The Trade Desk, Inc. (TTD) 10-Q 8 May 20 2020 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2020	Apr. 30, 2020
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Trading Symbol	TTD
Entity Registrant Name	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, par value $0.000001 per share
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		40,888,742
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		5,169,630

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 325,211	$ 130,876
Short-term investments, net of allowance for credit losses of $275 and $0 as of March 31, 2020 and December 31, 2019, respectively	120,625	124,112
Accounts receivable, net of allowance for credit losses of $5,776 and $3,920 as of March 31, 2020 and December 31, 2019, respectively	947,973	1,166,376
Prepaid expenses and other current assets	48,002	27,857
TOTAL CURRENT ASSETS	1,441,811	1,449,221
Property and equipment, net	78,877	64,012
Operating lease assets	200,242	173,449
Deferred income taxes	18,950	18,950
Other assets, non-current	27,324	23,129
TOTAL ASSETS	1,767,204	1,728,761
Current liabilities:
Accounts payable	663,410	868,618
Accrued expenses and other current liabilities	48,437	47,178
Operating lease liabilities	22,527	14,577
TOTAL CURRENT LIABILITIES	734,374	930,373
Operating lease liabilities, non-current	204,688	174,873
Debt, net	143,000
Other liabilities, non-current	11,108	10,998
TOTAL LIABILITIES	1,093,170	1,116,244
Commitments and contingencies (Note 10)
STOCKHOLDERS’ EQUITY
Preferred stock, par value $0.000001; 100,000 shares authorized, zero shares issued and outstanding as of March 31, 2020 and December 31, 2019
Common stock, par value $0.000001 Class A, 1,000,000 shares authorized; 40,865 and 40,305 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively Class B, 95,000 shares authorized; 5,170 and 5,171 shares issued and outstanding as of March 31, 2020 and December 31, 2019, respectively	0	0
Additional paid-in capital	417,769	380,079
Accumulated other comprehensive income	158
Retained earnings	256,107	232,438
TOTAL STOCKHOLDERS’ EQUITY	674,034	612,517
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,767,204	$ 1,728,761

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Short-term investments, allowance for credit losses	$ 275	$ 0
Accounts receivable, allowance for credit losses	$ 5,776	$ 3,920
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	40,865,000	40,305,000
Common stock, shares outstanding	40,865,000	40,305,000
Class B common stock
Common stock
Common stock, authorized shares	95,000,000	95,000,000
Common stock, shares issued	5,170,000	5,171,000
Common stock, shares outstanding	5,170,000	5,171,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Statement [Abstract]
Revenue	$ 160,660	$ 120,987
Type of Revenue [Extensible List]	us-gaap:ServiceMember	us-gaap:ServiceMember
Operating expenses:
Platform operations	$ 40,208	$ 33,651
Type of Cost, Good or Service [Extensible List]	us-gaap:ServiceMember	us-gaap:ServiceMember
Sales and marketing	$ 34,294	$ 22,737
Technology and development	36,794	25,312
General and administrative	38,598	33,617
Total operating expenses	149,894	115,317
Income from operations	10,766	5,670
Other expense (income):
Interest income, net	(1,092)	(997)
Foreign currency exchange loss, net	1,234	1,330
Credit loss expense on available-for-sale securities	275
Total other expense, net	417	333
Income before income taxes	10,349	5,337
Benefit from income taxes	(13,708)	(4,814)
Net income	$ 24,057	$ 10,151
Earnings per share:
Basic	$ 0.53	$ 0.23
Diluted	$ 0.50	$ 0.21
Weighted average shares outstanding:
Basic	45,501	43,906
Diluted	48,313	47,314

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net income	$ 24,057	$ 10,151
Other comprehensive income:
Change in unrealized gain on available-for-sale investments, net of tax of $68	158
Comprehensive income	$ 24,215	$ 10,151

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2020USD ($)
Statement Of Income And Comprehensive Income [Abstract]
Change in unrealized gain on available-for-sale investments, tax	$ 68

