Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 31, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ROKU | |
Entity Registrant Name | Roku, Inc. | |
Entity Current Reporting Status | Yes | |
Entity Central Index Key | 0001428439 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 001-38211 | |
Entity Tax Identification Number | 26-2087865 | |
Entity Address, Address Line One | 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, $0.0001 par value | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 117,707,415 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 16,655,344 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 2,179,745 | $ 1,092,815 |
Accounts receivable, net of allowances of $25,631 and $41,236 as of | 595,911 | 523,852 |
Inventories | 75,945 | 53,895 |
Prepaid expenses and other current assets | 110,180 | 27,078 |
Total current assets | 2,961,781 | 1,697,640 |
Property and equipment, net | 170,606 | 155,197 |
Operating lease right-of-use assets | 346,691 | 266,197 |
Intangible assets, net | 92,534 | 62,181 |
Goodwill | 146,784 | 73,058 |
Other non-current assets | 193,907 | 16,269 |
Total Assets | 3,912,303 | 2,270,542 |
Current Liabilities: | ||
Accounts payable | 131,818 | 112,314 |
Accrued liabilities | 482,057 | 347,668 |
Current portion of long-term debt | 8,630 | 4,874 |
Deferred revenue, current portion | 45,559 | 55,465 |
Total current liabilities | 668,064 | 520,321 |
Long-term debt, non-current portion | 82,457 | 89,868 |
Deferred revenue, non-current portion | 23,420 | 21,283 |
Operating lease liability, non-current portion | 394,515 | 307,936 |
Other long-term liabilities | 60,216 | 3,119 |
Total Liabilities | 1,228,672 | 942,527 |
Commitments and contingencies (Note 12) | ||
Stockholders’ Equity: | ||
Common stock, $0.0001 par value | 13 | 13 |
Additional paid-in capital | 2,797,297 | 1,660,379 |
Accumulated other comprehensive income | 29 | 29 |
Accumulated deficit | (113,708) | (332,406) |
Total Stockholders’ Equity | 2,683,631 | 1,328,015 |
Total Liabilities and Stockholders’ Equity | $ 3,912,303 | $ 2,270,542 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 25,631 | $ 41,236 |
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net Revenue: | ||||
Total net revenue | $ 679,953 | $ 451,663 | $ 1,899,255 | $ 1,128,502 |
Cost of Revenue: | ||||
Total cost of revenue | 316,034 | 236,839 | 870,299 | 625,741 |
Gross Profit (Loss): | ||||
Total gross profit | 363,919 | 214,824 | 1,028,956 | 502,761 |
Operating Expenses: | ||||
Research and development | 120,307 | 88,388 | 335,164 | 261,053 |
Sales and marketing | 109,700 | 70,956 | 292,251 | 203,368 |
General and administrative | 65,066 | 43,510 | 187,805 | 123,744 |
Total operating expenses | 295,073 | 202,854 | 815,220 | 588,165 |
Income (Loss) from Operations | 68,846 | 11,970 | 213,736 | (85,404) |
Other Income (Expense), Net: | ||||
Interest expense | (743) | (773) | (2,231) | (2,670) |
Other income (expense), net | 500 | 1,202 | 2,461 | 3,020 |
Total other income (expense), net | (243) | 429 | 230 | 350 |
Income (Loss) Before Income Taxes | 68,603 | 12,399 | 213,966 | (85,054) |
Income tax benefit | (332) | (548) | (4,732) | (241) |
Net Income (Loss) | $ 68,935 | $ 12,947 | $ 218,698 | $ (84,813) |
Net income (loss) per share — basic | $ 0.52 | $ 0.10 | $ 1.66 | $ (0.69) |
Net income (loss) per share — diluted | $ 0.48 | $ 0.09 | $ 1.54 | $ (0.69) |
Weighted-average common shares outstanding — basic | 133,685 | 125,687 | 132,036 | 122,837 |
Weighted-average common shares outstanding — diluted | 142,286 | 136,669 | 141,593 | 122,837 |
Platform | Services | ||||
Net Revenue: | ||||
Total net revenue | $ 582,514 | $ 319,231 | $ 1,581,343 | $ 796,565 |
Cost of Revenue: | ||||
Total cost of revenue | 203,989 | 124,568 | 545,907 | 332,828 |
Gross Profit (Loss): | ||||
Total gross profit | 378,525 | 194,663 | 1,035,436 | 463,737 |
Player | Goods | ||||
Net Revenue: | ||||
Total net revenue | 97,439 | 132,432 | 317,912 | 331,937 |
Cost of Revenue: | ||||
Total cost of revenue | 112,045 | 112,271 | 324,392 | 292,913 |
Gross Profit (Loss): | ||||
Total gross profit | $ (14,606) | $ 20,161 | $ (6,480) | $ 39,024 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment |
Balance at Dec. 31, 2019 | $ 698,426 | $ (1,066) | $ 12 | $ 1,012,218 | $ 29 | $ (313,833) | $ (1,066) |
Balance, Shares at Dec. 31, 2019 | 119,897 | ||||||
Vesting of early exercised stock options | 32 | 32 | |||||
Issuance of common stock pursuant to equity incentive plans | 11,206 | $ 1 | 11,205 | ||||
Issuance of common stock pursuant to equity incentive plans, Shares | 2,987 | ||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs | 497,242 | 497,242 | |||||
Issuance of common stock pursuant in connection with at-the-market offerings, net of issuance costs, Shares | 4,000 | ||||||
Stock-based compensation expense | $ 95,348 | 95,348 | |||||
Accounting Standards Update Extensible List | Accounting Standards Update201613 [Member] | ||||||
Net income (loss) | $ (84,813) | (84,813) | |||||
Balance at Sep. 30, 2020 | 1,216,375 | $ 13 | 1,616,045 | 29 | (399,712) | ||
Balance, Shares at Sep. 30, 2020 | 126,884 | ||||||
Balance at Jun. 30, 2020 | 1,015,553 | $ 12 | 1,428,171 | 29 | (412,659) | ||
Balance, Shares at Jun. 30, 2020 | 124,584 | ||||||
Vesting of early exercised stock options | 6 | 6 | |||||
Issuance of common stock pursuant to equity incentive plans | 5,329 | $ 1 | 5,328 | ||||
Issuance of common stock pursuant to equity incentive plans, Shares | 1,304 | ||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs | 147,633 | 147,633 | |||||
Issuance of common stock pursuant in connection with at-the-market offerings, net of issuance costs, Shares | 996 | ||||||
Stock-based compensation expense | 34,907 | 34,907 | |||||
Net income (loss) | 12,947 | 12,947 | |||||
Balance at Sep. 30, 2020 | 1,216,375 | $ 13 | 1,616,045 | 29 | (399,712) | ||
Balance, Shares at Sep. 30, 2020 | 126,884 | ||||||
Balance at Dec. 31, 2020 | 1,328,015 | $ 13 | 1,660,379 | 29 | (332,406) | ||
Balance, Shares at Dec. 31, 2020 | 128,004 | ||||||
Vesting of early exercised stock options | 4 | 4 | |||||
Issuance of common stock pursuant to equity incentive plans | 13,433 | 13,433 | |||||
Issuance of common stock pursuant to equity incentive plans, Shares | 3,515 | ||||||
Issuance of common stock in connection with at-the-market offering, net of issuance costs | 989,615 | 989,615 | |||||
Issuance of common stock pursuant in connection with at-the-market offerings, net of issuance costs, Shares | 2,637 | ||||||
Stock-based compensation expense | 133,866 | 133,866 | |||||
Net income (loss) | 218,698 | 218,698 | |||||
Balance at Sep. 30, 2021 | 2,683,631 | $ 13 | 2,797,297 | 29 | (113,708) | ||
Balance, Shares at Sep. 30, 2021 | 134,156 | ||||||
Balance at Jun. 30, 2021 | 2,561,028 | $ 13 | 2,743,629 | 29 | (182,643) | ||
Balance, Shares at Jun. 30, 2021 | 133,299 | ||||||
Issuance of common stock pursuant to equity incentive plans | 3,148 | 3,148 | |||||
Issuance of common stock pursuant to equity incentive plans, Shares | 857 | ||||||
Stock-based compensation expense | 50,520 | 50,520 | |||||
Net income (loss) | 68,935 | 68,935 | |||||
Balance at Sep. 30, 2021 | $ 2,683,631 | $ 13 | $ 2,797,297 | $ 29 | $ (113,708) | ||
Balance, Shares at Sep. 30, 2021 | 134,156 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Stockholders Equity [Abstract] | |||
At the market offering issuance cost | $ 2,000 | $ 10,400 | $ 6,800 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 218,698 | $ (84,813) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 31,304 | 26,567 |
Stock-based compensation expense | 133,479 | 95,348 |
Amortization of right-of-use assets | 21,588 | 22,422 |
Amortization of content assets | 56,580 | 17,131 |
Provision for (recoveries of) doubtful accounts | (1,480) | 3,097 |
Other items, net | (298) | 345 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (64,710) | (62,767) |
Inventories | (22,050) | (12,895) |
Prepaid expenses and other current assets | (63,402) | (3,595) |
Other non-current assets | (78,549) | 842 |
Accounts payable | 15,139 | 15,996 |
Accrued liabilities | 34,204 | 55,279 |
Operating lease liabilities | (14,465) | 18,116 |
Other long-term liabilities | 201 | (833) |
Deferred revenue | (12,731) | 10,907 |
Net cash provided by operating activities | 253,508 | 101,147 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (28,020) | (76,012) |
Acquisitions of businesses, net of cash acquired | (136,778) | |
Proceeds from escrows associated with acquisition | 1,058 | |
Net cash used in investing activities | (164,798) | (74,954) |
Cash flows from financing activities: | ||
Proceeds from equity issued under at-the-market offerings, net of issuance costs | 989,615 | 497,242 |
Proceeds from borrowings, net of issuance costs | 69,325 | |
Repayments of borrowings | (3,750) | (73,075) |
Proceeds from equity issued under incentive plans | 13,433 | 11,206 |
Net cash provided by financing activities | 999,298 | 504,698 |
Net increase in cash, cash equivalents and restricted cash | 1,088,008 | 530,891 |
Cash, cash equivalents and restricted cash —beginning of period | 1,093,249 | 517,333 |
Cash, cash equivalents and restricted cash —end of period | 2,181,257 | 1,048,224 |
Cash, cash equivalents and restricted cash at end of period: | ||
Cash and cash equivalents | 2,179,745 | 1,047,478 |
Restricted cash, current | 746 | |
Restricted cash, non-current | 1,512 | |
Cash, cash equivalents and restricted cash —end of period | 2,181,257 | 1,048,224 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 1,932 | 2,798 |
Cash paid for income taxes | 956 | 624 |
Supplemental disclosures of noncash investing and financing activities: | ||
Non-cash consideration for business combination | 15,200 | |
Services to be received as part of a business combination | 6,300 | |
Unpaid portion of property and equipment purchases | 3,310 | 4,966 |
Unpaid portion of acquisition-related expenses | $ 43 | |
Unpaid portion of at-the-market issuance costs | $ 11 |
The Company
The Company | 9 Months Ended |
Sep. 30, 2021 | |
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 | 9 Months Ended |
Sep. 30, 2021 | |
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, 2020, filed with the SEC on February 26, 2021 (the “Annual Report”). The condensed consolidated balance sheet as of December 31, 2020 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 nine months ended September 30, 2021 are not necessarily indicative of the operating results to be expected for the full year or any future periods. Use of Estimates The preparation of the Company’s condensed consolidated financial statements in accordance with U.S. GAAP requires management to make certain estimates, judgments, 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, 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 sales incentive programs; the impairment of goodwill and intangible assets; valuation of assets acquired and liabilities assumed in connection with business combinations; useful lives of tangible and intangible assets; allowances for doubtful accounts; the valuation of deferred income tax assets; and stock-based compensation. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results may differ from the Company’s estimates and assumptions. Principles of Consolidation The condensed consolidated financial statements, which include the accounts of Roku, Inc. and its wholly-owned subsidiaries, have been prepared in conformity with U.S. GAAP. All intercompany accounts and transactions have been eliminated in consolidation. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of September 30, 2021, two financial institutions managed 33% and 28%, respectively, of the Company’s cash and cash equivalents balance. As of December 31, 2020, two financial institutions managed 46% and 26%, respectively, of the Company’s cash and cash equivalents balance. Accounts Receivable, net Accounts receivable are typically unsecured and are derived from revenue earned from customers. They are stated at invoice value less estimated allowances for sales returns, sales incentives, doubtful accounts and other miscellaneous allowances. The Company performs ongoing credit evaluations of its customers to determine allowances for potential credit losses and doubtful accounts. The Company considers historical experience, ongoing promotional activities, historical claim rate and other factors to determine the allowances for sales returns and sales incentives. Allowance for Sales Returns : Allowance for sales returns consists of the following activities (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Beginning balance $ (4,515 ) $ (5,412 ) $ (5,912 ) $ (6,550 ) Charged to revenue (3,082 ) (2,313 ) (10,133 ) (8,998 ) Utilization of sales return reserve 3,554 3,402 12,002 11,225 Ending balance $ (4,043 ) $ (4,323 ) $ (4,043 ) $ (4,323 ) Allowance for Sales Incentives : Allowance for sales incentives consists of the following activities (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Beginning balance $ (16,640 ) $ (8,962 ) $ (30,838 ) $ (19,476 ) Charged to revenue (17,379 ) (10,470 ) (44,953 ) (28,127 ) Utilization of sales incentive reserve 14,184 11,366 55,956 39,537 Ending balance $ (19,835 ) $ (8,066 ) $ (19,835 ) $ (8,066 ) Allowance for Doubtful Accounts : Allowance for doubtful accounts consists of the following activities (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Beginning balance $ (3,082 ) $ (4,403 ) $ (4,181 ) $ (1,140 ) Impact of adoption of ASU 2016-13 — — — (1,066 ) Adjusted beginning balance (3,082 ) (4,403 ) (4,181 ) (2,206 ) Provision for (recoveries of) doubtful accounts 381 (131 ) 1,480 (3,097 ) Adjustments for recovery and write-off 1,119 10 1,119 779 Ending balance $ (1,582 ) $ (4,524 ) $ (1,582 ) $ (4,524 ) The Company did not have any customer that accounted for more than 10% of its accounts receivable, net balance as of September 30, 2021. Recently On January 1, 2021, the Company adopted the guidance issued in Accounting Standards Updates (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 3. REVENUE The Company’s disaggregated revenue is represented by the two reportable segments discussed in Note 15. The contract balances include the following (in thousands): As of September 30, 2021 December 31, 2020 Accounts receivable, net $ 595,911 $ 523,852 Contract assets (included in Prepaid expenses and other current assets) 47,673 7,431 Deferred revenue, current portion $ 45,559 $ 55,465 Deferred revenue, non-current portion 23,420 21,283 Total deferred revenue $ 68,979 $ 76,748 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. The Company’s contract assets are generally current in nature. Contract assets increased by approximately $40.2 million during the nine months ended September 30, 2021 primarily due to an increase in the growth of overall platform revenue combined with the timing of billing which falls into a subsequent period Contract liabilities are included in deferred revenue and reflect consideration invoiced prior to the completion of performance obligations and revenue recognition. Deferred revenue decreased by approximately $7.8 million during the nine months ended September 30, 2021 due to the timing of fulfillment of performance obligations related to platform revenue contracts. Revenue recognized during the three and nine months ended September 30, 2021, from amounts included in deferred revenue as of December 31, 2020, was $9.3 million and $49.0 million, respectively. Revenue recognized during the three and nine months ended September 30, 2020, from amounts included in deferred revenue as of December 31, 2019, was $7.9 million and $36.6 million, respectively. Revenue allocated to remaining performance obligations represents estimated contracted revenue that has not yet been recognized which includes both deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Estimated contracted revenue for these remaining performance obligations was $1,218.2 million 38 The Company recognized revenue of $4.5 million and $29.3 million during the three and nine months ended September 30, 2021, respectively, and revenue of $13.6 million and $11.5 million during the three and nine months ended September 30, 2020, respectively, from performance obligations that were satisfied in previous periods due to changes in the estimated transaction price of its revenue contracts. Customers accounting for 10% or more of the Company’s net revenue were as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Customer C * 11 % * 12 % Customer H * 11 % * 10 % * Less than 10%. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2021 | |
Business Combinations [Abstract] | |
Business Combinations | 4. business combinationS Nielsen’s Advanced Video Advertising Business On February 28, 2021, the Company entered into an Asset and Stock Purchase Agreement (the “ASPA”) to purchase the Advanced Video Advertising (“AVA”) business from Nielsen Holdings PLC (“Nielsen”). The AVA business consists primarily of video automatic content recognition and dynamic ad insertion (“DAI”) technologies. On April 15, 2021, the Company closed the transaction, acquiring from Nielsen the AVA business, consisting of certain assets and liabilities and all of the equity interests in a subsidiary associated with the AVA business (the “Acquisition”). In conjunction with the Acquisition, Roku and Nielsen entered into a strategic commercial arrangement under which the parties will provide certain advertising measurement solutions to each other. The Company acquired Nielsen’s AVA business to accelerate its launch of an end-to-end DAI solution for traditional TV and to further integrate Nielsen’s ad and content measurement products into the Company’s platform. The total preliminary purchase consideration for Nielsen’s AVA business was $47.4 million, which consisted of (i) $38.5 million paid in cash and (ii) $15.2 million of noncash consideration related to obligations to deliver services to Nielsen, offset by (iii) $6.3 million of services to be received from Nielsen. The obligations to deliver services to Nielsen were recorded at fair value using the incremental cash flow method. The services to be delivered to Nielsen are recognized within Other income (expense), net in the condensed consolidated statements of operations over the six year service period. The services to be received from Nielsen represent contract terms that the Company entered into for future goods and services that were recorded at fair value using the incremental cash flow method. These services are recognized as Cost of revenue, platform in the condensed consolidated statements of operations over the six year service period. In addition, there are earn-out conditions in the ASPA which may trigger an additional payment to Nielsen. As of September 30, 2021, no contingent consideration conditions have been triggered. T he Company incurred $ has recorded them in expenses in the condensed consolidated statements The Company is still in the process of finalizing the fair value of the assets acquired and liabilities assumed. The purchase price allocation below is preliminary in natur The preliminary 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): Fair Values Assets acquired Cash and cash equivalents $ 3,057 Prepaid expenses and other current assets 85 Property and equipment, net 584 Intangible assets: Developed technology 14,200 IPR&D technology 8,500 Goodwill 22,055 Operating lease right-of-use assets 1,235 Other non-current assets 1,927 Total assets acquired 51,643 Liabilities assumed Accounts payable and accrued liabilities (1,168 ) Operating lease liabilities (830 ) Other long-term liabilities (2,254 ) Total liabilities assumed (4,252 ) Total purchase consideration $ 47,391 The excess of the total consideration over the tangible assets, intangible assets, and assumed liabilities is recorded as goodwill. Goodwill is primarily attributable to expected synergies in our advertising offerings and cross-selling opportunities. The majority of the goodwill recorded is deductible for tax purposes. The fair value of the developed technology has been estimated using the relief-from-royalty method. The key valuation assumptions include the Company's estimates of expected future earnings and royalty rate. The Company amortizes the fair value of the developed technology on a straight-line basis over its useful life. The fair value of the in-process research and development (“IPR&D”) technology has been estimated using the multi-period-excess-earnings method. The key valuation assumptions include the Company's estimates of expected future revenue and margin. Once the project reaches technological feasibility, the Company will amortize the fair value of the IPR&D technology on a straight-line basis over its useful life. The preliminary valuation of the intangible assets acquired from Nielsen’s AVA business along with their estimated useful lives, is as follows (in thousands, except years): Estimated Fair Value Estimated Weighted-Average Useful Lives (in years) Developed technology $ 14,200 5.9 IPR&D technology 8,500 — Estimated fair value of acquired intangible assets $ 22,700 5.9 The operations of Nielsen’s AVA business are included in the Company’s operating results beginning on the date of acquisition. The revenue, cost of revenue and gross profit recorded by the Company in its condensed consolidated statement of operations from the acquisition date to September 30, 2021 are not material. This Old House On March 19, 2021, the Company acquired all outstanding shares of TOH Intermediate Holdings, LLC (“This Old House”), a home improvement media business, according to the terms and conditions of the Equity Purchase Agreement. The Company acquired the This Old House business because the Company believes the content aligns with The Roku Channel’s ad-supported growth strategy. The total purchase consideration for This Old House was $97.8 million, paid entirely in cash. The Company incurred $ million in acquisition-related expenses and has recorded them in General and administrative expenses in the condensed consolidated statements of operations. The preliminary allocation of the purchase consideration to tangible and intangible assets acquired and liabilities assumed, reflecting measurement period adjustments through September 30, 2021, is based on estimated fair values and is as follows (in thousands): Fair Values Assets acquired Cash and cash equivalents $ 7 Accounts receivable 5,830 Prepaid expenses and other current assets 7,310 Property and equipment, net 307 Intangible assets: Tradename 20,000 Customer relationships 700 Goodwill 46,671 Operating lease right-of-use assets 5,498 Other non-current assets 23,487 Total assets acquired 109,810 Liabilities assumed Accounts payable and accrued liabilities (2,747 ) Deferred revenue, current portion (4,146 ) Operating lease liabilities (4,262 ) Deferred revenue, non-current portion (816 ) Other long-term liabilities (28 ) Total liabilities assumed (11,999 ) Total purchase consideration $ 97,811 Other non-current assets include The excess of the total consideration over the tangible assets, identifiable intangible assets, and assumed liabilities is recorded as goodwill. Goodwill is primarily attributable to expected synergies in our advertising offerings as we bring more . The goodwill recorded is deductible for tax purposes. The fair value of the tradename has been estimated using the relief-from-royalty method. The key valuation assumptions include the Company's estimates of expected future revenue and royalty rate. The Company amortizes the fair value of the tradename on a straight-line basis over its useful life. The valuation of the intangible assets acquired from This Old House along with their estimated useful lives, is as follows (in thousands, except years): Estimated Fair Value Estimated Weighted-Average Useful Lives (in years) Tradename $ 20,000 10.0 Customer relationships 700 4.0 Estimated fair value of acquired intangible assets $ 20,700 9.8 The operations of This Old House were included in the Company’s operating results beginning on the date of acquisition. The Company recorded revenue of $13.5 million, cost of revenue, platform, of $7.3 million and gross profit of $6.2 million in its condensed consolidated statement of operations from the acquisition date to September 30, 2021. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
