☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 26-2574840 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Class A Common Stock, par value $0.001 per share | TWLO | The New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
Page | ||||||||
As of June 30, 2019 | As of December 31, 2018 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 535,911 | $ | 487,215 | ||||
Short-term marketable securities | 1,346,371 | 261,128 | ||||||
Accounts receivable, net | 126,780 | 97,712 | ||||||
Prepaid expenses and other current assets | 50,451 | 26,893 | ||||||
Total current assets | 2,059,513 | 872,948 | ||||||
Restricted cash | 862 | 18,119 | ||||||
Property and equipment, net | 106,480 | 63,534 | ||||||
Operating right of use asset | 151,946 | — | ||||||
Intangible assets, net | 485,410 | 27,558 | ||||||
Goodwill | 2,283,578 | 38,165 | ||||||
Other long-term assets | 21,316 | 8,386 | ||||||
Total assets | $ | 5,109,105 | $ | 1,028,710 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 29,361 | $ | 18,495 | ||||
Accrued expenses and other current liabilities | 117,625 | 96,343 | ||||||
Deferred revenue and customer deposits | 24,898 | 22,972 | ||||||
Operating lease liability, current | 21,858 | — | ||||||
Financing lease liability, current | 5,920 | — | ||||||
Note payable, current | 2,119 | — | ||||||
Total current liabilities | 201,781 | 137,810 | ||||||
Operating lease liability, noncurrent | 138,819 | — | ||||||
Financing lease liability, noncurrent | 7,752 | — | ||||||
Note payable, noncurrent | 2,237 | — | ||||||
Convertible senior notes, net | 446,177 | 434,496 | ||||||
Other long-term liabilities | 15,479 | 18,169 | ||||||
Total liabilities | 812,245 | 590,475 | ||||||
Commitments and contingencies (Note 12) | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock | — | — | ||||||
Class A and Class B common stock | 136 | 100 | ||||||
Additional paid-in capital | 4,794,177 | 808,527 | ||||||
Accumulated other comprehensive income | 3,303 | 1,282 | ||||||
Accumulated deficit | (500,756 | ) | (371,674 | ) | ||||
Total stockholders’ equity | 4,296,860 | 438,235 | ||||||
Total liabilities and stockholders’ equity | $ | 5,109,105 | $ | 1,028,710 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenue | $ | 275,039 | $ | 147,754 | $ | 508,178 | $ | 276,870 | ||||||||
Cost of revenue | 125,024 | 67,940 | 232,113 | 127,522 | ||||||||||||
Gross profit | 150,015 | 79,814 | 276,065 | 149,348 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 98,783 | 39,811 | 176,638 | 77,387 | ||||||||||||
Sales and marketing | 90,421 | 37,749 | 162,028 | 70,571 | ||||||||||||
General and administrative | 54,543 | 24,212 | 118,719 | 47,605 | ||||||||||||
Total operating expenses | 243,747 | 101,772 | 457,385 | 195,563 | ||||||||||||
Loss from operations | (93,732 | ) | (21,958 | ) | (181,320 | ) | (46,215 | ) | ||||||||
Other expenses, net | (880 | ) | (1,898 | ) | (1,516 | ) | (1,233 | ) | ||||||||
Loss before provision for income taxes | (94,612 | ) | (23,856 | ) | (182,836 | ) | (47,448 | ) | ||||||||
Income tax benefit (provision) | 2,033 | (150 | ) | 53,754 | (287 | ) | ||||||||||
Net loss attributable to common stockholders | $ | (92,579 | ) | $ | (24,006 | ) | $ | (129,082 | ) | $ | (47,735 | ) | ||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.72 | ) | $ | (0.25 | ) | $ | (1.05 | ) | $ | (0.50 | ) | ||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 129,310,641 | 96,348,356 | 122,985,716 | 95,515,583 |
As of | As of | |||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 345,518 | $ | 253,660 | ||||||||||||||||
Short-term marketable securities | 1,497,869 | 1,599,033 | ||||||||||||||||||
Accounts receivable, net | 172,865 | 154,067 | ||||||||||||||||||
Prepaid expenses and other current assets | 61,405 | 54,571 | ||||||||||||||||||
Total current assets | 2,077,657 | 2,061,331 | ||||||||||||||||||
Restricted cash | — | 75 | ||||||||||||||||||
Property and equipment, net | 150,944 | 141,256 | ||||||||||||||||||
Operating right-of-use asset | 159,439 | 156,741 | ||||||||||||||||||
Intangible assets, net | 445,153 | 460,849 | ||||||||||||||||||
Goodwill | 2,291,637 | 2,296,784 | ||||||||||||||||||
Other long-term assets | 41,435 | 33,480 | ||||||||||||||||||
Total assets | $ | 5,166,265 | $ | 5,150,516 | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Accounts payable | $ | 18,450 | $ | 39,099 | ||||||||||||||||
Accrued expenses and other current liabilities | 195,393 | 147,681 | ||||||||||||||||||
Deferred revenue and customer deposits | 26,706 | 26,362 | ||||||||||||||||||
Operating lease liability, current | 29,949 | 27,156 | ||||||||||||||||||
Finance lease liability, current | 6,539 | 6,924 | ||||||||||||||||||
Total current liabilities | 277,037 | 247,222 | ||||||||||||||||||
Operating lease liability, noncurrent | 140,120 | 139,200 | ||||||||||||||||||
Finance lease liability, noncurrent | 7,250 | 8,746 | ||||||||||||||||||
Convertible senior notes, net | 464,367 | 458,190 | ||||||||||||||||||
Other long-term liabilities | 20,966 | 17,747 | ||||||||||||||||||
Total liabilities | 909,740 | 871,105 | ||||||||||||||||||
Commitments and contingencies (Note 11) | ||||||||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||
Preferred stock | — | — | ||||||||||||||||||
Class A and Class B common stock | 139 | 138 | ||||||||||||||||||
Additional paid-in capital | 5,034,278 | 4,952,999 | ||||||||||||||||||
Accumulated other comprehensive (loss) income | (4,289) | 5,086 | ||||||||||||||||||
Accumulated deficit | (773,603) | (678,812) | ||||||||||||||||||
Total stockholders’ equity | 4,256,525 | 4,279,411 | ||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,166,265 | $ | 5,150,516 |
Three Months Ended March 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(In thousands, except share and per share amounts) | ||||||||||||||||||||
Revenue | $ | 364,868 | $ | 233,139 | ||||||||||||||||
Cost of revenue | 171,333 | 107,089 | ||||||||||||||||||
Gross profit | 193,535 | 126,050 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development | 114,339 | 77,855 | ||||||||||||||||||
Sales and marketing | 116,722 | 71,607 | ||||||||||||||||||
General and administrative | 55,170 | 64,176 | ||||||||||||||||||
Total operating expenses | 286,231 | 213,638 | ||||||||||||||||||
Loss from operations | (92,696) | (87,588) | ||||||||||||||||||
Other expenses, net | (1,118) | (636) | ||||||||||||||||||
Loss before (provision) benefit for income taxes | (93,814) | (88,224) | ||||||||||||||||||
(Provision) benefit for income taxes | (977) | 51,721 | ||||||||||||||||||
Net loss attributable to common stockholders | $ | (94,791) | $ | (36,503) | ||||||||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.68) | $ | (0.31) | ||||||||||||||||
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted | 139,231,594 | 116,590,513 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net loss | $ | (92,579 | ) | $ | (24,006 | ) | $ | (129,082 | ) | $ | (47,735 | ) | ||||
Other comprehensive income (loss): | ||||||||||||||||
Unrealized gain (loss) on marketable securities | 980 | 152 | 2,021 | (165 | ) | |||||||||||
Foreign currency translation | — | (629 | ) | — | 102 | |||||||||||
Total other comprehensive income (loss) | 980 | (477 | ) | 2,021 | (63 | ) | ||||||||||
Comprehensive loss attributable to common stockholders | $ | (91,599 | ) | $ | (24,483 | ) | $ | (127,061 | ) | $ | (47,798 | ) |
Three Months Ended March 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net loss | $ | (94,791) | $ | (36,503) | ||||||||||||||||
Other comprehensive (loss) income: | ||||||||||||||||||||
Net unrealized (loss) gain on marketable securities, net of tax | (9,375) | 1,041 | ||||||||||||||||||
Comprehensive loss attributable to common stockholders | $ | (104,166) | $ | (35,462) |
Common Stock Class A | Common Stock Class B | Additional Paid In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | 126,882,172 | $ | 124 | 11,530,627 | $ | 14 | $ | 4,952,999 | $ | 5,086 | $ | (678,812) | $ | 4,279,411 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (94,791) | (94,791) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercises of stock options | 243,029 | — | 426,001 | — | 8,231 | — | — | 8,231 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 849,763 | 1 | 23,107 | — | — | — | — | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value of equity awards withheld for tax liability | (8,726) | — | (4,692) | — | (1,674) | — | — | (1,674) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of shares of Class B common stock into shares of Class A | 618,103 | 1 | (618,103) | (1) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Donated common stock | 22,102 | — | — | — | 2,701 | — | — | 2,701 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized loss on available-for-sale securities | — | — | — | — | — | (9,375) | — | (9,375) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 72,021 | — | — | 72,021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2020 | 128,606,443 | $ | 126 | 11,356,940 | $ | 13 | $ | 5,034,278 | $ | (4,289) | $ | (773,603) | $ | 4,256,525 |
Common Stock Class A | Common Stock Class B | Additional Paid In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders' Equity | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||
Balance as of December 31, 2018 | 80,769,763 | $ | 80 | 19,310,465 | $ | 20 | $ | 808,527 | $ | 1,282 | $ | (371,674 | ) | $ | 438,235 | |||||||||||||||
Net loss | — | — | — | — | — | — | (36,503 | ) | (36,503 | ) | ||||||||||||||||||||
Exercises of vested stock options | 748,679 | 1 | 1,023,984 | 1 | 15,326 | — | — | 15,328 | ||||||||||||||||||||||
