Financial Statement Components

9 Months Ended

Sep. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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


	September 30, 2020		December 31, 2019
Cash	$	102,431	$	46,295
Money market funds	643,127		297,311
Total cash and cash equivalents	$	745,558	$	343,606

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


	September 30, 2020		December 31, 2019
Accounts receivable	$	133,363	$	114,745
Unbilled accounts receivable	25,433		17,603
Allowance for doubtful accounts	(5,213)		(2,358)
Accounts receivable, net	$	153,583	$	129,990

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


	September 30, 2020		December 31, 2019
Prepaid expenses	$	19,759	$	16,249
Inventory	673		401
Other current assets	19,819		8,704
Total prepaid expenses and other current assets	$	40,251	$	25,354

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


	September 30, 2020		December 31, 2019
Computer hardware and software	$	159,970	$	120,841
Internal-use software development costs	79,277		48,419
Furniture and fixtures	8,131		7,690
Leasehold improvements	12,662		11,327
Total property and equipment, gross	260,040		188,277
Less: accumulated depreciation and amortization	(127,073)		(99,047)
Property and equipment, net	$	132,967	$	89,230

Total depreciation and amortization expense related to property and equipment was $10.5 million and $7.3 million for the three months ended September 30, 2020 and 2019, respectively, and $27.8 million and $19.6 million for the nine months ended September 30, 2020 and 2019, respectively.

During the nine months ended September 30, 2020, the Company financed $4.7 million of property, equipment and software licenses through vendor financing arrangements at interest rates ranging up to 3.95% to be repaid over a three-year term. As of September 30, 2020, $3.2 million of the related equipment is collateralized under the vendor financing arrangement. The financing arrangements and the assets purchased under these arrangements are non-cash investing and financing activities.

The carrying value of goodwill is as follows (in thousands):


Balance at December 31, 2019	$	55,278

Foreign currency translation adjustments	945
Balance at September 30, 2020	$	56,223

The carrying values of intangible assets are as follows (in thousands):


		September 30, 2020						December 31, 2019
	Estimated Lives	Cost		Accumulated Amortization		Acquired Intangibles, Net		Cost		Accumulated Amortization		Acquired Intangibles, Net
Customer relationships	2 to 5 years	$	21,636	$	11,138	$	10,498	$	21,245	$	8,178	$	13,067
Developed technology	3 to 5 years	123,681		32,285		91,396		123,547		9,276		114,271
Total acquired intangible assets		$	145,317	$	43,423	$	101,894	$	144,792	$	17,454	$	127,338

Amortization expense from acquired intangible assets for the three months ended September 30, 2020 and 2019 was $8.6 million and $2.3 million, respectively, and $25.8 million and $6.5 million for the nine months ended September 30, 2020 and 2019, respectively. Amortization of developed technology is included in cost of revenues and amortization of customer relationships is included in sales and marketing expenses in the Condensed Consolidated Statements of Operations. As of September 30, 2020, the weighted-average amortization period for developed technology is approximately 3.1 years and for customer relationships is approximately 2.2 years.

Estimated amortization expense for acquired intangible assets for the following fiscal years is as follows (in thousands):


2020 (remaining)	$	8,532
2021	34,128
2022	28,522
2023	16,542
2024 onwards	14,170
Total estimated amortization expense	$	101,894

Accrued liabilities consisted of the following (in thousands):


	September 30, 2020		December 31, 2019
Accrued compensation and benefits	$	37,890	$	30,541
Accrued sales, use, and telecom related taxes	28,354		25,757
Accrued marketing	29,485		17,505
Operating lease liabilities, short-term	16,407		14,249
Other accrued expenses	77,419		50,677
Total accrued liabilities	$	189,555	$	138,729

Deferred and Prepaid Sales Commission Costs

Amortization expense for the deferred and prepaid sales commission costs was $12.4 million and $8.0 million for the three months ended September 30, 2020 and 2019, respectively, and $33.1 million and $21.2 million for the nine months ended September 30, 2020 and 2019, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented.