Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
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 | 1155 Coleman Avenue | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 95110 | |
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, $0.0001 par value | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 105,891,320 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 18,816,622 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 885,825 | $ 515,479 |
Restricted cash | 1,539 | 1,854 |
Accounts receivable, net of allowances | 306,719 | 332,673 |
Inventories | 45,001 | 49,714 |
Prepaid expenses and other current assets | 37,202 | 25,943 |
Total current assets | 1,276,286 | 925,663 |
Property and equipment, net | 152,747 | 103,262 |
Operating lease right-of-use assets | 269,900 | 283,291 |
Intangible assets, net | 69,292 | 76,668 |
Goodwill | 73,058 | 74,116 |
Other non-current assets | 5,139 | 7,234 |
Total Assets | 1,846,422 | 1,470,234 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 363,816 | 313,574 |
Current portion of long-term debt | 4,870 | 4,866 |
Deferred revenue, current | 43,940 | 39,861 |
Total current liabilities | 412,626 | 358,301 |
Long-term debt, non-current | 92,305 | 94,742 |
Deferred revenue, non-current | 17,243 | 15,370 |
Operating lease liability, non-current | 306,750 | 301,694 |
Other long-term liabilities | 1,945 | 1,701 |
Total Liabilities | 830,869 | 771,808 |
Stockholders’ Equity: | ||
Common stock, $0.0001 par value | 12 | 12 |
Additional paid-in capital | 1,428,171 | 1,012,218 |
Accumulated other comprehensive income | 29 | 29 |
Accumulated deficit | (412,659) | (313,833) |
Total stockholders’ equity | 1,015,553 | 698,426 |
Total Liabilities and Stockholders’ Equity | $ 1,846,422 | $ 1,470,234 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net Revenue: | ||||
Total net revenue | $ 356,073 | $ 250,101 | $ 676,839 | $ 456,763 |
Cost of Revenue: | ||||
Total cost of revenue | 209,237 | 135,892 | 388,902 | 241,663 |
Gross Profit: | ||||
Total gross profit | 146,836 | 114,209 | 287,937 | 215,100 |
Operating Expenses: | ||||
Research and development | 84,387 | 61,994 | 172,665 | 117,732 |
Sales and marketing | 64,164 | 36,568 | 132,412 | 70,375 |
General and administrative | 40,494 | 26,033 | 80,234 | 48,119 |
Total operating expenses | 189,045 | 124,595 | 385,311 | 236,226 |
Loss from Operations | (42,209) | (10,386) | (97,374) | (21,126) |
Other Income, Net: | ||||
Interest expense | (1,034) | (571) | (1,897) | (669) |
Other income, net | 557 | 1,240 | 1,818 | 2,207 |
Total other income (expense), net | (477) | 669 | (79) | 1,538 |
Loss Before Income Taxes | (42,686) | (9,717) | (97,453) | (19,588) |
Income tax (benefit) expense | 462 | (384) | 307 | (523) |
Net Loss | $ (43,148) | $ (9,333) | $ (97,760) | $ (19,065) |
Net loss per share —basic and diluted | $ (0.35) | $ (0.08) | $ (0.81) | $ (0.17) |
Weighted-average shares used in computing net loss per share —basic and diluted | 122,614 | 114,572 | 121,397 | 112,734 |
Platform | Services | ||||
Net Revenue: | ||||
Total net revenue | $ 244,777 | $ 167,682 | $ 477,334 | $ 301,835 |
Cost of Revenue: | ||||
Total cost of revenue | 106,324 | 57,980 | 208,260 | 98,344 |
Gross Profit: | ||||
Total gross profit | 138,453 | 109,702 | 269,074 | 203,491 |
Player | Goods | ||||
Net Revenue: | ||||
Total net revenue | 111,296 | 82,419 | 199,505 | 154,928 |
Cost of Revenue: | ||||
Total cost of revenue | 102,913 | 77,912 | 180,642 | 143,319 |
Gross Profit: | ||||
Total gross profit | $ 8,383 | $ 4,507 | $ 18,863 | $ 11,609 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Loss | $ (43,148) | $ (9,333) | $ (97,760) | $ (19,065) |
Other comprehensive income, net of tax: | ||||
Unrealized gain on short-term investments, net of tax | 3 | 21 | ||
Comprehensive Net Loss | $ (43,148) | $ (9,330) | $ (97,760) | $ (19,044) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Adjustment for Adoption of ASU 2016-13 | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income / (Loss) | Accumulated Deficit | Accumulated DeficitAdjustment for Adoption of ASU 2016-13 |
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 | 32 | 32 | ||||||
Share repurchases, Shares | (2) | |||||||
Issuance of common stock pursuant to equity incentive plans | 19,148 | $ 1 | 19,147 | |||||
Issuance of common stock pursuant to equity incentive plans, Shares | 4,002 | |||||||
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 | 36,535 | 36,535 | ||||||
Unrealized gain on short-term investments | 21 | 21 | ||||||
Net loss | (19,065) | (19,065) | ||||||
Balance at Jun. 30, 2019 | 460,682 | $ 12 | 734,298 | (671) | 4 | (272,961) | ||
Balance, Shares at Jun. 30, 2019 | 116,159 | |||||||
Balance at Mar. 31, 2019 | 360,934 | $ 11 | 625,221 | (671) | 1 | (263,628) | ||
Balance, Shares at Mar. 31, 2019 | 113,292 | |||||||
Vesting of early exercised stock options | 15 | 15 | ||||||
Issuance of common stock pursuant to equity incentive plans | 9,057 | $ 1 | 9,056 | |||||
Issuance of common stock pursuant to equity incentive plans, Shares | 1,867 | |||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs | 81,335 | 81,335 | ||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs, Shares | 1,000 | |||||||
Stock-based compensation expense | 18,671 | 18,671 | ||||||
Unrealized gain on short-term investments | 3 | 3 | ||||||
Net loss | (9,333) | (9,333) | ||||||
Balance at Jun. 30, 2019 | 460,682 | $ 12 | 734,298 | (671) | 4 | (272,961) | ||
Balance, Shares at Jun. 30, 2019 | 116,159 | |||||||
Balance at Dec. 31, 2019 | $ 698,426 | $ (1,066) | $ 12 | 1,012,889 | (671) | 29 | (313,833) | $ (1,066) |
Balance, Shares at Dec. 31, 2019 | 119,897 | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||
Vesting of early exercised stock options | $ 26 | 26 | ||||||
Issuance of common stock pursuant to equity incentive plans | 5,877 | 5,877 | ||||||
Issuance of common stock pursuant to equity incentive plans, Shares | 1,683 | |||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs | 349,609 | 349,609 | ||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs, Shares | 3,004 | |||||||
Stock-based compensation expense | 60,441 | 60,441 | ||||||
Net loss | (97,760) | (97,760) | ||||||
Balance at Jun. 30, 2020 | 1,015,553 | $ 12 | 1,428,842 | (671) | 29 | (412,659) | ||
Balance, Shares at Jun. 30, 2020 | 124,584 | |||||||
Balance at Mar. 31, 2020 | $ 675,913 | $ 12 | 1,046,054 | (671) | 29 | (369,511) | ||
Balance, Shares at Mar. 31, 2020 | 120,657 | |||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||
Vesting of early exercised stock options | $ 9 | 9 | ||||||
Issuance of common stock pursuant to equity incentive plans | 3,134 | 3,134 | ||||||
Issuance of common stock pursuant to equity incentive plans, Shares | 923 | |||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs | 349,609 | 349,609 | ||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs, Shares | 3,004 | |||||||
Stock-based compensation expense | 30,036 | 30,036 | ||||||
Net loss | (43,148) | (43,148) | ||||||
Balance at Jun. 30, 2020 | $ 1,015,553 | $ 12 | $ 1,428,842 | $ (671) | $ 29 | $ (412,659) | ||
Balance, Shares at Jun. 30, 2020 | 124,584 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||||
At the market offering issuance cost | $ 4.8 | $ 1.6 | $ 4.8 | $ 3.6 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (97,760) | $ (19,065) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 17,248 | 5,677 |
Stock-based compensation expense | 60,441 | 36,535 |
Amortization of operating lease right-of-use assets | 15,947 | 7,738 |
Amortization of content license assets | 12,182 | 760 |
Provision for doubtful accounts | 3,516 | 53 |
Non-cash interest expense | 412 | |
Amortization of premiums on short-term investments | (265) | |
Other items, net | 290 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 21,372 | (21,012) |
Inventories | 4,713 | (3,858) |
Prepaid expenses and other current assets | (5,222) | (5,277) |
Deferred cost of revenue | 1,144 | |
Other noncurrent assets | 2,095 | 10 |
Accounts payable and accrued liabilities | 27,183 | 31,395 |
Operating lease liabilities | 12,695 | (4,405) |
Other long-term liabilities | (556) | (1,197) |
Deferred revenue | 5,952 | (14,611) |
Net cash provided by operating activities | 80,096 | 14,034 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (64,109) | (23,171) |
Purchases of short-term investments | (12,365) | |
Sales/maturities of short-term investments | 43,810 | |
Proceeds from resolution of purchase acquisition contingencies | 1,058 | |
Net cash provided by (used in) investing activities | (63,051) | 8,274 |
Cash flows from financing activities: | ||
Proceeds from borrowing, net of issuance costs | 69,325 | |
Repayments made on borrowings | (71,825) | |
Proceeds from equity issued under at-the-market program, net of issuance costs | 349,609 | 179,360 |
Proceeds from equity issued under incentive plans | 5,877 | 19,145 |
Net cash provided by financing activities | 352,986 | 198,505 |
Net increase in cash, cash equivalents and restricted cash | 370,031 | 220,813 |
Cash, cash equivalents and restricted cash—Beginning of period | 517,333 | 155,564 |
Cash, cash equivalents and restricted cash—End of period | 887,364 | 376,377 |
Cash, cash equivalents and restricted cash at end of period: | ||
Cash and cash equivalents | 885,825 | 375,509 |
Restricted cash | 1,539 | 868 |
Cash, cash equivalents and restricted cash—End of period | 887,364 | 376,377 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 2,118 | 960 |
Cash paid for income taxes | 482 | 636 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Unpaid portion of property and equipment purchases | 5,218 | 6,984 |
Unpaid portion of purchased intangibles | 400 | |
Unpaid portion of at-the-market offering costs | $ 150 | $ 459 |
The Company
The Company | 6 Months Ended |
Jun. 30, 2020 | |
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 and TV episodes, as well as live sports, music, news and more. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
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, 2019, filed with the SEC on March 2, 2020 (the “Annual Report”). The condensed consolidated balance sheet as of December 31, 2019 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. 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 six months ended June 30, 2020 are not necessarily indicative of the operating results to be expected for the full year or any future periods. The Company adopted accounting standards in fiscal year 2020 and they are discussed in the “Recently Adopted Accounting Standards” paragraph. The Company adopted the accounting policy to account for credit losses for accounts receivable as part of the adoption and is included below. There are no other material changes to the significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report. Credit losses for accounts receivable: The Company maintains an allowance for doubtful accounts to reserve for expected uncollectible accounts receivable. The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when the Company identifies specific customers with collectability issues. The Company regularly reviews the allowance by considering historical collectability based on past due status, credit quality, and makes judgments about the creditworthiness of customers based on ongoing credit evaluations. The Company also considers customer-specific information and current economic conditions that may affect a customer’s ability to pay. For the six months ended June 30, 2020, the Company’s assessment of its accounts receivable considered the business and market disruptions caused by the novel coronavirus (“COVID-19”) and emerging credit and collectability trends. The continued volatility in market conditions and evolving shifts in credit trends can be difficult to predict causing volatility that may have a material impact on our allowance for credit losses. See Note 6, for the detailed activity in allowance for doubtful accounts for the three and six months ended June 30, 2020. Reclassification of Prior Year Presentation Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. These reclassifications had no effect on the previously reported condensed consolidated statement of cash flows. Use of Estimates The preparation of the Company’s 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, liabilities, net revenue and expenses. Significant items subject to such estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, estimating variable consideration, determining the stand-alone selling prices of performance obligations, gross versus net revenue recognition, evaluation of customer versus vendor relationships, and other obligations such as sales return reserves and customer incentive programs; the fair value or impairment of goodwill and intangible assets; useful lives of tangible and intangible assets; allowances for doubtful accounts or credit losses; the valuation of inventory, the valuation of deferred income tax Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to the ongoing COVID-19 pandemic. 