Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 28, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-39051 | |
Entity Registrant Name | Datadog, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 27-2825503 | |
Entity Address, Address Line One | 620 8th Avenue, | |
Entity Address, Address Line Two | 45th Floor | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10018 | |
City Area Code | 866 | |
Local Phone Number | 329-4466 | |
Title of 12(b) Security | Class A common stock, par value $0.00001 per share | |
Trading Symbol | DDOG | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001561550 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 233,936,813 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 74,446,636 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 369,706 | $ 224,927 |
Marketable securities | 1,178,190 | 1,292,532 |
Accounts receivable, net of allowance for credit losses of $2,317 and $2,468 as of March 31, 2021 and December 31, 2020, respectively | 154,111 | 163,359 |
Deferred contract costs, current | 15,446 | 13,638 |
Prepaid expenses and other current assets | 29,404 | 23,624 |
Total current assets | 1,746,857 | 1,718,080 |
Property and equipment, net | 52,805 | 47,197 |
Operating lease assets | 53,117 | 57,829 |
Goodwill | 48,479 | 17,609 |
Intangible assets, net | 3,414 | 2,069 |
Deferred contract costs, non-current | 27,874 | 26,750 |
Restricted cash | 3,613 | 3,784 |
Other assets | 15,915 | 16,967 |
TOTAL ASSETS | 1,952,074 | 1,890,285 |
CURRENT LIABILITIES: | ||
Accounts payable | 12,065 | 21,342 |
Accrued expenses and other current liabilities | 68,476 | 55,351 |
Operating lease liabilities, current | 16,626 | 16,326 |
Deferred revenue, current | 223,647 | 204,825 |
Total current liabilities | 320,814 | 297,844 |
Operating lease liabilities, non-current | 46,620 | 51,433 |
Convertible senior notes, net | 732,968 | 575,864 |
Deferred revenue, non-current | 5,628 | 3,450 |
Other liabilities | 4,714 | 4,262 |
Total liabilities | 1,110,744 | 932,853 |
COMMITMENTS AND CONTINGENCIES (NOTE 8) | ||
STOCKHOLDERS' EQUITY: | ||
Additional paid-in capital | 985,004 | 1,103,305 |
Accumulated other comprehensive income | 752 | 2,287 |
Accumulated deficit | (144,429) | (148,163) |
Total stockholders’ equity | 841,330 | 957,432 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,952,074 | 1,890,285 |
Class A Common Stock | ||
STOCKHOLDERS' EQUITY: | ||
Common stock, value | 2 | 2 |
Class B Common Stock | ||
STOCKHOLDERS' EQUITY: | ||
Common stock, value | $ 1 | $ 1 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts receivable, net of allowance for doubtful accounts | $ 2,317 | $ 2,468 |
Class A Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized (in shares) | 2,000,000,000 | 2,000,000,000 |
Common stock, issued (in shares) | 232,419,196 | 218,510,509 |
Common stock, outstanding (in shares) | 232,419,196 | 218,510,509 |
Class B Common Stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized (in shares) | 310,000,000 | 310,000,000 |
Common stock, issued (in shares) | 75,385,154 | 87,369,554 |
Common stock, outstanding (in shares) | 75,385,154 | 87,369,554 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 198,549 | $ 131,248 |
Cost of revenue | 46,666 | 26,479 |
Gross profit | 151,883 | 104,769 |
Operating expenses: | ||
Research and development | 79,266 | 40,824 |
Sales and marketing | 64,353 | 45,215 |
General and administrative | 21,094 | 14,952 |
Total operating expenses | 164,713 | 100,991 |
Operating (loss) income | (12,830) | 3,778 |
Other income: | ||
Interest expense | (5,472) | (707) |
Interest income and other income, net | 5,773 | 3,603 |
Other income, net | 301 | 2,896 |
(Loss) income before provision for income taxes | (12,529) | 6,674 |
Provision for income taxes | (539) | (195) |
Net (loss) income | (13,068) | 6,479 |
Net (loss) income attributable to common stockholders | $ (13,068) | $ 6,479 |
Basic net (loss) income per share (in dollars per share) | $ (0.04) | $ 0.02 |
Diluted net (loss) income per share (in dollars per share) | $ (0.04) | $ 0.02 |
Weighted average shares used in calculating basic net income (loss) per share (in shares) | 306,034 | 295,455 |
Weighted average shares used in calculating diluted net income (loss) per share (in shares) | 306,034 | 327,801 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (13,068) | $ 6,479 |
Other comprehensive loss: | ||
Foreign currency translation adjustments | (853) | (287) |
Unrealized loss on available-for-sale marketable securities | (682) | (908) |
Other comprehensive loss: | (1,535) | (1,195) |
Comprehensive (loss) income | $ (14,603) | $ 5,284 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Cumulative Effect, Period of Adoption, Adjusted Balance | Common Stock | Common StockCumulative Effect, Period of Adoption, Adjusted Balance | Additional Paid-in Capital | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjustment | Additional Paid-in CapitalCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Other Comprehensive (Loss) Income | Accumulated Other Comprehensive (Loss) IncomeCumulative Effect, Period of Adoption, Adjusted Balance | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated DeficitCumulative Effect, Period of Adoption, Adjusted Balance |
Beginning balance, shares at Dec. 31, 2019 | 296,386,950 | ||||||||||||
Beginning balance at Dec. 31, 2019 | $ 782,341 | $ 3 | $ 905,821 | $ 133 | $ (123,616) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of common stock upon exercise of stock options (in shares) | 2,347,770 | ||||||||||||
Issuance of common stock upon exercise of stock options | 2,813 | 2,813 | |||||||||||
Vesting of early exercised stock options | 294 | 294 | |||||||||||
Stock-based compensation | 12,163 | 12,163 | |||||||||||
Change in accumulated other comprehensive income (loss) | (1,195) | (1,195) | |||||||||||
Net (loss) income | 6,479 | 6,479 | |||||||||||
Ending balance, shares at Mar. 31, 2020 | 298,734,720 | ||||||||||||
Ending balance at Mar. 31, 2020 | 802,895 | $ 3 | 921,091 | (1,062) | (117,137) | ||||||||
Beginning balance, shares at Dec. 31, 2019 | 296,386,950 | ||||||||||||
Beginning balance at Dec. 31, 2019 | $ 782,341 | $ 3 | 905,821 | 133 | (123,616) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2020-06 | ||||||||||||
Ending balance, shares at Dec. 31, 2020 | 305,880,063 | 305,880,063 | |||||||||||
Ending balance at Dec. 31, 2020 | $ 957,432 | $ (156,268) | $ 801,164 | $ 3 | $ 3 | 1,103,305 | $ (173,070) | $ 930,235 | 2,287 | $ 2,287 | (148,163) | $ 16,802 | $ (131,361) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Issuance of common stock upon exercise of stock options (in shares) | 1,320,113 | 1,320,113 | |||||||||||
Issuance of common stock upon exercise of stock options | $ 3,290 | 3,290 | |||||||||||
Vesting of early exercised stock options | 293 | 293 | |||||||||||
Vesting of restricted stock units, shares | 348,352 | ||||||||||||
Issuance of restricted shares of common stock from acquisition (in shares) | 255,822 | ||||||||||||
Issuance of restricted shares of common stock from acquisition | 20,172 | 20,172 | |||||||||||
Stock-based compensation | 31,014 | 31,014 | |||||||||||
Change in accumulated other comprehensive income (loss) | (1,535) | (1,535) | |||||||||||
Net (loss) income | (13,068) | (13,068) | |||||||||||
Ending balance, shares at Mar. 31, 2021 | 307,804,350 | ||||||||||||
Ending balance at Mar. 31, 2021 | $ 841,330 | $ 3 | $ 985,004 | $ 752 | $ (144,429) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (13,068) | $ 6,479 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation and amortization | 4,402 | 3,688 |
Amortization of discounts or premiums on marketable securities | 4,259 | 244 |
Amortization of issuance costs | 835 | 0 |
Amortization of deferred contract costs | 3,779 | 2,185 |
Stock-based compensation, net of amounts capitalized | 28,861 | 12,060 |
Non-cash lease expense | 4,012 | 3,226 |
Allowance for credit losses on accounts receivable | 25 | 1,073 |
Loss on disposal of property and equipment | 3 | 2 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 9,223 | (7,116) |
Deferred contract costs | (6,711) | (4,619) |
Prepaid expenses and other current assets | (5,998) | (1,404) |
Other assets | 572 | 919 |
Accounts payable | (9,226) | (1,391) |
Accrued expenses and other liabilities | 9,682 | 2,025 |
Deferred revenue | 21,000 | 6,884 |
Net cash provided by operating activities | 51,650 | 24,255 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of marketable securities | (150,331) | (427,482) |
Maturities of marketable securities | 253,234 | 2,620 |
Proceeds from sale of marketable securities | 6,497 | 0 |
Purchases of property and equipment | (998) | (1,526) |
Capitalized software development costs | (6,183) | (3,417) |
Cash paid for acquisition of businesses; net of cash acquired | (11,509) | 0 |
Net cash provided by (used in) investing activities | 90,710 | (429,805) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 3,275 | 2,813 |
Proceeds from initial public offering, net of underwriting discounts and commissions and other offering cost | 0 | (153) |
Employee payroll taxes paid related to net share settlement under the employee stock purchase plan | (245) | 0 |
Net cash provided by financing activities | 3,030 | 2,660 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (782) | (141) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 144,608 | (403,031) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period | 228,711 | 601,189 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—End of period | 373,319 | 198,158 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes | 327 | 34 |
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: | ||
Accrued property and equipment purchases | 213 | 610 |
Stock-based compensation included in capitalized software development costs | 2,153 | 103 |
Vesting of early exercised options | 293 | 294 |
Costs related to initial public offering included in accounts payable and accrued liabilities | 0 | 268 |
Issuance of restricted shares of common stock for the acquisition of businesses | 20,172 | 0 |
Acquisition holdback | 1,195 | 0 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH WITHIN THE CONDENSED CONSOLIDATED BALANCE SHEETS TO THE AMOUNTS SHOWN IN THE STATEMENTS OF CASH FLOWS ABOVE: | ||
Total cash, cash equivalents and restricted cash | $ 373,319 | $ 198,158 |
Organization and Description of
Organization and Description of Business | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Description of Business Datadog, Inc. (“Datadog” or the “Company”) was incorporated in the State of Delaware on June 4, 2010. The Company is the monitoring and analytics platform for developers, IT operations teams and business users in the cloud age. The Company’s SaaS platform integrates and automates infrastructure monitoring, application performance monitoring, log management, and security monitoring to provide unified, real-time observability of its customers’ entire technology stack. The Company is headquartered in New York City and has various other global office locations. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Unaudited Interim Condensed Consolidated Financial Information The unaudited condensed consolidated financial statements include the accounts of Datadog, Inc. and its wholly-owned subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and following the requirements of the Securities and Exchange Commission (“SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as the Company’s annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of the Company’s financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending December 31, 2021 or for any other interim period or for any other future year. The accompanying unaudited condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020, as filed with the SEC on March 1, 2021 (the “Annual Report”). Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP. Principles of Consolidation The condensed consolidated financial statements include the accounts of Datadog, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Such estimates include the fair value of marketable securities, the allowance for credit losses, the fair value of acquired assets and assumed liabilities from business combinations, useful lives of property, equipment, software, and finite lived intangibles, stock-based compensation, valuation of long-lived assets and their recoverability, including goodwill, the incremental borrowing rate for operating leases, estimated expected period of benefit for deferred contract costs, fair value of the liability component of the convertible debt, realization of deferred tax assets and uncertain tax positions, revenue recognition and the allocation of overhead costs between cost of revenue and operating expenses. The Company bases its estimates on historical experience and also on assumptions that management considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could materially differ from these estimates. Accounting Pronouncements Recently Adopted In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU No. 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity. Among other changes, ASU No. 2020-06 removes from GAAP the liability and equity separation model for convertible instruments with a |