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Retained Earnings
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
Restricted stock, net of forfeitures and shares withheld for taxes	(1,146)		(1,146)
Restricted stock, net of forfeitures and shares withheld for taxes (in shares)		23
Stock-based compensation	16,324		16,324
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, 2019	612,517		380,079		232,438
Balance at beginning of period (in shares) at Dec. 31, 2019		45,476
Impact upon adoption of new accounting standard (Note 2)	(388)				(388)
Exercise of common stock options	19,320		19,320
Exercise of common stock options (in shares)		539
Restricted stock, net of forfeitures and shares withheld for taxes	(4,893)		(4,893)
Restricted stock, net of forfeitures and shares withheld for taxes (in shares)		20
Stock-based compensation	23,263		23,263
Other comprehensive income	158			$ 158
Net income	24,057				24,057
Balance at end of period at Mar. 31, 2020	$ 674,034		$ 417,769	$ 158	$ 256,107
Balance at end of period (in shares) at Mar. 31, 2020		46,035

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
OPERATING ACTIVITIES:
Net income	$ 24,057	$ 10,151
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	6,477	4,456
Stock-based compensation	22,965	15,869
Allowance for credit losses on accounts receivable	1,310	224
Investment credit loss	275
Noncash lease expense	7,402	4,421
Other	3,209	379
Changes in operating assets and liabilities:
Accounts receivable	210,552	127,232
Prepaid expenses and other assets	(15,791)	(6,580)
Accounts payable	(205,967)	(138,886)
Accrued expenses and other liabilities	892	(4,489)
Operating lease liabilities	(2,673)	(3,066)
Net cash provided by operating activities	52,708	9,711
INVESTING ACTIVITIES:
Purchases of investments	(35,705)	(73,950)
Maturities of investments	39,180
Purchases of property and equipment	(18,310)	(6,085)
Capitalized software development costs	(965)	(1,417)
Net cash used in investing activities	(15,800)	(81,452)
FINANCING ACTIVITIES:
Proceeds from line of credit	143,000
Payment of debt financing costs		(6)
Proceeds from exercise of stock options	19,320	9,502
Taxes paid related to net settlement of restricted stock awards	(4,893)	(1,146)
Net cash provided by financing activities	157,427	8,350
Increase (decrease) in cash and cash equivalents	194,335	(63,391)
Cash and cash equivalents—Beginning of period	130,876	207,232
Cash and cash equivalents—End of period	325,211	143,841
SUPPLEMENTAL CASH FLOW INFORMATION:
Capitalized assets financed by accounts payable	10,200	1,487
Asset retirement obligation	65	126
Stock-based compensation included in capitalized software development costs	298	455
Cash paid for amounts included in the measurement of lease liabilities included in operating cash flows	4,902	3,792
Right-of-use assets obtained in exchange for operating lease liabilities	$ 34,155	$ 35,015

Nature of Operations

Nature of Operations	3 Months Ended
	Mar. 31, 2020
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.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2020
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, 2019 was derived from audited financial statements but does not include all disclosures required by GAAP. Except for the adoption of Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results expected for the full year ending December 31, 2020. 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. For the three months ended March 31, 2020, the impact of the decline in business activity brought about by the Coronavirus pandemic (“COVID-19”) continues to evolve. As a result, many of our estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, our estimates may change materially in future periods. Adoption of New Accounting Standard In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASC 326 , which requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. As a result, the Company revised its impairment model to utilize an expected loss methodology in place of an incurred loss methodology related to its marketable securities and allowance for doubtful accounts. The Company adopted ASC 326 on January 1, 2020, using a modified retrospective transition method, which requires a cumulative-effect adjustment, if any, to the opening balance of retained earnings to be recognized on the date of adoption with prior periods not restated. The cumulative-effect adjustment recorded on January 1, 2020, is not material. Accounts Receivable and Allowance for Credit Losses (formerly Allowance for Doubtful Accounts) Accounts receivable are recorded at the invoiced amount, are unsecured and do not bear interest. The Company performs ongoing credit evaluations of its clients and certain advertisers when the Company’s agreements with its clients contain sequential liability terms that provide that the client payments are not due to the Company until the client has received payment from its clients who are advertisers. We maintain an allowance for credit losses for expected uncollectible accounts receivable, which is recorded as an offset to accounts receivable and changes in such are classified as general and administrative expense in the Consolidated Statements of Income. Based on the implementation of CECL during the first quarter of 2020, the Company considers macro-economic factors and industry specific default rates in the valuation of trade receivables and the related allowance for credit losses . The industry specific default rates are applied to the advertiser’s industry in the case where the receivables are subject to sequential liability or the Company is engaged with the advertiser directly. The services of an outside valuation firm were used to assist in the determination of the macro-economic factors and the industry default rates . For the three months ended March 31, 2020, our assessment considered business and market disruptions caused by COVID-19 and estimates of credit defaults by industry. Recent Accounting Pronouncements In December 2019, the FASB Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848)

