Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ROKU | |
Entity Registrant Name | Roku, Inc. | |
Entity Current Reporting Status | Yes | |
Entity Central Index Key | 0001428439 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 001-38211 | |
Entity Tax Identification Number | 26-2087865 | |
Entity Address, Address Line One | 150 Winchester Circle | |
Entity Address, City or Town | Los Gatos | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95032 | |
City Area Code | 408 | |
Local Phone Number | 556-9040 | |
Entity Incorporation, State or Country Code | DE | |
Title of 12(b) Security | Class A Common Stock, $0.0001 par value | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 90,968,113 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 26,547,304 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 385,999 | $ 155,564 |
Short-term investments | 1,496 | 42,146 |
Restricted cash | 868 | 0 |
Accounts receivable, net of allowances | 196,044 | 183,078 |
Inventories | 73,531 | 35,585 |
Prepaid expenses and other current assets | 28,908 | 15,374 |
Deferred cost of revenue, current | 45 | 1,188 |
Total current assets | 686,891 | 432,935 |
Property and equipment, net | 61,878 | 25,264 |
Operating lease right-of-use assets | 142,110 | |
Intangible assets, net | 1,061 | 1,477 |
Goodwill | 1,382 | 1,382 |
Other non-current assets | 3,983 | 3,939 |
Total Assets | 897,305 | 464,997 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 241,519 | 148,562 |
Deferred revenue, current | 35,912 | 45,442 |
Total current liabilities | 277,431 | 194,004 |
Deferred revenue, non-current | 12,932 | 19,594 |
Operating lease liability, non-current | 142,134 | |
Other long-term liabilities | 1,031 | 6,748 |
Total Liabilities | 433,528 | 220,346 |
Stockholders’ Equity: | ||
Common stock, $0.0001 par value | 12 | 11 |
Additional paid-in capital | 761,883 | 498,553 |
Accumulated other comprehensive loss | (2) | (17) |
Accumulated deficit | (298,116) | (253,896) |
Total stockholders’ equity | 463,777 | 244,651 |
Total Liabilities and Stockholders’ Equity | $ 897,305 | $ 464,997 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Net Revenue: | ||||
Total net revenue | $ 260,928 | $ 173,381 | $ 717,691 | $ 466,767 |
Cost of Revenue: | ||||
Total cost of revenue | 142,451 | 94,388 | 384,114 | 246,910 |
Gross Profit: | ||||
Total gross profit | 118,477 | 78,993 | 333,577 | 219,857 |
Operating Expenses: | ||||
Research and development | 68,487 | 45,370 | 186,219 | 119,692 |
Sales and marketing | 46,666 | 25,603 | 117,041 | 68,180 |
General and administrative | 29,873 | 19,769 | 77,992 | 50,768 |
Total operating expenses | 145,026 | 90,742 | 381,252 | 238,640 |
Loss from Operations | (26,549) | (11,749) | (47,675) | (18,783) |
Other Income, Net: | ||||
Interest expense | (767) | (112) | (1,436) | (220) |
Other income, net | 2,065 | 2,162 | 4,272 | 2,971 |
Total other income, net | 1,298 | 2,050 | 2,836 | 2,751 |
Loss Before Income Taxes | (25,251) | (9,699) | (44,839) | (16,032) |
Income tax benefit | (96) | (172) | (619) | (397) |
Net Loss | $ (25,155) | $ (9,527) | $ (44,220) | $ (15,635) |
Net loss per share —basic and diluted | $ (0.22) | $ (0.09) | $ (0.39) | $ (0.15) |
Weighted-average shares used in computing net loss per share —basic and diluted | 116,681 | 106,884 | 114,064 | 103,035 |
Player | Goods | ||||
Net Revenue: | ||||
Total net revenue | $ 81,606 | $ 73,331 | $ 236,534 | $ 201,299 |
Cost of Revenue: | ||||
Total cost of revenue | 75,376 | 64,884 | 218,695 | 168,412 |
Gross Profit: | ||||
Total gross profit | 6,230 | 8,447 | 17,839 | 32,887 |
Platform | Services | ||||
Net Revenue: | ||||
Total net revenue | 179,322 | 100,050 | 481,157 | 265,468 |
Cost of Revenue: | ||||
Total cost of revenue | 67,075 | 29,504 | 165,419 | 78,498 |
Gross Profit: | ||||
Total gross profit | $ 112,247 | $ 70,546 | $ 315,738 | $ 186,970 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Loss | $ (25,155) | $ (9,527) | $ (44,220) | $ (15,635) |
Other comprehensive income, net of tax: | ||||
Unrealized gain (loss) on short-term investments, net of tax | (6) | (7) | 15 | (7) |
Comprehensive Net Loss | $ (25,161) | $ (9,534) | $ (44,205) | $ (15,642) |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income / (Loss) | Accumulated Deficit |
Balance at Dec. 31, 2017 | $ 152,279 | $ 10 | $ 436,278 | $ (671) | $ (283,338) | |
Balance, Shares at Dec. 31, 2017 | 99,157 | |||||
Vesting of early exercised stock options | 213 | 213 | ||||
Issuance of common stock pursuant to equity incentive plans, net of taxes | 25,490 | $ 1 | 25,558 | (69) | ||
Issuance of common stock pursuant to equity incentive plans, net of taxes, Shares | 9,501 | |||||
Issuance of common stock pursuant to exercise of common stock warrants, net, Shares | 141 | |||||
Stock-based compensation expense | 21,237 | 21,237 | ||||
Unrealized gain (loss) on short-term investments | (7) | $ (7) | ||||
Cumulative effect change in accounting principle | Accounting Standards Update 2016-16 | (40) | (40) | ||||
Cumulative effect change in accounting principle | Accounting Standards Update 2014-09 | 38,339 | 38,339 | ||||
Net loss | (15,635) | (15,635) | ||||
Balance at Sep. 30, 2018 | 221,876 | $ 11 | 483,286 | (740) | (7) | (260,674) |
Balance, Shares at Sep. 30, 2018 | 108,799 | |||||
Balance at Jun. 30, 2018 | 211,765 | $ 11 | 463,624 | (723) | (251,147) | |
Balance, Shares at Jun. 30, 2018 | 105,061 | |||||
Vesting of early exercised stock options | 40 | 40 | ||||
Issuance of common stock pursuant to equity incentive plans, net of taxes | 8,106 | 8,123 | (17) | |||
Issuance of common stock pursuant to equity incentive plans, net of taxes, Shares | 3,738 | |||||
Stock-based compensation expense | 11,499 | 11,499 | ||||
Unrealized gain (loss) on short-term investments | (7) | (7) | ||||
Net loss | (9,527) | (9,527) | ||||
Balance at Sep. 30, 2018 | 221,876 | $ 11 | 483,286 | (740) | (7) | (260,674) |
Balance, Shares at Sep. 30, 2018 | 108,799 | |||||
Balance at Dec. 31, 2018 | 244,651 | $ 11 | 499,224 | (671) | (17) | (253,896) |
Balance, Shares at Dec. 31, 2018 | 109,770 | |||||
Vesting of early exercised stock options | 52 | 52 | ||||
Share repurchases, Shares | (2) | |||||
Issuance of common stock pursuant to equity incentive plans, net of taxes | 24,766 | $ 1 | 24,765 | |||
Issuance of common stock pursuant to equity incentive plans, net of taxes, Shares | 5,281 | |||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs | 179,360 | 179,360 | ||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs, Shares | 2,389 | |||||
Stock-based compensation expense | 59,153 | 59,153 | ||||
Unrealized gain (loss) on short-term investments | 15 | 15 | ||||
Net loss | (44,220) | (44,220) | ||||
Balance at Sep. 30, 2019 | 463,777 | $ 12 | 762,554 | (671) | (2) | (298,116) |
Balance, Shares at Sep. 30, 2019 | 117,438 | |||||
Balance at Jun. 30, 2019 | 460,682 | $ 12 | 734,298 | (671) | 4 | (272,961) |
Balance, Shares at Jun. 30, 2019 | 116,159 | |||||
Vesting of early exercised stock options | 20 | 20 | ||||
Issuance of common stock pursuant to equity incentive plans, net of taxes | 5,618 | 5,618 | ||||
Issuance of common stock pursuant to equity incentive plans, net of taxes, Shares | 1,279 | |||||
Stock-based compensation expense | 22,618 | 22,618 | ||||
Unrealized gain (loss) on short-term investments | (6) | (6) | ||||
Net loss | (25,155) | (25,155) | ||||
Balance at Sep. 30, 2019 | $ 463,777 | $ 12 | $ 762,554 | $ (671) | $ (2) | $ (298,116) |
Balance, Shares at Sep. 30, 2019 | 117,438 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) (Parenthetical) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
At the market offering issuance cost | $ 3.6 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (44,220) | $ (15,635) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 9,170 | 5,824 |
Stock-based compensation expense | 59,153 | 21,237 |
Provision for doubtful accounts | 114 | 755 |
Non-cash interest expense | 471 | 216 |
Loss from exit of facilities | 450 | |
Loss on disposals of property and equipment | 8 | |
Amortization of premiums on short-term investments | (280) | (164) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (13,080) | (1,369) |
Inventories | (37,946) | (36,171) |
Prepaid expenses and other current assets | (15,270) | 1,357 |
Operating lease right-of-use assets | 13,603 | |
Deferred cost of revenue | 1,143 | 1,945 |
Other noncurrent assets | (44) | (1,098) |
Accounts payable and accrued liabilities | 69,448 | 16,943 |
Operating lease liabilities | 856 | |
Other long-term liabilities | (2,639) | (541) |
Deferred revenue | (16,192) | (3,054) |
Net cash provided by (used in) operating activities | 24,287 | (9,297) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (38,054) | (13,363) |
Purchases of short-term investments | (12,365) | (44,900) |
Sales/maturities of short-term investments | 53,310 | 3,000 |
Net cash provided by (used in) investing activities | 2,891 | (55,263) |
Cash flows from financing activities: | ||
Proceeds from equity issued under at-the-market program, net of offering costs | 179,360 | |
Proceeds from equity issued under incentive plans | 24,765 | 25,480 |
Holdback payment for a prior business acquisition | (500) | |
Net cash provided by financing activities | 204,125 | 24,980 |
Net Increase (Decrease) in cash, cash equivalents and restricted cash | 231,303 | (39,580) |
Cash, cash equivalents and restricted cash—Beginning of period | 155,564 | 177,250 |
Cash, cash equivalents and restricted cash—End of period | 386,867 | 137,670 |
Cash, cash equivalents and restricted cash at end of period: | ||
Cash and cash equivalents | 385,999 | 137,670 |
Restricted cash | 868 | |
Cash, cash equivalents and restricted cash—End of period | 386,867 | 137,670 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 2,215 | 455 |
Cash paid for income taxes | 683 | 404 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Unpaid portion of property and equipment purchases | $ 8,931 | $ 1,828 |
The Company
The Company | 9 Months Ended |
Sep. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