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) The comprehensive loss is equal to the net loss for the Comprehensive income (loss) includes unrealized gains (loss) on the Company’s short-term investments for the three and six months ended June 30, 2019. Concentrations Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash, cash equivalents and accounts receivable. As of June 30, 2020, two two The Company did not have any customers accounting for 10% or more of the Company’s net accounts receivable as of June 30, 2020 and December 31, 2019. Customers accounting for 10% or more of the Company’s net revenue were as follows: Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Customer B * * * 10 % Customer C 13 % 14 % 13 % 13 % Customer H 10 % * * * * 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 June 30, 2020, the Company had restricted cash of $1.5 million. As of December 31, 2019, the Company had restricted cash of $1.9 million. Content Licensing The Company licenses content for viewing on The Roku Channel. The licensing arrangements can be for a fixed fee and/or advertising revenue share with specific windows of availability. The Company capitalizes the content fees and records a corresponding liability when the license period begins, the cost of the content is known, 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 . The liability is paid in accordance with the contractual terms of the arrangement. As of June 30, 2020 and December 31, 2019, licensed content assets that met these requirements were $8.9 million and $1.7 million, respectively, and are recorded in “Prepaid expenses and other current assets.” The increase in the content asset is due to a change in the mix of content licensed and the period over which such content is available for streaming. The corresponding liability is included in “Accrued liabilities” and is discussed in Note 11. The Company recorded amortization expense of $6.1 million and $0.3 million for the three months ended June 30, 2020 and 2019, respectively, and $12.2 million and $0.8 million for the six months ended June, 30 2020 and 2019, respectively, related to licensed content assets. Recently In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments On January 1, 2020, the Company adopted this guidance using the modified retrospective adoption method and recorded a cumulative-effect adjustment to the beginning balance of accumulated deficit of approximately $1.1 million. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of In March 2019, the FASB issued ASU 2019-02, Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials , in order to align the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization. ASU 2019-02 also requires that an entity reassess estimates of the use of a film in a film group and account for any changes prospectively. In addition, ASU 2019-02 requires that an entity test films and license agreements for program material for impairment at a film group level when the film or license agreements are predominantly monetized with other films and license agreements. O n January 1, 2020, the Company adopted the guidance in ASU 2019-02 . There was no material impact to the Company’s consolidated financial statements. The Company also adopted the following ASUs effective January 1, 2020, none of which had a material impact on the Company’s financial position or results of operation. ASU Description 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 ASU 2018-13 Fair Value Measurements (Topic 820), Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ASU 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 3. REVENUE Revenue disaggregation: The Company’s disaggregated revenues are 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 June 30, 2020 December 31, 2019 Accounts receivable, net $ 306,719 $ 332,673 Contract assets (included in Prepaid expenses and other current assets) $ 5,338 $ 3,588 Deferred revenue: Current 43,940 39,861 Non-current 17,243 15,370 Total deferred revenue $ 61,183 $ 55,231 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 $1.8 million during the six months ended June 30, 2020 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 increased by approximately $6.0 million during the six months ended June 30, 2020 due to the timing of fulfillment of performance obligations. During the six months ended June 30, 2020, the Company recognized revenue of approximately $28.7 million from the amounts deferred as of December 31, 2019. During the six months ended June 30, 2019, the Company recognized revenue of approximately $37.9 million from the amounts deferred as of December 31, 2018. Revenue Allocated to Future Performance Obligations: Revenue allocated to remaining or unsatisfied performance obligations represents estimated 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 $205.5 million 62 |
Business Combination
Business Combination | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Business Combination | 4. business combination On November 8, 2019, the Company acquired all outstanding shares of dataxu, Inc., (“dataxu”) according to the terms and conditions of the Agreement and Plan of Merger, dated as of October 22, 2019 (the “Merger Agreement”). dataxu is a demand-side platform (“DSP”) that enables marketers to plan and buy video ad campaigns. The acquisition of dataxu’s platform complements the Company’s OTT advertising platform and enables marketers to access a single, data-driven software solution to plan, buy, and optimize their ad spend across TV and OTT providers. The total purchase consideration for dataxu was $147.3 million, which consisted of $77.6 million in cash and $69.7 million for the fair value of the Company’s 571,459 shares of common stock. Pursuant to the Merger Agreement, the Company had deposited $18.8 million into an escrow account to secure certain indemnifications and other potential obligations. Purchase Price Allocation The allocation of the purchase consideration to tangible and intangible assets acquired and liabilities assumed is based on estimated fair values and is as follows (in thousands): As of June 30, 2020 Estimated Useful Lives (in years) Assets acquired Current assets $ 50,829 Restricted cash 1,303 Property and equipment, net 4,503 Intangible assets: Developed technology 56,400 6.0 Customer relationships 13,400 4.0 Tradename 400 0.5 Goodwill 71,676 Operating lease right-of-use assets 24,658 Other long-term assets 235 Total assets acquired $ 223,404 Liabilities assumed Current liabilities $ (51,428 ) Operating lease liabilities (24,658 ) Total liabilities assumed $ (76,086 ) Total purchase consideration $ 147,318 The preliminary fair value estimates of the net assets acquired are based upon preliminary calculations and valuations, and those estimates and assumptions regarding certain tangible assets acquired and liabilities assumed, the valuation of intangible assets acquired, income taxes, and goodwill are subject to change as the Company obtains additional information during the measurement period, which usually lasts for up to one year from the acquisition date. The excess of the total consideration over the tangible assets, identifiable intangible assets, and assumed liabilities is recorded as goodwill. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. GOODWILL AND INTANGIBLE ASSETS Goodwill Goodwill represents the excess of purchase consideration in a business combination over the fair value of tangible and intangible assets acquired net of the liabilities assumed. The following table reflects the carrying value of goodwill (in thousands): Carrying Value Balance as of December 31, 2019 $ 74,116 Adjustments (1) (1,058 ) Balance as of June 30, 2020 $ 73,058 (1) The adjustments arise from the resolution of contingencies associated with the dataxu acquisition. Intangible Assets The following table is the summary of Company’s intangible assets (in thousands): As of June 30, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Useful Lives (in years) Developed technology $ 62,367 $ (8,148 ) $ 54,219 5.9 Customer relationships 13,400 (2,233 ) 11,167 4.0 Tradename 400 (400 ) - 0.5 Patents 4,076 (170 ) 3,906 14.0 Intangible assets $ 80,243 $ (10,951 ) $ 69,292 As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Useful Lives (in years) Developed technology $ 62,367 $ (2,860 ) $ 59,507 5.9 Customer relationships 13,400 (558 ) 12,842 4.0 Tradename 400 (133 ) 267 0.5 Patents 4,076 (24 ) 4,052 14.0 Intangible assets $ 80,243 $ (3,575 ) $ 76,668 The Company recorded expenses of $3.6 million and $0.1 million for amortization of intangible assets during the three months ended June 30, 2020 and 2019, respectively. The Company recorded expenses of $7.4 million and $0.3 million for amortization of intangible assets during the six months ended June 30, 2020 and 2019, respectively. In three and six months ended June 30, 2020 and 2019, the Company recorded amortization of developed technology in cost of revenue, platform, cost of revenue, player, research and development, and general and administrative expenses in the consolidated statement of operations and recorded amortization of customer relationships and tradename in sales and marketing expenses in the consolidated statement of operations. The estimated future amortization expense for intangible asset for the next five years and thereafter is as follows (in thousands): Year Ending December 31, 2020 (remaining 6 months) $ 7,111 2021 14,036 2022 13,666 2023 13,108 2024 10,316 Thereafter 11,055 Total $ 69,292 |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Jun. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 6. Balance sheet components Accounts Receivable, Net of allowances —Accounts receivable, net of allowances, consisted of the following (in thousands): As of June 30, 2020 December 31, 2019 Gross accounts receivable $ 325,841 $ 360,194 Allowance for sales returns (5,412 ) (6,550 ) Allowance for sales incentives (8,962 ) (19,476 ) Allowance for doubtful accounts (4,403 ) (1,140 ) Other allowances (345 ) (355 ) Total allowances (19,122 ) (27,521 ) Total Accounts Receivable—net of allowances $ 306,719 $ 332,673 Allowance for Sales Returns —Allowance for sales returns consisted of the following activities (in thousands): Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Balance, beginning of period $ (4,668 ) $ (6,550 ) Charged to revenue (3,959 ) (6,686 ) Utilization of sales return allowance 3,215 7,824 Balance, end of period $ (5,412 ) $ (5,412 ) Allowance for Sales Incentives —Allowance for sales incentives consisted of the following activities (in thousands): Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Balance, beginning of period $ (9,273 ) $ (19,476 ) Charged to revenue (8,248 ) (17,657 ) Utilization of sales incentive allowance 8,559 28,171 Balance, end of period $ (8,962 ) $ (8,962 ) Allowance for Doubtful Accounts —Allowance for doubtful accounts consisted of the following activities (in thousands): Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Balance, beginning of period $ (4,959 ) $ (1,140 ) Impact of adoption of ASU 2016-13 - (1,066 ) Adjusted balance, beginning of period (4,959 ) (2,206 ) Provision for doubtful accounts 273 (2,965 ) Adjustments for recovery and write-off 283 768 Balance, end of period $ (4,403 ) $ (4,403 ) Property and Equipment, Net —Property and equipment, net consisted of the following (in thousands): As of June 30, 2020 December 31, 2019 Computers and equipment $ 27,725 $ 23,834 Leasehold improvements 141,859 93,239 Website and internal-use software 6,510 6,510 Office equipment and furniture 18,645 12,091 Total property and equipment 194,739 135,674 Accumulated depreciation and amortization (41,992 ) (32,412 ) Property and Equipment, net $ 152,747 $ 103,262 Depreciation and amortization expense, for property and equipment assets, for the three months ended June 30, 2020 and 2019 was $5.2 million and $2.7 Accounts Payable and Accrued Liabilities —Accounts payable and accrued liabilities consisted of the following (in thousands): As of June 30, 2020 December 31, 2019 Accounts payable $ 130,601 $ 115,227 Payments due to content publishers 78,255 57,376 Accrued cost of revenue 53,001 58,149 Operating lease liability, current 27,120 17,896 Accrued royalty expense 8,688 18,040 Accrued payroll and related expenses 15,887 14,522 Accrued inventory 9,706 2,892 Content licensing liability 8,903 1,679 Marketing, retail and merchandising costs 11,066 7,624 Accrued legal fees 4,026 3,158 Customer prepayments 4,144 2,669 Taxes and related liabilities 2,914 3,052 Other accrued expenses 9,505 11,290 Total Accounts Payable and Accrued Liabilities $ 363,816 $ 313,574 Deferred Revenue —Deferred revenue consisted of the following (in thousands): As of June 30, 2020 December 31, 2019 Platform, current $ 21,204 $ 18,234 Player, current 22,736 21,627 Total deferred revenue, current 43,940 39,861 Platform, non-current 8,751 6,135 Player, non-current 8,492 9,235 Total deferred revenue, non-current 17,243 15,370 Total Deferred Revenue $ 61,183 $ 55,231 |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 7. FAIR VALUE The Company’s financial assets measured at fair value are as follows (in thousands): June 30, 2020 December 31, 2019 Fair Value Level 1 Fair Value Level 1 Assets: Cash and cash equivalents: Cash $ 814,034 $ 814,034 $ 463,820 $ 463,820 Money market funds 71,791 71,791 51,659 51,659 Restricted cash 1,539 1,539 1,854 1,854 Total assets measured and recorded at fair value $ 887,364 $ 887,364 $ 517,333 $ 517,333 Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal market (or most advantageous market, in the absence of a principal market) for the asset or liability in an orderly transaction between market participants at the measurement date. In measuring fair value, the Company utilizes a fair value hierarchy that prioritizes the inputs used and maximizes the use of observable inputs and minimizes the use of unobservable inputs. 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. Financial assets and liabilities measured using Level 1 inputs include cash equivalents, accounts receivable, prepaid expenses, accounts payable and accrued liabilities. The Company considers all highly liquid investments purchased with an original or remaining maturity of 90 days or less at the date of purchase to be cash equivalents. The Company measured money market funds of $71.8 million and $51.7 million as cash equivalents as of June 30, 2020 and December 31, 2019, 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 did not have Level 2 instruments at June 30, 2020 and December 31, 2019. 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 have Level 3 instruments at June 30, 2020 and December 31, 2019. Assets and liabilities that are measured at fair value on a non-recurring basis Non-financial assets such as goodwill, intangible assets, property, plant, and equipment and operating lease right-of-use assets are evaluated for impairment and adjusted to fair value using Level 3 inputs, only when impairment is recognized. The Company recorded an impairment of $0.2 million and $0.9 million for certain operating lease right-of-use assets during the six months ended June 30, 2020 and the year ended December 31, 2019, respectively. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | 8. LEASES The Company’s operating leases are primarily for office real estate. The leases have remaining lease terms ranging from one year to 10 years and may include options to extend or terminate. The components of lease expense are as follows (in thousands): Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Operating lease cost (1) $ 13,921 $ 5,830 $ 29,122 $ 10,162 Sublease income (899 ) (546 ) (1,685 ) (1,126 ) Net operating lease cost $ 13,022 $ 5,284 $ 27,437 $ 9,036 (1) For the three and six months ended June 30, 2020, variable lease costs were $3.3 million and $5.5 million, respectively. For the three and six months ended June 30, 2019, variable lease costs were not significant. Variable lease costs primarily include common area maintenance charges. Supplemental cash flow information related to leases is as follows (in thousands): Six Months Ended June 30, 2020 June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 15,184 $ 7,440 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,771 $ 83,780 Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate As of June 30, 2020 December 31, 2019 Operating lease right-of-use assets $ 269,900 $ 283,291 Included in accounts payable and accrued liabilities: Operating lease liability, current 27,120 17,896 Operating lease liability, non-current 306,750 301,694 Total operating lease liability $ 333,870 $ 319,590 Weighted average remaining lease term Operating leases (in years) 9.63 9.98 Weighted average discount rate Operating leases 4.65 % 4.65 % Future lease payments under operating leases as of June 30, 2020 were as follows (in thousands): Year ending December 31, Operating Leases 2020 (remaining 6 months) $ 15,891 2021 47,851 2022 44,740 2023 45,421 2024 44,689 Thereafter 246,828 Total future lease payments 445,420 Less: imputed interest (88,238 ) Less: expected tenant improvement allowance (23,312 ) Total $ 333,870 As of June 30, 2020, the Company has additional operating leases, primarily corporate offices, that have not yet commenced of $10.0 million. These operating leases |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 9. DEBT The Company’s outstanding debt as of June 30, 2020 and December 31, 2019 is as follows (in thousands): As of June 30, 2020 December 31, 2019 Amount Effective Interest Rate Amount Effective Interest Rate Term Loan A Facility $ 97,500 2.07 % $ 100,000 3.48 % Less: Debt issuance costs (324 ) (392 ) Net carrying amount $ 97,176 $ 99,608 The carrying amount of debt approximates fair value due to its variable interest rates. The interest expense for three and six months ended June 30, 2020 relating to the Credit Agreement is $0.9 million and $1.5 million, respectively. The Company did not have any outstanding debt as of June 30, 2019. Interest expense for the three and six months ended June 30, 2019 mainly related to amortization of debt issuance costs and was not material. 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”). On the Original Closing Date, the Company terminated the Amended and Restated Loan and Security Agreement that it entered into with Silicon Valley Bank in November 2014 (the “Restated 2014 LSA”). The Credit Agreement provides for (i) a four-year four-year On November 18, 2019, the Company borrowed the Term Loan A facility in the aggregate principal amount of $100.0 million. In March 2020, the Company borrowed the available balance of $69.3 million from the Revolving Credit Facility. For both borrowings, the Company elected an interest rate equal to the adjusted one-month LIBOR rate plus an applicable margin of 1.75% based on the Company’s secured leverage ratio. In May 2020, the Company repaid the outstanding balance on the Revolving Credit Facility. Loans under the Term Loan A Facility amortize in equal quarterly installments beginning on March 31, 2020, 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 or $1.25 million and (ii) thereafter, 2.50% of the drawn principal amount of the Term Loan Facility or $2.5 million, with the remaining balance payable on the maturity date of the Term Loan A Facility in February 2023. The Revolving Credit Facility may be borrowed, repaid and reborrowed until the fourth anniversary of the Closing Date in February 2023, at which time all outstanding balances of the Revolving Credit Facility are due to be repaid. The Company had outstanding letters of credit against the Revolving Credit Facility of $29.8 million and $30.7 million as of June 30, 2020 and December 31, 2019, respectively. 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 certain circumstances would be 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 June 30, 2020, the Company was in compliance with all of the covenants of the Credit Agreement. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | 10. STOCKHOLDERS’ EQUITY At-the-Market Offerings On May 13, 2020, the Company entered into an Equity Distribution Agreement with Morgan Stanley & Co. LLC and Citigroup Global Markets Inc., as its sales agents, pursuant to which the Company could offer and sell from time to time up to an aggregate of 4.0 million shares of the Company’s Class A common stock. As of June 30, 2020, the Company received gross proceeds of $354.4 million from the sale of 3.0 million of these shares at an average selling price of $117.98 per share and incurred issuance costs of $4.8 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 June 30, 2020 and December 31, 2019, 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. Common Stock Reserved for Future Issuance As of June 30, 2020, the Company had reserved shares of common stock for issuance as follows (in thousands): As of June 30, 2020 Common stock awards granted under equity incentive plans 14,365 Common stock awards available for issuance under the 2017 Employee Stock Purchase Plan* 5,089 Common stock awards available for issuance under the 2017 Equity Incentive Plan 22,567 Total reserved shares of common stock 42,021 * The Company has not issued any common stock pursuant to the 2017 Employee Stock Purchase Plan. Equity Incentive Plans The Company has two equity incentive plans, the 2008 Equity Incentive Plan (the “2008 Plan”) and the 2017 Equity Incentive Plan (the “2017 Plan”). The 2017 Plan became effective September 2017 in connection with the IPO. No further shares have been issued under the 2008 Plan. The 2017 Plan provides for the grant of incentive stock options to the Company’s employees and for the grant of non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, performance cash awards, and other forms of equity compensation to the Company’s employees, directors and consultants. Restricted stock units granted under the plan are subject to continuous service. Options granted under the plans are granted at a price per share equivalent to the fair market value on the date of grant. Restricted Stock Units Restricted stock unit activity for the six months ended June 30, 2020 is as follows (in thousands, except per share data): Number of Shares Weighted Average Grant Date Fair Value Per Share Balance, December 31, 2019 - outstanding 4,544 $ 67.30 Awarded 