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 2019 Numerator: Net income $ 24,057 $ 10,151 Denominator: Weighted-average shares outstanding—basic 45,501 43,906 Effect of dilutive securities: Options to purchase common stock 2,447 2,952 Employee stock purchase plan shares 116 122 Restricted stock 249 334 Weighted-average shares outstanding—diluted 48,313 47,314 Basic EPS $ 0.53 $ 0.23 Diluted EPS $ 0.50 $ 0.21 Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted EPS 388 818

Cash, Cash Equivalents and Shor

Cash, Cash Equivalents and Short-Term Investments	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 Cash and Cash Short-Term Equivalents Investments Total Cash $ 61,623 $ — $ 61,623 Level 1: Money market funds 248,459 — 248,459 Level 2: Commercial paper 9,535 29,021 38,556 Corporate debt securities — 68,829 68,829 U.S. government and agency securities 5,594 22,775 28,369 Total $ 325,211 $ 120,625 $ 445,836 As of December 31, 2019 Cash and Cash Short-Term Equivalents Investments Total Cash $ 32,123 $ — $ 32,123 Level 1: Money market funds 45,588 — 45,588 Time deposits 35,000 — 35,000 Level 2: Commercial paper 15,666 24,975 40,641 Corporate debt securities — 78,998 78,998 U.S. government and agency securities 2,499 20,139 22,638 Total $ 130,876 $ 124,112 $ 254,988 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): March 31, 2020 Due in one year $ 111,528 Due in one to two years 9,097 Total $ 120,625

Leases

Leases	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Leases	Note 5—Leases The components of lease expense recorded in the condensed consolidated statements of operations were as follows (in thousands): Three Months Ended March 31, 2020 2019 Operating lease cost $ 9,538 $ 5,171 Short-term lease cost 239 407 Variable lease cost 811 329 Sublease income (990 ) (302 ) Total lease cost $ 9,598 $ 5,605 Maturities of lease commitments as of March 31, 2020 were as follows (in thousands): Year Amount 2020 (for remaining nine months) $ 18,430 2021 49,466 2022 46,390 2023 42,304 2024 33,305 Thereafter 161,160 Total undiscounted lease commitments 351,055 Less: commitments for leases not yet commenced (78,521 ) Less: interest (45,319 ) Present value of lease liabilities 227,215 Less: operating lease liabilities, current (22,527 ) Operating lease liabilities, non-current $ 204,688

Debt

Debt	3 Months Ended
	Mar. 31, 2020
Debt Disclosure [Abstract]
Debt	Note 6—Debt Credit Facility As of March 31, 2020, the Company’s outstanding debt balance under the Credit Facility was $143.0 million, which bore interest at a weighted average annual rate of 2.20%. The Company was in compliance with all covenants as of March 31, 2020. In March 2020, the Company drew down $143.0 million under the Credit Facility as a precautionary measure to provide increased liquidity and preserve financial flexibility in light of the worldwide decline in business activity brought about by the COVID-19.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Stock-Based Compensation	Note 7—Stock-Based Compensation Stock-Based Compensation Expense Stock-based compensation expense recorded in the condensed consolidated statements of income was as follows (in thousands): Three Months Ended March 31, 2020 2019 Platform operations $ 1,462 $ 1,056 Sales and marketing 5,314 3,227 Technology and development 8,590 4,936 General and administrative 7,599 6,650 Total $ 22,965 $ 15,869 Stock Options The following summarizes stock option activity: Shares Under Option (in thousands) Weighted- Average Exercise Price Outstanding as of December 31, 2019 4,064 $ 70.74 Granted 46 269.45 Exercised (539 ) 35.91 Cancelled (34 ) 139.02 Outstanding as of March 31, 2020 3,537 $ 77.97 Exercisable as of March 31, 2020 1,624 $ 40.82 On January 1, 2020, 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, 2019 457 $ 120.65 Granted 19 265.32 Vested (45 ) 115.68 Forfeited (9 ) 202.87 Unvested as of March 31, 2020 422 $ 125.81 Employee Stock Purchase Plan (“ESPP”) Stock-based compensation expense related to the ESPP totaled $7.8 million and $4.0 million for the three months ended March 31, 2020 and 2019, respectively. On January 1, 2020, the number of shares available for issuance under the Company’s ESPP was increased by 0.5 million shares in accordance with plan provisions.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Note 8—Income Taxes In determining the interim provision for income taxes, the Company has utilized the discrete effective tax rate method, as allowed by Accounting Standards Codification (“ASC”) 740-270-30-18, “Income Taxes – Interim Reporting” For the three months ended March 31, 2020 and 2019, the provision for income taxes included $24.3 million and $11.0 million, respectively, of benefits associated with stock-based awards. For the three months ended March 31, 2020, and 2019, the Company’s effective tax rate differed from the United States federal statutory tax rate of 21% primarily due to tax benefits associated with employee exercises of stock options and vesting of restricted stock units, foreign tax rate differences, state taxes, and research and development tax credits. There were no material changes to the Company’s unrecognized tax benefits during the three months ended March 31, 2020, 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	3 Months Ended
	Mar. 31, 2020
Segments Geographical Areas [Abstract]
Geographic Information	Note 9—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 March 31, 2020 2019 U.S. $ 652,198 $ 470,538 International 99,557 85,894 Total $ 751,755 $ 556,432 Property and equipment, net and operating lease assets presented by principal geographic area, were as follows (in thousands): March 31, 2020 December 31, 2019 U.S. $ 177,736 $ 157,245 International 101,383 80,216 Total $ 279,119 $ 237,461

