 Due in one to two years 15,861 Total $ 123,082 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Summary of Components of Lease Expense | The components of lease expense for the three and nine months ended September 30, 2019 were as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease cost $ 8,547 $ 19,089 Short-term lease cost 491 1,373 Variable lease cost 654 1,836 Sublease income (271 ) (827 ) Total lease cost $ 9,421 $ 21,471 |
Summary of Supplemental Information Related to Leases | Supplemental information related to leases as of September 30, 2019 was as follows: Weighted average remaining lease term 8.8 years Weighted average discount rate 4.5% |
Summary of Maturities of Lease and Non-cancellable Minimum Lease Commitments | Maturities of lease commitments as of September 30, 2019 were as follows (in thousands): Year Amount Remainder of 2019 $ 4,556 2020 10,601 2021 38,462 2022 34,916 2023 32,241 Thereafter 181,843 Total undiscounted lease commitments 302,619 Less: commitments for leases not yet commenced (71,977 ) Less: interest (47,036 ) Present value of lease liabilities 183,606 Less: operating lease liabilities, current (15,938 ) Operating lease liabilities, non-current $ 167,668 As of December 31, 2018, the Company’s non-cancelable minimum lease commitments were as follows (in thousands): Year Amount (1) 2019 $ 13,419 2020 18,746 2021 29,054 2022 23,786 2023 20,902 Thereafter 119,109 Total $ 225,016 (1) Includes non-cancelable minimum lease payments of $183.5 million for leases executed in 2018 that the Company plans to occupy in 2019. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense by Operating Expense Category | Stock-based compensation expense recorded in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Platform operations $ 1,507 $ 1,234 $ 3,894 $ 3,137 Sales and marketing 5,036 3,033 13,094 7,757 Technology and development 7,146 4,013 18,579 8,905 General and administrative 5,753 3,137 20,801 8,159 Total $ 19,442 $ 11,417 $ 56,368 $ 27,958 |
Summary of Stock Option Activity | The following summarizes stock option activity: Shares Under Option (in thousands) Weighted- Average Exercise Price Outstanding as of December 31, 2018 4,630 $ 37.03 Granted 681 164.08 Exercised (1,072 ) 20.38 Cancelled (131 ) 66.79 Outstanding as of September 30, 2019 4,108 $ 61.47 Exercisable as of September 30, 2019 1,797 $ 31.01 |
Summary of Nonvested Restricted Stock Activity | The following summarizes Restricted Stock activity: Shares (in thousands) Weighted- Average Grant Date Fair Value Unvested as of December 31, 2018 518 $ 65.14 Granted 107 161.61 Vested (81 ) 65.12 Forfeited (40 ) 54.94 Unvested as of September 30, 2019 504 $ 86.44 |
Geographic Information (Tables)
Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segments Geographical Areas [Abstract] | |
Gross Billings, Based on Billing Address of Clients or Client Affiliates | Gross Billings, based on the billing address of the clients or client affiliates, were as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 US $ 641,555 $ 479,489 $ 1,754,261 $ 1,282,178 International 109,463 89,255 303,018 242,519 Total $ 751,018 $ 568,744 $ 2,057,279 $ 1,524,697 |
Property and Equipment, Net and Operating Lease Assets, Presented by Principal Geographic Area | Property and equipment, net and operating lease assets presented by principal geographic area, were as follows (in thousands): September 30, 2019 December 31, 2018 (1) US $ 141,721 $ 25,887 International 83,289 7,159 Total $ 225,010 $ 33,046 (1) As a result of the Company’s adoption of ASC 842 on January 1, 2019, the December 31, 2018 balance excludes operating lease assets. Refer to Note 2 — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Non-Cancelable Contractual Commitments of Obligations | As of September Refer to Note 5 — Leases for additional information regarding lease commitments. As of September 30, 2019, the Company has non-cancelable contractual commitments of obligations to its hosting services providers, marketing contracts and providers of software as a service, and these commitments were as follows (in thousands): Year Amount Remainder of 2019 $ 30,162 2020 32,111 2021 30,629 2022 30,248 2023 30,000 Thereafter 50,000 $ 203,150 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | ||||
Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Operating lease, right-of-use assets | $ 177,276 | |||||
Operating lease, liabilities | 183,606 | |||||
Cash and cash equivalents | 173,446 | $ 166,349 | $ 207,232 | $ 155,950 | ||
Accounts payable | 647,547 | 669,147 | ||||
Current assets | 1,159,127 | 1,056,523 | ||||
Total assets | 1,415,039 | 1,117,872 | ||||
Current liabilities | 704,038 | 713,991 | ||||
Total liabilities | 879,647 | $ 723,305 | ||||
Net cash provided by operating activities | $ 88,273 | $ 38,545 | ||||
Restatement Adjustment | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Cash and cash equivalents | $ 153,600 | |||||
Accounts payable | 639,200 | |||||
Current assets | 1,107,000 | |||||
Total assets | 1,262,400 | |||||
Current liabilities | 693,500 | |||||
Total liabilities | 770,200 | |||||
Net cash provided by operating activities | 43,800 | |||||
Cash and Cash Equivalents and Accounts Payable | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Prior period reclassification adjustment | $ 23,000 | |||||
ASU 2016-02 | ||||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||||
Operating lease, right-of-use assets | $ 41,000 | |||||
Operating lease, liabilities | $ 47,000 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Operating Leases (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
Maximum | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Short-term leases term excluded from calculation of ROU and lease liabilities | 12 months |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019USD ($)Class$ / sharesshares | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2019USD ($)Class$ / sharesshares | Sep. 30, 2018USD ($)$ / sharesshares | |
Earnings Per Share | ||||||||
Number of classes of common stock | Class | 2 | 2 | ||||||
Numerator: | ||||||||
Net income | $ | $ 19,422 | $ 27,800 | $ 10,151 | $ 20,292 | $ 19,343 | $ 9,070 | $ 57,373 | $ 48,705 |
Denominator: | ||||||||
Weighted-average shares outstanding—basic | 44,771 | 42,721 | 44,363 | 42,178 | ||||
Effect of dilutive securities: | ||||||||
Options to purchase common stock | 2,762 | 3,239 | 2,871 | 2,780 | ||||
Employee stock purchase plan shares | 141 | 270 | 135 | 273 | ||||
Restricted stock | 363 | 346 | 359 | 229 | ||||
Weighted-average shares outstanding—diluted | 48,037 | 46,576 | 47,728 | 45,460 | ||||
Basic EPS | $ / shares | $ 0.43 | $ 0.47 | $ 1.29 | $ 1.15 | ||||
Diluted EPS | $ / shares | $ 0.40 | $ 0.44 | $ 1.20 | $ 1.07 | ||||
Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted EPS | 163 | 167 | 163 | 167 |
Cash, Cash Equivalents and Sh_3
Cash, Cash Equivalents and Short -Term Investments - Schedule of Cash, Cash Equivalents and Short-term Investments in Marketable Securities (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule Of Available For Sale Securities [Line Items] | ||||
Cash and cash equivalents | $ 173,446 | $ 207,232 | $ 166,349 | $ 155,950 |
Short-Term Investments | 123,082 | |||
Available For Sale | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Cash and cash equivalents | 173,446 | 207,232 | ||
Short-Term Investments | 123,082 | |||
Total | 296,528 | |||
Available For Sale | Cash | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Cash and cash equivalents | 39,704 | 35,087 | ||
Total | 39,704 | |||
Available For Sale | Level 1 | Money Market Funds | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Cash and cash equivalents | 118,510 | 14,145 | ||
Total | 118,510 | |||
Available For Sale | Level 1 | Time Deposits | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Cash and cash equivalents | $ 158,000 | |||
Available For Sale | Level 2 | Commercial Paper | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Cash and cash equivalents | 14,232 | |||
Short-Term Investments | 25,844 | |||
Total | 40,076 | |||
Available For Sale | Level 2 | Corporate Debt Securities | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Cash and cash equivalents | 1,000 | |||
