(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||||||||||||
(Nasdaq Global Select Market) | ||||||||||||||
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. | ||||||||
As of | |||||||||||
September 30, 2021 | December 31, 2020 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term investments | |||||||||||
Trade and other receivables, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of-use asset | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and stockholders' (deficit) equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued and other current liabilities | |||||||||||
Accrued compensation and benefits | |||||||||||
Operating lease liability | |||||||||||
Finance lease obligation | |||||||||||
Deferred revenue | |||||||||||
Total current liabilities | |||||||||||
Operating lease liability, non-current | |||||||||||
Finance lease obligation, non-current | |||||||||||
Convertible senior notes, net, non-current | |||||||||||
Other non-current liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 10) | |||||||||||
Stockholders' (deficit) equity: | |||||||||||
Additional paid-in-capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive income | |||||||||||
Total stockholders' (deficit) equity | ( | ||||||||||
Total liabilities and stockholders' (deficit) equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Cost of revenue(1) | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses(1) | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Sales and marketing | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Impairment related to real estate assets | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Interest income (expense), net | ( | ( | |||||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Provision for income taxes | ( | ( | ( | ( | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Net income per share-basic and diluted: | |||||||||||||||||||||||
Basic net income per share | $ | $ | $ | $ | |||||||||||||||||||
Diluted net income per share | $ | $ | $ | $ | |||||||||||||||||||
Weighted-average shares used in computing net income per share attributable to common stockholders, basic | |||||||||||||||||||||||
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Cost of revenue | $ | $ | $ | $ | |||||||||||||||||||
Research and development | |||||||||||||||||||||||
Sales and marketing | |||||||||||||||||||||||
General and administrative(2) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Change in foreign currency translation adjustments | ( | ||||||||||||||||||||||
Change in net unrealized gains and losses on short-term investments | ( | ( | ( | ||||||||||||||||||||
Total other comprehensive income (loss) | $ | ( | $ | ( | $ | ( | $ | ||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Three Months Ended September 30, 2021 | Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A and Class B Common Stock | Additional paid in capital | Accumulated deficit | Accumulated other comprehensive income | Total stockholders' (deficit) equity | Class A and Class B common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income (loss) | Total stockholders’ equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at beginning of period | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Release of restricted stock units and awards | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement of restricted stock units and awards | ( | — | ( | ( | — | ( | ( | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | — | ( | ( | — | ( | ( | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options and awards | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax benefit attributable to bond hedges purchased in connection with issuance of convertible senior notes | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at end of period | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | ( | $ | $ |
Nine Months Ended September 30, 2021 | Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A and Class B Common Stock | Additional paid in capital | Accumulated deficit | Accumulated other comprehensive income | Total stockholders' (deficit) equity | Class A and Class B common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income | Total stockholders’ equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at beginning of period | $ | $ | $ | ( | $ | $ | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Release of restricted stock units and awards | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement of restricted stock units and awards | ( | — | ( | ( | — | ( | ( | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | — | ( | ( | — | ( | ( | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options and awards | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assumed stock options in connection with acquisition | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of bond hedges in connection with issuance of convertible senior notes | — | — | ( | — | — | ( | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale of warrants in connection with issuance of convertible senior notes | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax benefit attributable to bond hedges purchased in connection with issuance of convertible senior notes | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | ( | ( | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at end of period | $ | $ | $ | ( | $ | $ | ( | $ | $ | $ | ( | $ | $ |
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash flow from operating activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation | |||||||||||
Impairment related to real estate assets | |||||||||||
Amortization of debt issuance costs | |||||||||||
Net gains on equity investments | ( | ||||||||||
Amortization of deferred commissions | |||||||||||
Other | ( | ( | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Trade and other receivables, net | ( | ||||||||||
Prepaid expenses and other current assets | ( | ( | |||||||||
Other assets | |||||||||||
Accounts payable | ( | ||||||||||
Accrued and other current liabilities | ( | ||||||||||
Accrued compensation and benefits | ( | ( | |||||||||
Deferred revenue | |||||||||||
Other non-current liabilities | ( | ( | |||||||||
Tenant improvement allowance reimbursement | |||||||||||
Net cash provided by operating activities | |||||||||||
Cash flow from investing activities | |||||||||||
Capital expenditures | ( | ( | |||||||||
Business combinations, net of cash acquired | ( | ||||||||||
Purchases of short-term investments | ( | ( | |||||||||
Proceeds from sales of short-term investments | |||||||||||
Proceeds from maturities of short-term investments | |||||||||||
Other | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flow from financing activities | |||||||||||
Proceeds from issuance of convertible senior notes | |||||||||||
Purchases of convertible note hedge in connection with issuance of convertible senior notes | ( | ||||||||||
Proceeds from sale of warrants in connection with issuance of convertible senior notes | |||||||||||
Payments of debt issuance costs | ( | ||||||||||
Payments for taxes related to net share settlement of restricted stock units and awards | ( | ( | |||||||||
Proceeds from issuance of common stock, net of taxes withheld | |||||||||||
Principal payments on finance lease obligations | ( | ( | |||||||||
Common stock repurchases | ( | ( | |||||||||
Other | ( | ||||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | ( | ||||||||||
Change in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents - beginning of period | |||||||||||
Cash and cash equivalents - end of period | $ | $ | |||||||||
Supplemental cash flow data: | |||||||||||
Property and equipment acquired under finance leases | $ | $ |
Property and equipment | Useful life | |||||||
Buildings | ||||||||
Datacenter and other computer equipment | ||||||||
Office equipment and other | ||||||||
Leasehold improvements | Lesser of estimated useful life or remaining lease term |
As of September 30, 2021 | |||||||||||||||||||||||
Amortized Cost | Unrealized Gain | Unrealized Loss | Estimated Fair Value | ||||||||||||||||||||
Cash | $ | $ | — | $ | — | $ | |||||||||||||||||
Cash equivalents | |||||||||||||||||||||||
Money market funds | — | — | $ | ||||||||||||||||||||
Commercial paper | — | — | $ | ||||||||||||||||||||
Certificates of deposit | — | — | $ | ||||||||||||||||||||
Corporate notes and obligations | — | — | |||||||||||||||||||||
Total cash & cash equivalents | $ | $ | — | $ | — | $ | |||||||||||||||||
Short-term investments | |||||||||||||||||||||||
Corporate notes and obligations | ( | ||||||||||||||||||||||
U.S. Treasury securities | ( | ||||||||||||||||||||||
Asset backed securities | ( | ||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
Municipal securities | ( | ||||||||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||
Foreign government obligations | |||||||||||||||||||||||
U.S. agency obligations | ( | ||||||||||||||||||||||
Supranational Securities | |||||||||||||||||||||||
Total short-term investments | ( | ||||||||||||||||||||||
Total | $ | $ | ( | $ |
As of December 31, 2020 | |||||||||||||||||||||||
Amortized Cost | Unrealized Gain | Unrealized Loss | Estimated Fair Value | ||||||||||||||||||||
Cash | $ | $ | — | $ | — | $ | |||||||||||||||||
Cash equivalents | |||||||||||||||||||||||
Money market funds | — | — | |||||||||||||||||||||
U.S. Treasury securities | — | — | |||||||||||||||||||||
Commercial paper | — | — | |||||||||||||||||||||
Corporate notes and obligations | — | — | |||||||||||||||||||||
Municipal securities | |||||||||||||||||||||||
Total cash and cash equivalents | $ | $ | — | $ | — | ||||||||||||||||||
Short-term investments | |||||||||||||||||||||||
Corporate notes and obligations | ( | ||||||||||||||||||||||
U.S. Treasury securities | |||||||||||||||||||||||
Asset backed securities | |||||||||||||||||||||||
Municipal securities | |||||||||||||||||||||||
U.S. agency obligations | |||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
Supranational Securities | |||||||||||||||||||||||
Foreign government obligations | |||||||||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||
Total short-term investments | ( | ||||||||||||||||||||||
Total | $ | $ | $ | ( | $ |
As of September 30, 2021 | |||||||||||
Amortized cost | Estimated fair value | ||||||||||
Due within one year | $ | $ | |||||||||
Due between one to three years | |||||||||||
Due after three years | |||||||||||
Total | $ | $ |
As of September 30, 2021 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Cash equivalents | |||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | |||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||
Corporate notes and obligations | |||||||||||||||||||||||
Total cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Short-term investments | |||||||||||||||||||||||
Corporate notes and obligations | |||||||||||||||||||||||
U.S. Treasury securities | |||||||||||||||||||||||
Asset backed securities | |||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
Municipal securities | |||||||||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||
Foreign government obligations | |||||||||||||||||||||||
U.S. agency obligations | |||||||||||||||||||||||
Supranational Securities | |||||||||||||||||||||||
Total short-term investments | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
As of December 31, 2020 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
Cash equivalents | |||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | |||||||||||||||||||
U.S. Treasury securities | |||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
Corporate notes and obligations | |||||||||||||||||||||||
Municipal securities | |||||||||||||||||||||||
Total Cash Equivalents | $ | $ | $ | $ | |||||||||||||||||||
Short-term investments | |||||||||||||||||||||||
Corporate notes and obligations | |||||||||||||||||||||||
U.S. Treasury securities | |||||||||||||||||||||||
Asset-backed securities | |||||||||||||||||||||||
Municipal securities | |||||||||||||||||||||||
U.S. agency obligations | |||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||
Supranational securities | |||||||||||||||||||||||
Foreign government obligations | |||||||||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||
Total short-term investments | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
As of | |||||||||||
September 30, 2021 | December 31, 2020 | ||||||||||
Data center and other computer equipment | $ | $ | |||||||||
Furniture and fixtures | |||||||||||
Leasehold improvements | |||||||||||
Construction in progress | |||||||||||
Total property and equipment | |||||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Property and equipment, net | $ | $ |
Purchase consideration | |||||
Cash paid to common and preferred stockholders and vested option holders | $ | ||||
Transaction costs paid by Dropbox on behalf of DocSend | |||||
Fair value of assumed DocSend options attributable to pre-combination services(1) | |||||
Purchase price adjustments | ( | ||||
Total purchase consideration | $ |
Assets acquired: | |||||
Cash and cash equivalents | $ | ||||
Acquisition-related intangible assets | |||||
Accounts receivable, prepaid and other assets | |||||
Total assets acquired | $ | ||||
Liabilities assumed: | |||||
Accounts payable, accrued and other liabilities | $ | ||||
Deferred revenue | |||||
Deferred tax liability | |||||
Total liabilities assumed | |||||
Net assets acquired, excluding goodwill | |||||
Total purchase consideration | |||||
Goodwill(2) | $ |
Estimated fair values | Estimated weighted average useful lives (In years) | ||||||||||
Developed technology | $ | ||||||||||
Customer relationships | |||||||||||
Trade name | |||||||||||
Total acquisition-related intangible assets | $ |
Purchase consideration | |||||
Cash paid to common and preferred stockholders and vested option holders | $ | ||||
Transaction costs paid by Dropbox on behalf of HelloSign | |||||
Fair value of assumed HelloSign options attributable to pre-combination services(1) | |||||
Purchase price adjustments | ( | ||||
Total purchase consideration | $ |
Assets acquired: | |||||
Cash and cash equivalents | $ | ||||
Short-term investments | |||||
Acquisition-related intangible assets | |||||
Accounts receivable, prepaid and other assets | |||||
Total assets acquired | $ | ||||
Liabilities assumed: | |||||
Accounts payable, accrued and other liabilities | $ | ||||
Deferred revenue | |||||
Deferred tax liability | |||||
Total liabilities assumed | |||||
Net assets acquired, excluding goodwill | |||||
Total purchase consideration | |||||
Goodwill(2) | $ |
Estimated fair values | Estimated weighted average useful lives (In years) | ||||||||||
Customer relationships | $ | ||||||||||
Developed technology | |||||||||||
Trade name | |||||||||||
Total acquisition-related intangible assets | $ |
As of September 30, | As of December 31, | Weighted- average remaining useful life (In years) As of September 30, | |||||||||||||||
2021 | 2020 | 2021 | |||||||||||||||
Developed technology | $ | $ | |||||||||||||||
Customer relationships | |||||||||||||||||
Patents | |||||||||||||||||
Software | |||||||||||||||||
Trademarks and trade names | |||||||||||||||||
Licenses | — | ||||||||||||||||
Assembled workforce in asset acquisitions | — | ||||||||||||||||
Other | |||||||||||||||||
Total intangibles | |||||||||||||||||
Accumulated amortization | ( | ( | |||||||||||||||
Intangible assets, net | $ | $ |
Remaining three months of Fiscal 2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total | $ |
Balance at December 31, 2020 | $ | ||||
DocSend acquisition | |||||
Effect of foreign currency translation | |||||
Balance at September 30, 2021 | $ |
2026 Notes | 2028 Notes | Total | |||||||||||||||
Principal balance | $ | $ | $ | ||||||||||||||
Unamortized issuance costs | ( | ( | ( | ||||||||||||||
Carrying value, net |
Convertible Debt | |||||
October 1, 2021 through December 31, 2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
Total | $ |
Year ending December 31, | Operating leases(1) | Finance leases | |||||||||
2021 (excluding the nine months ended September 30, 2021) | $ | $ | |||||||||
2022 | |||||||||||
2023 | |||||||||||
2024 | |||||||||||
2025 | |||||||||||
Thereafter | |||||||||||
Total future minimum lease payments | |||||||||||
Less imputed interest | ( | ( | |||||||||
Less tenant improvement receivables | ( | ||||||||||
Total liability | $ | $ |
Year ending December 31, | Operating leases | ||||
2021 (excluding the nine months ended September 30, 2021) | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total future sublease rent payments | |||||
Less sub-tenant incentive | ( | ||||
Total future sublease rent payments, net | $ |
As of | |||||||||||
September 30, 2021 | December 31, 2020 | ||||||||||
Non-income taxes payable | $ | $ | |||||||||
Accrued legal and other external fees | |||||||||||
Other accrued and current liabilities | |||||||||||
Total accrued and other current liabilities | $ | $ |
Options outstanding | Restricted stock outstanding | ||||||||||||||||||||||||||||||||||||||||
Number of shares available for issuance under the Plans | Number of shares outstanding under the Plans | Weighted- average exercise price per share | Weighted- average remaining contractual term (In years) | Aggregate intrinsic value | Number of Plan shares outstanding | Weighted- average grant date fair value per share | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2020 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Additional shares authorized | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
Stock options assumed (1) | $ | — | — | — | |||||||||||||||||||||||||||||||||||||
Options exercised and restricted stock units and awards released | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||
Options and restricted stock units and awards canceled | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||
Shares withheld related to net share settlement of restricted stock units and awards | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Options and restricted stock units and awards granted | ( | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2021(2) | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Vested at September 30, 2021 | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||
Unvested at September 30, 2021 | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Intrinsic value of options exercised | $ | $ | $ | $ |
Expected volatility | % | ||||
Expected term (in years) | |||||
Risk-free interest rate | |||||
Dividend yield | % |
Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Class A | Class B | Class A | Class B | ||||||||||||||||||||
Basic net income per share: | |||||||||||||||||||||||
Numerator | |||||||||||||||||||||||
Net income attributable to common stockholders | $ | $ | $ | $ | |||||||||||||||||||
Denominator | |||||||||||||||||||||||
Weighted-average number of common shares outstanding used in computing basic net income per share | |||||||||||||||||||||||
Net income per common share, basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted net income per share: | |||||||||||||||||||||||
Numerator | |||||||||||||||||||||||
Net income attributable to common stockholders | $ | $ | $ | $ | |||||||||||||||||||
Reallocation of net income as a result of conversion of Class B to Class A common stock | |||||||||||||||||||||||
Reallocation of net income to Class B common stock | ( | ( | |||||||||||||||||||||
Net income attributable to common stockholders for diluted EPS | $ | $ | $ | $ | |||||||||||||||||||
Denominator | |||||||||||||||||||||||
Weighted-average number of common shares outstanding used in computing basic net income per share | |||||||||||||||||||||||
Weighted-average effect of dilutive restricted stock units and awards and employee stock options | |||||||||||||||||||||||
Conversion of Class B to Class A common stock | |||||||||||||||||||||||
Weighted-average number of common shares outstanding used in computing diluted net income per share | |||||||||||||||||||||||
Net income per common share, diluted | $ | $ | $ | $ |
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Class A | Class B | Class A | Class B | ||||||||||||||||||||
Basic net income per share: | |||||||||||||||||||||||
Numerator | |||||||||||||||||||||||
Net income attributable to common stockholders | $ | $ | $ | $ | |||||||||||||||||||
Denominator | |||||||||||||||||||||||
Weighted-average number of common shares outstanding used in computing basic net income per share | |||||||||||||||||||||||
Net income per common share, basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted net income per share: | |||||||||||||||||||||||
Numerator | |||||||||||||||||||||||
Net income attributable to common stockholders | $ | $ | $ | $ | |||||||||||||||||||
Reallocation of net income as a result of conversion of Class B to Class A common stock | |||||||||||||||||||||||
Reallocation of net income to Class B common stock | ( | ( | |||||||||||||||||||||
Net income attributable to common stockholders for diluted EPS | $ | $ | $ | $ | |||||||||||||||||||
Denominator | |||||||||||||||||||||||
Weighted-average number of common shares outstanding used in computing basic net income per share | |||||||||||||||||||||||
Weighted-average effect of dilutive restricted stock units and awards and employee stock options | |||||||||||||||||||||||
Conversion of Class B to Class A common stock | |||||||||||||||||||||||
Weighted-average number of common shares outstanding used in computing diluted net income per share | |||||||||||||||||||||||
Net income per common share, diluted | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Restricted stock units and awards | |||||||||||||||||||||||
Options to purchase shares of common stock | |||||||||||||||||||||||
Co-Founder Grants | |||||||||||||||||||||||
Convertible Senior Notes | |||||||||||||||||||||||
Warrants | |||||||||||||||||||||||
Total |
As of | |||||||||||
September 30, 2021 | December 31, 2020 | ||||||||||
United States | $ | $ | |||||||||
International (1) | |||||||||||
Total property and equipment, net | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
International (1) | |||||||||||||||||||||||
Total revenue | $ | $ | $ | $ |
As of | |||||||||||||||||
September 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||||||||
(In millions) | |||||||||||||||||
Total ARR | $2,218 | $2,022 | $1,981 |
As of | |||||||||||||||||
Constant Currency | September 30, 2021 | December 31, 2020 | September 30, 2020 | ||||||||||||||
(In millions) | |||||||||||||||||
Total ARR | $2,218 | $2,052 | $2,010 |
As of | |||||||||||||||||
September 30, 2021 | December 31, 2020 | September 30, 2020 | |||||||||||||||
(In millions) | |||||||||||||||||
Paying users | 16.49 | 15.48 | 15.25 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
ARPU | $ | 133.79 | $ | 128.03 | $ | 133.19 | $ | 127.06 |
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
(In millions) | |||||||||||
Net cash provided by operating activities | 567.1 | 400.1 | |||||||||
Capital expenditures | (20.8) | (67.8) | |||||||||
Free cash flow | $ | 546.3 | $ | 332.3 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Revenue | $ | 550.2 | $ | 487.4 | $ | 1,592.4 | $ | 1,409.8 | |||||||||||||||
Cost of revenue(1) | 112.0 | 103.2 | 328.4 | 308.8 | |||||||||||||||||||
Gross profit | 438.2 | 384.2 | 1,264.0 | 1,101.0 | |||||||||||||||||||
Operating expenses(1): | |||||||||||||||||||||||
Research and development | 187.3 | 183.3 | 554.0 | 550.9 | |||||||||||||||||||
Sales and marketing | 115.7 | 105.8 | 319.2 | 312.9 | |||||||||||||||||||
General and administrative | 57.9 | 65.1 | 169.3 | 167.6 | |||||||||||||||||||
Impairment related to real estate assets | — | — | 17.3 | — | |||||||||||||||||||
Total operating expenses | 360.9 | 354.2 | 1,059.8 | 1,031.4 | |||||||||||||||||||
Income from operations | 77.3 | 30.0 | 204.2 | 69.6 | |||||||||||||||||||
Interest income (expense), net | (1.7) | 0.1 | (3.8) | 2.6 | |||||||||||||||||||
Other income, net | 0.5 | 3.5 | 13.1 | 23.1 | |||||||||||||||||||
Income before income taxes | 76.1 | 33.6 | 213.5 | 95.3 | |||||||||||||||||||
Provision for income taxes | (0.5) | (0.9) | (2.3) | (5.8) | |||||||||||||||||||
Net income | $ | 75.6 | $ | 32.7 | $ | 211.2 | $ | 89.5 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Cost of revenue | $ | 6.0 | $ | 4.6 | $ | 17.3 | $ | 12.6 | |||||||||||||||
Research and development | 48.7 | 46.9 | 141.7 | 131.1 | |||||||||||||||||||
Sales and marketing | 5.9 | 8.9 | 19.0 | 25.1 | |||||||||||||||||||
General and administrative(2) | 12.2 | 15.3 | 36.6 | 23.3 | |||||||||||||||||||
Total stock-based compensation | $ | 72.8 | $ | 75.7 | $ | 214.6 | $ | 192.1 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(As a % of revenue) | |||||||||||||||||||||||
Revenue | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||||||||
Cost of revenue(1) | 20 | 21 | 21 | 22 | |||||||||||||||||||
Gross profit | 80 | 79 | 79 | 78 | |||||||||||||||||||
Operating expenses(1): | |||||||||||||||||||||||
Research and development | 34 | 38 | 35 | 39 | |||||||||||||||||||
Sales and marketing | 21 | 22 | 20 | 22 | |||||||||||||||||||
General and administrative | 11 | 13 | 11 | 12 | |||||||||||||||||||
Impairment related to real estate assets | — | — | 1 | — | |||||||||||||||||||
Total operating expenses | 66 | 73 | 68 | 73 | |||||||||||||||||||
Income from operations | 14 | 6 | 13 | 5 | |||||||||||||||||||
Interest income (expense), net | — | — | — | — | |||||||||||||||||||
Other income, net | — | 1 | 1 | 2 | |||||||||||||||||||
Income before income taxes | 14 | 7 | 13 | 7 | |||||||||||||||||||
Provision for income taxes | — | — | — | — | |||||||||||||||||||
Net income | 13 | % | 7 | % | 13 | % | 6 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(As a % of revenue) | |||||||||||||||||||||||
Cost of revenue | 1 | % | 1 | % | 1 | % | 1 | % | |||||||||||||||
Research and development | 9 | 10 | 9 | 9 | |||||||||||||||||||
Sales and marketing | 1 | 2 | 1 | 2 | |||||||||||||||||||
General and administrative(2) | 2 | 3 | 2 | 2 | |||||||||||||||||||
Total stock-based compensation | 12 | % | 16 | % | 12 | % | 14 | % |
Three Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Revenue | $ | 550.2 | $ | 487.4 | $ | 62.8 | 12.9 | % |
Three Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Cost of revenue | $ | 112.0 | $ | 103.2 | $ | 8.8 | 8.5 | % | |||||||||||||||
Gross profit | 438.2 | 384.2 | 54.0 | 14.1 | % | ||||||||||||||||||
Gross margin | 80 | % | 79 | % |
Three Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Research and development | $ | 187.3 | $ | 183.3 | $ | 4.0 | 2.2 | % |
Three Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Sales and marketing | $ | 115.7 | $ | 105.8 | $ | 9.9 | 9.4 | % |
Three Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
General and administrative | $ | 57.9 | $ | 65.1 | $ | (7.2) | (11.1) | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Revenue | $ | 1,592.4 | $ | 1,409.8 | $ | 182.6 | 13.0 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Cost of revenue | $ | 328.4 | $ | 308.8 | $ | 19.6 | 6.3 | % | |||||||||||||||
Gross profit | 1,264.0 | 1,101.0 | 163.0 | 14.8 | % | ||||||||||||||||||
Gross margin | 79 | % | 78 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Research and development | $ | 554.0 | $ | 550.9 | $ | 3.1 | 0.6 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Sales and marketing | $ | 319.2 | $ | 312.9 | $ | 6.3 | 2.0 | % |
Nine Months Ended September 30, | |||||||||||||||||||||||
2021 | 2020 | $ Change | % Change | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
General and administrative | $ | 169.3 | $ | 167.6 | $ | 1.7 | 1.0 | % |
Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
(In millions) | |||||||||||
Net cash provided by operating activities | $ | 567.1 | $ | 400.1 | |||||||
Net cash used in investing activities | (560.1) | (191.6) | |||||||||
Net cash provided by (used in) financing activities | 368.5 | (307.9) | |||||||||
Effect of exchange rate changes on cash and cash equivalents | (1.5) | 0.8 | |||||||||
Net increase (decrease) in cash and cash equivalents | $ | 374.0 | $ | (98.6) |
Period | Total Number of Shares Purchased (in millions)(1) | Average Price Paid per Share(2) | Total Number of Shares Purchased as Part of Publicly Announced Programs (in millions)(1) | Approximate Dollar Value of Shares that May Yet Be Purchased Under Publicly Announced Programs (in millions)(1) | ||||||||||||||||||||||
July 1 - 31 | 1.03 | $ | 30.67 | 1.03 | $ | 787.96 | ||||||||||||||||||||
August 1 - 31 | 2.15 | $ | 31.31 | 2.15 | $ | 720.52 | ||||||||||||||||||||
September 1 - 30 | 2.65 | $ | 30.91 | 2.65 | $ | 638.50 | ||||||||||||||||||||
Total | 5.83 | $ | 31.00 | 5.83 | ||||||||||||||||||||||
Exhibit Number | Description | Form | File Number | Incorporated by Reference from Exhibit Number | Filed with SEC | |||||||||||||||||||||||||||
31.1 | ||||||||||||||||||||||||||||||||
31.2 | ||||||||||||||||||||||||||||||||
32.1† | ||||||||||||||||||||||||||||||||
101 | The following financial statements from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2021, formatted in Inline XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statement of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Cash Flows, (v) Condensed Consolidated Statements of Stockholders' (Deficit) Equity, and (vi) Notes to Unaudited Condensed Consolidated Financial Statements. | |||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
DROPBOX, INC. | ||||||||||||||
Date: | November 5, 2021 | By: | /s/Andrew W. Houston | |||||||||||
Andrew W. Houston | ||||||||||||||
Chief Executive Officer | ||||||||||||||
(Principal Executive Officer) |
Date: | November 5, 2021 | By: | /s/ Timothy J. Regan | |||||||||||
Timothy J. Regan | ||||||||||||||
Chief Financial Officer | ||||||||||||||
(Principal Accounting and Financial Officer) |
DROPBOX, INC. | ||||||||
By: | /s/Andrew W. Houston | |||||||
Name: | Andrew W. Houston | |||||||
Title: | Chief Executive Officer (Principal Executive Officer) |
DROPBOX, INC. | ||||||||
By: | /s/Timothy J. Regan | |||||||
Name: | Timothy J. Regan | |||||||
Title: | Chief Financial Officer (Principal Accounting and Financial Officer) |
Date: | November 5, 2021 | By: | /s/Andrew W. Houston | ||||||||
Name: | Andrew W. Houston | ||||||||||
Title: | Chief Executive Officer | ||||||||||
(Principal Executive Officer) |
Date: | November 5, 2021 | By: | /s/Timothy J. Regan | ||||||||
Name: | Timothy J. Regan | ||||||||||
Title: | Chief Financial Officer | ||||||||||
(Principal Accounting and Financial Officer) |
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
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Income Statement [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | $ 550.2 | $ 487.4 | $ 1,592.4 | $ 1,409.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenue | [1] | 112.0 | 103.2 | 328.4 | 308.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 438.2 | 384.2 | 1,264.0 | 1,101.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and development | [1] | 187.3 | 183.3 | 554.0 | 550.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales and marketing | [1] | 115.7 | 105.8 | 319.2 | 312.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative | [1] | 57.9 | 65.1 | 169.3 | 167.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment related to real estate assets | [1] | 0.0 | 0.0 | 17.3 | 0.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | [1] | 360.9 | 354.2 | 1,059.8 | 1,031.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from operations | 77.3 | 30.0 | 204.2 | 69.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income (expense), net | (1.7) | 0.1 | (3.8) | 2.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income, net | 0.5 | 3.5 | 13.1 | 23.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 76.1 | 33.6 | 213.5 | 95.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for income taxes | (0.5) | (0.9) | (2.3) | (5.8) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ 75.6 | $ 32.7 | $ 211.2 | $ 89.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic net income per share (in dollars per share) | $ 0.20 | $ 0.08 | $ 0.54 | $ 0.22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diluted net income per share (in dollars per share) | $ 0.19 | $ 0.08 | $ 0.53 | $ 0.21 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average shares used in computing net income per share attributable to common stockholders, basic (in shares) | 385.5 | 414.2 | 390.6 | 415.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average shares used in computing net income per share attributable to common stockholders, diluted (in shares) | 398.1 | 419.9 | 400.3 | 419.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|
Mar. 19, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
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Reversal of stock based compensation expense | $ 23.8 | ||||||
Reversal of stock based compensation expense previously recognized | $ 21.5 | ||||||
Cost of revenue | |||||||
Allocated share-based compensation expense | $ 6.0 | $ 4.6 | $ 17.3 | $ 12.6 | |||
Research and development | |||||||
Allocated share-based compensation expense | 48.7 | 46.9 | 141.7 | 131.1 | |||
Sales and marketing | |||||||
Allocated share-based compensation expense | 5.9 | 8.9 | 19.0 | 25.1 | |||
General and administrative | |||||||
Allocated share-based compensation expense | [1] | $ 12.2 | $ 15.3 | $ 36.6 | $ 23.3 | ||
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Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 75.6 | $ 32.7 | $ 211.2 | $ 89.5 |
Other comprehensive income (loss): | ||||
Change in foreign currency translation adjustments | 0.2 | 0.0 | (0.5) | 0.0 |
Change in net unrealized gains and losses on short-term investments | (1.2) | (0.6) | (5.6) | 3.5 |
Total other comprehensive income (loss) | (1.0) | (0.6) | (6.1) | 3.5 |
Comprehensive income | $ 74.6 | $ 32.1 | $ 205.1 | $ 93.0 |
Description of the Business and Summary of Significant Accounting Policies |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of the Business and Summary of Significant Accounting Policies | Description of the Business and Summary of Significant Accounting Policies Business Dropbox, Inc. (the “Company” or “Dropbox”) helps keep life organized and work moving. Dropbox was incorporated in May 2007 as Evenflow, Inc., a Delaware corporation, and changed its name to Dropbox, Inc. in October 2009. The Company is headquartered in San Francisco, California. Basis of presentation and consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the United States of America generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the SEC regarding interim financial reporting. The accompanying unaudited condensed consolidated financial statements include the accounts of Dropbox and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated balance sheet as of December 31, 2020 included herein was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheets, statements of operations, statements of comprehensive income, statements of stockholders' (deficit) equity and the statements of cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ended December 31, 2021 or any future period. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto as of and for the year ended December 31, 2020, included in the Company's Annual Report on Form 10-K on file with the SEC ("Annual Report"). Use of estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the Company’s condensed consolidated financial statements and accompanying notes. These estimates are based on information available as of the date of the condensed consolidated financial statements. Management evaluates these estimates and assumptions on a regular basis. Actual results may differ materially from these estimates. The Company’s most significant estimates and judgments involves the valuation of acquired intangible assets and goodwill from business combinations as well as the valuation of right-of-use and other lease related assets. Financial information about segments and geographic areas The Company manages its operations and allocates resources as a single operating segment. Further, the Company manages, monitors, and reports its financials as a single reporting segment. The Company’s chief operating decision-maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. See Note 15 "Geographic Areas" for information regarding the Company’s long-lived assets and revenue by geography. Foreign currency transactions The assets and liabilities of the Company’s foreign subsidiaries are translated from their respective functional currencies into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue and expense amounts are translated at the average exchange rate for the period. Foreign currency translation gains and losses are recorded in other comprehensive income. Gains and losses realized from foreign currency transactions (those transactions denominated in currencies other than the foreign subsidiaries’ functional currency) are included in other income, net. Monetary assets and liabilities are remeasured using foreign currency exchange rates at the end of the period, and non-monetary assets are remeasured based on historical exchange rates. The Company recorded net foreign currency transaction losses of $1.4 million and $0.8 million during the three and nine months ended September 30, 2021, respectively, and net foreign currency transaction gains of $2.1 million during the three and nine months ended September 30, 2020, respectively. Revenue recognition The Company derives its revenue from subscription fees from customers for access to its platform. The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price of its subscription agreements. The Company accounts for revenue contracts with customers through the following steps: •Identification of the contract, or contracts, with a customer •Identification of the performance obligations in the contract •Determination of the transaction price •Allocation of the transaction price to the performance obligations in the contract •Recognition of revenue when, or as, the Company satisfies a performance obligation The Company’s subscription agreements generally have monthly or annual contractual terms and a small percentage have multi-year contractual terms. Revenue is recognized ratably over the related contractual term beginning on the date that the platform is made available to a customer. Access to the platform represents a series of distinct services as the Company continually provides access to, and fulfills its obligation to the end customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. The Company recognizes revenue ratably because the customer receives and consumes the benefits of the platform throughout the contract period. The Company’s contracts are generally non-cancelable. The Company bills in advance for monthly contracts and typically bills annually in advance for contracts with terms of one year or longer. The Company also recognizes an immaterial amount of contract assets, or unbilled receivables, primarily relating to consideration for services completed but not billed at the reporting date. Unbilled receivables are classified as receivables when the Company has the right to invoice the customer. The Company records contract liabilities when cash payments are received or due in advance of performance to deferred revenue. Deferred revenue primarily relates to the advance consideration received from the customer. The price of subscriptions is generally fixed at contract inception and therefore, the Company’s contracts do not contain a significant amount of variable consideration. As a result, the amount of revenue recognized in the periods presented from performance obligations satisfied (or partially satisfied) in previous periods was not material. The Company recognized $312.1 million and $574.3 million of revenue during the three and nine months ended September 30, 2021, respectively, and recognized $277.0 million and $522.7 million of revenue during the three and nine months ended September 30, 2020, respectively, that was included in the deferred revenue balances at the beginning of their respective periods. As of September 30, 2021, future estimated revenue related to performance obligations that were unsatisfied or partially unsatisfied was $725.5 million. The substantial majority of the unsatisfied performance obligations will be satisfied over the next twelve months. Stock-based compensation The Company has primarily granted restricted stock units ("RSUs") to its employees and members of the Board of Directors under the 2008 Equity Incentive Plan (“2008 Plan”), the 2017 Equity Incentive Plan (“2017 Plan”), and the 2018 Equity Incentive Plan ("2018 Plan" and together with the 2008 Plan and 2017 Plan, the "Dropbox Equity Incentive Plans"). The RSUs granted by the Company under the Dropbox Equity Incentive Plans have a service-based vesting condition over a four-year period. These awards typically have a cliff vesting period of one year and continue to vest quarterly thereafter. The Company recognizes compensation expense associated with RSUs ratably on a straight-line basis over the requisite service period and accounts for forfeitures in the period in which they occur. As of September 30, 2021, the Company had RSUs and restricted stock awards ("RSAs") granted to certain executives outstanding under the Dropbox Equity Incentive Plans. The fair values of the common stock underlying the RSUs granted in periods prior to the date of the Company's initial public offering ("IPO") were determined by the Board of Directors, with input from management and contemporaneous third-party valuations, which were performed at least quarterly. For valuations after the Company's IPO, the Board of Directors determines the fair value of each share of underlying common stock based on the closing price of the Company's Class A common stock as reported on the Nasdaq Global Select Market on the date of the grant. In connection with the acquisition of DocSend, Inc. ("DocSend"), the Company assumed unvested stock options and an immaterial number of unvested RSUs that had been granted under DocSend's 2013 Stock Plan and DocSend's 2015 Stock Option and Grant Plan. The fair value of the DocSend options assumed were based upon the Black-Scholes option-pricing model. See Note 12 "Stockholders' (Deficit) Equity" for further information. In December 2017, the Board of Directors approved a grant to the Company’s co-founders of RSAs with respect to 14.7 million shares of Class A common stock in the aggregate (collectively, the “Co-Founder Grants”), of which 10.3 million RSAs were granted to Mr. Houston, the Company’s co-founder and Chief Executive Officer, and 4.4 million RSAs were granted to Mr. Ferdowsi, the Company's co-founder and a former director. These Co-Founder Grants have service-based, market-based, and performance-based vesting conditions. The Company estimated the grant date fair value of the Co-Founder Grants using a model based on multiple stock price paths developed through the use of a Monte Carlo simulation that incorporates into the valuation the possibility that the Stock Price Targets may not be satisfied. Effective March 19, 2020, Mr. Ferdowsi resigned as a member of the Board of Directors and as an officer of the Company. As of the date of Mr. Ferdowsi's resignation, none of the Stock Price Targets had been met, resulting in the forfeiture of all of his 4.4 million RSAs. See Note 12 "Stockholders' (Deficit) Equity" for further information. During the third quarter of 2021, the Stock Price Target for the first tranche of Mr. Houston's Co-Founder Grant was achieved. As a result, the first tranche of Mr. Houston's Co-Founder Grant will vest in the fourth quarter of 2021, provided that the requisite service will be met through the vesting date. The stock-based compensation expense for Mr. Houston's Co-Founder Grant is recognized utilizing the accelerated attribution method, and therefore no incremental stock-based compensation will be recognized as a result of this release. Cost of revenue Cost of revenue consists primarily of expenses associated with the storage, delivery, and distribution of the Company’s platform for both paying users and free users. These costs, which are referred to as infrastructure costs, include depreciation of servers located in co-location facilities that the Company leases and operates, rent and facilities expense for those datacenters, network and bandwidth costs, support and maintenance costs for infrastructure equipment, and payments to third-party datacenter service providers. Cost of revenue also includes costs, such as salaries, bonuses, benefits, travel-related expenses, and stock-based compensation, which are referred to as employee-related costs, for employees whose primary responsibilities relate to supporting the Company’s infrastructure and delivering user support. Other non-employee costs included in cost of revenue include credit card fees related to processing customer transactions and allocated overhead, such as facilities, including rent, utilities, depreciation on leasehold improvements and other equipment shared by all departments, and shared information technology costs. In addition, cost of revenue includes amortization of developed technologies, professional fees related to user support initiatives, and property taxes related to the datacenters. Cash and cash equivalents Cash consists primarily of cash on deposit with banks and includes amounts in transit from payment processors for credit and debit card transactions, which typically settle within five business days. Cash equivalents include highly liquid investments purchased with an original maturity date of 90 days or less from the date of purchase. The Company monitors its credit risk by considering factors such as historical experience, credit ratings, current economic conditions, and reasonable and supportable forecasts. Short-term investments The Company’s short-term investments are primarily comprised of corporate notes and obligations, U.S. Treasury securities, certificates of deposit, asset-backed securities, commercial paper, U.S. agency obligations, foreign government securities, supranational securities and municipal securities. The Company determines the appropriate classification of its short-term investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its short-term investments as available-for-sale securities as the Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. As a result, the Company classifies its short-term investments, including securities with stated maturities beyond twelve months, within current assets in the condensed consolidated balance sheets. The Company's short-term investments are recorded at fair value each reporting period. Unrealized gains and losses on these short-term investments are reported as a separate component of accumulated other comprehensive income in the condensed consolidated balance sheets until realized. Unrealized gains and losses for any short-term investments that management intends to sell or it is more likely than not that management will be required to sell prior to their anticipated recovery are recorded in other income, net. The Company segments its portfolio based on the underlying risk profiles of the securities and has a zero-loss expectation for U.S. treasury and U.S. government agency securities. The Company regularly reviews the securities in an unrealized loss position and evaluates the current expected credit loss by considering factors such as credit ratings, issuer-specific factors, current economic conditions, and reasonable and supportable forecasts. The Company did not record any material credit losses during the three and nine months ended September 30, 2021. Concentrations of credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, accounts receivable, and short-term investments. The Company places its cash and cash equivalents and short-term investments with well-established financial institutions. Two distribution partners accounted for 15% and 33%, respectively, of total trade and other receivables, net as of September 30, 2021. Two distribution partners accounted for 11% and 28%, respectively, of total trade and other receivables, net as of December 31, 2020. No customer accounted for more than 10% of the Company’s revenue in the periods presented. Deferred commissions, net Deferred commissions, net is stated as gross deferred commissions less accumulated amortization. Sales commissions earned by the Company’s sales force and third-party resellers, as well as related payroll taxes, are considered to be incremental and recoverable costs of obtaining a contract with a customer. These amounts have been capitalized as deferred commissions within prepaid and other current assets and other assets on the condensed consolidated balance sheets. The Company deferred incremental costs of obtaining a contract of $7.2 million and $17.0 million during the three and nine months ended September 30, 2021, respectively, and $8.6 million and $27.6 million during the three and nine months ended September 30, 2020, respectively. Deferred commissions, net included in prepaid and other current assets were $30.1 million and $26.7 million as of September 30, 2021 and December 31, 2020, respectively. Deferred commissions, net included in other assets were $37.3 million and $47.3 million as of September 30, 2021 and December 31, 2020, respectively. Commissions related to new contracts are typically deferred and amortized over a period of benefit of five years. The period of benefit was estimated by considering factors such as historical customer attrition rates, the useful life of the Company’s technology, and the impact of competition in its industry. Commissions that are commensurate with renewal commissions are typically amortized over one year. Amortized costs were $8.2 million and $23.6 million for the three and nine months ended September 30, 2021, respectively, and $6.7 million and $17.5 million for the three and nine months ended September 30, 2020, respectively. Amortized costs are included in sales and marketing expense in the accompanying condensed consolidated statements of operations. There was no material impairment loss in relation to the deferred costs during the three and nine months ended September 30, 2021. Property and equipment, net Equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful life of the related asset, which is generally to seven years. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of the related lease. The following table presents the estimated useful lives of property and equipment:
Lease obligations The Company leases office space, data centers, and equipment under non-cancelable finance and operating leases with various expiration dates through 2036. The Company determines if an arrangement contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at the present value of the future lease payments at commencement date. The interest rate implicit in the Company’s operating leases is not readily determinable, and therefore an incremental borrowing rate is estimated to determine the present value of future payments. The estimated incremental borrowing rate factors in a hypothetical interest rate on a collateralized basis with similar terms, payments, and economic environments. Operating lease right-of-use assets also include any prepaid lease payments and lease incentives. Certain of the operating lease agreements contain rent concession, rent escalation, and option to renew provisions. Rent concession and rent escalation provisions are considered in determining the single lease cost to be recorded over the lease term. Single lease cost is recognized on a straight-line basis over the lease term commencing on the date the Company has the right to use the leased property. The lease terms may include options to extend or terminate the lease. The Company generally uses the base, non-cancelable, lease term when recognizing the lease assets and liabilities, unless it is reasonably certain that the option will be exercised. In addition, certain operating lease agreements contain tenant improvement allowances from its landlords. These allowances are accounted for as lease incentives and decrease the Company's right-of-use asset and reduce single lease cost over the lease term. As part of the Company's Virtual First strategy, Dropbox will retain a portion of its office space to be used for the Company’s team collaboration use and a portion will be marketed for sublease. During the first quarter of 2021, the Company recorded an impairment charge of $17.3 million related to right-of-use assets and other lease related property and equipment assets. During the fourth quarter of 2020, the Company recorded an impairment charge of $398.2 million related to right-of-use assets and other lease related property and equipment assets. These impairment charges were recorded in conjunction with the Company's decision to move towards a Virtual First work model. See Note 9 "Leases" for further information. The Company leases certain equipment from various third parties, through equipment finance leases. These leases either include a bargain purchase option, a full transfer of ownership at the completion of the lease term, or the terms of the leases are at least 75 percent of the useful lives of the assets and are therefore classified as finance leases. These leases are capitalized in property and equipment, net and the related amortization of assets under finance leases is included in depreciation and amortization expense in the Company’s condensed consolidated statements of operations. Initial asset values and finance lease obligations are based on the present value of future minimum lease payments. The Company’s finance lease agreements may contain lease and non-lease components. The non-lease components include payments for support on infrastructure equipment obtained via finance leases, which when not significant in relation to the overall agreement, are combined with the lease components and accounted for together as a single lease component. Business combinations The Company uses best estimates and assumptions, including but not limited to, future expected cash flows, expected asset lives, and discount rates, to assign a fair value to the tangible and intangible assets acquired and liabilities assumed in business combinations as of the acquisition date. These estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s condensed consolidated statements of operations. Long-lived assets, including goodwill and other acquired intangible assets, net The Company evaluates the recoverability of its property and equipment and finite-lived intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review determines that the carrying amount of specific property and equipment or intangible assets is not recoverable, the carrying amount of such assets is reduced to its fair value. The Company reviews goodwill for impairment at least annually in the fourth quarter, or more frequently if events or changes in circumstances would more likely than not reduce the fair value of its single reporting unit below its carrying value. The Company has not recorded impairment charges on goodwill or intangible assets for the periods presented in these condensed consolidated financial statements. During the first quarter of 2021 and the fourth quarter of 2020, the Company recorded impairment charges in conjunction with the Company's decision to move towards a Virtual First work model. See Note 9 "Leases" for further information. Acquired property and equipment and finite-lived intangible assets are amortized over their useful lives. The Company evaluates the estimated remaining useful life of these assets when events or changes in circumstances warrant a revision to the remaining period of amortization. If the Company revises the estimated useful life assumption for any asset, the remaining unamortized balance is amortized or depreciated over the revised estimated useful life on a prospective basis. Income taxes Deferred income tax balances reflect the effects of temporary differences between the financial reporting and tax bases of the Company’s assets and liabilities using enacted tax rates expected to apply when taxes are actually paid or recovered. In addition, deferred tax assets are recorded for net operating loss and credit carryforwards. A valuation allowance is provided against deferred tax assets unless it is more likely than not that they will be realized based on all available positive and negative evidence. Such evidence includes, but is not limited to, recent cumulative earnings or losses, expectations of future taxable income by taxing jurisdiction, and the carry-forward periods available for the utilization of deferred tax assets. The Company uses a two-step approach to recognizing and measuring uncertain income tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company recognizes interest and penalties related to unrecognized tax benefits as income tax expense. Although the Company believes that it has adequately reserved for its uncertain tax positions, it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company evaluates its uncertain tax positions on a regular basis and evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of an audit, and effective settlement of audit issues. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on the Company’s financial condition and results of operations. Fair value measurement The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which it would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions, and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. Recently adopted accounting pronouncements In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). This ASU simplifies the accounting for convertible instruments and contracts in an entity’s own equity, as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Among other changes, the new guidance eliminates the requirement to separate the convertible debt into debt and equity components, unless the conversion feature is required to be bifurcated and accounted for as a derivative or the debt is issued at a substantial premium. As a result, after adopting the guidance, entities will no longer separately present such embedded conversion features in equity, and will instead account for the convertible debt wholly as debt. The ASU also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. Lastly, entities are required to use the if-converted method for convertible instruments in the diluted earnings per share calculation. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted, but only at the beginning of the fiscal year. This update permits the use of either the modified retrospective or fully retrospective method of transition. The Company early adopted this guidance as of January 1, 2021 using the modified retrospective approach. The adoption of the guidance did not have an impact on the Company’s financial statement as of the adoption date. As further discussed in Note 8 "Debt", the Company issued certain convertible senior notes and entered into certain contracts in the Company’s own equity during the nine months ended September 30, 2021, and the accounting for these instruments was based on the guidance in ASU 2020-06. Additionally, the impact on diluted earnings per share of the convertible senior notes was calculated based on the if-converted method, as further described in Note 13 "Net Income Per Share" for further information.
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Cash, Cash Equivalents and Short-Term Investments |
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Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Short-Term Investments | Cash, Cash Equivalents and Short-Term Investments The amortized cost, unrealized gains and losses and estimated fair value of the Company's cash, cash equivalents and short-term investments as of September 30, 2021 and December 31, 2020 consisted of the following:
Included in cash and cash equivalents is cash in transit from payment processors for credit and debit card transactions of $11.0 million and $9.8 million as of September 30, 2021 and December 31, 2020, respectively. All short-term investments were designated as available-for-sale securities as of September 30, 2021 and December 31, 2020. The following table presents the contractual maturities of the Company’s short-term investments as of September 30, 2021:
The Company had 460 short-term investments in unrealized loss positions as of September 30, 2021. There were no material unrealized losses from short-term investments and no material realized gains or losses from short-term investments that were reclassified out of accumulated other comprehensive income for the three and nine months ended September 30, 2021. As of September 30, 2021, the Company’s short-term investments portfolio consisted of nine security types, six of which were in an unrealized loss position. The Company’s short-term investments had unrealized losses of approximately $2.8 million as of September 30, 2021. Unrealized losses on short-term investments have not been recorded into income because management does not intend to sell nor will be required to sell these securities prior to their anticipated recovery, and for which the decline in fair value is largely due to changes in credit spreads. The credit ratings associated with the corporate notes and obligations are mostly unchanged, are highly rated and the issuers continue to make timely principal and interest payments.The Company recorded interest income from its cash, cash equivalents, and short-term investments of $1.7 million and $5.5 million during the three and nine months ended September 30, 2021, respectively, and $2.6 million and $10.4 million during the three and nine months ended September 30, 2020.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The Company measures its financial instruments at fair value each reporting period using a fair value hierarchy that prioritizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis using the input categories discussed in Note 1:
The Company has an investment in a non-marketable equity security in a privately held company without a readily determinable market value. The investments had a carrying value of $5.6 million and was categorized as Level 3 as of September 30, 2021 and December 31, 2020.
The Company had no transfers between levels of the fair value hierarchy. The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable and accounts payable approximate fair value due to their short-term maturities and are excluded from the fair value table above. The Company has $695.8 million in aggregate principal amount of 0% convertible senior notes due in 2026 (the "2026 Notes"), and $693.3 million in aggregate principal amount of 0% convertible senior notes due in 2028 (the "2028 Notes" and together with the 2026 Notes, the "Notes"), outstanding as of September 30, 2021. Refer to Note 8 "Debt" for further details on the 2026 Notes and 2028 Notes. The estimated fair value of the 2026 Notes and the 2028 Notes, based on a market approach as of September 30, 2021 was approximately $728.0 million and $743.0 million, respectively. The Notes were categorized as Level 2 instruments as the estimated fair value was determined based on the estimated or actual bids and offers of the Notes in an over-the-counter market on the last business day of the period.
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Property and Equipment, Net |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following:
The Company leases certain infrastructure, computer equipment, and furniture from various third parties, through equipment finance leases. Infrastructure assets as of September 30, 2021 and December 31, 2020, respectively, included a total of $484.8 million and $395.2 million acquired under finance lease agreements. These leases are capitalized in property and equipment, and the related amortization of assets under finance leases is included in depreciation and amortization expense. The accumulated depreciation of the equipment under finance leases totaled $230.6 million and $156.6 million as of September 30, 2021 and December 31, 2020, respectively. Construction in progress includes costs primarily related to construction of leasehold improvements for office spaces and data centers. Depreciation expense related to property and equipment was $34.8 million and $99.0 million for the three and nine months ended September 30, 2021, respectively, and $37.4 million and $109.9 million for the three and nine months ended September 30, 2020, respectively.
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Business Combinations |
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Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations | Business Combinations 2021 Business Combination On March 22, 2021, the Company acquired all outstanding stock of DocSend, a secure document sharing and analytics company. The combination of Dropbox, HelloSign, and DocSend will help customers across industries manage end-to-end document workflows—from content collaboration to sharing and e-signature—giving them more control over their business results. The results of DocSend's operations have been included in the Company’s consolidated results of operations since the date of acquisition and were immaterial for the periods presented. The purchase consideration transferred consisted of the following:
(1) The fair value of options assumed was determined based upon the Black-Scholes option-pricing model. In addition to the total purchase consideration above, the Company has compensation agreements with key DocSend personnel consisting of $30.7 million in future cash payments subject to ongoing employee service. The related expense will be recognized within sales and marketing and research and development expenses over the required service period of three years. The related payments will be paid out evenly on an annual basis in the first and second year, and in quarterly installments in the third year. Payments will begin in the first quarter of 2022 if the requisite service is provided. The purchase consideration was allocated to the tangible and intangible assets and liabilities acquired as of the acquisition date, with the excess recorded to goodwill as shown below. The fair value of assets and liabilities acquired may change as additional information is received during the measurement period. The measurement period will end no later than one-year from the acquisition date.
(2) The goodwill recognized was primarily attributable to the opportunity to expand the user base of the Company's platform. The goodwill is not deductible for U.S. federal income tax purposes. The fair value of the separately identifiable finite-lived intangible assets acquired and estimated weighted average useful lives are as follows:
The fair values of the acquisition-related intangible assets were determined using the following methodologies: the multi-period excess earnings method for customer relationships, and the relief from royalty method for developed technology, and the trade name, respectively. The valuation model inputs required the application of significant judgment by management. The acquired intangible assets have a total weighted average amortization period of 5.0 years. One-time acquisition-related diligence costs of $1.2 million were expensed within general and administrative expenses as incurred during the three months ended March 31, 2021. 2019 Business Combination On February 8, 2019, the Company acquired all outstanding stock of JN Projects, Inc. (d/b/a HelloSign) ("HelloSign"), which provides an e-signature and document workflow platform. The acquisition of HelloSign expands the Company's content collaboration capabilities to include additional business-critical workflows. The results of HelloSign operations have been included in the Company’s consolidated results of operations since the date of acquisition. The purchase consideration transferred consisted of the following:
(1) The fair value of options assumed were based upon the Black-Scholes option-pricing model. In addition to the total purchase consideration above, the Company has employee holdback agreements with key HelloSign personnel consisting of $48.5 million in cash payments subject to ongoing employee service. The related expenses are recognized within research and development expenses over the required service period of three years. The payments began in the first quarter of 2020, with $4.1 million and $12.1 million paid during the three and nine months ended September 30, 2021. The remaining balance of $8.0 million will be paid evenly in quarterly installments over the remaining required service period. The purchase consideration was allocated to the tangible and intangible assets and liabilities acquired as of the acquisition date, with the excess recorded to goodwill as shown below.
