x | Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
¨ | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware | 20-2056195 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Large accelerated filer x | Accelerated filer ¨ |
Non-accelerated filer ¨ | Smaller reporting company ¨ |
Emerging growth company ¨ |
Page | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
Item 5. | ||
Item 6. | ||
September 30, 2018 | December 31, 2017 | ||||||
*As Adjusted | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | $ | |||||
Short-term investments | |||||||
Accounts receivable, net | |||||||
Current portion of deferred commissions | |||||||
Prepaid expenses and other current assets | |||||||
Total current assets | |||||||
Deferred commissions, less current portion | |||||||
Long-term investments | |||||||
Property and equipment, net | |||||||
Intangible assets, net | |||||||
Goodwill | |||||||
Other assets | |||||||
Total assets | $ | $ | |||||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | $ | |||||
Accrued expenses and other current liabilities | |||||||
Current portion of deferred revenue | |||||||
Current portion of convertible senior notes, net | |||||||
Total current liabilities | |||||||
Deferred revenue, less current portion | |||||||
Convertible senior notes, net | |||||||
Other long-term liabilities | |||||||
Total liabilities | |||||||
Stockholders’ equity: | |||||||
Common stock | |||||||
Additional paid-in capital | |||||||
Accumulated other comprehensive income (loss) | ( | ) | |||||
Accumulated deficit | ( | ) | ( | ) | |||
Total stockholders’ equity | |||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
*As Adjusted | *As Adjusted | ||||||||||||||
Revenues: | |||||||||||||||
Subscription | $ | $ | $ | $ | |||||||||||
Professional services and other | |||||||||||||||
Total revenues | |||||||||||||||
Cost of revenues(1): | |||||||||||||||
Subscription | |||||||||||||||
Professional services and other | |||||||||||||||
Total cost of revenues | |||||||||||||||
Gross profit | |||||||||||||||
Operating expenses(1): | |||||||||||||||
Sales and marketing | |||||||||||||||
Research and development | |||||||||||||||
General and administrative | |||||||||||||||
Total operating expenses | |||||||||||||||
Income (loss) from operations | ( | ) | ( | ) | ( | ) | |||||||||
Interest expense | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Interest income and other income (expense), net | ( | ) | |||||||||||||
Income (loss) before income taxes | ( | ) | ( | ) | ( | ) | |||||||||
Provision for (benefit from) income taxes | ( | ) | ( | ) | ( | ) | |||||||||
Net income (loss) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Net income (loss) per share - basic | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Net income (loss) per share - diluted | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Weighted-average shares used to compute net income (loss) per share - basic | |||||||||||||||
Weighted-average shares used to compute net income (loss) per share - diluted | |||||||||||||||
Other comprehensive income (loss): | |||||||||||||||
Foreign currency translation adjustments | $ | $ | $ | $ | |||||||||||
Unrealized gain (loss) on investments, net of tax | ( | ) | ( | ) | |||||||||||
Other comprehensive income, net of tax | |||||||||||||||
Comprehensive income (loss) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) |
(1) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
*As Adjusted | *As Adjusted | ||||||||||||||
Cost of revenues: | |||||||||||||||
Subscription | $ | $ | $ | $ | |||||||||||
Professional services and other | |||||||||||||||
Sales and marketing | |||||||||||||||
Research and development | |||||||||||||||
General and administrative |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
*As Adjusted | |||||||
Cash flows from operating activities: | |||||||
Net loss | $ | ( | ) | $ | ( | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Depreciation and amortization | |||||||
Amortization of deferred commissions | |||||||
Amortization of debt discount and issuance costs | |||||||
Stock-based compensation | |||||||
Deferred income tax | ( | ) | ( | ) | |||
Gain on marketable equity securities | ( | ) | |||||
Repayments of convertible senior notes attributable to debt discount | ( | ) | |||||
Other | ( | ) | |||||
Changes in operating assets and liabilities, net of effect of business combinations: | |||||||
Accounts receivable | |||||||
Deferred commissions | ( | ) | ( | ) | |||
Prepaid expenses and other assets | ( | ) | |||||
Accounts payable | ( | ) | |||||
Deferred revenue | |||||||
Accrued expenses and other liabilities | ( | ) | |||||
Net cash provided by operating activities | |||||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | ( | ) | ( | ) | |||
Business combinations, net of cash and restricted cash acquired | ( | ) | ( | ) | |||
Purchases of other intangibles | ( | ) | ( | ) | |||
Purchases of investments | ( | ) | ( | ) | |||
Purchase of strategic investments | ( | ) | ( | ) | |||
Sales of investments | |||||||
Maturities of investments | |||||||
Net cash used in investing activities(1) | ( | ) | ( | ) | |||
Cash flows from financing activities: | |||||||
Net proceeds from borrowings on convertible senior notes | |||||||
Repayments of convertible senior notes attributable to principal | ( | ) | |||||
Proceeds from issuance of warrants | |||||||
Purchases of convertible note hedges | ( | ) | |||||
Repurchases and retirement of common stock | ( | ) | |||||
Proceeds from employee stock plans | |||||||
Taxes paid related to net share settlement of equity awards | ( | ) | ( | ) | |||
Payments on financing obligations | ( | ) | ( | ) | |||
Net cash (used in) provided by financing activities | ( | ) | |||||
Foreign currency effect on cash, cash equivalents and restricted cash(1) | ( | ) | |||||
Net (decrease) increase in cash, cash equivalents and restricted cash(1) | ( | ) | |||||
Cash, cash equivalents and restricted cash at beginning of period(1) | |||||||
Cash, cash equivalents and restricted cash at end of period(1) | $ | $ | |||||
Cash, cash equivalents and restricted cash at end of period: | |||||||
Cash and cash equivalents | $ | $ | |||||
Current portion of restricted cash included in prepaid expenses and other current assets | |||||||
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows | $ | $ | |||||
Non-cash investing and financing activities: | |||||||
Benefit from 2018 Note Hedges | $ | $ | |||||
Property and equipment included in accounts payable and accrued expenses |
(1) |
Year Ended December 31, 2017 | |||||||
As Previously Reported | As Adjusted | ||||||
Assets | |||||||
Accounts receivable, net | $ | $ | |||||
Current portion of deferred commissions | |||||||
Prepaid expenses and other current assets | |||||||
Deferred commissions, less current portion | |||||||
Other assets | |||||||
Liabilities | |||||||
Accrued expenses and other current liabilities | |||||||
Current portion of deferred revenue | |||||||
Deferred revenue, less current portion | |||||||
Other long-term liabilities | |||||||
Stockholder’s equity | |||||||
Accumulated other comprehensive (loss) income | ( | ) | |||||
Accumulated deficit | ( | ) | ( | ) |
Three months ended September 30, 2017 | Nine months ended September 30, 2017 | ||||||||||||||
As Previously Reported | As Adjusted | As Previously Reported | As Adjusted | ||||||||||||
Revenues: | |||||||||||||||
Subscription | $ | $ | $ | $ | |||||||||||
Professional services and other | |||||||||||||||
Total revenues | |||||||||||||||
Cost of revenues: | |||||||||||||||
Professional services and other | |||||||||||||||
Total cost of revenues | |||||||||||||||
Gross profit | |||||||||||||||
Operating expenses: | |||||||||||||||
Sales and marketing | |||||||||||||||
Total operating expenses | |||||||||||||||
Loss from operations | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Interest income and other income (expense), net | ( | ) | |||||||||||||
Loss before income taxes | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Provision for (benefit from) income taxes | ( | ) | ( | ) | |||||||||||
Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Net loss per share - basic and diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||
Weighted-average shares used to compute net loss per share - basic and diluted |
Nine months ended September 30, 2017 | |||||||
As Previously Reported | As Adjusted | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | ( | ) | $ | ( | ) | |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Amortization of deferred commissions | |||||||
Changes in operating assets and liabilities, net of effect of business combinations: | |||||||
Accounts receivable | |||||||
Deferred commissions | ( | ) | ( | ) | |||
Prepaid expenses and other assets | ( | ) | ( | ) | |||
Accounts payable | ( | ) | ( | ) | |||
Deferred revenue | |||||||
Accrued expenses and other liabilities | ( | ) | |||||
Net cash provided by operating activities | |||||||
Foreign currency effect on cash, cash equivalents and restricted cash |
• | Identification of the contract, or contracts, with a customer |
• | Identification of the performance obligations in the contract |
• | Determination of the transaction price |
• | Allocation of the transaction price to the performance obligations in the contract |
• | Recognition of revenue when, or as, we satisfy a performance obligation |
September 30, 2018 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Available-for-sale securities: | |||||||||||||||
Commercial paper | $ | $ | $ | $ | |||||||||||
Corporate notes and bonds | ( | ) | |||||||||||||
Certificates of deposit | |||||||||||||||
U.S. government and agency securities | ( | ) | |||||||||||||
Total available-for-sale securities | $ | $ | $ | ( | ) | $ |
December 31, 2017 | |||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||
Available-for-sale securities: | |||||||||||||||
Commercial paper | $ | $ | $ | ( | ) | $ | |||||||||
Corporate notes and bonds | ( | ) | |||||||||||||
Certificates of deposit | |||||||||||||||
U.S. government and agency securities | ( | ) | |||||||||||||
Total available-for-sale securities | $ | $ | $ | ( | ) | $ |
September 30, 2018 | |||
Due within 1 year | $ | ||
Due in 1 year through 5 years | |||
Total | $ |
September 30, 2018 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
Commercial paper | $ | $ | $ | $ | $ | $ | |||||||||||||||||
Corporate notes and bonds | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||
U.S. government and agency securities | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Total | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) |
December 31, 2017 | |||||||||||||||||||||||
Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | Fair Value | Gross Unrealized Losses | ||||||||||||||||||
Commercial paper | $ | $ | ( | ) | $ | $ | $ | $ | ( | ) | |||||||||||||
Corporate notes and bonds | ( | ) | ( | ) | ( | ) | |||||||||||||||||
U.S. government and agency securities | ( | ) | ( | ) | ( | ) | |||||||||||||||||
Total | $ | $ | ( | ) | $ | $ | ( | ) | $ | $ | ( | ) |
Level 1 | Level 2 | Total | |||||||||
Cash equivalents: | |||||||||||
Money market funds | $ | $ | $ | ||||||||
Commercial paper | |||||||||||
Certificates of deposit | |||||||||||
Short-term investments: | |||||||||||
Commercial paper | |||||||||||
Corporate notes and bonds | |||||||||||
Certificates of deposit | |||||||||||
U.S. government and agency securities | |||||||||||
Long-term investments: | |||||||||||
Corporate notes and bonds | |||||||||||
Certificates of deposit | |||||||||||
U.S. government and agency securities | |||||||||||
Total | $ | $ | $ |
Level 1 | Level 2 | Total | |||||||||
Cash equivalents: | |||||||||||
Money market funds | $ | $ | $ | ||||||||
Commercial paper | |||||||||||
Corporate notes and bonds | |||||||||||
Short-term investments: | |||||||||||
Commercial paper | |||||||||||
Corporate notes and bonds | |||||||||||
Certificates of deposit | |||||||||||
U.S. government and agency securities | |||||||||||
Marketable equity securities | |||||||||||
Long-term investments: | |||||||||||
Corporate notes and bonds | |||||||||||
Certificates of deposit | |||||||||||
U.S. government and agency securities | |||||||||||
Total | $ | $ | $ |
Carrying Amount | |||
Balance as of December 31, 2017 | $ | ||
Goodwill acquired | |||
Foreign currency translation adjustments | ( | ) | |
Balance as of September 30, 2018 | $ |
September 30, | December 31, | ||||||
2018 | 2017 | ||||||
Developed technology | $ | $ | |||||
Patents | |||||||
Other | |||||||
Total intangible assets | |||||||
Less: accumulated amortization | ( | ) | ( | ) | |||
Net carrying amount | $ | $ |
Years Ending December 31, | |||||||
2018 | $ | ||||||
2019 | |||||||
2020 | |||||||
2021 | |||||||
2022 | |||||||
Thereafter | |||||||
Total future amortization expense | $ |
September 30, | December 31, | ||||||
2018 | 2017 | ||||||
Computer equipment | $ | $ | |||||
Computer software | |||||||
Leasehold and other improvements | |||||||
Furniture and fixtures | |||||||
Building | |||||||
Construction in progress | |||||||
Less: accumulated depreciation | ( | ) | ( | ) | |||
Total property and equipment, net | $ | $ |
Condensed Consolidated Balance Sheet Location | September 30, 2018 | ||||
Derivative Assets: | |||||
Foreign currency derivative contracts | Prepaid expenses and other current assets | $ | |||
Derivative Liabilities | |||||
Foreign currency derivative contracts | Accrued expenses and other current liabilities | $ |
September 30, 2018 | December 31, 2017 | ||||||
*As Adjusted | |||||||
Taxes payable | $ | $ | |||||
Bonuses and commissions | |||||||
Accrued compensation | |||||||
Other employee related liabilities | |||||||
Other | |||||||
Total accrued expenses and other current liabilities | $ | $ |
Convertible Date | Initial Conversion Price per Share | Initial Conversion Rate per $1,000 Par Value | Initial Number of Shares | |||||||
2022 Notes | February 1, 2022 | $ | 7.42 shares | |||||||
2018 Notes | July 1, 2018 | $ | 13.54 shares |
• | during any calendar quarter (and only during such calendar quarter) if the last reported sale price of our common stock for at least |
• | during the |
• | upon the occurrence of specified corporate events. |
September 30, 2018 | December 31, 2017 | ||||||
Liability component: | |||||||
Principal: | |||||||
2022 Notes | $ | $ | |||||
2018 Notes | |||||||
Less: debt issuance cost and debt discount, net of amortization | |||||||
2022 Notes | ( | ) | ( | ) | |||
2018 Notes | ( | ) | ( | ) | |||
Net carrying amount | $ | $ |
2022 Notes | 2018 Notes | ||||||
Equity component recorded at issuance: | |||||||
Note | $ | $ | |||||
Issuance cost | ( | ) | ( | ) | |||
Net amount recorded in equity | $ | $ |
September 30, 2018 | December 31, 2017 | ||||||
2022 Notes | $ | $ | |||||
2018 Notes | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Amortization of debt issuance cost | |||||||||||||||
2022 Notes | $ | $ | $ | $ | |||||||||||
2018 Notes | |||||||||||||||
Amortization of debt discount | |||||||||||||||
2022 Notes | |||||||||||||||
2018 Notes | |||||||||||||||
Total | $ | $ | $ | $ | |||||||||||
Effective interest rate of the liability component | |||||||||||||||
2022 Notes | |||||||||||||||
2018 Notes |
Purchase | Shares | |||||
(in thousands) | ||||||
2022 Note Hedge | $ | |||||
2018 Note Hedge | $ |
Proceeds | Shares | Strike Price | First Expiration Date | |||||||||
(in thousands) | ||||||||||||
2022 Warrants | $ | $ | September 1, 2022 | |||||||||
2018 Warrants | $ | $ | February 1, 2019 |
September 30, 2018 | December 31, 2017 | ||||||
*As Adjusted | |||||||
Foreign currency translation adjustment | $ | $ | |||||
Net unrealized gain (loss) on investments, net of tax(1) | ( | ) | |||||
Accumulated other comprehensive income (loss) | $ | ( | ) | $ |
(1) | The net unrealized gain (loss) on investments as of September 30, 2018 includes a cumulative-effect adjustment, net of tax of $ |
September 30, 2018 | ||
Stock plans: | ||
Options outstanding | ||
RSUs(1) | ||
Shares of common stock available for future grants: | ||
2012 Equity Incentive Plan(2) | ||
2012 Employee Stock Purchase Plan(2) | ||
Total shares of common stock reserved for future issuance |
(1) | Represents the number of shares issuable upon settlement of outstanding RSUs and performance-based RSUs, assuming |
(2) | Refer to Note 14 for a description of these plans. |
Number of Shares | Weighted- Average Exercise Price | Weighted- Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in thousands) | |||||||||
Outstanding at December 31, 2017 | $ | |||||||||||
Exercised | ( | ) | $ | |||||||||
Canceled | ( | ) | ||||||||||
Outstanding at March 31, 2018 | ||||||||||||
Exercised | ( | ) | $ | |||||||||
Canceled | ( | ) | ||||||||||
Outstanding at June 30, 2018 | ||||||||||||
Exercised | ( | ) | $ | |||||||||
Outstanding at September 30, 2018 | $ | $ | ||||||||||
Vested and expected to vest as of September 30, 2018 | $ | $ | ||||||||||
Vested and exercisable as of September 30, 2018 | $ | $ |
Number of Shares | Weighted Average Grant Date Fair Value (Per Share) | Aggregate Intrinsic Value (in thousands) | ||||||||
Outstanding at December 31, 2017 | $ | |||||||||
Granted | ||||||||||
Vested | ( | ) | $ | |||||||
Forfeited | ( | ) | ||||||||
Outstanding at March 31, 2018 | ||||||||||
Granted | ||||||||||
Vested | ( | ) | $ | |||||||
Forfeited | ( | ) | ||||||||
Outstanding at June 30, 2018 | ||||||||||
Granted | ||||||||||
Vested | ( | ) | $ | |||||||
Forfeited | ( | ) | ||||||||
Outstanding at September 30, 2018 | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
*As Adjusted | *As Adjusted | ||||||||||||||
Numerator: | |||||||||||||||
Net income (loss) | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Denominator: | |||||||||||||||
Weighted-average shares outstanding - basic | |||||||||||||||
Weighted-average effect of potentially dilutive securities: | |||||||||||||||
Common stock options | — | — | — | ||||||||||||
Restricted stock units | — | — | — | ||||||||||||
ESPP obligations | — | — | — | ||||||||||||
In-the-money portion of 2018 Notes | — | — | — | ||||||||||||
2018 Warrants | — | — | — | ||||||||||||
In-the-money portion of 2022 Notes | — | — | — | ||||||||||||
Weighted-average shares outstanding - diluted | |||||||||||||||
Net income (loss) per share - basic | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Net income (loss) per share - diluted | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
Common stock options | |||||||||||
Restricted stock units | |||||||||||
ESPP obligations | |||||||||||
2018 convertible senior notes | |||||||||||
Warrants related to the issuance of 2018 convertible senior notes | |||||||||||
2022 convertible senior notes | |||||||||||
Warrants related to the issuance of 2022 convertible senior notes | |||||||||||
Total potentially dilutive securities |
Operating Leases | Purchase Obligations(1) | Other | Total | ||||||||||||
Years Ending December 31, | |||||||||||||||
Remainder of 2018 | $ | $ | $ | $ | |||||||||||
2019 | |||||||||||||||
2020 | |||||||||||||||
2021 | |||||||||||||||
2022 | |||||||||||||||
Thereafter | |||||||||||||||
Total | $ | $ | $ | $ |
(1) | Consists of future minimum payments under non-cancelable purchase commitments primarily related to data center and IT operations and sales and marketing activities. Not included in the table above are certain purchase commitments related to our future annual Knowledge user conferences and other customer or sales conferences. If we were to cancel these contractual commitments as of September 30, 2018, we would have been obligated to pay cancellation penalties of approximately $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
*As Adjusted | *As Adjusted | ||||||||||||||
North America (1) | $ | $ | $ | $ | |||||||||||
EMEA (2) | |||||||||||||||
Asia Pacific and other | |||||||||||||||
Total revenues | $ | $ | $ | $ |
September 30, 2018 | December 31, 2017 | ||||||
North America(3) | $ | $ | |||||
EMEA(2) | |||||||
Asia Pacific and other | |||||||
Total property and equipment, net | $ | $ |
(1) | Revenues attributed to the United States were approximately |
(2) | Europe, the Middle East and Africa |
(3) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
*As Adjusted | *As Adjusted | ||||||||||||||
Service management products | $ | $ | $ | $ | |||||||||||
ITOM products | |||||||||||||||
Total subscription revenues | $ | $ | $ | $ |
Three Months Ended September 30, | % Change | Nine Months Ended September 30, | % Change | ||||||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||||||||
*As Adjusted | *As Adjusted | ||||||||||||||||||||
Billings: | |||||||||||||||||||||
Total revenues | $ | 673,097 | $ | 492,372 | 37 | % | $ | 1,893,375 | $ | 1,369,401 | 38 | % | |||||||||
Change in total deferred revenue, unbilled receivables and customer deposits(1) | 47,444 | 54,486 | (13 | )% | 182,418 | 194,535 | (6 | )% | |||||||||||||
Total billings | $ | 720,541 | $ | 546,858 | 32 | % | $ | 2,075,793 | $ | 1,563,936 | 33 | % |
(1) | As presented on or derived from our condensed consolidated statements of cash flows. |
• | Billings duration. While we typically bill customers annually for our subscription services, customers sometimes request, and we accommodate, billings with durations less than or greater than the typical 12-month term. |
