Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 02, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 000-27275 | |
Entity Registrant Name | Akamai Technologies, Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3432319 | |
Entity Address, Address Line One | 145 Broadway | |
Entity Address, City or Town | Cambridge | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 02142 | |
City Area Code | 617 | |
Local Phone Number | 444-3000 | |
Title of 12(b) Security | Common Stock - par value $0.01 per share | |
Trading Symbol | AKAM | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 162,479,916 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001086222 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 1,264,590 | $ 352,917 |
Marketable securities | 652,695 | 745,156 |
Accounts receivable, net of reserves of $2,268 and $1,822 at September 30, 2021, and December 31, 2020, respectively | 660,092 | 660,052 |
Prepaid expenses and other current assets | 184,503 | 171,406 |
Total current assets | 2,761,880 | 1,929,531 |
Marketable securities | 835,074 | 1,398,802 |
Property and equipment, net | 1,543,301 | 1,478,272 |
Operating lease right-of-use assets | 821,033 | 793,945 |
Acquired intangible assets, net | 203,596 | 234,724 |
Goodwill | 1,680,496 | 1,674,371 |
Deferred income tax assets | 136,305 | 106,918 |
Other assets | 133,790 | 147,567 |
Total assets | 8,115,475 | 7,764,130 |
Current liabilities: | ||
Accounts payable | 98,305 | 118,546 |
Accrued expenses | 376,036 | 380,468 |
Deferred revenue | 83,371 | 76,600 |
Operating lease liabilities | 164,559 | 154,801 |
Other current liabilities | 9,169 | 27,755 |
Total current liabilities | 731,440 | 758,170 |
Deferred revenue | 5,355 | 5,262 |
Deferred income tax liabilities | 35,333 | 37,458 |
Convertible senior notes | 1,958,558 | 1,906,707 |
Operating lease liabilities | 722,294 | 715,404 |
Other liabilities | 80,050 | 89,833 |
Total liabilities | 3,533,030 | 3,512,834 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 5,000,000 shares authorized; 700,000 shares designated as Series A Junior Participating Preferred Stock; no shares issued or outstanding | 0 | 0 |
Common stock, $0.01 par value; 700,000,000 shares authorized; 164,733,227 shares issued and 162,424,440 shares outstanding at September 30, 2021, and 162,709,720 shares issued and outstanding at December 31, 2020 | 1,647 | 1,627 |
Additional paid-in capital | 3,789,623 | 3,664,820 |
Accumulated other comprehensive loss | (53,726) | (20,201) |
Treasury stock, at cost, 2,308,787 shares at September 30, 2021, and no shares at December 31, 2020 | (251,257) | 0 |
Retained earnings | 1,096,158 | 605,050 |
Total stockholders’ equity | 4,582,445 | 4,251,296 |
Total liabilities and stockholders’ equity | $ 8,115,475 | $ 7,764,130 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable reserve | $ 2,268 | $ 1,822 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares designated as Series A Junior Participating Preferred Stock (in shares) | 700,000 | 700,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 700,000,000 | 700,000,000 |
Common stock, shares issued (in shares) | 164,733,227 | 162,709,720 |
Common stock, shares outstanding (in shares) | 162,424,440 | 162,709,720 |
Treasury stock (in shares) | 2,308,787 | 0 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 860,333 | $ 792,845 | $ 2,555,865 | $ 2,351,862 |
Costs and operating expenses: | ||||
Cost of revenue (exclusive of amortization of acquired intangible assets shown below) | 316,866 | 283,439 | 943,553 | 828,825 |
Research and development | 82,899 | 66,773 | 242,199 | 202,087 |
Sales and marketing | 108,514 | 122,749 | 336,762 | 370,004 |
General and administrative | 134,265 | 128,365 | 405,275 | 385,435 |
Amortization of acquired intangible assets | 11,959 | 10,340 | 35,446 | 31,155 |
Restructuring charge | 565 | 21 | 5,567 | 10,439 |
Total costs and operating expenses | 655,068 | 611,687 | 1,968,802 | 1,827,945 |
Income from operations | 205,265 | 181,158 | 587,063 | 523,917 |
Interest income | 2,872 | 6,307 | 12,186 | 22,852 |
Interest expense | (18,144) | (17,324) | (54,015) | (51,778) |
Other income (expense), net | 3,635 | (2,158) | 2,007 | (7,869) |
Income before provision for income taxes | 193,628 | 167,983 | 547,241 | 487,122 |
Provision for income taxes | (13,648) | (8,801) | (43,555) | (41,764) |
Loss from equity method investment | (1,064) | (559) | (12,578) | (1,674) |
Net income | $ 178,916 | $ 158,623 | $ 491,108 | $ 443,684 |
Net income per share: | ||||
Basic (in dollars per share) | $ 1.10 | $ 0.97 | $ 3.01 | $ 2.73 |
Diluted (in dollars per share) | $ 1.08 | $ 0.95 | $ 2.96 | $ 2.69 |
Shares used in per share calculations: | ||||
Basic (in shares) | 162,767 | 162,757 | 162,967 | 162,387 |
Diluted (in shares) | 166,318 | 166,519 | 166,090 | 164,990 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 178,916 | $ 158,623 | $ 491,108 | $ 443,684 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (21,160) | 13,177 | (28,444) | (7,292) |
Change in unrealized (loss) gain on investments, net of income tax benefit (provision) of $353, $559, $1,700, and $(3,120) for the three and nine months ended September 30, 2021 and 2020, respectively | (1,009) | (1,724) | (5,081) | 6,582 |
Other comprehensive (loss) income | (22,169) | 11,453 | (33,525) | (710) |
Comprehensive income | $ 156,747 | $ 170,076 | $ 457,583 | $ 442,974 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Income tax benefit (provision) | $ (353) | $ (1,700) | $ (559) | $ 3,120 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 491,108 | $ 443,684 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 408,933 | 350,681 |
Stock-based compensation | 153,804 | 146,901 |
Benefit for deferred income taxes | (30,335) | (22,548) |
Amortization of debt discount and issuance costs | 49,284 | 47,057 |
Other non-cash reconciling items, net | 12,015 | 16,284 |
Changes in operating assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable | (15,225) | (85,439) |
Prepaid expenses and other current assets | (15,099) | (21,380) |
Accounts payable and accrued expenses | (16,263) | 49,818 |
Deferred revenue | 8,263 | 14,803 |
Other current liabilities | (17,958) | (1,638) |
Other non-current assets and liabilities | (10,864) | (14,316) |
Net cash provided by operating activities | 1,017,663 | 923,907 |
Cash flows from investing activities: | ||
Cash (paid) received for business acquisitions, net of cash acquired | (15,638) | 106 |
Cash paid for asset acquisition | 0 | (36,376) |
Purchases of property and equipment | (265,131) | (395,793) |
Capitalization of internal-use software development costs | (170,404) | (168,634) |
Purchases of short- and long-term marketable securities | (611,732) | (1,153,526) |
Proceeds from sales of short- and long-term marketable securities | 438,370 | 29,809 |
Proceeds from maturities of short- and long-term marketable securities | 823,255 | 1,301,354 |
Other, net | (1,665) | (1,980) |
Net cash provided by (used in) investing activities | 197,055 | (425,040) |
Cash flows from financing activities: | ||
Proceeds related to the issuance of common stock under stock plans | 46,942 | 45,812 |
Employee taxes paid related to net share settlement of stock-based awards | (88,195) | (77,299) |
Repurchases of common stock | (251,257) | (121,078) |
Other, net | (268) | 0 |
Net cash used in financing activities | (292,778) | (152,565) |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (9,228) | 3,535 |
Net increase in cash, cash equivalents and restricted cash | 912,712 | 349,837 |
Cash, cash equivalents and restricted cash at beginning of period | 353,466 | 394,146 |
Cash, cash equivalents and restricted cash at end of period | 1,266,178 | 743,983 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes, net of refunds received of $14,261 and $16,674 for the nine months ended September 30, 2021 and 2020, respectively | 82,003 | 31,634 |
Cash paid for interest expense | 5,031 | 5,235 |
Cash paid for operating lease liabilities | 167,457 | 144,322 |
Non-cash activities: | ||
Operating lease right-of-use assets obtained in exchange for operating lease liabilities | 173,427 | 128,177 |
Purchases of property and equipment and capitalization of internal-use software development costs included in accounts payable and accrued expenses | 56,401 | 48,357 |
Capitalization of stock-based compensation | 28,271 | 28,487 |
Reconciliation of cash, cash equivalents and restricted cash: | ||
Cash and cash equivalents | 1,264,590 | 742,521 |
Restricted cash | 1,588 | 1,462 |
Cash, cash equivalents and restricted cash | $ 1,266,178 | $ 743,983 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Cash Flows [Abstract] | ||
Proceeds from income tax refunds | $ 14,261 | $ 16,674 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Treasury Stock | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2019 | 162,000,843 | |||||
Beginning balance at Dec. 31, 2019 | $ 3,657,958 | $ 1,620 | $ 3,653,486 | $ (45,144) | $ 0 | $ 47,996 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes (in shares) | 1,667,888 | |||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes | (76,679) | $ 17 | (76,696) | |||
Issuance of common stock under employee stock purchase plan (in shares) | 393,921 | |||||
Issuance of common stock under employee stock purchase plan | 29,170 | $ 4 | 29,166 | |||
Stock-based compensation | 175,272 | 175,272 | ||||
Repurchases of common stock (in shares) | (1,262,868) | |||||
Repurchases of common stock | (121,078) | (121,078) | ||||
Net income | 443,684 | 443,684 | ||||
Foreign currency translation adjustments | (7,292) | (7,292) | ||||
Change in unrealized gain (loss) on investments, net of tax | 6,582 | 6,582 | ||||
Ending balance (in shares) at Sep. 30, 2020 | 162,799,784 | |||||
Ending balance at Sep. 30, 2020 | 4,107,617 | $ 1,641 | 3,781,228 | (45,854) | (121,078) | 491,680 |
Beginning balance (in shares) at Jun. 30, 2020 | 162,630,477 | |||||
Beginning balance at Jun. 30, 2020 | 3,904,295 | $ 1,638 | 3,734,787 | (57,307) | (107,880) | 333,057 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes (in shares) | 289,304 | |||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes | (13,387) | $ 3 | (13,390) | |||
Stock-based compensation | 59,831 | 59,831 | ||||
Repurchases of common stock (in shares) | (119,997) | |||||
Repurchases of common stock | (13,198) | (13,198) | ||||
Net income | 158,623 | 158,623 | ||||
Foreign currency translation adjustments | 13,177 | 13,177 | ||||
Change in unrealized gain (loss) on investments, net of tax | (1,724) | (1,724) | ||||
Ending balance (in shares) at Sep. 30, 2020 | 162,799,784 | |||||
Ending balance at Sep. 30, 2020 | 4,107,617 | $ 1,641 | 3,781,228 | (45,854) | (121,078) | 491,680 |
Beginning balance (in shares) at Dec. 31, 2020 | 162,709,720 | |||||
Beginning balance at Dec. 31, 2020 | 4,251,296 | $ 1,627 | 3,664,820 | (20,201) | 0 | 605,050 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes (in shares) | 1,665,123 | |||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes | (88,747) | $ 16 | (88,763) | |||
Issuance of common stock under employee stock purchase plan (in shares) | 358,384 | |||||
Issuance of common stock under employee stock purchase plan | 31,531 | $ 4 | 31,527 | |||
Stock-based compensation | 182,039 | 182,039 | ||||
Repurchases of common stock (in shares) | (2,308,787) | |||||
Repurchases of common stock | (251,257) | (251,257) | ||||
Net income | 491,108 | 491,108 | ||||
Foreign currency translation adjustments | (28,444) | (28,444) | ||||
Change in unrealized gain (loss) on investments, net of tax | (5,081) | (5,081) | ||||
Ending balance (in shares) at Sep. 30, 2021 | 162,424,440 | |||||
Ending balance at Sep. 30, 2021 | 4,582,445 | $ 1,647 | 3,789,623 | (53,726) | (251,257) | 1,096,158 |
Beginning balance (in shares) at Jun. 30, 2021 | 163,018,768 | |||||