Vesting of early exercised stock options | — | — | — | 9 | — | — | 9 | |||||||||||||||||||||||
Vesting of restricted stock units | 641,406 | — | 39,360 | — | — | — | — | — | ||||||||||||||||||||||
Value of equity awards withheld for tax liability | (5,860 | ) | — | (4,431 | ) | — | (1,062 | ) | — | — | (1,062 | ) | ||||||||||||||||||
Conversion of shares of Class B common stock into shares of Class A common stock | 4,339,519 | 4 | (4,339,519 | ) | (4 | ) | — | — | — | — | ||||||||||||||||||||
Shares issued in acquisition | 23,555,081 | 24 | — | — | 2,658,874 | — | — | 2,658,898 | ||||||||||||||||||||||
Equity awards assumed in acquisition | — | — | — | — | 191,620 | — | — | 191,620 | ||||||||||||||||||||||
Unrealized gain on marketable securities | — | — | — | — | — | 1,041 | — | 1,041 | ||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 59,947 | — | — | 59,947 | ||||||||||||||||||||||
Balance as of March 31, 2019 | 110,048,588 | $ | 109 | 16,029,859 | $ | 17 | $ | 3,733,241 | $ | 2,323 | $ | (408,177 | ) | $ | 3,327,513 | |||||||||||||||
Net loss | — | — | — | — | — | — | (92,579 | ) | (92,579 | ) | ||||||||||||||||||||
Issuance of common stock in connection with a public offering, net of underwriter discounts | 8,064,515 | 8 | — | — | 979,992 | — | — | 980,000 | ||||||||||||||||||||||
Costs related to the public offering | — | — | — | — | (953 | ) | — | — | (953 | ) | ||||||||||||||||||||
Exercises of vested stock options | 313,924 | — | 503,797 | 1 | 9,926 | — | — | 9,927 | ||||||||||||||||||||||
Vesting of restricted stock units | 675,028 | 1 | 29,576 | — | — | — | — | 1 | ||||||||||||||||||||||
Value of equity awards withheld for tax liability | (5,934 | ) | — | (5,888 | ) | — | (1,518 | ) | — | — | (1,518 | ) | ||||||||||||||||||
Conversion of shares of Class B common stock into shares of Class A common stock | 2,172,598 | 2 | (2,172,598 | ) | (2 | ) | — | — | — | — | ||||||||||||||||||||
Shares issued under ESPP | 108,895 | — | — | — | 8,254 | — | — | 8,254 | ||||||||||||||||||||||
Equity awards assumed in acquisition (measurement period adjustment) | — | — | — | — | (7,126 | ) | — | — | (7,126 | ) | ||||||||||||||||||||
Unrealized gain on marketable securities | — | — | — | — | — | 980 | — | 980 | ||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 72,361 | — | — | 72,361 | ||||||||||||||||||||||
Balance as of June 30, 2019 | 121,377,614 | $ | 120 | 14,384,746 | $ | 16 | $ | 4,794,177 | $ | 3,303 | $ | (500,756 | ) | $ | 4,296,860 |
Common Stock Class A | Common Stock Class B | Additional Paid In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except share amounts) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2018 | 80,769,763 | $ | 80 | 19,310,465 | $ | 20 | $ | 808,527 | $ | 1,282 | $ | (371,674) | $ | 438,235 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | — | — | — | (36,503) | (36,503) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Exercises of stock options | 748,679 | 1 | 1,023,984 | 1 | 15,326 | — | — | 15,328 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of early exercised stock options | — | — | — | — | 9 | — | — | 9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units | 641,406 | — | 39,360 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value of equity awards withheld for tax liability | (5,860) | — | (4,431) | — | (1,062) | — | — | (1,062) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of shares of Class B common stock into shares of Class A | 4,339,519 | 4 | (4,339,519) | (4) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued in acquisition | 23,555,081 | 24 | — | — | 2,658,874 | — | — | 2,658,898 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity awards assumed in acquisition | — | — | — | — | 191,620 | — | — | 191,620 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net unrealized gain on available-for-sale securities | — | — | — | — | — | 1,041 | — | 1,041 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 59,947 | — | — | 59,947 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2019 | 110,048,588 | $ | 109 | 16,029,859 | $ | 17 | $ | 3,733,241 | $ | 2,323 | $ | (408,177) | $ | 3,327,513 |
Common Stock Class A | Common Stock Class B | Additional Paid In Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total Stockholders' Equity | |||||||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||||||
Balance as of December 31, 2017 | 69,906,550 | $ | 70 | 24,063,246 | $ | 24 | $ | 608,165 | $ | 2,025 | $ | (250,438 | ) | $ | 359,846 | |||||||||||||||
Net loss | — | — | — | — | — | — | (23,729 | ) | (23,729 | ) | ||||||||||||||||||||
Adjustment to opening retained earnings due to adoption of ASC 606 | — | — | — | — | — | — | 713 | 713 | ||||||||||||||||||||||
Exercises of vested stock options | — | — | 1,190,387 | 1 | 6,677 | — | — | 6,678 | ||||||||||||||||||||||
Vesting of early exercised stock options | — | — | — | 21 | — | — | 21 | |||||||||||||||||||||||
Vesting of restricted stock units | 491,501 | — | 52,716 | — | — | — | — | — | ||||||||||||||||||||||
Value of equity awards withheld for tax liability | (8,352 | ) | — | (4,380 | ) | — | (371 | ) | — | — | (371 | ) | ||||||||||||||||||
Conversion of shares of Class B common stock into shares of Class A common stock | 1,358,716 | 1 | (1,358,716 | ) | (1 | ) | — | — | — | — | ||||||||||||||||||||
Unrealized loss on marketable securities | — | — | — | — | — | (317 | ) | — | (317 | ) | ||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | 731 | — | 731 | ||||||||||||||||||||||
Stock-based compensation | — | — | — | — | 18,968 | — | — | 18,968 | ||||||||||||||||||||||
Balance as of March 31, 2018 | 71,748,415 | $ | 71 | 23,943,253 | $ | 24 | $ | 633,460 | $ | 2,439 | $ | (273,454 | ) | $ | 362,540 | |||||||||||||||
Net loss | — | — | — | — | — | — | (24,006 | ) | (24,006 | ) | ||||||||||||||||||||
Exercises of vested stock options | — | — | 960,414 | 1 | 7,036 | — | — | 7,037 | ||||||||||||||||||||||
Vesting of early exercised stock options | — | — | — | — | 4 | — | — | 4 | ||||||||||||||||||||||
Vesting of restricted stock units | 457,495 | — | 40,070 | — | — | — | — | — | ||||||||||||||||||||||
Value of equity awards withheld for tax liability | (5,860 | ) | — | (5,888 | ) | — | (539 | ) | — | — | (539 | ) | ||||||||||||||||||
Conversion of shares of Class B common stock into shares of Class A common stock | 4,109,726 | 4 | (4,109,726 | ) | (4 | ) | — | — | — | — | ||||||||||||||||||||
Shares issued under ESPP | 201,581 | — | — | — | 4,474 | — | — | 4,474 | ||||||||||||||||||||||
Issuance of debt conversion option | — | — | — | — | 119,435 | — | — | 119,435 | ||||||||||||||||||||||
Debt conversion option issuance costs | — | — | — | — | (2,819 | ) | — | — | (2,819 | ) | ||||||||||||||||||||
Capped call option issuance costs | — | — | — | — | (58,465 | ) | — | — | (58,465 | ) | ||||||||||||||||||||
Unrealized loss on marketable securities | — | — | — | — | — | 152 | — | 152 | ||||||||||||||||||||||
Foreign currency translation | — | — | — | — | — | (629 | ) | — | (629 | ) | ||||||||||||||||||||
Stock-based compensation | — | — | — | — | 22,487 | — | 22,487 | |||||||||||||||||||||||
Balance as of June 30, 2018 | 76,511,357 | $ | 75 | 20,828,123 | $ | 21 | $ | 725,073 | $ | 1,962 | $ | (297,460 | ) | $ | 429,671 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||
Six Months Ended June 30, | 2020 | 2019 | ||||||||||||||||||||||||||
2019 | 2018 | |||||||||||||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | CASH FLOWS FROM OPERATING ACTIVITIES: | (In thousands) | ||||||||||||||||||||||||||
Net loss | $ | (129,082 | ) | $ | (47,735 | ) | Net loss | $ | (94,791) | $ | (36,503) | |||||||||||||||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||||||||||||||||||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||||||||||||||||||
Depreciation and amortization | 49,610 | 11,392 | Depreciation and amortization | 32,239 | 21,248 | |||||||||||||||||||||||
Right-of-use asset amortization | 10,707 | — | ||||||||||||||||||||||||||
Net amortization of investment premium and discount | (2,948 | ) | (237 | ) | ||||||||||||||||||||||||
Non-cash reduction to the right-of-use asset | Non-cash reduction to the right-of-use asset | 8,023 | 4,854 | |||||||||||||||||||||||||
Amortization of debt discount and issuance costs | 11,682 | 2,695 | Amortization of debt discount and issuance costs | 6,178 | 5,841 | |||||||||||||||||||||||
Stock-based compensation | 129,064 | 38,546 | Stock-based compensation | 69,025 | 58,324 | |||||||||||||||||||||||
Amortization of deferred commissions | 1,585 | 478 | ||||||||||||||||||||||||||
Provision for doubtful accounts | 697 | 1,515 | ||||||||||||||||||||||||||
Tax benefit related to release of valuation allowance | (53,502 | ) | — | Tax benefit related to release of valuation allowance | (162) | (51,644) | ||||||||||||||||||||||
Write-off of long lived assets | 769 | 515 | ||||||||||||||||||||||||||
Other tax benefit realized in the period | (692 | ) | — | |||||||||||||||||||||||||
Allowance for credit losses | Allowance for credit losses | 4,170 | 11 | |||||||||||||||||||||||||
Value of donated common stock | Value of donated common stock | 2,701 | — | |||||||||||||||||||||||||
Other adjustments | Other adjustments | 4,352 | (444) | |||||||||||||||||||||||||
Changes in operating assets and liabilities: | Changes in operating assets and liabilities: | |||||||||||||||||||||||||||
Accounts receivable | (22,523 | ) | (26,048 | ) | Accounts receivable | (23,123) | (206) | |||||||||||||||||||||
Prepaid expenses and other current assets | (15,688 | ) | (2,847 | ) | Prepaid expenses and other current assets | (8,130) | (9,479) | |||||||||||||||||||||