586 124.63 Released (576 ) 65.27 Forfeited (185 ) 64.63 Balance, June 30, 2020 - outstanding 4,369 $ 75.37 The grant-date fair value of restricted stock units granted during the six months ended June 30, 2020 and 2019 was $73.0 million and $62.0 million, respectively. The fair value of restricted stock units that vested during the three months ended June 30, 2020 and 2019 was $20.5 million and $10.0 million, respectively, and during the six months ended June 30, 2020 and 2019 was $37.6 million and $17.6 million, respectively. Total unrecognized compensation cost related to restricted stock units as of June 30, 2020 was $277.6 million, which the Company expects to recognize over 2.46 years. Stock Options The following table summarizes the Company’s stock option activities under the 2008 Plan and 2017 Plan (in thousands, except 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, 2019 - outstanding 11,124 $ 14.84 6.2 — Granted 21 113.31 — $ 38.95 Exercised (1,107 ) 5.31 — — Forfeited and expired (42 ) 8.45 — — Balance, June 30, 2020 - outstanding 9,996 $ 16.13 5.8 — $ 1,003,651 Options exercisable at June 30, 2020 6,826 $ 6.66 5.0 — $ 750,064 The intrinsic value for options exercised during the three months ended June 30, 2020 and 2019, was million, respectively, and during the six months ended June 30, 2020 and 2019 was $119.7 million and $245.5 million, respectively. Intrinsic value represents the difference between the fair values of the Company’s common stock and the options’ exercise price on the date of grant. As of , 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 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 six months ended June 30, 2020 and 2019 (in thousands): Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Cost of platform revenue $ 232 $ 59 $ 443 $ 118 Cost of player revenue 310 246 648 489 Research and development 13,348 9,258 26,603 17,790 Sales and marketing 9,615 4,974 19,672 10,140 General and administrative 6,531 4,134 13,075 7,998 Total stock-based compensation $ 30,036 $ 18,671 $ 60,441 $ 36,535 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 Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Dividend rate — — — — Expected term (in years) 5.0 - 5.27 5.0 - 5.27 5.0 - 5.27 5.0 - 5.27 Risk-free interest rate 0.31 - 0.37% 1.83 - 2.31% 0.31 - 1.67% 1.83 - 2.56% Expected volatility 37.9 - 38.6% 36 % 35.8 - 38.6% 36 % |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. COMMITMENTS AND CONTINGENCIES Manufacturing Purchase Commitments The Company has various manufacturing contracts with vendors in the conduct of the normal course of its business. In order to manage future demand for our products, the Company enters into agreements with manufacturers and suppliers to procure inventory based upon certain criteria and timing. Some of these commitments are non-cancelable. The Company records a liability for non-cancelable purchase commitments in excess of projected demand forecasts. Obligations in excess of demand were not calculated to be material as of June 30, 2020. The Company recorded $0.3 million for Content License Purchase Commitments At June 30, 2020 and December 31, 2019, the Company recorded $8.9 million and $1.7 million, respectively, as obligations in “Accrued liabilities” for licensed content that is available for streaming. The increase in content liability is due to change in the mix of content licensed and the period over which this content is available for streaming. The Company also enters into contracts with content publishers to acquire content in the future. Some of these commitments are non-cancelable. As of June 30, 2020, the Company had $37.4 million in commitments with content publishers that includes amounts already recognized as liability for content available for streaming. Letters of Credit As of June 30, 2020 and December 31, 2019, the Company had irrevocable letters of credit outstanding in the amount of $31.6 million and $31.8 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 In the ordinary course of business, we enter into agreements in which we may agree to indemnify business partners, customers, suppliers, vendors, lessors, business partners and other parties with respect to certain matters, including losses resulting from claims of intellectual property infringement, damages to property or persons, business losses, or other liabilities. These indemnity provisions generally survive termination or expiration of the agreements in which they appear. In addition, we have entered into indemnification agreements with our directors, executive officers and other officers that will require us to indemnify them against liabilities that may arise by reason of their status or service as directors, officers or employees. To date, the Company has not incurred any material costs as a result of such obligations. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. INCOME TAXES Income tax expense for the three months ended June 30, 2020 was $0.5 million as compared to income tax benefit of $0.4 million for the three months ended June 30, 2019. Income tax expense for the six months ended June 30, 2020 was $0.3 million as compared to income tax benefit of $0.5 million for six months ended June 30, 2019. The income tax expense and benefit for the three and six months ended June 30, 2020 and 2019, were primarily attributable to non-U.S. tax benefit associated with the Company's non-U.S. operations. Based on the available objective evidence during the three months ended June 30, 2020, 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. The tax benefit related to stock-based compensation expense for all periods presented was not material. 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 June 30, 2020, 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 UK, China, India, Netherlands, and Denmark. On June 29, 2020, California enacted legislative changes that impose an annual cap of $5 million on the amount of business incentive tax credits the Company can utilize in California effective for tax years 2020 through 2022. The legislation has no impact to the Company’s tax provision due to our full valuation allowance. |
Net Loss Per Share
Net Loss Per Share | 6 Months Ended |
Jun. 30, 2020 | |
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 Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Numerator: Net loss $ (43,148 ) $ (9,333 ) $ (97,760 ) $ (19,065 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 122,614 114,572 121,397 112,734 Net loss per share, basic and diluted $ (0.35 ) $ (0.08 ) $ (0.81 ) $ (0.17 ) 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 Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Equity awards to purchase common stock 14,365 16,595 14,365 16,595 Unvested shares of common stock issued upon early exercise of stock options and business acquisition 9 45 9 45 Total 14,374 16,640 14,374 16,640 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | 14. SEGMENT INFORMATION The Company is organized into two reportable segments as follows: Platform Platform revenue includes sale of advertising and related services, subscription and transaction revenue shares, sales of branded channel buttons on remote controls and licensing arrangements with TV brands and service operators. Player Player revenue is generated from the sale of streaming media players, audio products and accessories through retailers and distributors, as well as directly to customers through the Company’s website. Customers accounting for 10% or more of segment revenue were as follows: Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Platform segment revenue Customer D * * * 10 % Customer H 15 % * 14 % * Player segment revenue Customer A * 14 % 11 % 16 % Customer B 18 % 17 % 16 % 19 % Customer C 38 % 40 % 42 % 38 % * Less than 10% of segment revenue Substantially all of the Company’s assets were held in the United States (“U.S.”) and were attributable to the operations in the U.S. as of June 30, 2020 and December 31, 2019. Revenue in international markets |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
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, 2019, filed with the SEC on March 2, 2020 (the “Annual Report”). The condensed consolidated balance sheet as of December 31, 2019 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. 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 six months ended June 30, 2020 are not necessarily indicative of the operating results to be expected for the full year or any future periods. The Company adopted accounting standards in fiscal year 2020 and they are discussed in the “Recently Adopted Accounting Standards” paragraph. The Company adopted the accounting policy to account for credit losses for accounts receivable as part of the adoption and is included below. There are no other material changes to the significant accounting policies as compared to the significant accounting policies described in the Company’s Annual Report. Credit losses for accounts receivable: The Company maintains an allowance for doubtful accounts to reserve for expected uncollectible accounts receivable. The Company assesses collectability by reviewing accounts receivable on a collective basis where similar characteristics exist and on an individual basis when the Company identifies specific customers with collectability issues. The Company regularly reviews the allowance by considering historical collectability based on past due status, credit quality, and makes judgments about the creditworthiness of customers based on ongoing credit evaluations. The Company also considers customer-specific information and current economic conditions that may affect a customer’s ability to pay. For the six months ended June 30, 2020, the Company’s assessment of its accounts receivable considered the business and market disruptions caused by the novel coronavirus (“COVID-19”) and emerging credit and collectability trends. The continued volatility in market conditions and evolving shifts in credit trends can be difficult to predict causing volatility that may have a material impact on our allowance for credit losses. See Note 6, for the detailed activity in allowance for doubtful accounts for the three and six months ended June 30, 2020. |
Reclassification of Prior Year Presentation | Reclassification of Prior Year Presentation Certain amounts in the prior period financial statements have been reclassified to conform to the presentation of the current period financial statements. These reclassifications had no effect on the previously reported condensed consolidated statement of cash flows. |
Use of Estimates | Use of Estimates The preparation of the Company’s 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, liabilities, net revenue and expenses. Significant items subject to such estimates and assumptions include: for revenue recognition, determining the nature and timing of satisfaction of performance obligations, estimating variable consideration, determining the stand-alone selling prices of performance obligations, gross versus net revenue recognition, evaluation of customer versus vendor relationships, and other obligations such as sales return reserves and customer incentive programs; the fair value or impairment of goodwill and intangible assets; useful lives of tangible and intangible assets; allowances for doubtful accounts or credit losses; the valuation of inventory, the valuation of deferred income tax Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties, including uncertainty in the current economic environment due to the ongoing COVID-19 pandemic. |
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) The comprehensive loss is equal to the net loss for the Comprehensive income (loss) includes unrealized gains (loss) on the Company’s short-term investments for the three and six months ended June 30, 2019. |
Concentrations | Concentrations Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash, cash equivalents and accounts receivable. As of June 30, 2020, two two The Company did not have any customers accounting for 10% or more of the Company’s net accounts receivable as of June 30, 2020 and December 31, 2019. Customers accounting for 10% or more of the Company’s net revenue were as follows: Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Customer B * * * 10 % Customer C 13 % 14 % 13 % 13 % Customer H 10 % * * * * 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 June 30, 2020, the Company had restricted cash of $1.5 million. As of December 31, 2019, the Company had restricted cash of $1.9 million. |
Content Licensing | Content Licensing The Company licenses content for viewing on The Roku Channel. The licensing arrangements can be for a fixed fee and/or advertising revenue share with specific windows of availability. The Company capitalizes the content fees and records a corresponding liability when the license period begins, the cost of the content is known, 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 . The liability is paid in accordance with the contractual terms of the arrangement. As of June 30, 2020 and December 31, 2019, licensed content assets that met these requirements were $8.9 million and $1.7 million, respectively, and are recorded in “Prepaid expenses and other current assets.” The increase in the content asset is due to a change in the mix of content licensed and the period over which such content is available for streaming. The corresponding liability is included in “Accrued liabilities” and is discussed in Note 11. The Company recorded amortization expense of $6.1 million and $0.3 million for the three months ended June 30, 2020 and 2019, respectively, and $12.2 million and $0.8 million for the six months ended June, 30 2020 and 2019, respectively, related to licensed content assets. |
Recently Adopted Accounting Standards and Recently Issued Accounting Pronouncements Not Yet Adopted | Recently In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments On January 1, 2020, the Company adopted this guidance using the modified retrospective adoption method and recorded a cumulative-effect adjustment to the beginning balance of accumulated deficit of approximately $1.1 million. The measurement of credit losses for newly recognized financial assets and subsequent changes in the allowance for credit losses are recorded in the statements of In March 2019, the FASB issued ASU 2019-02, Entertainment—Films—Other Assets—Film Costs (Subtopic 926-20) and Entertainment—Broadcasters—Intangibles—Goodwill and Other (Subtopic 920-350): Improvements to Accounting for Costs of Films and License Agreements for Program Materials , in order to align the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization. ASU 2019-02 also requires that an entity reassess estimates of the use of a film in a film group and account for any changes prospectively. In addition, ASU 2019-02 requires that an entity test films and license agreements for program material for impairment at a film group level when the film or license agreements are predominantly monetized with other films and license agreements. O n January 1, 2020, the Company adopted the guidance in ASU 2019-02 . There was no material impact to the Company’s consolidated financial statements. The Company also adopted the following ASUs effective January 1, 2020, none of which had a material impact on the Company’s financial position or results of operation. ASU Description 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 ASU 2018-13 Fair Value Measurements (Topic 820), Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ASU 2017-04 Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In March 2020, FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Recently Issued Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
Fair Value | The Company’s financial assets measured at fair value are as follows (in thousands): June 30, 2020 December 31, 2019 Fair Value Level 1 Fair Value Level 1 Assets: Cash and cash equivalents: Cash $ 814,034 $ 814,034 $ 463,820 $ 463,820 Money market funds 71,791 71,791 51,659 51,659 Restricted cash 1,539 1,539 1,854 1,854 Total assets measured and recorded at fair value $ 887,364 $ 887,364 $ 517,333 $ 517,333 Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal market (or most advantageous market, in the absence of a principal market) for the asset or liability in an orderly transaction between market participants at the measurement date. In measuring fair value, the Company utilizes a fair value hierarchy that prioritizes the inputs used and maximizes the use of observable inputs and minimizes the use of unobservable inputs. 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. Financial assets and liabilities measured using Level 1 inputs include cash equivalents, accounts receivable, prepaid expenses, accounts payable and accrued liabilities. The Company considers all highly liquid investments purchased with an original or remaining maturity of 90 days or less at the date of purchase to be cash equivalents. The Company measured money market funds of $71.8 million and $51.7 million as cash equivalents as of June 30, 2020 and December 31, 2019, 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 did not have Level 2 instruments at June 30, 2020 and December 31, 2019. 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 have Level 3 instruments at June 30, 2020 and December 31, 2019. Assets and liabilities that are measured at fair value on a non-recurring basis Non-financial assets such as goodwill, intangible assets, property, plant, and equipment and operating lease right-of-use assets are evaluated for impairment and adjusted to fair value using Level 3 inputs, only when impairment is recognized. The Company recorded an impairment of $0.2 million and $0.9 million for certain operating lease right-of-use assets during the six months ended June 30, 2020 and the year ended December 31, 2019, respectively. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Customer B * * * 10 % Customer C 13 % 14 % 13 % 13 % Customer H 10 % * * * * less than 10% |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Contract Balances | Contract balances include the following (in thousands): As of June 30, 2020 December 31, 2019 Accounts receivable, net $ 306,719 $ 332,673 Contract assets (included in Prepaid expenses and other current assets) $ 5,338 $ 3,588 Deferred revenue: Current 43,940 39,861 Non-current 17,243 15,370 Total deferred revenue $ 61,183 $ 55,231 |
Business Combination (Tables)
Business Combination (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Allocation of Purchase Consideration to Tangible and Intangible Assets Acquired and Liabilities Assumed | The allocation of the purchase consideration to tangible and intangible assets acquired and liabilities assumed is based on estimated fair values and is as follows (in thousands): As of June 30, 2020 Estimated Useful Lives (in years) Assets acquired Current assets $ 50,829 Restricted cash 1,303 Property and equipment, net 4,503 Intangible assets: Developed technology 56,400 6.0 Customer relationships 13,400 4.0 Tradename 400 0.5 Goodwill 71,676 Operating lease right-of-use assets 24,658 Other long-term assets 235 Total assets acquired $ 223,404 Liabilities assumed Current liabilities $ (51,428 ) Operating lease liabilities (24,658 ) Total liabilities assumed $ (76,086 ) Total purchase consideration $ 147,318 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Carrying Value of Goodwill | The following table reflects the carrying value of goodwill (in thousands): Carrying Value Balance as of December 31, 2019 $ 74,116 Adjustments (1) (1,058 ) Balance as of June 30, 2020 $ 73,058 (1) The adjustments arise from the resolution of contingencies associated with the dataxu acquisition. |
Summary of Intangible Assets | The following table is the summary of Company’s intangible assets (in thousands): As of June 30, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Useful Lives (in years) Developed technology $ 62,367 $ (8,148 ) $ 54,219 5.9 Customer relationships 13,400 (2,233 ) 11,167 4.0 Tradename 400 (400 ) - 0.5 Patents 4,076 (170 ) 3,906 14.0 Intangible assets $ 80,243 $ (10,951 ) $ 69,292 As of December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Useful Lives (in years) Developed technology $ 62,367 $ (2,860 ) $ 59,507 5.9 Customer relationships 13,400 (558 ) 12,842 4.0 Tradename 400 (133 ) 267 0.5 Patents 4,076 (24 ) 4,052 14.0 Intangible assets $ 80,243 $ (3,575 ) $ 76,668 |
Schedule of Estimated Future Amortization Expense for Intangible Asset | The estimated future amortization expense for intangible asset for the next five years and thereafter is as follows (in thousands): Year Ending December 31, 2020 (remaining 6 months) $ 7,111 2021 14,036 2022 13,666 2023 13,108 2024 10,316 Thereafter 11,055 Total $ 69,292 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts Receivable, Net of Allowances | Accounts receivable, net of allowances, consisted of the following (in thousands): As of June 30, 2020 December 31, 2019 Gross accounts receivable $ 325,841 $ 360,194 Allowance for sales returns (5,412 ) (6,550 ) Allowance for sales incentives (8,962 ) (19,476 ) Allowance for doubtful accounts (4,403 ) (1,140 ) Other allowances (345 ) (355 ) Total allowances (19,122 ) (27,521 ) Total Accounts Receivable—net of allowances $ 306,719 $ 332,673 |
Schedule of Allowance for Sales Returns | Allowance for sales returns consisted of the following activities (in thousands): Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Balance, beginning of period $ (4,668 ) $ (6,550 ) Charged to revenue (3,959 ) (6,686 ) Utilization of sales return allowance 3,215 7,824 Balance, end of period $ (5,412 ) $ (5,412 ) |
Schedule of Allowance for Sales Incentives | Allowance for sales incentives consisted of the following activities (in thousands): Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Balance, beginning of period $ (9,273 ) $ (19,476 ) Charged to revenue (8,248 ) (17,657 ) Utilization of sales incentive allowance 8,559 28,171 Balance, end of period $ (8,962 ) $ (8,962 ) |
Schedule of Allowance for Doubtful Accounts | Allowance for doubtful accounts consisted of the following activities (in thousands): Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 Balance, beginning of period $ (4,959 ) $ (1,140 ) Impact of adoption of ASU 2016-13 - (1,066 ) Adjusted balance, beginning of period (4,959 ) (2,206 ) Provision for doubtful accounts 273 (2,965 ) Adjustments for recovery and write-off 283 768 Balance, end of period $ (4,403 ) $ (4,403 ) |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): As of June 30, 2020 December 31, 2019 Computers and equipment $ 27,725 $ 23,834 Leasehold improvements 141,859 93,239 Website and internal-use software 6,510 6,510 Office equipment and furniture 18,645 12,091 Total property and equipment 194,739 135,674 Accumulated depreciation and amortization (41,992 ) (32,412 ) Property and Equipment, net $ 152,747 $ 103,262 |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consisted of the following (in thousands): As of June 30, 2020 December 31, 2019 Accounts payable $ 130,601 $ 115,227 Payments due to content publishers 78,255 57,376 Accrued cost of revenue 53,001 58,149 Operating lease liability, current 27,120 17,896 Accrued royalty expense 8,688 18,040 Accrued payroll and related expenses 15,887 14,522 Accrued inventory 9,706 2,892 Content licensing liability 8,903 1,679 Marketing, retail and merchandising costs 11,066 7,624 Accrued legal fees 4,026 3,158 Customer prepayments 4,144 2,669 Taxes and related liabilities 2,914 3,052 Other accrued expenses 9,505 11,290 Total Accounts Payable and Accrued Liabilities $ 363,816 $ 313,574 |
Schedule of Deferred Revenue | Deferred revenue consisted of the following (in thousands): As of June 30, 2020 December 31, 2019 Platform, current $ 21,204 $ 18,234 Player, current 22,736 21,627 Total deferred revenue, current 43,940 39,861 Platform, non-current 8,751 6,135 Player, non-current 8,492 9,235 Total deferred revenue, non-current 17,243 15,370 Total Deferred Revenue $ 61,183 $ 55,231 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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): June 30, 2020 December 31, 2019 Fair Value Level 1 Fair Value Level 1 Assets: Cash and cash equivalents: Cash $ 814,034 $ 814,034 $ 463,820 $ 463,820 Money market funds 71,791 71,791 51,659 51,659 Restricted cash 1,539 1,539 1,854 1,854 Total assets measured and recorded at fair value $ 887,364 $ 887,364 $ 517,333 $ 517,333 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense are as follows (in thousands): Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Operating lease cost (1) $ 13,921 $ 5,830 $ 29,122 $ 10,162 Sublease income (899 ) (546 ) (1,685 ) (1,126 ) Net operating lease cost $ 13,022 $ 5,284 $ 27,437 $ 9,036 (1) For the three and six months ended June 30, 2020, variable lease costs were $3.3 million and $5.5 million, respectively. For the three and six months ended June 30, 2019, variable lease costs were not significant. Variable lease costs primarily include common area maintenance charges. |
Schedule of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to leases is as follows (in thousands): Six Months Ended June 30, 2020 June 30, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 15,184 $ 7,440 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 2,771 $ 83,780 |
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 June 30, 2020 December 31, 2019 Operating lease right-of-use assets $ 269,900 $ 283,291 Included in accounts payable and accrued liabilities: Operating lease liability, current 27,120 17,896 Operating lease liability, non-current 306,750 301,694 Total operating lease liability $ 333,870 $ 319,590 Weighted average remaining lease term Operating leases (in years) 9.63 9.98 Weighted average discount rate Operating leases 4.65 % 4.65 % |
Schedule of Future Lease Payments under Operating Leases | Future lease payments under operating leases as of June 30, 2020 were as follows (in thousands): Year ending December 31, Operating Leases 2020 (remaining 6 months) $ 15,891 2021 47,851 2022 44,740 2023 45,421 2024 44,689 Thereafter 246,828 Total future lease payments 445,420 Less: imputed interest (88,238 ) Less: expected tenant improvement allowance (23,312 ) Total $ 333,870 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The Company’s outstanding debt as of June 30, 2020 and December 31, 2019 is as follows (in thousands): As of June 30, 2020 December 31, 2019 Amount Effective Interest Rate Amount Effective Interest Rate Term Loan A Facility $ 97,500 2.07 % $ 100,000 3.48 % Less: Debt issuance costs (324 ) (392 ) Net carrying amount $ 97,176 $ 99,608 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
Schedule of Reserved Shares of Common Stock for Issuance | As of June 30, 2020, the Company had reserved shares of common stock for issuance as follows (in thousands): As of June 30, 2020 Common stock awards granted under equity incentive plans 14,365 Common stock awards available for issuance under the 2017 Employee Stock Purchase Plan* 5,089 Common stock awards available for issuance under the 2017 Equity Incentive Plan 22,567 Total reserved shares of common stock 42,021 * The Company has not issued any common stock pursuant to the 2017 Employee Stock Purchase Plan. |
Summary of Restricted Stock Unit Activity | Restricted stock unit activity for the six months ended June 30, 2020 is as follows (in thousands, except per share data): Number of Shares Weighted Average Grant Date Fair Value Per Share Balance, December 31, 2019 - outstanding 4,544 $ 67.30 Awarded 586 124.63 Released (576 ) 65.27 Forfeited (185 ) 64.63 Balance, June 30, 2020 - outstanding 4,369 $ 75.37 |
Schedule of Stock Option Activity | The following table summarizes the Company’s stock option activities under the 2008 Plan and 2017 Plan (in thousands, except 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, 2019 - outstanding 11,124 $ 14.84 6.2 — Granted 21 113.31 — $ 38.95 Exercised (1,107 ) 5.31 — — Forfeited and expired (42 ) 8.45 — — Balance, June 30, 2020 - outstanding 9,996 $ 16.13 5.8 — $ 1,003,651 Options exercisable at June 30, 2020 6,826 $ 6.66 5.0 — $ 750,064 |
Summary of Stock-based Compensation Expense | The following table shows total stock-based compensation expense for the three and six months ended June 30, 2020 and 2019 (in thousands): Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Cost of platform revenue $ 232 $ 59 $ 443 $ 118 Cost of player revenue 310 246 648 489 Research and development 13,348 9,258 26,603 17,790 Sales and marketing 9,615 4,974 19,672 10,140 General and administrative 6,531 4,134 13,075 7,998 Total stock-based compensation $ 30,036 $ 18,671 $ 60,441 $ 36,535 |
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 Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Dividend rate — — — — Expected term (in years) 5.0 - 5.27 5.0 - 5.27 5.0 - 5.27 5.0 - 5.27 Risk-free interest rate 0.31 - 0.37% 1.83 - 2.31% 0.31 - 1.67% 1.83 - 2.56% Expected volatility 37.9 - 38.6% 36 % 35.8 - 38.6% 36 % |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Numerator: Net loss $ (43,148 ) $ (9,333 ) $ (97,760 ) $ (19,065 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 122,614 114,572 121,397 112,734 Net loss per share, basic and diluted $ (0.35 ) $ (0.08 ) $ (0.81 ) $ (0.17 ) |
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 Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Equity awards to purchase common stock 14,365 16,595 14,365 16,595 Unvested shares of common stock issued upon early exercise of stock options and business acquisition 9 45 9 45 Total 14,374 16,640 14,374 16,640 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Customer Accounting for 10% or More of Segment Revenue | Customers accounting for 10% or more of segment revenue were as follows: Three Months Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Platform segment revenue Customer D * * * 10 % Customer H 15 % * 14 % * Player segment revenue Customer A * 14 % 11 % 16 % Customer B 18 % 17 % 16 % 19 % Customer C 38 % 40 % 42 % 38 % |
The Company - Additional Inform
The Company - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2020segment | |
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 - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2020USD ($)Customer | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)FinancialInstitutionCustomer | Jun. 30, 2019USD ($) | Dec. 31, 2019USD ($)FinancialInstitutionCustomer | Jan. 01, 2020USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Restricted cash | $ 1,539 | $ 868 | $ 1,539 | $ 868 | $ 1,854 | |
Content licensing expenses | 8,900 | 1,700 | ||||
Amortization of content license assets | 6,100 | $ 300 | 12,182 | $ 760 | ||
Cumulative-effect adjustment to accumulated deficit | $ 412,659 | $ 412,659 | $ 313,833 | |||
Accounting Standards Update 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | Revision of Prior Period, Adjustment | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Cumulative-effect adjustment to accumulated deficit | $ 1,100 | |||||
Customer Concentration Risk | Net Accounts Receivable | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of customers accounted for 10% or more | Customer | 0 | 0 | 0 | |||
Customer 1 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of financial institutions which manage cash balances | FinancialInstitution | 1 | 1 | ||||
Customer 1 | Cash and Cash Equivalents | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Percentage of cash and cash equivalents balances | 52.00% | 65.00% | ||||
Customer 2 | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of financial institutions which manage cash balances | FinancialInstitution | 1 | 1 | ||||
Customer 2 | Cash and Cash Equivalents | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Percentage of cash and cash equivalents balances | 25.00% | 34.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedules of Customer Concentration by Risk Factor (Details) - Customer Concentration Risk - Net Revenue | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Customer B | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 10.00% | |||
Customer C | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 13.00% | 14.00% | 13.00% | 13.00% |
Customer H | ||||
Concentration Risk [Line Items] | ||||
Concentration risk | 10.00% |
Revenue - Additional Informatio
Revenue - Additional Information (Details) $ in Millions | 6 Months Ended | |
Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | |
Revenue From Contract With Customer [Abstract] | ||
Number of reportable segment | segment | 2 | |
Contract with customer assets increase (decrease) | $ 1.8 | |
Increase (decrease) in deferred revenue | 6 | |
Deferred revenue recognized | 28.7 | $ 37.9 |
Estimated contracted revenue | $ 205.5 | |
Revenue, remaining performance obligation, expected timing of satisfaction, Description | Revenue allocated to remaining or unsatisfied performance obligations represents estimated 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 $205.5 million as of June 30, 2020 of which we expect to recognize approximately 62% over the next 12 months and the remainder thereafter. | |
Revenue remaining performance obligation percentage of revenue expected to be recognized | 62.00% |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Schedule Of Contract Balances [Line Items] | ||
Accounts receivable, net | $ 306,719 | $ 332,673 |
Deferred revenue: | ||
Deferred revenue, current | 43,940 | 39,861 |
Deferred revenue, non-current | 17,243 | 15,370 |
Total deferred revenue | 61,183 | 55,231 |
Prepaid Expenses and Other Current Assets | ||
Schedule Of Contract Balances [Line Items] | ||
Contract assets (included in Prepaid expenses and other current assets) | $ 5,338 | $ 3,588 |
Business Combination - Addition
Business Combination - Additional Information (Details) - Boston-based Dataxu, Inc, Demand-Side Platform (DSP) - USD ($) shares in Millions, $ in Millions | Nov. 08, 2019 | Mar. 31, 2020 |
Business Acquisition [Line Items] | ||
Business combination, date of merger agreement | Oct. 22, 2019 | |
Purchase consideration | $ 147.3 | |
Business combination, aggregate cash consideration | 77.6 | |
Business combination, aggregate fair value | 69.7 | |
Escrow deposit related to acquisition | $ 18.8 | |
Escrow disbursements related to acquisition | $ 3.3 | |
Common Stock | ||
Business Acquisition [Line Items] | ||
Shares of common stock issued | 571,459 |
Business Combination - Schedule
Business Combination - Schedule of Allocation of Purchase Consideration to Tangible and Intangible Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Assets acquired | ||
Goodwill | $ 73,058 | $ 74,116 |
Boston-based Dataxu, Inc, Demand-Side Platform (DSP) | ||
Assets acquired | ||
Current assets | 50,829 | |
Restricted cash | 1,303 | |
Property and equipment, net | 4,503 | |
Goodwill | 71,676 | |
Operating lease right-of-use assets | 24,658 | |
Other long-term assets | 235 | |
Total assets acquired | 223,404 | |
Liabilities assumed | ||
Current liabilities | (51,428) | |
Operating lease liabilities | (24,658) | |
Total liabilities assumed | (76,086) | |
Total purchase consideration | 147,318 | |
Boston-based Dataxu, Inc, Demand-Side Platform (DSP) | Developed Technology | ||
Assets acquired | ||
Intangible assets | $ 56,400 | |
Liabilities assumed | ||
