roku-10q_20180930.htm

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of October 31, 2018, the registrant had 77,223,289 of Class A common stock, $0.0001 par value per share, and 31,941,328 shares of Class B common stock, $0.0001 par value per share, outstanding.

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this report, including statements regarding our future results of operations and financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, forward-looking statements may be identified by words such as “anticipate,” “believe,” “continue,” “could,” “design,” “estimate,” “expect,” “intend,” “may,” “plan,” “potentially,” “predict,” “project,” “should,” “will” or the negative of these terms or other similar expressions.

Forward-looking statements are based on management’s beliefs and assumptions and on information currently available. These forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, including risks described in the section titled “Risk Factors” and elsewhere in this Form 10-Q, regarding, among other things:

We caution you that the foregoing list may not contain all of the forward-looking statements made in this Quarterly Report on Form 10-Q.

Other sections of this report may include additional factors that could harm our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time, and it is not possible for our management to predict all risk factors nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ from those contained in, or implied by, any forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. We cannot assure you that the events and circumstances reflected in the forward-looking statements will be achieved or occur. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by law, we undertake no obligation to update publicly any forward-looking statements for any reason after the date of this report or to conform these statements to actual results or to changes in our expectations. You should read this Quarterly Report on Form 10-Q and the documents that we reference in this Quarterly Report on Form 10-Q and have filed as exhibits to this report with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

Investors and others should note that we may announce material business and financial information to our investors using our investor relations website (ir.roku.com/investor-relations), SEC filings, webcasts, press releases, and conference calls. We use these mediums, including our website, to communicate with investors and the general public about our company, our products, and other issues. It is possible that the information that we make available may be deemed to be material information. We therefore encourage investors and others interested in our company to review the information that we make available on our website.

	As of
	September 30, 2018			December 31, 2017
Assets
Current Assets:
Cash and cash equivalents	$	137,670		$	177,250
Short-term investments		42,057			—
Accounts receivable, net of allowances		133,895			120,553
Inventories		68,803			32,740
Prepaid expenses and other current assets		13,867			11,367
Deferred cost of revenue, current portion		1,504			3,007
Total current assets		397,796			344,917
Property and equipment, net		23,260			14,736
Deferred cost of revenue, non-current portion		—			5,403
Intangible assets, net		1,615			2,030
Goodwill		1,382			1,382
Other non-current assets		4,305			3,429
Total Assets	$	428,358		$	371,897
Liabilities and Stockholders’ Equity
Current Liabilities:
Accounts payable and accrued liabilities	$	147,255		$	128,757
Deferred revenue, current portion		38,543			34,501
Total current liabilities		185,798			163,258
Deferred revenue, non-current portion		13,376			48,511
Other long-term liabilities		7,308			7,849
Total Liabilities		206,482			219,618
Commitments and contingencies (Note 9)
Stockholders’ Equity:
Preferred stock, $0.0001 par value		—			—
Common stock, $0.0001 par value		11			10
Additional paid-in capital		482,546			435,607
Accumulated other comprehensive loss		(7	)		—
Accumulated deficit		(260,674	)		(283,338	)
Total stockholders’ equity		221,876			152,279
Total Liabilities and Stockholders’ Equity	$	428,358		$	371,897