The Company | 1. THE COMPANY Organization and Description of Business Roku, Inc. (the “Company” or “Roku”), was formed in October 2002 as Roku LLC under the laws of the State of Delaware. On February 1, 2008, Roku LLC was converted into Roku, Inc., a Delaware corporation. The Company’s TV streaming platform allows users to easily discover and access a wide variety of movies, TV episodes, live programming and more. The Company operates in two reportable segments and generates revenue through the sale of streaming players, advertising, content distribution, and subscription and transaction revenue sharing, as well as through licensing arrangements with TV brands. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on March 1, 2019. The condensed consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated financial statements as of that date but does not include all of the information and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The interim financial information is unaudited, but reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the operating results to be expected for the full year or any future periods. There have been no material changes in the Company’s significant accounting policies other than the adoption of Accounting Standards Update (“ASU”) ASU 2016-02 , Leases (Topic 842), Use of Judgements and Estimates The preparation of the Company’s condensed consolidated financial statements in accordance with U.S. GAAP requires management to make certain estimates, judgements, and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Significant items subject to such estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, variable consideration, determining the stand-alone selling prices of performance obligations, gross versus net revenue reporting, evaluation of customer versus vendor relationships, and other obligations such as sales return reserves and customer incentive programs; the valuation of inventory, the valuation of deferred income tax assets, the recognition and disclosure of contingent liabilities and stock-based compensation. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results may differ from the Company’s estimates and assumptions. Principles of Consolidation The condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Comprehensive Income (Loss) Comprehensive income (loss) includes unrealized gains (loss) on the Company’s short-term investments for the three and nine months ended September 30, 2019 and September 30, 2018. Concentrations Customers accounting for 10% or more of the Company’s net revenue were as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Customer B * 10 % 10 % * Customer C 13 % 16 % 13 % 16 % Customers accounting for 10% or more of the Company’s accounts receivable were as follows: As of September 30, 2019 December 31, 2018 Customer D 11 % 11 % * Less than 10% Restricted Cash Restricted cash is comprised of cash collateral for outstanding letters of credit related to operating leases of office facilities. As of September 30, 2019, the Company had restricted cash of $0.9 million. The Company did not have any restricted cash as of December 31, 2018. Content Licensing The Company acquires rights to video content for viewing on The Roku Channel. Consideration for these content rights can include a fixed fee and/or a share of advertising revenue. The Company capitalizes content licensing fees and records a corresponding liability when the license period has begun, the cost of the licensed content is determinable, and the content is accepted and available for streaming. The Company amortizes licensed content assets into “Cost of Revenue, Platform” over the contractual window of availability . As of September 30, 2019, . Recently In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, Leases (Topic 842), On January 1, 2019, the Company adopted the guidance in ASC 842 using the optional transition method and recorded right-of-use (“ROU”) assets and lease liabilities on its condensed consolidated balance sheet. As a result, periods prior to 2019 were not adjusted. On the adoption date, the Company recognized ROU assets totaling $39.9 million, lease liabilities totaling $42.1 million and reclassification of deferred and prepaid rents of $2.2 million to ROU assets on its condensed consolidated balance sheet. There was Recently Issued Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Topic 350), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU 2018-13, Fair Value Measurements (Topic 820), Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . This standard removes, modifies, and adds certain disclosure requirements for fair value measurements. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company is currently in the process of evaluating the effects of the new guidance but does not expect the impact from this standard to be material. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 3. REVENUE Revenue Recognition The Company enters into contracts that may include various product and service offerings, which are generally capable of being distinct and are accounted for as separate performance obligations. Revenue is recognized upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or service Shipping charges billed to customers are included in revenue and the related shipping costs are included in cost of revenue. Revenue is recorded net of taxes collected or accrued. Sales taxes are recorded as current liabilities until remitted to the relevant government authority. The Company does not have any capitalized costs associated with contract acquisition because most direct contract acquisition costs relate to contracts that are recognized over a period of one year or less. Arrangements with Multiple Performance Obligations The Company’s contracts may contain multiple distinct performance obligations. The computed transaction price of each contract is allocated to each performance obligation based on a relative stand-alone selling price (“SSP”). For performance obligations routinely sold separately, the SSP is determined by evaluating such stand-alone sales. For those performance obligations that are not routinely sold separately, the Company determines SSP based on a market assessment approach, or on an expected cost-plus margin approach. Nature of Products and Services Platform Segment: The Company’s platform segment generates revenue from advertising sales, subscription and transaction revenue shares, the sale of branded channel buttons on remote controls and licensing arrangements with TV brands and service operators. Player Segment: The Company sells the majority of its players through retail distribution channels in the U.S., including brick and mortar and online retailers, as well as through the Company’s website. The Company’s player revenue includes allowances for returns and sales incentives in the estimated transaction price. These estimates are based on historical experience and anticipated performance. Revenue Disaggregation The Company’s disaggregated revenue is represented by the two reportable segments discussed in Note 14. The disaggregation is based on the evaluations that are regularly performed by the chief operating decision maker (“CODM”) for purposes of allocating resources and evaluating financial performance. The Company’s CODM is its Chief Executive Officer. Contract Balances Contract balances include the following (in thousands): As of September 30, 2019 December 31, 2018 Accounts receivable, net $ 196,044 $ 183,078 Contract assets (included in Prepaid expenses and other current assets) 4,787 753 Deferred revenue, current 35,912 45,442 Deferred revenue, non-current 12,932 19,594 Total deferred revenue $ 48,844 $ 65,036 Accounts receivable are recorded at the amount invoiced, net of an allowance for doubtful accounts, sales returns, and sales incentives. Payment terms can vary by customer and contract. The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets are created when invoicing occurs subsequent to revenue recognition. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional. Contract liabilities are included in deferred revenue and reflect consideration invoiced prior to the completion of performance obligations and revenue recognition. Contract assets increased by approximately $4.0 million during the nine months ended September 30, 2019 primarily due to an increase in the growth of platform revenue combined with the timing of billing which falls into a subsequent period. Deferred revenue decreased by approximately $16.2 million during the nine months ended September 30, 2019 primarily due to revenue recognized of $5.0 million pursuant to customer acceptance of a milestone, and the remaining revenue recognized primarily relates to the timing of fulfillment of performance obligations and the overall growth in the business. During the three and nine months ended September 30, 2019, the Company recognized revenue of approximately $6.3 million and $44.2 million, respectively, from the amounts deferred as of December 31, 2018. During the three and nine months ended September 30, 2018, the Company recognized revenue of approximately $5.3 million and $34.9 million, respectively, from the amounts deferred as of January 1, 2018. Revenue Allocated to Future Performance Obligations Revenue allocated to remaining performance obligations represents estimated contracted revenue that has not yet been recognized which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Estimated contracted revenue was $146.8 m illion as of September 30, 2019 of which we expect to recognize approximately 62 % over the next 12 months and the remainder thereafter. |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 4. Balance sheet components Accounts Receivable, Net of allowances —Accounts receivable, net of allowances, consisted of the following (in thousands): September 30, 2019 December 31, 2018 Gross accounts receivable $ 209,149 $ 204,975 Allowance for sales returns (4,438 ) (7,335 ) Allowance for sales incentives (8,378 ) (13,750 ) Other allowances (289 ) (812 ) Total allowances (13,105 ) (21,897 ) Total Accounts Receivable—net of allowances $ 196,044 $ 183,078 Allowance for Sales Returns —Allowance for sales returns consisted of the following activities (in thousands): September 30, 2019 December 31, 2018 Balance, beginning of period $ (7,335 ) $ (6,907 ) Charged to revenue (9,519 ) (17,396 ) Utilization of sales return reserve 12,416 16,968 Balance, end of period $ (4,438 ) $ (7,335 ) Allowance for Sales Incentives —Allowance for sales incentives consisted of the following activities (in thousands): September 30, 2019 December 31, 2018 Balance, beginning of period $ (13,750 ) $ (10,442 ) Charged to revenue (26,947 ) (50,958 ) Utilization of sales incentive reserve 32,319 47,650 Balance, end of period $ (8,378 ) $ (13,750 ) Property and Equipment, Net —Property and equipment, net consisted of the following (in thousands): September 30, 2019 December 31, 2018 Computers and equipment $ 21,642 $ 16,056 Leasehold improvements 54,294 18,396 Website and internal-use software 6,457 6,423 Office equipment and furniture 7,864 4,069 Total property and equipment 90,257 44,944 Accumulated depreciation and amortization (28,379 ) (19,680 ) Property and Equipment, net $ 61,878 $ 25,264 Depreciation and amortization expense, for property and equipment assets, for the three months ended September 30, 2019 and 2018 was $3.4 million and $2.1 Accounts Payable and Accrued Liabilities —Accounts payable and accrued liabilities consisted of the following (in thousands): September 30, 2019 December 31, 2018 Accounts payable $ 77,416 $ 56,576 Payments due to content publishers 55,096 32,463 Accrued cost of revenue 33,889 22,830 Operating lease liability, current 16,600 — Accrued royalty expense 11,239 7,939 Accrued payroll and related expenses 11,074 12,217 Accrued inventory 10,497 6,008 Accrued capital expenditures 5,973 — Marketing, retail and merchandising costs 5,777 — Accrued legal fees 4,298 — Customer prepayments 2,376 3,124 Taxes and related liabilities 1,160 1,314 Other accrued expenses 6,124 6,091 Total Accounts Payable and Accrued Liabilities $ 241,519 $ 148,562 Deferred Revenue —Deferred revenue consisted of the following (in thousands): September 30, 2019 December 31, 2018 Platform, current $ 17,541 $ 28,569 Player, current 18,371 16,873 Total deferred revenue, current 35,912 45,442 Platform, non-current 6,221 12,783 Player, non-current 6,711 6,811 Total deferred revenue, non-current 12,932 19,594 Total Deferred Revenue $ 48,844 $ 65,036 |
Short-Term Investments
Short-Term Investments | 9 Months Ended |
Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Short-Term Investments | 5. SHORT-TERM INVESTMENTS The following is a summary of the Company’s short-term investments (in thousands): September 30, 2019 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Corporate bonds and commercial paper $ 1,498 $ — $ (2 ) $ 1,496 $ 37,168 $ — $ (17 ) $ 37,151 U.S. government securities — — — — 4,995 — — 4,995 Total Short-Term Investments $ 1,498 $ — $ (2 ) $ 1,496 $ 42,163 $ — $ (17 ) $ 42,146 Tax effects related to unrealized losses are not material for all periods presented. The following table summarizes the maturities of the Company’s short-term investments by contractual maturity (in thousands): September 30, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Less than 1 year $ 1,498 $ 1,496 $ 42,163 $ 42,146 Due in 1-3 years — — — — Total Short-Term Investments $ 1,498 $ 1,496 $ 42,163 $ 42,146 |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 6. FAIR VALUE We measure our financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in the principal market or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company’s financial assets measured at fair value are as follows (in thousands): September 30, 2019 December 31, 2018 Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Cash and cash equivalents: Cash $ 336,053 $ 336,053 $ — $ 147,221 $ 147,221 $ — Money market funds 49,946 49,946 — 8,343 8,343 — Restricted cash 868 868 — — — — Short-term investments: Corporate bonds and commercial paper 1,496 — 1,496 37,151 — 37,151 U.S. government securities — — — 4,995 — 4,995 Total assets measured and recorded at fair value $ 388,363 $ 386,867 $ 1,496 $ 197,710 $ 155,564 $ 42,146 The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs in measuring fair value, and to utilize a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows: Level 1 —Quoted prices in active markets for identical assets or liabilities. The Company considers all highly liquid investments purchased with an original or remaining maturity of less than three months at the date of purchase to be cash equivalents. The Company measured money market funds of $49.9 million and $8.3 million as cash equivalents as of September 30, 2019 and December 31, 2018, respectively, using Level 1 inputs. Level 2 —Observable inputs other than quoted prices included within Level 1, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs other than quoted prices that are observable or are derived principally from, or corroborated by, observable market data by correlation or other means. The Company measured its short-term investments using Level 2 inputs. Level 3 —Unobservable inputs that are supported by little or no market activity, are significant to the fair value of the assets or liabilities and reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The Company did not use Level 3 inputs to measure any assets or liabilities as of September 30, 2019 and December 31, 2018. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | 7. LEASES The Company determines if an arrangement contains a lease at its inception. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term and leases are included in operating lease ROU assets, accrued liabilities, for the current portion of operating lease liabilities, and operating lease liabilities, non-current on our consolidated balance sheets. As the rate implicit in the lease is not readily determinable, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of future lease payments. The Company took into consideration its credit rating and the length of the lease when calculating the incremental borrowing rate. The Company considers the options to extend or terminate the lease in determining the lease term, when it is reasonably certain to exercise one of the options. The Company combines lease and non-lease components into a single lease component for its real estate and equipment leases. The Company has entered into operating leases primarily for office real estate. The leases have remaining lease terms ranging from one year to 11 years. Some leases include an option to extend the leases for up to seven years . The Company earns sublease income from subleases for a portion of the former headquarters. The subleases expire in 2020. The components of lease expense are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease cost $ 7,955 $ 18,117 Sublease income (664 ) (1,790 ) Net operating lease cost $ 7,291 $ 16,327 Supplemental cash flow information related to leases is as follows (in thousands): Three months ended Nine Months Ended September 30, 2019 September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 4,892 $ 12,332 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 32,014 $ 115,794 Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate As of September 30, 2019 Operating lease right-of-use assets $ 142,110 Included in accounts payable and accrued liabilities: Operating lease liability, current 16,600 Operating lease liability, non-current 142,134 Total operating lease liability $ 158,734 Weighted Average Remaining Lease Term Operating leases (in years) 9.51 Weighted Average Discount Rate Operating leases 5.18 % Future lease payments under operating leases as of September 30, 2019 were as follows (in thousands): Year ending December 31, Operating Leases 2019 (remaining 3 months) $ 4,969 2020 21,521 2021 26,395 2022 22,690 2023 23,164 Thereafter 132,455 Total future lease payments 231,194 Less: imputed interest (50,173 ) Less: expected tenant improvement allowance (22,287 ) Total $ 158,734 As of September 30, 2019, the Company has additional operating leases, primarily corporate offices, that have not yet commenced of $129.0 million. These operating leases The following table summarizes the future minimum lease payments due under operating leases as of December 31, 2018 and reflect the application of the prior lease standard (ASC 840, Leases). These amounts were disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (in thousands): Year ending December 31, Operating Leases 2019 $ 16,817 2020 29,124 2021 32,034 2022 32,844 2023 33,414 Thereafter 223,472 Less: sublease income (3,711 ) Total $ 363,994 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 8. DEBT The Company did not have any outstanding debt as of September 30, 2019 and December 31, 2018. Senior Secured Term Loan A and Revolving Credit Facilities On February 19, 2019 (the “Original Closing Date”), the Company entered into a Credit Agreement (the “Existing Credit Agreement”) with Morgan Stanley Senior Funding, Inc. On May 3, 2019, (the “Closing Date”), the Existing Credit Agreement was amended pursuant to an Incremental Assumption and Amendment No. 1 (the “Amendment” and the Existing Credit Agreement as amended by the Amendment, the “Credit Agreement”). The Amendment increased the level of new term loan commitments and new revolving commitments under the Credit Agreement by an aggregate amount of $50.0 million. The Credit Agreement now provides for (i) a four-year revolving credit facility in the aggregate principal amount of up to $ 100.0 million (the “Revolving Credit Facility”), (ii) a four-year delayed draw term loan A facility in the aggregate principal amount of up to $ 100.0 million (the “Term Loan A Facility”) and (iii) an uncommitted incremental facility, subject to the satisfaction of certain financial and other conditions, in the amount of up to (v) $ 50.0 million, plus (w) 1.0x of the Company’s EBITDA for the most recently completed four fiscal quarter period , plus (x) an additional amount at the Company’s discretion, so long as, on a pro forma basis at the time of incurrence, the Company’s secured leverage ratio does not exceed 1.50 to 1.00, plus (y) voluntary prepayments of the Revolving Credit Facility and Term Loan A Facility to the extent accompanied by concurrent reductions to the applicable Credit Facility, plus (z) for up to 90 days after the Original Closing Date, $ 25.0 million (together with the Revolving Credit Facility and the Term Loan A Facility, collectively, the “Credit Facility”). Borrowings under the Term Loan A Facility may be made by the Company up to nine months immediately following the Original Closing Date (the “Term Loan A Availability Period”). Each lender’s obligation to fund future loans or issue future letters of credit under the Credit Facility is subject to the satisfaction of certain conditions set forth in the Credit Agreement. On the Closing Date, the Company terminated its Restated 2014 LSA (as defined below) with Silicon Valley Bank. Loans under the Credit Facility bear interest at a rate equal to, at the Company’s election, (i) an alternate base rate, based upon the highest of (x) the prime rate published by the Wall Street Journal, (y) the federal funds effective date plus ½ of 1% and (z) the one-month LIBOR plus 1%, in each case plus an applicable margin of up to 1% per annum, with step-downs based on its secured leverage ratio or (2) an adjusted one-, two-, three-, or six month LIBOR, at its election, plus an applicable margin of up to 2% per annum, with step-downs based on its secured leverage ratio. Loans under the Term Loan A Facility will amortize in equal quarterly installments beginning on the last day of the fiscal quarter ending after the date of the initial borrowing under the Term Loan A Facility, in an aggregate annual amount equal to (i) on or prior to December 31, 2021, 1.25% of the drawn principal amount of the Term Loan Facility and (ii) thereafter, 2.50% of the drawn principal amount of the Term Loan Facility, with any remaining balance payable on the maturity date of the Term Loan A Facility. The Company’s obligations under the Credit Agreement are secured by substantially all of its assets. In the future, certain of its direct and indirect subsidiaries may be required to guarantee the Credit Agreement. The Company may prepay, and in circumstances is required to prepay, loans under the Credit Agreement without payment of a premium. The Credit Agreement contains customary representations and warranties, customary affirmative and negative covenants, a financial covenant that is tested quarterly and requires the Company to maintain a certain adjusted quick ratio of at least 1.00 to 1.00, and cu stomary events of default. As of September 30, 2019, the Company is in compliance with all the covenants of the Credit Agreement. The Company incurred debt issuance costs for the Credit Agreement, which are amortized over the contractual term of the agreement. Debt issuance costs are recorded in prepaid expenses and other current assets on the condensed consolidated balance sheet. Line of Credit with Silicon Valley Bank The Company first entered into a loan and security agreement (the “LSA”) with Silicon Valley Bank in July 2011. The LSA was amended and restated in subsequent periods. The amended and restated loan and security agreement (the “Restated 2014 LSA”) entered into in November 2014 provided advances under a revolving line of credit up to $30.0 million and provided for letters of credit to be issued up to $5.0 million. In June 2017, the Company entered into a second amendment to the Restated 2014 LSA (such amendment, the “Second Amendment”). Advances under the Second Amendment carry a floating per annum interest rate equal to, at the Company’s option, (1) the prime rate or (2) LIBOR plus 2.75%, or the prime rate plus 1% depending on certain ratios. The Second Amendment further changed the financial covenant to maintain a current ratio (calculated as current assets, divided by current liabilities less deferred revenue) greater than or equal to 1.25. As of December 31, 2018, the Company was in compliance with all of the covenants in the amended Restated 2014 LSA. On July 18, 2018, the Company entered into a third amendment to the Restated 2014 LSA (such amendment, the “Third Amendment”). The Third Amendment increased the amount by which the Company could utilize its line of credit to support the issuances of letters of credits from $5.0 million to $30.0 million. On February 19, 2019, the Company terminated the Restated 2014 LSA agreement with Silicon Valley Bank. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | 9. STOCKHOLDERS’ EQUITY At-the-Market Offerings On March 12, 2019, the Company entered into an Equity Distribution Agreement with Citigroup Global Markets Inc., as its sales agent (the “Citi Equity Distribution Agreement”), pursuant to which the Company could issue and sell from time-to-time shares of its Class A common stock for aggregate gross proceeds of up to $100.0 million. In March 2019, the Company sold approximately 1.4 million shares of Class A common stock at an average selling price of $72.00 per share, constituting all available shares for sale under the Citi Equity Distribution Agreement, for aggregate gross proceeds of $100.0 million and incurred issuance costs of $2.0 million. On May 16, 2019, the Company entered into an Equity Distribution Agreement with Morgan Stanley & Co. LLC, as its sales agent (the “MS Equity Distribution Agreement”), pursuant to which the Company could issue and sell up to 1.0 million shares of its Class A common stock. In May 2019, the Company sold all 1.0 million available shares for sale under the MS Equity Distribution Agreement at an average selling price of $82.90 per share, for aggregate gross proceeds of $82.9 million and incurred issuance costs of $1.6 million. Preferred Stock The Company is authorized to issue 10 million shares of undesignated preferred stock with rights and preferences determined by the Company’s Board of Directors at the time of issuance. As of September 30, 2019 and December 31, 2018, there were no shares of preferred stock issued and outstanding. Common Stock The Company has two classes of authorized common stock, Class A common stock and Class B common stock. All shares of common stock outstanding immediately prior to the initial public offering (“IPO”), including shares of common stock issued upon the conversion of the convertible preferred stock, were converted into an equivalent number of shares of Class B common stock. All common stock, stock options, and restricted stock units issued at the time of, and subsequent to, the IPO are exercised or vested into shares of Class A common stock. The Company has reserved the following shares of common stock for future issuances (in thousands): As of September 30, 2019 Common stock awards granted under equity incentive plans 16,189 Common stock awards available for issuance under Employee Stock Purchase Plan 2,089 Common stock awards available for issuance under the 2017 Equity Incentive Plan 17,317 Total reserved shares of common stock 35,595 Equity Incentive Plans The 2008 Equity Incentive Plan (the “2008 Plan”) became effective in February 2008. The 2008 Plan allowed for the grant of incentive stock options to employees and non-statutory stock options and restricted stock awards to employees, directors and consultants. Subject to certain limitations, options granted under the 2008 Plan were granted at a price per share equivalent to the fair market value on the date of grant and generally vest over four years and have a term of 10 years. Outstanding stock options granted under the 2008 Plan, prior to the Company’s IPO, are exercisable for Class B common stock. Following the Company’s IPO, no further equity awards could be made pursuant to the 2008 Plan. The 2017 Equity Incentive Plan (the “2017 Plan”) became effective in September 2017. The 2017 Plan provides for the grant of incentive stock options to employees and for the grant of non-statutory stock options and restricted stock awards, as well as other forms of equity compensation to employees, directors and consultants. Stock options and restricted stock units under the 2017 Plan are generally expensed over four years and have a term of 10 years. Only shares of Class A common stock are issued pursuant to equity awards granted under the 2017 Plan. Stock-Based Compensation The Company measures the cost of awards granted under equity incentive plans based on the grant date fair value. The Company uses the straight-line method for expense recognition and recognizes forfeitures as they occur. The following table shows total stock-based compensation expense for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Cost of platform revenue $ 120 $ 29 $ 238 $ 67 Cost of player revenue 287 136 776 247 Research and development 10,230 5,561 28,020 10,658 Sales and marketing 6,415 3,277 16,555 5,673 General and administrative 5,566 2,496 13,564 4,592 Total stock-based compensation $ 22,618 $ 11,499 $ 59,153 $ 21,237 Stock Options The summary of the Company’s stock option activity is as follows (in thousands, except price per share data): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Weighted Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Balance, December 31, 2018 - outstanding 16,371 $ 8.59 — Granted 570 99.95 $ 39.21 Exercised (4,690 ) 5.37 — Forfeited and expired (427 ) 8.05 — Balance, September 30, 2019 - outstanding 11,824 $ 14.28 6.4 — $ 1,034,409 Options exercisable at September 30, 2019 6,538 $ 5.44 5.1 — $ 629,790 The intrinsic value for options exercised during the three months ended September 30, 2019 and 2018, was million, respectively, and during the nine months ended September 30, 2019 and 2018 was $383.0 million and $403.2 million, respectively. Intrinsic value represents the difference between the fair values of the Company’s common stock and the exercise prices on the date of grant. As of September 30, 2019, the Company had $ million of unrecognized stock compensation expense related to unvested stock options that is expected to be recognized over a weighted-average period of approximately The fair value of options granted under the equity incentive plans is estimated on the grant date using the Black-Scholes option-valuation model. The assumptions used in the Black-Scholes model are as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Dividend rate — — — — Expected term (in years) 5.0 - 6.73 5.8 - 6.8 5.0 - 6.73 5.3 - 6.8 Risk-free interest rate 1.35 - 1.79% 2.76 - 2.81% 1.35 - 2.56% 2.32 - 2.88% Expected volatility 35 - 36% 38 - 40% 35 - 36% 38 - 40% Restricted Stock Units Pursuant to the 2017 Plan, the Company grants restricted stock units to employees. The fair value of restricted stock units is based on the Company’s closing stock price on the date of grant. The summary of the Company’s restricted stock unit activity is as follows (in thousands, except price per share data): Number of Shares Weighted Average Grant Date Fair Value Per Share Balance, December 31, 2018 - outstanding 3,686 $ 48.50 Awarded 1,719 74.06 Released (595 ) 47.36 Forfeited (445 ) 50.50 Balance, September 30, 2019 - outstanding 4,365 $ 58.52 The unrecognized compensation cost related to restricted stock units as of September 30, 2019 was $226.1 million, which the Company expects to recognize over 2.89 years. The intrinsic value of restricted stock units that vested during the three months ended September 30, 2019 and 2018 was $33.6 million and $2.9 million, respectively, and during the nine months ended September 30, 2019 and 2018 was $64.4 million and $3.2 million, respectively, which represented the fair value of the Company’s common stock underlying the restricted stock units on their vesting date. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 10. COMMITMENTS AND CONTINGENCIES Outstanding Commitments The Company has contracts with vendors for the manufacture of inventory and related items. The Company also has contracts with content providers and other vendors for content licensing and advertising buys in the normal course of business. As of September 30, 2019, the Company had $89.0 million purchase commitments for inventory and related items and $66.5 million for content licensing, advertising buys and other platform services. Content Licensing The Company licenses certain content for users to access through The Roku Channel. The Company records an obligation for licensing of content when it enters into an agreement to obtain future titles and the cost of the content is known. Certain agreements include the obligation to license rights for unknown future titles, the ultimate quantity and/or fees for which are not yet determinable as of the reporting date. As of September 30, 2019, the amounts recorded in “Accrued liabilities” for license purchase commitments were not material. Letters of Credit As of September 30, 2019 and December 31, 2018, the Company had irrevocable letters of credit outstanding in the amount of $30.4 million and $26.4 million, respectively, related to facilities leases. The letters of credit have various expiration dates through 2030. Contingencies The Company accrues for loss contingencies, including liabilities for intellectual property licensing, when it believes such losses are probable and reasonably estimable. The Company is currently involved in, and may in the future be involved in, legal proceedings, claims, and investigations in the ordinary course of business, including claims for infringing patents, copyrights or other intellectual property rights related to its platform and products, or the content distributed through its platform by the Company or third-party channel developers. Although the results of these proceedings, claims, and investigations cannot be predicted with certainty, the Company does not believe that the final outcome of any matters that it is currently involved in are reasonably likely to have a material adverse effect on its business, financial condition, or results of operations. Indemnification Many of the Company’s agreements include provisions for indemnifying content publishers, licensees, distributors, retailers, contract manufacturers and suppliers in the event that the Company’s products or services or the Company’s technologies incorporated therein, infringe on a third party’s intellectual property rights. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each agreement. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any liabilities related to such obligations in the consolidated financial statements. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. INCOME TAXES Income tax benefit for the three months ended September 30, 2019 and 2018 was $0.1 million and $0.2 million, respectively, and income tax benefit for the nine months ended September 30, 2019 and 2018 was $0.6 million and $0.4 million, respectively. The income tax benefit for the three and nine months ended September 30, 2019 and 2018, was primarily attributable to non-U.S. tax benefit associated with the Company's non-U.S. operation. Based on the available objective evidence during the three months ended September 30, 2019, the Company believes it is more likely than not that the tax benefits of the U.S. losses incurred may not be realized. Accordingly, the Company recorded a full valuation allowance against the tax benefits of the U.S. losses incurred. The primary difference between the effective tax rate and the statutory tax rate relates to the valuation allowance on the Company’s U.S. losses. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized through future operations. As a result of the Company’s analysis of all available objective evidence, both positive and negative, as of September 30, 2019, management believes it is more likely than not that the deferred tax assets will not be fully realizable. Accordingly, the Company has provided a full valuation allowance against its deferred tax assets with the exception of deferred tax assets related to foreign entities in the U.K., China, and Denmark. |
Related-Party Transactions
Related-Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | 12. RELATED-PARTY TRANSACTIONS The Company has engaged in transactions with one of its strategic investors. With respect to this investor, the Company recorded revenue of $2.7 million and $1.3 million for the three months ended September 30, 2019 and 2018, respectively, and $6.9 million and $2.9 million for the nine months ended September 30, 2019 and 2018, respectively In addition, the Company has engaged in transactions with another company in which the Company’s Chief Executive Officer holds a majority voting interest and is a member of such company’s board of directors, and another member of the Company’s Board of Directors is such company’s Chief Executive Officer. With respect to transactions with this other company, the Company incurred expenses of $1.2 million for the three months and nine months ended September 30, 2019. The Company did not consummate any transactions with the other company for the three and nine months ended September 30, 2018. There were no outstanding amounts payable to this other company as of September 30, 2019 and December 30, 2018. |
Net Loss Per Share
Net Loss Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 13. NET LOSS PER SHARE The Company’s basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period. For purposes of the calculation of diluted net loss per share options to purchase common stock, restricted stock units and unvested shares of common stock issued upon the early exercise of stock options are considered common stock equivalents but have been excluded from the calculation of diluted net loss per share as their effect is antidilutive. The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Numerator: Net loss $ (25,155 ) $ (9,527 ) $ (44,220 ) $ (15,635 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 116,681 106,884 114,064 103,035 Net loss per share, basic and diluted $ (0.22 ) $ (0.09 ) $ (0.39 ) $ (0.15 ) Common shares that would be excluded from the calculation of diluted net loss per share because of their anti-dilutive effect are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Equity awards to purchase common stock 16,189 20,575 16,189 20,575 Unvested shares of common stock issued upon early exercise of stock options and business acquisition 45 83 45 83 Total 16,234 20,658 16,234 20,658 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | 14. SEGMENT INFORMATION The Company is organized into two reportable segments as follows: Platform —Consists primarily of fees received from advertising sales, subscription and transaction revenue shares, sales of branded channel buttons on remote controls and licensing arrangements with TV brands and service operators. The Company’s first-party video ad inventory includes The Roku Channel, native display ads on home screens and screen savers as well as ad inventory obtained through content publisher agreements. To supplement supply, the Company can re-sell video inventory purchased from content publishers and, to a lesser extent, directly sell third-party inventory on a revenue share basis. No customer accounted for more than 10% of platform segment revenue. Player —Consists primarily of net sales of streaming media players and accessories through retailers and distributors, as well as directly to customers through the Company’s website. Customers accounting for 10% or more of player segment revenue were as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Customer A 17 % 17 % 16 % 15 % Customer B 19 % 16 % 19 % 15 % Customer C 35 % 34 % 37 % 36 % Substantially all of the Company’s assets were held in the United States and were attributable to the operations in the United States as of September 30, 2019 and December 31, 2018. Revenue in international markets |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | 15. SUBSEQUENT EVENT On October 22, 2019, the Company announced that it had entered into an agreement and plan of merger to purchase Boston-based dataxu, Inc., a demand-side platform (DSP) company that enables marketers to plan and buy video advertising campaigns, for aggregate consideration Common Stock. The acquisition was consummated on November 8, 2019. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and applicable rules and regulations of the Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on March 1, 2019. The condensed consolidated balance sheet as of December 31, 2018 has been derived from the audited consolidated financial statements as of that date but does not include all of the information and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. The interim financial information is unaudited, but reflects all normal recurring adjustments that are, in the opinion of management, necessary to fairly present the information set forth herein. The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of the operating results to be expected for the full year or any future periods. There have been no material changes in the Company’s significant accounting policies other than the adoption of Accounting Standards Update (“ASU”) ASU 2016-02 , Leases (Topic 842), |
Use of Judgments and Estimates | Use of Judgements and Estimates The preparation of the Company’s condensed consolidated financial statements in accordance with U.S. GAAP requires management to make certain estimates, judgements, and assumptions that affect the reported amounts of assets and liabilities and related disclosures at the date of the financial statements, as well as the reported amounts of revenue and expenses during the periods presented. Significant items subject to such estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, variable consideration, determining the stand-alone selling prices of performance obligations, gross versus net revenue reporting, evaluation of customer versus vendor relationships, and other obligations such as sales return reserves and customer incentive programs; the valuation of inventory, the valuation of deferred income tax assets, the recognition and disclosure of contingent liabilities and stock-based compensation. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results may differ from the Company’s estimates and assumptions. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes unrealized gains (loss) on the Company’s short-term investments for the three and nine months ended September 30, 2019 and September 30, 2018. |
Concentrations | Concentrations Customers accounting for 10% or more of the Company’s net revenue were as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Customer B * 10 % 10 % * Customer C 13 % 16 % 13 % 16 % Customers accounting for 10% or more of the Company’s accounts receivable were as follows: As of September 30, 2019 December 31, 2018 Customer D 11 % 11 % * Less than 10% |
Restricted Cash | Restricted Cash Restricted cash is comprised of cash collateral for outstanding letters of credit related to operating leases of office facilities. As of September 30, 2019, the Company had restricted cash of $0.9 million. The Company did not have any restricted cash as of December 31, 2018. |
Content Licensing | Content Licensing The Company acquires rights to video content for viewing on The Roku Channel. Consideration for these content rights can include a fixed fee and/or a share of advertising revenue. The Company capitalizes content licensing fees and records a corresponding liability when the license period has begun, the cost of the licensed content is determinable, and the content is accepted and available for streaming. The Company amortizes licensed content assets into “Cost of Revenue, Platform” over the contractual window of availability . As of September 30, 2019, . |
Recently Adopted Accounting Standards and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently In February 2016, the Financial Accounting Standards Board ("FASB") issued ASU No. 2016-02, Leases (Topic 842), On January 1, 2019, the Company adopted the guidance in ASC 842 using the optional transition method and recorded right-of-use (“ROU”) assets and lease liabilities on its condensed consolidated balance sheet. As a result, periods prior to 2019 were not adjusted. On the adoption date, the Company recognized ROU assets totaling $39.9 million, lease liabilities totaling $42.1 million and reclassification of deferred and prepaid rents of $2.2 million to ROU assets on its condensed consolidated balance sheet. There was Recently Issued Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Topic 350), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract In August 2018, the FASB issued ASU 2018-13, Fair Value Measurements (Topic 820), Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement . This standard removes, modifies, and adds certain disclosure requirements for fair value measurements. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted. The Company is currently in the process of evaluating the effects of the new guidance but does not expect the impact from this standard to be material. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Revenue Recognition | The Company enters into contracts that may include various product and service offerings, which are generally capable of being distinct and are accounted for as separate performance obligations. Revenue is recognized upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or service |
Fair Value | We measure our financial assets and liabilities at fair value on a recurring basis. Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability in the principal market or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company’s financial assets measured at fair value are as follows (in thousands): September 30, 2019 December 31, 2018 Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Cash and cash equivalents: Cash $ 336,053 $ 336,053 $ — $ 147,221 $ 147,221 $ — Money market funds 49,946 49,946 — 8,343 8,343 — Restricted cash 868 868 — — — — Short-term investments: Corporate bonds and commercial paper 1,496 — 1,496 37,151 — 37,151 U.S. government securities — — — 4,995 — 4,995 Total assets measured and recorded at fair value $ 388,363 $ 386,867 $ 1,496 $ 197,710 $ 155,564 $ 42,146 The Company maximizes the use of observable inputs and minimizes the use of unobservable inputs in measuring fair value, and to utilize a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows: Level 1 —Quoted prices in active markets for identical assets or liabilities. The Company considers all highly liquid investments purchased with an original or remaining maturity of less than three months at the date of purchase to be cash equivalents. The Company measured money market funds of $49.9 million and $8.3 million as cash equivalents as of September 30, 2019 and December 31, 2018, respectively, using Level 1 inputs. Level 2 —Observable inputs other than quoted prices included within Level 1, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs other than quoted prices that are observable or are derived principally from, or corroborated by, observable market data by correlation or other means. The Company measured its short-term investments using Level 2 inputs. Level 3 —Unobservable inputs that are supported by little or no market activity, are significant to the fair value of the assets or liabilities and reflect the Company’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The Company did not use Level 3 inputs to measure any assets or liabilities as of September 30, 2019 and December 31, 2018. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Net Revenue | |
Schedules of Customer Concentration by Risk Factor | Customers accounting for 10% or more of the Company’s net revenue were as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Customer B * 10 % 10 % * Customer C 13 % 16 % 13 % 16 % |
Accounts Receivable | |
Schedules of Customer Concentration by Risk Factor | Customers accounting for 10% or more of the Company’s accounts receivable were as follows: As of September 30, 2019 December 31, 2018 Customer D 11 % 11 % * Less than 10% |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Contract Balances | Contract balances include the following (in thousands): As of September 30, 2019 December 31, 2018 Accounts receivable, net $ 196,044 $ 183,078 Contract assets (included in Prepaid expenses and other current assets) 4,787 753 Deferred revenue, current 35,912 45,442 Deferred revenue, non-current 12,932 19,594 Total deferred revenue $ 48,844 $ 65,036 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts Receivable, Net of Allowances | Accounts receivable, net of allowances, consisted of the following (in thousands): September 30, 2019 December 31, 2018 Gross accounts receivable $ 209,149 $ 204,975 Allowance for sales returns (4,438 ) (7,335 ) Allowance for sales incentives (8,378 ) (13,750 ) Other allowances (289 ) (812 ) Total allowances (13,105 ) (21,897 ) Total Accounts Receivable—net of allowances $ 196,044 $ 183,078 |
