Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | SNAP | |
Entity Registrant Name | Snap Inc | |
Entity Central Index Key | 1,564,408 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 962,983,090 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 94,479,066 | |
Class C Common Stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 219,890,702 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | ||||
Net loss | $ (353,310) | $ (443,093) | $ (739,095) | $ (2,651,930) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Depreciation and amortization | 22,514 | 12,585 | 44,068 | 25,035 |
Stock-based compensation | 156,371 | 245,028 | 289,630 | 2,237,149 |
Deferred income taxes | 17 | (277) | 253 | (1,765) |
Other | (5,893) | (3,564) | (9,287) | (1,672) |
Change in operating assets and liabilities, net of effect of acquisitions: | ||||
Accounts receivable, net of allowance | (13,926) | (21,653) | 34,771 | (8,209) |
Prepaid expenses and other current assets | 7,815 | (4,399) | (2,624) | (47,835) |
Other assets | 9,021 | (12,823) | 13,225 | (10,108) |
Accounts payable | (9,653) | 3,698 | (46,722) | 9,317 |
Accrued expenses and other current liabilities | (19,356) | 12,986 | (29,505) | 82,190 |
Other liabilities | 7,054 | 1,938 | 13,959 | 3,257 |
Net cash used in operating activities | (199,346) | (209,574) | (431,327) | (364,571) |
Cash flows from investing activities | ||||
Purchases of property and equipment | (34,901) | (19,365) | (71,216) | (37,358) |
Purchases of intangible assets | (2,505) | (7,720) | (2,565) | (7,720) |
Non-marketable investments | (21,010) | (6,905) | (21,010) | (7,530) |
Cash paid for acquisitions, net of cash acquired | 0 | (206,163) | 0 | (224,176) |
Purchases of marketable securities | (396,885) | (1,319,156) | (874,098) | (2,742,370) |
Sales of marketable securities | 0 | 237,095 | 45,007 | 237,095 |
Maturities of marketable securities | 578,509 | 602,432 | 1,366,337 | 1,047,479 |
Net cash provided by (used in) investing activities | 123,208 | (719,782) | 442,455 | (1,734,580) |
Cash flows from financing activities | ||||
Proceeds from the exercise of stock options | 1,914 | 189 | 47,723 | 783 |
Stock repurchases from employees for tax withholdings | 0 | (1,828) | (551) | (208,407) |
Proceeds from issuance of Class A common stock in initial public offering, net of underwriting commissions | 0 | 0 | 0 | 2,657,797 |
Payments of initial public offering issuance costs | 0 | (4,341) | 0 | (9,365) |
Net cash provided by (used in) financing activities | 1,914 | (5,980) | 47,172 | 2,440,808 |
Change in cash, cash equivalents, and restricted cash | (74,224) | (935,336) | 58,300 | 341,657 |
Cash, cash equivalents, and restricted cash, beginning of period | 469,531 | 1,440,329 | 337,007 | 163,336 |
Cash, cash equivalents, and restricted cash, end of period | 395,307 | 504,993 | 395,307 | 504,993 |
Supplemental disclosures | ||||
Cash paid for income taxes | 1,406 | 1,945 | 2,397 | 5,490 |
Supplemental disclosures of non-cash activities | ||||
Purchase consideration liabilities related to acquisitions | 0 | 9,341 | 0 | 11,242 |
Construction in progress related to financing lease obligations | 431 | 426 | 856 | 683 |
Net change in accounts payable and accrued expenses and other current liabilities related to property and equipment additions | $ 143 | $ 612 | $ 588 | $ (3,743) |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 262,263 | $ 181,671 | $ 492,929 | $ 331,319 |
Costs and expenses: | ||||
Cost of revenue | 191,565 | 152,148 | 388,363 | 315,506 |
Research and development | 203,246 | 255,735 | 404,232 | 1,061,583 |
Sales and marketing | 101,685 | 90,903 | 203,798 | 310,636 |
General and administrative | 123,609 | 131,903 | 246,908 | 1,306,379 |
Total costs and expenses | 620,105 | 630,689 | 1,243,301 | 2,994,104 |
Loss from operations | (357,842) | (449,018) | (750,372) | (2,662,785) |
Interest income | 6,600 | 6,349 | 12,704 | 8,773 |
Interest expense | (930) | (998) | (1,864) | (1,693) |
Other income (expense), net | (61) | 786 | 3,092 | 973 |
Loss before income taxes | (352,233) | (442,881) | (736,440) | (2,654,732) |
Income tax benefit (expense) | (1,077) | (212) | (2,655) | 2,802 |
Net loss | $ (353,310) | $ (443,093) | $ (739,095) | $ (2,651,930) |
Net loss per share attributable to Class A, Class B, and Class C common stockholders (Note 3): | ||||
Basic | $ (0.27) | $ (0.36) | $ (0.58) | $ (2.43) |
Diluted | $ (0.27) | $ (0.36) | $ (0.58) | $ (2.43) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (353,310) | $ (443,093) | $ (739,095) | $ (2,651,930) |
Other comprehensive income (loss), net of tax | ||||
Unrealized gain (loss) on marketable securities, net of tax | 450 | (772) | 493 | (896) |
Foreign currency translation | (13,206) | 5,997 | (6,443) | 6,543 |
Total other comprehensive income (loss), net of tax | (12,756) | 5,225 | (5,950) | 5,647 |
Total comprehensive income (loss) | $ (366,066) | $ (437,868) | $ (745,045) | $ (2,646,283) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 393,183 | $ 334,063 |
Marketable securities | 1,176,820 | 1,708,976 |
Accounts receivable, net of allowance | 244,815 | 279,473 |
Prepaid expenses and other current assets | 54,032 | 44,282 |
Total current assets | 1,868,850 | 2,366,794 |
Property and equipment, net | 214,230 | 166,762 |
Intangible assets, net | 147,197 | 166,473 |
Goodwill | 635,482 | 639,882 |
Other assets | 84,954 | 81,655 |
Total assets | 2,950,713 | 3,421,566 |
Current liabilities | ||
Accounts payable | 22,644 | 71,194 |
Accrued expenses and other current liabilities | 256,698 | 275,062 |
Total current liabilities | 279,342 | 346,256 |
Other liabilities | 87,303 | 82,983 |
Total liabilities | 366,645 | 429,239 |
Commitments and contingencies (Note 6) | ||
Stockholders’ equity | ||
Additional paid-in capital | 7,971,610 | 7,634,825 |
Accumulated other comprehensive income (loss) | 8,207 | 14,157 |
Accumulated deficit | (5,395,762) | (4,656,667) |
Total stockholders’ equity | 2,584,068 | 2,992,327 |
Total liabilities and stockholders’ equity | 2,950,713 | 3,421,566 |
Class A Non-voting Common Stock | ||
Stockholders’ equity | ||
Common stock, value | 10 | 9 |
Class B Voting Common Stock | ||
Stockholders’ equity | ||
Common stock, value | 1 | 1 |
Class C Voting Common Stock | ||
Stockholders’ equity | ||
Common stock, value | $ 2 | $ 2 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Class A Non-voting Common Stock | ||
Common stock par value | $ 0.00001 | $ 0.00001 |
Common stock authorized | 3,000,000,000 | 3,000,000,000 |
Common stock issued | 958,801,000 | 883,022,000 |
Common stock outstanding | 958,801,000 | 883,022,000 |
Class B Voting Common Stock | ||
Common stock par value | $ 0.00001 | $ 0.00001 |
Common stock authorized | 700,000,000 | 700,000,000 |
Common stock issued | 94,471,000 | 122,564,000 |
Common stock outstanding | 94,471,000 | 122,564,000 |
Class C Voting Common Stock | ||
Common stock par value | $ 0.00001 | $ 0.00001 |
Common stock authorized | 260,888,000 | 260,888,000 |
Common stock issued | 219,891,000 | 216,616,000 |
Common stock outstanding | 219,891,000 | 216,616,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Snap Inc. is a camera company. Snap Inc. (“we,” “our,” or “us”) was formed as Future Freshman, LLC, a California limited liability company, in 2010. We changed our name to Toyopa Group, LLC in 2011, incorporated as Snapchat, Inc., a Delaware corporation, in 2012, and changed our name to Snap Inc. in 2016. Snap Inc. is headquartered in Santa Monica, California. Our flagship product, Snapchat, is a camera application that was created to help people communicate through short videos and images called “Snaps.” Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Our consolidated financial statements include the accounts of Snap Inc. and our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Our fiscal year ends on December 31. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as filed with the SEC on February 22, 2018 (the “Annual Report”). In our opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position, results of operations, and cash flows. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018. Other than described below, there have been no changes to our significant accounting policies described in our Annual Report that have had a material impact on our consolidated financial statements and related notes. Use of Estimates The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements. Management’s estimates are based on historical information available as of the date of the consolidated financial statements and various other assumptions that we believe are reasonable under the circumstances. Actual results could differ from those estimates. Key estimates relate primarily to determining the fair value of assets and liabilities assumed in business combinations, evaluation of contingencies, uncertain tax positions, excess inventory reserves, and the fair value of stock-based awards. On an ongoing basis, management evaluates our estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Revenue Recognition, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue | 2. Revenue Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. We determine collectability by performing ongoing credit evaluations and monitoring customer accounts receivable balances. Sales tax is excluded from reported revenue. Advertising Revenues We generate substantially all of our revenues by offering various advertising products on Snapchat, including Snap Ads, Sponsored Creative Tools, and measurement services, referred to as advertising revenue. Sponsored Creative Tools include Sponsored Geofilters and Sponsored Lenses. Sponsored Geofilters allow users to interact with an advertiser’s brand by enabling stylized brand artwork to be overlaid on a Snap. Sponsored Lenses allow users to interact with an advertiser’s brand by enabling branded interactive experiences. The majority of advertising revenue is generated from the display of advertisements on Snapchat through contractual agreements that are either on a fixed fee basis over a period of time or based on the number of advertising impressions delivered. Revenue related to agreements based on the number of impressions delivered is recognized when the advertisement is displayed. Revenue related to fixed fee arrangements is recognized ratably over the service period, typically less than 30 days in duration, and such arrangements do not contain minimum impression guarantees. In determining whether an arrangement exists, we ensure that an agreement, such as an insertion order, has been fully executed. We sell advertising directly to advertisers (“Snap-sold” revenue) and certain partners that provide content on Snapchat (“content partners”) also sell directly to advertisers (“partner-sold” revenue). Snap Ads may be subject to revenue sharing agreements between us and our content partners. Our Sponsored Creative Tools and measurement services are only Snap-sold and are not subject to revenue sharing arrangements. Snap-sold revenue is recognized based on the gross amount that we charge the advertiser. Partner-sold revenue is recognized based on the net amount of revenue to be received from the content partners. We report Snap-sold revenue on a gross basis predominately because we are the primary obligor responsible for fulfilling advertisement delivery, including the acceptability of the services delivered. For Snap-sold advertising, we enter into contractual arrangements directly with advertisers. We are directly responsible for the fulfillment of the contractual terms and any remedy for issues with such fulfillment. For Snap-sold revenue, we also have latitude in establishing the selling price with the advertiser, as we sell advertisements at a rate determined at our sole discretion. We report revenue related to transactions sold by our content partners on a net basis predominately because the content partner, and not Snap, is the primary obligor responsible for fulfillment, including the acceptability of the services delivered. In partner-sold advertising arrangements, the content partner has a direct contractual relationship with the advertiser. There is no contractual relationship between us and the advertiser for partner-sold transactions. When a content partner sells advertisements, the content partner is responsible for fulfilling the advertisements, and accordingly, we have determined the content partner is the primary obligor. Additionally, we do not have any latitude in establishing the price with the advertiser for partner-sold advertising. The content partner may sell advertisements at a rate determined at its sole discretion. Other Revenue Other revenue primarily consists of revenue from sales of our hardware product, Spectacles. For the periods presented, revenue from the sales of Spectacles was not material. Components of Revenue The following table presents our revenue disaggregated by revenue source: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) Snap-sold (1) $ 254,084 $ 164,957 $ 476,619 $ 293,926 Partner-sold 6,378 11,320 13,005 23,580 Advertising revenue 260,462 176,277 489,624 317,506 Other revenue 1,801 5,394 3,305 13,813 Total revenue $ 262,263 $ 181,671 $ 492,929 $ 331,319 (1) Snap-sold revenue includes advertisements displayed on both our content and content contributed by our users and partners, Sponsored Creative Tools, and measurement services. The following table represents our revenue disaggregated by geography based on the billing address of the advertising customer: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) Revenue: North America (1) (2) $ 171,619 $ 162,461 $ 338,558 $ 288,747 Europe (3) 40,506 12,021 71,331 29,036 Rest of world 50,138 7,189 83,040 13,536 Total revenue $ 262,263 $ 181,671 $ 492,929 $ 331,319 (1) North America includes Mexico and the Caribbean. (2) United States revenue was $165.9 million and $145.7 million for the three months ended June 30, 2018 and 2017, respectively, and $326.9 million and $269.4 million for the six months ended June 30, 2018 and 2017, respectively. (3) Europe includes Russia and Turkey. |
Net Loss per Share
Net Loss per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss per Share | 3. Net Loss per Share We compute net loss per share using the two-class method required for multiple classes of common stock and participating securities. Our participating securities include any shares issued on the early exercise of stock options subject to repurchase because holders of such shares have non-forfeitable dividend rights in the event a dividend is paid on common stock. In March 2017, we completed our initial public offering (“IPO”) in which we issued and sold 160.3 million shares of Class A common stock, inclusive of the over-allotment, at an initial public offering price of $17.00 per share and excluding shares sold in the IPO by certain of our existing stockholders. We received net proceeds of $2.6 billion after deducting underwriting discounts and commissions of $68.1 million and other offering expenses of $14.7 million. On the closing of the IPO, all shares of our then-outstanding convertible preferred stock other than Series FP preferred stock automatically converted into an aggregate of 246.8 million shares of Class B common stock and all outstanding shares of Series FP preferred stock automatically converted into 215.9 million shares of Class C common stock. Following the IPO, we have three classes of authorized common stock – Class A common stock, Class B common stock, and Class C common stock. Before the IPO, our participating securities also included Series D, E, F, and FP preferred stock and Series A, A-1, B, and C convertible preferred stock. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock, and the Series D, E, F, and FP preferred stock were substantially identical, other than voting rights. Accordingly, the Class A common stock, Class B common stock, and the Series D, E, F, and FP preferred stock shared equally in our net losses. The holders of early exercised shares subject to repurchase and the holders of Series A, A-1, B, and C convertible preferred stock did not have a contractual obligation to share in our losses, and as a result our net losses were not allocated to these participating securities. In connection with our IPO, our Series D, E, and F preferred stock converted on a one-to-one basis into Class B common stock, and our Series FP preferred stock converted on a one-to-one basis into Class C common stock. The liquidation and dividend rights of the aforementioned preferred series are substantially identical to the rights of the common classes into which they converted. Accordingly, we have presented the Series D, E, and F preferred stock outstanding before the IPO together with the Class B common stock, and the Series FP preferred stock outstanding before the IPO together with the Class C common stock for purposes of calculating net loss per share. The prior period presentation has been adjusted to conform to our current period presentation. Also in connection with our IPO, our Series A, A-1, B, and C preferred stock converted on a one-to-one basis into Class B common stock. The shares of Class B common stock that resulted from the conversion of the Series A, A-1, B, and C preferred stock are weighted in the denominator of net loss per share for Class B common stock for the portion of the time outstanding subsequent to our IPO. Basic net loss per share is computed by dividing net loss attributable to each