Marketable Securities
Marketable Securities | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | Marketable Securities The following is a summary of available-for-sale marketable securities, excluding those securities classified within cash and cash equivalents on the condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 Amortized Unrealized Unrealized Fair Commercial debt securities $ 855,305 $ 644 $ (260) $ 855,689 Certificates of deposit 47,652 43 — 47,695 U.S. government treasury securities 83,839 117 — 83,956 Commercial paper 190,797 55 (2) 190,850 Marketable securities $ 1,177,593 $ 859 $ (262) $ 1,178,190 December 31, 2020 Amortized Unrealized Unrealized Fair Commercial debt securities $ 926,836 $ 1,157 $ (143) $ 927,850 Certificates of deposit 47,214 43 (1) 47,256 U.S. government treasury securities 108,092 203 (1) 108,294 Commercial paper 209,111 32 (11) 209,132 Marketable securities $ 1,291,253 $ 1,435 $ (156) $ 1,292,532 As of March 31, 2021, the fair values of available-for-sale marketable securities, by remaining contractual maturity, were as follows (in thousands): Due within one year $ 909,906 Due in one year through five years 268,284 Total $ 1,178,190 The Company does not believe that any unrealized losses are attributable to credit-related factors based on its evaluation of available evidence. To determine whether a decline in value is related to credit loss, the Company evaluates, among other factors: the extent to which the fair value is less than the amortized cost basis, changes to the rating of the security by a rating agency and any adverse conditions specifically related to an issuer of a security or its industry. Unrealized gain and losses on marketable securities are presented net of tax. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present information about the Company’s financial assets and liabilities that have been measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Fair Value Measurement as of March 31, 2021 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 358,369 $ — $ — $ 358,369 Corporate debt securities — 3,785 — 3,785 Marketable Securities: Corporate debt securities — 855,689 — 855,689 Certificates of deposit — 47,695 — 47,695 U.S. government treasury securities — 83,956 — 83,956 Commercial paper — 190,850 — 190,850 Total financial assets $ 358,369 $ 1,181,975 $ — $ 1,540,344 Fair Value Measurement as of December 31, 2020 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 181,743 $ — $ — $ 181,743 Commercial paper — 25,195 — 25,195 Marketable Securities: Corporate debt securities — 927,850 — 927,850 Certificates of deposit — 47,256 — 47,256 U.S. government treasury securities — 108,294 — 108,294 Commercial paper — 209,132 — 209,132 Total financial assets $ 181,743 $ 1,317,727 $ — $ 1,499,470 The Company classifies its highly liquid money market funds within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company classifies its commercial paper, corporate debt securities, certificates of deposit, and U.S. government treasury securities within Level 2 because they are valued using inputs other than quoted prices that are directly or indirectly observable in the market, including readily available pricing sources for the identical underlying security which may not be actively traded. In addition to its cash equivalents and marketable securities, the Company measures the fair value of its outstanding convertible senior notes on a quarterly basis for disclosure purposes. The Company considers the fair value of the convertible senior notes to be a Level 2 measurement due to limited trading activity of the convertible senior notes. Refer to Note 7, Convertible Senior Notes , to the condensed consolidated financial statements for further details. |
Property and Equipment, Net
Property and Equipment, Net | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consisted of the following (in thousands): March 31, December 31, Computers and equipment $ 12,307 $ 11,490 Furniture and fixtures 4,985 5,087 Leasehold improvements 17,420 17,639 Capitalized software development costs 57,649 48,502 Total property and equipment $ 92,361 $ 82,718 Less: accumulated depreciation and amortization (39,556) (35,521) Total property and equipment, net $ 52,805 $ 47,197 The Company capitalizes costs related to the development of computer software for internal use and is included in capitalized software development costs within property and equipment, net. |
Acquisition, Intangible Assets
Acquisition, Intangible Assets and Goodwill | 3 Months Ended |
Mar. 31, 2021 | |
Acquisition, Intangible Assets And Goodwill [Abstract] | |
Acquisition, Intangible Assets and Goodwill | Acquisition, Intangible Assets and Goodwill 2021 Acquisition During the three months ended March 31, 2021, the Company entered into a Stock Purchase Agreement whereby the Company acquired all of the issued and outstanding shares of a target company with the purchase price in cash and stock. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations . The purchase price was allocated to intangible assets in the amount of $1.7 million and goodwill in the amount of $31.3 million based on the respective estimated fair values. Goodwill resulted primarily from the expectation of enhancing the Company's current observability tools. The resulting goodwill is not deductible for income tax purposes. Pro forma results of operations for this acquisition have not been presented because they were not material to the condensed consolidated results of operations. 2020 Acquisition During the year ended December 31, 2020, the Company completed an acquisition with the purchase price in cash and stock. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations . The purchase price was allocated to intangible assets in the amount of $1.5 million and goodwill in the amount of $7.8 million based on the respective estimated fair values. The resulting goodwill is not deductible for income tax purposes. Intangible Assets Intangible assets, net consisted of the following (in thousands): March 31, 2021 Gross Accumulated Net Amortization Developed technology $ 5,031 $ (1,617) $ 3,414 3 years December 31, 2020 Gross Accumulated Net Amortization Developed technology $ 3,331 $ (1,262) $ 2,069 3 years Intangible amortization expense was approximately $0.4 million and $0.2 million for the three months ended March 31, 2021 and 2020, respectively. Amortization of developed technology is included in cost of revenue on the Company’s condensed consolidated statement of operations. As of March 31, 2021, future amortization expense by year is expected to be as follows (in thousands): Amount Remainder of 2021 $ 1,188 2022 1,341 2023 819 2024 66 Total $ 3,414 Goodwill The changes in the carrying amount of goodwill were as follows (in thousands): Amount Balance as of December 31, 2020 $ 17,609 Foreign currency translation adjustments (384) 2021 acquisition 31,254 Balance as of March 31, 2021 $ 48,479 |
Acquisition, Intangible Assets and Goodwill | Acquisition, Intangible Assets and Goodwill 2021 Acquisition During the three months ended March 31, 2021, the Company entered into a Stock Purchase Agreement whereby the Company acquired all of the issued and outstanding shares of a target company with the purchase price in cash and stock. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations . The purchase price was allocated to intangible assets in the amount of $1.7 million and goodwill in the amount of $31.3 million based on the respective estimated fair values. Goodwill resulted primarily from the expectation of enhancing the Company's current observability tools. The resulting goodwill is not deductible for income tax purposes. Pro forma results of operations for this acquisition have not been presented because they were not material to the condensed consolidated results of operations. 2020 Acquisition During the year ended December 31, 2020, the Company completed an acquisition with the purchase price in cash and stock. The acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations . The purchase price was allocated to intangible assets in the amount of $1.5 million and goodwill in the amount of $7.8 million based on the respective estimated fair values. The resulting goodwill is not deductible for income tax purposes. Intangible Assets Intangible assets, net consisted of the following (in thousands): March 31, 2021 Gross Accumulated Net Amortization Developed technology $ 5,031 $ (1,617) $ 3,414 3 years December 31, 2020 Gross Accumulated Net Amortization Developed technology $ 3,331 $ (1,262) $ 2,069 3 years Intangible amortization expense was approximately $0.4 million and $0.2 million for the three months ended March 31, 2021 and 2020, respectively. Amortization of developed technology is included in cost of revenue on the Company’s condensed consolidated statement of operations. As of March 31, 2021, future amortization expense by year is expected to be as follows (in thousands): Amount Remainder of 2021 $ 1,188 2022 1,341 2023 819 2024 66 Total $ 3,414 Goodwill The changes in the carrying amount of goodwill were as follows (in thousands): Amount Balance as of December 31, 2020 $ 17,609 Foreign currency translation adjustments (384) 2021 acquisition 31,254 Balance as of March 31, 2021 $ 48,479 |
Convertible Senior Notes
