Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 24, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-38034 | |
Entity Registrant Name | Alteryx, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-0673106 | |
Entity Address, Address Line One | 3345 Michelson Drive, | |
Entity Address, Address Line Two | Suite 400, | |
Entity Address, City or Town | Irvine, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92612 | |
City Area Code | 888 | |
Local Phone Number | 836-4274 | |
Title of 12(b) Security | Class A Common Stock, $0.0001 par value per share | |
Trading Symbol | AYX | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001689923 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 51,819,830 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 13,256,299 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 103,397 | $ 62,589 | $ 261,460 | $ 164,420 |
Cost of revenue | 9,645 | 5,810 | 26,940 | 16,083 |
Gross profit | 93,752 | 56,779 | 234,520 | 148,337 |
Operating expenses: | ||||
Research and development | 17,755 | 10,531 | 48,208 | 31,480 |
Sales and marketing | 43,779 | 24,934 | 130,414 | 74,552 |
General and administrative | 20,282 | 11,920 | 56,652 | 33,653 |
Total operating expenses | 81,816 | 47,385 | 235,274 | 139,685 |
Income (loss) from operations | 11,936 | 9,394 | (754) | 8,652 |
Interest expense | (6,477) | (2,971) | (12,561) | (4,371) |
Other income, net | 145 | 1,755 | 3,821 | 1,691 |
Loss on induced conversion and debt extinguishment | (20,507) | 0 | (20,507) | 0 |
Income (loss) before benefit of income taxes | (14,903) | 8,178 | (30,001) | 5,972 |
Benefit of income taxes | (8,663) | (2,643) | (26,456) | (5,507) |
Net income (loss) | $ (6,240) | $ 10,821 | $ (3,545) | $ 11,479 |
Net income (loss) per share attributable to common stockholders, basic (in dollars per share) | $ (0.10) | $ 0.18 | $ (0.06) | $ 0.19 |
Net income (loss) per share attributable to common stockholders, diluted (in dollars per share) | $ (0.10) | $ 0.17 | $ (0.06) | $ 0.18 |
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders, basic | 63,966 | 61,103 | 62,842 | 60,618 |
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders, diluted | 63,966 | 65,559 | 62,842 | 64,301 |
Other comprehensive income (loss), net of tax: | ||||
Net unrealized holding income (loss) on investments, net of tax | $ (2) | $ (70) | $ 912 | $ (192) |
Foreign currency translation adjustments | (133) | 15 | 49 | (53) |
Other comprehensive income (loss), net of tax | (135) | (55) | 961 | (245) |
Total comprehensive income (loss) | $ (6,375) | $ 10,766 | $ (2,584) | $ 11,234 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 642,450 | $ 89,974 |
Short-term investments | 231,976 | 239,718 |
Accounts receivable, net of allowance for doubtful accounts and sales reserves of $2,465 and $2,297 as of September 30, 2019 and December 31, 2018, respectively | 67,704 | 94,922 |
Prepaid expenses and other current assets | 53,361 | 37,199 |
Total current assets | 995,491 | 461,813 |
Property and equipment, net | 15,229 | 11,729 |
Operating lease right-of-use assets | 34,325 | |
Long-term investments | 112,060 | 96,551 |
Goodwill | 18,836 | 9,494 |
Intangible assets, net | 15,282 | 7,491 |
Other assets | 48,086 | 31,089 |
Total assets | 1,239,309 | 618,167 |
Current liabilities: | ||
Accounts payable | 11,200 | 5,028 |
Accrued payroll and payroll related liabilities | 26,460 | 24,659 |
Accrued expenses and other current liabilities | 19,495 | 10,878 |
Deferred revenue | 66,561 | 84,015 |
Convertible senior notes, net | 67,079 | 0 |
Total current liabilities | 190,795 | 124,580 |
Convertible senior notes, net | 623,720 | 173,647 |
Deferred revenue | 2,026 | 2,130 |
Operating lease liabilities | 30,307 | |
Other liabilities | 4,183 | 4,345 |
Deferred income tax, net | 1,543 | 11,647 |
Total liabilities | 852,574 | 316,349 |
Stockholders’ equity: | ||
Preferred stock, $0.0001 par value: 10,000 shares authorized as of September 30, 2019 and December 31, 2018, respectively; no shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 0 | 0 |
Common stock, $0.0001 par value: 500,000 Class A shares authorized, 51,791 and 37,832 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively; 500,000 Class B shares authorized, 13,256 and 23,748 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively | 7 | 6 |
Additional paid-in capital | 402,791 | 315,291 |