(2) The goodwill recognized was primarily attributable to the opportunity to expand the user base of the Company's platform. The goodwill is not deductible for U.S. federal income tax purposes. The fair value of the separately identifiable finite-lived intangible assets acquired and estimated weighted average useful lives are as follows:
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Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible Assets Intangible assets consisted of the following:
Amortization expense was $4.0 million and $11.2 million for the three and nine months ended September 30, 2021, respectively, and $3.6 million and $10.6 million for the three and nine months ended September 30, 2020, respectively. Expected future amortization expense for intangible assets as of September 30, 2021 is as follows:
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Goodwill |
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||
Goodwill | Goodwill Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. The changes in the carrying amounts of goodwill were as follows:
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Revolving credit facility In April 2017, the Company entered into an amended and restated credit and guaranty agreement which provided for a $600.0 million revolving loan facility (as amended from time to time, the “revolving credit facility”). In conjunction with the revolving credit facility, the Company paid upfront issuance fees of $2.6 million, which are being amortized over the five-year term of the agreement. In February 2018, the Company amended the revolving credit facility to, among other things, permit the Company to make certain investments, enter into an unsecured standby letter of credit facility and increase its standby letter of credit sublimit to $187.5 million. The Company increased its borrowing capacity under the revolving credit facility from $600.0 million to $725.0 million. In February 2021, the Company amended the revolving credit facility to decrease its borrowing capacity under the revolving credit facility from $725.0 million to $500.0 million. The Company may from time to time request increases in its borrowing capacity under the revolving credit facility of up to $250.0 million, provided no event of default has occurred or is continuing or would result from such increase. In conjunction with the February 2021 amendment, the Company paid upfront issuance fees of $1.7 million, which are being amortized over the remaining term of the agreement, and wrote-off $0.2 million in unamortized deferred debt issuance costs. Pursuant to the terms of the revolving credit facility, the Company may issue letters of credit under the revolving credit facility, which reduce the total amount available for borrowing. Pursuant to the terms of the revolving credit facility, the Company is required to pay an annual commitment fee that accrues at a rate of 0.20% per annum on the unused portion of the borrowing commitments under the revolving credit facility. In addition, the Company is required to pay a fee in connection with letters of credit issued under the revolving credit facility, which accrues at a rate of 1.375% per annum on the amount of such letters of credit outstanding. There is an additional fronting fee of 0.125% per annum multiplied by the average aggregate daily maximum amount available under all letters of credit. Borrowings under the revolving credit facility bear interest, at the Company’s option, at an annual rate based on LIBOR plus a spread of 1.375% or at an alternative base rate plus a spread of 0.375%. The revolving credit facility contains customary conditions to borrowing, events of default and covenants, including covenants that restrict the Company’s ability to incur indebtedness, grant liens, make distributions to holders of the Company or its subsidiaries’ equity interests, make investments, or engage in transactions with its affiliates. In addition, the revolving credit facility contains financial covenants, including a consolidated leverage ratio incurrence covenant and a minimum liquidity balance of $100.0 million, which includes any available borrowing capacity. The Company was in compliance with the covenants of the revolving credit facility as of September 30, 2021 and December 31, 2020, respectively. The Company had an aggregate of $52.2 million of letters of credit outstanding under the revolving credit facility as of September 30, 2021, and the Company’s total available borrowing capacity under the revolving credit facility was $447.8 million as of September 30, 2021. The Company’s letters of credit have final expiration dates through 2036. Convertible senior notes During the first quarter of 2021, the Company issued $695.8 million aggregate principal amount of the 2026 Notes. Additionally, during the first quarter of 2021, the Company issued $693.3 million aggregate principal amount of the 2028 Notes. The Notes were issued in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. The net proceeds from the sale of the Notes were approximately $1.4 billion after deducting offering and issuance costs related to the Notes. The Notes of each series do not bear regular interest. The Notes of each series may bear special interest as the remedy relating to the Company’s failure to comply with certain of its reporting obligations. The Company has complied with this reporting obligations from the issuance date through September 30, 2021. The 2026 Notes will mature on March 1, 2026, and the 2028 Notes will mature on March 1, 2028, in each case, unless earlier converted, redeemed or repurchased. The initial conversion rate for the 2026 Notes is 26.1458 shares of the Company’s Class A common stock per $1,000 principal amount of such Note, which is equivalent to an initial conversion price of approximately $38.25 per share. The initial conversion rate for the 2028 Notes is 28.2889 shares of Class A common stock per $1,000 principal amount of such Notes, which is equivalent to an initial conversion price of approximately $35.35 per share. The conversion rate for each series of Notes will be subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid special interest. In addition, upon the occurrence of a make-whole fundamental change (as defined in the relevant indentures governing the Notes) or a notice of redemption, the Company will, in certain circumstances, increase the conversion rate of the relevant series of Notes by a number of additional shares for a holder that elects to convert all or a portion of its Notes of such series in connection with such make-whole fundamental change or who elects to convert such Notes that are subject to such notice of redemption. The conversion rate for the 2026 Notes and the 2028 Notes shall not exceed 43.1406 shares per $1,000 principal amount of such Notes, subject to certain customary anti-dilution adjustments (as defined in the relevant indentures governing the Notes). There have been no changes to the initial conversion price of the Notes since issuance as of September 30, 2021. Upon conversion, the principal portion of the Notes of the applicable series being converted will be settled in cash, and any amount in excess of the principal portion of such Notes will be settled in cash or shares of the Company’s Class A common stock or any combination thereof at the Company’s option. The if-converted value of the 2026 Notes and the 2028 Notes was below the principal value of the respective Notes as of September 30, 2021. In addition, during the three and nine months ended September 30, 2021, the conditions allowing holders of the Notes to convert were not met. As a result, the Notes are not convertible during the three and nine months ended September 30, 2021. Prior to the close of business on the business day immediately preceding December 1, 2025, in the case of the 2026 Notes, and prior to the close of business on the business day immediately preceding December 1, 2027, in the case of the 2028 Notes, the Notes of the applicable series will be convertible only under the following circumstances: (1) during any calendar quarter commencing after June 30, 2021 (and only during such calendar quarter), if the last reported sale price of the Class A common stock for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price for the relevant series of Notes on each applicable trading day; (2) during the five business day period after any five consecutive trading day period in which, for each trading day of that period, the trading price per $1,000 principal amount of 2026 Notes or 2028 Notes, as applicable, for such trading day was less than 98% of the product of the last reported sale price of the Class A common stock and the conversion rate for such series of Notes on each such trading day; (3) if the Company calls any or all of the Notes for redemption, such Notes of the applicable series called for redemption may be converted at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate transactions. On or after December 1, 2025, in the case of the 2026 Notes, and on or after December 1, 2027, in the case of the 2028 Notes, until the close of business on the second scheduled trading day immediately preceding the relevant maturity date, holders of the relevant series of Notes may convert all or a portion of their Notes of such series regardless of the foregoing conditions. The Company may redeem for cash all or any part of the Notes, at its option, on or after March 6, 2024, in the case of the 2026 Notes, and on or after March 6, 2025, in the case of the 2028 Notes, if the last reported sale price of its Class A common stock has been at least 130% of the conversion price for the relevant series of Notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the series of Notes to be redeemed, plus any accrued and unpaid special interest to, but excluding, the redemption date. No sinking fund is provided for the Notes. Upon the occurrence of a fundamental change (as defined in the relevant indentures governing the Notes) prior to the relevant maturity date, holders of the relevant series of Notes may require the Company to repurchase all or a portion of the Notes of such series for cash at a price equal to 100% of the principal amount of the series of Notes to be repurchased, plus any accrued and unpaid special interest to, but excluding, the fundamental change repurchase date. Additionally, and upon events of default (as defined in the relevant indentures governing the Notes), the maturity of the Notes may be accelerated. The Notes are the Company’s general unsecured obligations and will rank senior in right of payment to any existing and future indebtedness that is contractually subordinated to the Notes; rank equal in right of payment with the Company’s existing and future senior unsecured indebtedness that is not so subordinated; effectively rank junior in right of payment to any of the Company’s existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness; and be structurally subordinated to all indebtedness and other liabilities (including trade payables) of subsidiaries of the Company. In accounting for the Notes, issuance costs of $11.0 million and $11.0 million for the 2026 Notes and the 2028 Notes were deducted from the carrying value of the Notes in the consolidated balance sheet. Issuance costs will be recognized as interest expense over the five-year term and seven-year term for the 2026 Notes and the 2028 Notes, respectively. The following is a summary of the Company’s convertible senior notes as of September 30, 2021.
During the three months ended September 30, 2021, the Company recognized $0.6 million and $0.4 million in interest expense for the 2026 Notes and the 2028 Notes, respectively, with such interest expense solely consisting of amortization of issuance costs. During the nine months ended September 30, 2021, the Company recognized $1.3 million and $0.9 million in interest expense for the 2026 Notes and the 2028 Notes, respectively, with such interest expense solely consisting of amortization of issuance costs. The effective interest rate for the 2026 Notes and the 2028 Notes was 0.32% and 0.22%, respectively, as of September 30, 2021. Maturities on the Company's long-term convertible debt are as follows:
Convertible Note Hedges and Warrants Concurrent with the offering of the Notes, the Company entered into convertible note hedge transactions with certain counterparties whereby the Company had the option to purchase a total of approximately 18.2 million shares for note hedges expiring in March 2026 (the “2026 Note Hedges”) and 19.6 million shares for note hedges expiring in March 2028 (the “2028 Note Hedges”, together with the 2026 Note Hedges, the “Note Hedges”), respectively, of its common stock at a price of approximately $38.25 and $35.35 per share, respectively. The aggregate cost of the convertible note hedge transactions was $265.3 million. The Note Hedges, or a portion thereof, are exercisable upon conversion of the Notes and the satisfaction of certain conditions set forth in the Note Hedges. Additionally, the Note Hedges may be terminated and early settled upon the occurrence of certain events, including certain merger events, events of default, and upon a fundamental change (as defined in the relevant indentures for the Notes). The Note Hedges are settleable in cash, shares or a combination of cash and shares, at the option of the Company, and the settlement alternative will be the same as the settlement alternative of the conversion spread for the respective Notes. The convertible note hedge transactions are expected generally to reduce the potential dilution to the Class A common stock upon conversion of the relevant series of Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of such converted Notes, as the case may be, in the event that the market price per share of the Class A common stock, as measured under the terms of the convertible note hedge transactions, is greater than the applicable strike price of those convertible note hedge transactions. As of September 30, 2021, the Company’s stock price was below the exercise price of the respective Note Hedges. In addition, the Company sold warrants to certain counterparties whereby the holders of the warrants had the option to purchase a total of approximately 18.1 million shares underlying warrants expiring in 2026 (the “2026 Warrants”) and 20.1 million shares underlying warrants expiring in 2028 (the “2028 Warrants”, together with the 2026 Warrants, the “Warrants”), respectively, of the Company’s Class A common stock at an initial strike price of $46.36 and $46.36 per share, respectively. The Company received aggregate cash proceeds of $202.9 million from the sale of these Warrants. If the market price per share of the Company’s Class A common stock, as measured under the terms of the Warrants, exceeds the strike price of the Warrants, the Warrants could have a dilutive effect, unless the Company elects, subject to certain conditions, to settle the Warrants in cash. The Warrants are only exercisable on the applicable expiration dates in accordance with the terms of the Warrants. Subject to the other terms of the Warrants, the first expiration date applicable to the 2026 Warrants and to the 2028 Warrants is June 1, 2026, and June 1, 2028, respectively, and the final expiration date applicable to the 2026 Warrants and 2028 Warrants is August 10, 2026 and August 10, 2028, respectively. As of September 30, 2021, the Company’s Class common stock price was below the exercise price of the Warrants. Taken together, the purchase of the Note Hedges and the sale of the Warrants are intended to reduce potential dilution from the conversion of the 2026 Notes and the 2028 Notes, and to effectively increase the overall conversion price from $38.25 per share to $46.36 per share and from $35.35 per share to $46.36 for the 2026 Notes and the 2028 Notes, respectively. The Note Hedges and the Warrants are equity-classified instruments as a result of being indexed to the Company’s Class A common stock and meeting certain equity classification criteria, and the instruments will not be remeasured in subsequent periods as long as the instruments continue to meet these accounting criteria. The premium paid for the Note Hedges has been included as a net reduction to additional paid-in capital within stockholders’ (deficit) equity, and the premium received for the Warrants has been included as a net increase to additional paid-in capital within stockholders' (deficit) equity.
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company has operating leases for corporate offices and data centers, and finance leases for infrastructure and office equipment. The Company’s leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the leases for up to 5 years. The Company also has subleases for several floors of its former corporate offices. The Company classifies its subleases as operating leases. The subleases have remaining lease terms of 1 year to 12 years. Sublease income, which is recorded as a reduction of rental expense, was $4.5 million and $12.4 million during the three and nine months ended September 30, 2021, respectively, and $1.7 million and $5.2 million during the three and nine months ended September 30, 2020, respectively. Future minimum lease payments under non-cancellable leases as of September 30, 2021 were as follows:
(1) Consists of future non-cancelable minimum rental payments under operating leases for the Company’s corporate offices and data centers where the Company has possession, excluding rent payments from the Company’s sub-tenants and variable operating expenses. Future non-cancelable rent payments from the Company's subtenants as of September 30, 2021 were as follows:
In 2017, the Company entered into a lease agreement for office space in San Francisco, California, to serve as its corporate headquarters. The Company took possession of three phases of the space between June 2018 and December 2019, and began to recognize lease costs and lease obligations, net of tenant improvement reimbursements related to the space. The Company's total expected minimum obligations for all three phases of the lease are $842.9 million, which exclude expected tenant improvement reimbursements from the landlord of approximately $75.0 million and variable operating expenses. The Company’s obligations under the lease are supported by a $34.2 million letter of credit, which reduced the borrowing capacity under the revolving credit facility. The Company does not expect to collect further tenant improvement reimbursements through the remainder of the lease. In the fourth quarter of 2020, the Company announced a new Virtual First work model pursuant to which remote work will become the primary experience for all of its employees. As part of the Virtual First strategy, Dropbox will retain a portion of its office space to be used for the Company’s team collaboration use and a portion will be marketed for sublease. The Company evaluated certain of its right-of-use assets and other lease related assets including leasehold improvements, furniture and fixtures, and computer equipment for impairment under ASC 360. The Company did not record impairment during the three months ended September 30, 2021 and recorded total impairment of $17.3 million for right-of-use and other lease related assets during the nine months ended September 30, 2021. The Company did not record impairment during the three and nine months ended September 30, 2020. As of September 30, 2021, the Company had commitments of $49.6 million for operating leases that have not yet commenced, and therefore are not included in the right-of-use asset or operating lease liability. These operating leases will commence in 2021 and 2022 with lease terms of up to 15 years. The Company has a sublease commitment of $6.4 million that has not yet commenced, with a sublease term of 7 years.
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Leases | Leases The Company has operating leases for corporate offices and data centers, and finance leases for infrastructure and office equipment. The Company’s leases have remaining lease terms of 1 year to 15 years, some of which include options to extend the leases for up to 5 years. The Company also has subleases for several floors of its former corporate offices. The Company classifies its subleases as operating leases. The subleases have remaining lease terms of 1 year to 12 years. Sublease income, which is recorded as a reduction of rental expense, was $4.5 million and $12.4 million during the three and nine months ended September 30, 2021, respectively, and $1.7 million and $5.2 million during the three and nine months ended September 30, 2020, respectively. Future minimum lease payments under non-cancellable leases as of September 30, 2021 were as follows:
(1) Consists of future non-cancelable minimum rental payments under operating leases for the Company’s corporate offices and data centers where the Company has possession, excluding rent payments from the Company’s sub-tenants and variable operating expenses. Future non-cancelable rent payments from the Company's subtenants as of September 30, 2021 were as follows:
In 2017, the Company entered into a lease agreement for office space in San Francisco, California, to serve as its corporate headquarters. The Company took possession of three phases of the space between June 2018 and December 2019, and began to recognize lease costs and lease obligations, net of tenant improvement reimbursements related to the space. The Company's total expected minimum obligations for all three phases of the lease are $842.9 million, which exclude expected tenant improvement reimbursements from the landlord of approximately $75.0 million and variable operating expenses. The Company’s obligations under the lease are supported by a $34.2 million letter of credit, which reduced the borrowing capacity under the revolving credit facility. The Company does not expect to collect further tenant improvement reimbursements through the remainder of the lease. In the fourth quarter of 2020, the Company announced a new Virtual First work model pursuant to which remote work will become the primary experience for all of its employees. As part of the Virtual First strategy, Dropbox will retain a portion of its office space to be used for the Company’s team collaboration use and a portion will be marketed for sublease. The Company evaluated certain of its right-of-use assets and other lease related assets including leasehold improvements, furniture and fixtures, and computer equipment for impairment under ASC 360. The Company did not record impairment during the three months ended September 30, 2021 and recorded total impairment of $17.3 million for right-of-use and other lease related assets during the nine months ended September 30, 2021. The Company did not record impairment during the three and nine months ended September 30, 2020. As of September 30, 2021, the Company had commitments of $49.6 million for operating leases that have not yet commenced, and therefore are not included in the right-of-use asset or operating lease liability. These operating leases will commence in 2021 and 2022 with lease terms of up to 15 years. The Company has a sublease commitment of $6.4 million that has not yet commenced, with a sublease term of 7 years.
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Commitments and Contingencies |
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Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal matters From time to time, the Company is a party to a variety of claims, lawsuits, and proceedings which arise in the ordinary course of business, including claims of alleged infringement of intellectual property rights. The Company records a liability when it believes that it is probable that a loss will be incurred and the amount of loss or range of loss can be reasonably estimated. In its opinion, resolution of pending matters is not likely to have a material adverse impact on its condensed consolidated results of operations, cash flows, or its financial position. Given the unpredictable nature of legal proceedings, the Company bases its estimate on the information available at the time of the assessment. As additional information becomes available, the Company reassesses the potential liability and may revise the estimate. The Company is currently involved in four putative class action lawsuits alleging violations of the federal securities laws that were filed on August 30, 2019, September 5, 2019, September 13, 2019, and October 3, 2019, in the Superior Court of the State of California, San Mateo County, against the Company, certain of its officers and directors, underwriters of its IPO, and Sequoia Capital XII, L.P. and certain of its affiliated entities (collectively, the “Dropbox Defendants”). On October 4, 2019, two putative class action lawsuits alleging violations of the federal securities laws were filed against the Dropbox Defendants in the U.S. District Court for the Northern District of California (the "Federal Plaintiffs"). The six lawsuits each make the same or similar allegations of violations of federal securities laws, for allegedly making materially false and misleading statements in, or omitting material information from, the Company's IPO registration statement. The plaintiffs seek unspecified monetary damages and other relief. On March 2, 2020, the Federal Plaintiffs filed a consolidated class action complaint. On April 16, 2020, the Dropbox Defendants filed a motion to dismiss the federal consolidated class action complaint. On October 21, 2020, the court issued an order granting the Company's motion to dismiss the Federal Plaintiffs’ complaint, setting a deadline of January 6, 2021 for the Federal Plaintiffs to file any amended complaint. The federal court extended this deadline to February 22, 2021 to provide time for the parties to explore resolving the case. On February 11, 2021, the parties attended mediation and reached a settlement in principle for an immaterial amount subject to final documentation and preliminary and final approval by the court. On July 22, 2021, the Court held a preliminary settlement approval hearing. On August 3, 2021, the Court entered an order preliminarily approving the settlement and providing for notice to the class. The Court set a hearing for final approval of the settlement on December 2, 2021. On May 11, 2020, the Dropbox Defendants filed a motion to dismiss the consolidated state court case based on the exclusive federal forum provisions contained in the Company's amended and restated bylaws. On December 4, 2020, the state court issued an order granting the Company's motion to dismiss the consolidated state court case. On December 15, 2020, the State Plaintiffs filed a notice of appeal of this order. The Company believes the appeal and claims are without merit and intends to vigorously defend against them. Indemnification The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe a third party’s intellectual property rights. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims. Other commitments Other commitments include payments to third-party vendors for services related to the Company’s infrastructure, infrastructure warranty contracts, and asset retirement obligations for office modifications. There have been no material changes in the Company's other commitments, as disclosed in the Annual Report.
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Accrued and Other Current Liabilities |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued and Other Current Liabilities | Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following:
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Stockholders' (Deficit) Equity |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' (Deficit) Equity | Stockholders’ (Deficit) Equity Common stock The Company’s amended and restated certificate of incorporation authorizes the issuance of Class A common stock, Class B common stock, and Class C common stock. Holders of Class A common stock, Class B common stock, and Class C common stock are entitled to dividends on a pro rata basis, when, as, and if declared by the Company’s Board of Directors, subject to the rights of the holders of the Company’s preferred stock. Holders of Class A common stock are entitled to one vote per share, holders of Class B common stock are entitled to 10 votes per share, and holders of Class C common stock are entitled to zero votes per share. As of September 30, 2021, the Company had authorized 2,400.0 million shares of Class A common stock, 475.0 million shares of Class B common stock, and 800.0 million shares of Class C common stock, each at par value of $0.00001. Holders of Class B common stock voluntarily converted 0.2 million and 0.5 million shares into an equivalent number of shares of Class A common stock during the three and nine months ended September 30, 2021, respectively, and 0.1 million and 63.5 million during the three and nine months ended September 30, 2020, respectively. As of September 30, 2021, 299.9 million shares of Class A common stock, 82.9 million shares of Class B common stock, and no shares of Class C common stock were issued and outstanding. As of December 31, 2020, 322.3 million shares of Class A common stock, 83.5 million shares of Class B common stock, and no shares of Class C common stock were issued and outstanding. Class A shares issued and outstanding as of September 30, 2021 and December 31, 2020 excludes unvested restricted stock awards granted to certain executives. Class A shares issued and outstanding also excludes 10.3 million unvested restricted stock awards granted to one of the Company's co-founders as of September 30, 2021 and December 31, 2020, respectively. See "Co-Founder Grants" section below for further details. Preferred stock The Company's Board of Directors will have the authority, without further action by the Company's stockholders, to issue up to 240.0 million shares of undesignated preferred stock with rights and preferences, including voting rights, designated from time to time by the Board of Directors. Stock repurchase program In February 2020, the Company's Board of Directors approved a stock repurchase program for the repurchase of up to $600 million of the Company’s outstanding shares of Class A common stock. In February 2021, the Board of Directors authorized the Company to repurchase up to an additional $1 billion of the Company's outstanding shares of Class A common stock. The Company completed the February 2020 stock repurchase program of up to $600 million during the nine months ended September 30, 2021. Share repurchases will be made from time to time in private transactions or open market purchases, as permitted by securities laws and other legal requirements and will be subject to a review of the circumstances in place at that time, including prevailing market prices. The program does not obligate the Company to repurchase any specific number of shares and may be discontinued at any time. During the three and nine months ended September 30, 2021, the Company repurchased and subsequently retired 5.8 million and 29.9 million shares of its Class A common stock, respectively, for an aggregate amount of $181.0 million and $763.7 million, respectively. This includes $200.0 million in repurchases of 8.6 million shares of our Class A common stock in conjunction with the issuance of the Notes, which was outside of our stock repurchase program. During the three and nine months ended September 30, 2020, the Company repurchased and subsequently retired 1.8 million and 9.2 million of its Class A common stock for an aggregate amount of $37.5 million and $177.3 million, respectively. Equity incentive plans Under the 2018 Plan, the Company may grant stock-based awards to purchase or directly issue shares of common stock to employees, directors, and consultants. Options are granted at a price per share equal to the fair market value of the Company's common stock at the date of grant. Options granted are exercisable over a maximum term of 10 years from the date of grant and generally vest over a period of four years. RSUs and RSAs are also granted under the 2018 Plan. The 2018 Plan will terminate 10 years after the later of (i) its adoption or (ii) the most recent stockholder-approved increase in the number of shares reserved under the 2018 Plan, unless terminated earlier by the Company's Board of Directors. The 2018 Plan was adopted on March 22, 2018. In connection with the acquisition of DocSend, the Company assumed unvested stock options and an immaterial number of unvested RSUs that had been granted under DocSend's 2013 Stock Plan and DocSend's 2015 Stock Option and Grant Plan. As of September 30, 2021, there were 28.4 million stock-based awards issued and outstanding and 97.4 million shares available for issuance under the Dropbox Equity Incentive Plans, HelloSign's 2011 Equity Incentive Plan, DocSend's 2013 Stock Plan and DocSend's 2015 Stock Option and Grant Plan (collectively, the "Plans"). Stock option and restricted stock activity for the Plans was as follows for the nine months ended September 30, 2021:
(1) This amount includes an immaterial amount of unvested RSUs that were assumed as part of the acquisition of DocSend. The RSUs had a weighted-average grant date fair value of $26.86 per share and a total fair value of $0.4 million, all of which will be recognized as post-combination stock-based compensation expense. (2) This amount excludes restricted stock awards granted with service and market based vesting conditions. The following table summarizes information about the pre-tax intrinsic value of options exercised during the three and nine months ended September 30, 2021 and 2020:
As of September 30, 2021, unamortized stock-based compensation related to unvested stock options, restricted stock awards (excluding the Co-Founder Grants), and RSUs was $613.8 million. The weighted-average period over which such compensation expense will be recognized if the requisite service is provided is approximately 2.7 years as of September 30, 2021. Assumed stock options In connection with the acquisition of DocSend the Company assumed 0.4 million unvested stock options which were valued using the Black-Scholes option-pricing model. The fair value of stock options assumed were estimated using the following assumptions:
Expected volatility. The expected volatility is based on the Company's historical volatility. Management believes this is the best estimate of the expected volatility over the expected life of its stock options. Expected term. The Company determines the expected term based on the average period the stock options are expected to remain outstanding, generally calculated as the midpoint of the stock options’ remaining vesting term and contractual expiration period, as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. Risk-free interest rate. The risk-free interest rate is based on the U.S. Treasury security in effect at the time the options were assumed for maturities corresponding with the expected term of the option. Expected dividend yield. The Company has not paid and does not expect to pay dividends. Consequently, the Company uses an expected dividend yield of zero. In connection with the acquisition of DocSend, the estimated weighted-average grant date fair value for stock options assumed was $25.28 per share and a total fair value of $9.3 million, of which, $8.1 million will be recognized as post-combination stock-based compensation expense. Co-Founder Grants In December 2017, the Board of Directors approved the Co-Founder Grants, consisting of 14.7 million shares of Class A common stock in the aggregate, of which 10.3 million RSAs were granted to Mr. Houston, the Company’s co-founder and Chief Executive Officer, and 4.4 million RSAs were granted to Mr. Ferdowsi, the Company's co-founder and a former director. These Co-Founder Grants have service-based, market-based, and performance-based vesting conditions. The Co-Founder Grants are excluded from Class A common stock issued and outstanding until the satisfaction of these vesting conditions. The Co-Founder Grants also provide the holders with certain stockholder rights, such as the right to vote the shares with the other holders of Class A common stock and a right to cumulative declared dividends. However, the Co-Founder Grants are not considered a participating security for purposes of calculating net income per share attributable to common stockholders in Note 13 "Net Income Per Share", as the right to the cumulative declared dividends is forfeitable if the service condition is not met. The Co-Founder Grants are eligible to vest over the ten-year period following the date the Company’s shares of Class A common stock commenced trading on the Nasdaq Global Select Market in connection with the Company’s IPO. The Co-Founder Grants comprise nine tranches that are eligible to vest based on the achievement of stock price goals, each of which are referred to as a Stock Price Target, measured over a consecutive thirty-day trading period during the Performance Period. The Performance Period began on January 1, 2019. During the first four years of the Performance Period, no more than 20% of the shares subject to each Co-Founder Grant would be eligible to vest in any calendar year. After the first four years, all shares are eligible to vest based on the achievement of the Stock Price Targets. In March 2020, one of the Company's co-founders, Mr. Ferdowsi, resigned as a member of the Board of Directors and as an officer of the Company. As of the date of Mr. Ferdowsi’s resignation, none of the Stock Price Targets had been met, resulting in the forfeiture of all of his 4.4 million RSAs. As he did not provide the requisite service associated with the Co-Founder Grants, the Company reversed all stock-based compensation expense that had been recognized from the grant date through March 19, 2020, which totaled $23.8 million, of which $21.5 million related to expense recognized prior to December 31, 2019, and ceased recognizing further expense related to the award. The Stock Price Target for Mr. Houston's first tranche of the Co-Founder Grant was achieved in the third quarter of 2021. As a result, the first tranche of Mr. Houston's Co-Founder Grant, or 2.1 million shares of Class A common stock, will vest in the fourth quarter of 2021, provided that the requisite service will be met through the vesting date. The stock-based compensation expense for Mr. Houston's Co-Founder Grant is recognized utilizing the accelerated attribution method, and therefore no incremental stock-based compensation will be recognized as a result of this release. From time to time, directors, officers, and employees of the Company enter into 10b5-1 plans. Mr. Houston adopted a 10b5-1 plan in June 2021, pursuant to which it is expected that a portion of the shares issued upon achievement of the performance targets under his Co-Founder Award (the "vested shares") will be sold to satisfy income taxes related to the vesting of the Co-Founder Award and, if the Company’s share price is at or above the share price established in Mr. Houston's 10b5-1 plan, the remainder of the vested shares will be sold. The Company recognized stock-based compensation expense related to the Co-Founder Grant of $3.7 million and $10.9 million during the three and nine months ended September 30, 2021, respectively and $6.2 million and $18.4 million during the three and nine months ended September 30, 2020. As of September 30, 2021, unamortized stock-based compensation expense related to the Co-Founder Grants was $24.8 million.
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Net Income Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share | Net Income Per Share The Company computes net income per share using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and Class B common stock share equally in the Company’s net income and losses. Basic net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of the Class A and Class B common stock outstanding. Diluted net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of diluted common shares outstanding. The computation of the diluted net income per share of Class A common stock assumes the conversion of our Class B common stock to Class A common stock, while the diluted net income per share of Class B common stock does not assume the conversion of those shares to Class A common stock. The dilutive effect of potentially dilutive common shares is reflected in diluted earnings per share by application of the if-converted method for the 2026 Notes and the 2028 Notes, and by application of the treasury stock method for the Company's other potentially dilutive securities. The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in millions, except for per share amounts):
The weighted-average impact of potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive was as follows:
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Income Taxes |
9 Months Ended |
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Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company computed the year-to-date income tax provision by applying the estimated annual effective tax rate to the year-to-date pre-tax income and adjusted for discrete tax items in the period. The Company's income tax was an expense of $0.5 million and $2.3 million for the three and nine months ended September 30, 2021, respectively, and an expense of $0.9 million and $5.8 million for the three and nine months ended September 30, 2020, respectively. The income tax expense for the three and nine months ended September 30, 2021 was primarily attributable to federal, state and foreign income taxes, offset by the release of foreign tax reserves, as discussed below, and income tax benefits related to the acquisition of DocSend in the first quarter of 2021. For the periods presented, the difference between the U.S. statutory rate and the Company's effective tax rate is primarily due to the full valuation allowance on its U.S. and Irish deferred tax assets. The effective tax rate is also impacted by earnings realized in foreign jurisdictions with statutory tax rates lower than the federal statutory tax rate. The Company periodically evaluates the realizability of its net deferred tax assets based on all available evidence, both positive and negative. The realization of net deferred tax assets is dependent on the Company's ability to generate sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets. As of September 30, 2021, the Company continues to maintain valuation allowances on all of its deferred tax assets in the U.S. and Ireland and on a portion of its deferred tax assets in one of its foreign jurisdictions. Given the Company’s recent history of foreign earnings, management believes that there is a reasonable possibility that, within the next twelve months, sufficient positive evidence may become available to allow management to reach a conclusion that a significant portion of the valuation allowance recorded against the deferred tax assets held by its Irish subsidiary will be reversed. The reversal would result in an income tax benefit for the quarterly and annual fiscal period in which the Company releases the valuation allowance. However, the exact timing and amount of the valuation allowance release are subject to change on the basis of the level of profitability that the Company actually achieves. The Company is subject to income tax audits in the U.S. and foreign jurisdictions. The Company records liabilities related to uncertain tax positions and believes that it has provided adequate reserves for income tax uncertainties in all open tax years. Unrecognized tax benefits increased by approximately $3.6 million and $12.1 million for the three and nine months ended September 30, 2021, respectively, of which $2.1 million, if recognized, would affect the Company's effective tax rate. Additionally, unrecognized tax benefits decreased by approximately $0.7 million and $1.5 million for the three and nine months ended September 30, 2021, respectively, due to a statute of limitations lapse related to prior period tax positions. It is reasonably possible that there could be changes to the amount of uncertain tax positions due to activities of the taxing authorities, settlement of audit issues, reassessment of existing uncertain tax positions, or the expiration of applicable statutes of limitations; however, the Company is not able to estimate the impact of these items at this time.
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Geographic Areas |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Geographic Areas | Geographic Areas Long-lived assets The following table sets forth long-lived assets by geographic area:
(1) No single country other than the United States had a property and equipment balance greater than 10% of total property and equipment, net, as of September 30, 2021 and December 31, 2020. Revenue Revenue by geography is generally based on the address of the customer as defined in the Company’s subscription agreement. The following table sets forth revenue by geographic area for the three and nine months ended September 30, 2021 and 2020.
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Description of the Business and Summary of Significant Accounting Policies (Policies) |
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of presentation | The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the United States of America generally accepted accounting principles (“GAAP”) and applicable rules and regulations of the SEC regarding interim financial reporting. The accompanying unaudited condensed consolidated financial statements include the accounts of Dropbox and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of consolidation | The condensed consolidated balance sheet as of December 31, 2020 included herein was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheets, statements of operations, statements of comprehensive income, statements of stockholders' (deficit) equity and the statements of cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year ended December 31, 2021 or any future period. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Use of estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported and disclosed in the Company’s condensed consolidated financial statements and accompanying notes. These estimates are based on information available as of the date of the condensed consolidated financial statements. Management evaluates these estimates and assumptions on a regular basis. Actual results may differ materially from these estimates.The Company’s most significant estimates and judgments involves the valuation of acquired intangible assets and goodwill from business combinations as well as the valuation of right-of-use and other lease related assets. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial information about segments and geographic areas | The Company manages its operations and allocates resources as a single operating segment. Further, the Company manages, monitors, and reports its financials as a single reporting segment. The Company’s chief operating decision-maker is its Chief Executive Officer, who reviews financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency transactions | The assets and liabilities of the Company’s foreign subsidiaries are translated from their respective functional currencies into U.S. dollars at the exchange rates in effect at the balance sheet date. Revenue and expense amounts are translated at the average exchange rate for the period. Foreign currency translation gains and losses are recorded in other comprehensive income.Gains and losses realized from foreign currency transactions (those transactions denominated in currencies other than the foreign subsidiaries’ functional currency) are included in other income, net. Monetary assets and liabilities are remeasured using foreign currency exchange rates at the end of the period, and non-monetary assets are remeasured based on historical exchange rates. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue recognition, cost of revenue, and deferred commissions, net | The Company derives its revenue from subscription fees from customers for access to its platform. The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price of its subscription agreements. The Company accounts for revenue contracts with customers through the following steps: •Identification of the contract, or contracts, with a customer •Identification of the performance obligations in the contract •Determination of the transaction price •Allocation of the transaction price to the performance obligations in the contract •Recognition of revenue when, or as, the Company satisfies a performance obligation The Company’s subscription agreements generally have monthly or annual contractual terms and a small percentage have multi-year contractual terms. Revenue is recognized ratably over the related contractual term beginning on the date that the platform is made available to a customer. Access to the platform represents a series of distinct services as the Company continually provides access to, and fulfills its obligation to the end customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. The Company recognizes revenue ratably because the customer receives and consumes the benefits of the platform throughout the contract period. The Company’s contracts are generally non-cancelable. The Company bills in advance for monthly contracts and typically bills annually in advance for contracts with terms of one year or longer. The Company also recognizes an immaterial amount of contract assets, or unbilled receivables, primarily relating to consideration for services completed but not billed at the reporting date. Unbilled receivables are classified as receivables when the Company has the right to invoice the customer. The Company records contract liabilities when cash payments are received or due in advance of performance to deferred revenue. Deferred revenue primarily relates to the advance consideration received from the customer. The price of subscriptions is generally fixed at contract inception and therefore, the Company’s contracts do not contain a significant amount of variable consideration. As a result, the amount of revenue recognized in the periods presented from performance obligations satisfied (or partially satisfied) in previous periods was not material. Cost of revenue consists primarily of expenses associated with the storage, delivery, and distribution of the Company’s platform for both paying users and free users. These costs, which are referred to as infrastructure costs, include depreciation of servers located in co-location facilities that the Company leases and operates, rent and facilities expense for those datacenters, network and bandwidth costs, support and maintenance costs for infrastructure equipment, and payments to third-party datacenter service providers. Cost of revenue also includes costs, such as salaries, bonuses, benefits, travel-related expenses, and stock-based compensation, which are referred to as employee-related costs, for employees whose primary responsibilities relate to supporting the Company’s infrastructure and delivering user support. Other non-employee costs included in cost of revenue include credit card fees related to processing customer transactions and allocated overhead, such as facilities, including rent, utilities, depreciation on leasehold improvements and other equipment shared by all departments, and shared information technology costs. In addition, cost of revenue includes amortization of developed technologies, professional fees related to user support initiatives, and property taxes related to the datacenters.Deferred commissions, net is stated as gross deferred commissions less accumulated amortization. Sales commissions earned by the Company’s sales force and third-party resellers, as well as related payroll taxes, are considered to be incremental and recoverable costs of obtaining a contract with a customer. These amounts have been capitalized as deferred commissions within prepaid and other current assets and other assets on the condensed consolidated balance sheets.
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Stock-based compensation | The Company has primarily granted restricted stock units ("RSUs") to its employees and members of the Board of Directors under the 2008 Equity Incentive Plan (“2008 Plan”), the 2017 Equity Incentive Plan (“2017 Plan”), and the 2018 Equity Incentive Plan ("2018 Plan" and together with the 2008 Plan and 2017 Plan, the "Dropbox Equity Incentive Plans"). The RSUs granted by the Company under the Dropbox Equity Incentive Plans have a service-based vesting condition over a four-year period. These awards typically have a cliff vesting period of one year and continue to vest quarterly thereafter. The Company recognizes compensation expense associated with RSUs ratably on a straight-line basis over the requisite service period and accounts for forfeitures in the period in which they occur. As of September 30, 2021, the Company had RSUs and restricted stock awards ("RSAs") granted to certain executives outstanding under the Dropbox Equity Incentive Plans. The fair values of the common stock underlying the RSUs granted in periods prior to the date of the Company's initial public offering ("IPO") were determined by the Board of Directors, with input from management and contemporaneous third-party valuations, which were performed at least quarterly. For valuations after the Company's IPO, the Board of Directors determines the fair value of each share of underlying common stock based on the closing price of the Company's Class A common stock as reported on the Nasdaq Global Select Market on the date of the grant. In connection with the acquisition of DocSend, Inc. ("DocSend"), the Company assumed unvested stock options and an immaterial number of unvested RSUs that had been granted under DocSend's 2013 Stock Plan and DocSend's 2015 Stock Option and Grant Plan. The fair value of the DocSend options assumed were based upon the Black-Scholes option-pricing model. See Note 12 "Stockholders' (Deficit) Equity" for further information.
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Cash and cash equivalents | Cash consists primarily of cash on deposit with banks and includes amounts in transit from payment processors for credit and debit card transactions, which typically settle within five business days. Cash equivalents include highly liquid investments purchased with an original maturity date of 90 days or less from the date of purchase. The Company monitors its credit risk by considering factors such as historical experience, credit ratings, current economic conditions, and reasonable and supportable forecasts.
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Short-term investments | The Company’s short-term investments are primarily comprised of corporate notes and obligations, U.S. Treasury securities, certificates of deposit, asset-backed securities, commercial paper, U.S. agency obligations, foreign government securities, supranational securities and municipal securities. The Company determines the appropriate classification of its short-term investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company has classified and accounted for its short-term investments as available-for-sale securities as the Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. As a result, the Company classifies its short-term investments, including securities with stated maturities beyond twelve months, within current assets in the condensed consolidated balance sheets. The Company's short-term investments are recorded at fair value each reporting period. Unrealized gains and losses on these short-term investments are reported as a separate component of accumulated other comprehensive income in the condensed consolidated balance sheets until realized. Unrealized gains and losses for any short-term investments that management intends to sell or it is more likely than not that management will be required to sell prior to their anticipated recovery are recorded in other income, net. The Company segments its portfolio based on the underlying risk profiles of the securities and has a zero-loss expectation for U.S. treasury and U.S. government agency securities. The Company regularly reviews the securities in an unrealized loss position and evaluates the current expected credit loss by considering factors such as credit ratings, issuer-specific factors, current economic conditions, and reasonable and supportable forecasts. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Concentrations of credit risk | Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, accounts receivable, and short-term investments. The Company places its cash and cash equivalents and short-term investments with well-established financial institutions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and equipment, net | Equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the estimated useful life of the related asset, which is generally to seven years. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of the related lease. The following table presents the estimated useful lives of property and equipment:
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Lease obligations | The Company leases office space, data centers, and equipment under non-cancelable finance and operating leases with various expiration dates through 2036. The Company determines if an arrangement contains a lease at inception. Operating lease right-of-use assets and lease liabilities are recognized at the present value of the future lease payments at commencement date. The interest rate implicit in the Company’s operating leases is not readily determinable, and therefore an incremental borrowing rate is estimated to determine the present value of future payments. The estimated incremental borrowing rate factors in a hypothetical interest rate on a collateralized basis with similar terms, payments, and economic environments. Operating lease right-of-use assets also include any prepaid lease payments and lease incentives. Certain of the operating lease agreements contain rent concession, rent escalation, and option to renew provisions. Rent concession and rent escalation provisions are considered in determining the single lease cost to be recorded over the lease term. Single lease cost is recognized on a straight-line basis over the lease term commencing on the date the Company has the right to use the leased property. The lease terms may include options to extend or terminate the lease. The Company generally uses the base, non-cancelable, lease term when recognizing the lease assets and liabilities, unless it is reasonably certain that the option will be exercised. In addition, certain operating lease agreements contain tenant improvement allowances from its landlords. These allowances are accounted for as lease incentives and decrease the Company's right-of-use asset and reduce single lease cost over the lease term. As part of the Company's Virtual First strategy, Dropbox will retain a portion of its office space to be used for the Company’s team collaboration use and a portion will be marketed for sublease. During the first quarter of 2021, the Company recorded an impairment charge of $17.3 million related to right-of-use assets and other lease related property and equipment assets. During the fourth quarter of 2020, the Company recorded an impairment charge of $398.2 million related to right-of-use assets and other lease related property and equipment assets. These impairment charges were recorded in conjunction with the Company's decision to move towards a Virtual First work model. See Note 9 "Leases" for further information. The Company leases certain equipment from various third parties, through equipment finance leases. These leases either include a bargain purchase option, a full transfer of ownership at the completion of the lease term, or the terms of the leases are at least 75 percent of the useful lives of the assets and are therefore classified as finance leases. These leases are capitalized in property and equipment, net and the related amortization of assets under finance leases is included in depreciation and amortization expense in the Company’s condensed consolidated statements of operations. Initial asset values and finance lease obligations are based on the present value of future minimum lease payments. The Company’s finance lease agreements may contain lease and non-lease components. The non-lease components include payments for support on infrastructure equipment obtained via finance leases, which when not significant in relation to the overall agreement, are combined with the lease components and accounted for together as a single lease component.
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Business combinations | The Company uses best estimates and assumptions, including but not limited to, future expected cash flows, expected asset lives, and discount rates, to assign a fair value to the tangible and intangible assets acquired and liabilities assumed in business combinations as of the acquisition date. These estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s condensed consolidated statements of operations. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-lived assets, including goodwill and other acquired intangible assets, net | The Company evaluates the recoverability of its property and equipment and finite-lived intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. The evaluation is performed at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review determines that the carrying amount of specific property and equipment or intangible assets is not recoverable, the carrying amount of such assets is reduced to its fair value. The Company reviews goodwill for impairment at least annually in the fourth quarter, or more frequently if events or changes in circumstances would more likely than not reduce the fair value of its single reporting unit below its carrying value. The Company has not recorded impairment charges on goodwill or intangible assets for the periods presented in these condensed consolidated financial statements. During the first quarter of 2021 and the fourth quarter of 2020, the Company recorded impairment charges in conjunction with the Company's decision to move towards a Virtual First work model. See Note 9 "Leases" for further information. Acquired property and equipment and finite-lived intangible assets are amortized over their useful lives. The Company evaluates the estimated remaining useful life of these assets when events or changes in circumstances warrant a revision to the remaining period of amortization. If the Company revises the estimated useful life assumption for any asset, the remaining unamortized balance is amortized or depreciated over the revised estimated useful life on a prospective basis.
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Income taxes | Deferred income tax balances reflect the effects of temporary differences between the financial reporting and tax bases of the Company’s assets and liabilities using enacted tax rates expected to apply when taxes are actually paid or recovered. In addition, deferred tax assets are recorded for net operating loss and credit carryforwards. A valuation allowance is provided against deferred tax assets unless it is more likely than not that they will be realized based on all available positive and negative evidence. Such evidence includes, but is not limited to, recent cumulative earnings or losses, expectations of future taxable income by taxing jurisdiction, and the carry-forward periods available for the utilization of deferred tax assets. The Company uses a two-step approach to recognizing and measuring uncertain income tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit. The second step is to measure the tax benefit as the largest amount which is more than 50% likely of being realized upon ultimate settlement. The Company recognizes interest and penalties related to unrecognized tax benefits as income tax expense. Although the Company believes that it has adequately reserved for its uncertain tax positions, it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company evaluates its uncertain tax positions on a regular basis and evaluations are based on a number of factors, including changes in facts and circumstances, changes in tax law, correspondence with tax authorities during the course of an audit, and effective settlement of audit issues. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made and could have a material impact on the Company’s financial condition and results of operations.
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Fair value measurement | The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which it would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions, and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3—Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.
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Recently issued accounting pronouncements | Recently adopted accounting pronouncements In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40). This ASU simplifies the accounting for convertible instruments and contracts in an entity’s own equity, as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Among other changes, the new guidance eliminates the requirement to separate the convertible debt into debt and equity components, unless the conversion feature is required to be bifurcated and accounted for as a derivative or the debt is issued at a substantial premium. As a result, after adopting the guidance, entities will no longer separately present such embedded conversion features in equity, and will instead account for the convertible debt wholly as debt. The ASU also removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. Lastly, entities are required to use the if-converted method for convertible instruments in the diluted earnings per share calculation. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years, with early adoption permitted, but only at the beginning of the fiscal year. This update permits the use of either the modified retrospective or fully retrospective method of transition. The Company early adopted this guidance as of January 1, 2021 using the modified retrospective approach. The adoption of the guidance did not have an impact on the Company’s financial statement as of the adoption date. As further discussed in Note 8 "Debt", the Company issued certain convertible senior notes and entered into certain contracts in the Company’s own equity during the nine months ended September 30, 2021, and the accounting for these instruments was based on the guidance in ASU 2020-06. Additionally, the impact on diluted earnings per share of the convertible senior notes was calculated based on the if-converted method, as further described in Note 13 "Net Income Per Share" for further information.
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Goodwill | Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquiredGoodwill amounts are not amortized, but tested for impairment on an annual basis. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss per share | The Company computes net income per share using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and Class B common stock share equally in the Company’s net income and losses. |
Description of the Business and Summary of Significant Accounting Policies (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Useful Lives of Property and Equipment | The following table presents the estimated useful lives of property and equipment:
Property and equipment, net consisted of the following:
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Cash, Cash Equivalents and Short-Term Investments (Tables) |
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and Cash Equivalents [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash, Cash Equivalents and Short-Term Investments | The amortized cost, unrealized gains and losses and estimated fair value of the Company's cash, cash equivalents and short-term investments as of September 30, 2021 and December 31, 2020 consisted of the following:
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Contractual Maturities of Short Term Investments | The following table presents the contractual maturities of the Company’s short-term investments as of September 30, 2021:
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Assets Measured On Recurring Basis | The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis using the input categories discussed in Note 1:
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Property and Equipment, Net (Tables) |
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Sep. 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment, Net | The following table presents the estimated useful lives of property and equipment:
Property and equipment, net consisted of the following:
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Business Combinations (Tables) |
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Purchase Consideration Transferred | The purchase consideration transferred consisted of the following:
(1) The fair value of options assumed was determined based upon the Black-Scholes option-pricing model. The purchase consideration transferred consisted of the following:
(1) The fair value of options assumed were based upon the Black-Scholes option-pricing model.
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Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The purchase consideration was allocated to the tangible and intangible assets and liabilities acquired as of the acquisition date, with the excess recorded to goodwill as shown below. The fair value of assets and liabilities acquired may change as additional information is received during the measurement period. The measurement period will end no later than one-year from the acquisition date.
(2) The goodwill recognized was primarily attributable to the opportunity to expand the user base of the Company's platform. The goodwill is not deductible for U.S. federal income tax purposes. The purchase consideration was allocated to the tangible and intangible assets and liabilities acquired as of the acquisition date, with the excess recorded to goodwill as shown below.
(2) The goodwill recognized was primarily attributable to the opportunity to expand the user base of the Company's platform. The goodwill is not deductible for U.S. federal income tax purposes.
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Schedule of Finite-Lived Intangible Assets Acquired and Estimated Useful Lives | The fair value of the separately identifiable finite-lived intangible assets acquired and estimated weighted average useful lives are as follows:
The fair value of the separately identifiable finite-lived intangible assets acquired and estimated weighted average useful lives are as follows:
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Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets | Intangible assets consisted of the following:
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Schedule of Future Amortization Expense | Expected future amortization expense for intangible assets as of September 30, 2021 is as follows:
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Goodwill (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in the carrying amounts of goodwill were as follows:
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Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Convertible Debt | The following is a summary of the Company’s convertible senior notes as of September 30, 2021.
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Schedule of Maturities of Long-term Debt | Maturities on the Company's long-term convertible debt are as follows:
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities of Operating Lease Liabilities | Future minimum lease payments under non-cancellable leases as of September 30, 2021 were as follows:
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Maturities of Finance Lease Liabilities | Future minimum lease payments under non-cancellable leases as of September 30, 2021 were as follows:
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Payment to be Received on Operating Leases to Subtenants | Future non-cancelable rent payments from the Company's subtenants as of September 30, 2021 were as follows:
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Accrued and Other Current Liabilities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Accrued And Other Current Liabilities | Accrued and other current liabilities consisted of the following:
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Stockholders' (Deficit) Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option and Restricted Stock Activity | Stock option and restricted stock activity for the Plans was as follows for the nine months ended September 30, 2021:
(1) This amount includes an immaterial amount of unvested RSUs that were assumed as part of the acquisition of DocSend. The RSUs had a weighted-average grant date fair value of $26.86 per share and a total fair value of $0.4 million, all of which will be recognized as post-combination stock-based compensation expense. (2) This amount excludes restricted stock awards granted with service and market based vesting conditions.
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Schedule of Pre-Tax Intrinsic Value | The following table summarizes information about the pre-tax intrinsic value of options exercised during the three and nine months ended September 30, 2021 and 2020:
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Fair Value of Stock Options Assumptions Used | The fair value of stock options assumed were estimated using the following assumptions:
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Net Income Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The numerators and denominators of the basic and diluted EPS computations for our common stock are calculated as follows (in millions, except for per share amounts):
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Schedule of Potentially Dilutive Securities Excluded from Computation of Earnings Per Share | The weighted-average impact of potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive was as follows:
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Geographic Areas (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-lived Assets by Geographic Areas | The following table sets forth long-lived assets by geographic area:
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Revenue by Geographic Areas | The following table sets forth revenue by geographic area for the three and nine months ended September 30, 2021 and 2020.
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Description of the Business and Summary of Significant Accounting Policies - Foreign Currency Transactions (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Foreign currency transaction gains (losses) | $ (1.4) | $ 2.1 | $ (0.8) | $ 2.1 |
Description of the Business and Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Revenue, performance obligation, description of timing | one year or longer | |||
Revenue recognized | $ 312.1 | $ 277.0 | $ 574.3 | $ 522.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Remaining performance obligation | $ 725.5 | $ 725.5 | ||
Performance obligation satisfaction period | 12 months | 12 months |
Description of the Business and Summary of Significant Accounting Policies - Stock-based Compensation (Details) - shares shares in Millions |
1 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Mar. 19, 2020 |
Mar. 31, 2020 |
Dec. 31, 2017 |
Sep. 30, 2021 |
Dec. 31, 2020 |
|
One-Tier RSU | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 14.7 | ||||
Shares forfeited (in shares) | 9.2 | ||||
Tranche One | One-Tier RSU | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Co-Founder Grants | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 14.7 | ||||
Shares forfeited (in shares) | 4.4 | ||||
Co-Founder Grants | Tranche One | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 4 years | ||||
Chief Executive Officer | Co-Founder Grants | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 10.3 | 10.3 | |||
Director | Co-Founder Grants | Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares granted (in shares) | 4.4 | ||||
Shares forfeited (in shares) | 4.4 |
Description of the Business and Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Trade and Other Receivables - Customer Concentration Risk |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 15.00% | 11.00% |
Customer B | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 33.00% | 28.00% |
Description of the Business and Summary of Significant Accounting Policies - Deferred Commissions, Net (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
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Capitalized Contract Cost [Line Items] | |||||
Additional contract costs deferred | $ 7.2 | $ 8.6 | $ 17.0 | $ 27.6 | |
Amortization of deferred commissions | $ 8.2 | $ 6.7 | $ 23.6 | $ 17.5 | |
Deferred Commissions | |||||
Capitalized Contract Cost [Line Items] | |||||
Deferred contract costs, amortization period | 5 years | 5 years | |||
Deferred Commissions | Prepaid Expenses and Other Current Assets | |||||
Capitalized Contract Cost [Line Items] | |||||
Deferred contract costs | $ 30.1 | $ 30.1 | $ 26.7 | ||
Deferred Commissions | Other Assets | |||||
Capitalized Contract Cost [Line Items] | |||||
Deferred contract costs | $ 37.3 | $ 37.3 | $ 47.3 | ||
Renewal Commissions | |||||
Capitalized Contract Cost [Line Items] | |||||
Deferred contract costs, amortization period | 1 year | 1 year |
Description of the Business and Summary of Significant Accounting Policies - Property and Equipment, Net (Details) |
9 Months Ended |
---|---|
Sep. 30, 2021 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Minimum | Buildings | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 20 years |
Minimum | Datacenter and other computer equipment | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Minimum | Office equipment and other | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Maximum | Buildings | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 30 years |
Maximum | Datacenter and other computer equipment | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Maximum | Office equipment and other | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 7 years |
Description of the Business and Summary of Significant Accounting Policies - Lease Obligations (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Mar. 31, 2021 |
Dec. 31, 2020 |
Sep. 30, 2021 |
|
Accounting Policies [Abstract] | |||
Lease impairment charges | $ 17.3 | $ 398.2 | $ 17.3 |
Cash, Cash Equivalents and Short-Term Investments - Schedule of Components (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents, at carrying value | $ 688.9 | $ 314.9 |
Cash and cash equivalents, estimated fair value | 688.9 | 314.9 |
Short-term investments, amortized cost | 1,241.1 | 802.2 |
Short-term investments, unrealized gain | 1.5 | 4.3 |
Short-term investments, unrealized loss | (2.8) | (0.1) |
Short-term investments, estimated fair value | 1,239.8 | 806.4 |
Total cash, cash equivalents, and short term investments, before unrealized gains (losses) on investments | 1,930.0 | 1,117.1 |
Total cash, cash equivalents, and short term investments | 1,928.7 | 1,121.3 |
Corporate notes and obligations | ||
Cash and Cash Equivalents [Line Items] | ||
Short-term investments, amortized cost | 597.1 | 374.3 |
Short-term investments, unrealized gain | 1.1 | 2.5 |
Short-term investments, unrealized loss | (1.1) | (0.1) |
Short-term investments, estimated fair value | 597.1 | 376.7 |
U.S. Treasury securities | ||
Cash and Cash Equivalents [Line Items] | ||
Short-term investments, amortized cost | 234.2 | 215.4 |
Short-term investments, unrealized gain | 0.1 | 1.0 |
Short-term investments, unrealized loss | (1.2) | 0.0 |
Short-term investments, estimated fair value | 233.1 | 216.4 |
Asset backed securities | ||
Cash and Cash Equivalents [Line Items] | ||
Short-term investments, amortized cost | 144.0 | 73.5 |
Short-term investments, unrealized gain | 0.2 | 0.6 |
Short-term investments, unrealized loss | (0.2) | 0.0 |
Short-term investments, estimated fair value | 144.0 | 74.1 |
Commercial paper | ||
Cash and Cash Equivalents [Line Items] | ||
Short-term investments, amortized cost | 95.6 | 22.5 |
Short-term investments, unrealized gain | 0.0 | 0.0 |
Short-term investments, unrealized loss | 0.0 | 0.0 |
Short-term investments, estimated fair value | 95.6 | 22.5 |
Municipal securities | ||
Cash and Cash Equivalents [Line Items] | ||
Short-term investments, amortized cost | 71.0 | 38.7 |
Short-term investments, unrealized gain | 0.1 | 0.1 |
Short-term investments, unrealized loss | (0.2) | 0.0 |
Short-term investments, estimated fair value | 70.9 | 38.8 |
Certificates of deposit | ||
Cash and Cash Equivalents [Line Items] | ||
Short-term investments, amortized cost | 56.3 | 17.6 |
Short-term investments, unrealized gain | 0.0 | 0.0 |
Short-term investments, unrealized loss | 0.0 | 0.0 |
Short-term investments, estimated fair value | 56.3 | 17.6 |
Foreign government obligations | ||
Cash and Cash Equivalents [Line Items] | ||
Short-term investments, amortized cost | 18.4 | 18.5 |
Short-term investments, unrealized gain | 0.0 | 0.0 |
Short-term investments, unrealized loss | 0.0 | 0.0 |
Short-term investments, estimated fair value | 18.4 | 18.5 |
U.S. agency obligations | ||
Cash and Cash Equivalents [Line Items] | ||
Short-term investments, amortized cost | 14.5 | 23.0 |
Short-term investments, unrealized gain | 0.0 | 0.1 |
Short-term investments, unrealized loss | (0.1) | 0.0 |
Short-term investments, estimated fair value | 14.4 | 23.1 |
Supranational Securities | ||
Cash and Cash Equivalents [Line Items] | ||
Short-term investments, amortized cost | 10.0 | 18.7 |
Short-term investments, unrealized gain | 0.0 | 0.0 |
Short-term investments, unrealized loss | 0.0 | 0.0 |
Short-term investments, estimated fair value | 10.0 | 18.7 |
Cash | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents, at carrying value | 85.8 | 67.2 |
Cash and cash equivalents, estimated fair value | 85.8 | 67.2 |
Money market funds | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents, at carrying value | 595.3 | 222.6 |
Cash and cash equivalents, estimated fair value | 595.3 | 222.6 |
Commercial paper | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents, at carrying value | 4.5 | 8.0 |
Cash and cash equivalents, estimated fair value | 4.5 | 8.0 |
Certificates of deposit | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents, at carrying value | 2.0 | |
Cash and cash equivalents, estimated fair value | 2.0 | |
Corporate notes and obligations | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents, at carrying value | 1.3 | 5.0 |
Cash and cash equivalents, estimated fair value | $ 1.3 | 5.0 |
U.S. Treasury securities | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents, at carrying value | 10.6 | |
Cash and cash equivalents, estimated fair value | 10.6 | |
Municipal securities | ||
Cash and Cash Equivalents [Line Items] | ||
Cash and cash equivalents, at carrying value | 1.5 | |
Cash and cash equivalents, estimated fair value | $ 1.5 |
Cash, Cash Equivalents and Short-Term Investments - Narrative (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2021
USD ($)
investment
investmentType
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2021
USD ($)
investment
investmentType
|
Sep. 30, 2020
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
Cash and Cash Equivalents [Abstract] | |||||
Cash in transit for credit and debit card transactions | $ 11.0 | $ 11.0 | $ 9.8 | ||
Number of investments in unrealized loss positions | investment | 460 | 460 | |||
Number of security types | investmentType | 9 | 9 | |||
Number of security types in loss position | investmentType | 6 | 6 | |||
Unrealized losses, short term investments | $ 2.8 | $ 2.8 | |||
Investment income | $ 1.7 | $ 2.6 | $ 5.5 | $ 10.4 |
Cash, Cash Equivalents and Short-Term Investments - Contractual Maturities (Details) $ in Millions |
Sep. 30, 2021
USD ($)
|
---|---|
Amortized cost | |
Due within one year | $ 297.3 |
Due between one to three years | 560.2 |
Due after three years | 383.6 |
Total | 1,241.1 |
Estimated fair value | |
Due within one year | 297.7 |
Due between one to three years | 560.5 |
Due after three years | 381.6 |
Total | $ 1,239.8 |
Fair Value Measurements (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | $ 688.9 | $ 314.9 |
Total short-term investments | 1,239.8 | 806.4 |
U.S. Treasury securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 233.1 | 216.4 |
Asset backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 144.0 | 74.1 |
Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 95.6 | 22.5 |
Municipal securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 70.9 | 38.8 |
Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 56.3 | 17.6 |
Foreign government obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 18.4 | 18.5 |
U.S. agency obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 14.4 | 23.1 |
Supranational Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 10.0 | 18.7 |
Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 595.3 | 222.6 |
Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 4.5 | 8.0 |
Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 2.0 | |
U.S. Treasury securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 10.6 | |
Municipal securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 1.5 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 603.1 | 247.7 |
Total short-term investments | 1,239.8 | 806.4 |
Total | 1,842.9 | 1,054.1 |
Fair Value, Measurements, Recurring | Corporate notes and obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 597.1 | 376.7 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 233.1 | 216.4 |
Fair Value, Measurements, Recurring | Asset backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 144.0 | 74.1 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 95.6 | 22.5 |
Fair Value, Measurements, Recurring | Municipal securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 70.9 | 17.6 |
Fair Value, Measurements, Recurring | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 56.3 | 38.8 |
Fair Value, Measurements, Recurring | Foreign government obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 18.4 | 18.5 |
Fair Value, Measurements, Recurring | U.S. agency obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 14.4 | 23.1 |
Fair Value, Measurements, Recurring | Supranational Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 10.0 | 18.7 |
Fair Value, Measurements, Recurring | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 595.3 | 222.6 |
Fair Value, Measurements, Recurring | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 4.5 | 8.0 |
Fair Value, Measurements, Recurring | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 2.0 | |
Fair Value, Measurements, Recurring | Corporate notes and obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 1.3 | 5.0 |
Fair Value, Measurements, Recurring | U.S. Treasury securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 10.6 | |
Fair Value, Measurements, Recurring | Municipal securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 1.5 | |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 595.3 | 222.6 |
Total short-term investments | 0.0 | 0.0 |
Total | 595.3 | 222.6 |
Fair Value, Measurements, Recurring | Level 1 | Corporate notes and obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 1 | Asset backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 1 | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 1 | Municipal securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 1 | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign government obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. agency obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 1 | Supranational Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 1 | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 595.3 | 222.6 |
Fair Value, Measurements, Recurring | Level 1 | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 1 | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 0.0 | |
Fair Value, Measurements, Recurring | Level 1 | Corporate notes and obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Treasury securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 0.0 | |
Fair Value, Measurements, Recurring | Level 1 | Municipal securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 0.0 | |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 7.8 | 25.1 |
Total short-term investments | 1,239.8 | 806.4 |
Total | 1,247.6 | 831.5 |
Fair Value, Measurements, Recurring | Level 2 | Corporate notes and obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 597.1 | 376.7 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 233.1 | 216.4 |
Fair Value, Measurements, Recurring | Level 2 | Asset backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 144.0 | 74.1 |
Fair Value, Measurements, Recurring | Level 2 | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 95.6 | 22.5 |
Fair Value, Measurements, Recurring | Level 2 | Municipal securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 70.9 | 17.6 |
Fair Value, Measurements, Recurring | Level 2 | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 56.3 | 38.8 |
Fair Value, Measurements, Recurring | Level 2 | Foreign government obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 18.4 | 18.5 |
Fair Value, Measurements, Recurring | Level 2 | U.S. agency obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 14.4 | 23.1 |
Fair Value, Measurements, Recurring | Level 2 | Supranational Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 10.0 | 18.7 |
Fair Value, Measurements, Recurring | Level 2 | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 2 | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 4.5 | 8.0 |
Fair Value, Measurements, Recurring | Level 2 | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 2.0 | |
Fair Value, Measurements, Recurring | Level 2 | Corporate notes and obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 1.3 | 5.0 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 10.6 | |
Fair Value, Measurements, Recurring | Level 2 | Municipal securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 1.5 | |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 0.0 | 0.0 |
Total short-term investments | 0.0 | 0.0 |
Total | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 3 | Corporate notes and obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 3 | Asset backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 3 | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 3 | Municipal securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 3 | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 3 | Foreign government obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. agency obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 3 | Supranational Securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total short-term investments | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 3 | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 3 | Commercial paper | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 3 | Certificates of deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 0.0 | |
Fair Value, Measurements, Recurring | Level 3 | Corporate notes and obligations | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | $ 0.0 | 0.0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Treasury securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | 0.0 | |
Fair Value, Measurements, Recurring | Level 3 | Municipal securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, estimated fair value | $ 0.0 |
Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
2026 Convertible Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible debt, fair value | $ 728.0 | |
2026 Convertible Notes | Convertible Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible debt, aggregate principal amount | $ 695.8 | |
Convertible debt, interest rate | 0.00% | |
2028 Convertible Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible debt, fair value | $ 743.0 | |
2028 Convertible Notes | Convertible Debt | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Convertible debt, aggregate principal amount | $ 693.3 | |
Convertible debt, interest rate | 0.00% | |
Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity investments | $ 5.6 | $ 5.6 |
Property and Equipment, Net - Schedule of Components (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 829.0 | $ 790.5 |
Accumulated depreciation and amortization | (483.2) | (451.8) |
Property and equipment, net | 345.8 | 338.7 |
Data center and other computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 688.4 | 652.7 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 20.0 | 19.9 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 108.1 | 96.9 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 12.5 | $ 21.0 |
Property and Equipment, Net - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Property, Plant and Equipment [Abstract] | |||||
Assets under equipment finance lease, gross | $ 484.8 | $ 484.8 | $ 395.2 | ||
Assets under equipment finance lease, accumulated depreciation | 230.6 | 230.6 | $ 156.6 | ||
Depreciation | $ 34.8 | $ 37.4 | $ 99.0 | $ 109.9 |
Business Combinations - Schedule of Purchase Consideration (Details) - USD ($) $ in Millions |
Mar. 22, 2021 |
Feb. 08, 2019 |
---|---|---|
DocSend Inc. | ||
Business Acquisition [Line Items] | ||
Cash paid to common and preferred stockholders and vested option holders | $ 125.5 | |
Transaction costs paid by Dropbox | 5.0 | |
Fair value of assumed options attributable to pre-combination services | 1.2 | |
Purchase price adjustments | (0.1) | |
Total purchase consideration | $ 131.6 | |
HelloSign Inc. | ||
Business Acquisition [Line Items] | ||
Cash paid to common and preferred stockholders and vested option holders | $ 175.2 | |
Transaction costs paid by Dropbox | 2.4 | |
Fair value of assumed options attributable to pre-combination services | 0.8 | |
Purchase price adjustments | (0.5) | |
Total purchase consideration | $ 177.9 |
Business Combinations - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Mar. 22, 2021 |
Feb. 08, 2019 |
Sep. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2021 |
|
Business Acquisition [Line Items] | |||||
Purchase consideration, agreements with key personnel | $ 8.0 | $ 8.0 | |||
DocSend Inc. | |||||
Business Acquisition [Line Items] | |||||
Purchase consideration, agreements with key personnel | $ 30.7 | ||||
Required service period | 3 years | ||||
Acquired finite-lived intangible assets weighted average amortization period | 5 years | ||||
Due diligence costs | $ 1.2 | ||||
HelloSign Inc. | |||||
Business Acquisition [Line Items] | |||||
Purchase consideration, agreements with key personnel | $ 48.5 | ||||
Required service period | 3 years | ||||
Acquired finite-lived intangible assets weighted average amortization period | 4 years 10 months 24 days | ||||
Personnel agreement, expense recognized | $ 4.1 | $ 12.1 |
Business Combinations - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Mar. 22, 2021 |
Dec. 31, 2020 |
Feb. 08, 2019 |
---|---|---|---|---|
Liabilities assumed: | ||||
Goodwill | $ 347.2 | $ 236.9 | ||
DocSend Inc. | ||||
Assets acquired: | ||||
Cash and cash equivalents | $ 5.1 | |||
Acquisition-related intangible assets | 20.6 | |||
Accounts receivable, prepaid and other assets | 6.1 | |||
Total assets acquired | 31.8 | |||
Liabilities assumed: | ||||
Accounts payable, accrued and other liabilities | 6.4 | |||
Deferred revenue | 1.9 | |||
Deferred tax liability | 1.9 | |||
Total liabilities assumed | 10.2 | |||
Net assets acquired, excluding goodwill | 21.6 | |||
Total purchase consideration | 131.6 | |||
Goodwill | $ 110.0 | |||
HelloSign Inc. | ||||
Assets acquired: | ||||
Cash and cash equivalents | $ 5.5 | |||
Short-term investments | 7.8 | |||
Acquisition-related intangible assets | 44.6 | |||
Accounts receivable, prepaid and other assets | 5.0 | |||
Total assets acquired | 62.9 | |||
Liabilities assumed: | ||||
Accounts payable, accrued and other liabilities | 6.3 | |||
Deferred revenue | 4.8 | |||
Deferred tax liability | 6.9 | |||
Total liabilities assumed | 18.0 | |||
Net assets acquired, excluding goodwill | 44.9 | |||
Total purchase consideration | 177.9 | |||
Goodwill | $ 133.0 |
Business Combinations - Schedule of Assets Acquired (Details) - USD ($) $ in Millions |
Mar. 22, 2021 |
Feb. 08, 2019 |
---|---|---|
DocSend Inc. | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair values | $ 20.6 | |
Estimated weighted average useful lives (In years) | 5 years | |
DocSend Inc. | Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair values | $ 11.5 | |
Estimated weighted average useful lives (In years) | 5 years | |
DocSend Inc. | Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair values | $ 8.1 | |
Estimated weighted average useful lives (In years) | 5 years | |
DocSend Inc. | Trade name | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair values | $ 1.0 | |
Estimated weighted average useful lives (In years) | 5 years | |
HelloSign Inc. | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair values | $ 44.6 | |
Estimated weighted average useful lives (In years) | 4 years 10 months 24 days | |
HelloSign Inc. | Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair values | $ 19.6 | |
Estimated weighted average useful lives (In years) | 5 years | |
HelloSign Inc. | Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair values | $ 20.5 | |
Estimated weighted average useful lives (In years) | 4 years 10 months 24 days | |
HelloSign Inc. | Trade name | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Estimated fair values | $ 4.5 | |
Estimated weighted average useful lives (In years) | 5 years |
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 108.6 | $ 81.3 |
Accumulated amortization | (59.0) | (47.8) |
Intangible assets, net | 49.6 | 33.5 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 37.5 | 26.0 |
Weighted- average remaining useful life (in years) | 3 years 4 months 24 days | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 28.6 | 20.5 |
Weighted- average remaining useful life (in years) | 3 years 8 months 12 days | |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 19.5 | 12.8 |
Weighted- average remaining useful life (in years) | 5 years 6 months | |
Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 9.0 | 9.0 |
Weighted- average remaining useful life (in years) | 10 months 24 days | |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 5.6 | 4.6 |
Weighted- average remaining useful life (in years) | 2 years 10 months 24 days | |
Licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 4.6 | 4.6 |
Assembled workforce in asset acquisitions | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 3.0 | 3.0 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 0.8 | $ 0.8 |
Weighted- average remaining useful life (in years) | 4 years |
Intangible Assets - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 4.0 | $ 3.6 | $ 11.2 | $ 10.6 |
Intangible Assets - Schedule of Future Amortization Expense (Details) $ in Millions |
Sep. 30, 2021
USD ($)
|
---|---|
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
Remaining three months of Fiscal 2021 | $ 4.2 |
2022 | 13.7 |
2023 | 13.2 |
2024 | 8.8 |
2025 | 6.9 |
Thereafter | 2.8 |
Total | $ 49.6 |
Goodwill (Details) - USD ($) |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 236,900,000 | |
DocSend acquisition | 110,000,000.0 | |
Effect of foreign currency translation | 300,000 | |
Goodwill, ending balance | 347,200,000 | $ 236,900,000 |
Goodwill impairment | $ 0 | $ 0 |
Debt - Revolving Credit Facility (Details) - Credit And Guarantee Agreement - USD ($) |
1 Months Ended | ||||
---|---|---|---|---|---|
Apr. 30, 2017 |
Feb. 28, 2021 |
Apr. 30, 2017 |
Sep. 30, 2021 |
Feb. 28, 2018 |
|
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Unused capacity, commitment fee (percent) | 0.20% | ||||
Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee (percent) | 1.375% | ||||
Fronting fee (percent) | 0.125% | ||||
Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Covenant terms, minimum liquidity balance | $ 100,000,000 | ||||
Line of Credit | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 600,000,000 | $ 500,000,000 | $ 600,000,000 | $ 725,000,000 | |
Debt issuance fees | $ 2,600,000 | 1,700,000 | $ 2,600,000 | ||
Debt instrument, term | 5 years | ||||
Line of credit facility, accordion feature, increase limit | 250,000,000 | ||||
Write off of deferred debt issuance cost | $ 200,000 | ||||
Aggregate letters of credit outstanding amount | 52,200,000 | ||||
Remaining borrowing capacity | $ 447,800,000 | ||||
Line of Credit | Revolving Credit Facility | LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (percent) | 1.375% | ||||
Line of Credit | Revolving Credit Facility | Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate (percent) | 0.375% | ||||
Line of Credit | Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 187,500,000 |
Debt - Convertible Senior Notes (Details) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021
USD ($)
$ / shares
|
Mar. 31, 2021
USD ($)
|
Sep. 30, 2021
USD ($)
day
$ / shares
|
Sep. 30, 2020
USD ($)
|
|
Debt Instrument [Line Items] | ||||
Proceeds from issuance of convertible senior notes | $ 1,389.1 | $ 0.0 | ||
Convertible Scenario One | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, threshold trading days | day | 20 | |||
Convertible debt, threshold consecutive trading days | day | 30 | |||
Convertible debt, threshold percentage of stock price trigger | 130.00% | |||
Convertible Scenario Two | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, threshold trading days | day | 5 | |||
Convertible debt, threshold consecutive trading days | day | 5 | |||
Convertible debt, threshold percentage of stock price trigger | 98.00% | |||
Redemption Scenario | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, threshold trading days | day | 20 | |||
Convertible debt, threshold consecutive trading days | day | 30 | |||
Convertible debt, threshold percentage of stock price trigger | 130.00% | |||
Convertible Debt | Redemption Scenario | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, redemption percentage | 100.00% | |||
Convertible Debt | Fundamental Change | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, redemption percentage | 100.00% | |||
2026 Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, conversion rate | 0.0261458 | |||
Convertible debt, conversion rate (in dollars per share) | $ / shares | $ 38.25 | $ 38.25 | ||
Interest expense | $ 0.6 | $ 1.3 | ||
2026 Convertible Notes | Maximum | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, conversion rate | 0.0431406 | |||
2026 Convertible Notes | Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Proceeds from issuance of convertible senior notes | $ 695.8 | |||
Debt issuance costs | $ 11.0 | $ 11.0 | ||
Debt instrument, term | 5 years | |||
Effective interest rate | 0.32% | 0.32% | ||
2028 Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, conversion rate | 0.0282889 | |||
Convertible debt, conversion rate (in dollars per share) | $ / shares | $ 35.35 | $ 35.35 | ||
Interest expense | $ 0.4 | $ 0.9 | ||
2028 Convertible Notes | Maximum | ||||
Debt Instrument [Line Items] | ||||
Convertible debt, conversion rate | 0.0431406 | |||
2028 Convertible Notes | Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Proceeds from issuance of convertible senior notes | $ 693.3 | |||
Debt issuance costs | $ 11.0 | $ 11.0 | ||
Debt instrument, term | 7 years | |||
Effective interest rate | 0.22% | 0.22% |
Debt - Schedule of Convertible Notes (Details) $ in Millions |