Convertible Senior Notes | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes On June 2, 2020, the Company issued $747.5 million aggregate principal amount of 0.125% convertible senior notes due 2025 (the “2025 Notes”) in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (“Securities Act”). The total net proceeds from the sale of the 2025 Notes, after deducting the initial purchasers’ discounts and debt issuance costs, were approximately $730.2 million. The 2025 Notes bear interest at a rate of 0.125% per year, payable semiannually in arrears on June 15 and December 15 of each year, beginning on December 15, 2020. The 2025 Notes will mature on June 15, 2025, unless earlier converted, redeemed or repurchased. Holders may convert their notes at their option at any time prior to the close of business on the business day immediately preceding March 15, 2025 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2020 (and only during such calendar quarter), if the last reported sale price of the Company’s Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period (the "Measurement Period") in which the trading price per $1,000 principal amount of 2025 Notes for each trading day of the Measurement Period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate on each such trading day; (3) if the Company calls such 2025 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events, as set forth in the indenture governing the 2025 Notes (“the Indenture”). On or after March 15, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their notes, in integral multiples of $1,000 principal amount, at the option of the holder regardless of the foregoing circumstances. The conversion rate for the 2025 Notes is initially 10.8338 shares of Class A common stock per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $92.30 per share of Class A common stock), subject to adjustment as set forth in the Indenture. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of Class A common stock or a combination of cash and shares of Class A common stock, at the Company’s election. If the Company satisfies its conversion obligation solely in cash or through payment and delivery, as the case may be, of a combination of cash and shares of Class A common stock, the amount of cash and shares of Class A common stock, if any, due upon conversion will be based on a daily conversion value calculated on a proportionate basis for each trading day in a 30 trading day observation period as described in the Indenture. In addition, if specific corporate events occur prior to the applicable maturity date, or if the Company elects to redeem the 2025 Notes, the Company will increase the conversion rate for a holder who elects to convert their notes in connection with such a corporate event or redemption in certain circumstances. During the three months ended March 31, 2021, the conditions allowing holders of the 2025 Notes to convert have not been met. The 2025 Notes were therefore not convertible during the three months ended March 31, 2021 and were classified as long-term debt on the Company’s condensed consolidated balance sheets. The Company may not redeem the 2025 Notes prior to June 20, 2023. On or after June 20, 2023, and prior to the 31st scheduled trading day immediately preceding the maturity date, the Company may redeem for cash all or any portion of the 2025 Notes, at its option, if the last reported sale price of its Class A common stock was at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides a notice of redemption at a redemption price equal to 100% of the principal amount of the 2025 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. In accounting for the issuance of the 2025 Notes, the 2025 Notes were separated into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of similar liabilities that do not have associated convertible features. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the respective 2025 Notes. This difference represents the debt discount that was amortized to interest expense using the effective interest rate method. The carrying amount of the equity component representing the conversion option was $177.2 million. The equity component was recorded in additional paid-in capital. In accounting for the debt issuance costs of $17.3 million related to the 2025 Notes, the Company allocated the total amount incurred to the liability and equity components of the 2025 Notes in the same proportion as the allocation of the proceeds. Issuance costs attributable to the liability component were $13.2 million and will be amortized to interest expense over the contractual term of the 2025 Notes at an effective interest rate of 5.97%. Issuance costs attributable to the equity component were $4.1 million and are netted against the equity component in additional paid-in capital. On January 1, 2021 the Company adopted ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. As a result of the adoption, the debt conversion option of $177.2 million and debt issuance costs of $4.1 million previously attributable to the equity component will no longer be presented in equity. Similarly, the debt discount, that is equal to the carrying value of the embedded conversion feature upon issuance, will no longer be amortized into income as interest expense over the life of the instrument. This resulted in a $16.8 million decrease to the opening balance of accumulated deficit, a $173.1 million decrease to the opening balance of additional paid-in capital, and a $156.3 million increase to the opening balance of Convertible senior notes, net on the consolidated balance sheet. The net carrying amount of the liability component of the 2025 Notes was as follows (in thousands): March 31, Principal $ 747,500 Unamortized debt issuance costs (14,532) Net carrying amount $ 732,968 As of March 31, 2021, the total estimated fair value of the 2025 Notes was approximately $881.0 million. The fair value was determined based on the closing trading price per $100 of the 2025 Notes as of the last day of trading for the period. The fair value of the 2025 Notes is primarily affected by the trading price of the Company’s Class A common stock and market interest rates. The following table sets forth the interest expense related to the 2025 Notes for the three months ended March 31, 2021 (in thousands): Three Months Ended March 31, 2021 Contractual interest expense $ 234 Amortization of issuance costs 835 Total $ 1,069 Capped Calls In connection with the pricing of the 2025 Notes, the Company entered into privately negotiated capped call transactions with certain counterparties (“Capped Calls”). The Capped Calls each have an initial strike price of approximately $92.30 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2025 Notes. The Capped Calls have initial cap prices of $151.04 per share, subject to certain adjustments. The Capped Calls are expected to partially offset the potential dilution to the Company’s Class A common stock upon any conversion of the 2025 Notes, with such offset subject to a cap based on the cap price. The Capped Calls cover, subject to anti-dilution adjustments, approximately 8.1 million shares of the Company’s Class A common stock. For accounting purposes, the Capped Calls are separate transactions, and not part of the 2025 Notes. As these transactions meet certain accounting criteria, the Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives. The cost of $89.6 million incurred to purchase the Capped Calls was recorded as a reduction to additional paid-in capital and will not be remeasured. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Non-cancelable Material Commitments —During the three months ended March 31, 2021, other than certain non-cancelable operating lease described in Note 9, Leases , there have been no material changes outside the ordinary course of business to the Company's contractual obligations and commitments from those disclosed in the Annual Report. 401(k) Plan —The Company sponsors a 401(k) defined contribution plan covering all eligible US employees. Contributions to the 401(k) plan are discretionary. The Company did not make any matching contributions to the 401(k) plan for the three months ended March 31, 2021 and 2020. Legal Matters —The Company is involved from time to time in various claims and legal actions arising in the ordinary course of business. While it is not feasible to predict or determine the ultimate outcome of these matters, the Company believes that none of its current legal proceedings will have a material adverse effect on its financial position or results of operations. Indemnification —The Company enters into indemnification provisions under some agreements with other parties in the ordinary course of business, including business partners, investors, contractors, customers, and the Company’s officers, directors and certain employees. The Company has agreed to indemnify and defend the indemnified party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party claim because of the Company’s activities or non-compliance with certain representations and warranties made by the Company. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. To date, losses recorded in the Company’s condensed consolidated statements of operations in connection with the indemnification provisions have not been material. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company has entered into various non-cancelable operating leases for its facilities expiring between 2021 and 2031. Certain lease agreements contain an option for the Company to renew a lease for a term of up to five years or an option to terminate a lease early within three years. The Company considers these options, which may be elected at the Company’s sole discretion, in determining the lease term on a lease-by-lease basis. Lease expense for these leases is recognized on a straight-line basis over the lease term, with variable lease payments recognized in the period those payments are incurred. The components of lease cost recognized within the Company’s condensed consolidated statements of operations were as follows (in thousands): Three Months Ended 2021 2020 Operating lease cost (1) $ 4,755 $ 3,960 Short-term lease cost 792 899 1) Includes non-cash lease expense of $4.0 million and $3.2 million for the three months ended March 31, 2021 and 2020, respectively. Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows (in thousands): Three Months Ended 2021 2020 Cash paid for amounts included in measurement of lease liabilities $ 4,483 $ 3,134 Operating lease assets obtained in exchange for new lease liabilities — 1,862 Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows (in thousands): Amount Remainder of 2021 $ 14,349 2022 20,023 2023 17,898 2024 2,572 2025 2,766 2026 and beyond 12,746 Total lease payments $ 70,354 Less: imputed interest (7,108) Present value of lease liabilities $ 63,246 As of March 31, 2021, the Company had one additional operating lease that had not yet commenced, which is excluded from the table above. The operating lease will commence in fiscal year 2021 and has $19.0 million of undiscounted future payments with a lease term of 7.8 years. The Company also signed an operating lease in April 2021 that will commence in fiscal year 2021 and has $4.2 million of undiscounted future payments with a lease term of 8.3 years. Weighted average remaining lease term and discount rate for the Company’s operating leases are as follows: March 31, Weighted-average remaining lease term (years) 4.3 Weighted-average discount rate 4.71 % |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Geographical Information Revenue by location is determined by the billing address of the customer. The following table sets forth revenue by geographic area (in thousands): Three Months Ended 2021 2020 North America $ 142,890 $ 99,382 International 55,659 31,866 Total $ 198,549 $ 131,248 Deferred Revenue and Remaining Performance Obligations Certain of the Company’s customers pay in advance of satisfaction of performance obligations and other customers with monthly contract terms are billed in arrears on a monthly basis. The Company records contract liabilities to deferred revenue when customers are billed or when the Company receives customer payments in advance of the performance obligations being satisfied on the Company’s contracts. Revenue recognized during the three months ended March 31, 2021 and 2020, which was included in the deferred revenue balances at the beginning of each such period, was $96.4 million and $68.1 million, respectively. Remaining performance obligations represent the aggregate amount of the transaction price in contracts allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations include unearned revenue, multi-year contracts with future installment payments and certain unfulfilled orders against accepted customer contracts at the end of any given period. As of March 31, 2021 and December 31, 2020, the aggregate transaction price allocated to remaining performance obligations was $464.3 million and $434.1 million, respectively. There is uncertainty in the timing of revenues associated with the Company’s drawdown contracts, as future revenue can often vary significantly