Beginning balance at Jun. 30, 2021 | 4,476,657 | $ 1,645 | 3,743,743 | (31,557) | (154,416) | 917,242 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes (in shares) | 252,204 | |||||
Issuance of common stock upon the exercise of stock options and vesting of restricted and deferred stock units, net of shares withheld for employee taxes | (11,866) | $ 2 | (11,868) | |||
Stock-based compensation | 57,748 | 57,748 | ||||
Repurchases of common stock (in shares) | (846,532) | |||||
Repurchases of common stock | (96,841) | (96,841) | ||||
Net income | 178,916 | 178,916 | ||||
Foreign currency translation adjustments | (21,160) | (21,160) | ||||
Change in unrealized gain (loss) on investments, net of tax | (1,009) | (1,009) | ||||
Ending balance (in shares) at Sep. 30, 2021 | 162,424,440 | |||||
Ending balance at Sep. 30, 2021 | $ 4,582,445 | $ 1,647 | $ 3,789,623 | $ (53,726) | $ (251,257) | $ 1,096,158 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | Nature of Business and Basis of Presentation Akamai Technologies, Inc. (the “Company”) provides solutions to power and protect content and business applications over the internet. Its globally-distributed platform is comprised of more than 325,000 servers in over 130 countries. The Company was incorporated in Delaware in 1998 and is headquartered in Cambridge, Massachusetts. The Company currently operates in one industry segment: providing cloud services for delivering, optimizing and securing content and business applications over the internet. The accompanying interim condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. These financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Certain information and footnote disclosures normally included in the Company’s annual audited consolidated financial statements and accompanying notes have been condensed in, or omitted from, these interim financial statements. Accordingly, the unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission on February 26, 2021. The December 31, 2020 consolidated balance sheet included herein is derived from the Company's audited consolidated financial statements. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results of operations that may be expected for any future periods. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, that are necessary for a fair statement of the results of all interim periods reported herein. Recent Accounting Pronouncements Convertible Instruments and Contracts in an Entity's Own Equity In August 2020, the Financial Accounting Standards Board ("FASB") issued guidance that is expected to reduce complexity and improve comparability of financial reporting associated with accounting f or convertible instruments and contracts in an entity’s own equity. The Company will adopt this guidance on January 1, 2022 on a modified retrospective basis. Upon adoption, the convertible senior notes included on the Company's consolidated balance sheet will more closely reflect the principal amounts. Initially, the Company separated its convertible senior notes into a liability and equity component. The equity portion will be eliminated, such that convertible senior notes will increase and additional paid-in capital will decrease on the consolidated balance sheet. With the elimination of the debt discount created by the equity component, amortization of the debt discount will also be eliminated, which will have the impact of decreasing interest expense and increasing net income. Refer to Note 7 to the condensed consolidated financial statements for additional information regarding the initial accounting for the notes and balances as of September 30, 2021. The new guidance also impacts the accounting for diluted net income per share, which the Company is continuing to evaluate, along with finalizing all impacts of adopting this new standard on its consolidated financial statements. Business Combinations In October 2021, the FASB issued guidance which requires contract assets and contract liabilities from contracts with customers that are acquired in a business combination to be recognized and measured as if the acquirer had originated the original contract. Previously, contract assets and contract liabilities were measured at fair value. The Company plans to early adopt this guidance in the fourth quarter of 2021, which will require retrospective adoption to all business combinations completed on or after January 1, 2021, and prospectively to all business combinations occurring after adoption. The adoption will not have a material impact to the Company's results of operations in 2021. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following is a summary of available-for-sale marketable securities held as of September 30, 2021 and December 31, 2020 (in thousands): Gross Unrealized Classification on Balance Sheet Amortized Cost Gains Losses Aggregate Short-Term Long-Term As of September 30, 2021 Commercial paper $ 79,744 $ 2 $ (9) $ 79,737 $ 79,737 $ — Corporate bonds 1,097,056 3,100 (378) 1,099,778 507,238 592,540 U.S. government agency obligations 285,903 44 (122) 285,825 64,951 220,874 $ 1,462,703 $ 3,146 $ (509) $ 1,465,340 $ 651,926 $ 813,414 As of December 31, 2020 Commercial paper $ 46,931 $ 13 $ (8) $ 46,936 $ 46,936 $ — Corporate bonds 1,628,462 9,482 (262) 1,637,682 607,403 1,030,279 Municipal securities 3,495 — (6) 3,489 — 3,489 U.S. government agency obligations 435,653 329 (63) 435,919 89,951 345,968 $ 2,114,541 $ 9,824 $ (339) $ 2,124,026 $ 744,290 $ 1,379,736 The Company offers certain eligible employees the ability to participate in a non-qualified deferred compensation plan. The mutual funds held by the Company that are associated with this plan are classified as restricted trading securities. These securities are not included in the available-for-sale securities table above but are included in marketable securities in the condensed consolidated balance sheets. Unrealized gains and unrealized temporary losses on investments classified as available-for-sale are included within accumulated other comprehensive loss in the condensed consolidated balance sheets. Upon realization, those amounts are reclassified from accumulated other comprehensive loss to interest income in the condensed consolidated statements of income. As of September 30, 2021, the Company held for investment one corporate bond with a fair value of $1.5 million, which was classified as an available-for-sale marketable security that had been in a continuous unrealized loss position for more than 12 months. The unrealized loss is attributed to changes in interest rates. Based on available evidence, the Company does not believe any unrealized losses represent other than temporary impairments. The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets as of September 30, 2021 and December 31, 2020 (in thousands): Total Fair Value Fair Value Measurements at Level 1 Level 2 As of September 30, 2021 Cash Equivalents and Marketable Securities: Money market funds $ 1,784 $ 1,784 $ — Commercial paper 121,537 — 121,537 Corporate bonds 1,099,778 — 1,099,778 U.S. government agency obligations 302,525 — 302,525 Mutual funds 22,429 22,429 — $ 1,548,053 $ 24,213 $ 1,523,840 As of December 31, 2020 Cash Equivalents and Marketable Securities: Money market funds $ 74,417 $ 74,417 $ — Commercial paper 75,785 — 75,785 Corporate bonds 1,637,682 — 1,637,682 Municipal securities 3,489 — 3,489 U.S. government agency obligations 435,919 — 435,919 Mutual funds 19,932 19,932 — $ 2,247,224 $ 94,349 $ 2,152,875 As of September 30, 2021 and December 31, 2020, the Company grouped money market funds and mutual funds using a Level 1 valuation because market prices for such investments are readily available in active markets. As of September 30, 2021 and December 31, 2020, the Company grouped commercial paper, U.S. government agency obligations, corporate bonds and municipal securities using a Level 2 valuation because quoted prices for similar assets in active markets (or identical assets in an inactive market) are available. The Company did not have any transfers of assets between Level 1, Level 2 or Level 3 of the fair value measurement hierarchy during the nine months ended September 30, 2021. When developing fair value estimates, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. When available, the Company uses quoted market prices to measure fair value. The valuation technique used to measure fair value for the Company's Level 1 and Level 2 assets is a market approach, using prices and other relevant information generated by market transactions involving identical or comparable assets. If market prices are not available, the fair value measurement is based on models that primarily use market-based parameters including yield curves, volatilities, credit ratings and currency rates. In certain cases where market rate assumptions are not available, the Company is required to make judgments about assumptions market participants would use to estimate the fair value of a financial instrument. Contractual maturities of the Company’s available-for-sale marketable securities held as of September 30, 2021 and December 31, 2020 were as follows (in thousands): September 30, December 31, Due in 1 year or less $ 651,926 $ 744,290 Due after 1 year through 5 years 813,414 1,379,736 $ 1,465,340 $ 2,124,026 |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2021 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Accounts Receivable | Accounts Receivable Net accounts receivable consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands): September 30, December 31, Trade accounts receivable $ 479,267 $ 473,474 Unbilled accounts receivable 183,093 188,400 Gross accounts receivable 662,360 661,874 Allowances for current expected credit losses and other reserves (2,268) (1,822) Accounts receivable, net $ 660,092 $ 660,052 The following table summarizes the activity of the Company's allowance for current expected credit losses and other reserves during the nine months ended September 30, 2021 and 2020 (in thousands): September 30, September 30, Beginning balance $ 1,822 $ 1,880 Charges to income from operations 3,510 10,354 Collections from customers previously reserved and other (3,064) (8,538) Ending balance $ 2,268 $ 3,696 Charges to income from operations primarily represents charges to bad debt expense for increases in the allowance for current expected credit losses. The allowance for current expected credit losses has been developed using historical loss rates for the previous twelve months as well as expectations about the future where the Company has been able to develop forecasts to support its estimates. |
Incremental Costs to Obtain a C
Incremental Costs to Obtain a Contract with a Customer | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Incremental Costs to Obtain a Contract with a Customer | Incremental Costs to Obtain a Contract with a Customer The following table summarizes the deferred costs associated with obtaining customer contracts, specifically commission and incentive payments, as of September 30, 2021 and December 31, 2020 (in thousands): September 30, December 31, Deferred costs included in prepaid and other current assets $ 42,299 $ 54,516 Deferred costs included in other assets 27,551 23,200 Total deferred costs $ 69,850 $ 77,716 The following table summarizes additional information related to incremental costs to obtain a contract with a customer for each of the three and nine month periods ended September 30, 2021 and 2020 (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 Amortization expense related to deferred costs $ 14,901 $ 14,816 $ 43,304 $ 45,007 Incremental costs capitalized $ 13,164 $ 16,550 $ 36,957 $ 39,925 Amortization expense related to deferred costs is primarily included in sales and marketing expense in the condensed consolidated statements of income. The Company sells its solutions through a sales force located both domestically and abroad. Revenue derived from operations outside of the U.S. is determined based on the country in which the sale originated. Other than the U.S., no single country accounted for 10% or more of the Company’s total revenue for any reported period. The following table summarizes revenue by geography included in the Company’s condensed consolidated statements of income for the three and nine months ended September 30, 2021 and 2020 (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 U.S. $ 448,792 $ 437,381 $ 1,361,525 $ 1,309,979 International 411,541 355,464 1,194,340 1,041,883 Total revenue $ 860,333 $ 792,845 $ 2,555,865 $ 2,351,862 Leveraging its Intelligent Edge Platform and a global sales organization, the Company offers solutions that are developed and maintained through two groups: the Security Technology Group and the Edge Technology Group. The Security Technology Group includes solutions that are designed to protect business online by keeping infrastructure, websites, applications and users safe, while the Edge Technology Group includes solutions that are designed to enable business online, including media delivery, web performance and edge computing solutions. The following table summarizes revenue by product group included in the Company’s condensed consolidated statements of income for the three and nine months ended September 30, 2021 and 2020 (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 Security Technology Group $ 334,649 $ 265,869 $ 969,996 $ 765,485 Edge Technology Group 525,684 526,976 1,585,869 1,586,377 Total revenue $ 860,333 $ 792,845 $ 2,555,865 $ 2,351,862 Most security and content delivery services represent obligations that are satisfied over time as the customer simultaneously receives and consumes the services provided by the Company. Accordingly, the majority of the Company's revenue is recognized over time, generally ratably over the term of the arrangement due to consistent monthly traffic commitments that expire each period. A small percentage of the Company's services are satisfied at a point in time, such as one-time professional services contracts, integration services and most license sales where the primary obligation is delivery of the license at the start of the term. In these cases, revenue is recognized at a point in time of delivery or satisfaction of the performance obligation. During the nine months ended September 30, 2021 and 2020, the Company recognized $72.2 million and $66.0 million of revenue that was included in deferred revenue as of December 31, 2020 and 2019, respectively. As of September 30, 2021, the aggregate amount of remaining performance obligations from contracts with customers was $2.8 billion. The Company expects to recognize approximately 70% of its remaining performance obligations as revenue over the next 12 months, with the remainder recognized thereafter. Remaining performance obligations represent the amount of the transaction price under contracts with customers that are attributable to performance obligations that are unsatisfied or partially satisfied at the reporting date. This consists of future committed revenue for monthly, quarterly or annual periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced in prior periods for which the related performance obligations have not been satisfied. It excludes estimates of variable consideration such as usage-based contracts with no committed contract as well as anticipated renewed contracts. Revenue recognized during each of the nine months ended September 30, 2021 and 2020, related to performance obligations satisfied in previous periods was not material. |
Acquired Intangible Assets and
Acquired Intangible Assets and Goodwill | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Acquired Intangible Assets and Goodwill | Acquired Intangible Assets and Goodwill Acquired intangible assets that are subject to amortization consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Gross Accumulated Amortization Net Gross Accumulated Net Completed technology $ 179,254 $ (123,963) $ 55,291 $ 172,346 $ (111,435) $ 60,911 Customer-related intangible assets 355,189 (208,798) 146,391 358,032 (186,733) 171,299 Non-compete agreements 353 (170) 183 373 (77) 296 Trademarks and trade names 7,647 (5,916) 1,731 7,658 (5,440) 2,218 Acquired license rights 490 (490) — 490 (490) — Total $ 542,933 $ (339,337) $ 203,596 $ 538,899 $ (304,175) $ 234,724 Aggregate expense related to amortization of acquired intangible assets for the three and nine months ended September 30, 2021 was $12.0 million and $35.4 million, respectively. Aggregate expense related to amortization of acquired intangible assets for the three and nine months ended September 30, 2020 was $10.3 million and $31.2 million, respectively. Based on the Company’s acquired intangible assets as of September 30, 2021, aggregate expense related to amortization of acquired intangible assets is expected to be $12.1 million for the remainder of 2021, and $44.3 million, $36.9 million, $29.2 million and $23.7 million for 2022, 2023, 2024 and 2025, respectively. The change in the carrying amount of goodwill for the nine months ended September 30, 2021 was as follows (in thousands): Balance as of January 1, 2021 $ 1,674,371 Acquisition of Inverse, Inc. 10,741 Measurement period adjustments related to acquisitions completed in prior years (267) Foreign currency translation (4,349) Balance as of September 30, 2021 $ 1,680,496 The Company tests goodwill for impairment at least annually. Through the date the interim condensed consolidated financial statements were issued, no triggering events had occurred that would indicate a potential impairment exists. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Guardicore In September 2021, the Company announced its intention to acquire Guardicore Ltd. ("Guardicore"), for approximately $600.0 million, net of cash acquired and subject to post-closing adjustments. Guardicore's micro-segmentation solution is designed to limit user access to only those applications that are authorized to communicate with each other, thereby limiting the spread of malware and protecting the flow of enterprise data across the network. The acquisition is intended to enhance the Company's security portfolio with the addition of Guardicore's micro-segmentation technology. The acquisition closed in October 2021. Due to the limited time since the acquisition date, and the size and complexity of the transaction, the accounting for the business combination is not yet complete as of the filing of these condensed consolidated financial statements. The Company is not able to provide the allocation of consideration paid to the assets acquired or liabilities assumed, but it is expected that the transaction will result in an increase to the Company’s acquired intangible assets and goodwill. Inverse In February 2021, the Company acquired Inverse, Inc. ("Inverse"), for $17.1 million. Inverse provides a data repository and algorithms capable of identifying device types accessing the internet. The acquisition enhances the Company's enterprise security capabilities. The Company allocated $10.7 million of the cost of the acquisition to goodwill and $7.6 million to a technology-related identifiable intangible asset. The acquired goodwill and intangible assets are partially offset by acquired |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Convertible Notes – Due 2027 In August 2019, the Company issued $1,150.0 million in par value of convertible senior notes due 2027 (the "2027 Notes"). The 2027 Notes are senior unsecured obligations of the Company, bear regular interest of 0.375%, payable semi-annually in arrears on March 1 and September 1 of each year and mature on September 1, 2027, unless repurchased or converted in accordance with their terms prior to maturity. At their option, holders may convert their 2027 Notes prior to the close of business on the business day immediately preceding May 1, 2027, only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ended December 31, 2019 (and only during such calendar quarter), if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five five • upon the occurrence of specified corporate events. On or after May 1, 2027, holders may convert all or any portion of their 2027 Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date. Upon conversion, the Company, at its election, may pay or deliver to holders cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock. The initial conversion rate is 8.6073 shares of the Company's common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $116.18 per share, subject to adjustments in certain events, and represents a potential conversion into 9.9 million shares. In accounting for the issuance of the 2027 Notes, the Company separated the 2027 Notes into liability and equity components. The carrying cost of the liability component was calculated by measuring the fair value of a similar debt obligation that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 2027 Notes. The difference between the principal amount of the 2027 Notes and the proceeds allocated to the liability component (“debt discount”) is amortized to interest expense using the effective interest method over the term of the 2027 Notes. The equity component is recorded in additional paid-in capital in the condensed consolidated balance sheet and will not be remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the issuance of the 2027 Notes, the Company allocated the total transaction costs incurred to the liability and equity components based on their relative values. Transaction costs attributable to the liability component are being amortized to interest expense over the term of the 2027 Notes, and transaction costs attributable to the equity component are netted against the equity component of the 2027 Notes in stockholders’ equity. The 2027 Notes consisted of the following components as of September 30, 2021 and December 31, 2020 (in thousands): September 30, December 31, Liability component: Principal $ 1,150,000 $ 1,150,000 Less: debt discount and issuance costs, net of amortization (175,935) (196,359) Net carrying amount $ 974,065 $ 953,641 Equity component: $ 220,529 $ 220,529 The estimated fair value of the 2027 Notes at September 30, 2021 and December 31, 2020 was $1,271.8 million and $1,277.8 million, respectively. The fair value was determined based on the quoted price of the 2027 Notes in an inactive market on the last trading day of the reporting period and has been classified as Level 2 within the fair value hierarchy. Based on the closing price of the Company's common stock of $104.59 on September 30, 2021, the value of the 2027 Notes if converted to common stock was less than the principal amount of $1,150.0 million. The Company used $100.0 million of the proceeds from the offering to repurchase shares of its common stock, concurrent with the issuance of the 2027 Notes. The repurchase was made in accordance with a share repurchase program previously approved by the board of directors. Additionally, $127.1 million of the proceeds was used for the net cost of the convertible note hedge and warrant transactions. The remaining net proceeds are intended to be used for working capital, share repurchases, potential acquisitions and strategic transactions and other corporate purposes. Note Hedge To minimize the impact of potential dilution upon conversion of the 2027 Notes, the Company entered into convertible note hedge transactions with respect to its common stock in August 2019. The Company paid $312.2 million for the note hedge transactions. The note hedge transactions cover approximately 9.9 million shares of the Company’s common stock at a strike price that corresponds to the initial conversion price of the 2027 Notes, also subject to adjustment, and are exercisable upon conversion of the 2027 Notes. The Company determined that the note hedge meets the definition of a derivative and is classified in stockholders’ equity, as the note hedge is indexed to the Company's common stock, and the Company, at its election, may pay or deliver to holders cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock. The Company recorded the purchase of the hedge as a decrease to additional paid-in capital. The Company does not recognize subsequent changes in fair value of the note hedge in its condensed consolidated financial statements. Warrants Separately, in August 2019, the Company entered into warrant transactions, whereby the Company sold warrants to acquire, subject to anti-dilution adjustments, up to 9.9 million shares of the Company’s common stock at a strike price of approximately $178.74 per share. The Company received aggregate proceeds of $185.2 million from the sale of the warrants. The convertible note hedge and warrant transactions will generally have the effect of increasing the conversion price of the 2027 Notes to approximately $178.74 per share. The Company determined that the warrants meet the definition of a derivative and are classified in stockholders’ equity, as the warrants are indexed to the Company's common stock, and the Company, at its election, may pay or deliver to holders cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock. The Company recorded the proceeds from issuance of the warrants as an increase to additional paid-in capital. The Company does not recognize subsequent changes in fair value of the warrants in its condensed consolidated financial statements. Convertible Notes – Due 2025 In May 2018, the Company issued $1,150.0 million in par value of convertible senior notes due 2025 (the "2025 Notes"). The 2025 Notes are senior unsecured obligations of the Company, bear regular interest of 0.125%, payable semi-annually on May 1 and November 1 of each year, and mature on May 1, 2025, unless repurchased or converted prior to maturity. At their option, holders may convert their 2025 Notes prior to the close of business on the business day immediately preceding January 1, 2025, only under the following circumstances: • during any calendar quarter commencing after the calendar quarter ended June 30, 2018 (and only during such calendar quarter), if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; • during the five five • upon the occurrence of specified corporate events. On or after January 1, 2025, holders may convert all or any portion of their 2025 Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, regardless of the foregoing circumstances. Upon conversion, the Company, at its election, may pay or deliver to holders cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock. The initial conversion rate is 10.5150 shares of the Company's common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $95.10 per share, subject to adjustments in certain events, and represents a potential conversion into 12.1 million shares. In accounting for the issuance of the 2025 Notes, the Company separated the 2025 Notes into liability and equity components. The carrying cost of the liability component was calculated by measuring the fair value of a similar debt obligation that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 2025 Notes. The difference between the principal amount of the 2025 Notes and the proceeds allocated to the liability component (“debt discount”) is amortized to interest expense using the effective interest method over the term of the 2025 Notes. The equity component is recorded in additional paid-in capital in the condensed consolidated balance sheet and will not be remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the issuance of the 2025 Notes, the Company allocated the total transaction costs incurred to the liability and equity components based on their relative values. Transaction costs attributable to the liability component are being amortized to interest expense over the term of the 2025 Notes, and transaction costs attributable to the equity component are netted against the equity component of the 2025 Notes in stockholders’ equity. The 2025 Notes consisted of the following components as of September 30, 2021 and December 31, 2020 (in thousands): September 30, December 31, Liability component: Principal $ 1,150,000 $ 1,150,000 Less: debt discount and issuance costs, net of amortization (165,507) (196,934) Net carrying amount $ 984,493 $ 953,066 Equity component: $ 285,225 $ 285,225 The estimated fair value of the 2025 Notes at September 30, 2021 and December 31, 2020 was $1,396.1 million and $1,422.8 million, respectively. The fair value was determined based on the quoted price of the 2025 Notes in an inactive market on the last trading day of the reporting period and has been classified as Level 2 w ithin the fair value hierarchy. Based on the closing price of the Company's common stock of $104.59 on September 30, 2021, the value of the 2025 Notes if converted to common stock was more than the principal amount of $1,150.0 million. The Company used $46.2 million of the proceeds from the offering to repurchase shares of its common stock, concurrent with the issuance of the 2025 Notes. The repurchase was made in accordance with a share repurchase program previously approved by the board of directors. Additionally, $141.8 million of the proceeds was used for the net cost of convertible note hedge and warrant transactions. The Company also used a portion of the net proceeds to repay at maturity the $690.0 million in par value of convertible senior notes due in 2019. Note Hedge To minimize the impact of potential dilution upon conversion of the 2025 Notes, the Company entered into convertible note hedge transactions with respect to its common stock in May 2018. The Company paid $261.7 million for the note hedge transactions. The note hedge transactions cover approximately 12.1 million shares of the Company’s common stock at a strike price that corresponds to the initial conversion price of the 2025 Notes, also subject to adjustment, and are exercisable upon conversion of the 2025 Notes. The Company determined that the note hedge meets the definition of a derivative and is classified in stockholders’ equity, as the note hedge is indexed to the Company's common stock, and the Company, at its election, may pay or deliver to holders cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock. The Company recorded the purchase of the hedge as a decrease to additional paid-in capital. The Company does not recognize subsequent changes in fair value of the note hedge in its condensed consolidated financial statements. Warrants Separately, in May 2018, the Company entered into warrant transactions, whereby the Company sold warrants to acquire, subject to anti-dilution adjustments, up to 12.1 million shares of the Company’s common stock at a strike price of approximately $149.18 per share. The Company received aggregate proceeds of $119.9 million from the sale of the warrants. The convertible note hedge and warrant transactions will generally have the effect of increasing the conversion price of the 2025 Notes to approximately $149.18 per share. The Company determined that the warrants meet the definition of a derivative and are classified in stockholders’ equity, as the warrants are indexed to the Company's common stock, and the Company, at its election, may pay or deliver to holders cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock. The Company recorded the proceeds from issuance of the warrants as an increase to additional paid-in capital. The Company does not recognize subsequent changes in fair value of the warrants in its condensed consolidated financial statements. Revolving Credit Facility In May 2018, the Company entered into a $500.0 million five-year, revolving credit agreement (the “Credit Agreement”). Borrowings under the Credit Agreement may be used to finance working capital needs and for general corporate purposes. The Credit Agreement provides for an initial $500.0 million in revolving loans. Under specified circumstances, the facility can be increased to up to $1.0 billion in aggregate principal amount. The Credit Agreement expires in May 2023. Borrowings under the Credit Agreement bear interest, at the Company's option, at a base rate plus a spread of 0.00% to 0.25% or an adjusted LIBOR rate plus a spread of 0.875% to 1.25%, in each case with such spread being determined based on the Company's consolidated leverage ratio specified in the Credit Agreement. Regardless of what amounts, if any, are outstanding under the Credit Agreement, the Company is also obligated to pay an ongoing commitment fee on undrawn amounts at a rate of 0.075% to 0.15%, with such rate being based on the Company's consolidated leverage ratio specified in the Credit Agreement. The Credit Agreement contains customary representations and warranties, affirmative and negative covenants and events of default. Principal covenants include a maximum consolidated leverage ratio and a minimum consolidated interest coverage ratio. There were no outstanding borrowings under the Credit Agreement as of September 30, 2021. Interest Expense The 2027 Notes bear interest at a fixed rate of 0.375%. The interest is payable semi-annually on March 1 and September 1 of each year. The 2027 Notes have an effective interest rate of 3.1% attributable to the conversion feature. The 2025 Notes bear interest at a fixed rate of 0.125%. The interest is payable semi-annually on May 1 and November 1 of each year. The 2025 Notes have an effective interest rate of 4.26% attributable to the conversion feature. The Company is also obligated to pay ongoing commitment fees under the terms of the Credit Agreement. The following table sets forth total interest expense included in the condensed consolidated statements of income for the three and nine months ended September 30, 2021 and 2020 (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 Amortization of debt discount and issuance costs $ 17,504 $ 16,866 $ 52,029 $ 50,130 Coupon interest payable on 2025 Notes 358 360 1,076 1,078 Coupon interest payable on 2027 Notes 1,078 1,078 3,234 3,234 Revolving credit facility contractual interest expense 141 139 421 409 Capitalization of interest expense (937) (1,119) (2,745) (3,073) Total interest expense $ 18,144 $ 17,324 $ 54,015 $ 51,778 |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During the fourth quarter of 2020, management committed to an action to restructure certain parts of the Company to better position itself to become more agile in delivering its solutions. As a result, certain headcount reductions were necessary and certain capitalized internal-use software charges were realized for software not yet placed into service that will not be completed and implemented due to this action. The Company incurred expenses of $31.6 million as part of this action, of which $0.4 million and $7.9 million was incurred during the three and nine months ended September 30, 2021, respectively. The Company does not expect to incur material additional charges related to this action. During the fourth quarter of 2019, management committed to an action to restructure certain parts of the Company to focus on investments with the potential to accelerate revenue growth. As a result, certain headcount reductions were necessary, certain capitalized internal-use software charges were realized for software not yet placed into service that will not be completed and implemented due to this action and an impairment of a right-of-use asset was recognized related to exiting a facility no longer needed. The Company has incurred restructuring charges of $20.6 million as part of this action, of which an insignificant amount was incurred during the three months ended September 30, 2020 and a charge of $10.4 million was incurred during the nine months ended September 30, 2020. During the nine months ended September 30, 2021, a benefit of $2.8 million was recorded to reflect the release by the landlord of the remaining lease obligation for the exited facility. No additional charges related to this action are expected. The Company also recognizes restructuring charges for redundant employees, facilities and contracts associated with completed acquisitions. The following table summarizes the activity of the Company's accrual for employee severance and related benefits for all restructuring actions during the nine months ended September 30, 2021 (in thousands): Balance as of January 1, 2021 $ 22,051 Costs incurred 5,194 Cash disbursements (23,856) Translation adjustments and other (300) Balance as of September 30, 2021 $ 3,089 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Share Repurchase Program Effective November 2018, the board of directors of the Company authorized a $1.1 billion share repurchase program through December 2021. In October 2021, the board of directors authorized a new $1.8 billion share repurchase program, effective January 1, 2022 through December 31, 2024. As of September 30, 2021, the Company had $320.6 million remaining on its prior authorization which is expiring on December 31, 2021. The Company's goals for the share repurchase programs are to offset the dilution created by its employee equity compensation programs over time and provide the flexibility to return capital to shareholders as business and market conditions warrant, while still preserving its ability to pursue other strategic opportunities. During the three and nine months ended September 30, 2021, the Company repurchased 0.8 million and 2.3 million shares of its common stock, respectively, for $96.8 million and $251.3 million, respectively. Stock-Based Compensation The following table summarizes stock-based compensation included in the Company’s condensed consolidated statements of income for the three and nine months ended September 30, 2021 and 2020 (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 Cost of revenue $ 6,738 $ 6,384 $ 20,708 $ 18,374 Research and development 16,329 12,722 50,635 36,336 Sales and marketing 10,973 16,809 34,998 48,555 General and administrative 14,978 14,302 47,463 43,636 Total stock-based compensation 49,018 50,217 153,804 146,901 Provision for income taxes (11,683) (15,604) (40,245) (45,063) Total stock-based compensation, net of income taxes $ 37,335 $ 34,613 $ 113,559 $ 101,838 In addition to the amounts of stock-based compensation reported in the table above, the Company’s condensed consolidated statements of income for the three and nine months ended September 30, 2021 include stock-based compensation reflected as a component of amortization of capitalized internal-use software of $7.9 million and $24.5 million, respectively, before taxes, and for the three and nine months ended September 30, 2020 include stock-based compensation reflected as a component of amortization of capitalized internal-use software of $7.1 million and $21.9 million, respectively, before taxes. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table summarizes the changes in accumulated other comprehensive loss, net of tax, which is reported as a component of stockholders' equity, for the nine months ended September 30, 2021 (in thousands): Foreign Currency Translation Net Unrealized Gains (Losses) on Investments Total Balance as of January 1, 2021 $ (33,295) $ 13,094 $ (20,201) Other comprehensive loss (28,444) (5,081) (33,525) Balance as of September 30, 2021 $ (61,739) $ 8,013 $ (53,726) There were no amounts reclassified from accumulated other comprehensive loss to net income for the nine months ended September 30, 2021. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Incremental Costs to Obtain a Contract with a Customer The following table summarizes the deferred costs associated with obtaining customer contracts, specifically commission and incentive payments, as of September 30, 2021 and December 31, 2020 (in thousands): September 30, December 31, Deferred costs included in prepaid and other current assets $ 42,299 $ 54,516 Deferred costs included in other assets 27,551 23,200 Total deferred costs $ 69,850 $ 77,716 The following table summarizes additional information related to incremental costs to obtain a contract with a customer for each of the three and nine month periods ended September 30, 2021 and 2020 (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 Amortization expense related to deferred costs $ 14,901 $ 14,816 $ 43,304 $ 45,007 Incremental costs capitalized $ 13,164 $ 16,550 $ 36,957 $ 39,925 Amortization expense related to deferred costs is primarily included in sales and marketing expense in the condensed consolidated statements of income. The Company sells its solutions through a sales force located both domestically and abroad. Revenue derived from operations outside of the U.S. is determined based on the country in which the sale originated. Other than the U.S., no single country accounted for 10% or more of the Company’s total revenue for any reported period. The following table summarizes revenue by geography included in the Company’s condensed consolidated statements of income for the three and nine months ended September 30, 2021 and 2020 (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 U.S. $ 448,792 $ 437,381 $ 1,361,525 $ 1,309,979 International 411,541 355,464 1,194,340 1,041,883 Total revenue $ 860,333 $ 792,845 $ 2,555,865 $ 2,351,862 Leveraging its Intelligent Edge Platform and a global sales organization, the Company offers solutions that are developed and maintained through two groups: the Security Technology Group and the Edge Technology Group. The Security Technology Group includes solutions that are designed to protect business online by keeping infrastructure, websites, applications and users safe, while the Edge Technology Group includes solutions that are designed to enable business online, including media delivery, web performance and edge computing solutions. The following table summarizes revenue by product group included in the Company’s condensed consolidated statements of income for the three and nine months ended September 30, 2021 and 2020 (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 Security Technology Group $ 334,649 $ 265,869 $ 969,996 $ 765,485 Edge Technology Group 525,684 526,976 1,585,869 1,586,377 Total revenue $ 860,333 $ 792,845 $ 2,555,865 $ 2,351,862 Most security and content delivery services represent obligations that are satisfied over time as the customer simultaneously receives and consumes the services provided by the Company. Accordingly, the majority of the Company's revenue is recognized over time, generally ratably over the term of the arrangement due to consistent monthly traffic commitments that expire each period. A small percentage of the Company's services are satisfied at a point in time, such as one-time professional services contracts, integration services and most license sales where the primary obligation is delivery of the license at the start of the term. In these cases, revenue is recognized at a point in time of delivery or satisfaction of the performance obligation. During the nine months ended September 30, 2021 and 2020, the Company recognized $72.2 million and $66.0 million of revenue that was included in deferred revenue as of December 31, 2020 and 2019, respectively. As of September 30, 2021, the aggregate amount of remaining performance obligations from contracts with customers was $2.8 billion. The Company expects to recognize approximately 70% of its remaining performance obligations as revenue over the next 12 months, with the remainder recognized thereafter. Remaining performance obligations represent the amount of the transaction price under contracts with customers that are attributable to performance obligations that are unsatisfied or partially satisfied at the reporting date. This consists of future committed revenue for monthly, quarterly or annual periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced in prior periods for which the related performance obligations have not been satisfied. It excludes estimates of variable consideration such as usage-based contracts with no committed contract as well as anticipated renewed contracts. Revenue recognized during each of the nine months ended September 30, 2021 and 2020, related to performance obligations satisfied in previous periods was not material. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective income tax rate is based on estimated income for the year, the estimated composition of the income in different jurisdictions and discrete adjustments, if any, in the applicable quarterly periods. Potential discrete adjustments include tax charges or benefits related to stock-based compensation, changes in tax legislation, settlements of tax audits or assessments, uncertain tax positions and acquisitions, among other items. In the second quarter of 2018, the Company filed an appeal with the Massachusetts Appellate Tax Board (“MATB”) contesting adverse audit findings related to certain tax benefits and exemptions. In July 2020, the MATB ruled in the Company’s favor; however, the decision is eligible for appeal by the Massachusetts Department of Revenue. The Company has determined that it is more-likely-than-not that it will ultimately prevail in the event of any such appeal. Accordingly, no reserve has been recorded related to these controversies. The Company has, however, estimated that an adverse ruling could result in a gross income tax charge of approximately $48.0 million, which may be partially offset by certain state tax credits of $30.0 million, which the Company does not currently benefit from as a result of the Company's valuation allowance assessment. The Company’s effective income tax rate was 8.0% and 8.6% for the nine months ended September 30, 2021 and 2020, respectively. For the nine months ended September 30, 2021, the effective income tax rate was lower than the federal statutory tax rate due to foreign income taxed at lower rates, the excess tax benefit related to stock-based compensation, the revaluation of certain foreign income tax liabilities due to foreign exchange rate fluctuations and the benefit of U.S. federal, state and foreign research and development credits. These amounts were partially offset by non-deductible stock-based compensation and state taxes. For the nine months ended September 30, 2020, the effective income tax rate was lower than the federal statutory tax rate due to foreign income taxed at lower rates, the excess tax benefit related to stock-based compensation and the benefit of U.S. federal, state and foreign research and development credits. These amounts were partially offset by non-deductible stock-based compensation and state taxes. |
Net Income per Share
Net Income per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share Reconciliation [Abstract] | |
Net Income per Share | Net Income per ShareBasic net income per share is computed using the weighted average number of common shares outstanding during the applicable period. Diluted net income per share is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of potential common stock. Potential common stock consists of shares issuable pursuant to stock options, restricted stock units ("RSUs"), deferred stock units ("DSUs"), convertible senior notes and warrants issued by the Company. The dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method. The following table sets forth the components used in the computation of basic and diluted net income per share for the three and nine months ended September 30, 2021 and 2020 (in thousands, except per share data): For the Three Months For the Nine Months 2021 2020 2021 2020 Numerator: Net income $ 178,916 $ 158,623 $ 491,108 $ 443,684 Denominator: Shares used for basic net income per share 162,767 162,757 162,967 162,387 Effect of dilutive securities: Stock options 3 6 19 27 RSUs and DSUs 1,520 2,024 1,515 1,781 Convertible senior notes 2,028 1,732 1,589 795 Warrants related to issuance of convertible senior notes — — — — Shares used for diluted net income per share 166,318 166,519 166,090 164,990 Basic net income per share $ 1.10 $ 0.97 $ 3.01 $ 2.73 Diluted net income per share $ 1.08 $ 0.95 $ 2.96 $ 2.69 For the three and nine months ended September 30, 2021 and 2020, certain potential outstanding common shares issuable in respect of stock options, service-based RSUs, convertible notes and warrants were excluded from the computation of diluted net income per share because the effect of including these items was anti-dilutive. Additionally, certain performance-based RSUs were excluded from the computation of diluted net income per share because the underlying performance conditions for such RSUs had not been met as of these dates. The number of potentially outstanding common shares excluded from the computation of diluted net income per share for the three and nine months ended September 30, 2021 and 2020 are as follows (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 Service-based RSUs 149 116 811 751 Market- and performance-based RSUs 1,189 1,383 1,248 1,418 Convertible senior notes 9,898 9,898 9,898 13,929 Warrants related to issuance of convertible senior notes 21,991 21,991 21,991 21,991 Total shares excluded from computation 33,227 33,388 33,948 38,089 |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The accompanying interim condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. These financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Certain information and footnote disclosures normally included in the Company’s annual audited consolidated financial statements and accompanying notes have been condensed in, or omitted from, these interim financial statements. Accordingly, the unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission on February 26, 2021. The December 31, 2020 consolidated balance sheet included herein is derived from the Company's audited consolidated financial statements. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results of operations that may be expected for any future periods. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, that are necessary for a fair statement of the results of all interim periods reported herein. |
Recent Accounting Pronouncements | Convertible Instruments and Contracts in an Entity's Own Equity In August 2020, the Financial Accounting Standards Board ("FASB") issued guidance that is expected to reduce complexity and improve comparability of financial reporting associated with accounting f or convertible instruments and contracts in an entity’s own equity. The Company will adopt this guidance on January 1, 2022 on a modified retrospective basis. Upon adoption, the convertible senior notes included on the Company's consolidated balance sheet will more closely reflect the principal amounts. Initially, the Company separated its convertible senior notes into a liability and equity component. The equity portion will be eliminated, such that convertible senior notes will increase and additional paid-in capital will decrease on the consolidated balance sheet. With the elimination of the debt discount created by the equity component, amortization of the debt discount will also be eliminated, which will have the impact of decreasing interest expense and increasing net income. Refer to Note 7 to the condensed consolidated financial statements for additional information regarding the initial accounting for the notes and balances as of September 30, 2021. The new guidance also impacts the accounting for diluted net income per share, which the Company is continuing to evaluate, along with finalizing all impacts of adopting this new standard on its consolidated financial statements. |
Business Combinations Policy | Business Combinations In October 2021, the FASB issued guidance which requires contract assets and contract liabilities from contracts with customers that are acquired in a business combination to be recognized and measured as if the acquirer had originated the original contract. Previously, contract assets and contract liabilities were measured at fair value. The Company plans to early adopt this guidance in the fourth quarter of 2021, which will require retrospective adoption to all business combinations completed on or after January 1, 2021, and prospectively to all business combinations occurring after adoption. The adoption will not have a material impact to the Company's results of operations in 2021. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Marketable Securities | The following is a summary of available-for-sale marketable securities held as of September 30, 2021 and December 31, 2020 (in thousands): Gross Unrealized Classification on Balance Sheet Amortized Cost Gains Losses Aggregate Short-Term Long-Term As of September 30, 2021 Commercial paper $ 79,744 $ 2 $ (9) $ 79,737 $ 79,737 $ — Corporate bonds 1,097,056 3,100 (378) 1,099,778 507,238 592,540 U.S. government agency obligations 285,903 44 (122) 285,825 64,951 220,874 $ 1,462,703 $ 3,146 $ (509) $ 1,465,340 $ 651,926 $ 813,414 As of December 31, 2020 Commercial paper $ 46,931 $ 13 $ (8) $ 46,936 $ 46,936 $ — Corporate bonds 1,628,462 9,482 (262) 1,637,682 607,403 1,030,279 Municipal securities 3,495 — (6) 3,489 — 3,489 U.S. government agency obligations 435,653 329 (63) 435,919 89,951 345,968 $ 2,114,541 $ 9,824 $ (339) $ 2,124,026 $ 744,290 $ 1,379,736 |
Schedule of Fair Value Measurement | The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets as of September 30, 2021 and December 31, 2020 (in thousands): Total Fair Value Fair Value Measurements at Level 1 Level 2 As of September 30, 2021 Cash Equivalents and Marketable Securities: Money market funds $ 1,784 $ 1,784 $ — Commercial paper 121,537 — 121,537 Corporate bonds 1,099,778 — 1,099,778 U.S. government agency obligations 302,525 — 302,525 Mutual funds 22,429 22,429 — $ 1,548,053 $ 24,213 $ 1,523,840 As of December 31, 2020 Cash Equivalents and Marketable Securities: Money market funds $ 74,417 $ 74,417 $ — Commercial paper 75,785 — 75,785 Corporate bonds 1,637,682 — 1,637,682 Municipal securities 3,489 — 3,489 U.S. government agency obligations 435,919 — 435,919 Mutual funds 19,932 19,932 — $ 2,247,224 $ 94,349 $ 2,152,875 |
Schedule of Contractual Maturities of Marketable Securities and Other Investment Related Assets | Contractual maturities of the Company’s available-for-sale marketable securities held as of September 30, 2021 and December 31, 2020 were as follows (in thousands): September 30, December 31, Due in 1 year or less $ 651,926 $ 744,290 Due after 1 year through 5 years 813,414 1,379,736 $ 1,465,340 $ 2,124,026 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Schedule of Accounts Receivable | Net accounts receivable consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands): September 30, December 31, Trade accounts receivable $ 479,267 $ 473,474 Unbilled accounts receivable 183,093 188,400 Gross accounts receivable 662,360 661,874 Allowances for current expected credit losses and other reserves (2,268) (1,822) Accounts receivable, net $ 660,092 $ 660,052 |
Summary of Allowance for Credit Loss Activity | The following table summarizes the activity of the Company's allowance for current expected credit losses and other reserves during the nine months ended September 30, 2021 and 2020 (in thousands): September 30, September 30, Beginning balance $ 1,822 $ 1,880 Charges to income from operations 3,510 10,354 Collections from customers previously reserved and other (3,064) (8,538) Ending balance $ 2,268 $ 3,696 |
Incremental Costs to Obtain a_2
Incremental Costs to Obtain a Contract with a Customer (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of deferred costs associated with obtaining customer contracts | The following table summarizes the deferred costs associated with obtaining customer contracts, specifically commission and incentive payments, as of September 30, 2021 and December 31, 2020 (in thousands): September 30, December 31, Deferred costs included in prepaid and other current assets $ 42,299 $ 54,516 Deferred costs included in other assets 27,551 23,200 Total deferred costs $ 69,850 $ 77,716 The following table summarizes additional information related to incremental costs to obtain a contract with a customer for each of the three and nine month periods ended September 30, 2021 and 2020 (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 Amortization expense related to deferred costs $ 14,901 $ 14,816 $ 43,304 $ 45,007 Incremental costs capitalized $ 13,164 $ 16,550 $ 36,957 $ 39,925 |
Acquired Intangible Assets an_2
Acquired Intangible Assets and Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Intangible Assets | Acquired intangible assets that are subject to amortization consisted of the following as of September 30, 2021 and December 31, 2020 (in thousands): September 30, 2021 December 31, 2020 Gross Accumulated Amortization Net Gross Accumulated Net Completed technology $ 179,254 $ (123,963) $ 55,291 $ 172,346 $ (111,435) $ 60,911 Customer-related intangible assets 355,189 (208,798) 146,391 358,032 (186,733) 171,299 Non-compete agreements 353 (170) 183 373 (77) 296 Trademarks and trade names 7,647 (5,916) 1,731 7,658 (5,440) 2,218 Acquired license rights 490 (490) — 490 (490) — Total $ 542,933 $ (339,337) $ 203,596 $ 538,899 $ (304,175) $ 234,724 |
Schedule of Goodwill | The change in the carrying amount of goodwill for the nine months ended September 30, 2021 was as follows (in thousands): Balance as of January 1, 2021 $ 1,674,371 Acquisition of Inverse, Inc. 10,741 Measurement period adjustments related to acquisitions completed in prior years (267) Foreign currency translation (4,349) Balance as of September 30, 2021 $ 1,680,496 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Convertible Senior Notes | The 2027 Notes consisted of the following components as of September 30, 2021 and December 31, 2020 (in thousands): September 30, December 31, Liability component: Principal $ 1,150,000 $ 1,150,000 Less: debt discount and issuance costs, net of amortization (175,935) (196,359) Net carrying amount $ 974,065 $ 953,641 Equity component: $ 220,529 $ 220,529 The 2025 Notes consisted of the following components as of September 30, 2021 and December 31, 2020 (in thousands): September 30, December 31, Liability component: Principal $ 1,150,000 $ 1,150,000 Less: debt discount and issuance costs, net of amortization (165,507) (196,934) Net carrying amount $ 984,493 $ 953,066 Equity component: $ 285,225 $ 285,225 |
Schedule of Interest Expense | The following table sets forth total interest expense included in the condensed consolidated statements of income for the three and nine months ended September 30, 2021 and 2020 (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 Amortization of debt discount and issuance costs $ 17,504 $ 16,866 $ 52,029 $ 50,130 Coupon interest payable on 2025 Notes 358 360 1,076 1,078 Coupon interest payable on 2027 Notes 1,078 1,078 3,234 3,234 Revolving credit facility contractual interest expense 141 139 421 409 Capitalization of interest expense (937) (1,119) (2,745) (3,073) Total interest expense $ 18,144 $ 17,324 $ 54,015 $ 51,778 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Accrual Activity | The following table summarizes the activity of the Company's accrual for employee severance and related benefits for all restructuring actions during the nine months ended September 30, 2021 (in thousands): Balance as of January 1, 2021 $ 22,051 Costs incurred 5,194 Cash disbursements (23,856) Translation adjustments and other (300) Balance as of September 30, 2021 $ 3,089 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock-Based Compensation Expense | The following table summarizes stock-based compensation included in the Company’s condensed consolidated statements of income for the three and nine months ended September 30, 2021 and 2020 (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 Cost of revenue $ 6,738 $ 6,384 $ 20,708 $ 18,374 Research and development 16,329 12,722 50,635 36,336 Sales and marketing 10,973 16,809 34,998 48,555 General and administrative 14,978 14,302 47,463 43,636 Total stock-based compensation 49,018 50,217 153,804 146,901 Provision for income taxes (11,683) (15,604) (40,245) (45,063) Total stock-based compensation, net of income taxes $ 37,335 $ 34,613 $ 113,559 $ 101,838 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in accumulated other comprehensive loss, net of tax, which is reported as a component of stockholders' equity, for the nine months ended September 30, 2021 (in thousands): Foreign Currency Translation Net Unrealized Gains (Losses) on Investments Total Balance as of January 1, 2021 $ (33,295) $ 13,094 $ (20,201) Other comprehensive loss (28,444) (5,081) (33,525) Balance as of September 30, 2021 $ (61,739) $ 8,013 $ (53,726) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table summarizes revenue by geography included in the Company’s condensed consolidated statements of income for the three and nine months ended September 30, 2021 and 2020 (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 U.S. $ 448,792 $ 437,381 $ 1,361,525 $ 1,309,979 International 411,541 355,464 1,194,340 1,041,883 Total revenue $ 860,333 $ 792,845 $ 2,555,865 $ 2,351,862 For the Three Months For the Nine Months 2021 2020 2021 2020 Security Technology Group $ 334,649 $ 265,869 $ 969,996 $ 765,485 Edge Technology Group 525,684 526,976 1,585,869 1,586,377 Total revenue $ 860,333 $ 792,845 $ 2,555,865 $ 2,351,862 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share Reconciliation [Abstract] | |
Schedule of Components Used in Diluted and Basic Income Per Common Share | The following table sets forth the components used in the computation of basic and diluted net income per share for the three and nine months ended September 30, 2021 and 2020 (in thousands, except per share data): For the Three Months For the Nine Months 2021 2020 2021 2020 Numerator: Net income $ 178,916 $ 158,623 $ 491,108 $ 443,684 Denominator: Shares used for basic net income per share 162,767 162,757 162,967 162,387 Effect of dilutive securities: Stock options 3 6 19 27 RSUs and DSUs 1,520 2,024 1,515 1,781 Convertible senior notes 2,028 1,732 1,589 795 Warrants related to issuance of convertible senior notes — — — — Shares used for diluted net income per share 166,318 166,519 166,090 164,990 Basic net income per share $ 1.10 $ 0.97 $ 3.01 $ 2.73 Diluted net income per share $ 1.08 $ 0.95 $ 2.96 $ 2.69 |
Schedule of Shares Excluded from Computation of Diluted Net Income Per Share | The number of potentially outstanding common shares excluded from the computation of diluted net income per share for the three and nine months ended September 30, 2021 and 2020 are as follows (in thousands): For the Three Months For the Nine Months 2021 2020 2021 2020 Service-based RSUs 149 116 811 751 Market- and performance-based RSUs 1,189 1,383 1,248 1,418 Convertible senior notes 9,898 9,898 9,898 13,929 Warrants related to issuance of convertible senior notes 21,991 21,991 21,991 21,991 Total shares excluded from computation 33,227 33,388 33,948 38,089 |
Nature of Business and Basis _3
Nature of Business and Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2021serversegmentcountry | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of servers (more than) | server | 325,000 |
Number of countries in which servers are located (more than) | country | 130 |
Number of industry segments | segment | 1 |
Fair Value Measurements - Marke
Fair Value Measurements - Marketable Securities (Details) $ in Thousands | Sep. 30, 2021USD ($)corporateBonds | Dec. 31, 2020USD ($) |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 1,462,703 | $ 2,114,541 |
Gross Unrealized Gains | 3,146 | 9,824 |
Gross Unrealized Losses | (509) | (339) |
Aggregate Fair Value | 1,465,340 | 2,124,026 |
Short-Term Marketable Securities | 651,926 | 744,290 |
Long-Term Marketable Securities | 813,414 | 1,379,736 |
Commercial paper | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 79,744 | 46,931 |
Gross Unrealized Gains | 2 | 13 |
Gross Unrealized Losses | (9) | (8) |
Aggregate Fair Value | 79,737 | 46,936 |
Short-Term Marketable Securities | 79,737 | 46,936 |
Long-Term Marketable Securities | 0 | 0 |
Corporate bonds | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 1,097,056 | 1,628,462 |
Gross Unrealized Gains | 3,100 | 9,482 |
Gross Unrealized Losses | (378) | (262) |
Aggregate Fair Value | 1,099,778 | 1,637,682 |
Short-Term Marketable Securities | 507,238 | 607,403 |
Long-Term Marketable Securities | $ 592,540 | 1,030,279 |
Number of corporate bond investments classified as available-for-sale marketable securities in an unrealized loss position | corporateBonds | 1 | |
Available-for-sale marketable securities, continuous unrealized loss position for more than 12 months | $ 1,500 | |
U.S. government agency obligations | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 285,903 | 435,653 |
Gross Unrealized Gains | 44 | 329 |
Gross Unrealized Losses | (122) | (63) |
Aggregate Fair Value | 285,825 | 435,919 |
Short-Term Marketable Securities | 64,951 | 89,951 |
Long-Term Marketable Securities | $ 220,874 | 345,968 |
Municipal securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 3,495 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (6) | |
Aggregate Fair Value | 3,489 | |
Short-Term Marketable Securities | 0 | |
Long-Term Marketable Securities | $ 3,489 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurement (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | $ 1,465,340 | $ 2,124,026 |
Cash equivalents and marketable securities | 1,548,053 | 2,247,224 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 1,784 | 74,417 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities and cash equivalents | 121,537 | 75,785 |
Aggregate Fair Value | 79,737 | 46,936 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 1,099,778 | 1,637,682 |
U.S. government agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities and cash equivalents | 302,525 | 435,919 |
Aggregate Fair Value | 285,825 | 435,919 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 22,429 | 19,932 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 3,489 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents and marketable securities | 24,213 | 94,349 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 1,784 | 74,417 |
Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities and cash equivalents | 0 | 0 |
Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 0 | 0 |
Level 1 | U.S. government agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities and cash equivalents | 0 | 0 |
Level 1 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 22,429 | 19,932 |
Level 1 | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents and marketable securities | 1,523,840 | 2,152,875 |
Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities and cash equivalents | 121,537 | 75,785 |
Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | 1,099,778 | 1,637,682 |
Level 2 | U.S. government agency obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale securities and cash equivalents | 302,525 | 435,919 |
Level 2 | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | $ 0 | 0 |
Level 2 | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate Fair Value | $ 3,489 |
Fair Value Measurements - Contr
Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value Disclosures [Abstract] | ||
Due in 1 year or less | $ 651,926 | $ 744,290 |
Due after 1 year through 5 years | 813,414 | 1,379,736 |
Aggregate Fair Value | $ 1,465,340 | $ 2,124,026 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | $ 662,360 | $ 661,874 |
Allowances for current expected credit losses and other reserves | (2,268) | (1,822) |
Accounts receivable, net | 660,092 | 660,052 |
Unbilled accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | 183,093 | 188,400 |
Trade accounts receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Gross accounts receivable | $ 479,267 | $ 473,474 |
Accounts Receivables - Allowanc
Accounts Receivables - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning balance | $ 1,822 | $ 1,880 |
Charges to income from operations | 3,510 | 10,354 |
Collections from customers previously reserved and other | (3,064) | (8,538) |
Ending balance | $ 2,268 | $ 3,696 |
Incremental Costs to Obtain a_3
Incremental Costs to Obtain a Contract with a Customer (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Capitalized Contract Cost [Line Items] | |||||
Incremental costs capitalized | $ 13,164 | $ 16,550 | $ 36,957 | $ 39,925 | |
Commission and incentive payments | |||||
Capitalized Contract Cost [Line Items] | |||||
Total deferred costs | 69,850 | 69,850 | $ 77,716 | ||
Commission and incentive payments | Deferred costs included in prepaid and other current assets | |||||
Capitalized Contract Cost [Line Items] | |||||
Total deferred costs | 42,299 | 42,299 | 54,516 | ||
Commission and incentive payments | Deferred costs included in other assets | |||||
Capitalized Contract Cost [Line Items] | |||||
Total deferred costs | 27,551 | 27,551 | $ 23,200 | ||
Deferred commissions | |||||
Capitalized Contract Cost [Line Items] | |||||
Amortization expense related to deferred costs | $ 14,901 | $ 14,816 | $ 43,304 | $ 45,007 |
Acquired Intangible Assets an_3
Acquired Intangible Assets and Goodwill - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 542,933 | $ 538,899 |
Accumulated Amortization | (339,337) | (304,175) |
Net Carrying Amount | 203,596 | 234,724 |
Completed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 179,254 | 172,346 |
Accumulated Amortization | (123,963) | (111,435) |
Net Carrying Amount | 55,291 | 60,911 |
Customer-related intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 355,189 | 358,032 |
Accumulated Amortization | (208,798) | (186,733) |
Net Carrying Amount | 146,391 | 171,299 |
Non-compete agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 353 | 373 |
Accumulated Amortization | (170) | (77) |
Net Carrying Amount | 183 | 296 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,647 | 7,658 |
Accumulated Amortization | (5,916) | (5,440) |
Net Carrying Amount | 1,731 | 2,218 |
Acquired license rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 490 | 490 |
Accumulated Amortization | (490) | (490) |
Net Carrying Amount | $ 0 | $ 0 |
Acquired Intangible Assets an_4
Acquired Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Thousands | 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 of acquired intangible assets | $ 11,959 | $ 10,340 | $ 35,446 | $ 31,155 |
Future amortization expense to be recognized in remainder of 2021 | 12,100 | 12,100 | ||
Future amortization expense 2022 | 44,300 | 44,300 | ||
Future amortization expense 2023 | 36,900 | 36,900 | ||
Future amortization expense 2024 | 29,200 | 29,200 | ||
Future amortization expense 2025 | $ 23,700 | $ 23,700 |
Acquired Intangible Assets an_5
Acquired Intangible Assets and Goodwill - Schedule of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Schedule of Goodwill [Roll Forward] | |
Balance as of January 1, 2021 | $ 1,674,371 |
Acquisition of Inverse, Inc. | 10,741 |