Other long-term assets | (5,969 | ) | (1,908 | ) | Other long-term assets | (5,759) | (2,959) | |||||||||||||||||||||
Accounts payable | 8,306 | 12,566 | Accounts payable | (20,803) | 1,161 | |||||||||||||||||||||||
Accrued expenses and other current liabilities | 13,976 | 28,040 | Accrued expenses and other current liabilities | 44,840 | 4,348 | |||||||||||||||||||||||
Deferred revenue and customer deposits | 1,927 | 3,300 | Deferred revenue and customer deposits | 589 | 377 | |||||||||||||||||||||||
Operating right of use liability | (9,367 | ) | — | Operating right of use liability | (7,008) | (1,784) | ||||||||||||||||||||||
Long-term liabilities | (2,371 | ) | (1,047 | ) | Long-term liabilities | 3,194 | (2,258) | |||||||||||||||||||||
Net cash (used in) provided by operating activities | (13,819 | ) | 19,225 | |||||||||||||||||||||||||
Net cash provided by (used in) operating activities | Net cash provided by (used in) operating activities | 15,535 | (9,113) | |||||||||||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||||||||||
Acquisitions, net of cash acquired | 146,957 | — | ||||||||||||||||||||||||||
Acquisitions, net of cash acquired, and other related payments | Acquisitions, net of cash acquired, and other related payments | (2,377) | 156,783 | |||||||||||||||||||||||||
Purchases of marketable securities and other investments | (1,377,072 | ) | (184,364 | ) | Purchases of marketable securities and other investments | (228,025) | (419,498) | |||||||||||||||||||||
Proceeds from sales and maturities of marketable securities | 286,653 | 58,520 | Proceeds from sales and maturities of marketable securities | 316,992 | 140,518 | |||||||||||||||||||||||
Capitalized software development costs | (10,520 | ) | (9,958 | ) | Capitalized software development costs | (8,626) | (5,351) | |||||||||||||||||||||
Purchases of long-lived assets | (7,882 | ) | (2,315 | ) | Purchases of long-lived assets | (6,319) | (2,653) | |||||||||||||||||||||
Net cash used in investing activities | (961,864 | ) | (138,117 | ) | ||||||||||||||||||||||||
Net cash provided by (used in) investing activities | Net cash provided by (used in) investing activities | 71,645 | (130,201) | |||||||||||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||||||||||
Proceeds from a public offering, net of underwriting discount | 980,000 | — | ||||||||||||||||||||||||||
Payments of costs related to the public offering | (347 | ) | — | |||||||||||||||||||||||||
Proceeds from issuance of convertible senior notes | — | 550,000 | ||||||||||||||||||||||||||
Payment of debt issuance costs | — | (12,513 | ) | |||||||||||||||||||||||||
Purchase of capped call | — | (58,465 | ) | |||||||||||||||||||||||||
Principal payments on notes payable | (997 | ) | — | |||||||||||||||||||||||||
Principal payments on financing leases | (2,463 | ) | — | |||||||||||||||||||||||||
Principal payments on finance leases and notes payable | Principal payments on finance leases and notes payable | (1,954) | (1,455) | |||||||||||||||||||||||||
Proceeds from exercises of stock options | 25,255 | 13,715 | Proceeds from exercises of stock options | 8,231 | 15,328 | |||||||||||||||||||||||
Proceeds from shares issued under ESPP | 8,254 | 4,474 | ||||||||||||||||||||||||||
Value of equity awards withheld for tax liabilities | (2,580 | ) | (910 | ) | Value of equity awards withheld for tax liabilities | (1,674) | (1,062) | |||||||||||||||||||||
Net cash provided by financing activities | 1,007,122 | 496,301 | Net cash provided by financing activities | 4,603 | 12,811 | |||||||||||||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | 818 | ||||||||||||||||||||||||||
NET INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 31,439 | 378,227 | ||||||||||||||||||||||||||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 91,783 | (126,503) | |||||||||||||||||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 505,334 | 120,788 | CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 253,735 | 505,334 | |||||||||||||||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period | $ | 536,773 | $ | 499,015 | CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period | $ | 345,518 | $ | 378,831 | |||||||||||||||||||
Cash paid for income taxes, net | $ | 48 | $ | 321 | Cash paid for income taxes, net | $ | 257 | $ | (34) | |||||||||||||||||||
Cash paid on finance leases | $ | 337 | $ | — | ||||||||||||||||||||||||
Cash paid for interest | Cash paid for interest | $ | 198 | $ | 148 | |||||||||||||||||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES: | NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||||||||||||||||||||||||||
Purchases of property, equipment and intangible assets, accrued but not paid | $ | 1,831 | $ | 572 | Purchases of property, equipment and intangible assets, accrued but not paid | $ | 5,510 | $ | 1,821 | |||||||||||||||||||
Purchases of property and equipment through finance leases | $ | 13,616 | $ | — | Purchases of property and equipment through finance leases | $ | — | $ | 13,616 | |||||||||||||||||||
Acquisition holdback | $ | 4,230 | $ | — | ||||||||||||||||||||||||
Acquisition - value of common stock issued, stock awards assumed and measurement period adjustments | $ | 2,843,392 | $ | — | ||||||||||||||||||||||||
Value of common stock issued and stock awards assumed in acquisition | Value of common stock issued and stock awards assumed in acquisition | $ | — | $ | 2,850,518 | |||||||||||||||||||||||
Stock-based compensation capitalized in software development costs | $ | 3,244 | $ | 2,909 | Stock-based compensation capitalized in software development costs | $ | 3,418 | $ | 1,623 | |||||||||||||||||||
Debt offering costs, accrued but not paid | $ | — | $ | 467 | ||||||||||||||||||||||||
Costs related to public offerings, accrued but not paid | $ | 606 | $ | — |
Amortized Cost or Carrying Value | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value Hierarchy as of March 31, 2020 | Aggregate Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets: | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money market funds | $ | 275,948 | $ | — | $ | — | $ | 275,948 | $ | — | $ | — | $ | 275,948 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total included in cash and cash equivalents | 275,948 | — | — | 275,948 | — | — | 275,948 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | 193,234 | 1,927 | — | 195,161 | — | — | 195,161 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities and commercial paper | 1,311,047 | 2,556 | (10,895) | 11,000 | 1,291,708 | — | 1,302,708 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total marketable securities | 1,504,281 | 4,483 | (10,895) | 206,161 | 1,291,708 | — | 1,497,869 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Strategic investments | 5,750 | 1,944 | — | — | — | 7,694 | 7,694 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total financial assets | $ | 1,785,979 | $ | 6,427 | $ | (10,895) | $ | 482,109 | $ | 1,291,708 | $ | 7,694 | $ | 1,781,511 |
Amortized Cost or Carrying Value | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value Hierarchy as of December 31, 2019 | Aggregate Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets: | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money market funds | $ | 153,252 | $ | — | $ | — | $ | 153,252 | $ | — | $ | — | $ | 153,252 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reverse repurchase agreements | 35,800 | — | — | — | 35,800 | — | 35,800 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total included in cash and cash equivalents | 189,052 | — | — | 153,252 | 35,800 | — | 189,052 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | 215,847 | 241 | (3) | 216,085 | — | — | 216,085 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities and commercial paper | 1,378,487 | 4,516 | (55) | 5,000 | 1,377,948 | — | 1,382,948 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total marketable securities | 1,594,334 | 4,757 | (58) | 221,085 | 1,377,948 | — | 1,599,033 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Strategic investments | 5,500 | — | — | — | — | 5,500 | 5,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total financial assets | $ | 1,788,886 | $ | 4,757 | $ | (58) | $ | 374,337 | $ | 1,413,748 | $ | 5,500 | $ | 1,793,585 |
Amortized Cost or Carrying Value | Gross Unrealized Gains | Gross Unrealized Losses Less Than 12 Months | Gross Unrealized Losses More Than 12 Months | Fair Value Hierarchy as of June 30, 2019 | Aggregate Fair Value | |||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||||||||||
Money market funds | $ | 275,838 | $ | — | $ | — | $ | — | $ | 275,838 | $ | — | $ | — | $ | 275,838 | ||||||||||||||||
Reverse repurchase agreements | 75,000 | — | — | — | — | 75,000 | — | 75,000 | ||||||||||||||||||||||||
Commercial paper | 114,471 | — | — | — | 114,471 | 114,471 | ||||||||||||||||||||||||||
Total included in cash and cash equivalents | 465,309 | — | — | — | 275,838 | 189,471 | — | 465,309 | ||||||||||||||||||||||||
Marketable securities: | ||||||||||||||||||||||||||||||||
U.S. Treasury securities | 160,374 | 238 | (1 | ) | — | 160,611 | — | — | 160,611 | |||||||||||||||||||||||
Corporate debt securities and commercial paper | 1,183,653 | 2,427 | (309 | ) | (11 | ) | 5,000 | 1,180,760 | — | 1,185,760 | ||||||||||||||||||||||
Total marketable securities | 1,344,027 | 2,665 | (310 | ) | (11 | ) | 165,611 | 1,180,760 | — | 1,346,371 | ||||||||||||||||||||||
Strategic investment | 5,000 | — | — | — | — | — | 5,000 | 5,000 | ||||||||||||||||||||||||