Estimated Useful Lives (in years) | 6 years | |
Boston-based Dataxu, Inc, Demand-Side Platform (DSP) | Customer Relationships | ||
Assets acquired | ||
Intangible assets | $ 13,400 | |
Liabilities assumed | ||
Estimated Useful Lives (in years) | 4 years | |
Boston-based Dataxu, Inc, Demand-Side Platform (DSP) | Tradename | ||
Assets acquired | ||
Intangible assets | $ 400 | |
Liabilities assumed | ||
Estimated Useful Lives (in years) | 6 months |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Carrying Value of Goodwill (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020USD ($) | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Balance as of December 31, 2019 | $ 74,116 | |
Adjustments | (1,058) | [1] |
Balance as of June 30, 2020 | $ 73,058 | |
[1] | The adjustments arise from the resolution of contingencies associated with the dataxu acquisition. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 80,243 | $ 80,243 |
Accumulated Amortization | (10,951) | (3,575) |
Net Carrying Amount | 69,292 | 76,668 |
Developed Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 62,367 | 62,367 |
Accumulated Amortization | (8,148) | (2,860) |
Net Carrying Amount | $ 54,219 | $ 59,507 |
Weighted-Average Useful Lives (in years) | 5 years 10 months 24 days | 5 years 10 months 24 days |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 13,400 | $ 13,400 |
Accumulated Amortization | (2,233) | (558) |
Net Carrying Amount | $ 11,167 | $ 12,842 |
Weighted-Average Useful Lives (in years) | 4 years | 4 years |
Tradename | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 400 | $ 400 |
Accumulated Amortization | $ (400) | (133) |
Net Carrying Amount | $ 267 | |
Weighted-Average Useful Lives (in years) | 6 months | 6 months |
Patents | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,076 | $ 4,076 |
Accumulated Amortization | (170) | (24) |
Net Carrying Amount | $ 3,906 | $ 4,052 |
Weighted-Average Useful Lives (in years) | 14 years | 14 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Boston-based Dataxu, Inc, Demand-Side Platform (DSP) | ||||
Finite Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 3.6 | $ 0.1 | $ 7.4 | $ 0.3 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense for Intangible Asset (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2020 (remaining 6 months) | $ 7,111 | |
2021 | 14,036 | |
2022 | 13,666 | |
2023 | 13,108 | |
2024 | 10,316 | |
Thereafter | 11,055 | |
Net Carrying Amount | $ 69,292 | $ 76,668 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Accounts Receivable, Net of Allowances (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Gross accounts receivable | $ 325,841 | $ 360,194 | |
Allowance for accounts receivable | (19,122) | (27,521) | |
Total Accounts Receivable—net of allowances | 306,719 | 332,673 | |
Allowance for Sales Returns | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Allowance for accounts receivable | (5,412) | $ (4,668) | (6,550) |
Allowance for Sales Incentives | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Allowance for accounts receivable | (8,962) | (9,273) | (19,476) |
Allowance for Doubtful Accounts | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Allowance for accounts receivable | (4,403) | $ (4,959) | (1,140) |
Other Allowances | |||
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Allowance for accounts receivable | $ (345) | $ (355) |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Allowance for Sales Returns (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of period | $ (27,521) | |
Balance, end of period | $ (19,122) | (19,122) |
Allowance for Sales Returns | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of period | (4,668) | (6,550) |
Charged to revenue | (3,959) | (6,686) |
Utilization of sales return/incentive allowance | 3,215 | 7,824 |
Balance, end of period | $ (5,412) | $ (5,412) |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Allowance for Sales Incentives (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of period | $ (27,521) | |
Balance, end of period | $ (19,122) | (19,122) |
Allowance for Sales Incentives | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of period | (9,273) | (19,476) |
Charged to revenue | (8,248) | (17,657) |
Utilization of sales return/incentive allowance | 8,559 | 28,171 |
Balance, end of period | $ (8,962) | $ (8,962) |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of period | $ (27,521) | |
Balance, end of period | $ (19,122) | (19,122) |
Allowance for Doubtful Accounts | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance, beginning of period | (4,959) | (1,140) |
Adjusted balance, beginning of period | (4,959) | (2,206) |
Charged to revenue | 273 | (2,965) |
Adjustments for recovery and write-off | 283 | 768 |
Balance, end of period | $ (4,403) | (4,403) |
Allowance for Doubtful Accounts | ASU 2016-13 | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Impact of adoption of ASU 2016-13 | $ (1,066) |
Balance Sheet Components - Sc_5
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 194,739 | $ 135,674 |
Accumulated depreciation and amortization | (41,992) | (32,412) |
Property and Equipment, net | 152,747 | 103,262 |
Computer and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 27,725 | 23,834 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 141,859 | 93,239 |
Website and Internal-Use Software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 6,510 | 6,510 |
Office Equipment and Furniture | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 18,645 | $ 12,091 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Depreciation and amortization | $ 5.2 | $ 2.7 | $ 9.9 | $ 5.4 |
Balance Sheet Components - Sc_6
Balance Sheet Components - Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accounts Payable And Accrued Liabilities Current [Abstract] | ||
Accounts payable | $ 130,601 | $ 115,227 |
Payments due to content publishers | 78,255 | 57,376 |
Accrued cost of revenue | 53,001 | 58,149 |
Operating lease liability, current | 27,120 | 17,896 |
Accrued royalty expense | 8,688 | 18,040 |
Accrued payroll and related expenses | 15,887 | 14,522 |
Accrued inventory | 9,706 | 2,892 |
Content licensing liability | 8,903 | 1,679 |
Marketing, retail and merchandising costs | 11,066 | 7,624 |
Accrued legal fees | 4,026 | 3,158 |
Customer prepayments | 4,144 | 2,669 |
Taxes and related liabilities | 2,914 | 3,052 |
Other accrued expenses | 9,505 | 11,290 |
Total Accounts Payable and Accrued Liabilities | $ 363,816 | $ 313,574 |
Balance Sheet Components - Sc_7
Balance Sheet Components - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current | $ 43,940 | $ 39,861 |
Total deferred revenue, non-current | 17,243 | 15,370 |
Total deferred revenue | 61,183 | 55,231 |
Platform | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current | 21,204 | 18,234 |
Total deferred revenue, non-current | 8,751 | 6,135 |
Player | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current | 22,736 | 21,627 |
Total deferred revenue, non-current | $ 8,492 | $ 9,235 |
Fair Value - Schedule of Financ
Fair Value - Schedule of Financial Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Assets: | |||
Restricted cash | $ 1,539 | $ 1,854 | $ 868 |
Total assets measured and recorded at fair value | 887,364 | 517,333 | |
Level 1 | |||
Assets: | |||
Restricted cash | 1,539 | 1,854 | |
Total assets measured and recorded at fair value | 887,364 | 517,333 | |
Cash | |||
Assets: | |||
Cash and cash equivalents | 814,034 | 463,820 | |
Cash | Level 1 | |||
Assets: | |||
Cash and cash equivalents | 814,034 | 463,820 | |
Money Market Fund | |||
Assets: | |||
Cash and cash equivalents | 71,791 | 51,659 | |
Money Market Fund | Level 1 | |||
Assets: | |||
Cash and cash equivalents | $ 71,791 | $ 51,659 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impairment of operating lease right of use assets | $ 0.2 | $ 0.9 |
Money Market Fund | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 71.8 | $ 51.7 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Leases [Line Items] | |
Lessee, operating lease, existence of option to extend | true |
Lessee, operating lease, existence of option to terminate | true |
Additional leases, primarily for corporate offices, that have not yet commenced | $ 10 |
Additional operating leases that have not yet commenced, lease terms | 5 years |
Minimum | |
Leases [Line Items] | |
Remaining lease term, operating lease | 1 year |
Maximum | |
Leases [Line Items] | |
Remaining lease term, operating lease | 10 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Leases [Abstract] | |||||
Operating lease cost | [1] | $ 13,921 | $ 5,830 | $ 29,122 | $ 10,162 |
Sublease income | (899) | (546) | (1,685) | (1,126) | |
Net operating lease cost | $ 13,022 | $ 5,284 | $ 27,437 | $ 9,036 | |
[1] | For the three and six months ended June 30, 2020, variable lease costs were $3.3 million and $5.5 million, respectively. For the three and six months ended June 30, 2019, variable lease costs were not significant. Variable lease costs primarily include common area maintenance charges. |
Leases - Schedule of Componen_2
Leases - Schedule of Components of Lease Expense (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Variable lease costs | $ 3.3 | $ 0 | $ 5.5 | $ 0 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash outflows from operating leases | $ 15,184 | $ 7,440 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | $ 2,771 | $ 83,780 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 269,900 | $ 283,291 |
Operating lease liability, current | 27,120 | 17,896 |
Operating lease liability, non-current | 306,750 | 301,694 |
Total operating lease liability | $ 333,870 | $ 319,590 |
Weighted average remaining lease term | ||
Operating leases (in years) | 9 years 7 months 17 days | 9 years 11 months 23 days |
Weighted average discount rate | ||
Operating leases | 4.65% | 4.65% |
Leases - Schedule of Future Lea
Leases - Schedule of Future Lease Payments under Operating Leases (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
2020 (remaining 6 months) | $ 15,891 | |
2021 | 47,851 | |
2022 | 44,740 | |
2023 | 45,421 | |
2024 | 44,689 | |
Thereafter | 246,828 | |
Total future lease payments | 445,420 | |
Less: imputed interest | (88,238) | |
Less: expected tenant improvement allowance | (23,312) | |
Total | $ 333,870 | $ 319,590 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Debt Instrument [Line Items] | |||
Net carrying amount | $ 0 | ||
Term Loan A Facility | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 97,500,000 | $ 100,000,000 | |
Less: Debt issuance costs | (324,000) | (392,000) | |
Net carrying amount | $ 97,176,000 | $ 99,608,000 | |
Effective Interest Rate | 2.07% | 3.48% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Nov. 18, 2019 | May 03, 2019 | Mar. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 |
Debt Instrument [Line Items] | |||||||
Outstanding debt | $ 0 | ||||||
Letters of credit outstanding | $ 31,600,000 | $ 31,600,000 | $ 31,800,000 | ||||
Term Loan A Facility | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding debt | 97,176,000 | 97,176,000 | 99,608,000 | ||||
Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Interest expense | 900,000 | 1,500,000 | |||||
Credit Agreement | Morgan Stanley Senior Funding, Inc | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Adjusted quick ratio | 1.00% | ||||||
Credit Agreement | Morgan Stanley Senior Funding, Inc | Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument term, years | 4 years | ||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||
Amount borrowed under debt facility | $ 69,300,000 | ||||||
Credit facility expiration and maturity month and year | 2023-02 | ||||||
Letters of credit outstanding | $ 29,800,000 | $ 29,800,000 | $ 30,700,000 | ||||