• | Contract start date. From time to time, we enter into contracts with a contract start date in the future, and we exclude these amounts from billings as these amounts are not included in our consolidated balance sheets, unless such amounts have been paid as of the balance sheet date. |
• | Foreign currency exchange rates. While a majority of our billings have historically been in U.S. Dollars, an increasing percentage of our billings in recent periods has been in foreign currencies, particularly the Euro and British Pound Sterling. |
• | Timing of contract renewals. While customers typically renew their contracts at the end of the contract term, from time to time customers may do so either before or after the scheduled expiration date. For example, in cases where we are successful in selling additional products or services to an existing customer, a customer may decide to renew its existing contract early to ensure that all its contracts expire on the same date. In other cases, prolonged negotiations or other factors may result in a contract not being renewed until after it has expired. |
Nine Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
Free cash flow: | ||||||||||
Net cash provided by operating activities | $ | 521,477 | $ | 458,157 | 14 | % | ||||
Purchases of property and equipment | (136,349 | ) | (115,856 | ) | 18 | % | ||||
Free cash flow(1) | $ | 385,128 | $ | 342,301 | 13 | % |
(1) | Free cash flow for the nine months ended September 30, 2018 includes the effect of $101.6 million relating to the repayments of convertible senior notes attributable to debt discount. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
*As Adjusted | *As Adjusted | ||||||||||||||
Revenues: | |||||||||||||||
Subscription | $ | 626,567 | $ | 449,506 | $ | 1,755,174 | $ | 1,239,762 | |||||||
Professional services and other | 46,530 | 42,866 | 138,201 | 129,639 | |||||||||||
Total revenues | 673,097 | 492,372 | 1,893,375 | 1,369,401 | |||||||||||
Cost of revenues(1): | |||||||||||||||
Subscription | 106,821 | 81,878 | 303,918 | 228,046 | |||||||||||
Professional services and other | 51,037 | 45,608 | 150,578 | 137,652 | |||||||||||
Total cost of revenues | 157,858 | 127,486 | 454,496 | 365,698 | |||||||||||
Gross profit | 515,239 | 364,886 | 1,438,879 | 1,003,703 | |||||||||||
Operating expenses(1): | |||||||||||||||
Sales and marketing | 289,323 | 217,866 | 883,893 | 643,998 | |||||||||||
Research and development | 135,655 | 98,465 | 380,839 | 272,959 | |||||||||||
General and administrative | 80,693 | 52,465 | 216,851 | 150,242 | |||||||||||
Total operating expenses | 505,671 | 368,796 | 1,481,583 | 1,067,199 | |||||||||||
Income (loss) from operations | 9,568 | (3,910 | ) | (42,704 | ) | (63,496 | ) | ||||||||
Interest expense | (11,233 | ) | (16,566 | ) | (43,795 | ) | (36,581 | ) | |||||||
Interest income and other income (expense), net | 8,895 | 579 | 45,520 | (177 | ) | ||||||||||
Income (loss) before income taxes | 7,230 | (19,897 | ) | (40,979 | ) | (100,254 | ) | ||||||||
Provision for (benefit from) income taxes | (1,175 | ) | 2,285 | (7,260 | ) | (754 | ) | ||||||||
Net income (loss) | $ | 8,405 | $ | (22,182 | ) | $ | (33,719 | ) | $ | (99,500 | ) |
(1) | Stock-based compensation included in the statements of operations above was as follows (in thousands): |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
*As Adjusted | *As Adjusted | ||||||||||||||
Cost of revenues: | |||||||||||||||
Subscription | $ | 12,775 | $ | 8,980 | $ | 36,604 | $ | 25,860 | |||||||
Professional services and other | 8,407 | 7,056 | 24,310 | 21,548 | |||||||||||
Sales and marketing | 60,132 | 43,962 | 169,283 | 124,650 | |||||||||||
Research and development | 35,527 | 23,092 | 97,905 | 67,624 | |||||||||||
General and administrative | 27,567 | 17,352 | 73,207 | 48,695 | |||||||||||
Total stock-based compensation | $ | 144,408 | $ | 100,442 | $ | 401,309 | $ | 288,377 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
*As Adjusted | *As Adjusted | ||||||||||
Revenues: | |||||||||||
Subscription | 93 | % | 91 | % | 93 | % | 91 | % | |||
Professional services and other | 7 | 9 | 7 | 9 | |||||||
Total revenues | 100 | 100 | 100 | 100 | |||||||
Cost of revenues(1): | |||||||||||
Subscription | 16 | 17 | 16 | 17 | |||||||
Professional services and other | 7 | 9 | 8 | 10 | |||||||
Total cost of revenues | 23 | 26 | 24 | 27 | |||||||
Gross profit | 77 | 74 | 76 | 73 | |||||||
Operating expenses(1): | |||||||||||
Sales and marketing | 43 | 44 | 47 | 47 | |||||||
Research and development | 20 | 20 | 20 | 20 | |||||||
General and administrative | 13 | 11 | 11 | 11 | |||||||
Total operating expenses | 76 | 75 | 78 | 78 | |||||||
Income (loss) from operations | 1 | (1 | ) | (2 | ) | (5 | ) | ||||
Interest expense | (2 | ) | (3 | ) | (2 | ) | (3 | ) | |||
Interest income and other income (expense), net | 2 | (1 | ) | 2 | 1 | ||||||
Income (loss) before income taxes | 1 | (5 | ) | (2 | ) | (7 | ) | ||||
Provision for (benefit from) income taxes | — | — | — | — | |||||||
Net income (loss) | 1 | % | (5 | %) | (2 | %) | (7 | %) |
(1) | Stock-based compensation included in the statements of operations above as a percentage of revenues was as follows: |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||
*As Adjusted | *As Adjusted | ||||||||||
Cost of revenues: | |||||||||||
Subscription | 2 | % | 2 | % | 2 | % | 2 | % | |||
Professional services and other | 1 | 1 | 1 | 2 | |||||||
Sales and marketing | 9 | 9 | 9 | 9 | |||||||
Research and development | 5 | 5 | 5 | 5 | |||||||
General and administrative | 4 | 3 | 4 | 3 | |||||||
Total stock-based compensation | 21 | % | 20 | % | 21 | % | 21 | % |
Three Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
Revenues: | ||||||||||
Subscription | $ | 626,567 | $ | 449,506 | 39 | % | ||||
Professional services and other | 46,530 | 42,866 | 9 | % | ||||||
Total revenues | $ | 673,097 | $ | 492,372 | 37 | % | ||||
Percentage of revenues: | ||||||||||
Subscription | 93 | % | 91 | % | ||||||
Professional services and other | 7 | % | 9 | % | ||||||
Total | 100 | % | 100 | % |
Three Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
Service management products | $ | 533,007 | $ | 394,603 | 35 | % | ||||
ITOM products | 93,560 | 54,903 | 70 | % | ||||||
Total subscription revenues | $ | 626,567 | $ | 449,506 | 39 | % |
Three Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
Cost of revenues: | ||||||||||
Subscription | $ | 106,821 | $ | 81,878 | 30 | % | ||||
Professional services and other | 51,037 | 45,608 | 12 | % | ||||||
Total cost of revenues | $ | 157,858 | $ | 127,486 | 24 | % | ||||
Gross profit (loss) percentage: | ||||||||||
Subscription | 83 | % | 82 | % | ||||||
Professional services and other | (10 | %) | (6 | %) | ||||||
Total gross profit percentage | 77 | % | 74 | % | ||||||
Gross profit | $ | 515,239 | $ | 364,886 | ||||||
Headcount (at period end) | ||||||||||
Subscription | 1,121 | 886 | 27 | % | ||||||
Professional services and other | 641 | 555 | 15 | % | ||||||
Total headcount | 1,762 | 1,441 | 22 | % |
Three Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
Sales and marketing | $ | 289,323 | $ | 217,866 | 33 | % | ||||
Percentage of revenues | 43 | % | 44 | % | ||||||
Headcount (at period end) | 2,890 | 2,279 | 27 | % |
Three Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
Research and development | $ | 135,655 | $ | 98,465 | 38 | % | ||||
Percentage of revenues | 20 | % | 20 | % | ||||||
Headcount (at period end) | 1,860 | 1,322 | 41 | % |
Three Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
General and administrative | $ | 80,693 | $ | 52,465 | 54 | % | ||||
Percentage of revenues | 13 | % | 11 | % | ||||||
Headcount (at period end) | 1,149 | 853 | 35 | % |
Three Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
Cost of revenues: | ||||||||||
Subscription | $ | 12,775 | $ | 8,980 | 42 | % | ||||
Professional services and other | 8,407 | 7,056 | 19 | % | ||||||
Sales and marketing | 60,132 | 43,962 | 37 | % | ||||||
Research and development | 35,527 | 23,092 | 54 | % | ||||||
General and administrative | 27,567 | 17,352 | 59 | % | ||||||
Total stock-based compensation | $ | 144,408 | $ | 100,442 | 44 | % | ||||
Percentage of revenues | 21 | % | 20 | % |
Three Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
(dollars in thousands) | ||||||||||
Interest expense | $ | (11,233 | ) | $ | (16,566 | ) | (32 | %) | ||
Percentage of revenues | (2 | %) | (3 | %) |
Three Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
Interest income | $ | 7,474 | $ | 4,808 | 55 | % | ||||
Foreign currency exchange gain (loss), net of derivative contracts | 527 | (4,393 | ) | (112 | %) | |||||
Other | 894 | 164 | NM | |||||||
Interest and other income (expense), net | $ | 8,895 | $ | 579 | NM | |||||
Percentage of revenues | 2 | % | (1 | %) |
Three Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
Income (loss) before income taxes | $ | 7,230 | $ | (19,897 | ) | (136 | %) | |||
Provision for (benefit from) income taxes | (1,175 | ) | 2,285 | (151 | %) | |||||
Effective tax rate | (16 | %) | (11 | %) |
Three Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
Net loss | $ | 8,405 | $ | (22,182 | ) | (138 | %) | |||
Percentage of revenues | 1 | % | (5 | %) |
Nine Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
Revenues: | ||||||||||
Subscription | $ | 1,755,174 | $ | 1,239,762 | 42 | % | ||||
Professional services and other | 138,201 | 129,639 | 7 | % | ||||||
Total revenues | $ | 1,893,375 | $ | 1,369,401 | 38 | % | ||||
Percentage of revenues: | ||||||||||
Subscription | 93 | % | 91 | % | ||||||
Professional services and other | 7 | % | 9 | % | ||||||
Total | 100 | % | 100 | % |
Nine Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
Service management products | $ | 1,490,283 | $ | 1,094,765 | 36 | % | ||||
ITOM products | 264,891 | 144,997 | 83 | % | ||||||
Total subscription revenues | $ | 1,755,174 | $ | 1,239,762 | 42 | % |
Nine Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
Cost of revenues: | ||||||||||
Subscription | $ | 303,918 | $ | 228,046 | 33 | % | ||||
Professional services and other | 150,578 | 137,652 | 9 | % | ||||||
Total cost of revenues | $ | 454,496 | $ | 365,698 | 24 | % | ||||
Gross profit (loss) percentage: | ||||||||||
Subscription | 83 | % | 82 | % | ||||||
Professional services and other | (9 | %) | (6 | %) | ||||||
Total gross profit percentage | 76 | % | 73 | % | ||||||
Gross profit | $ | 1,438,879 | $ | 1,003,703 | ||||||
Headcount (at period end) | ||||||||||
Subscription | 1,121 | 886 | 27 | % | ||||||
Professional services and other | 641 | 555 | 15 | % | ||||||
Total headcount | 1,762 | 1,441 | 22 | % |
Nine Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
Sales and marketing | $ | 883,893 | $ | 643,998 | 37 | % | ||||
Percentage of revenues | 47 | % | 47 | % | ||||||
Headcount (at period end) | 2,890 | 2,279 | 27 | % |
Nine Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
Research and development | $ | 380,839 | $ | 272,959 | 40 | % | ||||
Percentage of revenues | 20 | % | 20 | % | ||||||
Headcount (at period end) | 1,860 | 1,322 | 41 | % |
Nine Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
General and administrative | $ | 216,851 | $ | 150,242 | 44 | % | ||||
Percentage of revenues | 11 | % | 11 | % | ||||||
Headcount (at period end) | 1,149 | 853 | 35 | % |
Nine Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
Cost of revenues: | ||||||||||
Subscription | $ | 36,604 | $ | 25,860 | 42 | % | ||||
Professional services and other | 24,310 | 21,548 | 13 | % | ||||||
Sales and marketing | 169,283 | 124,650 | 36 | % | ||||||
Research and development | 97,905 | 67,624 | 45 | % | ||||||
General and administrative | 73,207 | 48,695 | 50 | % | ||||||
Total stock-based compensation | $ | 401,309 | $ | 288,377 | 39 | % | ||||
Percentage of revenues | 21 | % | 21 | % |
Nine Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
(dollars in thousands) | ||||||||||
Interest expense | $ | (43,795 | ) | $ | (36,581 | ) | 20 | % | ||
Percentage of revenues | (2 | %) | (3 | %) |
Nine Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
Interest income | $ | 22,056 | $ | 10,930 | 102 | % | ||||
Foreign currency exchange gain (loss), net of derivative contracts | 6,304 | (11,194 | ) | (156 | %) | |||||
Gain on marketable equity securities | 19,257 | — | NM | |||||||
Loss on early note conversions | (4,067 | ) | — | NM | ||||||
Other | 1,970 | 87 | NM | |||||||
Interest and other income (expense), net | $ | 45,520 | $ | (177 | ) | NM | ||||
Percentage of revenues | 2 | % | 1 | % |
Nine Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
Loss before income taxes | $ | (40,979 | ) | $ | (100,254 | ) | (59 | %) | ||
Benefit from income taxes | (7,260 | ) | (754 | ) | NM | |||||
Effective tax rate | 18 | % | 1 | % |
Nine Months Ended September 30, | % Change | |||||||||
2018 | 2017 | |||||||||
*As Adjusted | ||||||||||
(dollars in thousands) | ||||||||||
Net loss | $ | (33,719 | ) | $ | (99,500 | ) | (66 | %) | ||
Percentage of revenues | (2 | %) | (7 | %) |
Nine Months Ended September 30, | |||||||
2018 | 2017 | ||||||
*As Adjusted | |||||||
(dollars in thousands) | |||||||
Net cash provided by operating activities | $ | 521,477 | $ | 458,157 | |||
Net cash used in investing activities | (100,283 | ) | (365,664 | ) | |||
Net cash (used in) provided by financing activities | (433,107 | ) | 586,118 | ||||
Net (decrease) increase in cash, cash equivalents and restricted cash, net of foreign currency effect | (21,506 | ) | 704,376 |
• | Identification of the contract, or contracts, with a customer |
• | Identification of the performance obligations in the contract |
• | Determination of the transaction price |
• | Allocation of the transaction price to the performance obligations in the contract |
• | Recognition of revenue when, or as, we satisfy a performance obligation |
• | our ability to attract new customers, retain and increase sales to existing customers, and satisfy our customers’ requirements; |
• | changes in our mix of products and services, including changes in our mix of cloud and self-hosted offerings; |
• | changes in foreign currency exchange rates and our ability to effectively hedge our foreign currency exposure; |
• | the rate of expansion and productivity of our sales force; |
• | the number of new employees added; |
• | the cost, timing and management effort for our development of new products and services; |
• | general economic conditions that may adversely affect either our customers’ ability or willingness to purchase additional subscriptions, delay a prospective customer’s purchasing decision, reduce the value of new subscription contracts or adversely affect renewal rates; |
• | the amount and timing of operating costs and capital expenditures related to the operation and expansion of our business; |
• | seasonality in terms of when we enter into customer agreements for our services; |
• | the length of the sales cycle for our services; |
• | changes to our management team; |
• | changes in our pricing policies, whether initiated by us or as a result of competition; |
• | significant security breaches, technical difficulties or interruptions of our services; |
• | new solutions, products or changes in pricing policies introduced by our competitors; |
• | changes in effective tax rates; |
• | changes in the average contract term of our customer agreements, changes in timing of renewals and changes in billings duration; |
• | changes in our renewal rates and expansion within our existing customers; |
• | the timing of customer payments and payment defaults by customers; |
• | extraordinary expenses such as litigation costs or damages, including settlement payments; |
• | the costs associated with acquiring new businesses and technologies and the follow-on costs of integration, including the tax effects of acquisitions; |
• | the impact of new accounting pronouncements, including the new revenue recognition standards that were effective for us beginning January 1, 2018 and the new leasing standard that will become effective on January 1, 2019; |
• | changes in laws or regulations impacting the delivery of our services; |
• | our ability to comply with privacy laws and regulations, including the General Data Protection Regulation (the GDPR) and the California Consumer Privacy Act (the CCPA); |
• | the amount and timing of equity awards and the related financial statement expenses; and |
• | our ability to accurately estimate the total addressable market for our products and services. |
• | compliance with multiple, conflicting and changing governmental laws and regulations, including employment, tax, competition, privacy and data protection laws and regulations, including the GDPR; |
• | compliance by us and our business partners with international bribery and anti-corruption laws, including the UK Bribery Act and the Foreign Corrupt Practices Act; |
• | the risk that illegal or unethical activities of our business partners will be attributed to or result in liability to us; |
• | longer and potentially more complex sales cycles; |
• | longer accounts receivable payment cycles and other collection difficulties; |
• | tax treatment of revenues from international sources and changes to tax codes, including being subject to foreign tax laws and being liable for paying withholding, income or other taxes in foreign jurisdictions; |
• | different pricing and distribution environments; |
• | foreign currency fluctuations, which may cause transactional and translational remeasurement losses; |
• | potential changes in international trade policies and agreements, including the adoption and expansion of trade restrictions or regulatory frameworks or business practices favoring local competitors; |
• | local business practices and cultural norms that may favor local competitors; and |
• | localization of our services, including translation into foreign languages and associated expenses. |
• | assimilating or integrating the businesses, technologies, products, personnel or operations of the acquired companies; |
• | failing to achieve the expected benefits of the acquisition or investment; |
• | potential loss of key employees of the acquired company; |
• | inability to maintain relationships with customers and partners of the acquired business; |
• | unanticipated expenses related to acquired technology and its integration into our existing technology; |
• | potential adverse tax consequences; |
• | inability to generate sufficient revenue to offset acquisition or investment costs; |
• | disruption to our business and diversion of management attention and other resources; |
• | potential financial and credit risks associated with acquired customers; |
• | dependence on acquired technologies or licenses for which alternatives may not be available to us without significant cost or complexity; |
• | in the case of foreign acquisitions, the challenges associated with integrating operations across different cultures and languages and any currency and regulatory risks associated with specific countries; and |
• | potential unknown liabilities associated with the acquired businesses. |
• | changes in the estimates of our operating results or changes in recommendations by securities analysts that elect to follow our common stock; |
• | announcements of new products, services or technologies, new applications or enhancements to services, strategic alliances, acquisitions, or other significant events by us or by our competitors; |
• | fluctuations in the valuation of companies perceived by investors to be comparable to us, such as high-growth or cloud companies; |
• | changes to our management team; |
• | trading activity by directors, executive officers and significant stockholders, or the perception in the market that the holders of a large number of shares intend to sell their shares; |
• | the size of our market float; |
• | the volume of trading in our common stock, including sales upon exercise of outstanding options or vesting of equity awards or sales and purchases of any common stock issued upon conversion of the 2022 Notes or 2018 Notes or in connection with the 2022 Note Hedge and 2022 Warrant transactions relating to the 2022 Notes, or 2018 Note Hedge and 2018 Warrant transactions relating to the 2018 Notes; |
• | the economy as a whole, market conditions in our industry, and the industries of our customers; and |
• | overall performance of the equity markets. |
• | establish a classified board of directors so that not all members of our board are elected at one time; |
• | permit the board of directors to establish the number of directors; |
• | provide that directors may only be removed “for cause” and only with the approval of 66 2/3% of our stockholders; |
• | require super-majority voting to amend some provisions in our restated certificate of incorporation and restated bylaws; |
• | authorize the issuance of “blank check” preferred stock that our board could use to implement a stockholder rights plan; |
• | eliminate the ability of our stockholders to call special meetings of stockholders; |
• | prohibit stockholder action by written consent, which requires all stockholder actions to be taken at a meeting of our stockholders; |
• | provide that the board of directors is expressly authorized to make, alter or repeal our restated bylaws; and |
• | establish advance notice requirements for nominations for election to our board or for proposing matters that can be acted upon by stockholders at annual stockholder meetings (though our restated bylaws have implemented stockholder proxy access). |