Schedule of Allowance for Sales Returns | Allowance for sales returns consisted of the following activities (in thousands): September 30, 2019 December 31, 2018 Balance, beginning of period $ (7,335 ) $ (6,907 ) Charged to revenue (9,519 ) (17,396 ) Utilization of sales return reserve 12,416 16,968 Balance, end of period $ (4,438 ) $ (7,335 ) |
Schedule of Allowance for Sales Incentives | Allowance for sales incentives consisted of the following activities (in thousands): September 30, 2019 December 31, 2018 Balance, beginning of period $ (13,750 ) $ (10,442 ) Charged to revenue (26,947 ) (50,958 ) Utilization of sales incentive reserve 32,319 47,650 Balance, end of period $ (8,378 ) $ (13,750 ) |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): September 30, 2019 December 31, 2018 Computers and equipment $ 21,642 $ 16,056 Leasehold improvements 54,294 18,396 Website and internal-use software 6,457 6,423 Office equipment and furniture 7,864 4,069 Total property and equipment 90,257 44,944 Accumulated depreciation and amortization (28,379 ) (19,680 ) Property and Equipment, net $ 61,878 $ 25,264 |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consisted of the following (in thousands): September 30, 2019 December 31, 2018 Accounts payable $ 77,416 $ 56,576 Payments due to content publishers 55,096 32,463 Accrued cost of revenue 33,889 22,830 Operating lease liability, current 16,600 — Accrued royalty expense 11,239 7,939 Accrued payroll and related expenses 11,074 12,217 Accrued inventory 10,497 6,008 Accrued capital expenditures 5,973 — Marketing, retail and merchandising costs 5,777 — Accrued legal fees 4,298 — Customer prepayments 2,376 3,124 Taxes and related liabilities 1,160 1,314 Other accrued expenses 6,124 6,091 Total Accounts Payable and Accrued Liabilities $ 241,519 $ 148,562 |
Schedule of Deferred Revenue | Deferred revenue consisted of the following (in thousands): September 30, 2019 December 31, 2018 Platform, current $ 17,541 $ 28,569 Player, current 18,371 16,873 Total deferred revenue, current 35,912 45,442 Platform, non-current 6,221 12,783 Player, non-current 6,711 6,811 Total deferred revenue, non-current 12,932 19,594 Total Deferred Revenue $ 48,844 $ 65,036 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Short-term Investments | The following is a summary of the Company’s short-term investments (in thousands): September 30, 2019 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Amortized Cost Gross Unrealized Gains Gross Unrealized Loss Fair Value Corporate bonds and commercial paper $ 1,498 $ — $ (2 ) $ 1,496 $ 37,168 $ — $ (17 ) $ 37,151 U.S. government securities — — — — 4,995 — — 4,995 Total Short-Term Investments $ 1,498 $ — $ (2 ) $ 1,496 $ 42,163 $ — $ (17 ) $ 42,146 |
Summary of Maturities of Short-term Investments by Contractual Maturity | The following table summarizes the maturities of the Company’s short-term investments by contractual maturity (in thousands): September 30, 2019 December 31, 2018 Amortized Cost Fair Value Amortized Cost Fair Value Less than 1 year $ 1,498 $ 1,496 $ 42,163 $ 42,146 Due in 1-3 years — — — — Total Short-Term Investments $ 1,498 $ 1,496 $ 42,163 $ 42,146 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Measured at Fair Value | The Company’s financial assets measured at fair value are as follows (in thousands): September 30, 2019 December 31, 2018 Fair Value Level 1 Level 2 Fair Value Level 1 Level 2 Assets: Cash and cash equivalents: Cash $ 336,053 $ 336,053 $ — $ 147,221 $ 147,221 $ — Money market funds 49,946 49,946 — 8,343 8,343 — Restricted cash 868 868 — — — — Short-term investments: Corporate bonds and commercial paper 1,496 — 1,496 37,151 — 37,151 U.S. government securities — — — 4,995 — 4,995 Total assets measured and recorded at fair value $ 388,363 $ 386,867 $ 1,496 $ 197,710 $ 155,564 $ 42,146 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2019 Operating lease cost $ 7,955 $ 18,117 Sublease income (664 ) (1,790 ) Net operating lease cost $ 7,291 $ 16,327 |
Schedule of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to leases is as follows (in thousands): Three months ended Nine Months Ended September 30, 2019 September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 4,892 $ 12,332 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 32,014 $ 115,794 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate As of September 30, 2019 Operating lease right-of-use assets $ 142,110 Included in accounts payable and accrued liabilities: Operating lease liability, current 16,600 Operating lease liability, non-current 142,134 Total operating lease liability $ 158,734 Weighted Average Remaining Lease Term Operating leases (in years) 9.51 Weighted Average Discount Rate Operating leases 5.18 % |
Schedule of Future Lease Payments under Operating Leases | Future lease payments under operating leases as of September 30, 2019 were as follows (in thousands): Year ending December 31, Operating Leases 2019 (remaining 3 months) $ 4,969 2020 21,521 2021 26,395 2022 22,690 2023 23,164 Thereafter 132,455 Total future lease payments 231,194 Less: imputed interest (50,173 ) Less: expected tenant improvement allowance (22,287 ) Total $ 158,734 |
Schedule of Future Minimum Lease Payments Due under Operating Leases | The following table summarizes the future minimum lease payments due under operating leases as of December 31, 2018 and reflect the application of the prior lease standard (ASC 840, Leases). These amounts were disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 (in thousands): Year ending December 31, Operating Leases 2019 $ 16,817 2020 29,124 2021 32,034 2022 32,844 2023 33,414 Thereafter 223,472 Less: sublease income (3,711 ) Total $ 363,994 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Equity [Abstract] | |
Schedule of Reserved Shares of Common Stock for Future Issuances | The Company has reserved the following shares of common stock for future issuances (in thousands): As of September 30, 2019 Common stock awards granted under equity incentive plans 16,189 Common stock awards available for issuance under Employee Stock Purchase Plan 2,089 Common stock awards available for issuance under the 2017 Equity Incentive Plan 17,317 Total reserved shares of common stock 35,595 |
Summary of Stock-based Compensation Expense | The following table shows total stock-based compensation expense for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Cost of platform revenue $ 120 $ 29 $ 238 $ 67 Cost of player revenue 287 136 776 247 Research and development 10,230 5,561 28,020 10,658 Sales and marketing 6,415 3,277 16,555 5,673 General and administrative 5,566 2,496 13,564 4,592 Total stock-based compensation $ 22,618 $ 11,499 $ 59,153 $ 21,237 |
Schedule of Stock Option Activity | The summary of the Company’s stock option activity is as follows (in thousands, except price per share data): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Weighted Average Grant Date Fair Value Per Share Aggregate Intrinsic Value Balance, December 31, 2018 - outstanding 16,371 $ 8.59 — Granted 570 99.95 $ 39.21 Exercised (4,690 ) 5.37 — Forfeited and expired (427 ) 8.05 — Balance, September 30, 2019 - outstanding 11,824 $ 14.28 6.4 — $ 1,034,409 Options exercisable at September 30, 2019 6,538 $ 5.44 5.1 — $ 629,790 |
Summary of Assumptions Used to Value Stock-Based Awards Granted | The fair value of options granted under the equity incentive plans is estimated on the grant date using the Black-Scholes option-valuation model. The assumptions used in the Black-Scholes model are as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Dividend rate — — — — Expected term (in years) 5.0 - 6.73 5.8 - 6.8 5.0 - 6.73 5.3 - 6.8 Risk-free interest rate 1.35 - 1.79% 2.76 - 2.81% 1.35 - 2.56% 2.32 - 2.88% Expected volatility 35 - 36% 38 - 40% 35 - 36% 38 - 40% |
Summary of Restricted Stock Unit Activity | Pursuant to the 2017 Plan, the Company grants restricted stock units to employees. The fair value of restricted stock units is based on the Company’s closing stock price on the date of grant. The summary of the Company’s restricted stock unit activity is as follows (in thousands, except price per share data): Number of Shares Weighted Average Grant Date Fair Value Per Share Balance, December 31, 2018 - outstanding 3,686 $ 48.50 Awarded 1,719 74.06 Released (595 ) 47.36 Forfeited (445 ) 50.50 Balance, September 30, 2019 - outstanding 4,365 $ 58.52 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Numerator: Net loss $ (25,155 ) $ (9,527 ) $ (44,220 ) $ (15,635 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 116,681 106,884 114,064 103,035 Net loss per share, basic and diluted $ (0.22 ) $ (0.09 ) $ (0.39 ) $ (0.15 ) |
Schedule of Antidilutive Securities Excluded from Calculation of Diluted Net Loss Per Share | Common shares that would be excluded from the calculation of diluted net loss per share because of their anti-dilutive effect are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Equity awards to purchase common stock 16,189 20,575 16,189 20,575 Unvested shares of common stock issued upon early exercise of stock options and business acquisition 45 83 45 83 Total 16,234 20,658 16,234 20,658 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Customer Accounting for 10% or More of Player Segment Revenue | Customers accounting for 10% or more of player segment revenue were as follows: Three Months Ended Nine Months Ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 Customer A 17 % 17 % 16 % 15 % Customer B 19 % 16 % 19 % 15 % Customer C 35 % 34 % 37 % 36 % |
The Company - Additional Inform
The Company - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2019segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Conversion date | Feb. 1, 2008 |
Number of reportable segments operates | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedules of Customer Concentration by Risk Factor (Details) - Customer Concentration Risk | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Net Revenue | Customer B | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 10.00% | 10.00% | |||
Net Revenue | Customer C | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 13.00% | 16.00% | 13.00% | 16.00% | |
Accounts Receivable | Customer D | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 11.00% | 11.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | |||
Restricted cash | $ 868 | $ 0 | |
Operating lease right-of-use assets | $ 39,900 | 142,110 | |
Operating lease liability | 42,100 | $ 158,734 | |
Reclassification of deferred and prepaid rents to right of use assets | $ 2,200 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | |
Revenue From Contract With Customer [Abstract] | ||||
Contract acquisition cost recognition, description | most direct contract acquisition costs relate to contracts that are recognized over a period of one year or less. | |||
Contract acquisition, capitalized cost | $ 0 | $ 0 | ||
Number of reportable segment | segment | 2 | |||
Contract with customer assets increase (decrease) | $ 4,000,000 | |||
Decrease in deferred revenue | (16,192,000) | $ (3,054,000) | ||
Deferred revenue increase decrease due to revenue recognized upon customer acceptance | 5,000,000 | |||
Deferred revenue recognized | 6,300 | $ 5,300 | 44,200 | $ 34,900 |
Estimated contracted revenue | $ 146,800,000 | $ 146,800,000 | ||
Revenue, remaining performance obligation, expected timing of satisfaction, Description | Revenue allocated to remaining performance obligations represents estimated contracted revenue that has not yet been recognized which includes unearned revenue and amounts that will be invoiced and recognized as revenue in future periods. Estimated contracted revenue was $146.8 million as of September 30, 2019 of which we expect to recognize approximately 62% over the next 12 months and the remainder thereafter. | |||