Total financial assets | $ | 1,814,336 | $ | 2,665 | $ | (310 | ) | $ | (11 | ) | $ | 441,449 | $ | 1,370,231 | $ | 5,000 | $ | 1,816,680 |
Amortized Cost or Carrying Value | Gross Unrealized Gains | Gross Unrealized Losses Less Than 12 Months | Gross Unrealized Losses More Than 12 Months | Fair Value Hierarchy as of December 31, 2018 | Aggregate Fair Value | |||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||||||||||
Financial Assets: | ||||||||||||||||||||||||||||||||
Cash and cash equivalents: | ||||||||||||||||||||||||||||||||
Money market funds | $ | 420,234 | $ | — | $ | — | $ | — | $ | 420,234 | $ | — | $ | — | $ | 420,234 | ||||||||||||||||
Reverse repurchase agreements | 35,000 | — | — | — | — | 35,000 | — | 35,000 | ||||||||||||||||||||||||
Commercial paper | 9,983 | — | — | — | — | 9,983 | — | 9,983 | ||||||||||||||||||||||||
Total included in cash and cash equivalents | 465,217 | — | — | — | 420,234 | 44,983 | — | 465,217 | ||||||||||||||||||||||||
Marketable securities: | ||||||||||||||||||||||||||||||||
U.S. Treasury securities | 59,785 | — | (7 | ) | (9 | ) | 59,769 | — | — | 59,769 | ||||||||||||||||||||||
Corporate debt securities and commercial paper | 201,683 | 23 | (123 | ) | (224 | ) | — | 201,359 | — | 201,359 | ||||||||||||||||||||||
Total marketable securities | 261,468 | 23 | (130 | ) | (233 | ) | 59,769 | 201,359 | — | 261,128 | ||||||||||||||||||||||
Total financial assets | $ | 726,685 | $ | 23 | $ | (130 | ) | $ | (233 | ) | $ | 480,003 | $ | 246,342 | $ | — | $ | 726,345 |
As of June 30, 2019 | As of December 31, 2018 | ||||||||||||||
Amortized Cost | Aggregate Fair Value | Amortized Cost | Aggregate Fair Value | ||||||||||||
Financial Assets: | |||||||||||||||
Less than one year | $ | 687,642 | $ | 688,388 | $ | 261,468 | $ | 261,128 | |||||||
One to two years | 656,385 | 657,983 | — | — | |||||||||||
Total | $ | 1,344,027 | $ | 1,346,371 | $ | 261,468 | $ | 261,128 |
As of March 31, 2020 | As of December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Aggregate Fair Value | Amortized Cost | Aggregate Fair Value | |||||||||||||||||||||||||||||||||||||||||
Financial Assets: | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||
Less than one year | $ | 787,710 | $ | 788,246 | $ | 859,996 | $ | 861,181 | ||||||||||||||||||||||||||||||||||||
One to three years | 716,571 | 709,623 | 734,338 | 737,852 | ||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,504,281 | $ | 1,497,869 | $ | 1,594,334 | $ | 1,599,033 |
As of | As of | |||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Capitalized internal-use software development costs | $ | 110,918 | $ | 100,155 | ||||||||||||||||||||||
Data center equipment (1) | 22,018 | 22,009 | ||||||||||||||||||||||||
Leasehold improvements | 63,961 | 55,886 | ||||||||||||||||||||||||
Office equipment | 27,001 | 25,083 | ||||||||||||||||||||||||
Furniture and fixtures (1) | 10,253 | 10,095 | ||||||||||||||||||||||||
Software | 9,676 | 9,176 | ||||||||||||||||||||||||
Total property and equipment | 243,827 | 222,404 | ||||||||||||||||||||||||
Less: accumulated depreciation and amortization | (92,883) | (81,148) | ||||||||||||||||||||||||
Total property and equipment, net | $ | 150,944 | $ | 141,256 | ||||||||||||||||||||||
____________________ | ||||||||||||||||||||||||||
(1) Data center equipment and furniture and fixtures contain assets under finance leases. See Note 5 for further detail. |
As of June 30, 2019 | As of December 31, 2018 | |||||||
Capitalized internal-use software development costs | $ | 85,145 | $ | 72,647 | ||||
Data center equipment (1) | 14,795 | — | ||||||
Leasehold improvements | 33,305 | 15,293 | ||||||
Office equipment | 20,715 | 13,563 | ||||||
Furniture and fixtures (1) | 7,273 | 4,918 | ||||||
Software | 6,073 | 1,849 | ||||||
Total property and equipment | 167,306 | 108,270 | ||||||
Less: accumulated depreciation and amortization | (60,826 | ) | (44,736 | ) | ||||
Total property and equipment, net | $ | 106,480 | $ | 63,534 |
Three Months Ended June 30, 2019 | Six Months Ended June 30, 2019 | |||||||
Operating lease cost | $ | 8,273 | $ | 15,446 | ||||
Finance lease cost: | ||||||||
Amortization of assets | 1,526 | 2,689 | ||||||
Interest on lease liabilities | 189 | 337 | ||||||
Short-term lease cost | 1,905 | 3,340 | ||||||
Variable lease cost | 1,080 | 1,567 | ||||||
Total net lease cost | $ | 12,973 | $ | 23,379 |
Three Months Ended March 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Operating lease cost | $ | 10,424 | $ | 7,173 | ||||||||||||||||
Finance lease cost: | ||||||||||||||||||||
Amortization of assets | 1,904 | 1,163 | ||||||||||||||||||
Interest on lease liabilities | 198 | 148 | ||||||||||||||||||
Short-term lease cost | 1,412 | 1,435 | ||||||||||||||||||
Variable lease cost | 1,296 | 487 | ||||||||||||||||||
Total net lease cost | $ | 15,234 | $ | 10,406 |
As of | As of | |||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||||
Leases | Classification | 2020 | 2019 | |||||||||||||||||||||||
Assets: | (In thousands) | |||||||||||||||||||||||||
Operating lease assets | Operating right-of-use asset, net of accumulated amortization (1) | $ | 159,439 | $ | 156,741 | |||||||||||||||||||||
Finance lease assets | Property and equipment, net of accumulated depreciation (2) | 12,866 | 14,770 | |||||||||||||||||||||||
Total leased assets | $ | 172,305 | $ | 171,511 | ||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||
Current | ||||||||||||||||||||||||||
Operating | Operating lease liability, current | $ | 29,949 | $ | 27,156 | |||||||||||||||||||||
Finance | Financing lease liability, current | 6,539 | 6,924 | |||||||||||||||||||||||
Noncurrent | ||||||||||||||||||||||||||
Operating | Operating lease liability, noncurrent | 140,120 | 139,200 | |||||||||||||||||||||||
Finance | Finance lease liability, noncurrent | 7,250 | 8,746 | |||||||||||||||||||||||
Total lease liabilities | $ | 183,858 | $ | 182,026 |
Leases | Classification | As of June 30, 2019 | ||||
Assets: | ||||||
Operating lease assets | Operating right-of-use asset (a) | $ | 151,946 | |||
Finance lease assets | Property and equipment, net of accumulated depreciation (b) | 12,970 | ||||
Total leased assets | $ | 164,916 | ||||
Liabilities: | ||||||
Current | ||||||
Operating | Operating lease liability, current | $ | 21,858 | |||
Finance | Financing lease liability, current | 5,920 | ||||
Noncurrent | ||||||
Operating | Operating lease liability, noncurrent | 138,819 | ||||
Finance | Finance lease liability, noncurrent | 7,752 | ||||
Total lease liabilities | $ | 174,349 |
Six Months Ended June 30, 2019 | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ | 12,145 | ||
Operating cash flows from finance leases | $ | 337 | ||
Financing cash flows from finance leases | $ | 2,463 | ||
Weighted average remaining lease term (in years): | ||||
Operating leases | 6.8 | |||
Finance leases | 3.1 | |||
Weighted average discount rate: | ||||
Operating leases | 5.8 | % | ||
Finance leases | 5.2 | % |
Three Months Ended March 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | (In thousands) | |||||||||||||||||||
Operating cash flows from operating leases | $ | 9,953 | $ | 3,994 | ||||||||||||||||
Operating cash flows from finance leases (interest) | $ | 198 | $ | 148 | ||||||||||||||||
Financing cash flows from finance leases | $ | 1,881 | $ | 961 | ||||||||||||||||
Weighted average remaining lease term (in years): | ||||||||||||||||||||
Operating leases | 5.8 | 7.1 | ||||||||||||||||||
Finance leases | 2.9 | 3.3 | ||||||||||||||||||
Weighted average discount rate: | ||||||||||||||||||||
Operating leases | 5.7 | % | 5.8 | % | ||||||||||||||||
Finance leases | 5.3 | % | 5.2 | % |
As of June 30, 2019 | ||||||||
Operating Leases | Finance Leases | |||||||
2019 (remaining six months) | $ | 14,523 | $ | 3,278 | ||||
2020 | 30,523 | 6,015 | ||||||
2021 | 28,791 | 3,130 | ||||||
2022 | 28,249 | 807 | ||||||
2023 | 27,762 | 413 | ||||||
Thereafter | 68,106 | 1,316 | ||||||
Total lease payments | 197,954 | 14,959 | ||||||
Less: imputed interest | (37,277 | ) | (1,287 | ) | ||||
Total lease obligations | 160,677 | 13,672 | ||||||
Less: current obligations | (21,858 | ) | (5,920 | ) | ||||
Long-term lease obligations | $ | 138,819 | $ | 7,752 |
As of March 31, 2020 | ||||||||||||||||||||
Operating Leases | Finance Leases | |||||||||||||||||||
Year ended December 31, | (In thousands) | |||||||||||||||||||
2020 (remaining nine months) | $ | 29,148 | $ | 5,507 | ||||||||||||||||
2021 | 38,190 | 4,659 | ||||||||||||||||||
2022 | 37,145 | 2,333 | ||||||||||||||||||
2023 | 29,378 | 1,581 | ||||||||||||||||||
2024 | 25,549 | 315 | ||||||||||||||||||
Thereafter | 43,126 | 581 | ||||||||||||||||||
Total lease payments | 202,536 | 14,976 | ||||||||||||||||||
Less: imputed interest | (32,467) | (1,187) | ||||||||||||||||||
Total lease obligations | 170,069 | 13,789 | ||||||||||||||||||
Less: current obligations | (29,949) | (6,539) | ||||||||||||||||||
Long-term lease obligations | $ | 140,120 | $ | 7,250 |
As of December 31, 2018 | ||||||||
Operating Leases | Finance Leases | |||||||
2019 | $ | 24,128 | $ | 306 | ||||
2020 | 29,527 | 512 | ||||||
2021 | 30,898 | 573 | ||||||
2022 | 30,492 | 590 | ||||||
2023 | 30,122 | 608 | ||||||
Thereafter | 81,316 | 1,939 | ||||||
Total lease payments | $ | 226,483 | $ | 4,528 |
Total | ||||
Net tangible liabilities assumed | $ | (542 | ) | |
Intangible assets (1) | 7,610 | |||
Goodwill (2) | 7,343 | |||
Total purchase price | $ | 14,411 |
Total | Estimated life (in years) | |||||
Developed technology and software | $ | 6,390 | 6 | |||
Customer relationships | 1,220 | 4 | ||||
Total intangible assets acquired | $ | 7,610 |
Total | ||||