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101.SCH | XBRL Taxonomy Extension Schema Document. | X | ||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | X | ||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | X | ||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | X | ||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | X |
SERVICENOW, INC. | |||
Date: November 7, 2018 | By: | /s/ John J. Donahoe | |
John J. Donahoe | |||
President and Chief Executive Officer | |||
(On behalf of the Registrant) | |||
Date: November 7, 2018 | By: | /s/ Michael P. Scarpelli | |
Michael P. Scarpelli | |||
Chief Financial Officer | |||
(As Principal Financial and Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of ServiceNow, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: November 7, 2018 | |
/s/ John J. Donahoe | |
John J. Donahoe President and Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of ServiceNow, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: November 7, 2018 | |
/s/ Michael P. Scarpelli | |
Michael P. Scarpelli Chief Financial Officer (Principal Financial and Accounting Officer) |
• | the Quarterly Report on Form 10-Q of the Company for the period ended September 30, 2018 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
• | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein. |
Date: November 7, 2018 | |
/s/ John J. Donahoe | |
John J. Donahoe President and Chief Executive Officer (Principal Executive Officer) |
• | the Quarterly Report on Form 10-Q of the Company for the period ended September 30, 2018 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
• | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the periods presented therein. |
Date: November 7, 2018 | |
/s/ Michael P. Scarpelli | |
Michael P. Scarpelli Chief Financial Officer (Principal Financial and Accounting Officer) |
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end
Document and Entity Information shares in Millions |
9 Months Ended |
---|---|
Sep. 30, 2018
shares
| |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Entity Registrant Name | SERVICENOW, INC. |
Trading Symbol | NOW |
Entity Central Index Key | 0001373715 |
Document Period End Date | Sep. 30, 2018 |
Amendment Flag | false |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | Q3 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Entity Common Stock, Shares Outstanding | 179.3 |
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 |
Sep. 30, 2017 |
[1] | Sep. 30, 2018 |
Sep. 30, 2017 |
[1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ 673,097 | $ 492,372 | $ 1,893,375 | $ 1,369,401 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of revenues | [2] | 157,858 | 127,486 | 454,496 | 365,698 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 515,239 | 364,886 | 1,438,879 | 1,003,703 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and marketing | [2] | 289,323 | 217,866 | 883,893 | 643,998 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and development | [2] | 135,655 | 98,465 | 380,839 | 272,959 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative | [2] | 80,693 | 52,465 | 216,851 | 150,242 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | [2] | 505,671 | 368,796 | 1,481,583 | 1,067,199 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from operations | 9,568 | (3,910) | (42,704) | (63,496) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | (11,233) | (16,566) | (43,795) | (36,581) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income and other income (expense), net | 8,895 | 579 | 45,520 | (177) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 7,230 | (19,897) | (40,979) | (100,254) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | (1,175) | 2,285 | (7,260) | (754) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ 8,405 | $ (22,182) | $ (33,719) | $ (99,500) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) per share - basic (in dollars per share) | $ 0.05 | $ (0.13) | $ (0.19) | $ (0.58) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) per share - diluted (in dollars per share) | $ 0.04 | $ (0.13) | $ (0.19) | $ (0.58) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average shares used to compute net income (loss) per share - basic (in shares) | 178,719,694 | 171,883,190 | 177,198,179 | 170,359,717 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average shares used to compute net income (loss) per share - diluted (in shares) | 192,190,899 | 171,883,190 | 177,198,179 | 170,359,717 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | $ 1,655 | $ 5,237 | $ 212 | $ 22,383 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain (loss) on investments, net of tax | 922 | (2,864) | (163) | 5,243 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 2,577 | 2,373 | 49 | 27,626 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income (loss) | 10,982 | (19,809) | (33,670) | (71,874) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subscription | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 626,567 | 449,506 | 1,755,174 | 1,239,762 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of revenues | [2] | 106,821 | 81,878 | 303,918 | 228,046 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Professional services and other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 46,530 | 42,866 | 138,201 | 129,639 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of revenues | [2] | $ 51,037 | $ 45,608 | $ 150,578 | $ 137,652 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Condensed Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
[1] | Sep. 30, 2018 |
Sep. 30, 2017 |
[1] | |||
Stock-based compensation | $ 401,309 | $ 288,377 | ||||||
Cost of revenues | Subscription | ||||||||
Stock-based compensation | $ 12,775 | $ 8,980 | 36,604 | 25,860 | ||||
Cost of revenues | Professional services and other | ||||||||
Stock-based compensation | 8,407 | 7,056 | 24,310 | 21,548 | ||||
Sales and marketing | ||||||||
Stock-based compensation | 60,132 | 43,962 | 169,283 | 124,650 | ||||
Research and development | ||||||||
Stock-based compensation | 35,527 | 23,092 | 97,905 | 67,624 | ||||
General and administrative | ||||||||
Stock-based compensation | $ 27,567 | $ 17,352 | $ 73,207 | $ 48,695 | ||||
|
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
9 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
[1] | ||||||
Cash flows from operating activities: | ||||||||
Net loss | $ (33,719) | $ (99,500) | ||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 106,492 | 81,808 | ||||||
Amortization of deferred commissions | 107,367 | 68,154 | ||||||
Amortization of debt discount and issuance costs | 43,795 | 36,581 | ||||||
Stock-based compensation | 401,309 | 288,377 | ||||||
Deferred income tax | (32,297) | (6,055) | ||||||
Gain on marketable equity securities | (19,257) | 0 | ||||||
Repayments of convertible senior notes attributable to debt discount | (101,633) | 0 | ||||||
Other | 4,502 | (1,554) | ||||||
Changes in operating assets and liabilities, net of effect of business combinations: | ||||||||
Accounts receivable | 7,454 | 45,879 | ||||||
Deferred commissions | (152,521) | (114,514) | ||||||
Prepaid expenses and other assets | 1,519 | (17,393) | ||||||
Accounts payable | 5,058 | (11,088) | ||||||
Deferred revenue | 174,058 | 188,291 | ||||||
Accrued expenses and other liabilities | 9,350 | (829) | ||||||
Net cash provided by operating activities | 521,477 | 458,157 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (136,349) | (115,856) | ||||||
Business combinations, net of cash and restricted cash acquired | (24,940) | (26,537) | ||||||
Purchases of other intangibles | (13,600) | (6,170) | ||||||
Purchases of investments | (818,159) | (641,666) | ||||||
Purchase of strategic investments | (8,839) | (4,000) | ||||||
Sales of investments | 39,975 | 77,968 | ||||||
Maturities of investments | 861,629 | 350,597 | ||||||
Net cash used in investing activities | [2] | (100,283) | (365,664) | |||||
Cash flows from financing activities: | ||||||||
Net proceeds from borrowings on convertible senior notes | 0 | 772,127 | ||||||
Repayments of convertible senior notes attributable to principal | (311,520) | 0 | ||||||
Proceeds from issuance of warrants | 0 | 54,071 | ||||||
Purchases of convertible note hedges | 0 | (128,017) | ||||||
Repurchases and retirement of common stock | 0 | (55,000) | ||||||
Proceeds from employee stock plans | 100,437 | 76,748 | ||||||
Taxes paid related to net share settlement of equity awards | (221,268) | (131,130) | ||||||
Payments on financing obligations | (756) | (2,681) | ||||||
Net cash (used in) provided by financing activities | (433,107) | 586,118 | ||||||
Foreign currency effect on cash, cash equivalents and restricted cash | [2] | (9,593) | 25,765 | |||||
Net (decrease) increase in cash, cash equivalents and restricted cash | [2] | (21,506) | 704,376 | |||||
Cash, cash equivalents and restricted cash at beginning of period | [2] | 727,829 | 401,932 | |||||
Cash, cash equivalents and restricted cash at end of period | [2] | 706,323 | 1,106,308 | |||||
Cash, cash equivalents and restricted cash at end of period: | ||||||||
Total cash, cash equivalents and restricted cash shown in the condensed consolidated statements of cash flows | [2] | 727,829 | 401,932 | |||||
Non-cash investing and financing activities: | ||||||||
Benefit from 2018 Note Hedges | 548,001 | 0 | ||||||
Property and equipment included in accounts payable and accrued expenses | $ 25,018 | $ 9,321 | ||||||
|
Description of the Business |
9 Months Ended |
---|---|
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of the Business | Description of the Business |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation Effective January 1, 2018, we adopted the Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606)” as discussed further below in this Note 2. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with the new standard, including previously reported amounts, which are labeled "as adjusted" in these condensed consolidated financial statements and related notes. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to the current period presentation. The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared in accordance with the applicable rules and regulations of the Securities and Exchange Commission (the SEC) regarding interim financial reporting. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (GAAP) for complete financial statements due to the permitted exclusion of certain disclosures for interim reporting. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary under GAAP for fair statement of results for the interim periods presented have been included. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or for other interim periods or future years. The condensed consolidated balance sheet as of December 31, 2017 is derived from audited financial statements as adjusted to reflect the impact of the full retrospective adoption of Topic 606; however, it does not include all of the information and footnotes required by GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2017, which was filed with the SEC on February 28, 2018. Principles of Consolidation The condensed consolidated financial statements have been prepared in conformity with GAAP, and include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Such management estimates and assumptions include, but are not limited to, the stand-alone selling price (SSP) for each distinct performance obligation included in customer contracts with multiple performance obligations, the period of benefit for deferred commissions, the fair value of assets acquired and liabilities assumed for business combinations, stock-based compensation expenses, the assessment of the useful life and recoverability of our property and equipment, goodwill and identifiable intangible assets, and legal contingencies. Actual results could differ from those estimates. New Accounting Pronouncements Adopted in 2018 Fair Value Measurement In August 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement,” which modifies the disclosure requirements on fair value measurements. This new standard is effective for our interim and annual periods beginning January 1, 2020, and earlier adoption is permitted. We early adopted this new standard upon its issuance, and because it only relates to qualitative financial disclosures, it did not impact our previously reported financial statements for periods ended on or prior to December 31, 2017. Stock-based Compensation In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting,” which is intended to reduce cost and complexity and to improve financial reporting for nonemployee share-based payments. Currently, the accounting requirements for nonemployee and employee share-based payment transactions are significantly different. This standard expands the scope of Topic 718 to include share-based payments issued to nonemployees for goods or services, aligning the accounting for share-based payments to nonemployees and employees. This standard is effective for our fiscal year beginning January 1, 2019 and early adoption is permitted. We early adopted this new standard effective January 1, 2018, and the adoption of this standard did not have a material impact on our condensed consolidated financial statements. As this standard was adopted on a prospective basis as of January 1, 2018, the adoption of this standard did not impact our previously reported financial statements for periods ended on or prior to December 31, 2017. Income Taxes In February 2018, the FASB issued ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which provides entities the option to reclassify tax effects stranded in accumulated other comprehensive income as a result of the 2017 Tax Cuts and Jobs Act (the Tax Act) to retained earnings. This standard is effective for our fiscal year beginning January 1, 2019 and early adoption is permitted. We early adopted this new standard effective January 1, 2018, with an immaterial amount of cumulative effect adjustment recorded to our accumulated deficit as of January 1, 2018. As this standard was adopted on a modified prospective basis as of January 1, 2018, the adoption of this standard did not impact our previously reported financial statements for periods ended on or prior to December 31, 2017. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which allows us to record provisional amounts for the 2017 Tax Cuts and Jobs Act (the Tax Act) during a measurement period not to extend beyond one year of the enactment date, with further clarifications made recently with the issuance of ASU 2018-05. Through September 30, 2018, we did not have any significant adjustments to our provisional amounts. In light of the enactment of the Tax Act, we are assessing whether to change our indefinite reinvestment assertion, in which we consider earnings from our foreign operations to be indefinitely reinvested outside of the United States. Under guidance issued by the SEC, we are required to complete our assessment by the end of the measurement period described above. We will continue our analysis of these provisional amounts, which remain subject to change during the measurement period. We anticipate further guidance on accounting interpretations from the FASB and application of the law from the Department of Treasury. We expect to reach a final determination within the measurement period described above. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory,” which includes a revision in the accounting for the income tax consequences of intra-entity transfers of assets other than inventory to reduce the complexity in accounting standards. We adopted this new standard as of January 1, 2018 with an immaterial amount of cumulative effect adjustment recorded to our accumulated deficit as of January 1, 2018. As this standard was adopted on a modified prospective basis as of January 1, 2018, the adoption of this standard did not impact our previously reported financial statements for periods ended on or prior to December 31, 2017. Financial Instruments In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments, with further clarifications made more recently. This new standard requires equity securities to be measured at fair value with changes in fair value recognized through the statement of operations, which may result in greater variability in our net income (loss). We adopted these new standards as of January 1, 2018 with a cumulative-effect adjustment, net of tax of $7.2 million recorded to our accumulated deficit as of January 1, 2018. This adjustment relates to the unrealized gain on our marketable equity securities as of December 31, 2017, which was previously included in accumulated other comprehensive income (loss) on our condensed consolidated balance sheet. As part of the adoption, we elected to apply the measurement alternative for our non-marketable equity investments that do not have readily determinable fair values, measuring them at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The adoption of these standards did not result in an adjustment for our non-marketable equity investments as our measurement alternative election requires adjustments to be recorded only on a prospective basis. As these standards were adopted on a modified prospective basis as of January 1, 2018, the adoption of these standards did not impact our previously reported financial statements for periods ended on or prior to December 31, 2017. Revenue from Contracts with Customers In May 2014, the FASB issued Topic 606, which supersedes the prior revenue recognition standard (Topic 605). Under Topic 606, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to be entitled to in exchange for those goods or services. In addition, this standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Topic 606 also includes Subtopic 340-40, Other Assets and Deferred Costs—Contracts with Customers, which requires the deferral of incremental costs of obtaining a contract with a customer. The Topic 606 standard permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method) or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application (modified retrospective method). We adopted the requirements of Topic 606 as of January 1, 2018, utilizing a full retrospective method. The most significant impact of the standard relates to the timing of revenue recognition related to self-hosted offerings, in which customers deploy, or we grant customers the option to deploy without significant penalty, our software internally or contract with a third party to host the software, the accounting for incremental selling costs to obtain a contract, and the classification of proceeds for Knowledge and other user forums as a reduction in sales and marketing expenses instead of as professional services and other revenues. The adoption of Topic 606 resulted in changes to our accounting policies for revenue recognition, unbilled receivables, deferred commissions, deferred revenue and customer deposits as detailed below. Under Topic 606, for self-hosted offerings, the requirement to have vendor specific objective evidence (VSOE) for undelivered elements was eliminated. As a result, for all periods presented, we have recognized as subscription revenues a portion of the sales price upon delivery of the software, compared to the prior practice under Topic 605 of recognizing the entire sales price ratably over an estimated subscription period due to the lack of VSOE. To the extent the amounts recognized as subscription revenues have not been billed, the revenues are primarily recorded as “unbilled receivables.” In addition, refundable amounts associated with customer contracts are recorded as “customer deposits.” In addition, under Topic 606, for all periods presented, we have deferred all incremental selling costs (primarily commissions) to obtain customer contracts, including indirect costs that are not tied to a specific contract, for both self-hosted offerings and cloud-based subscription offerings. On initial contracts and contracts for increased purchases with existing customers (expansion contracts), these costs are primarily amortized over a period of benefit that we have determined to be five years. On renewal contracts, these costs are amortized over the renewal term. Additionally, for self-hosted offerings, consistent with the recognition of subscription revenue for self-hosted offerings as described above, a portion of the commission cost is expensed upfront when the self-hosted offering is made available. Our prior practice under Topic 605 was to defer only direct and incremental commission costs to obtain a contract and amortize those costs over the contract term, which is generally 12 to 36 months, for both self-hosted offerings and cloud-based subscription offerings. As part of our adoption of Topic 606, during the three and nine months ended September 30, 2018, we recorded a decrease in sales and marketing expenses and a corresponding increase in our deferred commissions asset of $7.4 million and $5.4 million, respectively. These adjustments reflect the correction of previously undercapitalized incremental fringe benefit costs associated with sales commissions that were paid since 2012. We concluded that these adjustments were not material to the current period or any previously reported periods presented, as adjusted for the full retrospective adoption of Topic 606. The direct effect on income taxes resulting from the full retrospective adoption of the above-mentioned changes to revenues and commission expenses resulted in a cumulative income tax expense of $23.3 million recorded in the prior periods through December 31, 2017. The indirect tax benefit of Topic 606 on income taxes associated with intercompany adjustments of $23.1 million, or $0.13 per basic and diluted share for the nine months ended September 30, 2018, was recorded in the first quarter of adoption during the three months ended March 31, 2018. The table below provides specified line items from our condensed consolidated balance sheet (i) as previously reported and (ii) as adjusted to reflect the impact of the full retrospective adoption of Topic 606 (in thousands):
