Financial Statement Components

12 Months Ended

Dec. 31, 2019

Financial Statement Components [Abstract]

Financial Statement Components

Financial Statement Components

Cash and cash equivalents consisted of the following (in thousands):

	December 31,
	2019		2018
Cash and cash equivalents:
Cash	$	73,100	$	69,893
Money market funds	2,179		10,833
U.S. Treasury	—		638
U.S. agency securities	—		50
Commercial paper	2,697		498
Total cash and cash equivalents	$	77,976	$	81,912

Accounts receivable, net consisted of the following (in thousands):

	December 31,
	2019		2018
Trade accounts receivable	$	34,591	$	23,068
Unbilled trade accounts receivable, net of advance client deposits	3,075		1,741
Allowance for doubtful accounts	(11)		(12)
Accounts receivable, net	$	37,655	$	24,797

Prepaid expenses and other current assets consisted of the following (in thousands):

	December 31,
	2019		2018
Prepaid expenses	$	4,901	$	5,005
Other current assets	4,930		2,679
Contract assets	825		330
Prepaid expenses and other current assets	$	10,656	$	8,014

Property and equipment, net consisted of the following (in thousands):

	December 31,
	2019		2018
Computer and network equipment	$	67,378	$	54,452
Computer software	14,157		10,064
Internal-use software development costs	500		500
Furniture and fixtures	2,918		1,491
Leasehold improvements	2,264		855
Property and equipment	87,217		67,362
Accumulated depreciation and amortization	(54,027)		(41,477)
Property and equipment, net	$	33,190	$	25,885

In accordance with the Company’s property and equipment policy, the Company reviews the estimated useful lives of its fixed assets on an ongoing basis. The Company’s review of its existing estimates indicated that the actual lives of certain data center assets were longer than the previously estimated useful lives used for depreciation purposes in the Company’s financial statements. As a result, effective July 1, 2017, the Company changed the

estimated useful lives of certain data center assets to better reflect the estimated periods during which these assets will remain in service. The estimated useful lives of these assets, which the Company previously depreciated for three years, was increased to a range of three to five years. For the year ended December 31, 2017, this change in accounting estimate decreased depreciation expense by $1.6 million and decreased both basic and diluted net loss per share by $0.03.

Depreciation and amortization expense associated with property and equipment was $13.5 million, $9.8 million, and $7.8 million for the years ended December 31, 2019, 2018 and 2017, respectively.

Property and equipment capitalized under finance lease obligations consists primarily of computer and network equipment and was as follows (in thousands):

	December 31,
	2019		2018
Gross	$	46,671	$	47,383
Less: accumulated depreciation and amortization	(39,190)		(33,547)
Total	$	7,481	$	13,836

Accrued and other current liabilities consisted of the following (in thousands):

	December 31,
	2019		2018
Accrued expenses	$	4,152	$	3,494
Accrued compensation and benefits	14,233		10,277
Accrued and other current liabilities	$	18,385	$	13,771