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. All goodwill relates to the Company’s platform segment. The following table reflects the carrying value of goodwill (in thousands): Carrying Value Balance as of December 31, 2020 $ 73,058 Additions: This Old House acquisition 46,671 Nielsen AVA business acquisition 22,055 Other immaterial acquisitions 5,000 Balance as of September 30, 2021 $ 146,784 Intangible Assets The following table is the summary of the Company’s intangible assets (in thousands, except years): As of September 30, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Useful Lives (in years) Developed technology $ 76,567 $ (22,596 ) $ 53,971 5.9 IPR&D technology 8,500 — 8,500 — Customer relationships 14,100 (6,514 ) 7,586 4.0 Tradename 20,400 (1,466 ) 18,934 9.8 Patents 4,076 (533 ) 3,543 14.0 Intangible assets $ 123,643 $ (31,109 ) $ 92,534 6.7 As of December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Useful Lives (in years) Developed technology $ 62,367 $ (13,439 ) $ 48,928 5.9 Customer relationships 13,400 (3,908 ) 9,492 4.0 Tradename 400 (400 ) — 0.5 Patents 4,076 (315 ) 3,761 14.0 Intangible assets $ 80,243 $ (18,062 ) $ 62,181 6.0 The Company recorded expenses of $4.7 million and $3.6 million for amortization of intangible assets during the three months ended September 30, 2021 and 2020, respectively. The Company recorded expenses of $13.0 million and $10.9 million for amortization of intangible assets during the nine months ended September 30, 2021 and 2020, respectively. During the three and nine months ended September 30, 2021 and 2020, the Company recorded amortization of developed technology in Cost of revenue, platform, Cost of revenue, player and Research and development expenses. The Company recorded amortization of customer relationships and tradenames in Sales and marketing expenses, and recorded amortization of patents in General and administrative expenses in the condensed consolidated statements of operations. As of September 30, 2021, the estimated future amortization expense for intangible assets for the next five years and thereafter is as follows (in thousands): Year Ending December 31, 2021 (remaining 3 months) $ 4,588 2022 18,302 2023 17,600 2024 14,808 2025 13,104 Thereafter 15,632 Total $ 84,034 |
Balance Sheet Components
Balance Sheet Components | 9 Months Ended |
Sep. 30, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components | 6. Balance sheet components Accounts Receivable, net : Accounts receivable, net consists of the following (in thousands): As of September 30, 2021 December 31, 2020 Gross accounts receivable $ 621,542 $ 565,088 Allowance for sales returns (4,043 ) (5,912 ) Allowance for sales incentives (19,835 ) (30,838 ) Allowance for doubtful accounts (1,582 ) (4,181 ) Other allowances (171 ) (305 ) Total allowances (25,631 ) (41,236 ) Total accounts receivable, net of allowances $ 595,911 $ 523,852 Property and Equipment, net : Property and equipment, net consists of the following (in thousands): As of September 30, 2021 December 31, 2020 Computers and equipment $ 36,825 $ 30,859 Leasehold improvements 170,771 144,013 Website and internal-use software 7,274 6,744 Office equipment and furniture 19,886 19,661 Total property and equipment 234,756 201,277 Accumulated depreciation and amortization (64,150 ) (46,080 ) Property and equipment, net $ 170,606 $ 155,197 Depreciation and amortization expense, for property and equipment assets, for the three months ended September 30, 2021 and 2020 was $6.2 million and $5.8 Accrued Liabilities : Accrued liabilities consists of the following (in thousands): As of September 30, 2021 December 31, 2020 Payments due to content publishers $ 155,175 $ 106,576 Accrued cost of revenue 101,952 98,285 Marketing, retail and merchandising costs 32,681 43,645 Operating lease liability, current 34,723 35,647 Content liability, current 52,536 6,165 Accrued payroll and related expenses 32,523 15,675 Other accrued expenses 72,467 41,675 Total accrued liabilities $ 482,057 $ 347,668 Deferred Revenue : Deferred revenue consists of the following (in thousands): As of September 30, 2021 December 31, 2020 Platform, current $ 22,140 $ 27,587 Player, current 23,419 27,878 Total deferred revenue, current 45,559 55,465 Platform, non-current 10,175 9,909 Player, non-current 13,245 11,374 Total deferred revenue, non-current 23,420 21,283 Total deferred revenue $ 68,979 $ 76,748 |
Content Assets
Content Assets | 9 Months Ended |
Sep. 30, 2021 | |
Capitalized Content Costs [Abstract] | |
Content Assets | 7. Content Assets The Company classifies its content assets as Other non-current assets. The Company records amortization expense for licensed content based on the pattern of monetization of such content which is primarily straight-line. The Company amortizes produced content over the applicable content life cycle based upon the ratio of current period revenue to the estimated total gross revenue to be earned. Licensed and produced content assets are primarily monetized together as a unit, referred to as a film group. The film group is evaluated for impairment whenever an event occurs or circumstances change indicating the fair value is less than the carrying value. The Company reviews various qualitative factors and indicators to assess whether the group asset is impaired. Content assets, net consisted of the following (in thousands): As of September 30, 2021 December 31, 2020 Licensed content, net $ 145,021 $ 7,907 Produced content, net Released, less amortization 19,963 — Completed, not released 2,422 — In production 1,890 — 24,275 — Total licensed and produced content, net $ 169,296 $ 7,907 On January 8, 2021, the Company entered into an agreement with the mobile-first video distribution service known as Quibi to acquire certain content rights. The transaction was accounted for as an asset acquisition. As discussed in Note 4, the Company also acquired content assets as part of the This Old House acquisition. The increase of $161.4 million in content assets during the nine months ended September 30, 2021 includes content assets acquired from Quibi and This Old House as well as licensed programming content from various other content providers. Amortization of content assets is included in Cost of revenue, platform in the condensed consolidated statement of operations and is reflected in the table below (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Licensed content $ 23,454 $ 4,949 $ 48,925 $ 17,131 Produced content 5,034 — 7,655 — Total amortization costs $ 28,488 $ 4,949 $ 56,580 $ 17,131 |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 8. FAIR VALUE The Company’s financial assets measured at fair value are as follows (in thousands): As of September 30, 2021 As of December 31, 2020 Fair Value Level 1 Fair Value Level 1 Assets: Cash and cash equivalents: Cash $ 1,736,948 $ 1,736,948 $ 1,021,022 $ 1,021,022 Money market funds 442,797 442,797 71,793 71,793 Restricted cash, current — — 434 434 Restricted cash, non-current 1,512 1,512 — — Total assets measured and recorded at fair value $ 2,181,257 $ 2,181,257 $ 1,093,249 $ 1,093,249 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. Further, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs in measuring fair value and utilizes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows: Level 1 —Quoted prices in active markets for identical assets or liabilities. Financial assets and liabilities measured using Level 1 inputs include cash equivalents including restricted cash, accounts receivable, prepaid expenses, accounts payable and accrued liabilities. The Company considers all highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. The Company measured money market funds of $442.8 million and $71.8 million as cash equivalents as of September 30, 2021 and December 31, 2020, 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 on September 30, 2021 and December 31, 2020. 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 on September 30, 2021 and December 31, 2020. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Non-financial assets such as goodwill, intangible assets, property, plant, and equipment, operating lease right-of-use (“ROU”) assets and content assets are evaluated for impairment and adjusted to fair value using Level 3 inputs, only when impairment is recognized. Impairment charges for the three and nine months ended September 30, 2021 and for the year ended December 31, 2020 were not material. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | 9. LEASES The Company has entered into operating leases primarily for office real estate. The leases have remaining terms ranging from one to ten years and may include options to extend or terminate the lease. The depreciable life of ROU assets is limited by the expected lease term. The components of lease expense are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Operating lease cost (1) $ 11,291 $ 10,126 $ 32,938 $ 32,034 Variable lease cost 3,555 2,904 11,048 8,433 Net operating lease cost $ 14,846 $ 13,030 $ 43,986 $ 40,467 (1) Supplemental cash flow information related to leases is as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 11,663 $ 6,320 $ 39,642 $ 21,504 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 55,350 $ 3,690 $ 101,886 $ 6,461 Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate As of September 30, 2021 December 31, 2020 Operating lease right-of-use assets $ 346,691 $ 266,197 Operating lease liability, current (included in accrued liabilities) $ 34,723 $ 35,647 Operating lease liability, non-current 394,515 307,936 Total operating lease liability $ 429,238 $ 343,583 Weighted-average remaining lease term: Operating leases (in years) 8.68 9.05 Weighted-average discount rate: Operating leases 4.04 % 4.60 % Future lease payments under operating leases as of September 30, 2021 are as follows (in thousands): Year Ending December 31, Operating Leases 2021 (remaining 3 months) $ 12,072 2022 50,364 2023 61,421 2024 60,168 2025 59,897 Thereafter 278,027 Total future lease payments 521,949 Less: imputed interest (83,069 ) Less: expected tenant improvement allowance (9,642 ) Total $ 429,238 As of September 30, 2021, the Company’s commitment relating to operating leases that have not yet commenced was $14.6 million. These operating leases |
Debt
Debt | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | 10. DEBT The Company’s outstanding debt as of September 30, 2021 and December 31, 2020 is as follows (in thousands, except interest rates): As of September 30, 2021 December 31, 2020 Amount Effective Interest Rate Amount Effective Interest Rate Term Loan A Facility $ 91,250 2.02 % $ 95,000 2.03 % Less: Debt issuance costs (163 ) (258 ) Net carrying amount of debt $ 91,087 $ 94,742 The carrying amount of debt approximates fair value due to its variable interest rates. Interest expense, associated with the Term Loan A Facility (as defined below), for the three months ended September 30, 2021 and 2020 was $0.5 million and $0.6 million, respectively, and for the nine months ended September 30, 2021 and 2020 was $1.6 million and $2.0 million, respectively. Senior Secured Term Loan A and Revolving Credit Facilities On February 19, 2019, the Company entered into a Credit Agreement with Morgan Stanley Senior Funding, Inc. (as amended on May 3, 2019, the “Credit Agreement”), which provides for (i) a four-year four-year On November 18, 2019, the Company borrowed an aggregate principal amount of $100.0 million from the Term Loan A Facility. 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. The Company had outstanding letters of credit against the Revolving Credit Facility of $30.8 million as of September 30, 2021 and December 31, 2020. As of September 30, 2021, the Company was in compliance with all of the covenants of the Credit Agreement. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | 11. STOCKHOLDERS’ EQUITY Preferred Stock The Company has 10 million shares of undesignated preferred stock authorized but not issued with rights and preferences determined by the Company’s Board of Directors at the time of issuance of such shares. As of September 30, 2021 and December 31, 2020, 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. Holders of Class A common stock are entitled to one vote for each share of Class A common stock held on all matters submitted to a vote of stockholders and holders of Class B common stock are entitled to ten votes for each share of Class B common stock held on all matters submitted to a vote of stockholders. Except with respect to voting, the rights of the holders of Class A and Class B common stock are identical. Shares of Class B common stock are voluntarily convertible into shares of Class A common stock at the option of the holder and are generally automatically converted into shares of the Company's Class A common stock upon sale or transfer. Shares issued in connection with exercises of stock options, vesting of restricted stock units, or shares purchased under the employee stock purchase plan are generally automatically converted into shares of the Company’s Class A common stock. At-the-Market Offering On March 2, 2021, the Company entered into an Equity Distribution Agreement with Morgan Stanley & Co. LLC, Citigroup Global Markets Inc. and Evercore Group L.L.C., as its sales agents, pursuant to which the Company could offer and sell from time-to-time shares of its Class A common stock for aggregate gross proceeds of up to $1,000.0 million. In March 2021, the Company sold approximately 2.6 million shares of Class A common stock at an average selling price of $379.26 per share, for aggregate gross proceeds of $1,000.0 million and incurred issuance costs of $10.4 million. Common Stock Reserved for Future Issuance As of September 30, 2021, the Company had reserved shares of common stock for issuance as follows (in thousands): As of September 30, 2021 Common stock awards granted under equity incentive plans 10,397 Common stock awards available for issuance under the 2017 Employee Stock Purchase Plan (1) 5,089 Common stock awards available for issuance under the 2017 Equity Incentive Plan 27,056 Total reserved shares of common stock 42,542 (1) 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 Company’s initial public offering (“IPO”). No additional equity grants have been made pursuant to the 2008 Plan subsequent to the IPO. 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 2017 Plan are subject to continuous service. Stock options granted under the 2017 Plan generally are granted at a price per share equivalent to the fair market value on the date of grant. Recipients of option grants who possess more than 10% of the combined voting power of the Company are subject to certain limitations, and incentive stock options granted to such recipients are at a price per share no less than 110% of the fair market value on the date of grant. Restricted Stock Units The following table summarizes the Company’s restricted stock unit activities for the nine months ended September 30, 2021 (in thousands, except per share data): Number of Shares Weighted-Average Grant Date Fair Value per Share Balance as of December 31, 2020 4,355 $ 92.91 Awarded 790 365.21 Released (1,243 ) 78.20 Forfeited (278 ) 120.84 Balance as of September 30, 2021 3,624 $ 155.14 As of September 30, 2021, the Company had $476.7 million of unrecognized stock-based compensation expense related to unvested restricted stock units that is expected to be recognized over a weighted-average period of approximately 2.12 years. Stock Options The following table summarizes the Company’s stock option activities for the nine months ended September 30, 2021 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance as of December 31, 2020 8,733 $ 26.19 5.7 Granted 318 356.94 — Exercised (2,272 ) 5.91 — Forfeited and expired (6 ) 16.86 — Balance as of September 30, 2021 6,773 $ 48.54 5.8 $ 1,807,297 Options exercisable as of September 30, 2021 4,950 $ 12.36 4.9 $ 1,490,537 As of September 30, 2021, the Company stock-based compensation Stock-Based Compensation The Company measures the cost of employee services received in exchange for an equity award based on the grant date fair value of the award. Generally, stock options granted to employees under the 2008 Plan vest 25% after one year and then 1/48th monthly thereafter and have a term of ten years. Stock options granted to employees under the 2017 Plan generally vest over one to four years and have a term of ten years. Restricted stock units generally vest over 4 years. For the three and nine months ended September 30, 2021 and 2020, the amount of stock-based compensation capitalized as part of internal-use software was not material. The following table shows the total stock-based compensation expense for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Cost of platform revenue $ 199 $ 206 $ 564 $ 649 Cost of player revenue 618 362 1,348 1,010 Research and development 20,893 14,873 56,024 41,476 Sales and marketing 16,591 11,572 44,229 31,244 General and administrative 12,095 7,894 31,314 20,969 Total stock-based compensation $ 50,396 $ 34,907 $ 133,479 $ 95,348 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. 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 its 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. As of September 30, 2021, the Company had $292.2 million of purchase commitments for inventory. Licensed Content Commitments The Company enters into contracts with content publishers to acquire content or to buy ad inventory in the future. As of September 30, 2021, the Company had $233.9 million in commitments with content publishers that are non-cancelable. in the condensed consolidated balance sheet In connection with the acquisition of certain content rights during the quarter ended March 31, 2021, the Company assumed liabilities related to certain costs of the development and use of certain assets that had been incurred but not paid at the time assumed. Escrow arrangements were put in place such that selling shareholders will cover such costs. Accordingly, the Company recognized both an indemnification asset and liability of $81.4 million, respectively, as of March 31, 2021. As of September 30, 2021, $69.5 million of both the indemnification asset and liability were released related to payments made for a portion of the liabilities assumed. The remaining indemnification balance as of September 30, 2021 is $11.9 million, with the indemnification asset recorded as part of Prepaid expenses and other current assets and the indemnification liability recorded as part of Accrued liabilities in the condensed consolidated balance sheet. Letters of Credit As of September 30, 2021 and December 31, 2020, the Company had irrevocable letters of credit outstanding in the amount of $30.8 million and $30.9 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 claims, when it believes such losses are probable and reasonably estimable. From time to time, the Company is subject to legal proceedings, claims, and investigations in the ordinary course of business, including claims relating to employee relations, business practices and patent infringement. The Company is involved in litigation matters not listed herein. 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, the Company has entered into contractual arrangements which provide indemnification provisions of varying scope and terms to business partners and other parties with respect to certain matters, including, but not limited to, losses arising out of the Company’s breach of such agreements and out of intellectual property infringement claims made by third parties. It is not possible to determine the maximum potential amount under these indemnification obligations due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each agreement. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any liabilities related to such obligations in the condensed consolidated financial statements. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 13. INCOME TAXES Income tax benefit was $0.3 million and $4.7 million for the three and nine months ended September 30, 2021, respectively, and was $0.5 million and $0.2 million for the three and nine months ended September 30, 2020, respectively. The income tax benefit for the three and nine months ended September 30, 2021 and 2020, were primarily attributable to non-U.S. tax benefits associated with the Company's non-U.S. operations. A valuation allowance is provided when it is more likely than not that some portion of the deferred tax assets will not be realized through future operations. As a result of the Company’s analysis of all available objective evidence, both positive and negative, as of September 30, 2021, 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. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) Per Share | 14. NET INCOME (LOSS) PER SHARE The Company’s basic net income (loss) per share is calculated by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding for the period. The Company uses the two-class method to calculate net income (loss) per share. Except with respect to certain voting, conversion and transfer rights and as otherwise expressly provided in the Company’s amended and restated certificate of incorporation or required by applicable law, shares of the Company’s Class A common stock and Class B common stock have the same rights and privileges and rank equally, share ratably and are identical in all respects as to all matters. Accordingly, basic and diluted net income (loss) per share are the same for both classes. For purposes of the calculation of diluted net income (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. Dilutive shares of common stock are determined by applying the treasury stock method. The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Numerator: Net income (loss) $ 68,935 $ 12,947 $ 218,698 $ (84,813 ) Denominator: Weighted-average common shares outstanding — basic 133,685 125,687 132,036 122,837 Net income (loss) per share — basic $ 0.52 $ 0.10 $ 1.66 $ (0.69 ) Weighted-average common shares outstanding — basic 133,685 125,687 132,036 122,837 Common stock equivalents 8,601 10,982 9,557 — Weighted-average common shares outstanding — diluted 142,286 136,669 141,593 122,837 Net income (loss) per share — diluted $ 0.48 $ 0.09 $ 1.54 $ (0.69 ) Common stock equivalents excluded from the calculation of diluted net income per share or excluded from the calculation of diluted net loss per share because of their anti-dilutive effect are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Restricted stock units and stock options 465 688 465 14,229 Unvested shares of common stock issued upon early exercise of stock options — — — 2 Total 465 688 465 14,231 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | 15. SEGMENT INFORMATION The Company is organized into two reportable segments as follows: Platform Consists of revenue generated from sale of digital advertising, content distribution services, subscription and transaction revenue share including Premium Subscriptions, sale of branded buttons on remote controls and licensing arrangements with service operators and TV brands. Player Consists of revenue generated from sale of streaming 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 are as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Platform segment revenue: Customer H 10 % 16 % 11 % 15 % Player segment revenue: Customer A 11 % 11 % 10 % 11 % Customer B 21 % 16 % 21 % 16 % Customer C 33 % 39 % 36 % 41 % Revenue in international markets was less than 10% in each of the periods presented above. Substantially all of the Company’s assets were held in the United States as of September 30, 2021 and December 31, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2020, filed with the SEC on February 26, 2021 (the “Annual Report”). The condensed consolidated balance sheet as of December 31, 2020 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 nine months ended September 30, 2021 are not necessarily indicative of the operating results to be expected for the full year or any future periods. |
Use of Estimates | Use of Estimates The preparation of the Company’s condensed consolidated financial statements in accordance with U.S. GAAP requires management to make certain estimates, judgments, 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, 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 sales incentive programs; the impairment of goodwill and intangible assets; valuation of assets acquired and liabilities assumed in connection with business combinations; useful lives of tangible and intangible assets; allowances for doubtful accounts; the valuation of deferred income tax assets; and stock-based compensation. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results may differ from the Company’s estimates and assumptions. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements, which include the accounts of Roku, Inc. and its wholly-owned subsidiaries, have been prepared in conformity with U.S. GAAP. All intercompany accounts and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. As of September 30, 2021, two financial institutions managed 33% and 28%, respectively, of the Company’s cash and cash equivalents balance. As of December 31, 2020, two financial institutions managed 46% and 26%, respectively, of the Company’s cash and cash equivalents balance. |
Accounts Receivable, net | Accounts Receivable, net Accounts receivable are typically unsecured and are derived from revenue earned from customers. They are stated at invoice value less estimated allowances for sales returns, sales incentives, doubtful accounts and other miscellaneous allowances. The Company performs ongoing credit evaluations of its customers to determine allowances for potential credit losses and doubtful accounts. The Company considers historical experience, ongoing promotional activities, historical claim rate and other factors to determine the allowances for sales returns and sales incentives. Allowance for Sales Returns : Allowance for sales returns consists of the following activities (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Beginning balance $ (4,515 ) $ (5,412 ) $ (5,912 ) $ (6,550 ) Charged to revenue (3,082 ) (2,313 ) (10,133 ) (8,998 ) Utilization of sales return reserve 3,554 3,402 12,002 11,225 Ending balance $ (4,043 ) $ (4,323 ) $ (4,043 ) $ (4,323 ) Allowance for Sales Incentives : Allowance for sales incentives consists of the following activities (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Beginning balance $ (16,640 ) $ (8,962 ) $ (30,838 ) $ (19,476 ) Charged to revenue (17,379 ) (10,470 ) (44,953 ) (28,127 ) Utilization of sales incentive reserve 14,184 11,366 55,956 39,537 Ending balance $ (19,835 ) $ (8,066 ) $ (19,835 ) $ (8,066 ) Allowance for Doubtful Accounts : Allowance for doubtful accounts consists of the following activities (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Beginning balance $ (3,082 ) $ (4,403 ) $ (4,181 ) $ (1,140 ) Impact of adoption of ASU 2016-13 — — — (1,066 ) Adjusted beginning balance (3,082 ) (4,403 ) (4,181 ) (2,206 ) Provision for (recoveries of) doubtful accounts 381 (131 ) 1,480 (3,097 ) Adjustments for recovery and write-off 1,119 10 1,119 779 Ending balance $ (1,582 ) $ (4,524 ) $ (1,582 ) $ (4,524 ) The Company did not have any customer that accounted for more than 10% of its accounts receivable, net balance as of September 30, 2021. |
Recently Adopted Accounting Standards | Recently On January 1, 2021, the Company adopted the guidance issued in Accounting Standards Updates (“ASU”) 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Fair Value | The Company’s financial assets measured at fair value are as follows (in thousands): As of September 30, 2021 As of December 31, 2020 Fair Value Level 1 Fair Value Level 1 Assets: Cash and cash equivalents: Cash $ 1,736,948 $ 1,736,948 $ 1,021,022 $ 1,021,022 Money market funds 442,797 442,797 71,793 71,793 Restricted cash, current — — 434 434 Restricted cash, non-current 1,512 1,512 — — Total assets measured and recorded at fair value $ 2,181,257 $ 2,181,257 $ 1,093,249 $ 1,093,249 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. Further, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs in measuring fair value and utilizes a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. The three levels of inputs used to measure fair value are as follows: Level 1 —Quoted prices in active markets for identical assets or liabilities. Financial assets and liabilities measured using Level 1 inputs include cash equivalents including restricted cash, accounts receivable, prepaid expenses, accounts payable and accrued liabilities. The Company considers all highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase to be cash equivalents. The Company measured money market funds of $442.8 million and $71.8 million as cash equivalents as of September 30, 2021 and December 31, 2020, 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 on September 30, 2021 and December 31, 2020. 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 on September 30, 2021 and December 31, 2020. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Non-financial assets such as goodwill, intangible assets, property, plant, and equipment, operating lease right-of-use (“ROU”) assets and content assets are evaluated for impairment and adjusted to fair value using Level 3 inputs, only when impairment is recognized. Impairment charges for the three and nine months ended September 30, 2021 and for the year ended December 31, 2020 were not material. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Sales Returns | Allowance for sales returns consists of the following activities (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Beginning balance $ (4,515 ) $ (5,412 ) $ (5,912 ) $ (6,550 ) Charged to revenue (3,082 ) (2,313 ) (10,133 ) (8,998 ) Utilization of sales return reserve 3,554 3,402 12,002 11,225 Ending balance $ (4,043 ) $ (4,323 ) $ (4,043 ) $ (4,323 ) |
Schedule of Allowance for Sales Incentives | Allowance for sales incentives consists of the following activities (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Beginning balance $ (16,640 ) $ (8,962 ) $ (30,838 ) $ (19,476 ) Charged to revenue (17,379 ) (10,470 ) (44,953 ) (28,127 ) Utilization of sales incentive reserve 14,184 11,366 55,956 39,537 Ending balance $ (19,835 ) $ (8,066 ) $ (19,835 ) $ (8,066 ) |
Schedule of Allowance for Doubtful Accounts | Allowance for doubtful accounts consists of the following activities (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Beginning balance $ (3,082 ) $ (4,403 ) $ (4,181 ) $ (1,140 ) Impact of adoption of ASU 2016-13 — — — (1,066 ) Adjusted beginning balance (3,082 ) (4,403 ) (4,181 ) (2,206 ) Provision for (recoveries of) doubtful accounts 381 (131 ) 1,480 (3,097 ) Adjustments for recovery and write-off 1,119 10 1,119 779 Ending balance $ (1,582 ) $ (4,524 ) $ (1,582 ) $ (4,524 ) |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Contract Balances | The contract balances include the following (in thousands): As of September 30, 2021 December 31, 2020 Accounts receivable, net $ 595,911 $ 523,852 Contract assets (included in Prepaid expenses and other current assets) 47,673 7,431 Deferred revenue, current portion $ 45,559 $ 55,465 Deferred revenue, non-current portion 23,420 21,283 Total deferred revenue $ 68,979 $ 76,748 |
Schedule of Customer Accounting for 10% or More of Net Revenue | Customers accounting for 10% or more of the Company’s net revenue were as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Customer C * 11 % * 12 % Customer H * 11 % * 10 % * Less than 10%. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Nielsen's Advanced Video Advertising Business | |
Schedule of Preliminary Allocation of Purchase Consideration to Tangible and Intangible Assets Acquired and Liabilities Assumed | The preliminary 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): Fair Values Assets acquired Cash and cash equivalents $ 3,057 Prepaid expenses and other current assets 85 Property and equipment, net 584 Intangible assets: Developed technology 14,200 IPR&D technology 8,500 Goodwill 22,055 Operating lease right-of-use assets 1,235 Other non-current assets 1,927 Total assets acquired 51,643 Liabilities assumed Accounts payable and accrued liabilities (1,168 ) Operating lease liabilities (830 ) Other long-term liabilities (2,254 ) Total liabilities assumed (4,252 ) Total purchase consideration $ 47,391 |
Summary of Preliminary Valuation of Intangible Assets Acquired | The preliminary valuation of the intangible assets acquired from Nielsen’s AVA business along with their estimated useful lives, is as follows (in thousands, except years): Estimated Fair Value Estimated Weighted-Average Useful Lives (in years) Developed technology $ 14,200 5.9 IPR&D technology 8,500 — Estimated fair value of acquired intangible assets $ 22,700 5.9 |
TOH Intermediate Holdings, LLC | |
Schedule of Preliminary Allocation of Purchase Consideration to Tangible and Intangible Assets Acquired and Liabilities Assumed | The preliminary allocation of the purchase consideration to tangible and intangible assets acquired and liabilities assumed, reflecting measurement period adjustments through September 30, 2021, is based on estimated fair values and is as follows (in thousands): Fair Values Assets acquired Cash and cash equivalents $ 7 Accounts receivable 5,830 Prepaid expenses and other current assets 7,310 Property and equipment, net 307 Intangible assets: Tradename 20,000 Customer relationships 700 Goodwill 46,671 Operating lease right-of-use assets 5,498 Other non-current assets 23,487 Total assets acquired 109,810 Liabilities assumed Accounts payable and accrued liabilities (2,747 ) Deferred revenue, current portion (4,146 ) Operating lease liabilities (4,262 ) Deferred revenue, non-current portion (816 ) Other long-term liabilities (28 ) Total liabilities assumed (11,999 ) Total purchase consideration $ 97,811 |
Summary of Preliminary Valuation of Intangible Assets Acquired | The valuation of the intangible assets acquired from This Old House along with their estimated useful lives, is as follows (in thousands, except years): Estimated Fair Value Estimated Weighted-Average Useful Lives (in years) Tradename $ 20,000 10.0 Customer relationships 700 4.0 Estimated fair value of acquired intangible assets $ 20,700 9.8 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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, 2020 $ 73,058 Additions: This Old House acquisition 46,671 Nielsen AVA business acquisition 22,055 Other immaterial acquisitions 5,000 Balance as of September 30, 2021 $ 146,784 |
Summary of Intangible Assets | The following table is the summary of the Company’s intangible assets (in thousands, except years): As of September 30, 2021 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Useful Lives (in years) Developed technology $ 76,567 $ (22,596 ) $ 53,971 5.9 IPR&D technology 8,500 — 8,500 — Customer relationships 14,100 (6,514 ) 7,586 4.0 Tradename 20,400 (1,466 ) 18,934 9.8 Patents 4,076 (533 ) 3,543 14.0 Intangible assets $ 123,643 $ (31,109 ) $ 92,534 6.7 As of December 31, 2020 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Weighted-Average Useful Lives (in years) Developed technology $ 62,367 $ (13,439 ) $ 48,928 5.9 Customer relationships 13,400 (3,908 ) 9,492 4.0 Tradename 400 (400 ) — 0.5 Patents 4,076 (315 ) 3,761 14.0 Intangible assets $ 80,243 $ (18,062 ) $ 62,181 6.0 |
Schedule of Estimated Future Amortization Expense for Intangible Assets | As of September 30, 2021, the estimated future amortization expense for intangible assets for the next five years and thereafter is as follows (in thousands): Year Ending December 31, 2021 (remaining 3 months) $ 4,588 2022 18,302 2023 17,600 2024 14,808 2025 13,104 Thereafter 15,632 Total $ 84,034 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net consists of the following (in thousands): As of September 30, 2021 December 31, 2020 Gross accounts receivable $ 621,542 $ 565,088 Allowance for sales returns (4,043 ) (5,912 ) Allowance for sales incentives (19,835 ) (30,838 ) Allowance for doubtful accounts (1,582 ) (4,181 ) Other allowances (171 ) (305 ) Total allowances (25,631 ) (41,236 ) Total accounts receivable, net of allowances $ 595,911 $ 523,852 |
Schedule of Property and Equipment, Net | Property and equipment, net consists of the following (in thousands): As of September 30, 2021 December 31, 2020 Computers and equipment $ 36,825 $ 30,859 Leasehold improvements 170,771 144,013 Website and internal-use software 7,274 6,744 Office equipment and furniture 19,886 19,661 Total property and equipment 234,756 201,277 Accumulated depreciation and amortization (64,150 ) (46,080 ) Property and equipment, net $ 170,606 $ 155,197 |
Schedule of Accrued Liabilities | Accrued liabilities consists of the following (in thousands): As of September 30, 2021 December 31, 2020 Payments due to content publishers $ 155,175 $ 106,576 Accrued cost of revenue 101,952 98,285 Marketing, retail and merchandising costs 32,681 43,645 Operating lease liability, current 34,723 35,647 Content liability, current 52,536 6,165 Accrued payroll and related expenses 32,523 15,675 Other accrued expenses 72,467 41,675 Total accrued liabilities $ 482,057 $ 347,668 |
Schedule of Deferred Revenue | Deferred revenue consists of the following (in thousands): As of September 30, 2021 December 31, 2020 Platform, current $ 22,140 $ 27,587 Player, current 23,419 27,878 Total deferred revenue, current 45,559 55,465 Platform, non-current 10,175 9,909 Player, non-current 13,245 11,374 Total deferred revenue, non-current 23,420 21,283 Total deferred revenue $ 68,979 $ 76,748 |
Content Assets (Tables)
Content Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Capitalized Content Costs [Abstract] | |
Schedule of Content Assets, Net | Content assets, net consisted of the following (in thousands): As of September 30, 2021 December 31, 2020 Licensed content, net $ 145,021 $ 7,907 Produced content, net Released, less amortization 19,963 — Completed, not released 2,422 — In production 1,890 — 24,275 — Total licensed and produced content, net $ 169,296 $ 7,907 |
Schedule of Amortization of Content Assets Included in Cost of Revenue in Condensed Consolidated Statement of Operations | Amortization of content assets is included in Cost of revenue, platform in the condensed consolidated statement of operations and is reflected in the table below (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Licensed content $ 23,454 $ 4,949 $ 48,925 $ 17,131 Produced content 5,034 — 7,655 — Total amortization costs $ 28,488 $ 4,949 $ 56,580 $ 17,131 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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): As of September 30, 2021 As of December 31, 2020 Fair Value Level 1 Fair Value Level 1 Assets: Cash and cash equivalents: Cash $ 1,736,948 $ 1,736,948 $ 1,021,022 $ 1,021,022 Money market funds 442,797 442,797 71,793 71,793 Restricted cash, current — — 434 434 Restricted cash, non-current 1,512 1,512 — — Total assets measured and recorded at fair value $ 2,181,257 $ 2,181,257 $ 1,093,249 $ 1,093,249 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Operating lease cost (1) $ 11,291 $ 10,126 $ 32,938 $ 32,034 Variable lease cost 3,555 2,904 11,048 8,433 Net operating lease cost $ 14,846 $ 13,030 $ 43,986 $ 40,467 (1) |
Schedule of Supplemental Cash Flow Information Related To Leases | Supplemental cash flow information related to leases is as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 11,663 $ 6,320 $ 39,642 $ 21,504 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 55,350 $ 3,690 $ 101,886 $ 6,461 |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate As of September 30, 2021 December 31, 2020 Operating lease right-of-use assets $ 346,691 $ 266,197 Operating lease liability, current (included in accrued liabilities) $ 34,723 $ 35,647 Operating lease liability, non-current 394,515 307,936 Total operating lease liability $ 429,238 $ 343,583 Weighted-average remaining lease term: Operating leases (in years) 8.68 9.05 Weighted-average discount rate: Operating leases 4.04 % 4.60 % |
Schedule of Future Lease Payments under Operating Leases | Future lease payments under operating leases as of September 30, 2021 are as follows (in thousands): Year Ending December 31, Operating Leases 2021 (remaining 3 months) $ 12,072 2022 50,364 2023 61,421 2024 60,168 2025 59,897 Thereafter 278,027 Total future lease payments 521,949 Less: imputed interest (83,069 ) Less: expected tenant improvement allowance (9,642 ) Total $ 429,238 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The Company’s outstanding debt as of September 30, 2021 and December 31, 2020 is as follows (in thousands, except interest rates): As of September 30, 2021 December 31, 2020 Amount Effective Interest Rate Amount Effective Interest Rate Term Loan A Facility $ 91,250 2.02 % $ 95,000 2.03 % Less: Debt issuance costs (163 ) (258 ) Net carrying amount of debt $ 91,087 $ 94,742 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Schedule of Reserved Shares of Common Stock for Issuance | As of September 30, 2021, the Company had reserved shares of common stock for issuance as follows (in thousands): As of September 30, 2021 Common stock awards granted under equity incentive plans 10,397 Common stock awards available for issuance under the 2017 Employee Stock Purchase Plan (1) 5,089 Common stock awards available for issuance under the 2017 Equity Incentive Plan 27,056 Total reserved shares of common stock 42,542 (1) |
Summary of Restricted Stock Unit Activity | The following table summarizes the Company’s restricted stock unit activities for the nine months ended September 30, 2021 (in thousands, except per share data): Number of Shares Weighted-Average Grant Date Fair Value per Share Balance as of December 31, 2020 4,355 $ 92.91 Awarded 790 365.21 Released (1,243 ) 78.20 Forfeited (278 ) 120.84 Balance as of September 30, 2021 3,624 $ 155.14 |
Schedule of Stock Option Activity | The following table summarizes the Company’s stock option activities for the nine months ended September 30, 2021 Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance as of December 31, 2020 8,733 $ 26.19 5.7 Granted 318 356.94 — Exercised (2,272 ) 5.91 — Forfeited and expired (6 ) 16.86 — Balance as of September 30, 2021 6,773 $ 48.54 5.8 $ 1,807,297 Options exercisable as of September 30, 2021 4,950 $ 12.36 4.9 $ 1,490,537 |
Schedule of Stock-based Compensation Expense | The following table shows the total stock-based compensation expense for the three and nine months ended September 30, 2021 and 2020 (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Cost of platform revenue $ 199 $ 206 $ 564 $ 649 Cost of player revenue 618 362 1,348 1,010 Research and development 20,893 14,873 56,024 41,476 Sales and marketing 16,591 11,572 44,229 31,244 General and administrative 12,095 7,894 31,314 20,969 Total stock-based compensation $ 50,396 $ 34,907 $ 133,479 $ 95,348 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Calculation of Basic and Diluted Net Income (Loss) Per Share | The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Numerator: Net income (loss) $ 68,935 $ 12,947 $ 218,698 $ (84,813 ) Denominator: Weighted-average common shares outstanding — basic 133,685 125,687 132,036 122,837 Net income (loss) per share — basic $ 0.52 $ 0.10 $ 1.66 $ (0.69 ) Weighted-average common shares outstanding — basic 133,685 125,687 132,036 122,837 Common stock equivalents 8,601 10,982 9,557 — Weighted-average common shares outstanding — diluted 142,286 136,669 141,593 122,837 Net income (loss) per share — diluted $ 0.48 $ 0.09 $ 1.54 $ (0.69 ) |
Schedule of Antidilutive Securities Excluded from Calculation of Diluted Net Income or Net Loss Per Share | Common stock equivalents excluded from the calculation of diluted net income per share or excluded from the calculation of diluted net loss per share because of their anti-dilutive effect are as follows (in thousands): Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Restricted stock units and stock options 465 688 465 14,229 Unvested shares of common stock issued upon early exercise of stock options — — — 2 Total 465 688 465 14,231 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Customer Accounting for 10% or More of Segment Revenue | Customers accounting for 10% or more of segment revenue are as follows: Three Months Ended Nine Months Ended September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020 Platform segment revenue: Customer H 10 % 16 % 11 % 15 % Player segment revenue: Customer A 11 % 11 % 10 % 11 % Customer B 21 % 16 % 21 % 16 % Customer C 33 % 39 % 36 % 41 % |
The Company - Additional Inform
The Company - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021segment | |
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) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021FinancialInstitutionCustomer | Dec. 31, 2020FinancialInstitution | |
Accounting Standards Update 2019-12 | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Change in accounting principle, accounting standards update, adopted [true false] | true | |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | |
Change in accounting principle, accounting standards update, immaterial effect [true false] | true | |
Accounting Standards Update 2020-04 | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Change in accounting principle, accounting standards update, adopted [true false] | true | |
Change in accounting principle, accounting standards update, adoption date | Mar. 12, 2020 | |
Customer Concentration Risk | Net Accounts Receivable | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Number of customers accounted for 10% or more | Customer | 0 | |
Customer 1 | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Cash and cash equivalents balance percentage | 33.00% | 46.00% |
Number of financial institutions which manage cash balances | 2 | 2 |
Customer 2 | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Cash and cash equivalents balance percentage | 28.00% | 26.00% |
Number of financial institutions which manage cash balances | 2 | 2 |
Customer H | Customer Concentration Risk | Net Accounts Receivable | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration risk percentage | 11.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Allowance for Sales Returns (Details) - Allowance for Sales Returns - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Beginning balance | $ (4,515) | $ (5,412) | $ (5,912) | $ (6,550) |
Charged to revenue | (3,082) | (2,313) | (10,133) | (8,998) |
Utilization of sales return reserve | 3,554 | 3,402 | 12,002 | 11,225 |
Ending balance | $ (4,043) | $ (4,323) | $ (4,043) | $ (4,323) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Allowance for Sales Incentives (Details) - Allowance for Sales Incentives - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Beginning balance | $ (16,640) | $ (8,962) | $ (30,838) | $ (19,476) |
Charged to revenue | (17,379) | (10,470) | (44,953) | (28,127) |
Utilization of sales incentive reserve | 14,184 | 11,366 | 55,956 | 39,537 |
Ending balance | $ (19,835) | $ (8,066) | $ (19,835) | $ (8,066) |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Allowance for Doubtful Accounts (Details) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Beginning balance | $ (3,082) | $ (4,403) | $ (4,181) | $ (2,206) |
Provision for (recoveries of) doubtful accounts | 381 | (131) | 1,480 | (3,097) |
Adjustments for recovery and write-off | 1,119 | 10 | 1,119 | 779 |
Ending balance | (1,582) | (4,524) | (1,582) | (4,524) |
Accounting Standards Update 2016-13 | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Beginning balance | (1,066) | |||
Prior to Adoption of ASU 2016-13 | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Beginning balance | $ (3,082) | $ (4,403) | $ (4,181) | $ (1,140) |
Revenue - Additional Informatio
Revenue - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)segment | Sep. 30, 2020USD ($) | |
Revenue From Contract With Customer [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Contract with customer assets increase (decrease) | $ 40.2 | |||
Increase (decrease) in deferred revenue | (7.8) | |||
Deferred revenue recognized | $ 9.3 | $ 7.9 | 49 | $ 36.6 |
Estimated contracted revenue | $ 1,218.2 | $ 1,218.2 | ||
Revenue, remaining performance obligation, expected timing of satisfaction, Description | Revenue allocated to remaining performance obligations represents estimated contracted revenue that has not yet been recognized which includes both deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Estimated contracted revenue for these remaining performance obligations was $1,218.2 million as of September 30, 2021 of which we expect to recognize approximately 38% over the next 12 months and the remainder thereafter. | |||
Revenue remaining performance obligation percentage of revenue expected to be recognized | 38.00% | 38.00% | ||
Revenue recognized from performance obligation satisfied in previous period | $ 4.5 | $ 13.6 | $ 29.3 | $ 11.5 |
Revenue - Schedule of Contract
Revenue - Schedule of Contract Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule Of Contract Balances [Line Items] | ||
Accounts receivable, net | $ 595,911 | $ 523,852 |
Deferred revenue, current portion | 45,559 | 55,465 |
Deferred revenue, non-current portion | 23,420 | 21,283 |
Total deferred revenue | 68,979 | 76,748 |
Prepaid Expenses and Other Current Assets | ||
Schedule Of Contract Balances [Line Items] | ||
Contract assets (included in Prepaid expenses and other current assets) | $ 47,673 | $ 7,431 |
Revenue - Schedule of Customer
Revenue - Schedule of Customer Accounting for 10% or More of Net Revenue (Details) - Net Revenue - Customer Concentration Risk | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Customer C | ||
Disaggregation Of Revenue [Line Items] | ||
Concentration risk | 11.00% | 12.00% |
Customer H | ||
Disaggregation Of Revenue [Line Items] | ||
Concentration risk | 11.00% | 10.00% |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ in Thousands | Apr. 15, 2021 | Mar. 19, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Business Acquisition [Line Items] | |||||||
Revenue | $ 679,953 | $ 451,663 | $ 1,899,255 | $ 1,128,502 | |||
Cost of revenue | 316,034 | 236,839 | 870,299 | 625,741 | |||
Gross profit | $ 363,919 | $ 214,824 | $ 1,028,956 | $ 502,761 | |||
Other Non-current Assets | |||||||
Business Acquisition [Line Items] | |||||||
Content assets acquired | $ 22,500 | ||||||
Nielsen's Advanced Video Advertising Business | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, date of merger agreement | Apr. 15, 2021 | ||||||
Preliminary purchase consideration | $ 47,400 | ||||||
Business combination, aggregate cash consideration | 38,500 | ||||||
Business combination, noncash consideration | 15,200 | ||||||
Business combination, service agreements | $ 6,300 | ||||||
Business combination, obligation to deliver services period | 6 years | ||||||
Business combination, contract terms for goods and services to be received period | 6 years | ||||||
Nielsen's Advanced Video Advertising Business | Maximum | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition measurement period | 1 year | ||||||
Nielsen's Advanced Video Advertising Business | General and Administrative Expenses | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition related cost | $ 3,900 | ||||||