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 10— Commitments and Contingencies As of March 31, 2020 Refer to Note 5 — Leases for additional information regarding lease commitments. As of March 31, 2020, 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 2020 (for remaining nine months) $ 45,628 2021 32,915 2022 31,980 2023 30,051 2024 40,000 $ 180,574 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. No demands have been made upon the Company to provide indemnification under such agreements, and thus, there are no claims that the Company is aware of that could have a material effect on the Company’s balance sheet, statement of income or statement of cash flows. Accordingly, no amounts for any obligation have been recorded at March 31, 2020. 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 on an at-will basis, subject to certain severance obligations in the event of certain involuntary terminations. The Company may be required to accelerate the vesting of certain stock options 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)	3 Months Ended
	Mar. 31, 2020
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. For the three months ended March 31, 2020, the impact of the decline in business activity brought about by the Coronavirus pandemic (“COVID-19”) continues to evolve. As a result, many of our estimates and assumptions required increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, our estimates may change materially in future periods.
Adoption of New Accounting Standard	Adoption of New Accounting Standard In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASC 326 , which requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. As a result, the Company revised its impairment model to utilize an expected loss methodology in place of an incurred loss methodology related to its marketable securities and allowance for doubtful accounts. The Company adopted ASC 326 on January 1, 2020, using a modified retrospective transition method, which requires a cumulative-effect adjustment, if any, to the opening balance of retained earnings to be recognized on the date of adoption with prior periods not restated. The cumulative-effect adjustment recorded on January 1, 2020, is not material.
Accounts Receivable and Allowance for Credit Losses (formerly Allowance for Doubtful Accounts)	Accounts Receivable and Allowance for Credit Losses (formerly Allowance for Doubtful Accounts) Accounts receivable are recorded at the invoiced amount, are unsecured and do not bear interest. The Company performs ongoing credit evaluations of its clients and certain advertisers when the Company’s agreements with its clients contain sequential liability terms that provide that the client payments are not due to the Company until the client has received payment from its clients who are advertisers. We maintain an allowance for credit losses for expected uncollectible accounts receivable, which is recorded as an offset to accounts receivable and changes in such are classified as general and administrative expense in the Consolidated Statements of Income. Based on the implementation of CECL during the first quarter of 2020, the Company considers macro-economic factors and industry specific default rates in the valuation of trade receivables and the related allowance for credit losses . The industry specific default rates are applied to the advertiser’s industry in the case where the receivables are subject to sequential liability or the Company is engaged with the advertiser directly. The services of an outside valuation firm were used to assist in the determination of the macro-economic factors and the industry default rates . For the three months ended March 31, 2020, our assessment considered business and market disruptions caused by COVID-19 and estimates of credit defaults by industry.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2019, the FASB Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848)