Revenue remaining performance obligation percentage of revenue expected to be recognized | 62.00% |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule Of Contract Balances [Line Items] | ||
Accounts receivable, net | $ 196,044 | $ 183,078 |
Deferred revenue, current | 35,912 | 45,442 |
Deferred revenue, non-current | 12,932 | 19,594 |
Total deferred revenue | 48,844 | 65,036 |
Prepaid Expenses and Other Current Assets | ||
Schedule Of Contract Balances [Line Items] | ||
Contract assets (included in Prepaid expenses and other current assets) | $ 4,787 | $ 753 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Accounts Receivable, Net of Allowances (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Gross accounts receivable | $ 209,149 | $ 204,975 | |
Allowance for accounts receivable | (13,105) | (21,897) | |
Total Accounts Receivable—net of allowances | 196,044 | 183,078 | |
Allowance for Sales Returns | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Allowance for accounts receivable | (4,438) | (7,335) | $ (6,907) |
Allowance for Sales Incentives | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Allowance for accounts receivable | (8,378) | (13,750) | $ (10,442) |
Other Allowances | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Allowance for accounts receivable | $ (289) | $ (812) |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Allowance for Sales Returns (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of period | $ (21,897) | |
Balance, end of period | (13,105) | $ (21,897) |
Allowance for Sales Returns | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of period | (7,335) | (6,907) |
Charged to revenue | (9,519) | (17,396) |
Utilization of sales return/incentive reserve | 12,416 | 16,968 |
Balance, end of period | $ (4,438) | $ (7,335) |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Allowance for Sales Incentives (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of period | $ (21,897) | |
Balance, end of period | (13,105) | $ (21,897) |
Allowance for Sales Incentives | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of period | (13,750) | (10,442) |
Charged to revenue | (26,947) | (50,958) |
Utilization of sales return/incentive reserve | 32,319 | 47,650 |
Balance, end of period | $ (8,378) | $ (13,750) |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 90,257 | $ 44,944 |
Accumulated depreciation and amortization | (28,379) | (19,680) |
Property and Equipment, net | 61,878 | 25,264 |
Computer and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 21,642 | 16,056 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 54,294 | 18,396 |
Website and Internal-Use Software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 6,457 | 6,423 |
Office Equipment and Furniture | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 7,864 | $ 4,069 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Depreciation and amortization | $ 3.4 | $ 2.1 | $ 8.8 | $ 5.4 |
Balance Sheet Components - Sc_5
Balance Sheet Components - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts Payable And Accrued Liabilities Current [Abstract] | ||
Accounts payable | $ 77,416 | $ 56,576 |
Payments due to content publishers | 55,096 | 32,463 |
Accrued cost of revenue | 33,889 | 22,830 |
Operating lease liability, current | 16,600 | |
Accrued royalty expense | 11,239 | 7,939 |
Accrued payroll and related expenses | 11,074 | 12,217 |
Accrued inventory | 10,497 | 6,008 |
Accrued capital expenditures | 5,973 | |
Marketing, retail and merchandising costs | 5,777 | |
Accrued legal fees | 4,298 | |
Customer prepayments | 2,376 | 3,124 |
Taxes and related liabilities | 1,160 | 1,314 |
Other accrued expenses | 6,124 | 6,091 |
Total Accounts Payable and Accrued Liabilities | $ 241,519 | $ 148,562 |
Balance Sheet Components - Sc_6
Balance Sheet Components - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current | $ 35,912 | $ 45,442 |
Deferred revenue, non-current | 12,932 | 19,594 |
Total deferred revenue | 48,844 | 65,036 |
Platform | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current | 17,541 | 28,569 |
Deferred revenue, non-current | 6,221 | 12,783 |
Player | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current | 18,371 | 16,873 |
Deferred revenue, non-current | $ 6,711 | $ 6,811 |
Short-Term Investments - Summar
Short-Term Investments - Summary of Short-term Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 1,498 | $ 42,163 |
Gross Unrealized Loss | (2) | (17) |
Fair Value | 1,496 | 42,146 |
Corporate Bonds and Commercial Paper | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,498 | 37,168 |
Gross Unrealized Loss | (2) | (17) |
Fair Value | $ 1,496 | 37,151 |
U.S. Government Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 4,995 | |
Fair Value | $ 4,995 |
Short-Term Investments - Summ_2
Short-Term Investments - Summary of Maturities of Short-term Investments by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments Debt And Equity Securities [Abstract] | ||
Less than 1 year, amortized cost | $ 1,498 | $ 42,163 |
Amortized Cost | 1,498 | 42,163 |
Less than 1 year, fair value | 1,496 | 42,146 |
Total short-term investments, fair value | $ 1,496 | $ 42,146 |
Fair Value - Schedule of Financ
Fair Value - Schedule of Financial Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets: | ||
Restricted cash | $ 868 | $ 0 |
Fair Value | 1,496 | 42,146 |
Total assets measured and recorded at fair value | 388,363 | 197,710 |
Level 1 | ||
Assets: | ||
Restricted cash | 868 | |
Total assets measured and recorded at fair value | 386,867 | 155,564 |
Level 2 | ||
Assets: | ||
Total assets measured and recorded at fair value | 1,496 | 42,146 |
Cash | ||
Assets: | ||
Cash and cash equivalents | 336,053 | 147,221 |
Cash | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 336,053 | 147,221 |
Money Market Fund | ||
Assets: | ||
Cash and cash equivalents | 49,946 | 8,343 |
Money Market Fund | Level 1 | ||
Assets: | ||
Cash and cash equivalents | 49,946 | 8,343 |
Corporate Bonds and Commercial Paper | ||
Assets: | ||
Fair Value | 1,496 | 37,151 |
Corporate Bonds and Commercial Paper | Level 2 | ||
Assets: | ||
Fair Value | $ 1,496 | 37,151 |
U.S. Government Securities | ||
Assets: | ||
Fair Value | 4,995 | |
U.S. Government Securities | Level 2 | ||
Assets: | ||
Fair Value | $ 4,995 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Money Market Fund | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 49.9 | $ 8.3 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Line Items] | |
Lessee, operating lease, existence of option to extend | true |
Lease renewal term, operating lease | 7 years |
Lessee, operating lease, existence of option to terminate | true |
Operating leases, options to terminate leases term | 3 years |
Sub lease expiration year | 2020 |
Additional leases, primarily for corporate offices, that have not yet commenced | $ 129 |
Minimum | |
Leases [Line Items] | |
Remaining lease term, operating lease | 1 year |
Additional operating leases that have not yet commenced, lease terms | 6 years |
Maximum | |
Leases [Line Items] | |
Remaining lease term, operating lease | 11 years |
Additional operating leases that have not yet commenced, lease terms | 11 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 7,955 | $ 18,117 |
Sublease income | (664) | (1,790) |
Net operating lease cost | $ 7,291 | $ 16,327 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflows from operating leases | $ 4,892 | $ 12,332 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 32,014 | $ 115,794 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 142,110 | $ 39,900 |
Operating lease liability, current | 16,600 | |
Operating lease liability, non-current | 142,134 | |
Total operating lease liability | $ 158,734 | $ 42,100 |
Weighted Average Remaining Lease Term | ||
Operating leases (in years) | 9 years 6 months 3 days | |
Weighted Average Discount Rate | ||
Operating leases | 5.18% |
Leases - Schedule of Future Lea
Leases - Schedule of Future Lease Payments under Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2019 (remaining 3 months) | $ 4,969 | |
2020 | 21,521 | |
2021 | 26,395 | |
2022 | 22,690 | |
2023 | 23,164 | |
Thereafter | 132,455 | |
Total future lease payments | 231,194 | |
Less: imputed interest | (50,173) | |
Less: expected tenant improvement allowance | (22,287) | |
Total | $ 158,734 | $ 42,100 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments Due under Operating Leases (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2019 | $ 16,817 |
2020 | 29,124 |
2021 | 32,034 |
2022 | 32,844 |
2023 | 33,414 |
Thereafter | 223,472 |
Less: sublease income | (3,711) |
Total | $ 363,994 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Feb. 19, 2019 | Jun. 30, 2017 | Sep. 30, 2019 | May 03, 2019 | Dec. 31, 2018 | Jul. 18, 2018 | Jun. 30, 2018 |
Debt Instrument [Line Items] | |||||||
Outstanding debt | $ 0 | $ 0 | |||||
Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 50,000,000 | ||||||
Second Amendment To Restated 2014 Loan and Security Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Minimum current ratio required under financial covenant | 1.25% | ||||||
Second Amendment To Restated 2014 Loan and Security Agreement | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 2.75% | ||||||
Second Amendment To Restated 2014 Loan and Security Agreement | Prime Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.00% | ||||||
Morgan Stanley Senior Funding, Inc | Credit Agreement | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Adjusted quick ratio | 1.00% | ||||||
Morgan Stanley Senior Funding, Inc | Credit Agreement | Term Loan A Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||
Debt instrument term, years | 4 years | ||||||
Debt instrument, amortization description | Loans under the Term Loan A Facility will amortize in equal quarterly installments beginning on the last day of the fiscal quarter ending after the date of the initial borrowing under the Term Loan A Facility, in an aggregate annual amount equal to (i) on or prior to December 31, 2021, 1.25% of the drawn principal amount of the Term Loan Facility and (ii) thereafter, 2.50% of the drawn principal amount of the Term Loan Facility, with any remaining balance payable on the maturity date of the Term Loan A Facility. | ||||||
Morgan Stanley Senior Funding, Inc | Credit Agreement | Term Loan A Facility | On or Prior to December 31, 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of amortization on drawn principal amount | 1.25% | ||||||
Morgan Stanley Senior Funding, Inc | Credit Agreement | Term Loan A Facility | Thereafter December 31, 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of amortization on drawn principal amount | 2.50% | ||||||
Morgan Stanley Senior Funding, Inc | Credit Agreement | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||
Debt instrument term, years | 4 years | ||||||
Morgan Stanley Senior Funding, Inc | Credit Agreement | Revolving Credit Facility | Term Loan A Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 25,000,000 | ||||||
Interest payments description | Loans under the Credit Facility bear interest at a rate equal to, at the Company’s election, (i) an alternate base rate, based upon the highest of (x) the prime rate published by the Wall Street Journal, (y) the federal funds effective date plus ½ of 1% and (z) the one-month LIBOR plus 1%, in each case plus an applicable margin of up to 1% per annum, with step-downs based on its secured leverage ratio or (2) an adjusted one-, two-, three-, or six month LIBOR, at its election, plus an applicable margin of up to 2% per annum, with step-downs based on its secured leverage ratio. | ||||||
