Stockholders' Deficit (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Reserved Shares of Common Stock for Future Issuances

The Company has reserved the following shares of common stock for future issuances (in thousands):

	March 31, 2018
Common stock awards granted under equity    incentive plans		24,933
Common stock awards available for grant under    equity incentive plan		17,096
Total reserved shares of common stock		42,029

Summary of Recognized Employee Stock-Based Compensation Expense

The following table shows total stock-based compensation expense for the three months ended March 31, 2018 and 2017 (in thousands):

	Three Months Ended
	March 31, 2018		March 31, 2017
Cost of platform revenue	$	19	$	21
Cost of player revenue		44		36
Research and development		2,296		888
Sales and marketing		1,110		601
General and administrative		960		629
Total stock-based compensation	$	4,429	$	2,175

Schedule of Activity Under Equity Incentive Plan

The summary of the Company’s stock option activity is as follows (in thousands, except price per share data):

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)		Weighted Average Grant Date Fair Value Per Share		Aggregate Intrinsic Value
Balance, December 31, 2017 - outstanding		26,336		$	4.59		6.4		—
Granted		82			45.96		—	$	19.32
Exercised		(1,670	)		3.04		—		—
Forfeited and expired		(302	)		6.37		—		—
Balance, March 31, 2018 - outstanding		24,446		$	4.81		6.4		—	$	644,801
Options exercisable at March 31, 2018		14,583		$	3.16		4.8		—	$	407,437

Summary of Assumptions Used to Value Stock-Based Awards Granted

The fair value of options granted under the equity incentive plans is estimated on the grant date using the Black-Scholes option-valuation model. The assumptions used in the Black-Scholes model are as follows:

	Three Months Ended
	March 31, 2018		March 31, 2017
Dividend rate		—		—
Expected term (in years)		6.1	6.1 - 6.5
Risk-free interest rate	2.32 - 2.67%		2.18 - 2.25%
Expected volatility	39 - 40%		43 - 44%

Summary of Restricted Stock Unit Activity

Pursuant to the 2017 Plan, the Company issued restricted stock units to employees. The summary of the Company’s restricted stock unit activity is as follows (in thousands, except price per share data):

	Number of Shares			Weighted Average Grant Date Fair Value Per Share
Balance, December 31, 2017 - outstanding		272		$	43.55
Awarded		227			42.98
Released		—			—
Forfeited		(12	)		43.55
Balance, March 31, 2018 - outstanding		487		$	43.29

Preferred Stock Warrants

Summary of Assumptions Used to Value Stock-Based Awards Granted

The assumptions used to value the preferred stock warrants outstanding during the three months ended March 31, 2017 as follows:

	Three Months Ended
	March 31, 2017
Dividend rate	$	—
Expected term (in years)	3.2 - 3.4
Risk-free interest rate	1.5% - 1.6%
Expected volatility	45.3% - 45.9%