from past revenue. However, the Company expects to recognize substantially all of the remaining performance obligations over the next 24 months. Accounts Receivable Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. During the three months ended March 31, 2021 and 2020, the Company charged $0.2 million and $0.2 million, respectively, of accounts receivable deemed uncollectible against the allowance for credit losses. Unbilled accounts receivable represents revenue recognized on contracts for which billings have not yet been presented to customers because the amounts were earned but not contractually billable as of the balance sheet date. The unbilled accounts receivable balance is due within one year. As of March 31, 2021 and December 31, 2020, unbilled accounts receivable of approximately $25.6 million and $20.1 million, respectively, was included in accounts receivable on the Company’s condensed consolidated balance sheets. Deferred Contract Costs Sales commissions earned by the Company’s sales force are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit which is determined to be four years. Amounts expected to be recognized within one year of the balance sheet date are recorded as deferred contract costs, current; the remaining portion is recorded as deferred contract costs, non-current, in the condensed consolidated balance sheets. Deferred contract costs on the Company’s condensed consolidated balance sheets were $43.3 million and $40.4 million as of March 31, 2021 and December 31, 2020, respectively. Amortization expense was $3.8 million and $2.2 million for the three months ended March 31, 2021 and 2020, respectively. The following table represents a rollforward of the Company’s deferred contract costs (in thousands): Amount Balance as of December 31, 2020 $ 40,388 Additions to deferred contract costs 6,711 Amortization of deferred contract costs (3,779) Balance as of March 31, 2021 $ 43,320 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Class A and Class B Common Stock The Company has two classes of common stock, Class A and Class B. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Shares of Class B common stock may be converted into Class A common stock at any time at the option of the stockholder, and are automatically converted upon the sale or transfer to Class A common stock, subject to certain limited exceptions. During the three months ended March 31, 2021, 13,014,453 shares of Class B common stock were converted into Class A common stock. As of March 31, 2021, the Company had authorized 2,000,000,000 shares of Class A common stock and 310,000,000 shares of Class B common stock, each at a par value per share of $0.00001, of which 232,419,196 shares of Class A common stock and 75,385,154 shares of Class B common stock were issued and outstanding. Equity Incentive Plans The Company has two equity incentive plans, the 2012 equity incentive plan (the “2012 Plan”) and the 2019 equity incentive plan (the “2019 Plan”). In connection with the IPO, the Company ceased granting awards under the 2012 Plan, and all shares that remained available for issuance under the 2012 Plan at that time were transferred to the 2019 Plan. Under the 2019 Plan, the Board and any other committee or subcommittee of the Board may grant stock options, stock appreciation rights (“SARs”), restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and performance-based and other awards, each valued or based on the Company’s Class A common stock, to employees, consultants, and advisors of the Company. As of March 31, 2021, there were 57,863,748 shares available for grant under the 2019 Plan. Stock Options The following table summarizes the Company’s stock option activity and weighted-average exercise prices: Number Of Weighted- Weighted- Aggregate Balance outstanding—December 31, 2020 27,068,323 $ 3.31 6.7 $ 2,575,069 Options granted — — Options exercised (1,320,113) 2.49 Options forfeited or expired (96,151) 4.86 Balance outstanding—March 31, 2021 25,652,059 $ 3.34 6.4 $ 2,052,059 Exercisable—March 31, 2021 16,917,990 1.58 5.7 As of March 31, 2021, there were 34,351 shares of Class A common stock and 25,617,708 shares of Class B common stock issuable upon the exercise of options outstanding. As of December 31, 2020, there were 34,759 shares of Class A common stock and 27,033,564 shares of Class B common stock issuable upon the exercise of options outstanding. Total compensation cost related to unvested awards not yet recognized was approximately $53.5 million and $60.6 million as of March 31, 2021 and December 31, 2020, respectively. The weighted-average period over which this compensation cost related to unvested employee awards will be recognized is 1.9 years and 2.0 years as of March 31, 2021 and December 31, 2020, respectively. There were no options granted during the three months ended March 31, 2021. The weighted-average grant-date fair value of options granted during the three months ended March 31, 2020 was $16.55. The Company received approximately $3.3 million and $2.8 million in cash proceeds from options exercised during the three months ended March 31, 2021 and 2020, respectively. The intrinsic value of options exercised during the three months ended March 31, 2021 and 2020 was approximately $123.6 million and $86.5 million, respectively. The aggregate fair value of options vested during the three months ended March 31, 2021 and 2020 was $7.4 million and $3.8 million, respectively. Common stock purchased pursuant to an early exercise of stock options is not deemed to be outstanding for accounting purposes until those shares vest. The consideration received for an exercise of an option is considered to be a deposit of the exercise price and the related dollar amount is recorded as a liability. The shares issued upon the early exercise of these unvested stock option awards, which are reflected as exercises in the table above, are considered to be legally issued and outstanding on the date of exercise. Upon termination of service, the Company may repurchase unvested shares acquired through early exercise of stock options at a price equal to the price per share paid upon the exercise of such options. The Company has recorded liabilities related to early exercises of 238,500 shares of common stock and 438,750 shares of common stock as of March 31, 2021 and December 31, 2020, respectively. Restricted Stock Units The following table summarizes the activity for the Company’s unvested RSUs: Shares Weighted- Balance—December 31, 2020 5,166,720 $ 59.50 Awarded 387,107 92.15 Vested (348,352) 40.82 Forfeited/canceled (63,269) 50.91 Unvested and outstanding—March 31, 2021 5,142,206 $ 63.33 The Company granted 244,445, 96,210 and 117,538 restricted shares of Class A common stock in November 2019, June 2020 and February 2021, respectively, which are subject to service-based vesting conditions over approximately four years. Total compensation cost related to unvested RSUs and restricted shares of common stock not yet recognized was approximately $298.1 million and $281.5 million as of March 31, 2021 and December 31, 2020, respectively. The weighted-average period over which this compensation cost related to unvested RSUs and restricted shares will be recognized is 3.2 years and 3.4 years as of March 31, 2021 and December 31, 2020, respectively. Employee Stock Purchase Plan In September 2019, the Board adopted and approved the 2019 Employee Stock Purchase Plan (the “ESPP”), which became effective on the date of the final prospectus for the Company’s IPO (the “Final Prospectus”). As of March 31, 2021, 12,281,683 shares of Class A common stock remain available for grant under the ESPP. The ESPP is implemented through a series of offerings under which eligible employees are granted purchase rights to purchase shares of the Company’s Class A common stock on specified dates during such offerings. Under the ESPP, the Company may specify offerings with durations of not more than 27 months, and may specify shorter purchase periods within each offering. On each purchase date, eligible employees will purchase the shares at a price per share equal to 85% of the lesser of (1) the fair market value of the Company’s Class A common stock on the first trading day of the offering period, or (2) the fair market value of the Company’s Class A common stock on the purchase date, as defined in the ESPP. The Company recognized $1.6 million of stock-based compensation expense related to the ESPP during the three months ended March 31, 2021. As of March 31, 2021, $7.8 million has been withheld on behalf of employees for a future purchase under the ESPP due to the timing of payroll deductions. There were no purchases related to the ESPP in the three months ended March 31, 2021 and 2020. Stock-Based Compensation The Company uses the Black-Scholes option-pricing model to estimate the fair value of stock options on the date of grant. The Company recognizes and measures compensation expense for all stock-based payment awards granted to employees, directors, and nonemployees based on the fair value of the awards on the date of grant. The determination of the grant date fair value using an option-pricing model is affected by the estimated fair value of the Company’s common stock as well as assumptions regarding a number of other complex and subjective variables. These variables include expected stock price volatility over the expected term of the award, actual and projected employee stock option exercise behaviors, the risk-free interest rate for the expected term of the award and expected dividends. The fair value of RSUs is determined by the closing price on the date of grant of the Company’s Class A common stock, as reported on the Nasdaq Global Select Market. The Company estimates the fair value of the rights to acquire stock under the ESPP using the Black-Scholes option-pricing model. Stock-based compensation is recognized on a straight-line basis over the requisite service period and account for forfeitures as they occur. Stock-based compensation expense was included in the condensed consolidated statement of operations as follows (in thousands): Three Months Ended 2021 2020 Cost of revenue $ 701 $ 231 Research and development 16,069 5,847 Sales and marketing 7,010 3,074 General and administrative 5,081 2,908 Stock-based compensation, net of amounts capitalized 28,861 12,060 Capitalized stock-based compensation expense 2,153 103 Total stock-based compensation expense $ 31,014 $ 12,163 |
Interest Income and Other Incom
Interest Income and Other Income, Net | 3 Months Ended |
Mar. 31, 2021 | |
Interest and Other Income [Abstract] | |