Morgan Stanley Senior Funding, Inc | Credit Agreement | Revolving Credit Facility | Term Loan A Facility | Federal Funds Effective Rate | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.50% | ||||||
Morgan Stanley Senior Funding, Inc | Credit Agreement | Revolving Credit Facility | Term Loan A Facility | One-month LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.00% | ||||||
Morgan Stanley Senior Funding, Inc | Credit Agreement | Revolving Credit Facility | Term Loan A Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Applicable margin with step-downs based on secured leverage ratio | 1.00% | ||||||
Morgan Stanley Senior Funding, Inc | Credit Agreement | Revolving Credit Facility | Term Loan A Facility | Maximum | Adjusted One-, Two-, Three-, or Six Month LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Applicable margin with step-downs based on secured leverage ratio | 2.00% | ||||||
Morgan Stanley Senior Funding, Inc | Credit Agreement | Uncommitted Incremental Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 50,000,000 | ||||||
Debt to company's EBITDA, description | 1.0x of the Company’s EBITDA for the most recently completed four fiscal quarter period | ||||||
Morgan Stanley Senior Funding, Inc | Credit Agreement | Uncommitted Incremental Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Secured leverage ratio | 1.50% | ||||||
Silicon Valley Bank | Restated 2014 LSA | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 5,000,000 | ||||||
Silicon Valley Bank | Restated 2014 LSA | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 30,000,000 | ||||||
Silicon Valley Bank | Third Amendment To Restated 2014 Loan and Security Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 5,000,000 | ||||||
Maximum borrowing capacity | $ 30,000,000 |
Stockholders' Equity - At-the-M
Stockholders' Equity - At-the-Market Offerings - Additional Information (Details) - At-the-Market Offerings - Class A Common Stock - USD ($) $ / shares in Units, shares in Millions, $ in Millions | Mar. 12, 2019 | May 31, 2019 | Mar. 31, 2019 | May 16, 2019 |
Class Of Stock [Line Items] | ||||
Gross proceeds from issuance of common stock | $ 82.9 | $ 100 | ||
Number of shares Issued | 1 | 1.4 | ||
Average selling price per share | $ 82.90 | $ 72 | ||
Stock Issuance Costs | $ 1.6 | $ 2 | ||
Maximum aggregate offering shares of common stock | 1 | |||
Maximum | ||||
Class Of Stock [Line Items] | ||||
Gross proceeds from issuance of common stock | $ 100 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock - Additional Information (Details) - shares | Sep. 30, 2019 | Dec. 31, 2018 |
Equity [Abstract] | ||
Preferred stock, shares authorized | 10,000,000 | |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2019Class | |
Equity [Abstract] | |
Number of classes | 2 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Reserved Shares of Common Stock for Future Issuances (Details) shares in Thousands | Sep. 30, 2019shares |
Class Of Stock [Line Items] | |
Total reserved shares of common stock | 35,595 |
Equity Incentive Plan | |
Class Of Stock [Line Items] | |
Common stock awards granted under equity incentive plans | 16,189 |
Employee Stock Purchase Plan | |
Class Of Stock [Line Items] | |
Common stock awards available for issuance | 2,089 |
2017 Plan | |
Class Of Stock [Line Items] | |
Common stock awards available for issuance | 17,317 |
Stockholders' Equity - Equity I
Stockholders' Equity - Equity Incentive Plans - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2019 | |
2008 Plan | |
Class Of Stock [Line Items] | |
Stock option vesting period | 4 years |
Stock options expiration term | 10 years |
2017 Plan | |
Class Of Stock [Line Items] | |
Stock option vesting period | 4 years |
Stock options expiration term | 10 years |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 22,618 | $ 11,499 | $ 59,153 | $ 21,237 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 10,230 | 5,561 | 28,020 | 10,658 |
Sales and Marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 6,415 | 3,277 | 16,555 | 5,673 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 5,566 | 2,496 | 13,564 | 4,592 |
Player | Cost of Revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 287 | 136 | 776 | 247 |
Platform | Cost of Revenue | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 120 | $ 29 | $ 238 | $ 67 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Balance, Number of Shares | shares | 16,371 |
Granted, Number of Shares | shares | 570 |
Exercised, Number of Shares | shares | (4,690) |
Forfeited and expired, Number of Shares | shares | (427) |
Balance, Number of Shares | shares | 11,824 |
Options exercisable at September 30, 2019, Number of Shares | shares | 6,538 |
Balance, Weighted Average Exercise Price | $ 8.59 |
Granted, Weighted Average Exercise Price | 99.95 |
Exercised, Weighted Average Exercise Price | 5.37 |
Forfeited and expired, Weighted Average Exercise Price | 8.05 |
Balance, Weighted Average Exercise Price | 14.28 |
Options exercisable at September 30, 2019, Weighted Average Exercise Price | $ 5.44 |
Balance, Weighted Average Remaining Contractual Life | 6 years 6 months |
Options exercisable at September 30, 2019, Weighted Average Remaining Contractual Life | 5 years 2 months 12 days |
Granted, Weighted Average Grant Date Fair Value Per Share | $ 39.21 |
Outstanding, ending balance | $ | $ 1,034,409 |
Options exercisable, ending balance | $ | $ 629,790 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Option Plan - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Intrinsic value of options exercised | $ 137.5 | $ 206.2 | $ 383 | $ 403.2 |
Unrecognized stock compensation expense | $ 46.3 | $ 46.3 | ||
Expected weighted average period to recognize unrecognized stock compensation expense | 1 year 11 months 1 day |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Assumptions Used to Value Stock-Based Awards Granted (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | ||||
Risk-free interest rate, Minimum | 1.35% | 2.76% | 1.35% | 2.32% |
Risk-free interest rate, Maximum | 1.79% | 2.81% | 2.56% | 2.88% |
Expected volatility, Minimum | 35.00% | 38.00% | 35.00% | 38.00% |
Expected volatility, Maximum | 36.00% | 40.00% | 36.00% | 40.00% |
Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | ||||
Expected term (in years) | 5 years | 5 years 9 months 18 days | 5 years | 5 years 3 months 18 days |
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions And Methodology [Abstract] | ||||
Expected term (in years) | 6 years 8 months 23 days | 6 years 9 months 18 days | 6 years 8 months 23 days | 6 years 9 months 18 days |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units shares in Thousands | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning balance Number of Shares, outstanding | shares | 3,686 |
Number of Shares, Awarded | shares | 1,719 |
Number of Shares, Released | shares | (595) |
Number of Shares, Forfeited | shares | (445) |
Ending balance, Number of Shares outstanding | shares | 4,365 |
Weighted Average Grant Date Fair Value Per Share, Beginning balance | $ / shares | $ 48.50 |
Weighted Average Grant Date Fair Value Per Share, Awarded | $ / shares | 74.06 |
Weighted Average Grant Date Fair Value Per Share, Released | $ / shares | 47.36 |
Weighted Average Grant Date Fair Value Per Share, Forfeited | $ / shares | 50.50 |
Weighted Average Grant Date Fair Value Per Share, Ending balance | $ / shares | $ 58.52 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Units - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Unrecognized stock compensation expense | $ 46.3 | $ 46.3 | ||
Expected weighted average period to recognize unrecognized stock compensation expense | 1 year 11 months 1 day | |||
Restricted Stock Units | ||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Unrecognized stock compensation expense | 226.1 | $ 226.1 | ||
Expected weighted average period to recognize unrecognized stock compensation expense | 2 years 10 months 20 days | |||
Intrinsic value of restricted stock units vested during the period | $ 33.6 | $ 2.9 | $ 64.4 | $ 3.2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Commitments And Contingencies [Line Items] | ||
Letters of credit outstanding | $ 30.4 | $ 26.4 |
Letters of credit expiration date | Dec. 31, 2030 | |
Manufacturing | ||
Commitments And Contingencies [Line Items] | ||
Purchase commitments for inventory, content licensing, advertising buys and other platform services | $ 89 | |
Content Providers and Other Vendors | ||
Commitments And Contingencies [Line Items] | ||
Purchase commitments for inventory, content licensing, advertising buys and other platform services | $ 66.5 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax benefit | $ 96 | $ 172 | $ 619 | $ 397 |
Related-Party Transactions - Ad
Related-Party Transactions - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
CEO Holds Majority Voting Interest | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction expense | $ 1,200,000 | $ 0 | $ 1,200,000 | $ 0 | |
Payable/ outstanding to related parties | 0 | 0 | $ 0 | ||
Strategic Investors | |||||
Related Party Transaction [Line Items] | |||||
Revenue from related parties | 2,700,000 | 1,300,000 | 6,900,000 | 2,900,000 | |
Receivable from related parties | 3,500,000 | 3,500,000 | 2,400,000 | ||
Related party transaction expense | 600,000 | $ 200,000 | 800,000 | $ 300,000 | |
Payable/ outstanding to related parties | $ 100,000 | $ 100,000 | $ 1,500,000 |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator: | ||||
Net loss | $ (25,155) | $ (9,527) | $ (44,220) | $ (15,635) |
Denominator: | ||||
Weighted-average shares used in computing net loss per share, basic and diluted | 116,681 | 106,884 | 114,064 | 103,035 |
Net loss per share, basic and diluted | $ (0.22) | $ (0.09) | $ (0.39) | $ (0.15) |
Net Loss Per Share - Schedule o
Net Loss Per Share - Schedule of Antidilutive Securities Excluded from Calculation of Diluted Net Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted net loss per share | 16,234 | 20,658 | 16,234 | 20,658 |
Equity Awards to Purchase Common Stock | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted net loss per share | 16,189 | 20,575 | 16,189 | 20,575 |
Unvested Shares of Common Stock Issued Upon Early Exercise of Stock Options and Business Acquisition | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted net loss per share | 45 | 83 | 45 | 83 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - segment | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | 2 | |||
Net Revenue | Geographic Concentration Risk | International Market | Maximum | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk | 10.00% | 10.00% | 10.00% | 10.00% |
Segment Information - Schedule
Segment Information - Schedule of Customer Accounting for 10% or More of Player Segment Revenue (Details) - Net Revenue - Customer Concentration Risk | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Customer B | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 10.00% | 10.00% | ||
Customer C | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 13.00% | 16.00% | 13.00% | 16.00% |
Player | Customer A | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 17.00% | 17.00% | 16.00% | 15.00% |
Player | Customer B | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 19.00% | 16.00% | 19.00% | 15.00% |
Player | Customer C | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 35.00% | 34.00% | 37.00% | 36.00% |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - Boston-based Dataxu, Inc, Demand-Side Platform (DSP) - Subsequent Event $ in Millions | Oct. 22, 2019USD ($) |
Subsequent Event [Line Items] | |
Business combination, date of agreement | Oct. 22, 2019 |
Business combination, aggregate cash consideration | $ 150 |