Revenue (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of Contract Balances

The table below reflects the contract balances of the Company (in thousands):

	As of		As of adoption
	September 30, 2018		January 1, 2018
Accounts receivable, net	$	133,895	$	133,281
Contract assets, current portion		3,042		4,113
Deferred revenue, current portion		38,543		42,950
Deferred revenue, non-current portion		13,376		12,023

Accounting Standards Update 2014-09

Schedule of Cumulative Effect of Changes Made to Consolidated Balance Sheet for Adoption of New Revenue Standard

The cumulative effect of the changes made to the consolidated January 1, 2018 balance sheet for the adoption of the new revenue standard were as follows (in thousands):

	As of			Adjustment on			As of
Balance Sheet line items impacted	December 31, 2017			adoption of new revenue standard			January 1, 2018
Assets:
Accounts receivables, net	$	120,553		$	12,728		$	133,281
Inventories		32,740			(108	)		32,632
Prepaid expenses and other current assets		11,367			4,113			15,480
Deferred cost of revenue, current portion		3,007			(1,076	)		1,931
Deferred cost of revenue, non-current portion		5,403			(3,885	)		1,518
Other non-current assets		3,429			(222	)		3,207
Liabilities:
Accounts payable and accrued liabilities		128,757			1,250			130,007
Deferred revenue, current portion		34,501			8,449			42,950
Deferred revenue, non-current portion		48,511			(36,488	)		12,023
Equity:
Accumulated deficit		(283,338	)		38,339			(244,999	)

Summary of Impact of Adoption of New Revenue Standards On Our Statements

The impact of adoption of the new revenue standard on January 1, 2018, on the condensed consolidated balance sheet and statements of operations is reflected in the table below (in thousands):

	As of  September 30, 2018
Impact on balance sheet line items	As Reported			Balances without adoption of the new revenue standard			Impact of adoption Higher / (Lower)
Assets:
Accounts receivable, net	$	133,895		$	115,423		$	18,472
Inventories		68,803			68,803			—
Prepaid expenses and other current assets		13,867			11,003			2,864
Deferred cost of revenue, current portion		1,504			3,963			(2,459	)
Deferred cost of revenue, non-current portion		—			5,309			(5,309	)
Liabilities:
Accounts payable and accrued liabilities		147,255			145,255			2,000
Deferred revenue, current portion		38,543			34,159			4,384
Deferred revenue, non-current portion		13,376			47,160			(33,784	)
Equity:
Accumulated Deficit		(260,674	)		(301,642	)		40,968

	Three Months Ended September 30, 2018									Nine Months Ended September 30, 2018
Impact on statements of operations line items	As Reported			Balances without adoption of the new revenue standard			Impact of adoption Higher / (Lower)			As Reported			Balances without adoption of the new revenue standard			Impact of adoption Higher / (Lower)
Net Revenue:
Platform	$	100,050		$	95,056		$	4,994		$	265,468		$	253,345		$	12,123
Player		73,331			74,286			(955	)		201,299			201,021			278
Total net revenue		173,381			169,342			4,039			466,767			454,366			12,401
Cost of Revenue:
Platform		29,504			26,110			3,394			78,498			69,020			9,478
Player		64,884			65,454			(570	)		168,412			168,118			294
Total cost of revenue		94,388			91,564			2,824			246,910			237,138			9,772
Gross Profit:
Platform		70,546			68,946			1,600			186,970			184,325			2,645
Player		8,447			8,832			(385	)		32,887			32,903			(16	)
Total gross profit		78,993			77,778			1,215			219,857			217,228			2,629
Operating Expenses:
Research and development		45,370			45,370			—			119,692			119,692			—
Sales and marketing		25,603			25,603			—			68,180			68,180			—
General and administrative		19,769			19,769			—			50,768			50,768			—
Total operating expenses		90,742			90,742			—			238,640			238,640			—
Loss from Operations		(11,749	)		(12,964	)		1,215			(18,783	)		(21,412	)		2,629
Net loss	$	(9,527	)	$	(10,742	)	$	1,215		$	(15,635	)	$	(18,264	)	$	2,629