	Three Months Ended						Nine Months Ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Net Revenue:
Platform	$	100,050		$	57,528		$	265,468		$	139,919
Player		73,331			67,254			201,299			184,583
Total net revenue (Note 12)		173,381			124,782			466,767			324,502
Cost of Revenue:
Platform		29,504			12,962			78,498			33,083
Player		64,884			61,925			168,412			165,047
Total cost of revenue		94,388			74,887			246,910			198,130
Gross Profit:
Platform		70,546			44,566			186,970			106,836
Player		8,447			5,329			32,887			19,536
Total gross profit		78,993			49,895			219,857			126,372
Operating Expenses:
Research and development		45,370			28,532			119,692			76,650
Sales and marketing		25,603			16,216			68,180			44,938
General and administrative		19,769			13,039			50,768			33,894
Total operating expenses		90,742			57,787			238,640			155,482
Loss from Operations		(11,749	)		(7,892	)		(18,783	)		(29,110	)
Other Income (Expense), Net:
Interest expense		(112	)		(815	)		(220	)		(1,286	)
Change in fair value of preferred stock warrant liability		—			(37,682	)		—			(40,333	)
Other income, net		2,162			212			2,971			423
Total other income (expense), net		2,050			(38,285	)		2,751			(41,196	)
Loss Before Income Taxes		(9,699	)		(46,177	)		(16,032	)		(70,306	)
Income tax expense (benefit)		(172	)		58			(397	)		144
Net Loss Attributable to Common Stockholders	$	(9,527	)	$	(46,235	)	$	(15,635	)	$	(70,450	)
Net loss per share attributable to common stockholders—basic and diluted	$	(0.09	)	$	(8.79	)	$	(0.15	)	$	(14.09	)
Weighted-average shares used in computing net loss per share attributable to common stockholders—basic and diluted		106,884			5,260			103,035			4,999

	Three Months Ended						Nine Months Ended
	September 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Net Loss Attributable to Common Stockholders	$	(9,527	)	$	(46,235	)	$	(15,635	)	$	(70,450	)
Other comprehensive loss, net of tax:
Unrealized loss on short-term investments, net of tax		(7	)		—			(7	)		—
Other comprehensive loss, net of tax:		(7	)		—			(7	)		—
Comprehensive Net Loss	$	(9,534	)	$	(46,235	)	$	(15,642	)	$	(70,450	)

	Common Stock					Additional Paid-in			Treasury				Accumulated Other				Accumulated				Total Stockholders’
	Shares		Amount			Capital			Stock				Comprehensive Loss				Deficit				Equity
Balance—December 31, 2017		99,157		$	10		$	436,278		$	(671	)		$	—			$	(283,338	)		$	152,279
Vesting of early exercised stock options		—			—			213			—								—				213
Issuance of common stock pursuant to equity incentive plans, net of taxes		9,501			1			25,558			(69	)			—				—				25,490
Issuance of common stock pursuant to exercise of common stock warrants, net		141			—			—			—				—				—				—
Stock-based compensation expense		—			—			21,237			—				—								21,237
Adoption of ASU 2016-16 (Note 2)		—			—			—			—				—				(40	)			(40	)
Adoption of ASU 2014-09 (Note 12)		—			—			—			—				—				38,339				38,339
Unrealized loss on short-term investments		—			—			—			—				(7	)			—				(7	)
Net loss		—			—			—			—				—				(15,635	)			(15,635	)
Balance—September 30, 2018		108,799		$	11		$	483,286		$	(740	)		$	(7	)		$	(260,674	)		$	221,876

	Nine Months Ended
	September 30, 2018			September 30, 2017
Cash flows from operating activities:
Net loss	$	(15,635	)	$	(70,450	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization		5,824			3,883
Stock-based compensation expense		21,237			7,517
Provision for doubtful accounts		755			17
Change in fair value of preferred stock warrant liability		—			40,333
Noncash interest expense		216			668
Loss from exit of facilities		450			232
Loss on disposals of property and equipment		8			54
Amortization of premiums on short-term investments		(164	)		—
Changes in operating assets and liabilities:
Accounts receivable		(1,369	)		(5,537	)
Inventories		(36,171	)		8,118
Prepaid expenses and other current assets		1,357			(2,867	)
Deferred cost of revenue		1,945			(972	)
Other noncurrent assets		(1,098	)		(5,870	)
Accounts payable and accrued liabilities		16,943			35,068
Other long-term liabilities		(541	)		4,410
Deferred revenue		(3,054	)		16,588
Net cash (used in) provided by operating activities		(9,297	)		31,192
Cash flows from investing activities:
Purchase of property and equipment		(13,363	)		(6,671	)
Purchase of business, net of cash acquired		—			(2,959	)
Purchases of short-term investments		(44,900	)		—
Sales/maturities of short-term investments		3,000			—
Restricted cash		—			31
Net cash used in investing activities		(55,263	)		(9,599	)
Cash flows from financing activities:
Proceeds from borrowings, net		—			24,691
Repayments of borrowings		—			(15,000	)
Holdback payment for a prior business acquisition		(500	)		—
Proceeds from equity issued under incentive plans, net of repurchases		25,480			1,072
Net cash provided by financing activities		24,980			10,763
Net (Decrease) Increase in Cash		(39,580	)		32,356
Cash and cash equivalents—Beginning of period		177,250			34,562
Cash and cash equivalents—End of period	$	137,670		$	66,918
Supplemental disclosures of cash flow information:
Cash paid for interest	$	455		$	583
Cash paid for income taxes	$	404		$	162
Supplemental disclosures of noncash investing and financing activities:
Unpaid portion of property and equipment purchases	$	1,828		$	836
Unpaid initial public offering cost	$	—		$	2,992
Issuance of convertible preferred stock warrants in connection with debt	$	—		$	2,032

