Balance Sheet Components

3 Months Ended

Mar. 31, 2019

4. Balance sheet components

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

	March 31, 2019			December 31, 2018
Gross accounts receivable	$	185,971		$	204,975
Allowance for sales returns		(4,596	)		(7,335	)
Allowance for sales incentives		(6,183	)		(13,750	)
Other allowances		(997	)		(812	)
Total allowances		(11,776	)		(21,897	)
Total Accounts Receivable—net of allowances	$	174,195		$	183,078

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

	March 31, 2019			December 31, 2018
Beginning balance	$	(7,335	)	$	(6,907	)
Charged to revenue		(2,222	)		(17,396	)
Utilization of sales return reserve		4,961			16,968
Ending balance	$	(4,596	)	$	(7,335	)

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

	March 31, 2019			December 31, 2018
Beginning balance	$	(13,750	)	$	(10,442	)
Charged to revenue		(7,980	)		(50,958	)
Utilization of sales incentive reserve		15,547			47,650
Ending balance	$	(6,183	)	$	(13,750	)

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

	March 31, 2019			December 31, 2018
Computers and equipment	$	17,093		$	16,056
Leasehold improvements		25,544			18,396
Website and internal-use software		6,423			6,423
Office equipment and furniture		4,107			4,069
Total property and equipment		53,167			44,944
Accumulated depreciation and amortization		(22,390	)		(19,680	)
Property and Equipment, net	$	30,777		$	25,264

Depreciation and amortization expense for the three months ended March 31, 2019 and 2018 was $2.7 million and $1.5 million, respectively.

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

	March 31, 2019		December 31, 2018
Accounts payable	$	44,622	$	56,576
Accrued royalty expense		5,024		7,939
Accrued inventory		7,566		6,008
Accrued payroll and related expenses		8,228		12,217
Accrued cost of revenue		17,658		22,830
Accrued payments to content publishers		39,576		32,463
Operating lease liability, current		14,208		—
Taxes and related liabilities		331		1,314
Customer prepayments		2,700		3,124
Other accrued expenses		7,010		6,091
Total Accounts Payable and Accrued Liabilities	$	146,923	$	148,562

Deferred Revenue—Deferred revenue consisted of the following (in thousands):

	March 31, 2019		December 31, 2018
Platform, current	$	24,789	$	28,569
Player, current		17,150		16,873
Total deferred revenue, current		41,939		45,442
Platform, non-current		8,783		12,783
Player, non-current		6,514		6,811
Total deferred revenue, non-current		15,297		19,594
Total Deferred Revenue	$	57,236	$	65,036