class of stockholders by the weighted-average number of shares of such class of stock outstanding during the period. Vested restricted stock units (“RSUs”) that have not been settled, including the vested equity award granted to our CEO (“CEO award”), have been included in the appropriate common share class used to calculate basic net loss per share. For the calculation of diluted net loss per share, net loss per share attributable to common stockholders for basic net loss per share is adjusted by the effect of dilutive securities, including awards under our equity compensation plans. Diluted net loss per share attributable to common stockholders is computed by dividing the resulting net loss attributable to common stockholders by the weighted-average number of fully diluted common shares outstanding. For the three and six months ended June 30, 2018 and 2017, our potentially dilutive shares relating to stock options, RSUs, and common stock subject to repurchase, and, for the prior year period, shares of Series A, A-1, B, and C convertible preferred stock were not included in the computation of diluted net loss per share as the effect of including these shares in the calculation would have been anti-dilutive. The numerators and denominators of the basic and diluted net loss per share computations for our common stock are calculated as follows for the three and six months ended June 30, 2018 and 2017: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands, except per share data) Class A Common Class B Common Class C Common Class A Common Class B Common Class C Common Class A Common (1) Class B Common (2) Class C Common (3) Class A Common Class B Common (2) Class C Common (3) Numerator: Net loss $ (259,320 ) $ (26,064 ) $ (67,926 ) $ (248,613 ) $ (102,730 ) $ (91,750 ) $ (536,579 ) $ (58,763 ) $ (143,753 ) $ (1,524,926 ) $ (543,768 ) $ (583,236 ) Net loss attributable to common stockholders $ (259,320 ) $ (26,064 ) $ (67,926 ) $ (248,613 ) $ (102,730 ) $ (91,750 ) $ (536,579 ) $ (58,763 ) $ (143,753 ) $ (1,524,926 ) $ (543,768 ) $ (583,236 ) Denominator: Basic shares: Weighted-average common shares - Basic 950,383 95,520 248,943 686,456 283,651 253,336 931,936 102,060 249,672 627,209 223,654 239,888 Diluted shares: Weighted-average common shares - Diluted 950,383 95,520 248,943 686,456 283,651 253,336 931,936 102,060 249,672 627,209 223,654 239,888 Net loss per share attributable to common stockholders: Basic $ (0.27 ) $ (0.27 ) $ (0.27 ) $ (0.36 ) $ (0.36 ) $ (0.36 ) $ (0.58 ) $ (0.58 ) $ (0.58 ) $ (2.43 ) $ (2.43 ) $ (2.43 ) Diluted $ (0.27 ) $ (0.27 ) $ (0.27 ) $ (0.36 ) $ (0.36 ) $ (0.36 ) $ (0.58 ) $ (0.58 ) $ (0.58 ) $ (2.43 ) $ (2.43 ) $ (2.43 ) The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented: Three and Six Months Ended June 30, 2018 2017 (in thousands) Stock options 16,963 39,496 Unvested RSUs 158,259 177,400 |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stockholders' Equity | 4. Stockholders’ Equity We maintain three share-based employee compensation plans: the 2017 Equity Incentive Plan (“2017 Plan”), the 2014 Equity Incentive Plan (“2014 Plan”), and the 2012 Equity Incentive Plan (“2012 Plan”, and collectively with the 2017 Plan and the 2014 Plan, the “Stock Plans”). In January 2017, our board of directors adopted the 2017 Plan, and in February 2017 our stockholders approved the 2017 Plan, effective on March 1, 2017, which serves as the successor to the 2014 Plan and 2012 Plan and provides for the grant of incentive stock options to employees, including employees of any parent or subsidiary, and for the grant of nonstatutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, performance cash awards, and other forms of stock awards to employees, directors, and consultants, including employees and consultants of our affiliates. The following table summarizes the restricted stock activity during the six months ended June 30, 2018: Class A Outstanding Restricted Stock Class B Outstanding Restricted Stock Weighted- Average Grant Date Fair Value per Restricted Stock (in thousands, except per share data) Unvested at December 31, 2017 156,005 7,791 $ 15.89 Granted 45,036 — $ 14.60 Vested (25,016 ) (3,941 ) $ 15.77 Forfeited (21,041 ) (575 ) $ 16.56 Unvested at June 30, 2018 154,984 3,275 $ 15.45 RSUs granted to employees before January 1, 2017 (“Pre-2017 RSUs”) included both service-based and performance conditions to vest in the underlying common stock. The performance condition related to these awards was satisfied on the effectiveness of the registration statement for our IPO, which occurred in March 2017. Total unrecognized compensation cost related to Pre-2017 RSUs was $380.0 million as of June 30, 2018 and is expected to be recognized over a weighted-average period of 2.0 years. All RSUs granted after December 31, 2016 vest on the satisfaction of only a service-based condition (“Post-2017 RSUs”). Total unrecognized compensation cost related to Post-2017 RSUs was $1.2 billion as of June 30, 2018 and is expected to be recognized over a weighted-average period of 3.8 years. The service condition for RSUs granted prior to February 2018 is generally satisfied over four years, 10% after the first year of service, 20% over the second year, 30% over the third year, and 40% over the fourth year. In limited instances, we have issued Post-2017 RSUs with vesting periods in excess of four years. The service condition for RSUs granted after February 2018 is generally satisfied in equal monthly installments over four years. Additionally, we have 30.4 million and 34.4 million of RSUs that are vested but have not yet settled as of June 30, 2018 and December 31, 2017, respectively. These RSUs are primarily related to the CEO award. The following table summarizes the stock option award activity under the Stock Plans during the six months ended June 30, 2018: Class A Number of Shares Class B Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (1) (in thousands, except per share data) Outstanding at December 31, 2017 20,807 11,790 $ 4.10 4.99 $ 343,110 Granted 3,752 — $ 14.40 — $ — Exercised (10,131 ) (8,095 ) $ 2.62 — $ — Forfeited (1,001 ) (159 ) $ 15.68 — $ — Outstanding at June 30, 2018 13,427 3,536 $ 7.42 6.56 $ 106,714 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the closing market price of our Class A common stock as of December 31, 2017 and June 30, 2018, respectively. Total unrecognized compensation cost related to stock options granted and assumed was $48.1 million as of June 30, 2018 Stock-Based Compensation Expense by Function Total stock-based compensation expense by function was as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) Cost of revenue $ 1,467 $ 2,223 $ 1,743 $ 21,931 Research and development 92,303 163,848 170,118 881,928 Sales and marketing 21,996 20,558 38,182 180,284 General and administrative 40,605 58,399 79,587 1,153,006 Total $ 156,371 $ 245,028 $ 289,630 $ 2,237,149 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets The changes in the carrying amount of goodwill for the six months ended June 30, 2018 were as follows: Goodwill (in thousands) Balance as of December 31, 2017 $ 639,882 Foreign currency translation (4,400 ) Balance as of June 30, 2018 $ 635,482 Intangible assets consisted of the following: June 30, 2018 Weighted- Average Remaining Useful Life - Years Gross Carrying Amount Accumulated Amortization Net (in thousands except years) Domain names 1.9 $ 5,414 $ 3,742 $ 1,672 Trademarks 1.9 5,772 3,386 2,386 Acquired developed technology 4.2 180,000 62,107 117,893 Customer relationships 2.3 15,573 6,040 9,533 Patents 7.4 19,710 3,997 15,713 $ 226,469 $ 79,272 $ 147,197 December 31, 2017 Weighted- Average Remaining Useful Life - Years Gross Carrying Amount Accumulated Amortization Net (in thousands except years) Domain names 2.1 $ 5,418 $ 3,210 $ 2,208 Trademarks 2.3 5,772 2,701 3,071 Acquired developed technology 4.7 180,396 45,435 134,961 Customer relationships 2.6 15,558 3,506 12,052 Patents 7.8 17,150 2,969 14,181 $ 224,294 $ 57,821 $ 166,473 Amortization of intangible assets was $10.8 million and $5.8 million for the three months ended June 30, 2018 and 2017, respectively, and $21.6 million and $11.2 million for the six months ended June 30, 2018 and 2017, respectively. As of June 30, 2018, the estimated intangible asset amortization expense for the next five years and thereafter is as follows: Estimated Amortization (in thousands) Remainder of 2018 $ 21,344 2019 38,717 2020 32,247 2021 25,185 2022 15,170 Thereafter 14,534 Total $ 147,197 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 6. Commitments and Contingencies Commitments Leases We entered into various non-cancelable lease agreements for certain of our offices with original lease periods expiring between 2018 and 2027. Certain of the arrangements have free rent periods or escalating rent payment provisions. We recognize rent expense under such arrangements on a straight-line basis. Our future minimum lease payments required under these non-cancelable operating lease obligations as of June 30, 2018, are as follows: Operating Leases (in thousands) Remainder of 2018 $ 29,010 2019 60,519 2020 60,187 2021 58,576 2022 47,482 Thereafter 145,557 Total minimum lease payments $ 401,331 Operating lease expenses for the three months ended June 30, 2018 and 2017 were $15.5 million and $11.8 million, respectively, and $31.3 million and $24.7 million for the six months ended June 30, 2018 and 2017, respectively. In 2018, we will exit various operating leases prior to the end of the contractual lease term, primarily as a result of moving to a centralized corporate office located in Santa Monica, California. As of June 30, 2018, these leases have a remaining contractual obligation of approximately $82.0 million. In the three months ended June 30, 2018, we recorded a lease exit charge of $3.9 million. The charge, recorded as general and administrative expense, reflects the present value of our remaining lease obligation on the cease use dates that occurred during the quarter, net of sublease income. We expect to incur total lease exit charges of approximately $25 million to $45 million in 2018, primarily in the third quarter, based on current exit plans. We have several lease agreements where we are deemed the owner under build-to-suit lease accounting. The fair value of the leased property and corresponding financing obligations are included in property and equipment, net and other liabilities, respectively, on our consolidated balance sheets as of June 30, 2018. Our future minimum lease payments required under non-cancelable financing lease obligations, which exclusively relate to our build-to-suit leases, as of June 30, 2018, are as follows: Financing Leases (in thousands) Remainder of 2018 $ 2,374 2019 4,796 2020 4,947 2021 5,092 2022 5,167 Thereafter 20,785 Total minimum lease payments $ 43,161 We recognize an increase in the fair value of the asset as additional building costs are incurred during the construction period and a corresponding increase in the lease financing obligation for any construction costs to be reimbursed by the landlord. As of June 30, 2018, $16.4 million of lease financing obligations are included in other liabilities on our consolidated balance sheets. Contractual Commitments We have non-cancelable contractual agreements related to the hosting of our data storage processing, storage, and other computing services. In January 2017, we entered into the Google Cloud Platform License Agreement, which was amended in September 2017, December 2017, and again in January 2018. Under the agreement, we were granted a license to access and use certain cloud services. The agreement has an initial term of five years and we are required to purchase at least $400.0 million of cloud services in each year of the agreement. For each of the first four years, up to 15% of this amount may be moved to a subsequent year. If we fail to meet the minimum purchase commitment during any year, we are required to pay the difference. In March 2016, we entered into the AWS Enterprise Agreement for the use of cloud services from Amazon Web Services, Inc. (“AWS”) which was amended in March 2016, and again in February 2017. The agreement will continue indefinitely until terminated by either party. Under the February 2017 addendum to the agreement, we committed to spend $1.0 billion between January 2017 and December 2021 on AWS services ($50.0 million in 2017, $125.0 million in 2018, $200.0 million in 2019, $275.0 million in 2020, and $350.0 million in 2021). If we fail to meet the minimum purchase commitment during any year, we are required to pay the difference. Any such payment may be applied to future use of AWS services during the addendum term, although it will not count towards meeting the future minimum purchase commitments under the addendum. The future minimum contractual commitment including commitments less than one year, as of June 30, 2018 for each of the next five years are as follows: Minimum Commitment (in thousands) Remainder of 2018 $ 309,666 2019 602,540 2020 678,805 2021 750,080 2022 33,333 Thereafter — Total minimum commitments $ 2,374,424 Contingencies We record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We also disclose material contingencies when we believe a loss is not probable but reasonably possible. Accounting for contingencies requires us to use judgment related to both the likelihood of a loss and the estimate of the amount or range of loss. Many legal and tax contingencies can take years to be resolved. Pending Matters Beginning in May 2017, we, certain of our officers and directors, and the underwriters for our IPO were named as defendants in securities class actions purportedly brought on behalf of purchasers of our Class A common stock, alleging violation of securities laws in connection with our IPO. Management believes these lawsuits are without merit and intend to vigorously defend them. Based on the preliminary nature of the proceedings in this case, the outcome of this matter remains uncertain. On April 3, 2018, BlackBerry Limited filed a lawsuit against us alleging that we infringe six of its patents. We are currently investigating BlackBerry’s allegations, and management believes we have meritorious defenses. Based on the preliminary nature of the proceedings, the outcome of this matter remains uncertain. In 2017, Vaporstream, Inc. filed a lawsuit against us alleging that we infringe a number of its patents. We filed a motion to dismiss, which the court denied without prejudice to re-file after further factual development. Later in 2017, we filed a motion for summary judgment. On February 27, 2018, the court issued an order denying our motion for summary judgment. On June 13, 2018, the court stayed the lawsuit pending the outcome of several challenges to the validity of the patents, filed by us at the U.S. Patent Office. While management believes we have meritorious defenses to Vaporstream's claims, the outcome of this matter remains uncertain. The outcomes of our legal proceedings are inherently unpredictable, subject to significant uncertainties, and could be material to our financial condition, results of operations, and cash flows for a particular period. For the pending matters described above, it is not possible to estimate the reasonably possible loss or range of loss. We are subject to various other legal proceedings and claims in the ordinary course of business, including certain patent, trademark, privacy, and employment matters. Although occasional adverse decisions or settlements may occur, we do not believe that the final disposition of any of our other pending matters will seriously harm our business, financial condition, results of operations, and cash flows. Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, investors, directors, officers, employees, and other parties with respect to certain matters. Indemnification may include losses from our breach of such agreements, services we provide, or third party intellectual property infringement claims. These indemnifications may survive termination of the underlying agreement and the maximum potential amount of future indemnification payments may not be subject to a cap. We have not incurred material costs to defend lawsuits or settle claims related to these indemnifications as of June 30, 2018. We believe the fair value of these liabilities is immaterial and accordingly have no liabilities recorded for these agreements at June 30, 2018. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 7. Fair Value Measurements We classify our marketable securities within Level 1 because we use quoted market prices to determine their fair value. The following table sets forth our financial assets as of June 30, 2018 and December 31, 2017 that are measured at fair value on a recurring basis during the period: Fair Value June 30, 2018 December 31, 2017 (in thousands) Cash and cash equivalents Cash $ 360,035 $ 267,715 U.S. government securities 14,985 25,861 U.S. government agency securities 18,163 40,487 Total cash and cash equivalents $ 393,183 $ 334,063 Marketable securities U.S. government securities $ 950,807 $ 1,350,581 U.S. government agency securities 226,013 358,395 Total marketable securities $ 1,176,820 $ 1,708,976 The amortized cost of U.S. government securities with maturities less than one year was $951.2 million and $1.4 billion as of June 30, 2018 and December 31, 2017, respectively. The amortized cost of U.S. government agency securities with maturities of less than a year was $226.1 million and $358.6 million as of June 30, 2018 and December 31, 2017, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Our tax provision for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items arising in that quarter. Our effective tax rate differs from the U.S. statutory tax rate primarily due to valuation allowances on our deferred tax assets as it is more likely than not that some or all of our deferred tax assets will not be realized. Income tax expense was $1.1 million and $2.7 million for the three and six months ended June 30, 2018, respectively, compared to an expense of $0.2 million and a benefit of $2.8 million for the three and six months ended June 30, 2017, respectively. The income tax benefit for the six months ended June 30, 2017 was primarily from the partial release of a valuation allowance against our net deferred tax assets that was not in the six-months ended June 30, 2018. The valuation allowance release was the result of net deferred tax liabilities originating from acquisitions that were an available source of income to realize a portion of our deferred tax assets. The Tax Cuts and Jobs Act introduced the global intangible low-taxed income (“GILTI”) provisions that impose a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. We recognize the tax on GILTI as an expense in the period the tax is incurred. We have not provided deferred taxes related to temporary differences that on their reversal will affect the amount of income subject to GILTI in the period. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income Loss [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 9. Accumulated Other Comprehensive Income (Loss) The table below presents the changes in accumulated other comprehensive income (loss) (“AOCI”) by component and the reclassifications out of AOCI: Changes in Accumulated Other Comprehensive Income (Loss) by Component Marketable Securities Foreign Currency Translation Total (in thousands) Balance at December 31, 2017 $ (1,078 ) $ 15,235 $ 14,157 OCI before reclassifications (1) 494 (6,443 ) (5,949 ) Amounts reclassified from AOCI (2) (1 ) — (1 ) Net current period OCI 493 (6,443 ) (5,950 ) Balance at June 30, 2018 $ (585 ) $ 8,792 $ 8,207 (1) Net of tax expense of $0.1 million for gains / losses on marketable securities. (2) Realized gains and losses on marketable securities are reclassified from AOCI into other income (expense), net in the consolidated statements of operations. |
Property and Equipment, Net
Property and Equipment, Net | 6 Months Ended |
Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net | 10. Property and Equipment, Net The following table lists property and equipment, net by geographic area: As of June 30, 2018 As of December 31, 2017 (in thousands) Property and equipment, net: United States $ 188,913 $ 146,862 Rest of world (1) 25,317 19,900 Total property and equipment, net $ 214,230 $ 166,762 (1) No individual country exceeded 10% of our total property and equipment, net for any period presented. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Our consolidated financial statements include the accounts of Snap Inc. and our wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Our fiscal year ends on December 31. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2017, as filed with the SEC on February 22, 2018 (the “Annual Report”). In our opinion, the unaudited interim consolidated financial statements include all adjustments of a normal recurring nature necessary for the fair presentation of our financial position, results of operations, and cash flows. The results of operations for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018. Other than described below, there have been no changes to our significant accounting policies described in our Annual Report that have had a material impact on our consolidated financial statements and related notes. |
Use of Estimates | Use of Estimates The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the consolidated financial statements. Management’s estimates are based on historical information available as of the date of the consolidated financial statements and various other assumptions that we believe are reasonable under the circumstances. Actual results could differ from those estimates. Key estimates relate primarily to determining the fair value of assets and liabilities assumed in business combinations, evaluation of contingencies, uncertain tax positions, excess inventory reserves, and the fair value of stock-based awards. On an ongoing basis, management evaluates our estimates compared to historical experience and trends, which form the basis for making judgments about the carrying value of assets and liabilities. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2017, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standards Update (“ASU”) 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In January 2016, the FASB issued ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). Revenue Recognition, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net). In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Disaggregation of Revenue by Source | The following table presents our revenue disaggregated by revenue source: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) Snap-sold (1) $ 254,084 $ 164,957 $ 476,619 $ 293,926 Partner-sold 6,378 11,320 13,005 23,580 Advertising revenue 260,462 176,277 489,624 317,506 Other revenue 1,801 5,394 3,305 13,813 Total revenue $ 262,263 $ 181,671 $ 492,929 $ 331,319 (1) Snap-sold revenue includes advertisements displayed on both our content and content contributed by our users and partners, Sponsored Creative Tools, and measurement services. |
Disaggregation of Revenue by Geography | The following table represents our revenue disaggregated by geography based on the billing address of the advertising customer: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) Revenue: North America (1) (2) $ 171,619 $ 162,461 $ 338,558 $ 288,747 Europe (3) 40,506 12,021 71,331 29,036 Rest of world 50,138 7,189 83,040 13,536 Total revenue $ 262,263 $ 181,671 $ 492,929 $ 331,319 (1) North America includes Mexico and the Caribbean. (2) United States revenue was $165.9 million and $145.7 million for the three months ended June 30, 2018 and 2017, respectively, and $326.9 million and $269.4 million for the six months ended June 30, 2018 and 2017, respectively. (3) Europe includes Russia and Turkey. |
Net Loss per Share (Tables)
Net Loss per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Numerators and Denominators of Basic and Diluted Net Loss per Share Computations for Common Stock | The numerators and denominators of the basic and diluted net loss per share computations for our common stock are calculated as follows for the three and six months ended June 30, 2018 and 2017: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands, except per share data) Class A Common Class B Common Class C Common Class A Common Class B Common Class C Common Class A Common (1) Class B Common (2) Class C Common (3) Class A Common Class B Common (2) Class C Common (3) Numerator: Net loss $ (259,320 ) $ (26,064 ) $ (67,926 ) $ (248,613 ) $ (102,730 ) $ (91,750 ) $ (536,579 ) $ (58,763 ) $ (143,753 ) $ (1,524,926 ) $ (543,768 ) $ (583,236 ) Net loss attributable to common stockholders $ (259,320 ) $ (26,064 ) $ (67,926 ) $ (248,613 ) $ (102,730 ) $ (91,750 ) $ (536,579 ) $ (58,763 ) $ (143,753 ) $ (1,524,926 ) $ (543,768 ) $ (583,236 ) Denominator: Basic shares: Weighted-average common shares - Basic 950,383 95,520 248,943 686,456 283,651 253,336 931,936 102,060 249,672 627,209 223,654 239,888 Diluted shares: Weighted-average common shares - Diluted 950,383 95,520 248,943 686,456 283,651 253,336 931,936 102,060 249,672 627,209 223,654 239,888 Net loss per share attributable to common stockholders: Basic $ (0.27 ) $ (0.27 ) $ (0.27 ) $ (0.36 ) $ (0.36 ) $ (0.36 ) $ (0.58 ) $ (0.58 ) $ (0.58 ) $ (2.43 ) $ (2.43 ) $ (2.43 ) Diluted $ (0.27 ) $ (0.27 ) $ (0.27 ) $ (0.36 ) $ (0.36 ) $ (0.36 ) $ (0.58 ) $ (0.58 ) $ (0.58 ) $ (2.43 ) $ (2.43 ) $ (2.43 ) |
Schedule of Potentially Dilutive Shares Excluded from Calculation of Diluted Net Loss per Share | The following potentially dilutive shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented: Three and Six Months Ended June 30, 2018 2017 (in thousands) Stock options 16,963 39,496 Unvested RSUs 158,259 177,400 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Restricted Stock Activity | The following table summarizes the restricted stock activity during the six months ended June 30, 2018: Class A Outstanding Restricted Stock Class B Outstanding Restricted Stock Weighted- Average Grant Date Fair Value per Restricted Stock (in thousands, except per share data) Unvested at December 31, 2017 156,005 7,791 $ 15.89 Granted 45,036 — $ 14.60 Vested (25,016 ) (3,941 ) $ 15.77 Forfeited (21,041 ) (575 ) $ 16.56 Unvested at June 30, 2018 154,984 3,275 $ 15.45 |
Summary of Stock Option Award Activity | The following table summarizes the stock option award activity under the Stock Plans during the six months ended June 30, 2018: Class A Number of Shares Class B Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (1) (in thousands, except per share data) Outstanding at December 31, 2017 20,807 11,790 $ 4.10 4.99 $ 343,110 Granted 3,752 — $ 14.40 — $ — Exercised (10,131 ) (8,095 ) $ 2.62 — $ — Forfeited (1,001 ) (159 ) $ 15.68 — $ — Outstanding at June 30, 2018 13,427 3,536 $ 7.42 6.56 $ 106,714 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the closing market price of our Class A common stock as of December 31, 2017 and June 30, 2018, respectively. |
Summary of Total Stock-based Compensation Expense | Total stock-based compensation expense by function was as follows: Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 (in thousands) Cost of revenue $ 1,467 $ 2,223 $ 1,743 $ 21,931 Research and development 92,303 163,848 170,118 881,928 Sales and marketing 21,996 20,558 38,182 180,284 General and administrative 40,605 58,399 79,587 1,153,006 Total $ 156,371 $ 245,028 $ 289,630 $ 2,237,149 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the six months ended June 30, 2018 were as follows: Goodwill (in thousands) Balance as of December 31, 2017 $ 639,882 Foreign currency translation (4,400 ) Balance as of June 30, 2018 $ 635,482 |
Schedule of Intangible Assets | Intangible assets consisted of the following: June 30, 2018 Weighted- Average Remaining Useful Life - Years Gross Carrying Amount Accumulated Amortization Net (in thousands except years) Domain names 1.9 $ 5,414 $ 3,742 $ 1,672 Trademarks 1.9 5,772 3,386 2,386 Acquired developed technology 4.2 180,000 62,107 117,893 Customer relationships 2.3 15,573 6,040 9,533 Patents 7.4 19,710 3,997 15,713 $ 226,469 $ 79,272 $ 147,197 December 31, 2017 Weighted- Average Remaining Useful Life - Years Gross Carrying Amount Accumulated Amortization Net (in thousands except years) Domain names 2.1 $ 5,418 $ 3,210 $ 2,208 Trademarks 2.3 5,772 2,701 3,071 Acquired developed technology 4.7 180,396 45,435 134,961 Customer relationships 2.6 15,558 3,506 12,052 Patents 7.8 17,150 2,969 14,181 $ 224,294 $ 57,821 $ 166,473 |
Schedule of Estimated Intangible Asset Amortization Expense | As of June 30, 2018, the estimated intangible asset amortization expense for the next five years and thereafter is as follows: Estimated Amortization (in thousands) Remainder of 2018 $ 21,344 2019 38,717 2020 32,247 2021 25,185 2022 15,170 Thereafter 14,534 Total $ 147,197 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Operating Leases | Our future minimum lease payments required under these non-cancelable operating lease obligations as of June 30, 2018, are as follows: Operating Leases (in thousands) Remainder of 2018 $ 29,010 2019 60,519 2020 60,187 2021 58,576 2022 47,482 Thereafter 145,557 Total minimum lease payments $ 401,331 |
Schedule of Future Minimum Payments for Financing Leases | Our future minimum lease payments required under non-cancelable financing lease obligations, which exclusively relate to our build-to-suit leases, as of June 30, 2018, are as follows: Financing Leases (in thousands) Remainder of 2018 $ 2,374 2019 4,796 2020 4,947 2021 5,092 2022 5,167 Thereafter 20,785 Total minimum lease payments $ 43,161 |
Schedule of Future Minimum Contractual Commitment | The future minimum contractual commitment including commitments less than one year, as of June 30, 2018 for each of the next five years are as follows: Minimum Commitment (in thousands) Remainder of 2018 $ 309,666 2019 602,540 2020 678,805 2021 750,080 2022 33,333 Thereafter — Total minimum commitments $ 2,374,424 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Measured at Fair Value on Recurring Basis | The following table sets forth our financial assets as of June 30, 2018 and December 31, 2017 that are measured at fair value on a recurring basis during the period: Fair Value June 30, 2018 December 31, 2017 (in thousands) Cash and cash equivalents Cash $ 360,035 $ 267,715 U.S. government securities 14,985 25,861 U.S. government agency securities 18,163 40,487 Total cash and cash equivalents $ 393,183 $ 334,063 Marketable securities U.S. government securities $ 950,807 $ 1,350,581 U.S. government agency securities 226,013 358,395 Total marketable securities $ 1,176,820 $ 1,708,976 |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income Loss [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The table below presents the changes in accumulated other comprehensive income (loss) (“AOCI”) by component and the reclassifications out of AOCI: Changes in Accumulated Other Comprehensive Income (Loss) by Component Marketable Securities Foreign Currency Translation Total (in thousands) Balance at December 31, 2017 $ (1,078 ) $ 15,235 $ 14,157 OCI before reclassifications (1) 494 (6,443 ) (5,949 ) Amounts reclassified from AOCI (2) (1 ) — (1 ) Net current period OCI 493 (6,443 ) (5,950 ) Balance at June 30, 2018 $ (585 ) $ 8,792 $ 8,207 (1) Net of tax expense of $0.1 million for gains / losses on marketable securities. (2) Realized gains and losses on marketable securities are reclassified from AOCI into other income (expense), net in the consolidated statements of operations. |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment, Net by Geographic Area | The following table lists property and equipment, net by geographic area: As of June 30, 2018 As of December 31, 2017 (in thousands) Property and equipment, net: United States $ 188,913 $ 146,862 Rest of world (1) 25,317 19,900 Total property and equipment, net $ 214,230 $ 166,762 (1) No individual country exceeded 10% of our total property and equipment, net for any period presented. |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue by Source (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 262,263 | $ 181,671 | $ 492,929 | $ 331,319 |
Snap-Sold Advertising | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 254,084 | 164,957 | 476,619 | 293,926 |
Partner-Sold Advertising | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 6,378 | 11,320 | 13,005 | 23,580 |
Advertising | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 260,462 | 176,277 | 489,624 | 317,506 |
Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 1,801 | $ 5,394 | $ 3,305 | $ 13,813 |
Revenue - Disaggregation of R27
Revenue - Disaggregation of Revenue by Geography (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 262,263 | $ 181,671 | $ 492,929 | $ 331,319 |
North America | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 171,619 | 162,461 | 338,558 | 288,747 |
Europe | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | 40,506 | 12,021 | 71,331 | 29,036 |
Rest of World | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 50,138 | $ 7,189 | $ 83,040 | $ 13,536 |
Revenue - Disaggregation of R28
Revenue - Disaggregation of Revenue by Geography (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 262,263 | $ 181,671 | $ 492,929 | $ 331,319 |
United States | ||||
Disaggregation Of Revenue [Line Items] | ||||
Total revenue | $ 165,900 | $ 145,700 | $ 326,900 | $ 269,400 |
Net Loss per Share - Additional
Net Loss per Share - Additional Information (Details) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017USD ($)$ / sharesshares | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Earnings Per Share [Line Items] | |||||
Net proceeds from initial public offering | $ 0 | $ 0 | $ 0 | $ 2,657,797 | |
IPO | Class A Common Stock | |||||
Earnings Per Share [Line Items] | |||||
Common stock, shares issued and sold | shares | 160.3 | ||||
Initial public offering price per share | $ / shares | $ 17 | ||||
Net proceeds from initial public offering | $ 2,600,000 | ||||
Underwriting discounts and commissions | 68,100 | ||||
Other stock offering expenses | $ 14,700 | ||||
Convertible Preferred Stock Other Than Series FP Preferred Stock | IPO | Class B Common Stock | |||||
Earnings Per Share [Line Items] | |||||
Conversion of convertible preferred stock into common stock | shares | 246.8 | ||||
Series D, E, and F Preferred Stock | IPO | Class B Common Stock | |||||
Earnings Per Share [Line Items] | |||||
Conversion ratio | 1 | ||||
Series FP Preferred Stock | IPO | Class C Common Stock | |||||
Earnings Per Share [Line Items] | |||||
Conversion of convertible preferred stock into common stock | shares | 215.9 | ||||
Conversion ratio | 1 | ||||
Series A, A-1, B, and C Preferred Stock | IPO | Class B Common Stock | |||||