The table below provides specified line items from our condensed consolidated statement of comprehensive loss (i) as previously reported and (ii) as adjusted to reflect the impact of the full retrospective adoption of Topic 606 (in thousands, except per share data):
The table below provides specified line items from our condensed consolidated statement of cash flows (i) as previously reported and (ii) as adjusted to reflect the impact of the full retrospective adoption of Topic 606 (in thousands):
Updated Significant Accounting Policies Revenue Recognition We report our revenues in two categories: (i) subscriptions and (ii) professional services and other. Revenues are recognized when control of these services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition through the following steps:
Subscription revenues Subscription revenues are primarily comprised of subscription fees that give customers access to the ordered subscription service, related support and updates, if any, to the subscribed service during the subscription term. We recognize subscription revenues ratably over the contract term beginning on the commencement date of each contract, which is the date we make our services available to our customers. Our contracts with customers typically include a fixed amount of consideration and are generally non-cancelable and without any refund-type provisions. We typically invoice our customers annually in advance for our subscription services upon execution of the initial contract or subsequent renewal, and our invoices are typically due within 30 days from the invoice date. Subscription revenues also include revenues from self-hosted offerings in which customers deploy, or we grant customers the option to deploy without significant penalty, our subscription service internally or contract with a third party to host the software. For these contracts, we account for the software element and the related support and updates separately as they are distinct performance obligations. Refer to the discussion below related to contracts with multiple performance obligations for further details. The transaction price is allocated to separate performance obligations on a relative SSP basis. Transaction price allocated to the software element is recognized upon delivery, which is when transfer of control of the software to the customer is complete. The transaction price allocated to the related support and updates are recognized ratably over the contract term. Professional services and other revenues Our professional services arrangements are primarily on a time-and-materials basis, and revenues on these arrangements are recognized as the services are delivered. We typically invoice our customers monthly in arrears for these professional services based on actual hours and expenses incurred, and our invoices are typically due within 30 days from the invoice date. Professional services revenues associated with fixed fee arrangements are recognized on a proportional performance basis. In instances where certain milestones are required to be met before revenues are recognized, we defer professional services revenues and the associated costs until milestone criteria have been met. Other revenues consist of fees from customer training delivered on-site or through publicly available classes. Contracts with multiple performance obligations We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. For these contracts, the transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine SSP by considering the historical selling price of these performance obligations in similar transactions as well as other factors, including, but not limited to, competitive pricing of similar products, other software vendor pricing, industry publications and current pricing practices. Unbilled Receivables Unbilled receivables, which is a contract asset, represent subscription revenues that are recognized upon delivery of the software prior to being invoiced. Unbilled receivables are primarily presented under prepaid expenses and other current assets on our condensed consolidated balance sheets. Deferred Commissions Deferred commissions are the incremental selling costs that are associated with acquiring customer contracts and consist primarily of sales commissions paid to our sales force and referral fees paid to independent third-parties. Capitalized sales commissions also include the associated payroll taxes and fringe benefit costs associated with payments to our sales employees to the extent they are incremental. On initial and expansion contracts, commissions and referral fees are primarily deferred and amortized over a period of benefit that we have determined to be five years. On renewal contracts, commissions are deferred and amortized over the average renewal term. Additionally, for self-hosted offerings, consistent with the recognition of subscription revenue for self-hosted offerings, a portion of the commission cost is expensed upfront when the self-hosted offering is made available. We determine the period of benefit by taking into consideration our customer contracts, our technology life cycle and other factors. We include amortization of deferred commissions in sales and marketing expense in our condensed consolidated statements of comprehensive income (loss). There was no impairment loss in relation to the incremental selling costs capitalized for all periods presented. Deferred revenue Deferred revenue, which is a contract liability, consists primarily of payments received in advance of revenue recognition from our contracts with customers and is recognized as the revenue recognition criteria are met. Once our services are available to customers, we record amounts due in accounts receivable and in deferred revenue. To the extent we bill customers in advance of the billing period commencement date, the accounts receivable and corresponding deferred revenue amounts are netted to zero on our condensed consolidated balance sheets, unless such amounts have been paid as of the balance sheet date. Customer deposits Customer deposits primarily relate to payments received from customers which could be refundable pursuant to the terms of the contract and are presented under “accrued expenses and other current liabilities” on our condensed consolidated balance sheets. Strategic investments Our strategic investments consist of debt and non-marketable equity investments in privately-held companies in which we do not have a controlling interest or significant influence. Debt investments in privately-held companies are classified as available-for-sale and are recorded at their estimated fair value with changes in fair value recorded through accumulated other comprehensive income (loss). We have elected to apply the measurement alternative for equity investments that do not have readily determinable fair values, measuring them at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. An impairment loss is recorded when event or circumstance indicates a decline in value has occurred. We include these strategic investments in “Other assets” on the consolidated balance sheets. New Accounting Pronouncements Pending Adoption Cloud computing arrangements implementation costs In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard requires capitalized costs to be amortized on a straight-line basis generally over the term of the arrangement, and the financial statement presentation for these capitalized costs would be the same as that of the fees related to the hosting arrangements. This new standard is effective for our interim and annual periods beginning January 1, 2020 and earlier adoption is permitted. This standard could be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are evaluating the timing and impact of our pending adoption of this standard on our consolidated financial statements. SEC disclosure update In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that have become redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The final rule is effective November 5, 2018. As permitted by the SEC, we will present this analysis beginning with our Quarterly Report on Form 10-Q for the three months ending March 31, 2019. Income taxes In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (GILTI) provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of subsidiary foreign corporations. We are currently evaluating the impact of the Tax Act and this guidance on our condensed consolidated financial statements and have not yet elected an accounting policy to either recognize deferred taxes for basis differences expected to reverse as GILTI or to record GILTI as period costs if and when incurred. Credit losses In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. This new standard is effective for our interim and annual periods beginning January 1, 2020. We are currently evaluating the impact of the adoption of this standard on our condensed consolidated financial statements. Leases |
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Debt Securities, Available-for-sale [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments Marketable Debt Securities The following is a summary of our available-for-sale investment securities, excluding marketable equity securities and those securities classified within cash and cash equivalents on the condensed consolidated balance sheets (in thousands):
As of September 30, 2018, the contractual maturities of our available-for-sale investment securities, excluding securities classified within cash and cash equivalents on the condensed consolidated balance sheets, did not exceed 36 months. The fair values of these securities, by remaining contractual maturity, are as follows (in thousands):
The following table shows the fair values and the gross unrealized losses of our available-for-sale investment securities, classified by the length of time that the securities have been in a continuous unrealized loss position, and aggregated by investment types, excluding those securities classified as cash and cash equivalents on the condensed consolidated balance sheets (in thousands):
As of September 30, 2018, we had a total of 384 available-for-sale securities, excluding those securities classified within cash and cash equivalents on the consolidated balance sheet in an unrealized loss position. There were no impairments considered “other-than-temporary” as it is more likely than not we will hold the securities until maturity or a recovery of the cost basis. Marketable Equity Securities As of December 31, 2017, we had marketable equity securities of $20.7 million. In May 2018, we sold these securities for total proceeds of $40.0 million. We recognized net gains of $19.3 million for the nine months ended September 30, 2018, resulting from our adoption of ASU 2016-01 as we began to record changes in stock price fluctuations of our marketable equity securities through statement of operations rather than in accumulated other comprehensive income (loss) on our condensed consolidated balance sheet. During the nine months ended September 30, 2017, prior to the adoption of ASU 2016-01, we recognized $7.9 million of unrealized gains on our marketable equity securities offset by $2.9 million of tax effect through accumulated other comprehensive income (loss) on our condensed consolidated balance sheet. Refer to Note 2 for further details on ASU 2016-01. Upon our sale of these securities, the previously unrealized gain became realized. As of September 30, 2018, we had no marketable equity securities on our condensed consolidated balance sheet. Strategic Investments As of September 30, 2018 and December 31, 2017, the total amount of equity investments in privately-held companies included in other assets on our condensed consolidated balance sheets was $13.3 million and $4.8 million, respectively. We have not recorded any adjustments resulting from observable price changes or impairment charges for any of our equity investments in privately-held companies. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis at September 30, 2018 (in thousands):
The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis at December 31, 2017 (in thousands):
We determine the fair value of our security holdings based on pricing from our service providers and market prices from industry-standard independent data providers. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs), such as yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures. |
Business Combinations |
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Sep. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations During the nine months ended September 30, 2018, we completed acquisitions of two privately-held companies, Parlo, Inc. and VendorHawk, Inc., for an aggregate of approximately $25.1 million in cash. In allocating the aggregate purchase price based on the estimated fair values, we recorded a total of $18.1 million of goodwill, $9.0 million of developed technology intangible assets (to be amortized over estimated useful lives of five years) and $2.2 million of deferred tax liabilities. Goodwill arising from these business combinations is not deductible for income tax purposes. During the nine months ended September 30, 2017, we completed acquisitions of three privately-held companies, Qlue, Inc., DxContinuum, Inc. and Digital Telepathy, Inc. (Telepathy), for an aggregate of approximately $26.6 million in cash. In allocating the aggregate purchase price based on the estimated fair values, we recorded $9.9 million of developed technology intangible assets (to be amortized over estimated useful lives of five years), $3.6 million of deferred tax liabilities and a total of $20.3 million of goodwill, of which $4.1 million is deductible for income tax purposes. The excess of purchase consideration over the fair value of net tangible and identifiable assets acquired was recorded as goodwill. We believe the goodwill balance associated with these business combinations represents the synergies expected from expanded market opportunities when integrating the acquired developed technologies with our offerings. |
Goodwill and Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill balances are presented below (in thousands):
Intangible assets consist of the following (in thousands):
Apart from the business combinations described in Note 5, we acquired $6.9 million and $6.2 million of intangible assets in patents during the nine months ended September 30, 2018 and 2017, respectively. The weighted-average useful life for the patents acquired during the nine months ended September 30, 2018 and 2017 was approximately eight years and ten years, respectively. Amortization expense for intangible assets for the three months ended September 30, 2018 and 2017 was approximately $6.4 million and $4.8 million, respectively, and for the nine months ended September 30, 2018 and 2017 was approximately $18.2 million and $14.3 million, respectively. The following table presents the estimated future amortization expense related to intangible assets held at September 30, 2018 (in thousands):
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Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and Equipment Property and equipment, net, consists of the following (in thousands):
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Derivative Contracts |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Derivative Contracts | Derivative Contracts We conduct business on a global basis in multiple foreign currencies, subjecting us to foreign currency risk. In order to manage certain exposures to currency fluctuations, we initiated a limited hedging program beginning in the three months ended March 31, 2018 by entering into foreign currency derivative contracts with maturities of 12 months or less to hedge a portion of our net outstanding monetary assets and liabilities. These derivative contracts consist of forward contracts entered into with various counterparties and are not designated as hedging instruments under applicable accounting guidance. As such, all changes in the fair value of these derivative contracts are recorded in Interest income and other income (expense), net on the condensed consolidated statements of comprehensive income (loss). These derivative contracts are intended to offset the foreign currency gains or losses associated with the underlying monetary assets and liabilities. Changes in the related derivative assets and liabilities balances are classified as operating activities in the condensed consolidated statement of cash flows. These derivative contracts expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the arrangement. We mitigate this credit risk by transacting with major financial institutions with high credit ratings and entering into master netting arrangements, which permit net settlement of transactions with the same counterparty. While the contract or notional amount is often used to express the volume of foreign currency derivative contracts, the amounts potentially subject to credit risk are generally limited to the amounts, if any, by which the counterparties’ obligations under the agreements exceed the obligations of the Company to the counterparties. We are not required to pledge, and are not entitled to receive, cash collateral related to these derivative instruments. We do not enter into derivative contracts for trading or speculative purposes. As of September 30, 2018, we had derivative contracts with total notional values of $794.1 million, which are not designated as hedge instruments. Our foreign currency contracts are classified within Level 2 because the valuation inputs are based on quoted prices and market observable data of similar instruments in active markets, such as currency spot and forward rates. The fair values of these outstanding derivative contracts as of September 30, 2018 were as follows (in thousands):
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Deferred Revenue and Performance Obligations |
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Revenue from Contract with Customer [Abstract] | |
Deferred Revenue and Performance Obligations | Deferred Revenue and Performance Obligations Revenues recognized during the nine months ended September 30, 2018 from amounts included in deferred revenue as of December 31, 2017 are $1.0 billion. Revenues recognized during the nine months ended September 30, 2018 from performance obligations satisfied or partially satisfied in previous periods were not material. Transaction Price Allocated to the Remaining Performance Obligations Transaction price allocated to remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and non-cancelable amounts that will be invoiced and recognized as revenues in future periods. We applied the practical expedient in accordance with Topic 606 to exclude amounts related to professional services contracts that are on a time-and-material basis, which typically have a remaining duration of one year or less. In addition, we elected to apply the practical expedient to not disclose the transaction price allocated to remaining performance obligations for all periods presented before January 1, 2018, the date of our initial adoption of Topic 606. |
Accrued Expenses and Other Current Liabilities |
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Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following (in thousands):
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Convertible Senior Notes |
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Convertible Notes Payable [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Senior Notes | Convertible Senior Notes In May and June 2017, we issued an aggregate of $782.5 million of 0% convertible senior notes (the 2022 Notes), which are due June 1, 2022 unless earlier converted or repurchased in accordance with their terms. In November 2013, we issued $575.0 million of 0% convertible senior notes (the 2018 Notes, and together with the 2022 Notes, the Notes), which are due November 1, 2018 unless earlier converted or repurchased in accordance with their terms. The Notes do not bear interest, and we cannot redeem the Notes prior to maturity. The Notes are unsecured obligations and do not contain any financial covenants or restrictions on the payments of dividends, the incurrence of indebtedness or the issuance or repurchase of securities by us or any of our subsidiaries. Upon conversion of the Notes, we may choose to pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock upon settlement. We currently intend to settle the principal amount of the Notes with cash.