Fair value of Class A common stock transferred | $ | 2,658,898 | ||
Fair value of the pre-combination service through equity awards | 184,494 | |||
Total purchase price, as adjusted | $ | 2,843,392 |
Total | ||||
Cash and cash equivalents | $ | 156,783 | ||
Accounts receivable and other current assets | 11,636 | |||
Property and equipment, net | 38,350 | |||
Operating right of use asset | 33,742 | |||
Intangible assets | 483,000 | |||
Other assets | 1,664 | |||
Goodwill | 2,238,070 | |||
Accounts payable and other liabilities | (11,115 | ) | ||
Operating lease liability | (32,568 | ) | ||
Financing lease liability | (13,616 | ) | ||
Note payable | (5,387 | ) | ||
Deferred tax liability | (57,167 | ) | ||
Total purchase price | $ | 2,843,392 |
Total | Estimated life (in years) | |||||
Developed technology and software | $ | 294,000 | 7 | |||
Customer relationships | 169,000 | 7 | ||||
Trade names | 20,000 | 5 | ||||
Total intangible assets acquired | $ | 483,000 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenue | $ | 275,039 | $ | 183,429 | $ | 521,924 | $ | 345,114 | ||||||||
Net loss attributable to common stockholders | $ | (82,880 | ) | $ | (53,858 | ) | $ | (155,840 | ) | $ | (73,339 | ) |
Total | ||||||||
(In thousands) | ||||||||
Balance as of December 31, 2019 | $ | 2,296,784 | ||||||
Measurement period adjustments | (5,147) | |||||||
Balance as of March 31, 2020 | $ | 2,291,637 |
Total | ||||
Balance as of December 31, 2018 | $ | 38,165 | ||
Goodwill additions related to 2019 acquisitions | 2,246,398 | |||
Measurement period adjustments | (985 | ) | ||
Balance as of June 30, 2019 | $ | 2,283,578 |
As of March 31, 2020 | ||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
Amortizable intangible assets: | (In thousands) | |||||||||||||||||||||||||||||||
Developed technology | $ | 334,599 | $ | (67,259) | $ | 267,340 | ||||||||||||||||||||||||||
Customer relationships | 185,594 | (33,296) | 152,298 | |||||||||||||||||||||||||||||
Supplier relationships | 4,356 | (2,006) | 2,350 | |||||||||||||||||||||||||||||
Trade names | 20,060 | (4,727) | 15,333 | |||||||||||||||||||||||||||||
Patent | 2,905 | (288) | 2,617 | |||||||||||||||||||||||||||||
Total amortizable intangible assets | 547,514 | (107,576) | 439,938 | |||||||||||||||||||||||||||||
Non-amortizable intangible assets: | ||||||||||||||||||||||||||||||||
Telecommunication licenses | 4,920 | — | 4,920 | |||||||||||||||||||||||||||||
Domain names | 32 | — | 32 | |||||||||||||||||||||||||||||
Trademarks and other | 263 | — | 263 | |||||||||||||||||||||||||||||
Total | $ | 552,729 | $ | (107,576) | $ | 445,153 |
As of June 30, 2019 | ||||||||||||
Gross | Accumulated Amortization | Net | ||||||||||
Amortizable intangible assets: | ||||||||||||
Developed technology | $ | 328,598 | $ | (30,581 | ) | $ | 298,017 | |||||
Customer relationships | 178,374 | (13,280 | ) | 165,094 | ||||||||
Supplier relationships | 2,696 | (1,240 | ) | 1,456 | ||||||||
Trade names | 20,060 | (1,727 | ) | 18,333 | ||||||||
Patent | 2,439 | (224 | ) | 2,215 | ||||||||
Total amortizable intangible assets | 532,167 | (47,052 | ) | 485,115 | ||||||||
Non-amortizable intangible assets: | ||||||||||||
Domain names | 32 | — | 32 | |||||||||
Trademarks | 263 | — | 263 | |||||||||
Total | $ | 532,462 | $ | (47,052 | ) | $ | 485,410 |
As of December 31, 2018 | ||||||||||||
Gross | Accumulated Amortization | Net | ||||||||||
Amortizable intangible assets: | ||||||||||||
Developed technology | $ | 28,209 | $ | (10,497 | ) | $ | 17,712 | |||||
Customer relationships | 8,153 | (2,411 | ) | 5,742 | ||||||||
Supplier relationships | 2,696 | (973 | ) | 1,723 | ||||||||
Trade name | 60 | (60 | ) | — | ||||||||
Patent | 2,264 | (178 | ) | 2,086 | ||||||||
Total amortizable intangible assets | 41,382 | (14,119 | ) | 27,263 | ||||||||
Non-amortizable intangible assets: | ||||||||||||
Domain names | 32 | — | 32 | |||||||||
Trademarks | 263 | — | 263 | |||||||||
Total | $ | 41,677 | $ | (14,119 | ) | $ | 27,558 |
As of December 31, 2019 | ||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
Amortizable intangible assets: | (In thousands) | |||||||||||||||||||||||||||||||
Developed technology | $ | 333,980 | $ | (55,390) | $ | 278,590 | ||||||||||||||||||||||||||
Customer relationships | 182,339 | (26,347) | 155,992 | |||||||||||||||||||||||||||||
Supplier relationships | 4,356 | (1,532) | 2,824 | |||||||||||||||||||||||||||||
Trade name | 20,060 | (3,727) | 16,333 | |||||||||||||||||||||||||||||
Patent | 2,707 | (262) | 2,445 | |||||||||||||||||||||||||||||
Total amortizable intangible assets | 543,442 | (87,258) | 456,184 | |||||||||||||||||||||||||||||
Non-amortizable intangible assets: | ||||||||||||||||||||||||||||||||
Telecommunication licenses | 4,370 | — | 4,370 | |||||||||||||||||||||||||||||
Domain names | 32 | — | 32 | |||||||||||||||||||||||||||||
Trademarks and other | 263 | — | 263 | |||||||||||||||||||||||||||||
Total | $ | 548,107 | $ | (87,258) | $ | 460,849 |
As of | ||||||||
March 31, | ||||||||
2020 | ||||||||
Year Ended December 31, | (In thousands) | |||||||
2020 (remaining nine months) | $ | 60,796 | ||||||
2021 | 80,480 | |||||||
2022 | 77,865 | |||||||
2023 | 74,583 | |||||||
2024 | 69,304 | |||||||
Thereafter | 76,910 | |||||||
Total | $ | 439,938 |
As of June 30, 2019 | ||||
2019 (remaining six months) | $ | 39,878 | ||
2020 | 77,882 | |||
2021 | 76,371 | |||
2022 | 74,976 | |||
2023 | 72,786 | |||
Thereafter | 143,222 | |||
Total | $ | 485,115 |
As of June 30, 2019 | As of December 31, 2018 | |||||||
Accrued payroll and related | $ | 15,717 | $ | 9,886 | ||||
Accrued bonus and commission | 8,974 | 8,564 | ||||||
Accrued cost of revenue | 34,523 | 29,901 | ||||||
Sales and other taxes payable | 27,499 | 23,631 | ||||||
ESPP contributions | 4,004 | 2,672 | ||||||
Deferred rent | — | 1,418 | ||||||
VAT liability | 2,528 | 2,217 | ||||||
Acquisition holdback | 2,240 | — | ||||||
Accrued other expense | 22,140 | 18,054 | ||||||
Total accrued expenses and other current liabilities | $ | 117,625 | $ | 96,343 |
As of | As of | |||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Accrued payroll and related | $ | 30,198 | $ | 20,462 | ||||||||||||||||
Accrued bonus and commission | 11,052 | 12,898 | ||||||||||||||||||
Accrued cost of revenue | 71,479 | 47,563 | ||||||||||||||||||
Sales and other taxes payable | 29,758 | 28,592 | ||||||||||||||||||
ESPP contributions | 11,521 | 4,023 | ||||||||||||||||||
VAT and other taxes | 4,152 | 4,838 | ||||||||||||||||||
Acquisition holdback | 4,520 | 6,520 | ||||||||||||||||||
Accrued other expense | 32,713 | 22,785 | ||||||||||||||||||
Total accrued expenses and other current liabilities | $ | 195,393 | $ | 147,681 |
As of | As of | |||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Deferred tax liability | $ | 8,362 | $ | 7,535 | ||||||||||||||||
Acquisition holdback | 3,750 | 3,750 | ||||||||||||||||||
Accrued other expenses | 8,854 | 6,462 | ||||||||||||||||||
Total other long-term liabilities | $ | 20,966 | $ | 17,747 |
As of June 30, 2019 | As of December 31, 2018 | |||||||
Deferred rent | $ | — | $ | 7,569 | ||||
Deferred tax liability | 9,077 | 5,181 | ||||||
Acquisition holdback | 4,280 | 2,290 | ||||||
Capital lease obligation | — | 2,170 | ||||||
Accrued other expense | 2,122 | 959 | ||||||
Total other long-term liabilities | $ | 15,479 | $ | 18,169 |
As of | As of | |||||||||||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||||
As of June 30, 2019 | As of December 31, 2018 | (In thousands) | ||||||||||||||||||||||||||
Principal | $ | 550,000 | $ | 550,000 | Principal | $ | 549,998 | $ | 549,999 | |||||||||||||||||||
Unamortized discount | (95,719 | ) | (106,484 | ) | Unamortized discount | (78,953) | (84,647) | |||||||||||||||||||||
Unamortized issuance costs | (8,104 | ) | (9,020 | ) | Unamortized issuance costs | (6,678) | (7,162) | |||||||||||||||||||||
Net carrying amount | $ | 446,177 | $ | 434,496 | Net carrying amount | $ | 464,367 | $ | 458,190 |
As of June 30, 2019 | As of December 31, 2018 | |||||||
Proceeds allocated to the conversion options (debt discount) | $ | 119,435 | $ | 119,435 | ||||
Issuance costs | (2,819 | ) | (2,819 | ) | ||||
Net carrying amount | $ | 116,616 | $ | 116,616 |
As of | As of | |||||||||||||||||||
March 31, | December 31, | |||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Proceeds allocated to the conversion options (debt discount) | $ | 119,434 | $ | 119,435 | ||||||||||||||||
Issuance costs | (2,819) | (2,819) | ||||||||||||||||||
Net carrying amount | $ | 116,615 | $ | 116,616 | ||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Contractual interest expense | $ | 344 | $ | 344 | ||||||||||||||||
Amortization of debt issuance costs | 484 | 458 | ||||||||||||||||||
Amortization of debt discount | 5,694 | 5,383 | ||||||||||||||||||
Total interest expense related to the Notes | $ | 6,522 | $ | 6,185 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Contractual interest expense | $ | 344 | $ | 164 | $ | 688 | $ | 164 | ||||||||
Amortization of debt issuance costs | 458 | 211 | 916 | 211 | ||||||||||||
Amortization of debt discount | 5,383 | 2,484 | 10,766 | 2,484 | ||||||||||||
Total interest expense related to the Notes | $ | 6,185 | $ | 2,859 | $ | 12,370 | $ | 2,859 |
Year Ending December 31: | Principal | Interest | ||||||
2019 (remaining six months) | $ | 1,036 | $ | 129 | ||||
2020 | 2,176 | 153 | ||||||
2021 | 1,144 | 22 | ||||||
Total payments related to the note | $ | 4,356 | $ | 304 |
Three Months Ended March 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Balance, beginning of period | $ | 6,287 | $ | 4,945 | ||||||||||||||||