TOH Intermediate Holdings, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, date of merger agreement | Mar. 19, 2021 | ||||||
Preliminary purchase consideration | $ 97,800 | ||||||
Revenue | $ 13,500 | ||||||
Gross profit | 6,200 | ||||||
TOH Intermediate Holdings, LLC | Platform | |||||||
Business Acquisition [Line Items] | |||||||
Cost of revenue | $ 7,300 | ||||||
TOH Intermediate Holdings, LLC | General and Administrative Expenses | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition related cost | $ 2,400 |
Business Combinations - Schedul
Business Combinations - Schedule of Preliminary Allocation of Purchase Consideration to Tangible and Intangible Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Apr. 15, 2021 | Mar. 19, 2021 | Dec. 31, 2020 |
Assets acquired | ||||
Goodwill | $ 146,784 | $ 73,058 | ||
Nielsen's Advanced Video Advertising Business | ||||
Assets acquired | ||||
Cash and cash equivalents | $ 3,057 | |||
Prepaid expenses and other current assets | 85 | |||
Property and equipment, net | 584 | |||
Intangible assets | 22,700 | |||
Goodwill | 22,055 | |||
Operating lease right-of-use assets | 1,235 | |||
Other non-current assets | 1,927 | |||
Total assets acquired | 51,643 | |||
Liabilities assumed | ||||
Accounts payable and accrued liabilities | (1,168) | |||
Operating lease liabilities | (830) | |||
Other long-term liabilities | (2,254) | |||
Total liabilities assumed | (4,252) | |||
Total purchase consideration | 47,391 | |||
TOH Intermediate Holdings, LLC | ||||
Assets acquired | ||||
Cash and cash equivalents | $ 7 | |||
Accounts receivable | 5,830 | |||
Prepaid expenses and other current assets | 7,310 | |||
Property and equipment, net | 307 | |||
Intangible assets | 20,700 | |||
Goodwill | 46,671 | |||
Operating lease right-of-use assets | 5,498 | |||
Other non-current assets | 23,487 | |||
Total assets acquired | 109,810 | |||
Liabilities assumed | ||||
Accounts payable and accrued liabilities | (2,747) | |||
Deferred revenue, current portion | (4,146) | |||
Operating lease liabilities | (4,262) | |||
Deferred revenue, non-current portion | (816) | |||
Other long-term liabilities | (28) | |||
Total liabilities assumed | (11,999) | |||
Total purchase consideration | 97,811 | |||
Developed Technology | Nielsen's Advanced Video Advertising Business | ||||
Assets acquired | ||||
Intangible assets | 14,200 | |||
IPR&D Technology | Nielsen's Advanced Video Advertising Business | ||||
Assets acquired | ||||
Intangible assets | $ 8,500 | |||
Tradename | TOH Intermediate Holdings, LLC | ||||
Assets acquired | ||||
Intangible assets | 20,000 | |||
Customer Relationships | TOH Intermediate Holdings, LLC | ||||
Assets acquired | ||||
Intangible assets | $ 700 |
Business Combinations - Summary
Business Combinations - Summary of Preliminary Valuation of Intangible Assets Acquired (Details) - Nielsen's Advanced Video Advertising Business $ in Thousands | Apr. 15, 2021USD ($) |
Business Acquisition [Line Items] | |
Estimated Fair Value | $ 22,700 |
Estimated Weighted-Average Useful Lives (in years) | 5 years 8 months 12 days |
Developed Technology | |
Business Acquisition [Line Items] | |
Estimated Fair Value | $ 14,200 |
Estimated Weighted-Average Useful Lives (in years) | 5 years 10 months 24 days |
IPR&D Technology | |
Business Acquisition [Line Items] | |
Estimated Fair Value | $ 8,500 |
Estimated Weighted-Average Useful Lives (in years) | 5 years 3 months 18 days |
Business Combinations - Summa_2
Business Combinations - Summary of Valuation of Intangible Assets Acquired (Details) - TOH Intermediate Holdings, LLC $ in Thousands | Mar. 19, 2021USD ($) |
Business Acquisition [Line Items] | |
Estimated Fair Value | $ 20,700 |
Estimated Weighted-Average Useful Lives (in years) | 9 years 9 months 18 days |
Customer Relationships | |
Business Acquisition [Line Items] | |
Estimated Fair Value | $ 700 |
Estimated Weighted-Average Useful Lives (in years) | 4 years |
Tradename | |
Business Acquisition [Line Items] | |
Estimated Fair Value | $ 20,000 |
Estimated Weighted-Average Useful Lives (in years) | 10 years |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Carrying Value of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill [Line Items] | |
Beginning Balance | $ 73,058 |
Ending Balance | 146,784 |
This Old House Acquisition | |
Goodwill [Line Items] | |
Acquisitions | 46,671 |
Nielsen AVA Business Acquisition | |
Goodwill [Line Items] | |
Acquisitions | 22,055 |
Other Immaterial Acquisitions | |
Goodwill [Line Items] | |
Acquisitions | $ 5,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 123,643 | $ 80,243 |
Accumulated Amortization | (31,109) | (18,062) |
Net Carrying Amount | $ 92,534 | $ 62,181 |
Weighted-Average Useful Lives (in years) | 6 years 8 months 12 days | 6 years |
Developed Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 76,567 | $ 62,367 |
Accumulated Amortization | (22,596) | (13,439) |
Net Carrying Amount | $ 53,971 | $ 48,928 |
Weighted-Average Useful Lives (in years) | 5 years 10 months 24 days | 5 years 10 months 24 days |
IPR&D Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 8,500 | |
Net Carrying Amount | 8,500 | |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 14,100 | $ 13,400 |
Accumulated Amortization | (6,514) | (3,908) |
Net Carrying Amount | $ 7,586 | $ 9,492 |
Weighted-Average Useful Lives (in years) | 4 years | 4 years |
Tradename | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 20,400 | $ 400 |
Accumulated Amortization | (1,466) | $ (400) |
Net Carrying Amount | $ 18,934 | |
Weighted-Average Useful Lives (in years) | 9 years 9 months 18 days | 6 months |
Patents | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,076 | $ 4,076 |
Accumulated Amortization | (533) | (315) |
Net Carrying Amount | $ 3,543 | $ 3,761 |
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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 4.7 | $ 3.6 | $ 13 | $ 10.9 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Estimated Future Amortization Expense for Intangible Assets (Details) $ in Thousands | Sep. 30, 2021USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2021 (remaining 3 months) | $ 4,588 |
2022 | 18,302 |
2023 | 17,600 |
2024 | 14,808 |
2025 | 13,104 |
Thereafter | 15,632 |
Total | $ 84,034 |
Balance Sheet Components - Sche
Balance Sheet Components - Schedule of Accounts Receivable, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Gross accounts receivable | $ 621,542 | $ 565,088 |
Allowance for accounts receivable | (25,631) | (41,236) |
Total accounts receivable, net of allowances | 595,911 | 523,852 |
Allowance for Sales Returns | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Allowance for accounts receivable | (4,043) | (5,912) |
Allowance for Sales Incentives | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Allowance for accounts receivable | (19,835) | (30,838) |
Allowance for Doubtful Accounts | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Allowance for accounts receivable | (1,582) | (4,181) |
Other Allowances | ||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||
Allowance for accounts receivable | $ (171) | $ (305) |
Balance Sheet Components - Sc_2
Balance Sheet Components - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 234,756 | $ 201,277 |
Accumulated depreciation and amortization | (64,150) | (46,080) |
Property and equipment, net | 170,606 | 155,197 |
Computer and Equipment | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 36,825 | 30,859 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 170,771 | 144,013 |
Website and Internal-Use Software | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | 7,274 | 6,744 |
Office Equipment and Furniture | ||
Property Plant And Equipment [Line Items] | ||
Total property and equipment | $ 19,886 | $ 19,661 |
Balance Sheet Components - Addi
Balance Sheet Components - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Balance Sheet Related Disclosures [Abstract] | ||||
Depreciation and amortization | $ 6.2 | $ 5.8 | $ 18.3 | $ 15.6 |
Balance Sheet Components - Sc_3
Balance Sheet Components - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accrued Liabilities Current [Abstract] | ||
Payments due to content publishers | $ 155,175 | $ 106,576 |
Accrued cost of revenue | 101,952 | 98,285 |
Marketing, retail and merchandising costs | 32,681 | 43,645 |
Operating lease liability, current | 34,723 | 35,647 |
Content liability, current | 52,536 | 6,165 |
Accrued payroll and related expenses | 32,523 | 15,675 |
Other accrued expenses | 72,467 | 41,675 |
Total accrued liabilities | $ 482,057 | $ 347,668 |
Balance Sheet Components - Sc_4
Balance Sheet Components - Schedule of Deferred Revenue (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current | $ 45,559 | $ 55,465 |
Total deferred revenue, non-current | 23,420 | 21,283 |
Total deferred revenue | 68,979 | 76,748 |
Platform | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current | 22,140 | 27,587 |
Total deferred revenue, non-current | 10,175 | 9,909 |
Player | ||
Deferred Revenue Arrangement [Line Items] | ||
Total deferred revenue, current | 23,419 | 27,878 |
Total deferred revenue, non-current | $ 13,245 | $ 11,374 |
Content Assets - Schedule of Co
Content Assets - Schedule of Content Assets, Net (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Content Assets [Line Items] | ||
Total licensed and produced content, net | $ 169,296 | $ 7,907 |
Licensed content, net | ||
Content Assets [Line Items] | ||
Content assets | 145,021 | $ 7,907 |
Product content released, less amortization | ||
Content Assets [Line Items] | ||
Content assets | 19,963 | |
Product content completed, not released | ||
Content Assets [Line Items] | ||
Content assets | 2,422 | |
Produced content, in production | ||
Content Assets [Line Items] | ||
Content assets | 1,890 | |
Goods | ||
Content Assets [Line Items] | ||
Content assets | $ 24,275 |
Content Assets - Additional Inf
Content Assets - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
This Old House Acquisition | |
Content Assets [Line Items] | |
Content assets acquired | $ 161.4 |
Content Assets - Schedule of Am
Content Assets - Schedule of Amortization of Content Assets Included in Cost of Revenue in Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Capitalized Content Costs [Abstract] | ||||
Licensed content | $ 23,454 | $ 4,949 | $ 48,925 | $ 17,131 |
Produced content | 5,034 | 7,655 | ||
Total amortization costs | $ 28,488 | $ 4,949 | $ 56,580 | $ 17,131 |
Fair Value - Schedule of Financ
Fair Value - Schedule of Financial Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Assets: | |||
Restricted cash, current | $ 434 | $ 746 | |
Restricted cash, non-current | $ 1,512 | ||
Total assets measured and recorded at fair value | 2,181,257 | 1,093,249 | |
Level 1 | |||
Assets: | |||
Restricted cash, current | 434 | ||
Restricted cash, non-current | 1,512 | ||
Total assets measured and recorded at fair value | 2,181,257 | 1,093,249 | |
Cash | |||
Assets: | |||
Cash and cash equivalents | 1,736,948 | 1,021,022 | |
Cash | Level 1 | |||
Assets: | |||
Cash and cash equivalents | 1,736,948 | 1,021,022 | |
Money Market Funds | |||
Assets: | |||
Cash and cash equivalents | 442,797 | 71,793 | |
Money Market Funds | Level 1 | |||
Assets: | |||
Cash and cash equivalents | $ 442,797 | $ 71,793 |
Fair Value - Additional Informa
Fair Value - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Money Market Funds | Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 442.8 | $ 71.8 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Lessee Lease Description [Line Items] | |
Lessee, operating lease, existence of option to extend | true |
Lessee, operating lease, existence of option to terminate | true |
Commitment relating to operating lease, that have not yet commenced | $ 14.6 |
Minimum | |
Lessee Lease Description [Line Items] | |
Remaining lease term, operating lease | 1 year |
Operating leases that have not yet commenced, lease terms | 2 years |
Maximum | |
Lessee Lease Description [Line Items] | |
Remaining lease term, operating lease | 10 years |
Operating leases that have not yet commenced, lease terms | 5 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Leases [Abstract] | |||||
Operating lease cost | [1] | $ 11,291 | $ 10,126 | $ 32,938 | $ 32,034 |
Variable lease cost | 3,555 | 2,904 | 11,048 | 8,433 | |
Net operating lease cost | $ 14,846 | $ 13,030 | $ 43,986 | $ 40,467 | |
[1] | Operating lease cost is presented net of sublease income. Sublease income for the three and nine months ended September 30, 2021 and September 30, 2020, respectively, was not material. |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash outflows from operating leases | $ 11,663 | $ 6,320 | $ 39,642 | $ 21,504 |