Holders of the Notes may convert their Notes at their option at any time prior to the close of business on the business day immediately preceding February 1, 2022 and July 1, 2018, for the 2022 Notes and 2018 Notes, respectively (each, a Convertible Date), only under the following circumstances:
On or after the applicable Convertible Date, a holder may convert all or any portion of its Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date regardless of the foregoing conditions, and such conversions will settle upon the applicable maturity date. Upon settlement, we will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, pursuant to our election. The conversion price will be subject to adjustment in some events. Holders of the Notes who convert their Notes in connection with certain corporate events that constitute a “make-whole fundamental change” are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a corporate event that constitutes a “fundamental change,” holders of the Notes may require us to purchase with cash all or a portion of the Notes upon the occurrence of a fundamental change, at a purchase price equal to 100% of the principal amount of the respective Notes plus any accrued and unpaid special interest, if any. In accounting for the issuance of the Notes, we separated the Notes into liability and equity components. The carrying cost of the liability component was calculated by measuring the fair value of a similar liability that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the Notes. The difference between the principal amount of the Notes and the proceeds allocated to the liability component, or the debt discount, is amortized to interest expense using the effective interest method over the term of the respective Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the issuance of the Notes, we allocated the total amount incurred to the liability and equity components based on their relative fair values. Transaction costs attributable to the liability component are being amortized to interest expense over the respective terms of the Notes, and transaction costs attributable to the equity component were netted with the equity component of the Notes in stockholders’ equity. The Notes consisted of the following (in thousands):
The Conversion Condition for the 2022 Notes was met for the quarters ended June 30, 2018 and September 30, 2018. Therefore, our 2022 Notes became convertible at the holders’ option beginning on July 1, 2018 and continue to be convertible at the holders’ option through December 31, 2018. Through the filing date, we have not received any conversion requests for our 2022 Notes. The Conversion Condition for the 2018 Notes was met for the quarters ended June 30, 2017, September 30, 2017, December 31, 2017 and March 31, 2018. Therefore, the 2018 Notes became convertible at the holders’ option beginning on July 1, 2017 and continued to be convertible at the holders’ option through June 30, 2018. Any conversion requests received subsequent to June 30, 2018 were settled on the maturity date, which was November 1, 2018. During the nine months ended September 30, 2018, we paid cash to settle $413.2 million principal amount of the 2018 Notes and recorded a loss on early note conversions of $4.1 million. The loss on early note conversions for the three months ended September 30, 2018 was not material. As a result of the settlements, we also recorded a $6.4 million net reduction to additional paid-in capital, reflecting $554.4 million of fair value adjustments to the conversion option settled, offset by a $548.0 million benefit from the 2018 Note Hedges (as defined below). For statement of cash flow presentation, we bifurcated the $413.2 million paid during the nine months ended September 30, 2018 into two components: the portion of the repayment attributable to debt discount is classified as cash outflows from operating activities, and the portion of the repayment attributable to the principal is classified as cash outflows from financing activities. We settled the remaining principal amount of the 2018 Notes in cash for an aggregate of $161.8 million on the maturity date, which was November 1, 2018. Refer to Note 19 for further details. We consider the fair value of the Notes at September 30, 2018 to be a Level 2 measurement. The estimated fair values of the Notes at September 30, 2018 and December 31, 2017 based on the closing trading price per $100 of the Notes were as follows (in thousands):
As of September 30, 2018, the remaining life of the 2022 Notes and 2018 Notes are 44 months and one month, respectively. The following table sets forth total interest expense recognized related to the Notes (in thousands):
Note Hedges To minimize the impact of potential economic dilution upon conversion of the Notes, we entered into convertible note hedge transactions (the 2022 Note Hedge and 2018 Note Hedge, respectively, and collectively, the Note Hedges) with certain investment banks, with respect to our common stock concurrently with the issuance of the 2022 Notes and 2018 Notes.
The Note Hedges cover shares of our common stock at a strike price per share that corresponds to the initial conversion price of the respective Notes, subject to adjustment, and are exercisable upon conversion of the Notes. If exercised, we may elect to receive cash, shares of our common stock, or a combination of cash and shares. We have accounted for the aggregate amount of purchase price for the Note Hedges as a reduction to additional paid-in capital. The Note Hedges will expire upon the maturity of the Notes. The Note Hedges are intended to reduce the potential economic dilution upon conversion of the Notes in the event that the fair value per share of our common stock at the time of exercise is greater than the conversion price of the Notes. The Note Hedges are separate transactions and are not part of the terms of the Notes. Holders of the Notes will not have any rights with respect to the Note Hedges. The Note Hedges do not impact earnings per share, as they were entered into to offset any dilution from the Notes. During the nine months ended September 30, 2018, the Note Hedge counterparties paid $548.0 million in cash to holders of the 2018 Notes from the exercise of a portion of the 2018 Note Hedges. As of September 30, 2018, 2.2 million shares remain subject to the 2018 Note Hedge due to early conversions that have occurred through September 30, 2018. Warrants
Separately, we entered into warrant transactions with certain investment banks, whereby we sold warrants to acquire, subject to adjustment, the number of shares of our common stock shown in the table above (the 2022 Warrants and 2018 Warrants, respectively, and collectively, the Warrants). If the average market value per share of our common stock for the reporting period, as measured under the Warrants, exceeds the strike price of the respective Warrants, such Warrants would have a dilutive effect on our earnings per share to the extent we report net income. According to the terms of each of the Warrants, the Warrants will be automatically exercised over a 60 trading day period beginning on the first expiration date of the respective Warrants as set forth above. The Warrants are separate transactions and are not remeasured through earnings each reporting period. The Warrants are not part of the Notes or Note Hedges, and have been accounted for as part of additional paid-in capital. |
Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive (loss) income, net of tax, consist of the following (in thousands):
*As adjusted to reflect the impact of the full retrospective adoption of Topic 606. See Note 2 for further details. |
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Stockholders' Equity | Stockholders’ Equity Common Stock Under our restated certificate of incorporation, we were authorized to issue 600,000,000 shares of common stock as of September 30, 2018. Holders of our common stock are not entitled to receive dividends unless declared by our board of directors. As of September 30, 2018, we had 179,305,339 shares of common stock outstanding and had reserved shares of common stock for future issuance as follows:
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Equity Awards |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Awards | Equity Awards We currently have two equity incentive plans, our 2005 Stock Option Plan (the 2005 Plan) and our 2012 Equity Incentive Plan (the 2012 Plan). Our 2005 Plan was terminated in connection with our initial public offering in 2012 but continues to govern the terms of outstanding stock options that were granted prior to the termination of the 2005 Plan. We no longer grant equity awards pursuant to our 2005 Plan. Our 2012 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, RSUs, performance-based stock awards and other forms of equity compensation (collectively, equity awards). In addition, the 2012 Plan provides for the grant of performance cash awards. Incentive stock options may be granted only to employees. All other equity awards may be granted to employees, including officers, as well as directors and consultants. The share reserve may increase to the extent outstanding stock options under the 2005 Plan expire or terminate unexercised. The share reserve also automatically increases on January 1 of each year until January 1, 2022, by up to 5% of the total number of shares of common stock outstanding on December 31 of the preceding year as determined by our board of directors. On January 1, 2018, 8,713,793 shares of common stock were automatically added to the 2012 Plan pursuant to the provision described in the preceding sentence. Our 2012 ESPP authorizes the issuance of shares of common stock pursuant to purchase rights granted to our employees. The price at which common stock is purchased under the 2012 ESPP is equal to 85% of the fair market value of our common stock on the first or last day of the offering period, whichever is lower. Offering periods are six months long and begin on February 1 and August 1 of each year. The number of shares of common stock reserved for issuance automatically increases on January 1 of each year until January 1, 2022, by up to 1% of the total number of shares of common stock outstanding on December 31 of the preceding year as determined by our board of directors. On January 1, 2018, 1,742,758 shares of common stock were automatically added to the 2012 ESPP pursuant to the provision described in the preceding sentence. Stock Options A summary of the stock option activity for the nine months ended September 30, 2018 is as follows:
Aggregate intrinsic value represents the difference between the estimated fair value of our common stock and the exercise price of outstanding in-the-money options. The total fair value of stock options vested during the nine months ended September 30, 2018 was $10.2 million. As of September 30, 2018, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options was approximately $13.9 million. The weighted-average remaining vesting period of unvested stock options at September 30, 2018 was 2.55 years. RSUs A summary of RSU activity for the nine months ended September 30, 2018 is as follows:
RSUs granted to employees under the 2012 Plan generally vest over a four-year period. As of September 30, 2018, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested RSUs was approximately $914.3 million and the weighted-average remaining vesting period was 2.91 years. |
Net Income (Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Per Share | Net Income (Loss) Per Share Basic net income (loss) per share attributable to common stockholders is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period, adjusted for the effects of dilutive shares of common stock, which are comprised of outstanding stock options, RSUs, ESPP obligations, the Notes and the Warrants. Stock awards with performance conditions are included in dilutive shares to the extent the performance condition is met. The dilutive potential shares of common stock are computed using the treasury stock method or the as-if converted method, as applicable. The effects of outstanding stock options, RSUs, ESPP obligations, Notes and Warrants are excluded from the computation of diluted net income (loss) per share in periods in which the effect would be antidilutive. The following tables present the calculation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except share and per share data):
*As adjusted to reflect the impact of the full retrospective adoption of Topic 606. See Note 2 for further details. Potentially dilutive securities that are not included in the calculation of diluted net loss per share because doing so would be antidilutive are as follows:
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Income Taxes |
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Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We compute our provision for income taxes by applying the estimated annual effective tax rate to year-to-date loss from recurring operations and adjust the provision for discrete tax items recorded in the period. Our effective tax rate was (16)% and 18% for the three and nine months ended September 30, 2018, which was lower than the U.S. federal statutory tax rate of 21%. For the three months ended September 30, 2018, the lower tax rate was primarily attributable to excess tax benefits of stock-based compensation and loss from domestic operations. For the nine months ended September 30, 2018, the lower tax rate was primarily attributable to the one-time indirect effect of Topic 606 on income taxes associated with intercompany adjustments offset by our loss from operations. Our effective tax rate was (11)% and 1% for the three and nine months ended September 30, 2017, which was lower than the U.S. federal statutory tax rate of 34%. The lower tax rate was primarily attributable to our loss from operations, the foreign tax rate differential, a release of the valuation allowance in connection with acquisitions and excess tax benefits of stock-based compensation. We are subject to taxation in the United States and foreign jurisdictions. As of September 30, 2018, our tax years 2004 to 2017 remain subject to examination in most jurisdictions. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Operating Leases and Other Contractual Commitments For some of our offices and data centers, we have entered into non-cancelable operating lease agreements with various expiration dates. Future minimum payments under our non-cancelable operating leases and other contractual commitments outstanding as of September 30, 2018 are presented in the table below (in thousands):
In addition to the amounts above, the repayment of our 2022 Notes with an aggregate principal amount of $782.5 million is due on June 1, 2022. Refer to Note 11 for further information regarding our Notes. On November 1, 2018, we repaid the remaining 2018 Notes with an aggregate principal amount of $161.8 million. Refer to Note 19 for further details of the 2018 Notes repayment. In addition to the obligations in the table above, approximately $6.5 million of unrecognized tax benefits have been recorded as liabilities as of September 30, 2018. Legal Proceedings From time to time, we are party to litigation and other legal proceedings in the ordinary course of business. While the results of any litigation or other legal proceedings are uncertain, management does not believe the ultimate resolution of any pending legal matters is likely to have a material adverse effect on our financial position, results of operations or cash flows, except for those matters for which we have recorded a loss contingency. We accrue for loss contingencies when it is both probable that we will incur the loss and when we can reasonably estimate the amount of the loss or range of loss. |
Information about Geographic Areas and Products |
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Segments, Geographical Areas [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information about Geographic Areas and Products | Information about Geographic Areas and Products Revenues by geographic area, based on the location of our users, were as follows for the periods presented (in thousands):
*As adjusted to reflect the impact of the full retrospective adoption of Topic 606. See Note 2 for further details. Property and equipment, net by geographic area were as follows (in thousands):
Subscription revenues consist of the following (in thousands):
*As adjusted to reflect the impact of the full retrospective adoption of Topic 606. See Note 2 for further details. |
Subsequent Events |
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Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In October 2018, we paid approximately $12.5 million in cash to acquire certain engineering talent, intangible assets, and a nonexclusive license from two privately-held companies. Both transactions will be accounted for as business combinations. Our accounting and analyses of these transactions are pending completion. On November 1, 2018, the 2018 Notes matured and the remaining $161.8 million in principal amount of the 2018 Notes was settled in cash. The conversion value over the principal amount was satisfied with shares of our common stock, which was entirely offset by shares of our common stock delivered to us by the Note Hedge counterparties under the 2018 Note Hedge, and cash in lieu of fractional shares. The 2018 Notes and 2018 Note Hedge are no longer outstanding, and the 2018 Warrants remain outstanding as of the date of this filing. Based on the stock price as of September 30, 2018, the number of shares to be issued upon exercise of the 2018 Warrants would be approximately 3.5 million. |
Summary of Significant Accounting Policies (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||
Basis of Presentation | Effective January 1, 2018, we adopted the Accounting Standards Update (ASU) 2014-09, “Revenue from Contracts with Customers (Topic 606)” as discussed further below in this Note 2. All amounts and disclosures set forth in this Form 10-Q have been updated to comply with the new standard, including previously reported amounts, which are labeled "as adjusted" in these condensed consolidated financial statements and related notes. Certain prior period amounts reported in our condensed consolidated financial statements and notes thereto have been reclassified to conform to the current period presentation. |
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Principles of Consolidation | The condensed consolidated financial statements have been prepared in conformity with GAAP, and include our accounts and the accounts of our wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. | ||||||||||||||||||||
Use of Estimates | The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as reported amounts of revenues and expenses during the reporting period. Such management estimates and assumptions include, but are not limited to, the stand-alone selling price (SSP) for each distinct performance obligation included in customer contracts with multiple performance obligations, the period of benefit for deferred commissions, the fair value of assets acquired and liabilities assumed for business combinations, stock-based compensation expenses, the assessment of the useful life and recoverability of our property and equipment, goodwill and identifiable intangible assets, and legal contingencies. Actual results could differ from those estimates. |
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New Accounting Pronouncements Adopted in 2018 and New Accounting Pronouncements Pending Adoption | New Accounting Pronouncements Adopted in 2018 Fair Value Measurement In August 2018, the Financial Accounting Standards Board (FASB) issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement,” which modifies the disclosure requirements on fair value measurements. This new standard is effective for our interim and annual periods beginning January 1, 2020, and earlier adoption is permitted. We early adopted this new standard upon its issuance, and because it only relates to qualitative financial disclosures, it did not impact our previously reported financial statements for periods ended on or prior to December 31, 2017. Stock-based Compensation In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting,” which is intended to reduce cost and complexity and to improve financial reporting for nonemployee share-based payments. Currently, the accounting requirements for nonemployee and employee share-based payment transactions are significantly different. This standard expands the scope of Topic 718 to include share-based payments issued to nonemployees for goods or services, aligning the accounting for share-based payments to nonemployees and employees. This standard is effective for our fiscal year beginning January 1, 2019 and early adoption is permitted. We early adopted this new standard effective January 1, 2018, and the adoption of this standard did not have a material impact on our condensed consolidated financial statements. As this standard was adopted on a prospective basis as of January 1, 2018, the adoption of this standard did not impact our previously reported financial statements for periods ended on or prior to December 31, 2017. Income Taxes In February 2018, the FASB issued ASU 2018-02, “Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which provides entities the option to reclassify tax effects stranded in accumulated other comprehensive income as a result of the 2017 Tax Cuts and Jobs Act (the Tax Act) to retained earnings. This standard is effective for our fiscal year beginning January 1, 2019 and early adoption is permitted. We early adopted this new standard effective January 1, 2018, with an immaterial amount of cumulative effect adjustment recorded to our accumulated deficit as of January 1, 2018. As this standard was adopted on a modified prospective basis as of January 1, 2018, the adoption of this standard did not impact our previously reported financial statements for periods ended on or prior to December 31, 2017. In December 2017, the SEC staff issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (SAB 118), which allows us to record provisional amounts for the 2017 Tax Cuts and Jobs Act (the Tax Act) during a measurement period not to extend beyond one year of the enactment date, with further clarifications made recently with the issuance of ASU 2018-05. Through September 30, 2018, we did not have any significant adjustments to our provisional amounts. In light of the enactment of the Tax Act, we are assessing whether to change our indefinite reinvestment assertion, in which we consider earnings from our foreign operations to be indefinitely reinvested outside of the United States. Under guidance issued by the SEC, we are required to complete our assessment by the end of the measurement period described above. We will continue our analysis of these provisional amounts, which remain subject to change during the measurement period. We anticipate further guidance on accounting interpretations from the FASB and application of the law from the Department of Treasury. We expect to reach a final determination within the measurement period described above. In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory,” which includes a revision in the accounting for the income tax consequences of intra-entity transfers of assets other than inventory to reduce the complexity in accounting standards. We adopted this new standard as of January 1, 2018 with an immaterial amount of cumulative effect adjustment recorded to our accumulated deficit as of January 1, 2018. As this standard was adopted on a modified prospective basis as of January 1, 2018, the adoption of this standard did not impact our previously reported financial statements for periods ended on or prior to December 31, 2017. Financial Instruments In January 2016, the FASB issued ASU 2016-01, “Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments, with further clarifications made more recently. This new standard requires equity securities to be measured at fair value with