Interest Income and Other Income, Net | Interest Income and Other Income, Net Interest income and other income, net consist of the following (in thousands): Three Months Ended 2021 2020 Interest income $ 5,898 $ 3,778 Other expense, net (125) (175) Interest income and other income, net $ 5,773 $ 3,603 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company has an effective tax rate of (4.3)% and 2.9% for the three months ended March 31, 2021 and 2020, respectively. The Company has incurred U.S. operating losses and has minimal profits in its foreign jurisdictions. The Company has applied ASC 740, Income Taxes , and has determined that it has uncertain positions that would result in a tax reserve deemed immaterial for each of the three months ended March 31, 2021 and 2020. The Company’s policy is to recognize interest and penalties related to uncertain tax positions in income tax expense. The Company is subject to U.S. federal tax authority, U.S. state tax authority and foreign tax authority examinations. In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU No. 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity. The Company chose to early adopt ASU No. 2020-06 on January 1, 2021, using the modified retrospective basis. See Note 2, Basis of Presentation and Summary of Significant Accounting Policies—Accounting Policies Recently Adopted for more information. The early adoption resulted in no material tax impact. The Company has evaluated the available evidence supporting the realization of its deferred tax assets, including the amount and timing of future taxable income, and has determined that it is more likely than not that its net deferred tax assets will not be realized in the United States. Due to uncertainties surrounding the realization of the deferred tax assets, the Company recorded a full valuation allowance against substantially all of its net deferred tax assets. When the Company determines that it will be able to realize some portion or all of its deferred tax assets, an adjustment to its valuation allowance on its deferred tax assets would have the effect of increasing net income in the period such determination is made. On December 21, 2020, Congress passed the Consolidated Appropriations Act, 2021. The act includes the Taxpayer Certainty and Disaster Tax Relief Act of 2020 and the COVID-related Tax Relief Act of 2020, both of which extend many credits and other COVID-19 relief, among other extenders. The Company evaluated the provisions of the Consolidated Appropriations Act, including but not limited to the Employee Retention Credit extension, the extension for the IRC Section 45S credit for paid family and medical leave, and the provision allowing a full deduction for certain business meals, and determined that there was no material impact for the three months ended March 31, 2021. On March 11, 2021, the American Rescue Plan was enacted, which extends the period companies can claim an Employee Retention Credit, extends the IRC Section 162(m) limit on deductions for publicly traded companies, and repeals the election that allows US affiliate groups to allocate interest expense on a worldwide basis, among other provisions. The Company reviewed the provisions of the new law and determined it has no material impact for the three months ended March 31, 2021. |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share | Net (Loss) Income Per Share Basic and diluted net (loss) income per common share is presented in conformity with the two-class method required for participating securities. Immediately prior to the consummation of the Company’s IPO in September 2019, all outstanding shares of convertible preferred stock and common stock were converted into shares of Class B common stock. As a result, Class A and Class B common stock are the only outstanding equity in the Company. Basic and diluted net (loss) income per share is computed using the weighted-average number of shares of common stock outstanding during the period. The undistributed earnings are allocated based on the contractual participation rights of the Class A and Class B common stock as if the earnings for the year have been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Further, as the conversion of Class B common stock is assumed in the computation of the diluted net (loss) income per share of Class A common stock, the undistributed earnings are equal to net (loss) income for that computation. The following table presents the calculation of basic and diluted net (loss) income per share (in thousands, except per share data): Three Months Ended 2021 2020 Basic net (loss) income per share: Class A Class B Class A Class B Numerator: Net (loss) income $ (9,547) $ (3,521) $ 1,852 $ 4,627 Denominator: Weighted-average shares used in calculating net (loss) income per share, basic 223,566 82,468 84,434 211,021 Basic net (loss) income per share $ (0.04) $ (0.04) $ 0.02 $ 0.02 Diluted net (loss) income per share: Numerator: Allocation of distributed (loss) income for basic computation $ (9,547) $ (3,521) $ 1,852 $ 4,627 Reallocation of undistributed (loss) income as a result of conversion of Class B to Class A shares (3,521) — 4,627 — Allocation of undistributed (loss) income $ (13,068) $ (3,521) $ 6,479 $ 4,627 Denominator: Number of shares used in basic calculation 223,566 82,468 84,434 211,021 Weighted-average effect of diluted securities: Conversion of Class B to Class A common shares outstanding 82,468 — 211,021 — Employee stock options — — 30,708 — Employee stock purchase plan — — 129 — Unvested early exercises — — 1,139 — Restricted Stock Units — — 126 — Unvested restricted stock in connection with acquisition — — 244 — Number of shares used in diluted calculation 306,034 82,468 327,801 211,021 Diluted net (loss) income per share $ (0.04) $ (0.04) $ 0.02 $ 0.02 Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): As of March 31, 2021 2020 Shares subject to outstanding stock options and restricted stock units 30,794 4,352 Unvested early exercised stock options and restricted stock 620 — Shares subject to the employee stock purchase plan 138 217 Shares issuable upon conversion of the convertible senior notes 8,098 — Total 39,650 4,569 ASU No. 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share when the instruments may be settled in cash or shares. See Note 2, Basis of Presentation and Summary of Significant Accounting Policies—Accounting Policies Recently Adopted for more information. Although the Notes were not convertible as of March 31, 2021, the Company calculated the potentially dilutive effect of the share conversion which is included in the table above. The Company entered into Capped Calls in connection with the issuance of the 2025 Notes. The effect of the Capped Calls was also excluded from the calculation of diluted net income per share as the effect of the Capped Calls would have been anti-dilutive. The Capped Calls are expected to partially offset the potential dilution to the Company’s Class A common stock upon any conversion of the 2025 Notes. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsIn April 2021, the Company completed the acquisition of Sqreen, Inc, a SaaS based security platform, for approximately $260 million in cash and stock, subject to certain customary adjustments, of which approximately 25% is deferred. The Company is currently evaluating the purchase price allocation for this transaction. |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with GAAP. |
Principles of Consolidation | Principles of Consolidation The condensed consolidated financial statements include the accounts of Datadog, Inc. and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Such estimates include the fair value of marketable securities, the allowance for credit losses, the fair value of acquired assets and assumed liabilities from business combinations, useful lives of property, equipment, software, and finite lived intangibles, stock-based compensation, valuation of long-lived assets and their recoverability, including goodwill, the incremental borrowing rate for operating leases, estimated expected period of benefit for deferred contract costs, fair value of the liability component of the convertible debt, realization of deferred tax assets and uncertain tax positions, revenue recognition and the allocation of overhead costs between cost of revenue and operating expenses. The Company bases its estimates on historical experience and also on assumptions that management considers reasonable. The Company assesses these estimates on a regular basis; however, actual results could materially differ from these estimates. |
Accounting Pronouncements Recently Adopted | Accounting Pronouncements Recently Adopted In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU No. 2020-06”), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity. Among other changes, ASU No. 2020-06 removes from GAAP the liability and equity separation model for convertible instruments with a |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Available-for-Sale Marketable Securities | The following is a summary of available-for-sale marketable securities, excluding those securities classified within cash and cash equivalents on the condensed consolidated balance sheets as of March 31, 2021 and December 31, 2020 (in thousands): March 31, 2021 Amortized Unrealized Unrealized Fair Commercial debt securities $ 855,305 $ 644 $ (260) $ 855,689 Certificates of deposit 47,652 43 — 47,695 U.S. government treasury securities 83,839 117 — 83,956 Commercial paper 190,797 55 (2) 190,850 Marketable securities $ 1,177,593 $ 859 $ (262) $ 1,178,190 December 31, 2020 Amortized Unrealized Unrealized Fair Commercial debt securities $ 926,836 $ 1,157 $ (143) $ 927,850 Certificates of deposit 47,214 43 (1) 47,256 U.S. government treasury securities 108,092 203 (1) 108,294 Commercial paper 209,111 32 (11) 209,132 Marketable securities $ 1,291,253 $ 1,435 $ (156) $ 1,292,532 |
Summary of Fair Values of Available-for-Sale Marketable Securities, by Remaining Contractual Maturity | As of March 31, 2021, the fair values of available-for-sale marketable securities, by remaining contractual maturity, were as follows (in thousands): Due within one year $ 909,906 Due in one year through five years 268,284 Total $ 1,178,190 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present information about the Company’s financial assets and liabilities that have been measured at fair value on a recurring basis as of March 31, 2021 and December 31, 2020, and indicate the fair value hierarchy of the valuation inputs utilized to determine such fair value (in thousands): Fair Value Measurement as of March 31, 2021 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 358,369 $ — $ — $ 358,369 Corporate debt securities — 3,785 — 3,785 Marketable Securities: Corporate debt securities — 855,689 — 855,689 Certificates of deposit — 47,695 — 47,695 U.S. government treasury securities — 83,956 — 83,956 Commercial paper — 190,850 — 190,850 Total financial assets $ 358,369 $ 1,181,975 $ — $ 1,540,344 Fair Value Measurement as of December 31, 2020 Level 1 Level 2 Level 3 Total Financial Assets: Cash equivalents: Money market funds $ 181,743 $ — $ — $ 181,743 Commercial paper — 25,195 — 25,195 Marketable Securities: Corporate debt securities — 927,850 — 927,850 Certificates of deposit — 47,256 — 47,256 U.S. government treasury securities — 108,294 — 108,294 Commercial paper — 209,132 — 209,132 Total financial assets $ 181,743 $ 1,317,727 $ — $ 1,499,470 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following (in thousands): March 31, December 31, Computers and equipment $ 12,307 $ 11,490 Furniture and fixtures 4,985 5,087 Leasehold improvements 17,420 17,639 Capitalized software development costs 57,649 48,502 Total property and equipment $ 92,361 $ 82,718 Less: accumulated depreciation and amortization (39,556) (35,521) Total property and equipment, net $ 52,805 $ 47,197 |
Acquisition, Intangible Asset_2
Acquisition, Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Acquisition, Intangible Assets And Goodwill [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consisted of the following (in thousands): March 31, 2021 Gross Accumulated Net Amortization Developed technology $ 5,031 $ (1,617) $ 3,414 3 years December 31, 2020 Gross Accumulated Net Amortization Developed technology $ 3,331 $ (1,262) $ 2,069 3 years |
Schedule of Future Amortization Expense | As of March 31, 2021, future amortization expense by year is expected to be as follows (in thousands): Amount Remainder of 2021 $ 1,188 2022 1,341 2023 819 2024 66 Total $ 3,414 |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill were as follows (in thousands): Amount Balance as of December 31, 2020 $ 17,609 Foreign currency translation adjustments (384) 2021 acquisition 31,254 Balance as of March 31, 2021 $ 48,479 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Net Carrying Amount of Liability and Equity Component of 2025 Notes | The net carrying amount of the liability component of the 2025 Notes was as follows (in thousands): March 31, Principal $ 747,500 Unamortized debt issuance costs (14,532) Net carrying amount $ 732,968 |