Short-Term Investments | 69,152 | |||
Total | 70,152 | |||
Available For Sale | Level 2 | U.S. Government and Agency Securities | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Short-Term Investments | 28,086 | |||
Total | $ 28,086 |
Cash, Cash Equivalents and Sh_4
Cash, Cash Equivalents and Short - Schedule of Contractual Maturities of Short-Term Investments (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Available For Sale Securities Debt Maturities Fair Value [Abstract] | |
Due in one year | $ 107,221 |
Due in one to two years | 15,861 |
Total | $ 123,082 |
Leases - Additional Information
Leases - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease term description | leases have remaining lease terms of up to 11 years, some of which include options to extend the leases for up to 5 years, and some of which include options to terminate the leases within 1 year with proper notification. |
Remaining lease term | 11 years |
Lessee, operating lease, existence of option to extend | true |
Options to extend the leases | up to 5 years |
Lessee, operating lease, existence of option to terminate | true |
Options to terminate the leases | within 1 year |
Leases - Summary of Components
Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lease Cost [Abstract] | ||
Operating lease cost | $ 8,547 | $ 19,089 |
Short-term lease cost | 491 | 1,373 |
Variable lease cost | 654 | 1,836 |
Sublease income | (271) | (827) |
Total lease cost | $ 9,421 | $ 21,471 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Information Related to Leases (Detail) | Sep. 30, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term | 8 years 9 months 18 days |
Weighted average discount rate | 4.50% |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease and Non-cancellable Minimum Lease Commitments (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | ||
Operating Lease Liabilities Payments Due [Abstract] | ||||
Remainder of 2019 | $ 4,556 | |||
2019 | [1] | $ 13,419 | ||
2020 | 10,601 | 18,746 | [1] | |
2021 | 38,462 | 29,054 | [1] | |
2022 | 34,916 | 23,786 | [1] | |
2023 | 32,241 | 20,902 | [1] | |
Thereafter | 181,843 | 119,109 | [1] | |
Total undiscounted lease commitments | 302,619 | $ 225,016 | [1] | |
Less: commitments for leases not yet commenced | (71,977) | |||
Less: interest | (47,036) | |||
Present value of lease liabilities | 183,606 | |||
Less: operating lease liabilities, current | (15,938) | |||
Operating lease liabilities, non-current | $ 167,668 | |||
[1] | Includes non-cancelable minimum lease payments of $183.5 million for leases executed in 2018 that the Company plans to occupy in 2019. |
Leases - Summary of Maturitie_2
Leases - Summary of Maturities of Lease and Non-cancellable Minimum Lease Commitments (Parenthetical) (Detail) $ in Millions | Dec. 31, 2018USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
Non-cancelable minimum lease payments for leases | $ 183.5 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense by Operating Expense Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Stock-based compensation expense, by operating expense category | ||||
Stock-based compensation expense | $ 19,442 | $ 11,417 | $ 56,368 | $ 27,958 |
Platform operations | ||||
Stock-based compensation expense, by operating expense category | ||||
Stock-based compensation expense | 1,507 | 1,234 | 3,894 | 3,137 |
Sales and marketing | ||||
Stock-based compensation expense, by operating expense category | ||||
Stock-based compensation expense | 5,036 | 3,033 | 13,094 | 7,757 |
Technology and development | ||||
Stock-based compensation expense, by operating expense category | ||||
Stock-based compensation expense | 7,146 | 4,013 | 18,579 | 8,905 |
General and administrative | ||||
Stock-based compensation expense, by operating expense category | ||||
Stock-based compensation expense | $ 5,753 | $ 3,137 | $ 20,801 | $ 8,159 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Detail) - Stock Options - $ / shares shares in Thousands | 9 Months Ended |
Sep. 30, 2019 | |
Shares Under Option | |
Outstanding at the beginning of the period (in shares) | 4,630 |