Accumulated deficit | (16,453) | (12,908) |
Accumulated other comprehensive income (loss) | 390 | (571) |
Total stockholders’ equity | 386,735 | 301,818 |
Total liabilities and stockholders’ equity | $ 1,239,309 | $ 618,167 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts and sales reserves | $ 2,465 | $ 2,297 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Class A Common Stock | ||
Common stock par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common Stock shares issued (in shares) | 51,791,000 | 37,832,000 |
Common stock shares outstanding (in shares) | 51,791,000 | 37,832,000 |
Class B Common Stock | ||
Common stock par value per share (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common Stock shares issued (in shares) | 13,256,000 | 23,748,000 |
Common stock shares outstanding (in shares) | 13,256,000 | 23,748,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Gain (Loss) |
Beginning balance (in shares) at Dec. 31, 2017 | 59,635 | ||||
Beginning Balance at Dec. 31, 2017 | $ 153,504 | $ 5 | $ 257,399 | $ (103,546) | $ (354) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued pursuant to stock awards, net of tax withholdings related to vesting of restricted stock units (in shares) | 934 | ||||
Shares issued pursuant to stock awards, net of tax withholdings related to vesting of restricted stock units | 4,973 | $ 1 | 4,972 | ||
Stock-based compensation | 3,789 | 3,789 | |||
Equity settled contingent consideration (in shares) | 19 | ||||
Equity-settled contingent consideration | 656 | 656 | |||
Cumulative translation adjustment | (6) | (6) | |||
Unrealized gain (loss) on investments, net of tax | (167) | (167) | |||
Net income (loss) | 4,897 | 4,897 | |||
Ending balance (in shares) at Mar. 31, 2018 | 60,588 | ||||
Ending Balance at Mar. 31, 2018 | 230,405 | $ 6 | 266,957 | (36,031) | (527) |
Beginning balance (in shares) at Dec. 31, 2017 | 59,635 | ||||
Beginning Balance at Dec. 31, 2017 | 153,504 | $ 5 | 257,399 | (103,546) | (354) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative translation adjustment | (53) | ||||
Unrealized gain (loss) on investments, net of tax | (192) | ||||
Net income (loss) | 11,479 | ||||
Ending balance (in shares) at Sep. 30, 2018 | 61,373 | ||||
Ending Balance at Sep. 30, 2018 | 281,591 | $ 6 | 311,633 | (29,449) | (599) |
Beginning balance (in shares) at Mar. 31, 2018 | 60,588 | ||||
Beginning Balance at Mar. 31, 2018 | 230,405 | $ 6 | 266,957 | (36,031) | (527) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued pursuant to stock awards, net of tax withholdings related to vesting of restricted stock units (in shares) | 263 | ||||
Shares issued pursuant to stock awards, net of tax withholdings related to vesting of restricted stock units | 1,802 | $ 0 | 1,802 | ||
Stock-based compensation | 3,894 | 3,894 | |||
Equity component of convertible senior notes, net of issuance costs and tax | 43,569 | 43,569 | |||
Purchase of capped calls, net of tax | (14,545) | (14,545) | |||
Cumulative translation adjustment | (62) | (62) | |||
Unrealized gain (loss) on investments, net of tax | 45 | 45 | |||
Net income (loss) | (4,239) | (4,239) | |||
Ending balance (in shares) at Jun. 30, 2018 | 60,851 | ||||
Ending Balance at Jun. 30, 2018 | 260,869 | $ 6 | 301,677 | (40,270) | (544) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued pursuant to stock awards, net of tax withholdings related to vesting of restricted stock units (in shares) | 522 | ||||
Shares issued pursuant to stock awards, net of tax withholdings related to vesting of restricted stock units | 5,574 | $ 0 | 5,574 | ||
Stock-based compensation | 4,382 | 4,382 | |||
Cumulative translation adjustment | 15 | 15 | |||
Unrealized gain (loss) on investments, net of tax | (70) | (70) | |||
Net income (loss) | 10,821 | 10,821 | |||
Ending balance (in shares) at Sep. 30, 2018 | 61,373 | ||||
Ending Balance at Sep. 30, 2018 | 281,591 | $ 6 | 311,633 | (29,449) | (599) |
Beginning balance (in shares) at Dec. 31, 2018 | 61,579 | ||||
Beginning Balance at Dec. 31, 2018 | 301,818 | $ 6 | 315,291 | (12,908) | (571) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Receipt of Section 16(b) disgorgement, net of tax effect | 3,743 | 3,743 | |||
Shares issued pursuant to stock awards, net of tax withholdings related to vesting of restricted stock units (in shares) | 863 | ||||