Roku, Inc. (the “Company” or “Roku”), was formed in October 2002 as Roku LLC under the laws of the State of Delaware. On February 1, 2008, Roku LLC was converted into Roku, Inc., a Delaware corporation. The Company’s TV streaming platform allows users to easily discover and access a wide variety of movies and TV episodes, as well as live sports, music, news and more. The Company operates in two reportable segments and generates revenue through the sale of streaming players, advertising, subscription and transaction revenue sharing, as well as through licensing arrangements with TV brands and cable, satellite, and telecommunication service operators (“service operators”).

On October 2, 2017, the Company completed its initial public offering (“IPO”) of Class A common stock, in which it sold 10.4 million shares, including 1.4 million shares pursuant to the underwriters’ over-allotment option. The shares were sold at an IPO price of $14.00 per share for net proceeds of $134.8 million, after deducting underwriting discounts and commissions of $10.1 million. Upon the closing of the Company’s IPO, all outstanding shares of its convertible preferred stock automatically converted into 80.8 million shares of Class B common stock and all outstanding convertible preferred stock warrants automatically converted to Class B common stock warrants on a one-for-one basis. The Company has two classes of authorized common stock – Class A common stock and Class B common stock. Class A common stock entitles holders to one vote per share, and Class B common stock entitles holders to 10 votes per share.

The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on March 1, 2018.

The condensed consolidated balance sheet as of December 31, 2017 has been derived from the audited consolidated financial statements as of that date but does not include all of the information and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017. The interim financial information is unaudited, but reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the operating results to be expected for the full year or any future periods.

There have been no material changes in the Company’s significant accounting policies other than Accounting Standards Update (“ASU”) 2016-16, Income taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740) described below and the adoption of ASU 2014-09, Revenue from Contracts with Customers (Topic 606) described below and in Note 12, as compared to the significant accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

The preparation of the Company’s condensed consolidated financial statements in accordance with U.S. GAAP requires management to make certain estimates, judgements, and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Adoption of ASU 2014-09, Revenue from Contracts with Customers (Topic 606), added new areas of judgements and estimates such as determination of performance obligations, variable consideration and standalone selling price. Other significant items subject to estimates include revenue recognition for multiple element arrangements, determination of revenue reporting as net versus gross, sales return reserves, customer incentive programs, inventory valuation, the valuation of deferred income tax assets, the recognition and disclosure of contingent liabilities, stock-based compensation and determination of fair value of assets and liabilities. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results may differ from the Company’s estimates.

The condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and includes the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Comprehensive loss includes unrealized losses on the Company’s short-term investments for the three and nine months ended September 30, 2018. The Company had no short-term investments during the three and nine months ended September 30, 2017. As a result, comprehensive loss was equal to the net loss for the three and nine months ended September 30, 2017.

Customers accounting for 10% or more of the Company’s net revenue were as follows:

Customers accounting for 10% or more of the Company’s accounts receivable were as follows:

The Company considers investments in instruments purchased with an original maturity of 90 days or less to be cash equivalents. Investments in instruments with original maturities that are greater than 90 days but less than one year are short-term investments. The Company’s short-term investments consist of corporate bonds, commercial paper and U.S. Government agency securities. These investments are held in the custody of a major financial institution. As of September 30, 2018, the short-term investments were classified as available-for-sale and were recorded in the condensed consolidated balance sheet at fair value with net unrealized gains or losses reported as a separate component of accumulated other comprehensive income (loss), net of tax.