Interest Expense related to 2025 Notes | The following table sets forth the interest expense related to the 2025 Notes for the three months ended March 31, 2021 (in thousands): Three Months Ended March 31, 2021 Contractual interest expense $ 234 Amortization of issuance costs 835 Total $ 1,069 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Leases [Abstract] | |
Summary of Components of Lease Cost Recognized | The components of lease cost recognized within the Company’s condensed consolidated statements of operations were as follows (in thousands): Three Months Ended 2021 2020 Operating lease cost (1) $ 4,755 $ 3,960 Short-term lease cost 792 899 1) Includes non-cash lease expense of $4.0 million and $3.2 million for the three months ended March 31, 2021 and 2020, respectively. |
Summary of Supplemental Cash Flow Information and Non-cash Activity | Supplemental cash flow information and non-cash activity related to the Company’s operating leases are as follows (in thousands): Three Months Ended 2021 2020 Cash paid for amounts included in measurement of lease liabilities $ 4,483 $ 3,134 Operating lease assets obtained in exchange for new lease liabilities — 1,862 |
Summary of Maturities of Lease Liabilities | Maturities of lease liabilities by fiscal year for the Company’s operating leases are as follows (in thousands): Amount Remainder of 2021 $ 14,349 2022 20,023 2023 17,898 2024 2,572 2025 2,766 2026 and beyond 12,746 Total lease payments $ 70,354 Less: imputed interest (7,108) Present value of lease liabilities $ 63,246 |
Summary of Weighted Average Remaining Lease Term and Discount Rate | Weighted average remaining lease term and discount rate for the Company’s operating leases are as follows: March 31, Weighted-average remaining lease term (years) 4.3 Weighted-average discount rate 4.71 % |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Revenue by Geographic Area | Revenue by location is determined by the billing address of the customer. The following table sets forth revenue by geographic area (in thousands): Three Months Ended 2021 2020 North America $ 142,890 $ 99,382 International 55,659 31,866 Total $ 198,549 $ 131,248 |
Schedule of Deferred Contract Costs | The following table represents a rollforward of the Company’s deferred contract costs (in thousands): Amount Balance as of December 31, 2020 $ 40,388 Additions to deferred contract costs 6,711 Amortization of deferred contract costs (3,779) Balance as of March 31, 2021 $ 43,320 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Summary of Stock Option Activity and Weighted Average Exercise Prices | The following table summarizes the Company’s stock option activity and weighted-average exercise prices: Number Of Weighted- Weighted- Aggregate Balance outstanding—December 31, 2020 27,068,323 $ 3.31 6.7 $ 2,575,069 Options granted — — Options exercised (1,320,113) 2.49 Options forfeited or expired (96,151) 4.86 Balance outstanding—March 31, 2021 25,652,059 $ 3.34 6.4 $ 2,052,059 Exercisable—March 31, 2021 16,917,990 1.58 5.7 |
Summary of Activity for Unvested RSUs | The following table summarizes the activity for the Company’s unvested RSUs: Shares Weighted- Balance—December 31, 2020 5,166,720 $ 59.50 Awarded 387,107 92.15 Vested (348,352) 40.82 Forfeited/canceled (63,269) 50.91 Unvested and outstanding—March 31, 2021 5,142,206 $ 63.33 |
Summary of Stock-based Compensation Expense | Stock-based compensation expense was included in the condensed consolidated statement of operations as follows (in thousands): Three Months Ended 2021 2020 Cost of revenue $ 701 $ 231 Research and development 16,069 5,847 Sales and marketing 7,010 3,074 General and administrative 5,081 2,908 Stock-based compensation, net of amounts capitalized 28,861 12,060 Capitalized stock-based compensation expense 2,153 103 Total stock-based compensation expense $ 31,014 $ 12,163 |
Interest Income and Other Inc_2
Interest Income and Other Income, Net (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Interest and Other Income [Abstract] | |
Schedule of Interest Income and Other Income, Net | Interest income and other income, net consist of the following (in thousands): Three Months Ended 2021 2020 Interest income $ 5,898 $ 3,778 Other expense, net (125) (175) Interest income and other income, net $ 5,773 $ 3,603 |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted Net Loss Per Share | The following table presents the calculation of basic and diluted net (loss) income per share (in thousands, except per share data): Three Months Ended 2021 2020 Basic net (loss) income per share: Class A Class B Class A Class B Numerator: Net (loss) income $ (9,547) $ (3,521) $ 1,852 $ 4,627 Denominator: Weighted-average shares used in calculating net (loss) income per share, basic 223,566 82,468 84,434 211,021 Basic net (loss) income per share $ (0.04) $ (0.04) $ 0.02 $ 0.02 Diluted net (loss) income per share: Numerator: Allocation of distributed (loss) income for basic computation $ (9,547) $ (3,521) $ 1,852 $ 4,627 Reallocation of undistributed (loss) income as a result of conversion of Class B to Class A shares (3,521) — 4,627 — Allocation of undistributed (loss) income $ (13,068) $ (3,521) $ 6,479 $ 4,627 Denominator: Number of shares used in basic calculation 223,566 82,468 84,434 211,021 Weighted-average effect of diluted securities: Conversion of Class B to Class A common shares outstanding 82,468 — 211,021 — Employee stock options — — 30,708 — Employee stock purchase plan — — 129 — Unvested early exercises — — 1,139 — Restricted Stock Units — — 126 — Unvested restricted stock in connection with acquisition — — 244 — Number of shares used in diluted calculation 306,034 82,468 327,801 211,021 Diluted net (loss) income per share $ (0.04) $ (0.04) $ 0.02 $ 0.02 |
Schedule of Potentially Dilutive Securities not Included in Diluted Per Share Calculations | Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands): As of March 31, 2021 2020 Shares subject to outstanding stock options and restricted stock units 30,794 4,352 Unvested early exercised stock options and restricted stock 620 — Shares subject to the employee stock purchase plan 138 217 Shares issuable upon conversion of the convertible senior notes 8,098 — Total 39,650 4,569 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Jan. 01, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity | $ 841,330 | $ 957,432 | $ 802,895 | $ 782,341 | |
Convertible senior notes, net | 732,968 | 575,864 | |||
Cumulative Effect, Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity | (156,268) | ||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Convertible senior notes, net | $ 156,300 | ||||
Accumulated Deficit | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity | (144,429) | (148,163) | (117,137) | (123,616) | |
Accumulated Deficit | Cumulative Effect, Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity | 16,802 | ||||
Accumulated Deficit | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity | 16,800 | ||||
Additional Paid-in Capital | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity | $ 985,004 | 1,103,305 | $ 921,091 | $ 905,821 | |
Additional Paid-in Capital | Cumulative Effect, Period of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity | $ (173,070) | ||||
Additional Paid-in Capital | Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Stockholders' equity | $ (173,100) |
Marketable Securities - Summary
Marketable Securities - Summary of Available-for-sale Marketable Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 1,177,593 | $ 1,291,253 |
Unrealized Gain | 859 | 1,435 |
Unrealized Losses | (262) | (156) |
Fair Value | 1,178,190 | 1,292,532 |
Commercial debt securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 855,305 | 926,836 |
Unrealized Gain | 644 | 1,157 |
Unrealized Losses | (260) | (143) |
Fair Value | 855,689 | 927,850 |
Certificates of deposit | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 47,652 | 47,214 |
Unrealized Gain | 43 | 43 |
Unrealized Losses | 0 | (1) |
Fair Value | 47,695 | 47,256 |
U.S. government treasury securities | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 83,839 | 108,092 |
Unrealized Gain | 117 | 203 |
Unrealized Losses | 0 | (1) |
Fair Value | 83,956 | 108,294 |
Commercial paper | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 190,797 | 209,111 |
Unrealized Gain | 55 | 32 |
Unrealized Losses | (2) | (11) |
Fair Value | $ 190,850 | $ 209,132 |
Marketable Securities - Summa_2
Marketable Securities - Summary of Fair Values of Available-for-Sale Marketable Securities, by Remaining Contractual Maturity (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Due within one year | $ 909,906 |
Due in one year through five years | 268,284 |
Total | $ 1,178,190 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financial Assets: | ||
Marketable Securities: | $ 1,178,190 | $ 1,292,532 |
Commercial paper | ||
Financial Assets: | ||
Marketable Securities: | 190,850 | 209,132 |
Certificates of deposit | ||
Financial Assets: | ||
Marketable Securities: | 47,695 | 47,256 |
Fair Value, Recurring | ||
Financial Assets: | ||
Total financial assets | 1,540,344 | 1,499,470 |
Fair Value, Recurring | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 358,369 | 181,743 |
Fair Value, Recurring | Commercial paper | ||
Financial Assets: | ||
Cash equivalents: | 25,195 | |
Marketable Securities: | 190,850 | 209,132 |
Fair Value, Recurring | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents: | 3,785 | |
Marketable Securities: | 855,689 | 927,850 |
Fair Value, Recurring | Certificates of deposit | ||
Financial Assets: | ||
Marketable Securities: | 47,695 | 47,256 |
Fair Value, Recurring | U.S. government treasury securities | ||
Financial Assets: | ||
Marketable Securities: | 83,956 | 108,294 |
Fair Value, Recurring | Level 1 | ||
Financial Assets: | ||
Total financial assets | 358,369 | 181,743 |
Fair Value, Recurring | Level 1 | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 358,369 | 181,743 |
Fair Value, Recurring | Level 1 | Commercial paper | ||
Financial Assets: | ||
Cash equivalents: | 0 | |
Marketable Securities: | 0 | 0 |
Fair Value, Recurring | Level 1 | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents: | 0 | |
Marketable Securities: | 0 | 0 |
Fair Value, Recurring | Level 1 | Certificates of deposit | ||
Financial Assets: | ||
Marketable Securities: | 0 | 0 |
Fair Value, Recurring | Level 1 | U.S. government treasury securities | ||
Financial Assets: | ||
Marketable Securities: | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Financial Assets: | ||
Total financial assets | 1,181,975 | 1,317,727 |
Fair Value, Recurring | Level 2 | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 0 | 0 |
Fair Value, Recurring | Level 2 | Commercial paper | ||
Financial Assets: | ||
Cash equivalents: | 25,195 | |
Marketable Securities: | 190,850 | 209,132 |
Fair Value, Recurring | Level 2 | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents: | 3,785 | |
Marketable Securities: | 855,689 | 927,850 |
Fair Value, Recurring | Level 2 | Certificates of deposit | ||
Financial Assets: | ||
Marketable Securities: | 47,695 | 47,256 |
Fair Value, Recurring | Level 2 | U.S. government treasury securities | ||
Financial Assets: | ||
Marketable Securities: | 83,956 | 108,294 |
Fair Value, Recurring | Level 3 | ||
Financial Assets: | ||
Total financial assets | 0 | 0 |
Fair Value, Recurring | Level 3 | Money market funds | ||
Financial Assets: | ||
Cash equivalents: | 0 | 0 |
Fair Value, Recurring | Level 3 | Commercial paper | ||
Financial Assets: | ||
Cash equivalents: | 0 | |
Marketable Securities: | 0 | 0 |
Fair Value, Recurring | Level 3 | Corporate debt securities | ||
Financial Assets: | ||
Cash equivalents: | 0 | |
Marketable Securities: | 0 | 0 |
Fair Value, Recurring | Level 3 | Certificates of deposit | ||
Financial Assets: | ||
Marketable Securities: | 0 | 0 |
Fair Value, Recurring | Level 3 | U.S. government treasury securities | ||
Financial Assets: | ||
Marketable Securities: | $ 0 | $ 0 |