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2020
Earnings Per Share [Abstract]
Computation of Basic and Diluted EPS	The computation of basic and diluted EPS is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2020 2019 Numerator: Net income $ 24,057 $ 10,151 Denominator: Weighted-average shares outstanding—basic 45,501 43,906 Effect of dilutive securities: Options to purchase common stock 2,447 2,952 Employee stock purchase plan shares 116 122 Restricted stock 249 334 Weighted-average shares outstanding—diluted 48,313 47,314 Basic EPS $ 0.53 $ 0.23 Diluted EPS $ 0.50 $ 0.21 Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted EPS 388 818

Cash, Cash Equivalents and Sh_2

Cash, Cash Equivalents and Short-Term Investments (Tables)	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 Cash and Cash Short-Term Equivalents Investments Total Cash $ 61,623 $ — $ 61,623 Level 1: Money market funds 248,459 — 248,459 Level 2: Commercial paper 9,535 29,021 38,556 Corporate debt securities — 68,829 68,829 U.S. government and agency securities 5,594 22,775 28,369 Total $ 325,211 $ 120,625 $ 445,836 As of December 31, 2019 Cash and Cash Short-Term Equivalents Investments Total Cash $ 32,123 $ — $ 32,123 Level 1: Money market funds 45,588 — 45,588 Time deposits 35,000 — 35,000 Level 2: Commercial paper 15,666 24,975 40,641 Corporate debt securities — 78,998 78,998 U.S. government and agency securities 2,499 20,139 22,638 Total $ 130,876 $ 124,112 $ 254,988
Schedule of Contractual Maturities of Short-Term Investments	The contractual maturities of the Company’s short-term investments are as follows (in thousands): March 31, 2020 Due in one year $ 111,528 Due in one to two years 9,097 Total $ 120,625

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2020
Leases [Abstract]
Summary of Components of Lease Expense	The components of lease expense recorded in the condensed consolidated statements of operations were as follows (in thousands): Three Months Ended March 31, 2020 2019 Operating lease cost $ 9,538 $ 5,171 Short-term lease cost 239 407 Variable lease cost 811 329 Sublease income (990 ) (302 ) Total lease cost $ 9,598 $ 5,605
Summary of Maturities of Lease Commitments	Maturities of lease commitments as of March 31, 2020 were as follows (in thousands): Year Amount 2020 (for remaining nine months) $ 18,430 2021 49,466 2022 46,390 2023 42,304 2024 33,305 Thereafter 161,160 Total undiscounted lease commitments 351,055 Less: commitments for leases not yet commenced (78,521 ) Less: interest (45,319 ) Present value of lease liabilities 227,215 Less: operating lease liabilities, current (22,527 ) Operating lease liabilities, non-current $ 204,688

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of Stock-Based Compensation Expense	Stock-based compensation expense recorded in the condensed consolidated statements of income was as follows (in thousands): Three Months Ended March 31, 2020 2019 Platform operations $ 1,462 $ 1,056 Sales and marketing 5,314 3,227 Technology and development 8,590 4,936 General and administrative 7,599 6,650 Total $ 22,965 $ 15,869
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, 2019 4,064 $ 70.74 Granted 46 269.45 Exercised (539 ) 35.91 Cancelled (34 ) 139.02 Outstanding as of March 31, 2020 3,537 $ 77.97 Exercisable as of March 31, 2020 1,624 $ 40.82
Summary of Restricted Stock Activity	The following summarizes restricted stock activity: Shares (in thousands) Weighted- Average Grant Date Fair Value Unvested as of December 31, 2019 457 $ 120.65 Granted 19 265.32 Vested (45 ) 115.68 Forfeited (9 ) 202.87 Unvested as of March 31, 2020 422 $ 125.81

Geographic Information (Tables)

Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2020
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 March 31, 2020 2019 U.S. $ 652,198 $ 470,538 International 99,557 85,894 Total $ 751,755 $ 556,432
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): March 31, 2020 December 31, 2019 U.S. $ 177,736 $ 157,245 International 101,383 80,216 Total $ 279,119 $ 237,461

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2020
Commitments And Contingencies Disclosure [Abstract]
Schedule of Non-Cancelable Contractual Commitments of Obligations	As of March 31, 2020 Refer to Note 5 — Leases for additional information regarding lease commitments. As of March 31, 2020, 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 2020 (for remaining nine months) $ 45,628 2021 32,915 2022 31,980 2023 30,051 2024 40,000 $ 180,574