The Company recognizes an impairment charge if a decline in the fair value of its investments is considered to be other-than-temporary. The Company has determined that gross unrealized losses on short-term investments at September 30, 2018 were temporary in nature because each investment meets the Company’s credit quality requirements and the Company has the ability and intent to hold these investments until they recover their unrealized losses.

The Company licenses content for viewing on The Roku Channel. The licensing arrangements can be for a fixed fee and/or advertising revenue share with specific windows of content availability. The Company capitalizes the content fees and records a corresponding liability at the gross amount of the liability when the license period begins, the cost of the content is known and the content is accepted and available for streaming. The Company amortizes licensed content assets into “Cost of Revenue, Platform” over the contractual window of availability.

As of September 30, 2018, content related expenses that met these requirements were not material.

On January 1, 2018, the Company adopted guidance in ASU 2014-09, Revenue from Contracts with Customers (Topic 606), (“new revenue standard”) using the modified retrospective method. The Company applied the new revenue standard to all contracts that were not completed as of January 1, 2018. The Company recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. Comparative information for prior periods has not been restated and continues to be reported under the accounting standards in effect for those periods. Refer to Note 12 for the detail on the impact of adoption.

On January 1, 2018, the Company adopted guidance in ASU 2016-16, Income taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740), using the modified retrospective method. The new guidance allows a reporting entity to recognize the tax expense from the sale of the asset in the seller’s tax jurisdiction when the transfer occurs, even though the pre-tax effects of that transaction are eliminated in consolidation. The adoption of this guidance resulted in a decrease in prepaid expense and other current assets and an increase to the accumulated deficit in amounts that were not material.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), related to new accounting and reporting guidelines for leasing arrangements. The guidance requires recognition of right-to-use lease assets and lease liabilities for all leases (with the exception of short-term leases) on the balance sheet of lessees. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company will adopt this guidance on January 1, 2019 using the modified retrospective approach. The Company is continuing to evaluate the impact of this adoption including the use of practical expedients provided in the guidance. The Company believes that the increase in assets and liabilities for all of its existing leases upon adoption will be material.

In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment, which eliminates Step 2 from the goodwill impairment test which measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under this guidance, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of the reporting unit with its carrying amount, and should recognize an impairment loss for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the loss not exceeding the total amount of goodwill allocated to that reporting unit. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, with early adoption permitted. The guidance should be applied prospectively. The Company does not believe the adoption of ASU 2018-15 will have a material impact on the consolidated financial statements.

In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Topic 350), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which requires hosting arrangements that are service contracts to follow the guidance for internal-use software to determine which implementation costs can be capitalized. The guidance is effective either prospectively or retrospectively for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The Company is evaluating the impact of this new guidance on the consolidated financial statements and the related disclosures.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurements (Topic 820), Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement. This standard removes, modifies, and adds certain disclosure requirements for fair value measurements. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company is currently in the process of evaluating the effects of the new guidance but does not expect the impact from this standard to be material.

On September 6, 2017, the Company acquired all of the outstanding shares of a privately held technology company located in Denmark to enhance the Company’s product offerings, for an aggregate purchase price of $3.5 million. The Company paid $3.0 million of the aggregate purchase price at the time of acquisition and $0.5 million during the three months ended September 30, 2018. In addition, the Company issued 0.1 million shares of its Class B common stock to two of the founders as part of a continuing services arrangement. The shares are subject to a right of repurchase which lapses over a three year period at varying prices per share.

The purchase price allocation includes $1.4 million of goodwill and $2.2 million of identifiable intangible assets, which primarily consist of developed technology, with an expected useful life of approximately four years. Goodwill represents the excess of the purchase price over the fair value of the assets acquired less liabilities assumed, and is not expected to be deductible for income tax purposes. The goodwill is primarily attributable to the acquired workforce and expected operating synergies.