Granted (in shares) | 681 |
Exercised (in shares) | (1,072) |
Cancelled (in shares) | (131) |
Outstanding at the end of the period (in shares) | 4,108 |
Exercisable as of September 30, 2019 | 1,797 |
Weighted-Average Exercise Price | |
Outstanding at the beginning of the period (in dollars per share) | $ 37.03 |
Granted (in dollars per share) | 164.08 |
Exercised (in dollars per share) | 20.38 |
Cancelled (in dollars per share) | 66.79 |
Outstanding at the end of the period (in dollars per share) | 61.47 |
Exercisable as of September 30, 2019 | $ 31.01 |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock Options - Additional Information (Detail) shares in Millions | Jan. 01, 2019shares |
2016 Incentive Award Plan | |
Stock-Based Compensation | |
Number of additional shares authorized for grant | 1.8 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Nonvested Restricted Stock Activity (Detail) shares in Thousands | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Unvested, Shares, beginning balance | shares | 518 |
Granted, Shares | shares | 107 |
Vested, Shares | shares | (81) |
Forfeited, Shares | shares | (40) |
Unvested, Shares, ending balance | shares | 504 |
Unvested, Weighted-Average Grant Date Fair Value Per Share, beginning balance | $ / shares | $ 65.14 |
Granted, Weighted-Average Grant Date Fair Value Per Share | $ / shares | 161.61 |
Vested, Weighted-Average Grant Date Fair Value Per Share | $ / shares | 65.12 |
Forfeited, Weighted-Average Grant Date Fair Value Per Share | $ / shares | 54.94 |
Unvested, Weighted-Average Grant Date Fair Value Per Share, ending balance | $ / shares | $ 86.44 |
Stock-Based Compensation - ESPP
Stock-Based Compensation - ESPP - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions | Jan. 01, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Stock-Based Compensation | |||||
Stock-based compensation expense | $ 19,442 | $ 11,417 | $ 56,368 | $ 27,958 | |
ESPP | |||||
Stock-Based Compensation | |||||
Stock-based compensation expense | $ 7,300 | $ 4,400 | $ 17,700 | $ 11,000 | |
Number of additional shares authorized for grant | 0.4 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Benefits associated with stock-based awards | $ 7.7 | $ 7.7 | $ 28 | $ 14.2 |
Federal tax at statutory rate (as a percent) | 21.00% | 21.00% |
Geographical Information - Gros
Geographical Information - Gross Billings, Based on Billing Address of Clients or Client Affiliates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Gross Billings | $ 751,018 | $ 568,744 | $ 2,057,279 | $ 1,524,697 |
UNITED STATES | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Gross Billings | 641,555 | 479,489 | 1,754,261 | 1,282,178 |
International | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Gross Billings | $ 109,463 | $ 89,255 | $ 303,018 | $ 242,519 |
Geographical Information - Prop
Geographical Information - Property and Equipment, Net and Operating Lease Assets, Presented by Principal Geographic Area (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | [1] |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Property and equipment, net and operating lease assets | $ 225,010 | $ 33,046 | |
UNITED STATES | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Property and equipment, net and operating lease assets | 141,721 | 25,887 | |
International | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Property and equipment, net and operating lease assets | $ 83,289 | $ 7,159 | |
[1] | As a result of the Company’s adoption of ASC 842 on January 1, 2019, the December 31, 2018 balance excludes operating lease assets. Refer to Note 2 — |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Non-Cancelable Contractual Commitments of Obligations (Detail) $ in Thousands | Sep. 30, 2019USD ($) |
Contractual obligations | |
Remainder of 2019 | $ 30,162 |
2020 | 32,111 |
2021 | 30,629 |
2022 | 30,248 |
2023 | 30,000 |
Thereafter | 50,000 |
Total | $ 203,150 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) | Sep. 30, 2019USD ($) |
Indemnifications | |
Guarantees and Indemnifications | |
Recorded obligation | $ 0 |