Right-of-use assets obtained in exchange for lease obligations: | ||||
Operating leases | $ 55,350 | $ 3,690 | $ 101,886 | $ 6,461 |
Leases - Schedule of Suppleme_2
Leases - Schedule of Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 346,691 | $ 266,197 |
Operating lease liability, current | $ 34,723 | $ 35,647 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent |
Operating lease liability, non-current | $ 394,515 | $ 307,936 |
Total operating lease liability | $ 429,238 | $ 343,583 |
Weighted-average remaining lease term: | ||
Operating leases (in years) | 8 years 8 months 4 days | 9 years 18 days |
Weighted-average discount rate: | ||
Operating leases | 4.04% | 4.60% |
Leases - Schedule of Future Lea
Leases - Schedule of Future Lease Payments under Operating Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2021 (remaining 3 months) | $ 12,072 | |
2022 | 50,364 | |
2023 | 61,421 | |
2024 | 60,168 | |
2025 | 59,897 | |
Thereafter | 278,027 | |
Total future lease payments | 521,949 | |
Less: imputed interest | (83,069) | |
Less: expected tenant improvement allowance | (9,642) | |
Total | $ 429,238 | $ 343,583 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - Term Loan A Facility - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Principal amount | $ 91,250 | $ 95,000 |
Less: Debt issuance costs | (163) | (258) |
Net carrying amount of debt | $ 91,087 | $ 94,742 |
Effective Interest Rate | 2.02% | 2.03% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Mar. 24, 2020 | Nov. 18, 2019 | May 03, 2019 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | $ 30,800,000 | $ 30,800,000 | $ 30,900,000 | |||||
Term Loan A Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest expense | 500,000 | $ 600,000 | 1,600,000 | $ 2,000,000 | ||||
Term Loan A Facility | Morgan Stanley Senior Funding, Inc | Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument term, years | 4 years | |||||||
Debt instrument, aggregate principal amount | $ 100,000,000 | |||||||
Amount borrowed under debt facility | $ 100,000,000 | |||||||
Term Loan A Facility | Morgan Stanley Senior Funding, Inc | Credit Agreement | Adjusted One-Month LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, applicable margin on variable rate | 1.75% | |||||||
Revolving Credit Facility | Morgan Stanley Senior Funding, Inc | Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument term, years | 4 years | |||||||
Maximum borrowing capacity | $ 100,000,000 | |||||||
Letters of credit outstanding | $ 30,800,000 | $ 30,800,000 | $ 30,800,000 | |||||
Revolving Credit Facility | Morgan Stanley Senior Funding, Inc | Credit Agreement | Adjusted One-Month LIBOR | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, applicable margin on variable rate | 1.75% |
Stockholders' Equity - Preferre
Stockholders' Equity - Preferred Stock - Additional Information (Details) - shares | Sep. 30, 2021 | Dec. 31, 2020 |
Equity [Abstract] | ||
Preferred stock, shares authorized | 10,000,000 | |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021Class | |
Class Of Stock [Line Items] | |
Number of classes | 2 |
Class A Common Stock | |
Class Of Stock [Line Items] | |
Common stock, voting right | one vote for each share |
Class B Common Stock | |
Class Of Stock [Line Items] | |
Common stock, voting right | ten votes for each share |
Stockholders' Equity - At-the-M
Stockholders' Equity - At-the-Market Offering - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Mar. 02, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | Sep. 30, 2020 |
Class Of Stock [Line Items] | ||||
Gross proceeds from issuance of common stock | $ 989,615 | $ 497,242 | ||
Class A Common Stock | At-the-Market Offerings | ||||
Class Of Stock [Line Items] | ||||
Aggregate shares of common stock, sold | 2.6 | |||
Gross proceeds from issuance of common stock | $ 1,000,000 | $ 1,000,000 | ||
Average selling price per share | $ 379.26 | |||
Stock Issuance Costs | $ 10,400 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Reserved Shares of Common Stock for Issuance (Details) shares in Thousands | Sep. 30, 2021shares | |
Class Of Stock [Line Items] | ||
Total reserved shares of common stock | 42,542 | |
Equity Incentive Plan | ||
Class Of Stock [Line Items] | ||
Common stock awards granted under equity incentive plans | 10,397 | |
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 | 27,056 | |
[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) | 9 Months Ended |
Sep. 30, 2021Plan | |
Class Of Stock [Line Items] | |
Number of equity incentive plans | 2 |
2017 Plan | Employee Stock Option | |
Class Of Stock [Line Items] | |
Percentage of voting rights | 10.00% |
2017 Plan | Employee Stock Option | Minimum | 10% Shareholder | |
Class Of Stock [Line Items] | |
Stock option fair market value at the date of grant, percent | 110.00% |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units shares in Thousands | 9 Months Ended |
Sep. 30, 2021$ / 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 | 4,355 |
Number of Shares, Awarded | shares | 790 |
Number of Shares, Released | shares | (1,243) |
Number of Shares, Forfeited | shares | (278) |
Ending balance, Number of Shares outstanding | shares | 3,624 |
Weighted Average Grant Date Fair Value Per Share, Beginning balance | $ / shares | $ 92.91 |
Weighted Average Grant Date Fair Value Per Share, Awarded | $ / shares | 365.21 |
Weighted Average Grant Date Fair Value Per Share, Released | $ / shares | 78.20 |
Weighted Average Grant Date Fair Value Per Share, Forfeited | $ / shares | 120.84 |
Weighted Average Grant Date Fair Value Per Share, Ending balance | $ / shares | $ 155.14 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Units - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Expected weighted average period to recognize unrecognized stock compensation expense | 2 years 1 month 6 days |
Restricted Stock Units | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Unrecognized stock compensation expense | $ 476.7 |
Expected weighted average period to recognize unrecognized stock compensation expense | 2 years 1 month 13 days |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Balance, Number of Shares | 8,733 | |
Granted, Number of Shares | 318 | |
Exercised, Number of Shares | (2,272) | |
Forfeited and expired, Number of Shares | (6) | |
Balance, Number of Shares | 6,773 | 8,733 |
Options exercisable as of June 30, 2021, Number of Shares | 4,950 | |
Balance, Weighted Average Exercise Price | $ 26.19 | |
Granted, Weighted Average Exercise Price | 356.94 | |
Exercised, Weighted Average Exercise Price | 5.91 | |
Forfeited and expired, Weighted Average Exercise Price | 16.86 | |
Balance, Weighted Average Exercise Price | 48.54 | $ 26.19 |
Options exercisable as of June 30, 2021, Weighted Average Exercise Price | $ 12.36 | |
Balance, Weighted Average Remaining Contractual Life (Years) | 5 years 9 months 18 days | 5 years 8 months 12 days |
Options exercisable as of June 30, 2021, Weighted Average Remaining Contractual Life | 4 years 10 months 24 days | |
Outstanding, ending balance | $ 1,807,297 | |
Options exercisable, ending balance | $ 1,490,537 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Option Plan - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Unrecognized stock-based compensation expense | $ 75.9 |
Expected weighted average period to recognize unrecognized stock compensation expense | 2 years 1 month 6 days |
Stockholders' Equity - Stock-ba
Stockholders' Equity - Stock-based Compensation - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Employee Stock Option | |
Class Of Stock [Line Items] | |
Stock option term | 10 years |
Employee Stock Option | 2008 Plan | Tranche One | |
Class Of Stock [Line Items] | |
Stock granted to employees vesting rights, percentage | 25.00% |
Employee Stock Option | 2008 Plan | Tranche Two | |
Class Of Stock [Line Items] | |
Stock granted to employees vesting rights, terms of award | one year and then 1/48th monthly thereafter |
Employee Stock Option | 2017 Plan | |
Class Of Stock [Line Items] | |
Stock option term | 10 years |
Employee Stock Option | 2017 Plan | Minimum [Member] | |
Class Of Stock [Line Items] | |
Share-based compensation arrangement by share-based payment vesting period | 1 year |
Employee Stock Option | 2017 Plan | Maximum | |
Class Of Stock [Line Items] | |
Share-based compensation arrangement by share-based payment vesting period | 4 years |
Restricted Stock Units | |
Class Of Stock [Line Items] | |
Share-based compensation arrangement by share-based payment vesting period | 4 years |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 50,396 | $ 34,907 | $ 133,479 | $ 95,348 |
Cost of Revenue | Platform | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 199 | 206 | 564 | 649 |
Cost of Revenue | Player | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 618 | 362 | 1,348 | 1,010 |
Research and Development | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 20,893 | 14,873 | 56,024 | 41,476 |
Sales and Marketing | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | 16,591 | 11,572 | 44,229 | 31,244 |
General and Administrative | ||||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||||
Stock-based compensation expense | $ 12,095 | $ 7,894 | $ 31,314 | $ 20,969 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Commitments And Contingencies [Line Items] | |||
Indemnification asset released for payment of portion of liabilities assumed | $ 11.9 | ||
Indemnification liability released for payment of portion of liabilities assumed | 11.9 | ||
Letters of credit outstanding | $ 30.8 | $ 30.9 | |
Letters of credit expiration year | 2030 | ||
Manufacturing | |||
Commitments And Contingencies [Line Items] | |||
Purchase commitments for inventory and license | $ 292.2 | ||
Content Publishers | |||
Commitments And Contingencies [Line Items] | |||
Purchase commitments for inventory and license | 233.9 | ||
Content Publishers | Accrued Liabilities | |||
Commitments And Contingencies [Line Items] | |||
Purchase commitments for inventory and license | 43.9 | ||
Content Publishers | Other Long-Term Liabilities | |||
Commitments And Contingencies [Line Items] | |||
Purchase commitments for inventory and license | 40.5 | ||
Licensed Content | |||
Commitments And Contingencies [Line Items] | |||
Indemnification asset | 69.5 | $ 81.4 | |
Indemnification liability | $ 69.5 | $ 81.4 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Income tax benefit | $ 332 | $ 548 | $ 4,732 | $ 241 |
Net Income (Loss) Per Share - S
Net Income (Loss) Per Share - Summary of Calculation of Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net income (loss) | $ 68,935 | $ 12,947 | $ 218,698 | $ (84,813) |
Denominator: | ||||
Weighted-average common shares outstanding — basic | 133,685 | 125,687 | 132,036 | 122,837 |
Net income (loss) per share — basic | $ 0.52 | $ 0.10 | $ 1.66 | $ (0.69) |
Common stock equivalents | 8,601 | 10,982 | 9,557 | |
Weighted-average common shares outstanding — diluted | 142,286 | 136,669 | 141,593 | 122,837 |
Net income (loss) per share — diluted | $ 0.48 | $ 0.09 | $ 1.54 | $ (0.69) |
Net Income (Loss) Per Share -_2
Net Income (Loss) Per Share - Schedule of Antidilutive Securities Excluded from Calculation of Diluted Net Income or Net Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted net loss per share | 465 | 688 | 465 | 14,231 |
Restricted Stock Units and Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted net loss per share | 465 | 688 | 465 | 14,229 |
Unvested Shares of Common Stock Issued Upon Early Exercise of Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted net loss per share | 2 |
Segment Information - Additiona
Segment Information - Additional Information (Details) - segment | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | 2 | |
Net Revenue | International Market | Geographic Concentration Risk | 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 | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Customer H | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 11.00% | 10.00% | ||
Customer C | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 11.00% | 12.00% | ||
Platform | Customer H | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 10.00% | 16.00% | 11.00% | 15.00% |
Player | Customer A | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 11.00% | 11.00% | 10.00% | 11.00% |
Player | Customer B | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 21.00% | 16.00% | 21.00% | 16.00% |
Player | Customer C | ||||
Entity Wide Revenue Major Customer [Line Items] | ||||
Concentration risk | 33.00% | 39.00% | 36.00% | 41.00% |