Property and Equipment, Net - C
Property and Equipment, Net - Components of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 92,361 | $ 82,718 |
Less: accumulated depreciation and amortization | (39,556) | (35,521) |
Total property and equipment, net | 52,805 | 47,197 |
Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 12,307 | 11,490 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 4,985 | 5,087 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 17,420 | 17,639 |
Capitalized software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 57,649 | $ 48,502 |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation and amortization expense | $ 4 | $ 3.5 |
Acquisition, Intangible Asset_3
Acquisition, Intangible Assets and Goodwill - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 48,479 | $ 17,609 | |
Intangible amortization expense | 400 | $ 200 | |
2021 Acquisition | |||
Business Acquisition [Line Items] | |||
Purchase price was allocated to intangible assets | 1,700 | ||
Goodwill | $ 31,300 | ||
2020 Acquisition | |||
Business Acquisition [Line Items] | |||
Purchase price was allocated to intangible assets | 1,500 | ||
Goodwill | $ 7,800 |
Acquisition, Intangible Asset_4
Acquisition, Intangible Assets and Goodwill - Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Net Carrying Amount | $ 3,414 | $ 2,069 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,031 | 3,331 |
Accumulated Amortization | (1,617) | (1,262) |
Net Carrying Amount | $ 3,414 | $ 2,069 |
Amortization Period | 3 years | 3 years |
Acquisition, Intangible Asset_5
Acquisition, Intangible Assets and Goodwill - Schedule of Future Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Acquisition, Intangible Assets And Goodwill [Abstract] | ||
Remainder of 2021 | $ 1,188 | |
2022 | 1,341 | |
2023 | 819 | |
2024 | 66 | |
Net Carrying Amount | $ 3,414 | $ 2,069 |
Acquisition, Intangible Asset_6
Acquisition, Intangible Assets and Goodwill - Schedule of Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 17,609 |
Foreign currency translation adjustments | (384) |
2021 acquisition | 31,254 |
Goodwill, ending balance | $ 48,479 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Details) $ / shares in Units, shares in Millions | Jun. 02, 2020USD ($)d$ / shares | Mar. 31, 2021USD ($)$ / sharesshares | Jan. 01, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||||
Stockholders' equity | $ 841,330,000 | $ 957,432,000 | $ 802,895,000 | $ 782,341,000 | ||
Convertible senior notes, net | 732,968,000 | 575,864,000 | ||||
Accumulated Deficit | ||||||
Debt Instrument [Line Items] | ||||||
Stockholders' equity | (144,429,000) | (148,163,000) | (117,137,000) | (123,616,000) | ||
Additional Paid-in Capital | ||||||
Debt Instrument [Line Items] | ||||||
Stockholders' equity | 985,004,000 | 1,103,305,000 | $ 921,091,000 | $ 905,821,000 | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Debt Instrument [Line Items] | ||||||
Stockholders' equity | (156,268,000) | |||||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | ||||||
Debt Instrument [Line Items] | ||||||
Stockholders' equity | 16,802,000 | |||||
Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-in Capital | ||||||
Debt Instrument [Line Items] | ||||||
Stockholders' equity | $ (173,070,000) | |||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | ||||||
Debt Instrument [Line Items] | ||||||
Convertible senior notes, net | $ 156,300,000 | |||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | Accumulated Deficit | ||||||
Debt Instrument [Line Items] | ||||||
Stockholders' equity | 16,800,000 | |||||
Cumulative Effect, Period of Adoption, Adjustment | Accounting Standards Update 2020-06 | Additional Paid-in Capital | ||||||
Debt Instrument [Line Items] | ||||||
Stockholders' equity | $ (173,100,000) | |||||
0.125% Convertible Senior Notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Principal | $ 747,500,000 | 747,500,000 | ||||
Debt instrument, interest rate | 0.125% | |||||
Debt instrument, net proceeds from sale of notes | $ 730,200,000 | |||||
Debt instrument, fair value calculation base | 100 | |||||
Debt instrument, convertible carrying amount of equity component | 177,200,000 | |||||
Debt issuance costs | 17,300,000 | |||||
Issuance cost attributable to liability component | $ 13,200,000 | |||||
Debt instrument, effective interest rate | 5.97% | |||||
Issuance cost attributable to equity component | $ 4,100,000 | |||||
Convertible senior notes, net | 732,968,000 | |||||
Debt instrument, estimated fair value (in dollars per share) | $ 881,000,000 | |||||
Initial strike price per share of capped calls (in dollars per share) | $ / shares | $ 92.30 | |||||
Initial cap price per share of capped calls | $ / shares | $ 151.04 | |||||
Cost incurred to purchase capped calls | $ 89,600,000 | |||||
0.125% Convertible Senior Notes due 2025 | Conversion Preceding March 15, 2025, Scenario One | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, trading days | d | 20 | |||||
Debt instrument, consecutive trading days | d | 30 | |||||
Debt instrument, threshold percentage of conversion price | 130.00% | |||||
0.125% Convertible Senior Notes due 2025 | Conversion Preceding March 15, 2025, Scenario Two | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, consecutive trading days | d | 10 | |||||
Number of consecutive business days after any five consecutive trading day period during the note measurement period | d | 5 | |||||
Debt instrument, fair value calculation base | $ 1,000 | |||||
Debt instrument, convertible, threshold maximum percentage of product of last reported sale price of common stock | 98.00% | |||||
0.125% Convertible Senior Notes due 2025 | Conversion, On or After March 15, 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, fair value calculation base | $ 1,000 | |||||
0.125% Convertible Senior Notes due 2025 | Redemption, On or After June 20, 2023, and Prior to 31st Scheduled Trading Day | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument redemption price percentage of principal amount redeemed | 100.00% | |||||
0.125% Convertible Senior Notes due 2025 | Class A Common Stock | ||||||
Debt Instrument [Line Items] | ||||||
Common stock covered under capped calls (in shares) | shares | 8.1 | |||||
0.125% Convertible Senior Notes due 2025 | Class A Common Stock | Conversion, On or After March 15, 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, conversion ratio | 0.0108338 | |||||
Debt instrument, conversion price per share (in dollars per share) | $ / shares | $ 92.30 | |||||
0.125% Convertible Senior Notes due 2025 | Class A Common Stock | Redemption, On or After June 20, 2023, and Prior to 31st Scheduled Trading Day | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, trading days | d | 20 | |||||
Debt instrument, consecutive trading days | d | 30 | |||||
0.125% Convertible Senior Notes due 2025 | Class A Common Stock | Minimum | Redemption, On or After June 20, 2023, and Prior to 31st Scheduled Trading Day | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, threshold percentage of conversion price | 130.00% |
Convertible Senior Notes - Summ
Convertible Senior Notes - Summary of Net Carrying Amount of Liability Component of 2025 Notes (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 02, 2020 |
Debt Instrument [Line Items] | |||
Net carrying amount | $ 732,968,000 | $ 575,864,000 | |
0.125% Convertible Senior Notes due 2025 | |||
Debt Instrument [Line Items] | |||
Principal | 747,500,000 | $ 747,500,000 | |
Unamortized debt issuance costs | (14,532,000) | ||
Net carrying amount | $ 732,968,000 |
Convertible Senior Notes - Inte
Convertible Senior Notes - Interest Expense related to 2025 Notes (Details) - 0.125% Convertible Senior Notes due 2025 $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Debt Instrument [Line Items] | |
Contractual interest expense | $ 234 |
Amortization of issuance costs | 835 |
Total | $ 1,069 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Matching contributions to the 401(k) plan | $ 0 | $ 0 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Lessee, Lease, Description [Line Items] | |
Undiscounted future payments | $ 70,354 |
Operating Lease Not Yet Commenced One | |
Lessee, Lease, Description [Line Items] | |
Undiscounted future payments | $ 19,000 |
Lessee, operating lease, lease not yet commenced, term of contract | 7 years 9 months 18 days |
Operating Lease Not Yet Commenced Two | |
Lessee, Lease, Description [Line Items] | |
Undiscounted future payments | $ 4,200 |
Lessee, operating lease, lease not yet commenced, term of contract | 8 years 3 months 18 days |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Operating lease, renewal term | 5 years |
Operating lease, termination term | 3 years |
Leases - Summary of Components
Leases - Summary of Components of Lease Cost Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 4,755 | $ 3,960 |
Short-term lease cost | 792 | 899 |
Operating lease, non-cash lease expense | $ 4,000 | $ 3,200 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Cash Flow Information and Non-cash Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Leases [Abstract] | ||
Cash paid for amounts included in measurement of lease liabilities | $ 4,483 | $ 3,134 |
Operating lease assets obtained in exchange for new lease liabilities | $ 0 | $ 1,862 |
Leases - Summary of Maturities
Leases - Summary of Maturities of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Leases [Abstract] | |
Remainder of 2021 | $ 14,349 |
2022 | 20,023 |
2023 | 17,898 |
2024 | 2,572 |
2025 | 2,766 |
2026 | 12,746 |
Total lease payments | 70,354 |
Less: imputed interest | (7,108) |
Present value of lease liabilities | $ 63,246 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Term and Discount Rate (Details) | Mar. 31, 2021 |
Leases [Abstract] | |
Weighted-average remaining lease term (in years) | 4 years 3 months 18 days |
Weighted-average discount rate | 4.71% |
Revenue - Schedule of Revenue b
Revenue - Schedule of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue by geographic area | $ 198,549 | $ 131,248 |
North America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue by geographic area | 142,890 | 99,382 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue by geographic area | $ 55,659 | $ 31,866 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue recognized | $ 96.4 | $ 68.1 | |
Allowance for doubtful accounts receivable deemed uncollectible | 0.2 | 0.2 | |
Unbilled accounts receivable | $ 25.6 | $ 20.1 | |
Deferred contract costs amortization period | 4 years | ||
Deferred contract costs | $ 43.3 | 40.4 | |
Amortization expense | 3.8 | $ 2.2 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligations | $ 434.1 | ||
Remaining performance obligations, expected to recognize period | 24 months | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-04-01 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Remaining performance obligations | $ 464.3 | ||
Remaining performance obligations, expected to recognize period | 24 months |
Revenue - Schedule of Deferred
Revenue - Schedule of Deferred Contract Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Movement In Capitalized Contract Cost [Roll Forward] | ||
Beginning balance | $ 40,388 | |
Additions to deferred contract costs | 6,711 | |
Amortization of deferred contract costs | (3,779) | $ (2,185) |
Ending balance | $ 43,320 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
Feb. 28, 2021shares | Jun. 30, 2020shares | Nov. 30, 2019shares | Sep. 30, 2019 | Mar. 31, 2021USD ($)voteplanclass$ / sharesshares | Mar. 31, 2020USD ($)$ / shares | Dec. 31, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of common stock classes | class | 2 | ||||||
Number of equity incentive plan | plan | 2 | ||||||
Stock issuable upon the exercise of options outstanding (in shares) | 25,652,059 | 27,068,323 | |||||
Options granted (in shares) | 0 | ||||||
Proceeds from exercise of stock options | $ | $ 3,275 | $ 2,813 | |||||