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail)	Mar. 31, 2020Class
Earnings Per Share
Number of classes of common stock	2

Earnings Per Share - Computatio

Earnings Per Share - Computation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Numerator:
Net income	$ 24,057	$ 10,151
Denominator:
Weighted-average shares outstanding—basic	45,501	43,906
Effect of dilutive securities:
Options to purchase common stock	2,447	2,952
Employee stock purchase plan shares	116	122
Restricted stock	249	334
Weighted-average shares outstanding—diluted	48,313	47,314
Basic EPS	$ 0.53	$ 0.23
Diluted EPS	$ 0.50	$ 0.21
Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted EPS	388	818

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	Mar. 31, 2020	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018
Schedule Of Available For Sale Securities [Line Items]
Cash and cash equivalents	$ 325,211	$ 130,876	$ 143,841	$ 207,232
Short-Term Investments	120,625	124,112
Available For Sale
Schedule Of Available For Sale Securities [Line Items]
Cash and cash equivalents	325,211	130,876
Short-Term Investments	120,625	124,112
Total	445,836	254,988
Available For Sale | Cash
Schedule Of Available For Sale Securities [Line Items]
Cash and cash equivalents	61,623	32,123
Total	61,623	32,123
Available For Sale | Level 1 | Money Market Funds
Schedule Of Available For Sale Securities [Line Items]
Cash and cash equivalents	248,459	45,588
Total	248,459	45,588
Available For Sale | Level 1 | Time Deposits
Schedule Of Available For Sale Securities [Line Items]
Cash and cash equivalents		35,000
Total		35,000
Available For Sale | Level 2 | Commercial Paper
Schedule Of Available For Sale Securities [Line Items]
Cash and cash equivalents	9,535	15,666
Short-Term Investments	29,021	24,975
Total	38,556	40,641
Available For Sale | Level 2 | Corporate Debt Securities
Schedule Of Available For Sale Securities [Line Items]
Short-Term Investments	68,829	78,998
Total	68,829	78,998
Available For Sale | Level 2 | U.S. Government and Agency Securities
Schedule Of Available For Sale Securities [Line Items]
Cash and cash equivalents	5,594	2,499
Short-Term Investments	22,775	20,139
Total	$ 28,369	$ 22,638

Cash, Cash Equivalents and Sh_4

Cash, Cash Equivalents and Short - Schedule of Contractual Maturities of Short-Term Investments (Detail) $ in Thousands	Mar. 31, 2020USD ($)
Available For Sale Securities Debt Maturities Fair Value [Abstract]
Due in one year	$ 111,528
Due in one to two years	9,097
Total	$ 120,625

Leases - Summary of Components

Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Lease Cost [Abstract]
Operating lease cost	$ 9,538	$ 5,171
Short-term lease cost	239	407
Variable lease cost	811	329
Sublease income	(990)	(302)
Total lease cost	$ 9,598	$ 5,605

Leases - Summary of Maturities

Leases - Summary of Maturities of Lease Commitments (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Operating Lease Liabilities Payments Due [Abstract]
2020 (for remaining nine months)	$ 18,430
2021	49,466
2022	46,390
2023	42,304
2024	33,305
Thereafter	161,160
Total undiscounted lease commitments	351,055
Less: commitments for leases not yet commenced	(78,521)
Less: interest	(45,319)
Present value of lease liabilities	227,215
Less: operating lease liabilities, current	(22,527)	$ (14,577)
Operating lease liabilities, non-current	$ 204,688	$ 174,873

Debt - Additional Information (

Debt - Additional Information (Detail) $ in Thousands	1 Months Ended	3 Months Ended
	Mar. 31, 2020USD ($)	Mar. 31, 2020USD ($)
Debt Disclosure [Abstract]
Outstanding debt balance	$ 143,000	$ 143,000
Credit facility, weighted average annual rate	2.20%	2.20%
Proceeds from line of credit	$ 143,000	$ 143,000

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Stock-based compensation expense, by operating expense category
Stock-based compensation expense	$ 22,965	$ 15,869
Platform operations
Stock-based compensation expense, by operating expense category
Stock-based compensation expense	1,462	1,056
Sales and marketing
Stock-based compensation expense, by operating expense category
Stock-based compensation expense	5,314	3,227
Technology and development
Stock-based compensation expense, by operating expense category
Stock-based compensation expense	8,590	4,936
General and administrative
Stock-based compensation expense, by operating expense category
Stock-based compensation expense	$ 7,599	$ 6,650