changes in fair value recognized through the statement of operations, which may result in greater variability in our net income (loss). We adopted these new standards as of January 1, 2018 with a cumulative-effect adjustment, net of tax of $7.2 million recorded to our accumulated deficit as of January 1, 2018. This adjustment relates to the unrealized gain on our marketable equity securities as of December 31, 2017, which was previously included in accumulated other comprehensive income (loss) on our condensed consolidated balance sheet. As part of the adoption, we elected to apply the measurement alternative for our non-marketable equity investments that do not have readily determinable fair values, measuring them at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The adoption of these standards did not result in an adjustment for our non-marketable equity investments as our measurement alternative election requires adjustments to be recorded only on a prospective basis. As these standards were adopted on a modified prospective basis as of January 1, 2018, the adoption of these standards did not impact our previously reported financial statements for periods ended on or prior to December 31, 2017. Revenue from Contracts with Customers In May 2014, the FASB issued Topic 606, which supersedes the prior revenue recognition standard (Topic 605). Under Topic 606, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to be entitled to in exchange for those goods or services. In addition, this standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Topic 606 also includes Subtopic 340-40, Other Assets and Deferred Costs—Contracts with Customers, which requires the deferral of incremental costs of obtaining a contract with a customer. The Topic 606 standard permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method) or retrospectively with the cumulative effect of initially applying the standard recognized at the date of initial application (modified retrospective method). We adopted the requirements of Topic 606 as of January 1, 2018, utilizing a full retrospective method. The most significant impact of the standard relates to the timing of revenue recognition related to self-hosted offerings, in which customers deploy, or we grant customers the option to deploy without significant penalty, our software internally or contract with a third party to host the software, the accounting for incremental selling costs to obtain a contract, and the classification of proceeds for Knowledge and other user forums as a reduction in sales and marketing expenses instead of as professional services and other revenues. The adoption of Topic 606 resulted in changes to our accounting policies for revenue recognition, unbilled receivables, deferred commissions, deferred revenue and customer deposits as detailed below. Under Topic 606, for self-hosted offerings, the requirement to have vendor specific objective evidence (VSOE) for undelivered elements was eliminated. As a result, for all periods presented, we have recognized as subscription revenues a portion of the sales price upon delivery of the software, compared to the prior practice under Topic 605 of recognizing the entire sales price ratably over an estimated subscription period due to the lack of VSOE. To the extent the amounts recognized as subscription revenues have not been billed, the revenues are primarily recorded as “unbilled receivables.” In addition, refundable amounts associated with customer contracts are recorded as “customer deposits.” In addition, under Topic 606, for all periods presented, we have deferred all incremental selling costs (primarily commissions) to obtain customer contracts, including indirect costs that are not tied to a specific contract, for both self-hosted offerings and cloud-based subscription offerings. On initial contracts and contracts for increased purchases with existing customers (expansion contracts), these costs are primarily amortized over a period of benefit that we have determined to be five years. On renewal contracts, these costs are amortized over the renewal term. Additionally, for self-hosted offerings, consistent with the recognition of subscription revenue for self-hosted offerings as described above, a portion of the commission cost is expensed upfront when the self-hosted offering is made available. Our prior practice under Topic 605 was to defer only direct and incremental commission costs to obtain a contract and amortize those costs over the contract term, which is generally 12 to 36 months, for both self-hosted offerings and cloud-based subscription offerings. As part of our adoption of Topic 606, during the three and nine months ended September 30, 2018, we recorded a decrease in sales and marketing expenses and a corresponding increase in our deferred commissions asset of $7.4 million and $5.4 million, respectively. These adjustments reflect the correction of previously undercapitalized incremental fringe benefit costs associated with sales commissions that were paid since 2012. We concluded that these adjustments were not material to the current period or any previously reported periods presented, as adjusted for the full retrospective adoption of Topic 606. The direct effect on income taxes resulting from the full retrospective adoption of the above-mentioned changes to revenues and commission expenses resulted in a cumulative income tax expense of $23.3 million recorded in the prior periods through December 31, 2017. The indirect tax benefit of Topic 606 on income taxes associated with intercompany adjustments of $23.1 million, or $0.13 per basic and diluted share for the nine months ended September 30, 2018, was recorded in the first quarter of adoption during the three months ended March 31, 2018. New Accounting Pronouncements Pending Adoption Cloud computing arrangements implementation costs In August 2018, the FASB issued ASU 2018-15, “Intangibles—Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard requires capitalized costs to be amortized on a straight-line basis generally over the term of the arrangement, and the financial statement presentation for these capitalized costs would be the same as that of the fees related to the hosting arrangements. This new standard is effective for our interim and annual periods beginning January 1, 2020 and earlier adoption is permitted. This standard could be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are evaluating the timing and impact of our pending adoption of this standard on our consolidated financial statements. SEC disclosure update In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification, amending certain disclosure requirements that have become redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of stockholders' equity for interim financial statements. Under the amendments, an analysis of changes in each caption of stockholders' equity presented in the balance sheet must be provided in a note or separate statement. The analysis should present a reconciliation of the beginning balance to the ending balance of each period for which a statement of comprehensive income is required to be filed. The final rule is effective November 5, 2018. As permitted by the SEC, we will present this analysis beginning with our Quarterly Report on Form 10-Q for the three months ending March 31, 2019. Income taxes In January 2018, the FASB released guidance on the accounting for tax on the global intangible low-taxed income (GILTI) provisions of the Tax Act. The GILTI provisions impose a tax on foreign income in excess of a deemed return on tangible assets of subsidiary foreign corporations. We are currently evaluating the impact of the Tax Act and this guidance on our condensed consolidated financial statements and have not yet elected an accounting policy to either recognize deferred taxes for basis differences expected to reverse as GILTI or to record GILTI as period costs if and when incurred. Credit losses In June 2016, the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires a financial asset measured at amortized cost basis to be presented at the net amount expected to be collected. Credit losses relating to available-for-sale debt securities should be recorded through an allowance for credit losses. This new standard is effective for our interim and annual periods beginning January 1, 2020. We are currently evaluating the impact of the adoption of this standard on our condensed consolidated financial statements. Leases |
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Revenue Recognition | Revenue Recognition We report our revenues in two categories: (i) subscriptions and (ii) professional services and other. Revenues are recognized when control of these services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We determine revenue recognition through the following steps:
Subscription revenues Subscription revenues are primarily comprised of subscription fees that give customers access to the ordered subscription service, related support and updates, if any, to the subscribed service during the subscription term. We recognize subscription revenues ratably over the contract term beginning on the commencement date of each contract, which is the date we make our services available to our customers. Our contracts with customers typically include a fixed amount of consideration and are generally non-cancelable and without any refund-type provisions. We typically invoice our customers annually in advance for our subscription services upon execution of the initial contract or subsequent renewal, and our invoices are typically due within 30 days from the invoice date. Subscription revenues also include revenues from self-hosted offerings in which customers deploy, or we grant customers the option to deploy without significant penalty, our subscription service internally or contract with a third party to host the software. For these contracts, we account for the software element and the related support and updates separately as they are distinct performance obligations. Refer to the discussion below related to contracts with multiple performance obligations for further details. The transaction price is allocated to separate performance obligations on a relative SSP basis. Transaction price allocated to the software element is recognized upon delivery, which is when transfer of control of the software to the customer is complete. The transaction price allocated to the related support and updates are recognized ratably over the contract term. Professional services and other revenues Our professional services arrangements are primarily on a time-and-materials basis, and revenues on these arrangements are recognized as the services are delivered. We typically invoice our customers monthly in arrears for these professional services based on actual hours and expenses incurred, and our invoices are typically due within 30 days from the invoice date. Professional services revenues associated with fixed fee arrangements are recognized on a proportional performance basis. In instances where certain milestones are required to be met before revenues are recognized, we defer professional services revenues and the associated costs until milestone criteria have been met. Other revenues consist of fees from customer training delivered on-site or through publicly available classes. Contracts with multiple performance obligations We enter into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. For these contracts, the transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine SSP by considering the historical selling price of these performance obligations in similar transactions as well as other factors, including, but not limited to, competitive pricing of similar products, other software vendor pricing, industry publications and current pricing practices. Unbilled Receivables Unbilled receivables, which is a contract asset, represent subscription revenues that are recognized upon delivery of the software prior to being invoiced. Unbilled receivables are primarily presented under prepaid expenses and other current assets on our condensed consolidated balance sheets. Deferred Commissions Deferred commissions are the incremental selling costs that are associated with acquiring customer contracts and consist primarily of sales commissions paid to our sales force and referral fees paid to independent third-parties. Capitalized sales commissions also include the associated payroll taxes and fringe benefit costs associated with payments to our sales employees to the extent they are incremental. On initial and expansion contracts, commissions and referral fees are primarily deferred and amortized over a period of benefit that we have determined to be five years. On renewal contracts, commissions are deferred and amortized over the average renewal term. Additionally, for self-hosted offerings, consistent with the recognition of subscription revenue for self-hosted offerings, a portion of the commission cost is expensed upfront when the self-hosted offering is made available. We determine the period of benefit by taking into consideration our customer contracts, our technology life cycle and other factors. We include amortization of deferred commissions in sales and marketing expense in our condensed consolidated statements of comprehensive income (loss). There was no impairment loss in relation to the incremental selling costs capitalized for all periods presented. Deferred revenue Deferred revenue, which is a contract liability, consists primarily of payments received in advance of revenue recognition from our contracts with customers and is recognized as the revenue recognition criteria are met. Once our services are available to customers, we record amounts due in accounts receivable and in deferred revenue. To the extent we bill customers in advance of the billing period commencement date, the accounts receivable and corresponding deferred revenue amounts are netted to zero on our condensed consolidated balance sheets, unless such amounts have been paid as of the balance sheet date. Customer deposits Customer deposits primarily relate to payments received from customers which could be refundable pursuant to the terms of the contract and are presented under “accrued expenses and other current liabilities” on our condensed consolidated balance sheets. |
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Strategic Investments | Our strategic investments consist of debt and non-marketable equity investments in privately-held companies in which we do not have a controlling interest or significant influence. Debt investments in privately-held companies are classified as available-for-sale and are recorded at their estimated fair value with changes in fair value recorded through accumulated other comprehensive income (loss). We have elected to apply the measurement alternative for equity investments that do not have readily determinable fair values, measuring them at cost, less any impairment, plus or minus adjustments resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. An impairment loss is recorded when event or circumstance indicates a decline in value has occurred. We include these strategic investments in “Other assets” on the consolidated balance sheets.These investments are recorded at fair value using significant unobservable inputs or data in an inactive market, and the valuation requires our judgment due to the absence of quoted prices in active markets and inherent lack of liquidity and are categorized accordingly as Level 3 in the fair value hierarchy. There were no significant changes in unrealized gains and losses recognized in other comprehensive income (loss) for these investments. | ||||||||||||||||||||
Fair Value Measurements | We determine the fair value of our security holdings based on pricing from our service providers and market prices from industry-standard independent data providers. Such market prices may be quoted prices in active markets for identical assets (Level 1 inputs) or pricing determined using inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs), such as yield curve, volatility factors, credit spreads, default rates, loss severity, current market and contractual prices for the underlying instruments or debt, broker and dealer quotes, as well as other relevant economic measures. | ||||||||||||||||||||
Legal Proceedings | From time to time, we are party to litigation and other legal proceedings in the ordinary course of business. While the results of any litigation or other legal proceedings are uncertain, management does not believe the ultimate resolution of any pending legal matters is likely to have a material adverse effect on our financial position, results of operations or cash flows, except for those matters for which we have recorded a loss contingency. We accrue for loss contingencies when it is both probable that we will incur the loss and when we can reasonably estimate the amount of the loss or range of loss. Generally, our subscription agreements require us to defend our customers for third-party intellectual property infringement and other claims. Any adverse determination related to intellectual property claims or other litigation could prevent us from offering our services and adversely affect our financial condition and results of operations. |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The table below provides specified line items from our condensed consolidated balance sheet (i) as previously reported and (ii) as adjusted to reflect the impact of the full retrospective adoption of Topic 606 (in thousands):
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Investments (Tables) |
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Debt Securities, Available-for-sale [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Marketable Debt Securities | The following is a summary of our available-for-sale investment securities, excluding marketable equity securities and those securities classified within cash and cash equivalents on the condensed consolidated balance sheets (in thousands):
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Investments Classified by Contractual Maturity Date | The fair values of these securities, by remaining contractual maturity, are as follows (in thousands):
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Fair Values and Gross Unrealized Losses of Available-for-Sale Securities Aggregated by Investment Category | The following table shows the fair values and the gross unrealized losses of our available-for-sale investment securities, classified by the length of time that the securities have been in a continuous unrealized loss position, and aggregated by investment types, excluding those securities classified as cash and cash equivalents on the condensed consolidated balance sheets (in thousands):
|
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Measured at Fair Value on Recurring Basis | The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis at September 30, 2018 (in thousands):
The following table presents our fair value hierarchy for our assets measured at fair value on a recurring basis at December 31, 2017 (in thousands):
|
Goodwill and Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | Goodwill balances are presented below (in thousands):
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Schedule of Intangible Assets | Intangible assets consist of the following (in thousands):
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Schedule of Estimated Future Amortization Expense Related to Intangible Assets | The following table presents the estimated future amortization expense related to intangible assets held at September 30, 2018 (in thousands):
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Property and Equipment (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Property and Equipment, Net | Property and equipment, net, consists of the following (in thousands):
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Derivative Contracts (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Values of Outstanding Derivative Contracts | The fair values of these outstanding derivative contracts as of September 30, 2018 were as follows (in thousands):
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Accrued Expenses and Other Current Liabilities (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure Summary Of Accrued Expenses And Other Current Liabilities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following (in thousands):
|
Convertible Senior Notes (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Convertible Notes Payable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Convertible Senior Notes | The Notes consisted of the following (in thousands):
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Schedule of Estimated Fair Values of Convertible Senior Notes | The estimated fair values of the Notes at September 30, 2018 and December 31, 2017 based on the closing trading price per $100 of the Notes were as follows (in thousands):
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Schedule of Interest Expense Related to Convertible Senior Notes | The following table sets forth total interest expense recognized related to the Notes (in thousands):
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Schedule of Note Hedges |
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Schedule of Warrants |
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Accumulated Other Comprehensive Income (Loss) (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive (Loss) Income, Net of Tax | The components of accumulated other comprehensive (loss) income, net of tax, consist of the following (in thousands):
|
Stockholders' Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||
Schedule of Common Stock Outstanding and Reserved Shares of Common Stock for Future Issuance | As of September 30, 2018, we had 179,305,339 shares of common stock outstanding and had reserved shares of common stock for future issuance as follows:
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Equity Awards (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Activity | A summary of the stock option activity for the nine months ended September 30, 2018 is as follows:
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Schedule of Restricted Stock Unit Activity | A summary of RSU activity for the nine months ended September 30, 2018 is as follows:
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Net Income (Loss) Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Basic and Diluted Net Loss Per Share | The following tables present the calculation of basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except share and per share data):
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Schedule of Potentially Dilutive Securities | Potentially dilutive securities that are not included in the calculation of diluted net loss per share because doing so would be antidilutive are as follows:
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Commitments and Contingencies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Payments | Future minimum payments under our non-cancelable operating leases and other contractual commitments outstanding as of September 30, 2018 are presented in the table below (in thousands):
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Information about Geographic Areas and Products (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segments, Geographical Areas [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenues and Property and Equipment, net by Geographic Area | Revenues by geographic area, based on the location of our users, were as follows for the periods presented (in thousands):
*As adjusted to reflect the impact of the full retrospective adoption of Topic 606. See Note 2 for further details. Property and equipment, net by geographic area were as follows (in thousands):
(3) Property and equipment, net attributed to the United States were approximately 86% and 89% of property and equipment, net attributable to North America as of September 30, 2018 and December 31, 2017, respectively.