Additions | 4,261 | (245) | ||||||||||||||||||
Write-offs | (1,463) | (419) | ||||||||||||||||||
Balance, end of period | $ | 9,085 | $ | 4,281 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Balance, beginning of period | $ | 4,281 | $ | 1,404 | $ | 4,945 | $ | 1,033 | ||||||||
Additions | 685 | 1,140 | 381 | 1,515 | ||||||||||||
Assumed in acquisition | — | — | 59 | — | ||||||||||||
Write-offs | (193 | ) | (8 | ) | (612 | ) | (12 | ) | ||||||||
Balance, end of period | $ | 4,773 | $ | 2,536 | $ | 4,773 | $ | 2,536 |
Percentage of revenue | 2 | % | 2 | % |
Three Months Ended March 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Balance, beginning of period | $ | 6,784 | $ | 3,015 | ||||||||||||||||
Additions | 8,174 | 2,681 | ||||||||||||||||||
Deductions against reserve | (5,271) | (2,865) | ||||||||||||||||||
Balance, end of period | $ | 9,687 | $ | 2,831 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Balance, beginning of period | $ | 2,831 | $ | 1,702 | $ | 3,015 | $ | 1,761 | ||||||||
Additions | 2,862 | 1,544 | 5,266 | 2,651 | ||||||||||||
Assumed in acquisition | — | — | 277 | — | ||||||||||||
Deductions against reserve | (2,617 | ) | (621 | ) | (5,482 | ) | (1,787 | ) | ||||||||
Balance, end of period | $ | 3,076 | $ | 2,625 | $ | 3,076 | $ | 2,625 |
Three Months Ended March 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Revenue by geographic area: | (In thousands) | |||||||||||||||||||
United States | $ | 261,813 | $ | 166,553 | ||||||||||||||||
International | 103,055 | 66,586 | ||||||||||||||||||
Total | $ | 364,868 | $ | 233,139 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Revenue by geographic area: | ||||||||||||||||
United States | $ | 194,998 | $ | 111,244 | $ | 361,551 | $ | 209,879 | ||||||||
International | 80,041 | 36,510 | 146,627 | 66,991 | ||||||||||||
Total | $ | 275,039 | $ | 147,754 | $ | 508,178 | $ | 276,870 |
Percentage of revenue by geographic area: | ||||||||||||
United States | 71 | % | 75 | % | 71 | % | 76 | % | ||||
International | 29 | % | 25 | % | 29 | % | 24 | % |
Percentage of revenue by geographic area: | ||||||||||||||
United States | 72 | % | 71 | % | ||||||||||
International | 28 | % | 29 | % |
As of | As of | |||||||||||||
March 31, | December 31, | |||||||||||||
2020 | 2019 | |||||||||||||
Stock options issued and outstanding | 7,492,970 | 7,705,848 | ||||||||||||
Nonvested restricted stock units issued and outstanding | 8,039,823 | 8,490,517 | ||||||||||||
Class A common stock reserved for Twilio.org | 773,571 | 795,673 | ||||||||||||
Stock-based awards available for grant under 2016 Plan | 20,998,004 | 14,957,734 | ||||||||||||
Stock-based awards available for grant under 2016 ESPP | 5,233,081 | 3,848,953 | ||||||||||||
Class A common stock reserved for the convertible senior notes | 10,472,165 | 10,472,165 | ||||||||||||
Total | 53,009,614 | 46,270,890 |
As of June 30, 2019 | As of December 31, 2018 | |||||
Stock options issued and outstanding | 9,125,950 | 7,978,369 | ||||
Nonvested restricted stock units issued and outstanding | 8,926,529 | 8,262,902 | ||||
Class A common stock reserved for Twilio.org | 776,334 | 572,676 | ||||
Stock-based awards available for grant under 2016 Plan | 15,727,925 | 9,313,354 | ||||
Stock-based awards available for grant under 2016 ESPP | 3,984,686 | 3,092,779 | ||||
Class A common stock reserved for the convertible senior notes | 10,472,165 | 10,472,165 | ||||
Total | 49,013,589 | 39,692,245 |
Number of options outstanding | Weighted- average exercise price (Per share) | Weighted- average remaining contractual term (In years) | Aggregate intrinsic value (In thousands) | |||||||||||||||||||||||
Outstanding options as of December 31, 2019 | 7,150,848 | $ | 28.79 | 6.47 | $ | 511,971 | ||||||||||||||||||||
Granted | 534,412 | 121.20 | ||||||||||||||||||||||||
Exercised | (669,030) | 12.30 | ||||||||||||||||||||||||
Forfeited and canceled | (78,260) | 52.44 | ||||||||||||||||||||||||
Outstanding options as of March 31, 2020 | 6,937,970 | $ | 37.23 | 7.16 | $ | 400,612 | ||||||||||||||||||||
Options vested and exercisable as of March 31, 2020 | 4,545,317 | $ | 18.07 | 6.39 | $ | 329,352 |
Number of options outstanding | Weighted- average exercise price (per share) | Weighted- average remaining contractual term (in years) | Aggregate intrinsic value (in thousands) | ||||||||||
Outstanding options as of December 31, 2018 | 7,423,369 | $ | 16.07 | 6.80 | $ | 534,640 | |||||||
Granted | 905,180 | 118.41 | |||||||||||
Assumed in acquisition | 2,978,555 | 14.91 | |||||||||||
Exercised | (2,590,384 | ) | 9.75 | ||||||||||
Forfeited and canceled | (145,770 | ) | 26.12 | ||||||||||
Outstanding options as of June 30, 2019 | 8,570,950 | $ | 28.21 | 7.05 | $ | 926,868 | |||||||
Options vested and exercisable as of June 30, 2019 | 4,783,817 | $ | 11.50 | 6.03 | $ | 597,243 |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
Aggregate intrinsic value of stock options exercised (1) | $ | 68,359 | $ | 187,016 | ||||||||||||||||||||||
Total estimated grant date fair value of options vested | $ | 23,335 | $ | 55,310 | ||||||||||||||||||||||
Weighted-average grant date fair value per share of options granted | $ | 60.47 | $ | 58.00 | ||||||||||||||||||||||
____________________ | ||||||||||||||||||||||||||
(1) Aggregate intrinsic value represents the difference between the fair value of the Company’s Class A common stock as reported on the New York Stock Exchange and the exercise price of outstanding “in-the-money” options. |
Number of options outstanding | Weighted- average exercise price (per share) | Weighted- average remaining contractual term (in years) | Aggregate intrinsic value (in thousands) | ||||||||||
Outstanding options as of December 31, 2018 | 555,000 | $ | 31.72 | 6.00 | $ | — | |||||||
Granted | — | — | |||||||||||
Exercised | — | — | |||||||||||
Forfeited and canceled | — | — | |||||||||||
Outstanding options as of June 30, 2019 | 555,000 | $ | 31.72 | 4.67 | $ | 58,070 | |||||||
Options vested and exercisable as of June 30, 2019 | 265,937 | $ | 31.72 | 4.67 | $ | 27,825 |
Number of options outstanding | Weighted- average exercise price (Per share) | Weighted- average remaining contractual term (In years) | Aggregate intrinsic value (In thousands) | |||||||||||||||||||||||
Outstanding options as of December 31, 2019 | 555,000 | $ | 31.72 | 4.16 | $ | 36,941 | ||||||||||||||||||||
Granted | — | — | ||||||||||||||||||||||||
Exercised | — | — | ||||||||||||||||||||||||
Forfeited and canceled | — | — | ||||||||||||||||||||||||
Outstanding options as of March 31, 2020 | 555,000 | $ | 31.72 | 3.91 | $ | 32,062 | ||||||||||||||||||||
Options vested and exercisable as of March 31, 2020 | 462,499 | $ | 31.72 | 3.91 | $ | 26,719 |
Number of awards outstanding | Weighted- average grant date fair value (per share) | Aggregate intrinsic value (in thousands) | |||||||||
Nonvested RSUs as of December 31, 2018 | 8,262,902 | $ | 42.70 | $ | 729,373 | ||||||
Granted | 1,886,838 | 125.14 | |||||||||
Assumed in acquisition | 561,999 | 112.88 | |||||||||
Vested | (1,385,370 | ) | 40.32 | ||||||||
Forfeited and canceled | (399,840 | ) | $ | 54.13 | |||||||
Nonvested RSUs as of June 30, 2019 | 8,926,529 | $ | 65.36 | $ | 1,217,132 |
Number of awards outstanding | Weighted- average grant date fair value (Per share) | Aggregate intrinsic value (In thousands) | ||||||||||||||||||
Nonvested RSUs as of December 31, 2019 | 8,490,517 | $ | 74.21 | $ | 830,167 | |||||||||||||||
Granted | 728,343 | 117.09 | ||||||||||||||||||
Vested | (872,870) | 62.65 | ||||||||||||||||||
Forfeited and canceled | (306,167) | $ | 75.56 | |||||||||||||||||
Nonvested RSUs as of March 31, 2020 | 8,039,823 | $ | 80.61 | $ | 713,474 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||
Employee Stock Options: | 2019 | 2018 | 2019 | 2018 | ||||
Fair value of common stock | $127.96 | $41.22 | $111.32 - $130.65 | $33.01 - $41.22 | ||||
Expected term (in years) | 6.08 | 6.08 | 0.33 - 6.08 | 6.08 | ||||
Expected volatility | 49.19% | 44.16% | 48.31% - 66.46% | 44.09% - 44.16% | ||||
Risk-free interest rate | 2.44% | 2.86% | 2.39% - 2.51% | 2.74% - 2.86% | ||||
Dividend rate | —% | —% | —% | —% |
Employee Stock Purchase Plan: | Three Months Ended June 30, | Six Months Ended June 30, | ||||||
2019 | 2018 | 2019 | 2018 | |||||
Expected term (in years) | 0.50 | 0.50 | 0.50 | 0.50 | ||||
Expected volatility | 50.34% | 39.78% | 50.34% | 39.78% | ||||
Risk-free interest rate | 2.43% | 2.09% | 2.43% | 2.09% | ||||
Dividend rate | —% | —% | —% | —% |
Three Months Ended March 31, | ||||||||||||||||||||
Employee Stock Options: | 2020 | 2019 | ||||||||||||||||||
Fair value of common stock | $117.9 - $126.7 | $111.3 - $130.7 | ||||||||||||||||||
Expected term (in years) | 6.08 | 0.33 - 6.08 | ||||||||||||||||||
Expected volatility | 51.9% | 48.3% - 66.5% | ||||||||||||||||||
Risk-free interest rate | 1.3% - 1.4% | 2.4% - 2.5% | ||||||||||||||||||
Dividend rate | —% | —% |
Asset volatility | 40% | |||||||
Equity volatility | 45% | |||||||
Discount rate | 14% | |||||||
Stock price at grant date | $ |
Three Months Ended March 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cost of revenue | $ | 1,837 | $ | 1,809 | ||||||||||||||||
Research and development | 33,209 | 25,339 | ||||||||||||||||||
Sales and marketing | 19,943 | 11,749 | ||||||||||||||||||
General and administrative | 14,036 | 19,427 | ||||||||||||||||||
Total | $ | 69,025 | $ | 58,324 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Cost of revenue | $ | 1,623 | $ | 266 | $ | 3,432 | $ | 488 | ||||||||
Research and development | 33,701 | 9,749 | 59,040 | 17,621 | ||||||||||||