Shares issued pursuant to stock awards, net of tax withholdings related to vesting of restricted stock units | 8,587 | 8,587 | |||
Stock-based compensation | 5,335 | 5,335 | |||
Equity settled contingent consideration (in shares) | 21 | ||||
Equity-settled contingent consideration | 750 | 750 | |||
Cumulative translation adjustment | (1,011) | (1,011) | |||
Unrealized gain (loss) on investments, net of tax | 702 | 702 | |||
Net income (loss) | 5,914 | 5,914 | |||
Ending balance (in shares) at Mar. 31, 2019 | 62,463 | ||||
Ending Balance at Mar. 31, 2019 | 325,838 | $ 6 | 333,706 | (6,994) | (880) |
Beginning balance (in shares) at Dec. 31, 2018 | 61,579 | ||||
Beginning Balance at Dec. 31, 2018 | 301,818 | $ 6 | 315,291 | (12,908) | (571) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative translation adjustment | 49 | ||||
Unrealized gain (loss) on investments, net of tax | 912 | ||||
Net income (loss) | (3,545) | ||||
Ending balance (in shares) at Sep. 30, 2019 | 65,047 | ||||
Ending Balance at Sep. 30, 2019 | 386,735 | $ 7 | 402,791 | (16,453) | 390 |
Beginning balance (in shares) at Mar. 31, 2019 | 62,463 | ||||
Beginning Balance at Mar. 31, 2019 | 325,838 | $ 6 | 333,706 | (6,994) | (880) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued pursuant to stock awards, net of tax withholdings related to vesting of restricted stock units (in shares) | 309 | ||||
Shares issued pursuant to stock awards, net of tax withholdings related to vesting of restricted stock units | (620) | (620) | |||
Stock-based compensation | 8,024 | 8,024 | |||
Cumulative translation adjustment | 1,193 | 1,193 | |||
Unrealized gain (loss) on investments, net of tax | 212 | 212 | |||
Net income (loss) | (3,219) | (3,219) | |||
Ending balance (in shares) at Jun. 30, 2019 | 62,772 | ||||
Ending Balance at Jun. 30, 2019 | 331,428 | $ 6 | 341,110 | (10,213) | 525 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued pursuant to stock awards, net of tax withholdings related to vesting of restricted stock units (in shares) | 370 | ||||
Shares issued pursuant to stock awards, net of tax withholdings related to vesting of restricted stock units | 3,703 | 3,703 | |||
Shares issued pursuant to debt extinguishment on convertible senior notes, net of capped calls exercised (in shares) | 1,905 | ||||
Induced conversion on 2023 convertible senior notes, net of capped calls extinguished and tax | (7,904) | $ 1 | (7,905) | ||
Stock-based compensation | 8,836 | 8,836 | |||
Equity component of convertible senior notes, net of issuance costs and tax | 122,822 | 122,822 | |||
Purchase of capped calls, net of tax | (65,775) | (65,775) | |||
Cumulative translation adjustment | (133) | (133) | |||
Unrealized gain (loss) on investments, net of tax | (2) | (2) | |||
Net income (loss) | (6,240) | (6,240) | |||
Ending balance (in shares) at Sep. 30, 2019 | 65,047 | ||||
Ending Balance at Sep. 30, 2019 | $ 386,735 | $ 7 | $ 402,791 | $ (16,453) | $ 390 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (3,545) | $ 11,479 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation and amortization | 3,328 | 3,087 |
Non-cash operating lease cost | 3,538 | 0 |
Stock-based compensation | 22,195 | 12,065 |
Amortization of debt discount and issuance costs | 10,949 | 3,933 |
Deferred income taxes | (27,267) | 1,552 |
Loss on induced conversion and debt extinguishment | (20,507) | 0 |
Other non-cash operating activities, net | 1,143 | 478 |
Changes in operating assets and liabilities, net of effect of business acquisitions: | ||
Accounts receivable | 26,698 | (1,303) |
Deferred commissions | (4,882) | (6,114) |
Prepaid expenses, other current assets, and other assets | (28,949) | (18,875) |
Accounts payable | 5,165 | 5,987 |
Accrued payroll and payroll related liabilities | 1,703 | 1,697 |
Accrued expenses, other current liabilities, operating lease liabilities, and other liabilities | 441 | (3,350) |
Deferred revenue | (17,538) | 1,029 |
Net cash provided by operating activities | 13,486 | 11,665 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (6,160) | (5,929) |
Cash paid in business acquisitions, net of cash acquired | (16,604) | (3,537) |
Purchases of investments | (235,973) | (342,851) |
Maturities of investments | 231,794 | 88,919 |
Net cash used in investing activities | (26,943) | (263,398) |
Cash flows from financing activities: | ||
Proceeds from issuance of convertible senior notes, net of issuance costs | 783,946 | 224,708 |