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Schedule of Subscription Revenue | Subscription revenues consist of the following (in thousands):
*As adjusted to reflect the impact of the full retrospective adoption of Topic 606. See Note 2 for further details. |
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jan. 01, 2018 |
Sep. 30, 2018 |
Mar. 31, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in sales and marketing expenses | [1] | $ (289,323,000) | $ (217,866,000) | [2] | $ (883,893,000) | $ (643,998,000) | [2] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized contract cost, amortization period | 5 years | 5 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | $ (1,175,000) | $ 2,285,000 | [2] | $ (7,260,000) | $ (754,000) | [2] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share, basic and diluted (in dollars per share) | $ (0.13) | $ (0.58) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capitalized contract cost, impairment loss | 0 | $ 0 | 0 | $ 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating lease commitments (in excess of) | 800,000,000 | $ 800,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract term | 12 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract term | 36 months | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Standards Update 2014-09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | $ 23,100,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share, basic and diluted (in dollars per share) | $ 0.13 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | $ 23,300,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Standards Update 2016-01 | Retained Earnings | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cumulative-effect adjustment | $ 7,200,000 | 7,200,000 | $ 7,200,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restatement Adjustment | Accounting Standards Update 2014-09 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in sales and marketing expenses | $ 7,400,000 | $ 5,400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Summary of Significant Accounting Policies - Impact on Balance Sheets (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Assets | |||||
Accounts receivable, net | $ 424,698 | $ 437,051 | [1] | ||
Current portion of deferred commissions | 126,185 | 109,643 | [1] | ||
Prepaid expenses and other current assets | 115,262 | 95,959 | [1] | ||
Deferred commissions, less current portion | 247,681 | 224,252 | [1] | ||
Other assets | 59,505 | 51,832 | [1] | ||
Liabilities | |||||
Accrued expenses and other current liabilities | 251,545 | 253,257 | [1] | ||
Current portion of deferred revenue | 1,363,217 | 1,210,695 | [1] | ||
Deferred revenue, less current portion | 41,244 | 36,120 | [1] | ||
Other long-term liabilities | 47,419 | 65,884 | [1] | ||
Stockholders’ equity: | |||||
Accumulated other comprehensive (loss) income | (1,418) | 5,767 | [1] | ||
Accumulated deficit | $ (985,795) | (958,564) | [1] | ||
As Previously Reported | |||||
Assets | |||||
Accounts receivable, net | 434,895 | ||||
Current portion of deferred commissions | 118,690 | ||||
Prepaid expenses and other current assets | 77,681 | ||||
Deferred commissions, less current portion | 85,530 | ||||
Other assets | 49,600 | ||||
Liabilities | |||||
Accrued expenses and other current liabilities | 244,605 | ||||
Current portion of deferred revenue | 1,280,499 | ||||
Deferred revenue, less current portion | 39,884 | ||||
Other long-term liabilities | 43,239 | ||||
Stockholders’ equity: | |||||
Accumulated other comprehensive (loss) income | (889) | ||||
Accumulated deficit | $ (1,146,520) | ||||
|
Summary of Significant Accounting Policies - Impact on Statements of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
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Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ 673,097 | $ 492,372 | [1] | $ 1,893,375 | $ 1,369,401 | [1] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of revenues | [2] | 157,858 | 127,486 | [1] | 454,496 | 365,698 | [1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 515,239 | 364,886 | [1] | 1,438,879 | 1,003,703 | [1] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and marketing | [2] | 289,323 | 217,866 | [1] | 883,893 | 643,998 | [1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | [2] | 505,671 | 368,796 | [1] | 1,481,583 | 1,067,199 | [1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from operations | 9,568 | (3,910) | [1] | (42,704) | (63,496) | [1] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income and other income (expense), net | 8,895 | 579 | [1] | 45,520 | (177) | [1] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 7,230 | (19,897) | [1] | (40,979) | (100,254) | [1] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | (1,175) | 2,285 | [1] | (7,260) | (754) | [1] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 8,405 | $ (22,182) | [1] | (33,719) | $ (99,500) | [1] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss per share - basic and diluted (in dollars per share) | $ (0.13) | $ (0.58) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average shares used to compute net loss per share - basic and diluted (in shares) | 171,883,190 | 170,359,717 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Subscription | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 626,567 | $ 449,506 | [1] | 1,755,174 | $ 1,239,762 | [1] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of revenues | [2] | 106,821 | 81,878 | [1] | 303,918 | 228,046 | [1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Professional services and other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 46,530 | 42,866 | [1] | 138,201 | 129,639 | [1] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of revenues | [2] | $ 51,037 | 45,608 | [1] | $ 150,578 | 137,652 | [1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Previously Reported | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 498,170 | 1,386,656 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of revenues | 127,280 | 365,412 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 370,890 | 1,021,244 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and marketing | 227,015 | 686,325 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 377,945 | 1,109,526 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) from operations | (7,055) | (88,282) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income and other income (expense), net | 853 | 739 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (22,768) | (124,124) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for (benefit from) income taxes | 1,420 | (2,801) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ (24,188) | $ (121,323) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss per share - basic and diluted (in dollars per share) | $ (0.14) | $ (0.71) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average shares used to compute net loss per share - basic and diluted (in shares) | 171,883,190 | 170,359,717 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Previously Reported | Subscription | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | $ 455,421 | $ 1,242,563 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As Previously Reported | Professional services and other | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 42,749 | 144,093 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of revenues | $ 45,402 | $ 137,366 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Summary of Significant Accounting Policies - Impact on Cash Flows (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|||||||
Cash flows from operating activities: | ||||||||||
Net loss | $ 8,405 | $ (22,182) | [1] | $ (33,719) | $ (99,500) | [1] | ||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||
Amortization of deferred commissions | 107,367 | 68,154 | [1] | |||||||
Stock-based compensation | 401,309 | 288,377 | [1] | |||||||
Changes in operating assets and liabilities, net of effect of business combinations: | ||||||||||
Accounts receivable | 7,454 | 45,879 | [1] | |||||||
Deferred commissions | (152,521) | (114,514) | [1] | |||||||
Prepaid expenses and other assets | 1,519 | (17,393) | [1] | |||||||
Accounts payable | 5,058 | (11,088) | [1] | |||||||
Deferred revenue | 174,058 | 188,291 | [1] | |||||||
Accrued expenses and other liabilities | 9,350 | (829) | [1] | |||||||
Net cash provided by operating activities | 521,477 | 458,157 | [1] | |||||||
Foreign currency effect on cash, cash equivalents and restricted cash | [2] | $ (9,593) | 25,765 | [1] | ||||||
As Previously Reported | ||||||||||
Cash flows from operating activities: | ||||||||||
Net loss | $ (24,188) | (121,323) | ||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||||||||||
Amortization of deferred commissions | 80,251 | |||||||||
Changes in operating assets and liabilities, net of effect of business combinations: | ||||||||||
Accounts receivable | 42,341 | |||||||||
Deferred commissions | (102,348) | |||||||||
Prepaid expenses and other assets | (26,866) | |||||||||
Accounts payable | (11,088) | |||||||||
Deferred revenue | 193,594 | |||||||||
Accrued expenses and other liabilities | 4,247 | |||||||||
Net cash provided by operating activities | 458,039 | |||||||||
Foreign currency effect on cash, cash equivalents and restricted cash | $ 25,883 | |||||||||
|
Investments - Summary of Investments (Detail) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, amortized cost | $ 1,383,516 | $ 1,427,228 |
Available-for-sale securities, gross unrealized gains | 50 | 27 |
Available-for-sale securities, gross unrealized losses | (3,594) | (3,727) |
Available-for-sale securities, estimated fair value | 1,379,972 | 1,423,528 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, amortized cost | 196,207 | 258,348 |
Available-for-sale securities, gross unrealized gains | 0 | 1 |
Available-for-sale securities, gross unrealized losses | 0 | (5) |
Available-for-sale securities, estimated fair value | 196,207 | 258,344 |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, amortized cost | 1,012,972 | 1,006,302 |
Available-for-sale securities, gross unrealized gains | 49 | 26 |
Available-for-sale securities, gross unrealized losses | (3,072) | (3,084) |
Available-for-sale securities, estimated fair value | 1,009,949 | 1,003,244 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, amortized cost | 59,387 | 33,084 |
Available-for-sale securities, gross unrealized gains | 1 | 0 |
Available-for-sale securities, gross unrealized losses | 0 | 0 |
Available-for-sale securities, estimated fair value | 59,388 | 33,084 |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale securities, amortized cost | 114,950 | 129,494 |
Available-for-sale securities, gross unrealized gains | 0 | 0 |
Available-for-sale securities, gross unrealized losses | (522) | (638) |
Available-for-sale securities, estimated fair value | $ 114,428 | $ 128,856 |
Investments - Maturities of available-for-sale investments (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Securities, Available-for-sale [Abstract] | ||
Due within 1 year | $ 922,411 | |
Due in 1 year through 5 years | 457,561 | |
Total | $ 1,379,972 | $ 1,423,528 |
Investments - Fair Values and Gross Unrealized Losses of Available-for-Sale Securities Aggregated by Investment Category (Detail) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Debt Securities, Available-for-sale [Line Items] | ||
Continuous unrealized loss position, less than 12 months, fair value | $ 761,999 | $ 940,223 |
Continuous unrealized loss position, less than 12 months, gross unrealized losses | (1,960) | (3,301) |
Continuous unrealized loss position, 12 months or greater, fair value | 290,574 | 164,429 |
Continuous unrealized loss position, 12 months or greater, gross unrealized loss | (1,634) | (426) |
Continuous unrealized loss position, fair value | 1,052,573 | 1,104,652 |
Continuous unrealized loss position, gross unrealized losses | (3,594) | (3,727) |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous unrealized loss position, less than 12 months, fair value | 14,992 | 14,809 |
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 0 | (5) |
Continuous unrealized loss position, 12 months or greater, fair value | 0 | 0 |
Continuous unrealized loss position, 12 months or greater, gross unrealized loss | 0 | 0 |
Continuous unrealized loss position, fair value | 14,992 | 14,809 |
Continuous unrealized loss position, gross unrealized losses | 0 | (5) |
Corporate notes and bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous unrealized loss position, less than 12 months, fair value | 703,906 | 819,113 |
Continuous unrealized loss position, less than 12 months, gross unrealized losses | (1,817) | (2,703) |
Continuous unrealized loss position, 12 months or greater, fair value | 218,247 | 141,874 |
Continuous unrealized loss position, 12 months or greater, gross unrealized loss | (1,255) | (381) |
Continuous unrealized loss position, fair value | 922,153 | 960,987 |
Continuous unrealized loss position, gross unrealized losses | (3,072) | (3,084) |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous unrealized loss position, less than 12 months, fair value | 1,000 | |
Continuous unrealized loss position, less than 12 months, gross unrealized losses | 0 | |
Continuous unrealized loss position, 12 months or greater, fair value | 0 | |
Continuous unrealized loss position, 12 months or greater, gross unrealized loss | 0 | |
Continuous unrealized loss position, fair value | 1,000 | |
Continuous unrealized loss position, gross unrealized losses | 0 | |
U.S. government and agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous unrealized loss position, less than 12 months, fair value | 42,101 | 106,301 |
Continuous unrealized loss position, less than 12 months, gross unrealized losses | (143) | (593) |
Continuous unrealized loss position, 12 months or greater, fair value | 72,327 | 22,555 |
Continuous unrealized loss position, 12 months or greater, gross unrealized loss | (379) | (45) |
Continuous unrealized loss position, fair value | 114,428 | 128,856 |
Continuous unrealized loss position, gross unrealized losses | $ (522) | $ (638) |
Investments - Additional Information (Detail) |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2018
USD ($)
security
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale securities maturities term maximum | 36 months | ||
Number of available-for-sale securities in unrealized loss position | security | 384 | ||
Other than temporary impairment losses, investments, available-for-sale securities | $ 0 | ||
Unrealized gain recognized on sale of marketable equity securities | $ 7,900,000 | ||
Tax effect recognized on sale of marketable equity securities | $ 2,900,000 | ||
Equity investments in privately-held companies | 13,300,000 | $ 4,800,000 | |
Level 3 | |||
Debt Securities, Available-for-sale [Line Items] | |||
Fair value of debt investments in privately-held companies | 1,300,000 | 1,000,000.0 | |
Marketable equity securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Marketable securities | $ 20,700,000 | ||
Proceeds from sale of marketable equity securities | 40,000,000.0 | ||
Realized gain recognized on sale of marketable equity securities | $ 19,300,000 |
Fair Value Measurements (Detail) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 1,715,377 | $ 1,877,645 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 226,945 | 303,224 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,488,432 | 1,574,421 |
Cash equivalents | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 226,945 | 282,507 |
Cash equivalents | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 104,025 | 100,456 |
Cash equivalents | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 50,437 | |
Cash equivalents | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,435 | |
Cash equivalents | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 226,945 | 282,507 |
Cash equivalents | Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Cash equivalents | Level 1 | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Cash equivalents | Level 1 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | |
Cash equivalents | Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Cash equivalents | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 104,025 | 100,456 |
Cash equivalents | Level 2 | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 50,437 | |
Cash equivalents | Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 4,435 | |
Short-term investments | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 196,207 | 258,344 |
Short-term investments | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 566,748 | 688,316 |
Short-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 47,992 | 17,950 |
Short-term investments | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 111,464 | 67,476 |
Short-term investments | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 20,717 | |
Short-term investments | Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Short-term investments | Level 1 | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Short-term investments | Level 1 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Short-term investments | Level 1 | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Short-term investments | Level 1 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 20,717 | |
Short-term investments | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 196,207 | 258,344 |
Short-term investments | Level 2 | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 566,748 | 688,316 |
Short-term investments | Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 47,992 | 17,950 |
Short-term investments | Level 2 | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 111,464 | 67,476 |
Short-term investments | Level 2 | Marketable equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | |
Long-term investments | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 443,201 | 314,928 |
Long-term investments | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 11,396 | 15,134 |
Long-term investments | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 2,964 | 61,380 |
Long-term investments | Level 1 | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Long-term investments | Level 1 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Long-term investments | Level 1 | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Long-term investments | Level 2 | Corporate notes and bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 443,201 | 314,928 |
Long-term investments | Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 11,396 | 15,134 |
Long-term investments | Level 2 | U.S. government and agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $ 2,964 | $ 61,380 |
Business Combinations (Details) $ in Thousands |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2018
USD ($)
company
|
Sep. 30, 2017
USD ($)
company
|
Dec. 31, 2017
USD ($)
|
[1] | |||
Business Acquisition [Line Items] | ||||||
Goodwill | $ 143,133 | $ 128,728 | ||||
General and administrative | ||||||
Business Acquisition [Line Items] | ||||||
Aggregate acquisition-related costs | $ 1,000 | $ 1,500 | ||||
All 2018 Business Combinations | ||||||
Business Acquisition [Line Items] | ||||||
Number of privately-held companies acquired | company | 2 | |||||
Payments to acquire businesses | $ 25,100 | |||||
Goodwill | 18,100 | |||||
Net deferred tax liabilities | 2,200 | |||||
All 2018 Business Combinations | Developed technology | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 9,000 | |||||
Weighted average useful life | 5 years | |||||
All 2017 Business Combinations | ||||||
Business Acquisition [Line Items] | ||||||
Number of privately-held companies acquired | company | 3 | |||||
Payments to acquire businesses | $ 26,600 | |||||
Goodwill | 20,300 | |||||
Net deferred tax liabilities | 3,600 | |||||
Goodwill, tax deductible amount | 4,100 | |||||
All 2017 Business Combinations | Developed technology | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | $ 9,900 | |||||
Weighted average useful life | 5 years | |||||
|
Goodwill and Intangible Assets - Schedule of Goodwill (Details) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2018
USD ($)
| ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning of period | $ 128,728 | [1] | ||
Goodwill acquired | 18,063 | |||
Foreign currency translation adjustments | (3,658) | |||
Goodwill, end of period | $ 143,133 | |||
|
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Total intangible assets | $ 148,824 | $ 134,954 | |||
Less: accumulated amortization | (64,818) | (48,038) | |||
Net carrying amount | 84,006 | 86,916 | [1] | ||
2018 | 6,313 | ||||
2019 | 25,189 | ||||
2020 | 15,454 | ||||
2021 | 13,454 | ||||
2022 | 9,403 | ||||
Thereafter | 14,193 | ||||
Total future amortization expense | 84,006 | ||||
Developed technology | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Total intangible assets | 110,294 | 102,349 | |||
Patents | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Total intangible assets | 37,880 | 31,030 | |||
Other | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Total intangible assets | $ 650 | $ 1,575 | |||
|
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 6.4 | $ 4.8 | $ 18.2 | $ 14.3 |
Patents | ||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||
Intangible assets, net | $ 6.9 | $ 6.2 | ||
Weighted average useful life | 8 years | 10 years |
Property and Equipment (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | $ 611,301 | $ 611,301 | $ 480,237 | |||||
Less: accumulated depreciation | (313,930) | (313,930) | (235,113) | |||||
Total property and equipment, net | 297,371 | 297,371 | 245,124 | [1] | ||||
Depreciation | 31,500 | $ 24,300 | 88,300 | $ 66,900 | ||||
Computer equipment | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | 428,261 | 428,261 | 326,378 | |||||
Computer software | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | 56,078 | 56,078 | 46,413 | |||||
Leasehold and other improvements | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | 72,034 | 72,034 | 56,232 | |||||
Furniture and fixtures | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | 41,278 | 41,278 | 38,789 | |||||
Building | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | 6,771 | 6,771 | 7,084 | |||||
Construction in progress | ||||||||
Property, Plant and Equipment [Line Items] | ||||||||
Property and equipment, gross | $ 6,879 | $ 6,879 | $ 5,341 | |||||
|
Derivative Contracts (Details) - Foreign currency derivative contracts - Not Designated as Hedging Instruments $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
| |
Derivatives, Fair Value [Line Items] | |
Derivative, term of contract | 12 months |
Derivative, notional amount | $ 794,100 |
