Financial Statement Components

3 Months Ended

Mar. 31, 2020

Financial Statement Components [Abstract]

Financial Statement Components

Financial Statement Components

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

	March 31, 2020		December 31, 2019
Cash	$	77,209	$	73,100
Money market funds	41,038		2,179
U.S. treasury	21,499		—
Commercial paper	—		2,697
Municipal bonds	15,867		—
Corporate bonds	250		—
Total cash and cash equivalents	$	155,863	$	77,976

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

	March 31, 2020		December 31, 2019
Trade accounts receivable	$	36,590	$	34,591
Unbilled trade accounts receivable, net of advance client deposits	3,550		3,075
Allowance for doubtful accounts	(168)		(11)
Accounts receivable, net	$	39,972	$	37,655

The Company's adoption of ASU 2016-13 on January 1, 2020 required it to shift from an incurred loss impairment model to an expected credit loss model which requires it to consider historical loss rates and expectations of forward-looking losses to estimate its allowance for doubtful accounts on its trade accounts receivables, unbilled accounts receivables and contract assets. The adoption of this new standard resulted in an increase to the allowance for doubtful accounts reserve of $233 thousand during the three months ended March 31, 2020. The following table presents the change in the allowance for doubtful accounts, including consideration of expected credit losses, for the three months ended March 31, 2020 (in thousands):

	Three Months Ended
	March 31, 2020
Balance, beginning of period	$	(11)
Add: Bad debt expense (excluding expected credit loss portion)	(22)
Add: Bad debt expense (expected credit loss portion)	(233)
Less: Write-offs, net of recoveries (excluding expected credit loss portion)	11
Less: Write-offs, net of recoveries (expected credit loss portion)	87
Balance, end of period	$	(168)

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

	March 31, 2020		December 31, 2019
Prepaid expenses	$	8,464	$	4,901
Other current assets	4,309		4,930
Contract assets	623		825
Prepaid expenses and other current assets	$	13,396	$	10,656

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

	March 31, 2020		December 31, 2019
Computer and network equipment	$	72,025	$	67,378
Computer software	14,902		14,157
Internal-use software development costs	500		500
Furniture and fixtures	2,906		2,918
Leasehold improvements	2,426		2,264
Property and equipment	92,759		87,217
Accumulated depreciation and amortization	(57,819)		(54,027)
Property and equipment, net	$	34,940	$	33,190

Depreciation and amortization expense associated with property and equipment was $3.9 million and $3.1 million for the three months ended March 31, 2020 and 2019, respectively.

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

	March 31, 2020		December 31, 2019
Gross	$	46,611	$	46,671
Less: accumulated depreciation and amortization	(40,467)		(39,190)
Total	$	6,144	$	7,481

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

	March 31, 2020		December 31, 2019
Accrued compensation and benefits	$	19,628	$	14,233
Accrued expenses	5,110		4,152
Accrued and other current liabilities	$	24,738	$	18,385