Earnings Per Share [Line Items] | |||||
Conversion ratio | 1 |
Net Loss per Share - Numerators
Net Loss per Share - Numerators and Denominators of Basic and Diluted Net Loss per Share Computations for Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||||
Net loss | $ (353,310) | $ (443,093) | $ (739,095) | $ (2,651,930) |
Net loss per share attributable to common stockholders: | ||||
Basic | $ (0.27) | $ (0.36) | $ (0.58) | $ (2.43) |
Diluted | $ (0.27) | $ (0.36) | $ (0.58) | $ (2.43) |
Class A Common Stock | ||||
Numerator: | ||||
Net loss | $ (259,320) | $ (248,613) | $ (536,579) | $ (1,524,926) |
Net loss attributable to common stockholders | $ (259,320) | $ (248,613) | $ (536,579) | $ (1,524,926) |
Basic shares: | ||||
Weighted-average common shares - Basic | 950,383 | 686,456 | 931,936 | 627,209 |
Diluted shares: | ||||
Weighted-average common shares - Diluted | 950,383 | 686,456 | 931,936 | 627,209 |
Net loss per share attributable to common stockholders: | ||||
Basic | $ (0.27) | $ (0.36) | $ (0.58) | $ (2.43) |
Diluted | $ (0.27) | $ (0.36) | $ (0.58) | $ (2.43) |
Class B Common Stock | ||||
Numerator: | ||||
Net loss | $ (26,064) | $ (102,730) | $ (58,763) | $ (543,768) |
Net loss attributable to common stockholders | $ (26,064) | $ (102,730) | $ (58,763) | $ (543,768) |
Basic shares: | ||||
Weighted-average common shares - Basic | 95,520 | 283,651 | 102,060 | 223,654 |
Diluted shares: | ||||
Weighted-average common shares - Diluted | 95,520 | 283,651 | 102,060 | 223,654 |
Net loss per share attributable to common stockholders: | ||||
Basic | $ (0.27) | $ (0.36) | $ (0.58) | $ (2.43) |
Diluted | $ (0.27) | $ (0.36) | $ (0.58) | $ (2.43) |
Class C Common Stock | ||||
Numerator: | ||||
Net loss | $ (67,926) | $ (91,750) | $ (143,753) | $ (583,236) |
Net loss attributable to common stockholders | $ (67,926) | $ (91,750) | $ (143,753) | $ (583,236) |
Basic shares: | ||||
Weighted-average common shares - Basic | 248,943 | 253,336 | 249,672 | 239,888 |
Diluted shares: | ||||
Weighted-average common shares - Diluted | 248,943 | 253,336 | 249,672 | 239,888 |
Net loss per share attributable to common stockholders: | ||||
Basic | $ (0.27) | $ (0.36) | $ (0.58) | $ (2.43) |
Diluted | $ (0.27) | $ (0.36) | $ (0.58) | $ (2.43) |
Net Loss per Share - Schedule o
Net Loss per Share - Schedule of Potentially Dilutive Shares Excluded from Calculation of Diluted Net Loss per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Unvested RSUs | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from calculation of diluted net loss per share | 158,259 | 177,400 | 158,259 | 177,400 |
Stock Options | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from calculation of diluted net loss per share | 16,963 | 39,496 | 16,963 | 39,496 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) shares in Millions, $ in Millions | 6 Months Ended | |
Jun. 30, 2018USD ($)Planshares | Dec. 31, 2017shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of share-based employee compensation plans | Plan | 3 | |
RSUs vested but not yet settled | shares | 30.4 | 34.4 |
Pre-2017 RSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 380 | |
Weighted average recognition period | 2 years | |
Post-2017 RSUs | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 1.2 | |
Weighted average recognition period | 3 years 9 months 18 days | |
Service condition satisfied, years | 4 years | |
Post-2017 RSUs | First Year | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Award vesting percentage | 10.00% | |
Post-2017 RSUs | Second Year | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Award vesting percentage | 20.00% | |
Post-2017 RSUs | Third Year | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Award vesting percentage | 30.00% | |
Post-2017 RSUs | Fourth Year | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Award vesting percentage | 40.00% | |
Stock Options | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted average recognition period | 2 years 10 months 24 days | |
Unrecognized compensation cost related to stock options granted and assumed | $ 48.1 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Restricted Stock Activity (Details) - Restricted Stock shares in Thousands | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Weighted-Average Grant Date Fair Value per Restricted Stock | |
Weighted-Average Grant Date Fair Value per Restricted Stock, Unvested Beginning Balance | $ / shares | $ 15.89 |
Weighted-Average Grant Date Fair Value per Restricted Stock, Granted | $ / shares | 14.60 |
Weighted-Average Grant Date Fair Value per Restricted Stock, Vested | $ / shares | 15.77 |
Weighted-Average Grant Date Fair Value per Restricted Stock, Forfeited | $ / shares | 16.56 |
Weighted-Average Grant Date Fair Value per Restricted Stock, Unvested Ending Balance | $ / shares | $ 15.45 |
Class A Common Stock | |
Outstanding Restricted Stock | |
Outstanding Restricted Stock, Unvested Beginning Balance | 156,005 |
Outstanding Restricted Stock, Granted | 45,036 |
Outstanding Restricted Stock, Vested | (25,016) |
Outstanding Restricted Stock, Forfeited | (21,041) |
Outstanding Restricted Stock, Unvested Ending Balance | 154,984 |
Class B Common Stock | |
Outstanding Restricted Stock | |
Outstanding Restricted Stock, Unvested Beginning Balance | 7,791 |
Outstanding Restricted Stock, Granted | 0 |
Outstanding Restricted Stock, Vested | (3,941) |
Outstanding Restricted Stock, Forfeited | (575) |
Outstanding Restricted Stock, Unvested Ending Balance | 3,275 |
Stockholders' Equity - Summar34
Stockholders' Equity - Summary of Stock Option Award Activity (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Weighted-Average Exercise Price | ||
Weighted Average Exercise Price, Beginning balance | $ 4.10 | |
Weighted Average Exercise Price, Granted | 14.40 | |
Weighted Average Exercise Price, Exercised | 2.62 | |
Weighted Average Exercise Price, Forfeited | 15.68 | |
Weighted Average Exercise Price, Ending balance | $ 7.42 | $ 4.10 |
Weighted Average Remaining Contractual Term | ||
Weighted Average Remaining Contractual Term (in years) | 6 years 6 months 21 days | 4 years 11 months 26 days |
Aggregate Intrinsic Value | ||
Aggregate Intrinsic Value, Outstanding | $ 106,714 | $ 343,110 |
Class A Common Stock | ||
Number of Shares | ||
Weighted Average Exercise Price, Beginning balance | 20,807 | |
Number of Shares, Granted | 3,752 | |
Number of Shares, Exercised | (10,131) | |
Number of Shares, Forfeited | (1,001) | |
Weighted Average Exercise Price, Ending balance | 13,427 | 20,807 |
Class B Common Stock | ||
Number of Shares | ||
Weighted Average Exercise Price, Beginning balance | 11,790 | |
Number of Shares, Exercised | (8,095) | |
Number of Shares, Forfeited | (159) | |
Weighted Average Exercise Price, Ending balance | 3,536 | 11,790 |
Stockholders' Equity - Summar35
Stockholders' Equity - Summary of Total Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total | $ 156,371 | $ 245,028 | $ 289,630 | $ 2,237,149 |
Cost of Revenue | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total | 1,467 | 2,223 | 1,743 | 21,931 |
Research and Development | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total | 92,303 | 163,848 | 170,118 | 881,928 |
Sales and Marketing | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total | 21,996 | 20,558 | 38,182 | 180,284 |
General and Administrative | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Total | $ 40,605 | $ 58,399 | $ 79,587 | $ 1,153,006 |
Goodwill and Intangible Asset36
Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill, beginning balance | $ 639,882 |
Foreign currency translation | (4,400) |
Goodwill, ending balance | $ 635,482 |
Goodwill and Intangible Asset37
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 226,469 | $ 224,294 |
Accumulated Amortization | 79,272 | 57,821 |
Net | $ 147,197 | $ 166,473 |
Domain Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Useful Life - Years | 1 year 10 months 24 days | 2 years 1 month 6 days |
Gross Carrying Amount | $ 5,414 | $ 5,418 |
Accumulated Amortization | 3,742 | 3,210 |
Net | $ 1,672 | $ 2,208 |
Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Useful Life - Years | 1 year 10 months 24 days | 2 years 3 months 18 days |
Gross Carrying Amount | $ 5,772 | $ 5,772 |
Accumulated Amortization | 3,386 | 2,701 |
Net | $ 2,386 | $ 3,071 |
Acquired Developed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Useful Life - Years | 4 years 2 months 12 days | 4 years 8 months 12 days |
Gross Carrying Amount | $ 180,000 | $ 180,396 |
Accumulated Amortization | 62,107 | 45,435 |
Net | $ 117,893 | $ 134,961 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Useful Life - Years | 2 years 3 months 18 days | 2 years 7 months 6 days |
Gross Carrying Amount | $ 15,573 | $ 15,558 |