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Detail) - Stock Options shares in Thousands	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Shares Under Option
Outstanding at the beginning of the period (in shares) | shares	4,064
Granted (in shares) | shares	46
Exercised (in shares) | shares	(539)
Cancelled (in shares) | shares	(34)
Outstanding at the end of the period (in shares) | shares	3,537
Exercisable as of March 31, 2020 | shares	1,624
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) | $ / shares	$ 70.74
Granted (in dollars per share) | $ / shares	269.45
Exercised (in dollars per share) | $ / shares	35.91
Cancelled (in dollars per share) | $ / shares	139.02
Outstanding at the end of the period (in dollars per share) | $ / shares	77.97
Exercisable as of March 31, 2020 | $ / shares	$ 40.82

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Options - Additional Information (Detail) shares in Millions	Jan. 01, 2020shares
2016 Incentive Award Plan
Stock-Based Compensation
Number of additional shares authorized for grant	1.8

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Restricted Stock Activity (Detail) shares in Thousands	3 Months Ended
	Mar. 31, 2020$ / sharesshares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Unvested, Shares, beginning balance | shares	457
Granted, Shares | shares	19
Vested, Shares | shares	(45)
Forfeited, Shares | shares	(9)
Unvested, Shares, ending balance | shares	422
Unvested, Weighted-Average Grant Date Fair Value Per Share, beginning balance | $ / shares	$ 120.65
Granted, Weighted-Average Grant Date Fair Value Per Share | $ / shares	265.32
Vested, Weighted-Average Grant Date Fair Value Per Share | $ / shares	115.68
Forfeited, Weighted-Average Grant Date Fair Value Per Share | $ / shares	202.87
Unvested, Weighted-Average Grant Date Fair Value Per Share, ending balance | $ / shares	$ 125.81

Stock-Based Compensation - ESPP

Stock-Based Compensation - ESPP - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions	Jan. 01, 2020	Mar. 31, 2020	Mar. 31, 2019
Stock-Based Compensation
Stock-based compensation expense		$ 22,965	$ 15,869
ESPP
Stock-Based Compensation
Stock-based compensation expense		$ 7,800	$ 4,000
Number of additional shares authorized for grant	0.5

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Income Tax Disclosure [Abstract]
Benefits associated with stock-based awards	$ 24.3	$ 11
Federal tax at statutory rate (as a percent)	21.00%	21.00%

Geographic Information - Gross

Geographic Information - Gross Billings, Based on Billing Address of Clients or Client Affiliates (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Revenues From External Customers And Long Lived Assets [Line Items]
Gross Billings	$ 751,755	$ 556,432
U.S.
Revenues From External Customers And Long Lived Assets [Line Items]
Gross Billings	652,198	470,538
International
Revenues From External Customers And Long Lived Assets [Line Items]
Gross Billings	$ 99,557	$ 85,894

Geographic Information - Proper

Geographic Information - Property and Equipment, Net and Operating Lease Assets, Presented by Principal Geographic Area (Detail) - USD ($) $ in Thousands	Mar. 31, 2020	Dec. 31, 2019
Revenues From External Customers And Long Lived Assets [Line Items]
Property and equipment, net and operating lease assets	$ 279,119	$ 237,461
U.S.
Revenues From External Customers And Long Lived Assets [Line Items]
Property and equipment, net and operating lease assets	177,736	157,245
International
Revenues From External Customers And Long Lived Assets [Line Items]
Property and equipment, net and operating lease assets	$ 101,383	$ 80,216

Commitments and Contingencies -

Commitments and Contingencies - Schedule of Non-Cancelable Contractual Commitments of Obligations (Detail) $ in Thousands	Mar. 31, 2020USD ($)
Contractual obligations
2020 (for remaining nine months)	$ 45,628
2021	32,915
2022	31,980
2023	30,051
2024	40,000
Total	$ 180,574

Commitments and Contingencies_2

Commitments and Contingencies - Additional Information (Detail)	Mar. 31, 2020USD ($)
Indemnifications
Commitments and Contingencies
Recorded obligation	$ 0