Sales and marketing | 14,564 | 5,049 | 26,313 | 8,908 | ||||||||||||
General and administrative | 20,852 | 5,942 | 40,279 | 11,529 | ||||||||||||
Total | $ | 70,740 | $ | 21,006 | $ | 129,064 | $ | 38,546 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Net loss attributable to common stockholders | $ | (92,579 | ) | $ | (24,006 | ) | $ | (129,082 | ) | $ | (47,735 | ) | ||||
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 129,310,641 | 96,348,356 | 122,985,716 | 95,515,583 | ||||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.72 | ) | $ | (0.25 | ) | $ | (1.05 | ) | $ | (0.50 | ) |
Three Months Ended March 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Net loss attributable to common stockholders (in thousands) | $ | (94,791) | $ | (36,503) | ||||||||||||||||
Weighted-average shares used to compute net loss per share attributable to common stockholders, basic and diluted | 139,231,594 | 116,590,513 | ||||||||||||||||||
Net loss per share attributable to common stockholders, basic and diluted | $ | (0.68) | $ | (0.31) |
As of March 31, | ||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||
Stock options issued and outstanding | 7,492,970 | 10,045,155 | ||||||||||||||||||||||||
Nonvested restricted stock units issued and outstanding | 8,039,823 | 8,813,737 | ||||||||||||||||||||||||
Class A common stock reserved for Twilio.org | 773,571 | 776,334 | ||||||||||||||||||||||||
Class A common stock committed under 2016 ESPP | 212,028 | 113,959 | ||||||||||||||||||||||||
Conversion spread (1) | 2,747,996 | 2,873,836 | ||||||||||||||||||||||||
Unvested shares subject to repurchase | — | 1,250 | ||||||||||||||||||||||||
Total | 19,266,388 | 22,624,271 | ||||||||||||||||||||||||
____________________ | ||||||||||||||||||||||||||
(1) Since the Company expects to settle the principal amount of its outstanding convertible senior notes in cash and any excess in shares of the Company's Class A common stock, the Company uses the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share of Class A common stock when the average market price of the Company's Class A common stock for a given period exceeds the conversion price of $70.90 per share for the Notes. The conversion spread is calculated using the average market price of Class A common stock during the period, consistent with the treasury stock method. |
As of June 30, | ||||||
2019 | 2018 | |||||
Stock options issued and outstanding | 9,125,950 | 9,527,562 | ||||
Nonvested restricted stock units issued and outstanding | 8,926,529 | 7,705,589 | ||||
Class A common stock reserved for Twilio.org | 776,334 | 635,014 | ||||
Class A common stock committed under 2016 ESPP | 101,885 | 131,581 | ||||
Conversion spread* | 3,626,721 | — | ||||
Unvested shares subject to repurchase | — | 334 | ||||
Total | 22,557,419 | 18,000,080 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Income tax benefit (provision) | $ | 2,033 | $ | (150 | ) | $ | 53,754 | $ | (287 | ) |
Three Months Ended June 30, | ||||||||
2019 | 2018 | |||||||
Number of Active Customer Accounts (as of end date of period) (1) | 161,869 | 57,350 | ||||||
Base Revenue (in thousands) (1) | $ | 256,737 | $ | 135,004 | ||||
Base Revenue Growth Rate (1) | 90 | % | 54 | % | ||||
Dollar-Based Net Expansion Rate | 140 | % | 137 | % |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||
Number of Active Customer Accounts (as of end date of period) (1) | 190,000 | 154,797 | ||||||||||||||||||||||||
Total revenue (in thousands) (1) | $ | 364,868 | $ | 233,139 | ||||||||||||||||||||||
Total Revenue Growth Rate (1) | 57 | % | 81 | % | ||||||||||||||||||||||
Dollar-Based Net Expansion Rate (2) | 143 | % | 142 | % | ||||||||||||||||||||||
____________________ | ||||||||||||||||||||||||||
(1) Includes the contribution from our Twilio SendGrid business, acquired on February 1, 2019. Effective December 31, 2019, we round down the number of Active Customer Accounts to the nearest thousand. | ||||||||||||||||||||||||||
(2) As previously announced in our Annual Report on Form 10-K filed with the SEC on March 2, 2020, commencing with the three-month period ended March 31, 2020, we calculate our Dollar-Based Net Expansion Rate by comparing total revenue from a cohort of Active Customer Accounts in a period to the same period in the prior year (the "New DBNE Definition"). To facilitate comparison between the periods presented, Dollar-Based Net Expansion Rate as presented in the table above has been calculated as if the New DBNE Definition had been in effect during that period. As a result of the New DBNE Definition, unless specifically identified as being calculated using total revenue, any Dollar-Based Net Expansion Rates disclosed by our Company in SEC filings, press releases and presentations prior to the date of this Quarterly Report will not be directly comparable to our Dollar-Based Net Expansion Rates going forward. |
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
125 | % | 132 | % | 141 | % | 142 | % | 150 | % | 147 | % | 138 | % | 138 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | Mar 31, 2017 | Dec 31, 2016 | Sep 30, 2016 | Jun 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
123 | % | 125 | % | 132 | % | 128 | % | 141 | % | 140 | % | 148 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Three Months Ended March 31, | |||||||||||||||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Reconciliation: | Reconciliation: | (In thousands) | ||||||||||||||||||||||||||
Gross profit | $ | 150,015 | $ | 79,814 | Gross profit | $ | 193,535 | $ | 126,050 | |||||||||||||||||||
Non-GAAP adjustments: | Non-GAAP adjustments: | |||||||||||||||||||||||||||
Stock-based compensation | 1,623 | 266 | Stock-based compensation | 1,837 | 1,809 | |||||||||||||||||||||||
Amortization of acquired intangibles | 11,857 | 1,125 | Amortization of acquired intangibles | 12,381 | 8,460 | |||||||||||||||||||||||
Payroll taxes related to stock-based compensation | 58 | — | ||||||||||||||||||||||||||
Non-GAAP gross profit | $ | 163,553 | $ | 81,205 | Non-GAAP gross profit | $ | 207,753 | $ | 136,319 | |||||||||||||||||||
Non-GAAP gross margin | 59 | % | 55 | % | Non-GAAP gross margin | 57 | % | 58 | % |
Three Months Ended March 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Reconciliation: | (In thousands) | |||||||||||||||||||
Operating expenses | $ | 286,231 | $ | 213,638 | ||||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||
Stock-based compensation | (67,188) | (56,515) | ||||||||||||||||||
Amortization of acquired intangibles | (7,911) | (5,156) | ||||||||||||||||||
Acquisition-related expenses | (302) | (12,543) | ||||||||||||||||||
Charitable contributions | (2,701) | — | ||||||||||||||||||
Payroll taxes related to stock-based compensation | (6,453) | (6,468) | ||||||||||||||||||
Non-GAAP operating expenses | $ | 201,676 | $ | 132,956 |
Three Months Ended June 30, | ||||||||
2019 | 2018 | |||||||
(In thousands) | ||||||||
Reconciliation: | ||||||||
Operating expenses | $ | 243,747 | $ | 101,772 | ||||
Non-GAAP adjustments: | ||||||||
Stock-based compensation | (69,117 | ) | (20,740 | ) | ||||
Amortization of acquired intangibles | (7,391 | ) | (226 | ) | ||||
Acquisition-related expenses | (1,274 | ) | — | |||||
Payroll taxes related to stock-based compensation | (3,922 | ) | (1,811 | ) | ||||
Non-GAAP operating expenses | $ | 162,043 | $ | 78,995 |
Three Months Ended March 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Reconciliation: | (In thousands) | |||||||||||||||||||
Loss from operations | $ | (92,696) | $ | (87,588) | ||||||||||||||||
Non-GAAP adjustments: | ||||||||||||||||||||
Stock-based compensation | 69,025 | 58,324 | ||||||||||||||||||
Amortization of acquired intangibles | 20,292 | 13,616 | ||||||||||||||||||
Acquisition-related expenses | 302 | 12,543 | ||||||||||||||||||
Charitable contributions | 2,701 | — | ||||||||||||||||||
Payroll taxes related to stock-based compensation | 6,453 | 6,468 | ||||||||||||||||||
Non-GAAP income from operations | $ | 6,077 | $ | 3,363 | ||||||||||||||||
Non-GAAP operating margin | 2 | % | 1 | % |
Three Months Ended June 30, | ||||||||
2019 | 2018 | |||||||
(In thousands) | ||||||||
Reconciliation: | ||||||||
Loss from operations | $ | (93,732 | ) | $ | (21,958 | ) | ||
Non-GAAP adjustments: | ||||||||
Stock-based compensation | 70,740 | 21,006 | ||||||
Amortization of acquired intangibles | 19,248 | 1,351 | ||||||
Acquisition-related expenses | 1,274 | — | ||||||
Payroll taxes related to stock-based compensation | 3,980 | 1,811 | ||||||
Non-GAAP income from operations | $ | 1,510 | $ | 2,210 | ||||
Non-GAAP operating margin | 1 | % | 1 | % |
Three Months Ended March 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
Condensed Consolidated Statements of Operations Data: | (In thousands) | |||||||||||||||||||
Revenue | $ | 364,868 | $ | 233,139 | ||||||||||||||||
Cost of revenue (1) (2) | 171,333 | 107,089 | ||||||||||||||||||
Gross profit | 193,535 | 126,050 | ||||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Research and development (1) (2) | 114,339 | 77,855 | ||||||||||||||||||
Sales and marketing (1) (2) | 116,722 | 71,607 | ||||||||||||||||||
General and administrative (1) (2) | 55,170 | 64,176 | ||||||||||||||||||
Total operating expenses | 286,231 | 213,638 | ||||||||||||||||||
Loss from operations | (92,696) | (87,588) | ||||||||||||||||||
Other expenses, net | (1,118) | (636) | ||||||||||||||||||
Loss before (provision) benefit for income taxes | (93,814) | (88,224) | ||||||||||||||||||
(Provision) benefit for income taxes | (977) | 51,721 | ||||||||||||||||||
Net loss attributable to common stockholders | $ | (94,791) | $ | (36,503) | ||||||||||||||||