Accounts Receivable, Net of allowances—Accounts receivable, net of allowances, consisted of the following (in thousands):

Allowance for Sales Returns—Allowance for sales returns consisted of the following activities (in thousands):

Allowance for Sales Incentives—Allowance for sales incentives consisted of the following activities (in thousands):

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

Depreciation and amortization expense for the three months ended September 30, 2018 and 2017 was $2.1 million and $1.3 million, respectively. Depreciation and amortization expense for the nine months ended September 30, 2018 and 2017 was $5.4 million and $3.9 million, respectively.

Accounts Payable and Accrued Liabilities—Accounts payable and accrued liabilities consisted of the following (in thousands):

	September 30, 2018		December 31, 2017
Accounts payable	$	55,298	$	56,413
Accrued royalty expense		6,182		17,165
Accrued inventory		22,857		2,382
Accrued payroll and related expenses		7,195		8,699
Accrued cost of revenue		15,628		12,210
Accrued payments to content publishers		28,815		24,037
Taxes and related liabilities		1,135		1,463
Customer prepayments		2,951		545
Other accrued expenses		7,194		5,843
Total Accounts Payable and Accrued Liabilities	$	147,255	$	128,757

The following is a summary of the Company’s short-term investments (in thousands):

Tax amounts related to unrealized losses are not material for all periods presented.

The following table summarizes the maturities of the Company’s short-term investments by contractual maturity (in thousands):

The Company’s financial assets measured at fair value are as follows (in thousands):

		Page
PART I.	FINANCIAL INFORMATION	1
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Balance Sheets	1
	Condensed Consolidated Statements of Operations	2
	Condensed Consolidated Statements of Comprehensive Loss	3
	Condensed Consolidated Statement of Stockholders’ Equity	4
	Condensed Consolidated Statements of Cash Flows	5
	Notes to Unaudited Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34
Item 4.	Controls and Procedures	34
PART II.	OTHER INFORMATION	35
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	60
Item 3.	Defaults Upon Senior Securities	61
Item 4.	Mine Safety Disclosures	61
Item 5.	Other Information	61
Item 6.	Exhibits	62
Signatures		63

	September 30, 2018			December 31, 2017
Gross accounts receivable	$	146,156		$	138,292
Allowance for sales returns		(4,221	)		(6,907	)
Allowance for sales incentives		(7,271	)		(10,442	)
Other allowances		(769	)		(390	)
Total allowances		(12,261	)		(17,739	)
Total Accounts Receivable—net of allowances	$	133,895		$	120,553

	September 30, 2018			December 31, 2017
Beginning balance	$	(6,907	)	$	(6,916	)
Charged to revenue		(10,239	)		(19,089	)
Utilization of sales return reserve		12,925			19,098
Ending balance	$	(4,221	)	$	(6,907	)

	September 30, 2018			December 31, 2017
Beginning balance	$	(10,442	)	$	(8,503	)
Charged to revenue		(24,017	)		(44,264	)
Utilization of sales incentive reserve		27,188			42,325
Ending balance	$	(7,271	)	$	(10,442	)

	September 30, 2018			December 31, 2017
Computers and equipment	$	14,870		$	11,631
Leasehold improvements		16,615			8,437
Website and internal-use software		6,745			5,461
Office equipment and furniture		3,099			1,987
Total property and equipment		41,329			27,516
Accumulated depreciation and amortization		(18,069	)		(12,780	)
Property and Equipment, net	$	23,260		$	14,736

	September 30, 2018		December 31, 2017
Platform, current	$	23,681	$	19,022
Player, current		14,862		15,479
Total deferred revenue, current		38,543		34,501
Platform, non-current		8,300		42,674
Player, non-current		5,076		5,837
Total deferred revenue, non-current		13,376		48,511
Total Deferred Revenue (See Note 12)	$	51,919	$	83,012

	September 30, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Loss			Fair Value
Corporate bonds and commercial paper	$	37,095	$	—	$	(5	)	$	37,090
U.S. government securities		4,969		—		(2	)		4,967
Total Short-Term Investments	$	42,064	$	—	$	(7	)	$	42,057