Measurement period adjustments related to acquisitions completed in prior years | (267) |
Foreign currency translation | (4,349) |
Balance as of September 30, 2021 | $ 1,680,496 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Oct. 31, 2021 | Feb. 28, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Goodwill | $ 1,680,496 | $ 1,674,371 | ||
Subsequent Event | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Consideration transferred for business combination | $ 600,000 | |||
Inverse, Inc. | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Cash paid to acquire business | $ 17,100 | |||
Goodwill | 10,700 | |||
Intangible assets acquired | 7,600 | |||
Goodwill expected to be tax deductible | $ 10,700 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ / shares in Units, shares in Millions | 1 Months Ended | 9 Months Ended | ||||
Aug. 31, 2019USD ($)d$ / sharesshares | May 31, 2018USD ($)d$ / sharesshares | Sep. 30, 2021USD ($)$ / shares | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Feb. 28, 2014USD ($) | |
Debt Instrument [Line Items] | ||||||
Repurchases of common stock | $ 251,257,000 | $ 121,078,000 | ||||
Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 500,000,000 | |||||
Debt term | 5 years | |||||
Maximum borrowing capacity under specific conditions | $ 1,000,000,000 | |||||
Outstanding borrowings | 0 | |||||
Credit Agreement | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee | 0.075% | |||||
Credit Agreement | Minimum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.00% | |||||
Credit Agreement | Minimum | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.875% | |||||
Credit Agreement | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee | 0.15% | |||||
Credit Agreement | Maximum | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.25% | |||||
Credit Agreement | Maximum | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.25% | |||||
2027 Notes | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt issued | $ 1,150,000,000 | 1,150,000,000 | $ 1,150,000,000 | |||
Interest rate | 0.375% | |||||
Threshold trading days exceeding price | d | 20 | |||||
Threshold consecutive trading days exceeding price | d | 30 | |||||
Threshold greater than percentage of stock price trigger | 130.00% | |||||
Threshold trading days not exceeding price | 5 days | |||||
Threshold less than percentage of stock price trigger | 98.00% | |||||
Conversion price (in dollars per share) | $ / shares | $ 116.18 | |||||
Potential conversion shares of convertible debt (in shares) | shares | 9.9 | |||||
Fair value of convertible senior notes | $ 1,271,800,000 | 1,277,800,000 | ||||
Closing price of common stock (in dollars per share) | $ / shares | $ 104.59 | |||||
Repurchases of common stock | $ 100,000,000 | |||||
Payments for purchase of convertible note hedge and warrant transactions | 127,100,000 | |||||
Payments for note hedge transactions | $ 312,200,000 | |||||
Warrants outstanding (in shares) | shares | 9.9 | |||||
Warrant strike price (in dollars per share) | $ / shares | $ 178.74 | |||||
Proceeds from sale of warrants | $ 185,200,000 | |||||
Effective interest rate | 3.10% | |||||
Conversion rate | 0.0086073 | |||||
2025 Notes | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt issued | $ 1,150,000,000 | $ 1,150,000,000 | 1,150,000,000 | |||
Interest rate | 0.125% | |||||
Threshold trading days exceeding price | d | 20 | |||||
Threshold consecutive trading days exceeding price | d | 30 | |||||
Threshold greater than percentage of stock price trigger | 130.00% | |||||
Threshold trading days not exceeding price | 5 days | |||||
Threshold less than percentage of stock price trigger | 98.00% | |||||
Conversion price (in dollars per share) | $ / shares | $ 95.10 | |||||
Potential conversion shares of convertible debt (in shares) | shares | 12.1 | |||||
Fair value of convertible senior notes | $ 1,396,100,000 | $ 1,422,800,000 | ||||
Closing price of common stock (in dollars per share) | $ / shares | $ 104.59 | |||||
Repurchases of common stock | $ 46,200,000 | |||||
Payments for purchase of convertible note hedge and warrant transactions | 141,800,000 | |||||
Payments for note hedge transactions | $ 261,700,000 | |||||
Warrants outstanding (in shares) | shares | 12.1 | |||||
Warrant strike price (in dollars per share) | $ / shares | $ 149.18 | |||||
Proceeds from sale of warrants | $ 119,900,000 | |||||
Threshold consecutive trading days not exceeding price | 5 days | |||||
Effective interest rate | 4.26% | |||||
Conversion rate | 0.010515 | |||||
2019 Notes | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt issued | $ 690,000,000 |
Debt - Schedule of Convertible
Debt - Schedule of Convertible Senior Notes (Details) - Convertible Debt - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | Aug. 31, 2019 | May 31, 2018 |
2027 Notes | ||||
Liability component: | ||||
Principal | $ 1,150,000,000 | $ 1,150,000,000 | $ 1,150,000,000 | |
Less: debt discount and issuance costs, net of amortization | (175,935,000) | (196,359,000) | ||
Net carrying amount | 974,065,000 | 953,641,000 | ||
Equity component: | 220,529,000 | 220,529,000 | ||
2025 Notes | ||||
Liability component: | ||||
Principal | 1,150,000,000 | 1,150,000,000 | $ 1,150,000,000 | |
Less: debt discount and issuance costs, net of amortization | (165,507,000) | (196,934,000) | ||
Net carrying amount | 984,493,000 | 953,066,000 | ||
Equity component: | $ 285,225,000 | $ 285,225,000 |
Debt - Schedule of Interest Exp
Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||||
Amortization of debt discount and issuance costs | $ 17,504 | $ 16,866 | $ 52,029 | $ 50,130 |
Capitalization of interest expense | (937) | (1,119) | (2,745) | (3,073) |
Total interest expense | 18,144 | 17,324 | 54,015 | 51,778 |
Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Interest on debt instruments | 141 | 139 | 421 | 409 |
Convertible Debt | 2025 Notes | ||||
Debt Instrument [Line Items] | ||||
Interest on debt instruments | 358 | 360 | 1,076 | 1,078 |
Convertible Debt | 2027 Notes | ||||
Debt Instrument [Line Items] | ||||
Interest on debt instruments | $ 1,078 | $ 1,078 | $ 3,234 | $ 3,234 |
Restructuring (Details)
Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | 24 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges incurred | $ (565) | $ (21) | $ (5,567) | $ (10,439) | ||
Restructuring Reserve [Roll Forward] | ||||||
Balance as of January 1, 2021 | 22,051 | |||||
Costs incurred | 5,194 | |||||
Cash disbursements | (23,856) | |||||
Translation adjustments and other | (300) | |||||
Balance as of September 30, 2021 | 3,089 | 3,089 | $ 3,089 | $ 3,089 | ||
2020 Restructuring Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges incurred | (400) | (7,900) | $ (31,600) | |||
2019 Restructuring Plan | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges incurred | $ 2,800 | $ 2,800 | $ (10,400) | $ (20,600) |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Oct. 31, 2021 | Nov. 30, 2018 | |
Class of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 1,100,000 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 320,600 | $ 320,600 | ||||
Repurchases of common stock | 251,257 | $ 121,078 | ||||
Amortization expense from capitalized stock-based compensation | $ 7,900 | $ 7,100 | $ 24,500 | $ 21,900 | ||
Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 1,800,000 | |||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Shares repurchased during period (in shares) | 0.8 | 2.3 | ||||
Repurchases of common stock | $ 96,800 | $ 251,300 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 49,018 | $ 50,217 | $ 153,804 | $ 146,901 |
Provision for income taxes | (11,683) | (15,604) | (40,245) | (45,063) |
Total stock-based compensation, net of income taxes | 37,335 | 34,613 | 113,559 | 101,838 |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 6,738 | 6,384 | 20,708 | 18,374 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 16,329 | 12,722 | 50,635 | 36,336 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | 10,973 | 16,809 | 34,998 | 48,555 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total stock-based compensation | $ 14,978 | $ 14,302 | $ 47,463 | $ 43,636 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | $ 4,476,657 | $ 3,904,295 | $ 4,251,296 | $ 3,657,958 |
Other comprehensive loss | (22,169) | 11,453 | (33,525) | (710) |
Ending balance | 4,582,445 | 4,107,617 | 4,582,445 | 4,107,617 |
Total | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (31,557) | (57,307) | (20,201) | (45,144) |
Ending balance | (53,726) | $ (45,854) | (53,726) | $ (45,854) |
Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | (33,295) | |||
Other comprehensive loss | (28,444) | |||
Ending balance | (61,739) | (61,739) | ||
Net Unrealized Gains (Losses) on Investments | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Beginning balance | 13,094 | |||
Other comprehensive loss | (5,081) | |||
Ending balance | $ 8,013 | $ 8,013 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($)division | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)division | Sep. 30, 2020USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 860,333 | $ 792,845 | $ 2,555,865 | $ 2,351,862 |
Number of groups | division | 2 | 2 | ||
Security Technology Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 334,649 | 265,869 | $ 969,996 | 765,485 |
Edge Technology Group | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 525,684 | 526,976 | 1,585,869 | 1,586,377 |
U.S. | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 448,792 | 437,381 | 1,361,525 | 1,309,979 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 411,541 | $ 355,464 | $ 1,194,340 | $ 1,041,883 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Performance Obligation (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized | $ 72.2 | $ 66 |
Remaining performance obligation | $ 2,800 | |
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 obligations, percentage | 70.00% | |
Remaining performance obligation, expected timing | 12 months |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||
Estimated income tax charge | $ 48 | |
Tax credit | $ 30 | |
Effective income tax rate | 8.00% | 8.60% |
Net Income per Share - Schedule
Net Income per Share - Schedule of Components Used in Diluted and Basic Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net income | $ 178,916 | $ 158,623 | $ 491,108 | $ 443,684 |
Denominator: | ||||
Shares used for basic net income per share | 162,767 | 162,757 | 162,967 | 162,387 |
Effect of dilutive securities: | ||||
Stock options (in shares) | 3 | 6 | 19 | 27 |
RSUs and DSU (in shares) | 1,520 | 2,024 | 1,515 | 1,781 |
Convertible senior notes (in shares) | 2,028 | 1,732 | 1,589 | 795 |
Warrants related to issuance of convertible senior notes | 0 | 0 | 0 | 0 |
Shares used for diluted net income per share | 166,318 | 166,519 | 166,090 | 164,990 |
Basic net income per share (in dollars per share) | $ 1.10 | $ 0.97 | $ 3.01 | $ 2.73 |
Diluted net income per share (in dollars per share) | $ 1.08 | $ 0.95 | $ 2.96 | $ 2.69 |
Net Income per Share - Schedu_2
Net Income per Share - Schedule of Shares Excluded from Computation of Diluted EPS (Details) - shares shares in Thousands | 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] | ||||
Anti-dilutive securities (in shares) | 33,227 | 33,388 | 33,948 | 38,089 |
Service-based RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities (in shares) | 149 | 116 | 811 | 751 |
Market- and performance-based RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities (in shares) | 1,189 | 1,383 | 1,248 | 1,418 |
Convertible senior notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities (in shares) | 9,898 | 9,898 | 9,898 | 13,929 |
Warrants related to issuance of convertible senior notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities (in shares) | 21,991 | 21,991 | 21,991 | 21,991 |