Credit Agreement | Morgan Stanley Senior Funding, Inc | Revolving Credit Facility | Adjusted One-Month LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, applicable margin on variable rate | 1.75% | ||||||
Credit Agreement | Morgan Stanley Senior Funding, Inc | Term Loan A Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument term, years | 4 years | ||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||
Amount borrowed under debt facility | $ 100,000,000 | ||||||
Debt instrument, amortization description | Loans under the Term Loan A Facility amortize in equal quarterly installments beginning on March 31, 2020, 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 or $1.25 million and (ii) thereafter, 2.50% of the drawn principal amount of the Term Loan Facility or $2.5 million, with the remaining balance payable on the maturity date of the Term Loan A Facility in February 2023. | ||||||
Debt instrument maturity month and year | 2023-02 | ||||||
Credit Agreement | Morgan Stanley Senior Funding, Inc | Term Loan A Facility | On or Prior to December 31, 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of amortization on drawn principal amount | 1.25% | ||||||
Amortization, aggregate principal amount | $ 1,250,000 | ||||||
Credit Agreement | Morgan Stanley Senior Funding, Inc | Term Loan A Facility | Thereafter December 31, 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of amortization on drawn principal amount | 2.50% | ||||||
Amortization, aggregate principal amount | $ 2,500,000 | ||||||
Credit Agreement | Morgan Stanley Senior Funding, Inc | Term Loan A Facility | Adjusted One-Month LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, applicable margin on variable rate | 1.75% | ||||||
Credit Agreement | Morgan Stanley Senior Funding, Inc | 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 | ||||||
Credit Agreement | Morgan Stanley Senior Funding, Inc | Uncommitted Incremental Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Secured leverage ratio | 1.50% |
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 | 6 Months Ended | |
Jun. 30, 2020 | May 13, 2020 | |
Class Of Stock [Line Items] | ||
Maximum aggregate offering shares of common stock | 4 | |
Gross proceeds from issuance of common stock | $ 354.4 | |
Number of shares Issued | 3 | |
Average selling price per share | $ 117.98 | |
Stock Issuance Costs | $ 4.8 |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock - Additional Information (Details) - shares | Jun. 30, 2020 | Dec. 31, 2019 |
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) | 6 Months Ended |
Jun. 30, 2020Class | |
Equity [Abstract] | |
Number of classes | 2 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Reserved Shares of Common Stock for Issuance (Details) shares in Thousands | Jun. 30, 2020shares | |
Class Of Stock [Line Items] | ||
Total reserved shares of common stock | 42,021 | |
Equity Incentive Plan | ||
Class Of Stock [Line Items] | ||
Common stock awards granted under equity incentive plans | 14,365 | |
2017 Employee Stock Purchase Plan | ||
Class Of Stock [Line Items] | ||
Common stock awards available for issuance | 5,089 | [1] |
2017 Plan | ||
Class Of Stock [Line Items] | ||
Common stock awards available for issuance | 22,567 | |
[1] | The Company has not issued any common stock pursuant to the 2017 Employee Stock Purchase Plan. |
Stockholders' Equity - Equity I
Stockholders' Equity - Equity Incentive Plans - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2020Plan | |
2008 Plan | |
Class Of Stock [Line Items] | |
Number of equity incentive plans | 2 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units shares in Thousands | 6 Months Ended |
Jun. 30, 2020$ / 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 | 4,544 |
Number of Shares, Awarded | shares | 586 |
Number of Shares, Released | shares | (576) |
Number of Shares, Forfeited | shares | (185) |
Ending balance, Number of Shares outstanding | shares | 4,369 |
Weighted Average Grant Date Fair Value Per Share, Beginning balance | $ / shares | $ 67.30 |
Weighted Average Grant Date Fair Value Per Share, Awarded | $ / shares | 124.63 |
Weighted Average Grant Date Fair Value Per Share, Released | $ / shares | 65.27 |
Weighted Average Grant Date Fair Value Per Share, Forfeited | $ / shares | 64.63 |
Weighted Average Grant Date Fair Value Per Share, Ending balance | $ / shares | $ 75.37 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Units - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Expected weighted average period to recognize unrecognized stock compensation expense | 1 year 6 months 18 days | |||
Restricted Stock Units | ||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Grant-date fair value of restricted stock units granted | $ 73 | $ 62 | ||
Unrecognized stock compensation expense | $ 277.6 | $ 277.6 | ||
Expected weighted average period to recognize unrecognized stock compensation expense | 2 years 5 months 15 days | |||
Fair value of restricted stock units vested | $ 20.5 | $ 10 | $ 37.6 | $ 17.6 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Option Activity (Details) - 2008 Plan and 2017 Plan - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Balance, Number of Shares | 11,124 | |
Granted, Number of Shares | 21 | |
Exercised, Number of Shares | (1,107) | |
Forfeited and expired, Number of Shares | (42) | |
Balance, Number of Shares | 9,996 | 11,124 |
Options exercisable at June 30, 2020, Number of Shares | 6,826 | |
Balance, Weighted Average Exercise Price | $ 14.84 | |
Granted, Weighted Average Exercise Price | 113.31 | |
Exercised, Weighted Average Exercise Price | 5.31 | |
Forfeited and expired, Weighted Average Exercise Price | 8.45 | |
Balance, Weighted Average Exercise Price | 16.13 | $ 14.84 |
Options exercisable at June 30, 2020, Weighted Average Exercise Price | $ 6.66 | |
Balance, Weighted Average Remaining Contractual Life | 5 years 9 months 18 days | 6 years 2 months 12 days |
Options exercisable at June 30, 2020, Weighted Average Contractual Life | 5 years | |
Granted, Weighted Average Grant Date Fair Value Per Share | $ 38.95 | |
Outstanding, ending balance | $ 1,003,651 | |
Options exercisable, ending balance | $ 750,064 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Option Plan - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||
Intrinsic value of stock options exercised | $ 67 | $ 135.8 | $ 119.7 | $ 245.5 |
Unrecognized stock compensation expense | $ 32.6 | $ 32.6 | ||
Expected weighted average period to recognize unrecognized stock compensation expense | 1 year 6 months 18 days |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 30,036 | $ 18,671 | $ 60,441 | $ 36,535 |
Cost of Revenue | Platform | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 232 | 59 | 443 | 118 |
Cost of Revenue | Player | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 310 | 246 | 648 | 489 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 13,348 | 9,258 | 26,603 | 17,790 |
Sales and Marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 9,615 | 4,974 | 19,672 | 10,140 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 6,531 | $ 4,134 | $ 13,075 | $ 7,998 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Assumptions Used to Value Stock-Based Awards Granted (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Risk-free interest rate, Minimum | 0.31% | 1.83% | 0.31% | 1.83% |
Risk-free interest rate, Maximum | 0.37% | 2.31% | 1.67% | 2.56% |
Expected volatility | 36.00% | 36.00% | ||
Expected volatility, Minimum | 37.90% | 35.80% | ||
Expected volatility, Maximum | 38.60% | 38.60% | ||
Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 5 years | 5 years | 5 years | 5 years |
Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Expected term (in years) | 5 years 3 months 7 days | 5 years 3 months 7 days | 5 years 3 months 7 days | 5 years 3 months 7 days |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Commitments And Contingencies [Line Items] | ||
Letters of credit outstanding | $ 31,600,000 | $ 31,800,000 |
Letters of credit expiration date | Dec. 31, 2030 | |
Indemnification liabilities | $ 0 | |
Manufacturing | ||
Commitments And Contingencies [Line Items] | ||
Purchase commitments for inventory and license | 142,200,000 | |
Manufacturing | Accrued Liabilities | ||
Commitments And Contingencies [Line Items] | ||
Loss on purchase obligation for inventory | 300,000 | |
Content License | Accrued Liabilities | ||
Commitments And Contingencies [Line Items] | ||
Purchase commitments for inventory and license | 8,900,000 | $ 1,700,000 |
Content Publishers | ||
Commitments And Contingencies [Line Items] | ||
Purchase commitments for inventory and license | $ 37,400,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Jun. 29, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Income Taxes Disclosure [Line Items] | |||||
Income tax (benefit) expense | $ 462,000 | $ (384,000) | $ 307,000 | $ (523,000) | |
California | Tax Years 2020 through 2022 | |||||
Income Taxes Disclosure [Line Items] | |||||
Annual cap on amount of business incentive tax credits | $ 5,000,000 |
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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: | ||||
Net loss | $ (43,148) | $ (9,333) | $ (97,760) | $ (19,065) |
Denominator: | ||||
Weighted-average shares used in computing net loss per share, basic and diluted | 122,614 | 114,572 | 121,397 | 112,734 |
Net loss per share, basic and diluted | $ (0.35) | $ (0.08) | $ (0.81) | $ (0.17) |
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 | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted net loss per share | 14,374 | 16,640 | 14,374 | 16,640 |
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 | 14,365 | 16,595 | 14,365 | 16,595 |
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 | 9 | 45 | 9 | 45 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - segment | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
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% |
Segment Information - Schedule
Segment Information - Schedule of Customer Accounting for 10% or More of Segment Revenue (Details) - Net Revenue - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Customer H | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 10.00% | |||
Customer B | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 10.00% | |||
Customer C | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 13.00% | 14.00% | 13.00% | 13.00% |
Platform | Customer D | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 10.00% | |||
Platform | Customer H | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 15.00% | 14.00% | ||
Player | Customer A | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 14.00% | 11.00% | 16.00% | |
Player | Customer B | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 18.00% | 17.00% | 16.00% | 19.00% |
Player | Customer C | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 38.00% | 40.00% | 42.00% | 38.00% |
Segment Information - Schedul_2
Segment Information - Schedule of Customer Accounting for 10% or More of Segment Revenue (Parenthetical) (Details) - Net Revenue - Customer Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Customer H | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 10.00% | |||
Platform | Customer D | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 10.00% | |||
Platform | Customer D | Maximum | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 10.00% | 10.00% | 10.00% | |
Platform | Customer H | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 15.00% | 14.00% | ||
Platform | Customer H | Maximum | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 10.00% | 10.00% | ||
Player | Customer A | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 14.00% | 11.00% | 16.00% | |
Player | Customer A | Maximum | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 10.00% |