Level 2 | Prepaid expenses and other current assets | |
Derivatives, Fair Value [Line Items] | |
Derivative Assets | 16,524 |
Level 2 | Accrued expenses and other current liabilities | |
Derivatives, Fair Value [Line Items] | |
Derivative Liabilities | $ 734 |
Deferred Revenue and Performance Obligations - Revenues Recognized from Deferred Revenues (Details) $ in Billions |
9 Months Ended |
---|---|
Sep. 30, 2018
USD ($)
| |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue recognized | $ 1.0 |
Deferred Revenue and Performance Obligations - Transaction Price Allocated to the Remaining Performance Obligations (Details) $ in Billions |
Sep. 30, 2018
USD ($)
|
---|---|
Revenue from Contract with Customer [Abstract] | |
Remaining non-cancelable performance obligations | $ 4.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Performance obligations expected to be satisfied (percent) | 51.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|
Disclosure Summary Of Accrued Expenses And Other Current Liabilities [Abstract] | |||||
Taxes payable | $ 29,439 | $ 25,617 | |||
Bonuses and commissions | 68,729 | 84,972 | |||
Accrued compensation | 55,832 | 45,428 | |||
Other employee related liabilities | 39,831 | 44,284 | |||
Other | 57,714 | 52,956 | |||
Total accrued expenses and other current liabilities | $ 251,545 | $ 253,257 | [1] | ||
|
Convertible Senior Notes - Additional Information (Details) shares in Millions |
9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Nov. 01, 2018
USD ($)
|
Sep. 30, 2018
USD ($)
day
trading_day
shares
|
Sep. 30, 2017
USD ($)
|
[1] |
Dec. 31, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
|
Nov. 30, 2013
USD ($)
|
|||
Debt Instrument [Line Items] | |||||||||
Percentage of purchase price of notes which should be paid upon fundamental change (percent) | 100.00% | ||||||||
Benefit from exercise of Note Hedge | $ 548,001,000 | $ 0 | |||||||
Estimated fair value of the note based on the closing trading price | $ 100 | $ 100 | |||||||
Warrant exercise period | trading_day | 60 | ||||||||
2018 Note Hedge | |||||||||
Debt Instrument [Line Items] | |||||||||
Benefit from exercise of Note Hedge | $ 548,000,000.0 | ||||||||
Note hedged shares of common stock remaining (in shares) | shares | 2.2 | ||||||||
Stock Price Trigger Measurement | |||||||||
Debt Instrument [Line Items] | |||||||||
Trading days threshold | day | 20 | ||||||||
Consecutive trading days threshold, total | day | 30 | ||||||||
Threshold percentage of stock price trigger (percent) | 130.00% | ||||||||
Notes Price Trigger Measurement | |||||||||
Debt Instrument [Line Items] | |||||||||
Trading days threshold | day | 5 | ||||||||
Consecutive trading days threshold, total | day | 5 | ||||||||
Threshold percentage of stock price trigger (percent) | 98.00% | ||||||||
Conversion of notes base conversion price | $ 1,000 | ||||||||
2022 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 782,500,000 | 782,500,000 | $ 782,500,000 | ||||||
Stated interest rate (percent) | 0.00% | ||||||||
Remaining discount amortization period | 44 months | ||||||||
2018 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Face amount of debt | $ 161,841,000 | $ 574,994,000 | $ 575,000,000.0 | ||||||
Stated interest rate (percent) | 0.00% | ||||||||
Settlement of principal | 413,200,000 | ||||||||
Loss on extinguishment of debt | 4,100,000 | ||||||||
Conversion option settlement, reduction to additional paid-in capital | 6,400,000 | ||||||||
Conversion option settlement, fair value adjustments | $ 554,400,000 | ||||||||
Remaining discount amortization period | 1 month | ||||||||
Subsequent Event | 2018 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Settlement of principal | $ 161,800,000 | ||||||||
|
Convertible Senior Notes - Schedule of Conversion (Details) |
1 Months Ended | 2 Months Ended | 3 Months Ended |
---|---|---|---|
Nov. 30, 2013
shares
$ / shares
|
Jun. 30, 2017
$ / shares
|
Jun. 30, 2017
shares
$ / shares
|
|
2022 Notes | |||
Debt Instrument [Line Items] | |||
Initial Conversion Price per Share (in dollars per share) | $ / shares | $ 134.75 | $ 134.75 | |
Initial Conversion Rate per $1,000 Par Value | 0.00742 | ||
Initial Number of Shares (in shares) | shares | 5,806,936 | ||
2018 Notes | |||
Debt Instrument [Line Items] | |||
Initial Conversion Price per Share (in dollars per share) | $ / shares | $ 73.88 | ||
Initial Conversion Rate per $1,000 Par Value | 0.01354 | ||
Initial Number of Shares (in shares) | shares | 7,783,023 |
Convertible Senior Notes - Schedule of Notes Payable (Details) - USD ($) |
Sep. 30, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
Nov. 30, 2013 |
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Net carrying amount | $ 814,610,000 | $ 1,173,436,000 | ||
2022 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal | 782,500,000 | 782,500,000 | $ 782,500,000 | |
Less: debt issuance cost and debt discount, net of amortization | (128,862,000) | (152,482,000) | ||
2018 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal | 161,841,000 | 574,994,000 | $ 575,000,000.0 | |
Less: debt issuance cost and debt discount, net of amortization | $ (869,000) | $ (31,576,000) |
Convertible Senior Notes - Schedule of Equity Components (Details) $ in Thousands |
Sep. 30, 2018
USD ($)
|
---|---|
2022 Notes | |
Debt Instrument [Line Items] | |
Note | $ 162,039 |
Issuance cost | (2,148) |
Net amount recorded in equity | 159,891 |
2018 Notes | |
Debt Instrument [Line Items] | |
Note | 155,319 |
Issuance cost | (3,257) |
Net amount recorded in equity | $ 152,062 |
Convertible Senior Notes - Schedule of Fair Value (Details) - Level 2 - USD ($) $ in Thousands |
Sep. 30, 2018 |
Dec. 31, 2017 |
---|---|---|
2022 Notes | ||
Debt Instrument [Line Items] | ||
Estimated fair values of notes | $ 1,168,859 | $ 897,778 |
2018 Notes | ||
Debt Instrument [Line Items] | ||
Estimated fair values of notes | $ 425,035 | $ 1,015,554 |
Convertible Senior Notes - Schedule of Interest Expense Recognized (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
||||
Debt Instrument [Line Items] | |||||||
Total | $ 11,233 | $ 16,566 | $ 43,795 | $ 36,581 | [1] | ||
2022 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Amortization of debt issuance cost | 385 | 367 | 1,141 | 489 | |||
Amortization of debt discount | $ 7,585 | 7,222 | $ 22,479 | 9,610 | |||
Effective interest rate of the liability component | 4.75% | 4.75% | |||||
2018 Notes | |||||||
Debt Instrument [Line Items] | |||||||
Amortization of debt issuance cost | $ 175 | 481 | $ 1,082 | 1,421 | |||
Amortization of debt discount | $ 3,088 | $ 8,496 | $ 19,093 | $ 25,061 | |||
Effective interest rate of the liability component | 6.50% | 6.50% | |||||
|
Convertible Senior Notes - Schedule of Note Hedges (Details) - USD ($) $ in Thousands |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
[1] | |||
Derivative [Line Items] | |||||
Purchase | $ 0 | $ 128,017 | |||
2022 Note Hedge | |||||
Derivative [Line Items] | |||||
Purchase | $ 128,017 | ||||
Shares | 5,806,936 | ||||
2018 Note Hedge | |||||
Derivative [Line Items] | |||||
Purchase | $ 135,815 | ||||
Shares | 7,783,023 | ||||
|
Convertible Senior Notes - Schedule of Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands |
9 Months Ended | ||||
---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
[1] | |||
Class of Warrant or Right [Line Items] | |||||
Proceeds | $ 0 | $ 54,071 | |||
2022 Warrants | |||||
Class of Warrant or Right [Line Items] | |||||
Proceeds | $ 54,071 | ||||
Shares | 5,806,936 | ||||
Strike Price (in dollars per share) | $ 203.40 | ||||
2018 Warrants | |||||
Class of Warrant or Right [Line Items] | |||||
Proceeds | $ 84,525 | ||||
Shares | 7,783,023 | ||||
Strike Price (in dollars per share) | $ 107.46 | ||||
|
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
Sep. 30, 2018 |
Jan. 01, 2018 |
Dec. 31, 2017 |
|||
---|---|---|---|---|---|---|
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Foreign currency translation adjustment | $ 2,459 | $ 2,246 | ||||
Net unrealized gain (loss) on investments, net of tax | (3,877) | 3,521 | ||||
Accumulated other comprehensive income (loss) | (1,418) | $ 5,767 | [1] | |||
Accounting Standards Update 2016-01 | Retained Earnings | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Cumulative-effect adjustment | $ 7,200 | $ 7,200 | ||||
|
Stockholders' Equity - Additional Information (Detail) - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Equity [Abstract] | ||
Shares of common stock, authorized (in shares) | 600,000,000 | |
Shares of common stock, issued and sold (in shares) | 179,305,339 | |
Stock issued during period, shares, new issues (in shares) | 5,029,475 | 5,816,968 |
Stockholders' Equity - Outstanding and Reserved Shares of Common Stock for Future Issuance (Detail) - shares |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
|
Common stock outstanding and reserved shares of common stock for future issuance | ||||
Options outstanding (in shares) | 1,905,320 | 2,169,490 | 2,687,234 | 3,369,732 |
Total shares of common stock reserved for future issuance (in shares) | 55,595,941 | |||
2012 Equity Incentive Plan | ||||
Common stock outstanding and reserved shares of common stock for future issuance | ||||
Total shares of common stock reserved for future issuance (in shares) | 31,982,552 | |||
2012 Employee Stock Purchase Plan | ||||
Common stock outstanding and reserved shares of common stock for future issuance | ||||
Total shares of common stock reserved for future issuance (in shares) | 10,714,423 | |||
Options outstanding | ||||
Common stock outstanding and reserved shares of common stock for future issuance | ||||
Options outstanding (in shares) | 1,905,320 | |||
Restricted stock units | ||||
Common stock outstanding and reserved shares of common stock for future issuance | ||||
RSUs (in shares) | 10,993,646 | 12,113,962 | 13,278,152 | 11,403,341 |
Performance-based RSUs | ||||
Common stock outstanding and reserved shares of common stock for future issuance | ||||
Number of shares eligible to vest (percent) | 100.00% |
Equity Awards - Additional Information (Detail) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Jan. 01, 2018
shares
|
Sep. 30, 2018
USD ($)
incentive_plan
|
Sep. 30, 2017
USD ($)
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity incentive plans | incentive_plan | 2 | ||
Fair value of stock options vested | $ 10.2 | ||
Total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options | $ 13.9 | ||
Common stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Remaining weighted-average period | 2 years 6 months 18 days | ||
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Remaining weighted-average period | 2 years 10 months 28 days | ||
Unrecognized compensation expense expected to be recognized | $ 914.3 | ||
Performance-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares eligible to vest (percent) | 100.00% | ||
Stock-based compensation expense, net of actual and estimated forfeitures | $ 65.7 | $ 28.4 | |
Minimum | Performance-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares eligible to vest (percent) | 0.00% | ||
Maximum | Performance-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares eligible to vest (percent) | 180.00% | ||
Vesting, tranche one | Performance-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting percentage | 33.00% | ||
Vesting, tranche two | Performance-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting term | 2 years | ||
2012 Equity Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock outstanding, increase, percentage | 5.00% | ||
Number of additional shares authorized (in shares) | shares | 8,713,793 | ||
2012 Equity Incentive Plan | Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting term | 4 years | ||
2012 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares of common stock outstanding, increase, percentage | 1.00% | ||
Number of additional shares authorized (in shares) | shares | 1,742,758 | ||
Common stock purchase price percentage | 85.00% | ||
Award offering period | 6 months |
Equity Awards - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
Sep. 30, 2018 |
|
Number of Shares | ||||
Outstanding, beginning balance (in shares) | 2,169,490 | 2,687,234 | 3,369,732 | 3,369,732 |
Exercised (in shares) | (264,170) | (486,160) | (621,330) | |
Canceled (in shares) | (31,584) | (61,168) | ||
Outstanding, ending balance (in shares) | 1,905,320 | 2,169,490 | 2,687,234 | 1,905,320 |
Vested and expected to vest (in shares) | 1,893,113 | 1,893,113 | ||
Vested and exercisable (in shares) | 1,346,401 | 1,346,401 | ||
Weighted- Average Exercise Price | ||||
Outstanding, beginning balance (in dollars per share) | $ 44.67 | $ 40.21 | $ 38.43 | $ 38.43 |
Exercised (in dollars per share) | 32.38 | 18.02 | 27.83 | |
Canceled (in dollars per share) | 74.84 | 68.12 | ||
Outstanding, ending balance (in dollars per share) | 46.37 | $ 44.67 | $ 40.21 | 46.37 |
Vested and expected to vest (in dollars per share) | 46.19 | 46.19 | ||
Vested and exercisable (in dollars per share) | $ 31.23 | $ 31.23 | ||
Weighted-average remaining contractual term, outstanding | 5 years 6 months 10 days | |||
Weighted-average remaining contractual term, vested and expected to vest | 5 years 6 months 7 days | |||
Weighted-average remaining contractual term, vested and exercisable | 4 years 5 months 4 days | |||
Aggregate intrinsic value, exercised | $ 40,573 | $ 73,805 | $ 77,936 | |
Aggregate intrinsic value, outstanding | 284,385 | $ 284,385 | ||
Aggregate intrinsic value, vested and expected to vest | 282,901 | 282,901 | ||
Aggregate intrinsic value, vested and exercisable | $ 221,342 | $ 221,342 |
Equity Awards - Restricted Stock Unit Table (Details) - Restricted stock units (RSUs) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Sep. 30, 2018 |
Jun. 30, 2018 |
Mar. 31, 2018 |
|
Number of Shares | |||
Outstanding, beginning balance (in shares) | 12,113,962 | 13,278,152 | 11,403,341 |
Granted (in shares) | 336,876 | 377,766 | 4,078,322 |
Vested (in shares) | (1,223,614) | (1,288,135) | (1,854,662) |
Forfeited (in shares) | (233,578) | (253,821) | (348,849) |
Outstanding, ending balance (in shares) | 10,993,646 | 12,113,962 | 13,278,152 |
Weighted Average Grant Date Fair Value (Per Share) | |||
Outstanding, beginning balance (in dollar per share) | $ 109.43 | $ 103.80 | $ 81.50 |
Granted (in dollar per share) | 189.59 | 173.35 | 151.13 |
Vested (in dollar per share) | 81.69 | 71.70 | 73.94 |
Forfeited (in dollar per share) | 107.57 | 99.79 | 87.01 |
Outstanding, ending balance (in dollar per share) | $ 115.02 | $ 109.43 | $ 103.80 |
Aggregate Intrinsic Value (in thousands) | |||
Aggregate intrinsic value, vested | $ 225,348 | $ 226,722 | $ 281,822 |
Aggregate intrinsic value, non-vested | $ 2,150,687 |
Net Income (Loss) Per Share - Schedule of Basic and Diluted Net Loss Per Share Attributable to Common Stockholders (Detail) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
[1] | Sep. 30, 2018 |
Sep. 30, 2017 |
[1] | |||
Numerator: | ||||||||
Net income (loss) | $ 8,405 | $ (22,182) | $ (33,719) | $ (99,500) | ||||
Denominator: | ||||||||
Weighted-average shares outstanding - basic (in shares) | 178,719,694 | 171,883,190 | 177,198,179 | 170,359,717 | ||||
Weighted-average shares outstanding - diluted (in shares) | 192,190,899 | 171,883,190 | 177,198,179 | 170,359,717 | ||||
Net income (loss) per share - basic (in dollars per share) | $ 0.05 | $ (0.13) | $ (0.19) | $ (0.58) | ||||
Net income (loss) per share - diluted (in dollars per share) | $ 0.04 | $ (0.13) | $ (0.19) | $ (0.58) | ||||
Common stock options | ||||||||
Denominator: | ||||||||
Weighted-average effect of potentially dilutive securities (in shares) | 1,438,359 | |||||||
Restricted stock units | ||||||||
Denominator: | ||||||||
Weighted-average effect of potentially dilutive securities (in shares) | 5,477,421 | |||||||
ESPP obligations | ||||||||
Denominator: | ||||||||
Weighted-average effect of potentially dilutive securities (in shares) | 2,093 | |||||||
In-the-money portion of Notes | 2018 convertible senior notes | ||||||||
Denominator: | ||||||||
Weighted-average effect of potentially dilutive securities (in shares) | 1,523,555 | |||||||
In-the-money portion of Notes | 2022 convertible senior notes | ||||||||
Denominator: | ||||||||
Weighted-average effect of potentially dilutive securities (in shares) | 1,669,252 | |||||||
2018 Warrants | Warrants | ||||||||
Denominator: | ||||||||
Weighted-average effect of potentially dilutive securities (in shares) | 3,360,525 | |||||||
|
Net Income (Loss) Per Share - Schedule of Potentially Dilutive Securities (Detail) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive securities (in shares) | 6,737,968 | 43,968,377 | 34,804,426 | 43,968,377 |
Common stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive securities (in shares) | 0 | 4,117,639 | 1,905,320 | 4,117,639 |
Restricted stock units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive securities (in shares) | 931,035 | 12,306,875 | 10,993,646 | 12,306,875 |
ESPP obligations | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive securities (in shares) | 0 | 363,951 | 317,940 | 363,951 |
Convertible senior notes | 2018 convertible senior notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive securities (in shares) | 0 | 7,783,023 | 2,190,631 | 7,783,023 |
Convertible senior notes | 2022 convertible senior notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive securities (in shares) | 0 | 5,806,933 | 5,806,933 | 5,806,933 |
Warrants related to the issuance of convertible senior notes | 2018 convertible senior notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive securities (in shares) | 0 | 7,783,023 | 7,783,023 | 7,783,023 |
Warrants related to the issuance of convertible senior notes | 2022 convertible senior notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Total potentially dilutive securities (in shares) | 5,806,933 | 5,806,933 | 5,806,933 | 5,806,933 |
Income Taxes (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | (16.00%) | (11.00%) | 18.00% | 1.00% |
Commitments and Contingencies - Maturity of Obligations (Details) $ in Thousands |
Sep. 30, 2018
USD ($)
|
---|---|
Operating Leases | |
Remainder of 2018 | $ 11,388 |
2019 | 50,203 |
2020 | 52,047 |
2021 | 51,092 |
2022 | 54,588 |
Thereafter | 591,269 |
Leases, net of sublease income, total | 810,587 |
Purchase Obligations | |
Remainder of 2018 | 21,252 |
2019 | 42,542 |
2020 | 30,972 |
2021 | 13,846 |
2022 | 5,984 |
Thereafter | 4,512 |
Purchase obligations, total | 119,108 |
Other | |
Remainder of 2018 | 210 |
2019 | 841 |
2020 | 874 |
2021 | 891 |
2022 | 891 |
Thereafter | 371 |
Other, total | 4,078 |
Total | |
Remainder of 2018 | 32,850 |
2019 | 93,586 |
2020 | 83,893 |
2021 | 65,829 |
2022 | 61,463 |
Thereafter | 596,152 |
Total | 933,773 |
Purchase obligations, cancellation policy | $ 18,100 |
Commitments and Contingencies - Additional Information (Details) - USD ($) |
9 Months Ended | ||||
---|---|---|---|---|---|
Nov. 01, 2018 |
Sep. 30, 2018 |
Dec. 31, 2017 |
Jun. 30, 2017 |
Nov. 30, 2013 |
|
Debt Instrument [Line Items] | |||||
Unrecognized tax benefits | $ 6,500,000 | ||||
2022 Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | 782,500,000 | $ 782,500,000 | $ 782,500,000 | ||
2018 Notes | |||||
Debt Instrument [Line Items] | |||||
Face amount of debt | 161,841,000 | $ 574,994,000 | $ 575,000,000.0 | ||
Settlement of principal | $ 413,200,000 | ||||
Subsequent Event | 2018 Notes | |||||
Debt Instrument [Line Items] | |||||
Settlement of principal | $ 161,800,000 |
Information about Geographic Areas and Products - Geographic Disclosures (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
Dec. 31, 2017 |
||||||
Revenues by geography | ||||||||||
Total revenues | $ 673,097 | $ 492,372 | [1] | $ 1,893,375 | $ 1,369,401 | [1] | ||||
Percentage of U.S. revenues in North America | 94.00% | 94.00% | 94.00% | 94.00% | ||||||
Property and equipment by geography | ||||||||||
Property and equipment, net | $ 297,371 | $ 297,371 | $ 245,124 | [1] | ||||||
Percentage of U.S. net property and equipment in North America | 86.00% | 86.00% | 89.00% | |||||||
North America | ||||||||||
Revenues by geography | ||||||||||
Total revenues | $ 451,457 | $ 325,695 | $ 1,252,189 | $ 925,709 | ||||||
Property and equipment by geography | ||||||||||
Property and equipment, net | 190,586 | 190,586 | $ 164,040 | |||||||
EMEA | ||||||||||
Revenues by geography | ||||||||||
Total revenues | 161,688 | 126,044 | 474,758 | 336,090 | ||||||
Property and equipment by geography | ||||||||||
Property and equipment, net | 71,547 | 71,547 | 50,028 | |||||||
Asia Pacific and other | ||||||||||
Revenues by geography | ||||||||||
Total revenues | 59,952 | $ 40,633 | 166,428 | $ 107,602 | ||||||
Property and equipment by geography | ||||||||||
Property and equipment, net | $ 35,238 | $ 35,238 | $ 31,056 | |||||||
|
Information about Geographic Areas and Products - Subscription Revenues (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Sep. 30, 2018 |
Sep. 30, 2017 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|||||
Segment Reporting Information [Line Items] | ||||||||
Subscription revenues | $ 673,097 | $ 492,372 | [1] | $ 1,893,375 | $ 1,369,401 | [1] | ||
Service management products | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Subscription revenues | 533,007 | 394,603 | 1,490,283 | 1,094,765 | ||||
ITOM products | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Subscription revenues | 93,560 | 54,903 | 264,891 | 144,997 | ||||
Total subscription revenues | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Subscription revenues | $ 626,567 | $ 449,506 | [1] | $ 1,755,174 | $ 1,239,762 | [1] | ||
|
Subsequent Events (Details) shares in Millions, $ in Millions |
1 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Nov. 01, 2018
USD ($)
|
Oct. 31, 2018
USD ($)
company
|
Sep. 30, 2018
USD ($)
company
|
Feb. 01, 2019
shares
|
|
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Payments to acquire businesses | $ 12.5 | |||
Number of privately-held companies acquired | company | 2 | |||
All 2018 Business Combinations | ||||
Subsequent Event [Line Items] | ||||
Payments to acquire businesses | $ 25.1 | |||
Number of privately-held companies acquired | company | 2 | |||
2018 convertible senior notes | ||||
Subsequent Event [Line Items] | ||||
Settlement of principal | $ 413.2 | |||
2018 convertible senior notes | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Settlement of principal | $ 161.8 | |||
Scenario, Forecast | 2018 convertible senior notes | ||||
Subsequent Event [Line Items] | ||||
Shares to be issued upon exercise of 2018 Warrants (in shares) | shares | 3.5 |
Label | Element | Value | ||
---|---|---|---|---|
Restricted Cash | us-gaap_RestrictedCash | $ 2,694,000 | ||
Restricted Cash | us-gaap_RestrictedCash | $ 1,437,000 | [1] | |
|
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