Accumulated Amortization | 6,040 | 3,506 |
Net | $ 9,533 | $ 12,052 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Remaining Useful Life - Years | 7 years 4 months 24 days | 7 years 9 months 18 days |
Gross Carrying Amount | $ 19,710 | $ 17,150 |
Accumulated Amortization | 3,997 | 2,969 |
Net | $ 15,713 | $ 14,181 |
Goodwill and Intangible Asset38
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||
Amortization of intangible assets | $ 10.8 | $ 5.8 | $ 21.6 | $ 11.2 |
Goodwill and Intangible Asset39
Goodwill and Intangible Assets - Schedule of Estimated Intangible Asset Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Finite Lived Intangible Assets Future Amortization Expense Current And Five Succeeding Fiscal Years [Abstract] | ||
Remainder of 2018 | $ 21,344 | |
2,019 | 38,717 | |
2,020 | 32,247 | |
2,021 | 25,185 | |
2,022 | 15,170 | |
Thereafter | 14,534 | |
Net | $ 147,197 | $ 166,473 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Operating Leases (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remainder of 2018 | $ 29,010 |
2,019 | 60,519 |
2,020 | 60,187 |
2,021 | 58,576 |
2,022 | 47,482 |
Thereafter | 145,557 |
Total minimum lease payments | $ 401,331 |
Commitments and Contingencies41
Commitments and Contingencies - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jan. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2018 | Feb. 28, 2017 | |
Loss Contingencies [Line Items] | |||||||
Operating lease expense/charge | $ 15,500,000 | $ 11,800,000 | $ 31,300,000 | $ 24,700,000 | |||
Operating leases, remaining contractual obligation | 82,000,000 | 82,000,000 | |||||
Lease financing obligations included in other liabilities | 16,400,000 | 16,400,000 | |||||
General and Administrative | |||||||
Loss Contingencies [Line Items] | |||||||
Operating lease expense/charge | 3,900,000 | ||||||
Indemnification Agreement | |||||||
Loss Contingencies [Line Items] | |||||||
Liabilities recorded | $ 0 | $ 0 | |||||
Maximum | Scenario, Forecast | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated total lease exit charges based on current exit plans | $ 45,000,000 | ||||||
Minimum [Member] | Scenario, Forecast | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated total lease exit charges based on current exit plans | $ 25,000,000 | ||||||
Google Cloud Platform License Agreement | |||||||
Loss Contingencies [Line Items] | |||||||
Purchase commitment, description | The agreement has an initial term of five years and we are required to purchase at least $400.0 million of cloud services in each year of the agreement. For each of the first four years, up to 15% of this amount may be moved to a subsequent year. If we fail to meet the minimum purchase commitment during any year, we are required to pay the difference. | ||||||
Initial term of agreement | 5 years | ||||||
Minimum amount of services to be purchased in each year | $ 400,000,000 | ||||||
Initial period required to purchase minimum amount of services | 4 years | ||||||
Google Cloud Platform License Agreement | Maximum | |||||||
Loss Contingencies [Line Items] | |||||||
Purchase commitment, percentage of minimum purchase requirement that can be moved to subsequent year | 15.00% | ||||||
AWS Enterprise Agreement, Cloud Services | |||||||
Loss Contingencies [Line Items] | |||||||
Purchase commitment, description | In March 2016, we entered into the AWS Enterprise Agreement for the use of cloud services from Amazon Web Services, Inc. (“AWS”) which was amended in March 2016, and again in February 2017. The agreement will continue indefinitely until terminated by either party. Under the February 2017 addendum to the agreement, we committed to spend $1.0 billion between January 2017 and December 2021 on AWS services ($50.0 million in 2017, $125.0 million in 2018, $200.0 million in 2019, $275.0 million in 2020, and $350.0 million in 2021). If we fail to meet the minimum purchase commitment during any year, we are required to pay the difference. Any such payment may be applied to future use of AWS services during the addendum term, although it will not count towards meeting the future minimum purchase commitments under the addendum. | ||||||
Minimum purchase commitment to spend between January 2017 and December 2021 | $ 1,000,000,000 | ||||||
Minimum purchase commitment, due in 2017 | 50,000,000 | ||||||
Minimum purchase commitment, due in 2018 | 125,000,000 | ||||||
Minimum purchase commitment, due in 2019 | 200,000,000 | ||||||
Minimum purchase commitment, due in 2020 | 275,000,000 | ||||||
Minimum purchase commitment, due in 2021 | $ 350,000,000 |
Commitments and Contingencies42
Commitments and Contingencies - Schedule of Future Minimum Lease Payments for Financing Leases (Details) - Build-to-suit Leases $ in Thousands | Jun. 30, 2018USD ($) |
Commitments And Contingencies Disclosure [Line Items] | |
Remainder of 2018 | $ 2,374 |
2,019 | 4,796 |
2,020 | 4,947 |
2,021 | 5,092 |
2,022 | 5,167 |
Thereafter | 20,785 |
Total minimum lease payments | $ 43,161 |
Commitments and Contingencies43
Commitments and Contingencies - Schedule of Future Minimum Contractual Commitment (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remainder of 2018 | $ 309,666 |
2,019 | 602,540 |
2,020 | 678,805 |
2,021 | 750,080 |
2,022 | 33,333 |
Thereafter | 0 |
Total minimum commitments | $ 2,374,424 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Marketable securities | $ 1,176,820 | $ 1,708,976 |
Fair Value, Measurements, Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 393,183 | 334,063 |
Marketable securities | 1,176,820 | 1,708,976 |
Fair Value, Measurements, Recurring | Cash | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 360,035 | 267,715 |
Fair Value, Measurements, Recurring | U.S. Government Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 14,985 | 25,861 |
Marketable securities | 950,807 | 1,350,581 |
Fair Value, Measurements, Recurring | U.S. Government Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 18,163 | 40,487 |
Marketable securities | $ 226,013 | $ 358,395 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Dec. 31, 2017 |
U.S. Government Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized cost with maturities less than one year | $ 951.2 | $ 1,400 |
U.S. Government Agency Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Amortized cost with maturities less than one year | $ 226.1 | $ 358.6 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Income tax benefit (expense) | $ (1,077) | $ (212) | $ (2,655) | $ 2,802 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Income (Loss) - Schedules of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance, beginning of period | $ 2,992,327 | |||
Total other comprehensive income (loss), net of tax | $ (12,756) | $ 5,225 | (5,950) | $ 5,647 |
Balance, end of period | 2,584,068 | 2,584,068 | ||
Marketable Securities | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance, beginning of period | (1,078) | |||
OCI before reclassifications | 494 | |||
Amounts reclassified from AOCI | (1) | |||
Total other comprehensive income (loss), net of tax | 493 | |||
Balance, end of period | (585) | (585) | ||
Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance, beginning of period | 15,235 | |||
OCI before reclassifications | (6,443) | |||
Total other comprehensive income (loss), net of tax | (6,443) | |||
Balance, end of period | 8,792 | 8,792 | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance, beginning of period | 14,157 | |||
OCI before reclassifications | (5,949) | |||
Amounts reclassified from AOCI | (1) | |||
Total other comprehensive income (loss), net of tax | (5,950) | |||
Balance, end of period | $ 8,207 | $ 8,207 |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Marketable Securities | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Tax expense for gains / losses on marketable securities | $ 0.1 |
Property and Equipment, Net - P
Property and Equipment, Net - Property and Equipment, Net by Geographic Area (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Property and equipment, net: | ||
Total property and equipment, net | $ 214,230 | $ 166,762 |
United States | ||
Property and equipment, net: | ||
Total property and equipment, net | 188,913 | 146,862 |
Rest of World | ||
Property and equipment, net: | ||
Total property and equipment, net | $ 25,317 | $ 19,900 |
Property and Equipment, Net -50
Property and Equipment, Net - Property and Equipment, Net by Geographic Area (Parenthetical) (Details) - Country | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Geographic Concentrations | Property and Equipment Net | Rest of World | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Number of individual country exceeded 10% of total property and equipment | 0 | 0 |