____________________ | ||||||||||||||||||||
(1) Includes stock-based compensation expense as follows: |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In thousands) | ||||||||||||||||
Condensed Consolidated Statements of Operations Data: | ||||||||||||||||
Revenue | $ | 275,039 | $ | 147,754 | $ | 508,178 | $ | 276,870 | ||||||||
Cost of revenue (1) (2) | 125,024 | 67,940 | 232,113 | 127,522 | ||||||||||||
Gross profit | 150,015 | 79,814 | 276,065 | 149,348 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development (1) (2) | 98,783 | 39,811 | 176,638 | 77,387 | ||||||||||||
Sales and marketing (1) (2) | 90,421 | 37,749 | 162,028 | 70,571 | ||||||||||||
General and administrative (1) (2) | 54,543 | 24,212 | 118,719 | 47,605 | ||||||||||||
Total operating expenses | 243,747 | 101,772 | 457,385 | 195,563 | ||||||||||||
Loss from operations | (93,732 | ) | (21,958 | ) | (181,320 | ) | (46,215 | ) | ||||||||
Other expenses, net | (880 | ) | (1,898 | ) | (1,516 | ) | (1,233 | ) | ||||||||
Loss before benefit (provision) for income taxes | (94,612 | ) | (23,856 | ) | (182,836 | ) | (47,448 | ) | ||||||||
Benefit (provision) for income taxes | 2,033 | (150 | ) | 53,754 | (287 | ) | ||||||||||
Net loss attributable to common stockholders | $ | (92,579 | ) | $ | (24,006 | ) | $ | (129,082 | ) | $ | (47,735 | ) |
Three Months Ended March 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cost of revenue | $ | 1,837 | $ | 1,809 | ||||||||||||||||
Research and development | 33,209 | 25,339 | ||||||||||||||||||
Sales and marketing | 19,943 | 11,749 | ||||||||||||||||||
General and administrative | 14,036 | 19,427 | ||||||||||||||||||
Total | $ | 69,025 | $ | 58,324 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
(In thousands) | ||||||||||||||||
Cost of revenue | $ | 1,623 | $ | 266 | $ | 3,432 | $ | 488 | ||||||||
Research and development | 33,701 | 9,749 | 59,040 | 17,621 | ||||||||||||
Sales and marketing | 14,564 | 5,049 | 26,313 | 8,908 | ||||||||||||
General and administrative | 20,852 | 5,942 | 40,279 | 11,529 | ||||||||||||
Total | $ | 70,740 | $ | 21,006 | $ | 129,064 | $ | 38,546 |
Three Months Ended March 31, | ||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | 2020 | 2019 | |||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||
Cost of revenue | $ | 11,857 | $ | 1,125 | $ | 20,317 | $ | 2,323 | Cost of revenue | $ | 12,381 | $ | 8,460 | |||||||||||||||||||||||
Research and development | — | — | — | 22 | ||||||||||||||||||||||||||||||||
Sales and marketing | 7,329 | 206 | 12,332 | 426 | Sales and marketing | 7,864 | 5,003 | |||||||||||||||||||||||||||||
General and administrative | 62 | 20 | 215 | 40 | General and administrative | 47 | 153 | |||||||||||||||||||||||||||||
Total | $ | 19,248 | $ | 1,351 | $ | 32,864 | $ | 2,811 | Total | $ | 20,292 | $ | 13,616 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Condensed Consolidated Statements of Operations, as a percentage of revenue:** | ||||||||||||
Revenue | 100 | % | 100 | % | 100 | % | 100 | % | ||||
Cost of revenue | 45 | % | 46 | % | 46 | % | 46 | % | ||||
Gross profit | 55 | % | 54 | % | 54 | % | 54 | % | ||||
Operating expenses: | ||||||||||||
Research and development | 36 | % | 27 | % | 35 | % | 28 | % | ||||
Sales and marketing | 33 | % | 26 | % | 32 | % | 25 | % | ||||
General and administrative | 20 | % | 16 | % | 23 | % | 17 | % | ||||
Total operating expenses | 89 | % | 69 | % | 90 | % | 71 | % | ||||
Loss from operations | (34 | %) | (15 | %) | (36 | )% | (17 | )% | ||||
Other expenses, net | * | (1 | %) | * | * | |||||||
Loss before benefit (provision) for income taxes | (34 | %) | (16 | %) | (36 | )% | (17 | )% | ||||
Benefit (provision) for income taxes | 1 | % | * | 11 | % | * | ||||||
Net loss attributable to common stockholders | (34 | %) | (16 | %) | (25 | )% | (17 | )% |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||
Revenue | 100 | % | 100 | % | ||||||||||||||||||||||
Cost of revenue | 47 | 46 | ||||||||||||||||||||||||
Gross profit | 53 | 54 | ||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Research and development | 31 | 33 | ||||||||||||||||||||||||
Sales and marketing | 32 | 31 | ||||||||||||||||||||||||
General and administrative | 15 | 28 | ||||||||||||||||||||||||
Total operating expenses | 78 | 92 | ||||||||||||||||||||||||
Loss from operations | (25) | (38) | ||||||||||||||||||||||||
Other expenses, net | * | * | ||||||||||||||||||||||||
Loss before (provision) benefit for income taxes | (26) | (38) | ||||||||||||||||||||||||
(Provision) benefit for income taxes | * | 22 | ||||||||||||||||||||||||
Net loss attributable to common stockholders | (26 | %) | (16 | %) | ||||||||||||||||||||||
___________________ | ||||||||||||||||||||||||||
* Less than 0.5% of revenue. | ||||||||||||||||||||||||||
** Columns may not add up to 100% due to rounding. |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Total Revenue | $ | 364,868 | $ | 233,139 | $ | 131,729 | 57 | % |
Three Months Ended June 30, | ||||||||||||||
2019 | 2018 | Change | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Base Revenue | $ | 256,737 | $ | 135,004 | $ | 121,733 | 90% | |||||||
Variable Revenue | 18,302 | 12,750 | 5,552 | 44% | ||||||||||
Total Revenue | $ | 275,039 | $ | 147,754 | $ | 127,285 | 86% |
Three Months Ended June 30, | ||||||||||||||
2019 | 2018 | Change | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Cost of revenue | $ | 125,024 | $ | 67,940 | $ | 57,084 | 84% | |||||||
Gross margin | 55 | % | 54 | % |
Three Months Ended June 30, | ||||||||||||||
2019 | 2018 | Change | ||||||||||||
(Dollars in thousands) | ||||||||||||||
Research and development | $ | 98,783 | $ | 39,811 | $ | 58,972 | 148% | |||||||
Sales and marketing | 90,421 | 37,749 | 52,672 | 140% | ||||||||||
General and administrative | 54,543 | 24,212 | 30,331 | 125% | ||||||||||
Total operating expenses | $ | 243,747 | $ | 101,772 | $ | 141,975 | 140% |
Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | Change | |||||||||||||
(Dollars in thousands) | |||||||||||||||
Base Revenue | $ | 477,622 | $ | 252,511 | $ | 225,111 | 89 | % | |||||||
Variable Revenue | 30,556 | 24,359 | 6,197 | 25 | % | ||||||||||
Total Revenue | $ | 508,178 | $ | 276,870 | $ | 231,308 | 84 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenue | $ | 171,333 | $ | 107,089 | $ | 64,244 | 60 | % | |||||||||||||||||||||||||||||||||||||||
Gross margin | 53 | % | 54 | % |
Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | Change | |||||||||||||
(Dollars in thousands) | |||||||||||||||
Cost of revenue | $ | 232,113 | $ | 127,522 | $ | 104,591 | 82 | % | |||||||
Gross margin | 54 | % | 54 | % |
Three Months Ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Change | |||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Research and development | $ | 114,339 | $ | 77,855 | $ | 36,484 | 47 | % | |||||||||||||||||||||||||||||||||||||||
Sales and marketing | 116,722 | 71,607 | 45,115 | 63 | % | ||||||||||||||||||||||||||||||||||||||||||
General and administrative | 55,170 | 64,176 | (9,006) | (14) | % | ||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | $ | 286,231 | $ | 213,638 | $ | 72,593 | 34 | % |
Six Months Ended June 30, | |||||||||||||||
2019 | 2018 | Change | |||||||||||||
(Dollars in thousands) | |||||||||||||||
Research and development | $ | 176,638 | $ | 77,387 | $ | 99,251 | 128 | % | |||||||
Sales and marketing | 162,028 | 70,571 | 91,457 | 130 | % | ||||||||||
General and administrative | 118,719 | 47,605 | 71,114 | 149 | % | ||||||||||
Total operating expenses | $ | 457,385 | $ | 195,563 | $ | 261,822 | 134 | % |
Six Months Ended June 30, | ||||||||
2019 | 2018 | |||||||
Cash (used in) provided by operating activities | $ | (13,819 | ) | $ | 19,225 | |||
Cash used in investing activities | (961,864 | ) | (138,117 | ) | ||||
Cash provided by financing activities | 1,007,122 | 496,301 | ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | — | 818 | ||||||
Net increase in cash, cash equivalents and restricted cash | $ | 31,439 | $ | 378,227 |
Three Months Ended March 31, | ||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash provided by (used in) operating activities | $ | 15,535 | $ | (9,113) | ||||||||||||||||
Cash provided by (used) in investing activities | 71,645 | (130,201) | ||||||||||||||||||
Cash provided by financing activities | 4,603 | 12,811 | ||||||||||||||||||
Net increase (decrease) increase in cash, cash equivalents and restricted cash | $ | 91,783 | $ | (126,503) |
Exhibit Number | ||||||||||||||
Description | Filing Date | |||||||||||||
Filed herewith | ||||||||||||||
Filed herewith | ||||||||||||||
32.1 * | Furnished herewith | |||||||||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | Filed herewith | ||||||||||||
101.SCH | XBRL Taxonomy Extension Schema | Filed herewith | ||||||||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase | Filed herewith | ||||||||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase | Filed herewith | ||||||||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase | Filed herewith | ||||||||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase | Filed herewith |
Cover Page with Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101). |
* | The certifications furnished in Exhibit 32.1 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference. |
Twilio Inc. | ||||||||
/s/ JEFFREY LAWSON | ||||||||
Jeffrey Lawson | ||||||||
Chief Executive Officer (Principal Executive Officer) | ||||||||
/s/ KHOZEMA SHIPCHANDLER | ||||||||
Khozema Shipchandler | ||||||||
Chief Financial Officer (Principal Accounting and Financial Officer) |