Share-based payment arrangement, expense | $ | 28,861 | 12,060 | |||||
Amounts withheld on behalf of employees for a future purchase | $ | 245 | $ 0 | |||||
Employee stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total compensation cost related to unvested awards not yet recognized | $ | $ 53,500 | $ 60,600 | |||||
Weighted average period over compensation cost related to unvested employee awards | 1 year 10 months 24 days | 2 years | |||||
Options granted (in shares) | 0 | ||||||
Weighted average grant-date fair value of options granted (in dollars per share) | $ / shares | $ 16.55 | ||||||
Proceeds from exercise of stock options | $ | $ 3,300 | $ 2,800 | |||||
Intrinsic value of options exercised | $ | 123,600 | 86,500 | |||||
Aggregate fair value of options vested | $ | $ 7,400 | $ 3,800 | |||||
Early exercise of common stock (in shares) | 238,500 | 438,750 | |||||
Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average period over compensation cost related to unvested employee awards | 3 years 2 months 12 days | 3 years 4 months 24 days | |||||
Common stock granted | 387,107 | ||||||
Total compensation cost related to unvested awards not yet recognized | $ | $ 298,100 | $ 281,500 | |||||
Employee Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based payment arrangement, expiration period | 27 months | ||||||
Percentage of purchase the shares at a price per share | 85.00% | ||||||
Share-based payment arrangement, expense | $ | 1,600 | ||||||
Amounts withheld on behalf of employees for a future purchase | $ | $ 7,800 | ||||||
Class B Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, number of votes per share | vote | 10 | ||||||
Common stock, number of shares converted | 13,014,453 | ||||||
Common stock, authorized (in shares) | 310,000,000 | 310,000,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | |||||
Common stock, issued (in shares) | 75,385,154 | 87,369,554 | |||||
Stock issuable upon the exercise of options outstanding (in shares) | 25,617,708 | 27,033,564 | |||||
Class A Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock, number of votes per share | vote | 1 | ||||||
Common stock, authorized (in shares) | 2,000,000,000 | 2,000,000,000 | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 0.00001 | $ 0.00001 | |||||
Common stock, issued (in shares) | 232,419,196 | 218,510,509 | |||||
Stock issuable upon the exercise of options outstanding (in shares) | 34,351 | 34,759 | |||||
Class A Common Stock | Service-based Restricted Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common stock granted | 117,538 | 96,210 | 244,445 | ||||
Service based vesting period | 4 years | ||||||
Class A Common Stock | 2019 Equity Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for grant (in shares) | 57,863,748 | ||||||
Class A Common Stock | Employee Stock Purchase Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares available for grant (in shares) | 12,281,683 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity and Weighted Average Exercise Prices (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Number Of Options Outstanding | ||
Beginning balance (in shares) | 27,068,323 | |
Options granted (in shares) | 0 | |
Options exercised (in shares) | (1,320,113) | |
Options forfeited or expired (in shares) | (96,151) | |
Ending balance (in shares) | 25,652,059 | 27,068,323 |
Exercisable (in shares) | 16,917,990 | |
Weighted- Average Exercise Price | ||
Beginning balance (in dollars per share) | $ 3.31 | |
Options granted (in dollars per share) | 0 | |
Options exercised (in dollars per share) | 2.49 | |
Options forfeited or expired (in dollars per share) | 4.86 | |
Ending balance (in dollars per share) | 3.34 | $ 3.31 |
Exercisable (in dollars per share) | $ 1.58 | |
Weighted-average remaining contractual life (in years) | 6 years 4 months 24 days | 6 years 8 months 12 days |
Exercisable (in years) | 5 years 8 months 12 days | |
Aggregate intrinsic value | $ 2,052,059 | $ 2,575,069 |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Activity for Unvested RSUs (Details) - Restricted Stock Units (RSUs) | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Shares | |
Beginning balance (in shares) | shares | 5,166,720 |
Awarded (in shares) | shares | 387,107 |
Vested (in shares) | shares | (348,352) |
Forfeited/canceled (in shares) | shares | (63,269) |
Ending balance (in shares) | shares | 5,142,206 |
Weighted- Average Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 59.50 |
Awarded (in shares) | $ / shares | 92.15 |
Vested (in shares) | $ / shares | 40.82 |
Forfeited/cancelled ((in dollars per share) | $ / shares | 50.91 |
Ending balance (in dollars per share) | $ / shares | $ 63.33 |
Stockholders' Equity - Summar_3
Stockholders' Equity - Summary of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation, net of amounts capitalized | $ 28,861 | $ 12,060 |
Capitalized stock-based compensation expense | 2,153 | 103 |
Total stock-based compensation expense | 31,014 | 12,163 |
Cost of revenue | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation, net of amounts capitalized | 701 | 231 |
Research and development | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation, net of amounts capitalized | 16,069 | 5,847 |
Sales and marketing | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation, net of amounts capitalized | 7,010 | 3,074 |
General and administrative | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Stock-based compensation, net of amounts capitalized | $ 5,081 | $ 2,908 |
Interest Income and Other Inc_3
Interest Income and Other Income, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Interest and Other Income [Abstract] | ||
Interest income | $ 5,898 | $ 3,778 |
Other expense, net | (125) | (175) |
Interest income and other income, net | $ 5,773 | $ 3,603 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Taxes [Line Items] | ||
Effective tax rate | (4.30%) | 2.90% |
Net (Loss) Income Per Share - S
Net (Loss) Income Per Share - Schedule of Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Basic net (loss) income per share: | ||
Net (loss) income | $ (13,068) | $ 6,479 |
Weighted-average shares used in calculating net income (loss) per share, basic (in shares) | 306,034 | 295,455 |
Basic net income (loss) per share (in dollars per share) | $ (0.04) | $ 0.02 |
Diluted net (loss) income per share: | ||
Net (loss) income attributable to common stockholders | $ (13,068) | $ 6,479 |
Number of shares used in basic calculation (in shares) | 306,034 | 295,455 |
Weighted-average effect of diluted securities: | ||
Number of shares used in diluted calculation (in shares) | 306,034 | 327,801 |
Diluted net income (loss) per share (in dollars per share) | $ (0.04) | $ 0.02 |
Class A Common Stock | ||
Basic net (loss) income per share: | ||
Net (loss) income | $ (9,547) | $ 1,852 |
Weighted-average shares used in calculating net income (loss) per share, basic (in shares) | 223,566 | 84,434 |
Basic net income (loss) per share (in dollars per share) | $ (0.04) | $ 0.02 |
Diluted net (loss) income per share: | ||
Net (loss) income attributable to common stockholders | $ (9,547) | $ 1,852 |
Reallocation of undistributed (loss) income as a result of conversion of Class B to Class A shares | (3,521) | 4,627 |
Allocation of undistributed (loss) income | $ (13,068) | $ 6,479 |
Number of shares used in basic calculation (in shares) | 223,566 | 84,434 |
Weighted-average effect of diluted securities: | ||
Conversion of Class B to Class A common shares outstanding (in shares) | 82,468 | 211,021 |
Number of shares used in diluted calculation (in shares) | 306,034 | 327,801 |
Diluted net income (loss) per share (in dollars per share) | $ (0.04) | $ 0.02 |
Class A Common Stock | Employee stock options | ||
Weighted-average effect of diluted securities: | ||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 30,708 |
Class A Common Stock | Employee stock purchase plan | ||
Weighted-average effect of diluted securities: | ||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 129 |
Class A Common Stock | Unvested early exercises | ||
Weighted-average effect of diluted securities: | ||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 1,139 |
Class A Common Stock | Restricted Stock Units | ||
Weighted-average effect of diluted securities: | ||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 126 |
Class A Common Stock | Unvested restricted stock in connection with acquisition | ||
Weighted-average effect of diluted securities: | ||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 244 |
Class B Common Stock | ||
Basic net (loss) income per share: | ||
Net (loss) income | $ (3,521) | $ 4,627 |
Weighted-average shares used in calculating net income (loss) per share, basic (in shares) | 82,468 | 211,021 |
Basic net income (loss) per share (in dollars per share) | $ (0.04) | $ 0.02 |
Diluted net (loss) income per share: | ||
Net (loss) income attributable to common stockholders | $ (3,521) | $ 4,627 |
Reallocation of undistributed (loss) income as a result of conversion of Class B to Class A shares | 0 | 0 |
Allocation of undistributed (loss) income | $ (3,521) | $ 4,627 |
Number of shares used in basic calculation (in shares) | 82,468 | 211,021 |
Weighted-average effect of diluted securities: | ||
Conversion of Class B to Class A common shares outstanding (in shares) | 0 | 0 |
Number of shares used in diluted calculation (in shares) | 82,468 | 211,021 |
Diluted net income (loss) per share (in dollars per share) | $ (0.04) | $ 0.02 |
Class B Common Stock | Employee stock options | ||
Weighted-average effect of diluted securities: | ||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 0 |
Class B Common Stock | Employee stock purchase plan | ||
Weighted-average effect of diluted securities: | ||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 0 |
Class B Common Stock | Unvested early exercises | ||
Weighted-average effect of diluted securities: | ||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 0 |
Class B Common Stock | Restricted Stock Units | ||
Weighted-average effect of diluted securities: | ||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 0 |
Class B Common Stock | Unvested restricted stock in connection with acquisition | ||
Weighted-average effect of diluted securities: | ||
Dilutive effect of share-based payment arrangements (in shares) | 0 | 0 |
Net (Loss) Income Per Share -_2
Net (Loss) Income Per Share - Schedule of Potentially Dilutive Securities not Included in Diluted Per Share Calculations (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities not included in diluted per share calculations (in shares) | 39,650 | 4,569 |
Shares subject to outstanding stock options and restricted stock units | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities not included in diluted per share calculations (in shares) | 30,794 | 4,352 |
Unvested early exercised stock options and restricted stock | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities not included in diluted per share calculations (in shares) | 620 | 0 |
Shares subject to the employee stock purchase plan | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities not included in diluted per share calculations (in shares) | 138 | 217 |
Shares issuable upon conversion of the convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Potentially dilutive securities not included in diluted per share calculations (in shares) | 8,098 | 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Sqreen, Inc - Subsequent Event $ in Millions | 1 Months Ended |
Apr. 30, 2021USD ($) | |
Subsequent Event [Line Items] | |
Purchase consideration in cash and stock to acquire business | $ 260 |
Purchase consideration in cash and stock to acquire business deferred percentage | 25.00% |
Uncategorized Items - ddog-2021
Label | Element | Value |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 3,613,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 3,808,000 |