Sep. 30, 2021
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Principal balance | $ 1,389.1 |
Convertible Debt | |
Debt Instrument [Line Items] | |
Principal balance | 1,389.1 |
Unamortized issuance costs | (19.8) |
Carrying value, net | 1,369.3 |
Convertible Debt | 2026 Convertible Notes | |
Debt Instrument [Line Items] | |
Principal balance | 695.8 |
Unamortized issuance costs | (9.7) |
Carrying value, net | 686.1 |
Convertible Debt | 2028 Convertible Notes | |
Debt Instrument [Line Items] | |
Principal balance | 693.3 |
Unamortized issuance costs | (10.1) |
Carrying value, net | $ 683.2 |
Debt - Long Term Debt Maturities (Details) $ in Millions |
Sep. 30, 2021
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
October 1, 2021 through December 31, 2021 | $ 0.0 |
2022 | 0.0 |
2023 | 0.0 |
2024 | 0.0 |
2025 | 0.0 |
2026 | 695.8 |
Thereafter | 693.3 |
Total | $ 1,389.1 |
Debt - Convertible Note Hedges and Warrants (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Derivative [Line Items] | ||
Proceeds from sale of warrants in connection with issuance of convertible senior notes | $ 202.9 | $ 0.0 |
2026 Convertible Notes | ||
Derivative [Line Items] | ||
Convertible debt, conversion rate (in dollars per share) | $ 38.25 | |
Convertible debt, effective conversion rate (in dollars per share) | 46.36 | |
2028 Convertible Notes | ||
Derivative [Line Items] | ||
Convertible debt, conversion rate (in dollars per share) | 35.35 | |
Convertible debt, effective conversion rate (in dollars per share) | $ 46.36 | |
2026 Warrants | ||
Derivative [Line Items] | ||
Number of shares covered by warrant (in shares) | 18.1 | |
Warrant price (in dollars per share) | $ 46.36 | |
2028 Warrants | ||
Derivative [Line Items] | ||
Number of shares covered by warrant (in shares) | 20.1 | |
Warrant price (in dollars per share) | $ 46.36 | |
2026 Notes Hedge | ||
Derivative [Line Items] | ||
Convertible note hedge, number of shares covered by hedge (in shares) | 18.2 | |
Convertible note hedge, strike price (in dollars per share) | $ 38.25 | |
2028 Notes Hedge | ||
Derivative [Line Items] | ||
Convertible note hedge, number of shares covered by hedge (in shares) | 19.6 | |
Convertible note hedge, strike price (in dollars per share) | $ 35.35 | |
Convertible Note Hedge | ||
Derivative [Line Items] | ||
Cost of note hedge transaction | $ 265.3 |
Leases - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Lessee, Lease, Description [Line Items] | ||||||
Lease, renewal term | 5 years | 5 years | ||||
Sublease income | $ 4,500,000 | $ 1,700,000 | $ 12,400,000 | $ 5,200,000 | ||
Minimum obligations | 842,900,000 | 842,900,000 | ||||
Tenant improvements | 75,000,000.0 | 75,000,000.0 | ||||
Lease impairment charges | $ 17,300,000 | $ 398,200,000 | 17,300,000 | |||
Operating leases, not yet commenced, value | 49,600,000 | 49,600,000 | ||||
Sublease commitment not yet commenced, value | $ 6,400,000 | $ 6,400,000 | ||||
Sublease commitment, not yet commenced, term of contract | 7 years | 7 years | ||||
Minimum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Lease, remaining lease term | 1 year | 1 year | ||||
Operating sublease, term | 1 year | |||||
Maximum | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Lease, remaining lease term | 15 years | 15 years | ||||
Operating sublease, term | 12 years | |||||
Operating leases, not yet commenced, term of contract | 15 years | 15 years | ||||
Line of Credit | Letter of Credit | Corporate Headquarters Lease | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Letter of credit | $ 34,200,000 | $ 34,200,000 |
Leases - Future Minimum Lease Payments (Details) $ in Millions |
Sep. 30, 2021
USD ($)
|
---|---|
Operating leases | |
2021 (excluding the nine months ended September 30, 2021) | $ 30.7 |
2022 | 123.2 |
2023 | 106.3 |
2024 | 95.7 |
2025 | 90.6 |
Thereafter | 606.1 |
Total future minimum lease payments | 1,052.6 |
Less imputed interest | (216.4) |
Less tenant improvement receivables | (7.4) |
Operating lease, liability | 828.8 |
Finance leases | |
2021 (excluding the nine months ended September 30, 2021) | 34.2 |
2022 | 122.4 |
2023 | 88.8 |
2024 | 53.6 |
2025 | 15.8 |
Thereafter | 0.0 |
Total future minimum lease payments | 314.8 |
Less imputed interest | (11.7) |
Less tenant improvement receivables | 0.0 |
Finance lease, liability | $ 303.1 |
Leases - Future Subtenant Payments Receivable (Details) $ in Millions |
Sep. 30, 2021
USD ($)
|
---|---|
Leases [Abstract] | |
2021 (excluding the nine months ended September 30, 2021) | $ 4.7 |
2022 | 24.3 |
2023 | 17.1 |
2024 | 16.5 |
2025 | 15.6 |
Thereafter | 82.8 |
Total future sublease rent payments | 161.0 |
Less sub-tenant incentive | (10.5) |
Total future sublease rent payments, net | $ 150.5 |
Commitments and Contingencies (Details) - lawsuit |
Oct. 04, 2019 |
Sep. 30, 2021 |
---|---|---|
Loss Contingencies [Line Items] | ||
Number of pending claims | 6 | |
Class Action Lawsuits Filed in the State of California, San Mateo County | ||
Loss Contingencies [Line Items] | ||
Number of pending claims | 4 | |
Class Action Lawsuits Filed in the U.S. District Court | ||
Loss Contingencies [Line Items] | ||
Number of claims filed | 2 |
Accrued and Other Current Liabilities (Details) - USD ($) $ in Millions |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Payables and Accruals [Abstract] | ||
Non-income taxes payable | $ 85.0 | $ 85.9 |
Accrued legal and other external fees | 38.9 | 23.4 |
Other accrued and current liabilities | 47.0 | 47.4 |
Total accrued and other current liabilities | $ 170.9 | $ 156.7 |
Stockholders' (Deficit) Equity - Common Stock, Convertible Preferred Stock, Preferred Stock Narrative (Details) |
1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|---|
Dec. 31, 2017
shares
|
Sep. 30, 2021
$ / shares
shares
|
Sep. 30, 2020
shares
|
Sep. 30, 2021
vote
$ / shares
shares
|
Sep. 30, 2020
shares
|
Dec. 31, 2020
shares
|
|
Class of Stock [Line Items] | ||||||
Preferred stock, shares authorized (in shares) | 240,000,000.0 | 240,000,000.0 | ||||
Restricted Stock | ||||||
Class of Stock [Line Items] | ||||||
Shares granted (in shares) | 14,700,000 | |||||
Co-Founder Grants | Restricted Stock | ||||||
Class of Stock [Line Items] | ||||||
Shares granted (in shares) | 14,700,000 | |||||
Co-Founder Grants | Restricted Stock | Chief Executive Officer | ||||||
Class of Stock [Line Items] | ||||||
Shares granted (in shares) | 10,300,000 | 10,300,000 | ||||
Class A common stock | ||||||
Class of Stock [Line Items] | ||||||
Votes per share | vote | 1 | |||||
Common stock, shares authorized (in shares) | 2,400,000,000 | 2,400,000,000 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | ||||
Common stock, shares issued (in shares) | 299,900,000 | 299,900,000 | 322,300,000 | |||
Common stock, shares outstanding (in shares) | 299,900,000 | 299,900,000 | 322,300,000 | |||
Class B common stock | ||||||
Class of Stock [Line Items] | ||||||
Votes per share | vote | 10 | |||||
Common stock, shares authorized (in shares) | 475,000,000.0 | 475,000,000.0 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | ||||
Shares converted in conversion (in shares) | 200,000 | 100,000 | 500,000 | 63,500,000 | ||
Common stock, shares issued (in shares) | 82,900,000 | 82,900,000 | 83,500,000 | |||
Common stock, shares outstanding (in shares) | 82,900,000 | 82,900,000 | 83,500,000 | |||
Class C common stock | ||||||
Class of Stock [Line Items] | ||||||
Votes per share | vote | 0 | |||||
Common stock, shares authorized (in shares) | 800,000,000.0 | 800,000,000.0 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | ||||
Common stock, shares issued (in shares) | 0 | 0 | 0 | |||
Common stock, shares outstanding (in shares) | 0 | 0 | 0 |
Stockholders' (Deficit) Equity - Stock Repurchase Program (Details) - USD ($) shares in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Feb. 28, 2021 |
Feb. 29, 2020 |
|
Class of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 600,000,000 | $ 600,000,000 | $ 1,000,000,000 | $ 600,000,000 | ||
Stock repurchased and retired during period (in shares) | 5.8 | 1.8 | 29.9 | 9.2 | ||
Stock repurchased and retired during period, aggregate purchase price | $ 181,000,000.0 | $ 37,500,000 | $ 763,700,000 | $ 177,300,000 | ||
Convertible Debt | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchased and retired during period (in shares) | 8.6 | |||||
Stock repurchased and retired during period, aggregate purchase price | $ 200,000,000 |
Stockholders' (Deficit) Equity - Equity Incentive Plans Narrative (Details) - USD ($) shares in Millions, $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued and outstanding (in shares) | 1.0 | 1.3 |
2018 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 10 years | |
Remaining unamortized stock-based compensation | $ 613.8 | |
Unamortized stock-based compensation, requisite service period | 2 years 8 months 12 days | |
2018 Plan | Employee Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 10 years | |
Vesting period | 4 years | |
Equity Incentive Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued and outstanding (in shares) | 28.4 | |
Shares available for grant (in shares) | 97.4 |
Stockholders' (Deficit) Equity - Schedule of Stock Option and Restricted Stock Activity (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 22, 2021 |
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Number of shares available for issuance under the Plans | |||
Beginning balance (in shares) | 78.5 | ||
Additional shares authorized (in shares) | 20.3 | ||
Stock options assumed (in shares) | 0.4 | ||
Options and restricted stock units and awards canceled (in shares) | 9.3 | ||
Shares repurchased for tax withholdings on release of restricted stock units and awards (in shares) | 3.6 | ||
Options and restricted stock units and awards granted (in shares) | (14.7) | ||
Ending balance (in shares) | 97.4 | 78.5 | |
Options Outstanding, Number of shares outstanding under the Plans | |||
Beginning balance (in shares) | 1.3 | ||
Stock options assumed (in shares) | 0.4 | ||
Options exercised and restricted stock units and awards released (in shares) | (0.6) | ||
Options and restricted stock units and awards canceled (in shares) | (0.1) | ||
Ending balance (in shares) | 1.0 | 1.3 | |
Vested at end of period (in shares) | 0.5 | ||
Unvested at end of period (in shares) | 0.5 | ||
Options Outstanding, Weighted- average exercise price per share | |||
Beginning balance (in dollars per share) | $ 13.73 | ||
Stock options assumed (in dollars per share) | 2.17 | ||
Options exercised and restricted stock units and awards released (in dollars per share) | 10.15 | ||
Options and restricted stock units and awards canceled (in dollars per share) | 11.37 | ||
Ending balance (in dollars per share) | 11.70 | $ 13.73 | |
Vested at end of period (in dollars per share) | 18.47 | ||
Unvested at end of period (in dollars per shares) | $ 3.39 | ||
Options Outstanding, Weighted- average remaining contractual term (In years) | |||
Weighted-average contractual term | 5 years 8 months 12 days | 5 years 8 months 12 days | |
Vested at end of period | 4 years 2 months 12 days | ||
Options outstanding, aggregate intrinsic value | $ 15,080 | $ 11,350 | |
Vested at end of period, aggregate intrinsic value | 5,140 | ||
Unvested at end of period, aggregate intrinsic value | $ 9,940 | ||
DocSend Inc. | |||
Options Outstanding, Number of shares outstanding under the Plans | |||
Stock options assumed (in shares) | 0.4 | ||
Restricted Stock | |||
Restricted Stock Outstanding, Number of Plan shares outstanding | |||
Beginning balance (in shares) | 31.9 | ||
Options exercised and restricted stock units and awards released (in shares) | (10.0) | ||
Options and restricted stock units and awards canceled (in shares) | (9.2) | ||
Options and restricted stock units and awards granted (in shares) | 14.7 | ||
Ending balance (in shares) | 27.4 | 31.9 | |
Vested at end of period (in shares) | 0.0 | ||
Restricted Stock Outstanding, Weighted- average grant date fair value per share | |||
Beginning balance (in dollars per share) | $ 19.79 | ||
Stock options assumed (in dollars per share) | 0 | ||
Options exercised and restricted stock units and awards released (in dollars per share) | 20.61 | ||
Options and restricted stock units and awards canceled (in dollars per share) | 20.77 | ||
Shares repurchased for tax withholdings on release of restricted stock units and awards (in dollars per share) | 20.55 | ||
Options and restricted stock units and awards granted (in dollars per share) | 26.44 | ||
Ending balance (in dollars per share) | 22.73 | $ 19.79 | |
Vested at end of period (in dollars per share) | 0 | ||
Restricted Stock | DocSend Inc. | |||
Restricted Stock Outstanding, Weighted- average grant date fair value per share | |||
Stock options assumed (in dollars per share) | $ 26.86 | ||
Fair value of awards assumed in acquisition | $ 400 |
Stockholders' (Deficit) Equity - Schedule of Pre-Tax Intrinsic Value (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Stockholders' Equity Note [Abstract] | ||||
Intrinsic value of options exercised | $ 2.4 | $ 0.5 | $ 11.1 | $ 5.3 |
Stockholders' (Deficit) Equity - Assumed Stock Options Narrative (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
9 Months Ended | |
---|---|---|
Mar. 22, 2021 |
Sep. 30, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options assumed (in shares) | 0.4 | |
Dividend yield | 0.00% | |
DocSend Inc. | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock options assumed (in shares) | 0.4 | |
Weighted average grant date fair value of stock options assumed (in dollars per share) | $ 25.28 | |
Fair value of options assumed in business combination | $ 9.3 | |
Post combination, stock-based compensation expense | $ 8.1 |
Stockholders' (Deficit) Equity - Fair Value of Stock Option Assumptions Used (Details) |
9 Months Ended | |
---|---|---|
Mar. 22, 2021 |
Sep. 30, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0.00% | |
Employee Stock Option | DocSend Inc. | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 47.00% | |
Risk-free interest rate, minimum | 0.15% | |
Risk-free interest rate, maximum | 1.29% | |
Dividend yield | 0.00% | |
Employee Stock Option | Minimum | DocSend Inc. | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 2 years | |
Employee Stock Option | Maximum | DocSend Inc. | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (in years) | 6 years 9 months 18 days |
Stockholders' (Deficit) Equity - Co-Founder Grants (Details) shares in Millions, $ in Millions |
1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|---|---|
Mar. 19, 2020
USD ($)
shares
|
Mar. 31, 2020
shares
|
Dec. 31, 2017
tranche
shares
|
Dec. 31, 2021
shares
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2020
USD ($)
|
Sep. 30, 2021
USD ($)
shares
|
Sep. 30, 2020
USD ($)
|
Dec. 31, 2020
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Reversal of stock based compensation expense | $ | $ 23.8 | ||||||||
Reversal of stock based compensation expense previously recognized | $ | $ 21.5 | ||||||||
Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted (in shares) | 14.7 | ||||||||
Shares forfeited (in shares) | 9.2 | ||||||||
Awards vesting (in shares) | 0.0 | ||||||||
Co-Founder Grants | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted (in shares) | 14.7 | ||||||||
Expiration period | 10 years | ||||||||
Number of tranches | tranche | 9 | ||||||||
Shares forfeited (in shares) | 4.4 | ||||||||
Stock-based compensation related to the Co-Founder grants | $ | $ 3.7 | $ 6.2 | $ 10.9 | $ 18.4 | |||||
Remaining unamortized stock-based compensation | $ | $ 24.8 | $ 24.8 | |||||||
Co-Founder Grants | Restricted Stock | Tranche One | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 4 years | ||||||||
Co-Founder Grants | Restricted Stock | Tranche One | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percentage vested maximum | 20.00% | ||||||||
Co-Founder Grants | Chief Executive Officer | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted (in shares) | 10.3 | 10.3 | |||||||
Co-Founder Grants | Chief Executive Officer | Restricted Stock | Forecast | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Awards vesting (in shares) | 2.1 | ||||||||
Co-Founder Grants | Director | Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted (in shares) | 4.4 | ||||||||
Shares forfeited (in shares) | 4.4 |
Net Income Per Share - Schedule of EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Numerator | ||||
Net loss attributable to common stockholders | $ 75.6 | $ 32.7 | $ 211.2 | $ 89.5 |
Denominator | ||||
Weighted-average number of common shares outstanding used in computing basic net income per share (in shares) | 385.5 | 414.2 | 390.6 | 415.2 |
Net income per common share, basic (in dollars per share) | $ 0.20 | $ 0.08 | $ 0.54 | $ 0.22 |
Numerator | ||||
Net loss attributable to common stockholders | $ 75.6 | $ 32.7 | $ 211.2 | $ 89.5 |
Diluted net income per share: | ||||
Weighted-average number of common shares outstanding used in computing basic net income per share (in shares) | 385.5 | 414.2 | 390.6 | 415.2 |
Weighted-average number of common shares outstanding used in computing diluted net income per share (in shares) | 398.1 | 419.9 | 400.3 | 419.9 |
Net income per common share, diluted (in dollars per share) | $ 0.19 | $ 0.08 | $ 0.53 | $ 0.21 |
Class A | ||||
Numerator | ||||
Net loss attributable to common stockholders | $ 59.3 | $ 25.0 | $ 166.2 | $ 61.7 |
Denominator | ||||
Weighted-average number of common shares outstanding used in computing basic net income per share (in shares) | 302.5 | 316.3 | 307.5 | 286.1 |
Net income per common share, basic (in dollars per share) | $ 0.20 | $ 0.08 | $ 0.54 | $ 0.22 |
Numerator | ||||
Net loss attributable to common stockholders | $ 59.3 | $ 25.0 | $ 166.2 | $ 61.7 |
Reallocation of net income as a result of conversion of Class B to Class A common stock | 16.3 | 7.7 | 45.0 | 27.8 |
Reallocation of net income to Class B common stock | 0.0 | 0.0 | 0.0 | 0.0 |
Net income attributable to common stockholders for diluted EPS | $ 75.6 | $ 32.7 | $ 211.2 | $ 89.5 |
Diluted net income per share: | ||||
Weighted-average number of common shares outstanding used in computing basic net income per share (in shares) | 302.5 | 316.3 | 307.5 | 286.1 |
Weighted-average effect of dilutive restricted stock units and awards and employee stock options (in shares) | 10.4 | 5.5 | 8.7 | 4.4 |
Conversion of Class B to Class A common stock (in shares) | 83.0 | 97.8 | 83.2 | 129.1 |
Weighted-average number of common shares outstanding used in computing diluted net income per share (in shares) | 395.9 | 419.7 | 399.4 | 419.6 |
Net income per common share, diluted (in dollars per share) | $ 0.19 | $ 0.08 | $ 0.53 | $ 0.21 |
Class B | ||||
Numerator | ||||
Net loss attributable to common stockholders | $ 16.3 | $ 7.7 | $ 45.0 | $ 27.8 |
Denominator | ||||
Weighted-average number of common shares outstanding used in computing basic net income per share (in shares) | 83.0 | 97.8 | 83.2 | 129.1 |
Net income per common share, basic (in dollars per share) | $ 0.20 | $ 0.08 | $ 0.54 | $ 0.22 |
Numerator | ||||
Net loss attributable to common stockholders | $ 16.3 | $ 7.7 | $ 45.0 | $ 27.8 |
Reallocation of net income as a result of conversion of Class B to Class A common stock | 0.0 | 0.0 | 0.0 | 0.0 |
Reallocation of net income to Class B common stock | (0.4) | (0.1) | (0.9) | (0.2) |
Net income attributable to common stockholders for diluted EPS | $ 15.9 | $ 7.6 | $ 44.1 | $ 27.6 |
Diluted net income per share: | ||||
Weighted-average number of common shares outstanding used in computing basic net income per share (in shares) | 83.0 | 97.8 | 83.2 | 129.1 |
Weighted-average effect of dilutive restricted stock units and awards and employee stock options (in shares) | 0.1 | 0.2 | 0.1 | 0.3 |
Conversion of Class B to Class A common stock (in shares) | 0.0 | 0.0 | 0.0 | 0.0 |
Weighted-average number of common shares outstanding used in computing diluted net income per share (in shares) | 83.1 | 98.0 | 83.3 | 129.4 |
Net income per common share, diluted (in dollars per share) | $ 0.19 | $ 0.08 | $ 0.53 | $ 0.21 |
Net Income Per Share - Schedule of Potentially Dilutive Securities Excluded from Computation (Details) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 84.4 | 21.0 | 71.0 | 22.6 |
Restricted stock units and awards | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.5 | 9.9 | 1.3 | 10.2 |
Options to purchase shares of common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0.0 | 0.8 | 0.1 | 0.8 |
Co-Founder Grants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 8.3 | 10.3 | 9.6 | 11.6 |
Convertible Senior Notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 37.8 | 0.0 | 30.0 | 0.0 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 37.8 | 0.0 | 30.0 | 0.0 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 0.5 | $ 0.9 | $ 2.3 | $ 5.8 |
Increase in unrecognized tax benefits | 3.6 | 12.1 | ||
Unrecognized tax benefits that would impact effective tax rate | 2.1 | |||
Decrease in unrecognized tax benefits for expiration of statute of limitations | $ 0.7 | $ 1.5 |
Geographic Areas (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
|
Segment Reporting Information [Line Items] | |||||
Property and equipment, net | $ 345.8 | $ 345.8 | $ 338.7 | ||
Revenue | 550.2 | $ 487.4 | 1,592.4 | $ 1,409.8 | |
United States | |||||
Segment Reporting Information [Line Items] | |||||
Property and equipment, net | 341.8 | 341.8 | 334.2 | ||
Revenue | 287.7 | 255.5 | 832.3 | 735.7 | |
International | |||||
Segment Reporting Information [Line Items] | |||||
Property and equipment, net | 4.0 | 4.0 | $ 4.5 | ||
Revenue | $ 262.5 | $ 231.9 | $ 760.1 | $ 674.1 |
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