Principal payments on 2023 convertible senior notes | (145,241) | 0 |
Purchase of capped calls | (87,360) | (19,113) |
Proceeds from receipt of Section 16(b) disgorgement | 4,918 | 0 |
Proceeds from exercise of stock options | 18,065 | 12,496 |
Minimum tax withholding paid on behalf of employees for restricted stock units | (6,395) | (149) |
Other financing activity | (1,305) | (495) |
Net cash provided by financing activities | 566,628 | 217,447 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (323) | (106) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 552,848 | (34,392) |
Cash, cash equivalents and restricted cash—beginning of period | 90,961 | 119,916 |
Cash, cash equivalents and restricted cash—end of period | 643,809 | 85,524 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 718 | 0 |
Cash paid for income taxes | 1,280 | 1,759 |
Supplemental disclosure of noncash investing and financing activities: | ||
Property and equipment recorded in accounts payable and accrued expenses and other current liabilities | 1,097 | 614 |
Right-of-use assets obtained in exchange for new operating lease liabilities | 12,909 | |
Consideration for business acquisition included in accrued expenses and other current liabilities and other liabilities | 3,000 | 1,200 |
Contingent consideration settled through issuance of common stock | 750 | 656 |
Debt issuance costs recorded in accounts payable and accrued expenses and other current liabilities | $ 657 | $ 462 |
Business
Business | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | Business Our Company Alteryx, Inc. and its subsidiaries, or we, our, or us, are improving business through data science and analytics by enabling analytic producers, regardless of technical acumen, to quickly and easily transform data into actionable insights and deliver improved data-driven business outcomes. Every day, our users leverage our end-to-end analytic platform to quickly and easily discover, access, prepare, and analyze data from a multitude of sources, then deploy and share analytics at scale. The ease-of-use, speed, and sophistication that our platform provides is enhanced through intuitive and highly repeatable visual workflows. Basis of Presentation Our unaudited interim condensed consolidated financial statements are presented in accordance with accounting standards generally accepted in the United States of America, or U.S. GAAP, for interim financial information. Certain information and disclosures normally included in consolidated financial statements presented in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission, or SEC, on March 1, 2019. The unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and reflect all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair statement of the condensed consolidated financial statements. All intercompany accounts and transactions have been eliminated in consolidation. We adopted Accounting Standards Codification, Revenue from Contracts with Customers , or ASC 606, effective January 1, 2018 on a modified retrospective basis during the fourth quarter of 2018 for our annual reporting period for the year ended December 31, 2018. As a result, the quarterly financial results for the three and nine months ended September 30, 2018 have been recast to reflect the adoption of ASC 606. The operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results expected for the full year ending December 31, 2019 . |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies There have been no changes to our accounting policies disclosed in our audited consolidated financial statements and the related notes for the year ended December 31, 2018 other than, during the three months ended March 31, 2019, we adopted new accounting guidance related to leases. See Leases and Recently Adopted Accounting Pronouncements below and Note 9, Leases , for additional information. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates and assumptions. On an ongoing basis, our management evaluates estimates and assumptions based on historical data and experience, as well as various other factors that our management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities. Operating Segments Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, or CODM, who is our chief executive officer, in deciding how to allocate resources and assess our financial and operational performance. Our CODM evaluates our financial information and resources and assesses the performance of these resources on a consolidated and aggregated basis. As a result, we have determined that our business operates in a single operating segment. Leases Through December 31, 2018, we recognized rent expense related to operating leases on a straight-line basis over the lease term and, accordingly, recorded the difference between rent payments and rent expense as a deferred rent liability. Effective January 1, 2019, we adopted Accounting Standards Update, or ASU, 2016-02, Leases , or ASC 842. See Recently Adopted Accounting Pronouncements below. Under ASC 842, we determine if an arrangement is a lease at contract inception. Operating leases are included in operating lease right-of-use assets, other current liabilities and operating lease liabilities in our condensed consolidated balance sheets. Operating lease charges are recorded in operating expenses in our condensed consolidated statements of operations and comprehensive income (loss). Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. We do not separate lease and non-lease components for all underlying asset classes. As most of our leases do not provide a readily determinable implicit rate, we estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. We determine our incremental borrowing rate for each lease based primarily on the lease term and the economic environment of the applicable country or region. The operating lease right-of-use asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The lease term includes options to extend or terminate when we are reasonably certain the option will be exercised. In general, we are not reasonably certain to exercise such options. We recognize lease expense for minimum lease payments on a straight-line basis over the lease term, while variable lease payments, such as common area maintenance, are recognized as incurred. We elected the practical expedient to not recognize operating lease right-of-use assets and operating lease liabilities that arise from short-term leases (i.e., leases with a term of 12 months or less). Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or FASB, issued ASU 2016-02, codified as ASC 842, which requires lessees to record the assets and liabilities arising from all leases, with the exception of short-term leases, in the statement of financial position. Under ASC 842, lessees will recognize a liability for lease payments and a right-of-use asset. This guidance retains the distinction between finance leases and operating leases and the classification criteria remain similar. For financing leases, a lessee will recognize the interest on a lease liability separate from amortization of the right-of-use asset. In addition, repayments of principal will be presented within financing activities, and interest payments will be presented within operating activities in the statement of cash flows. For operating leases, a lessee will recognize a single lease cost on a straight-line basis and classify all cash payments within operating activities in the statement of cash flows. We adopted the new lease accounting standard effective January 1, 2019 using the optional transition method described in ASU 2018-11, Leases – Targeted Improvements , which was issued in July 2018. Under the optional transition method, we recognized the cumulative effect of initially applying the guidance as an adjustment to the operating lease right-of-use assets and operating lease liabilities on our condensed consolidated balance sheet on January 1, 2019 in the amount of $24.8 million without retrospective application to comparative periods. The adoption of ASC 842 did not have an impact on retained earnings on our condensed consolidated balance sheet as of January 1, 2019 and is not expected to have a material impact on our condensed consolidated statements of operations and comprehensive income (loss). We elected the package of practical expedients permitted under the transition guidance within the new standard which allowed us to carry forward our historical assessments of whether contracts are or contain leases, lease classification and initial direct costs. See Note 9, Leases , for additional details. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The new standard amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology. As a result, we will be required to use a forward-looking expected credit loss model for accounts receivables and other commitments to extend credit. This pronouncement is effective for reporting periods beginning after December 15, 2019. We are evaluating the potential impact of this guidance on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal-use software. This guidance will be effective for us for annual reporting periods beginning after December 15, 2019 and for interim periods within those annual periods and can be applied either retrospectively or prospectively to all implementation costs after the date of adoption. Early adoption is permitted. We currently plan to adopt this new accounting standard prospectively. As a |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregation of Revenue The disaggregation of revenue by region, revenue by type of performance obligation and cost of revenue by type of performance obligation, and the timing of revenue recognition, was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Revenue by region: United States $ 74,710 $ 43,176 $ 185,388 $ 114,615 International 28,687 19,413 76,072 49,805 Total $ 103,397 $ 62,589 $ 261,460 $ 164,420 Revenue by type of performance obligation: Subscription-based software license $ 54,332 $ 28,822 $ 125,981 $ 72,781 PCS and services 49,065 33,767 135,479 91,639 Total $ 103,397 $ 62,589 $ 261,460 $ 164,420 Cost of revenue by type of performance obligation: Subscription-based software license $ 1,082 $ 521 $ 2,930 $ 1,647 PCS and services 8,563 5,289 24,010 14,436 Total $ 9,645 $ 5,810 $ 26,940 $ 16,083 Revenue attributable to the United Kingdom comprised 10.7% and 10.4% of total revenue for the three and nine months ended September 30, 2018 , respectively, and 12.3% and 10.5% of total revenue for the three and nine months ended September 30, 2019 , respectively. Other than the United Kingdom, no other countries outside the United States comprised more than 10% of revenue for any of the periods presented. Our operations outside the United States include sales offices in Australia, Canada, France, Germany, Japan, Singapore, the United Arab Emirates and the United Kingdom, and a research and development center in Ukraine and the Czech Republic. Revenue by location is determined by the billing address of the customer. Revenue recognized on our subscription-based software licenses is recognized at a point in time when the platform is first made available to the customer, or the beginning of the subscription term, if later. Revenue recognized related to post-contract support, or PCS, service, and hosted services is recognized ratably over the subscription term, with the exception of professional services related to training services. Revenue related to professional services is recognized at a point in time as the services are performed, and represents 5% or less of total revenue for all periods presented. Contract Assets and Contract Liabilities Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers. Contract assets primarily relate to unbilled amounts for contracts with customers for which the amount of revenue recognized exceeds the amount billed to the customer. Contract assets are transferred to accounts receivable when the right to invoice becomes unconditional. Contract liabilities, or deferred revenue, are recorded for amounts that are collected in advance of the satisfaction of performance obligations. These liabilities are classified as current and non-current deferred revenue. As of September 30, 2019 , our contract assets are expected to be transferred to receivables within the next 12 to 24 months and, with respect to these contract assets, $21.1 million is included in prepaid expenses and other current assets and $29.3 million is included in other assets on our condensed consolidated balance sheet. As of December 31, 2018, we had contract assets of $11.2 million included in prepaid expenses and other current assets and $16.5 million included in other assets on our consolidated balance sheet. There were no impairments of contract assets during the three and nine months ended September 30, 2019 . During the nine months ended September 30, 2019 , we recognized $75.4 million of revenue related to amounts that were included in deferred revenue as of January 1, 2019. Assets Recognized from the Costs to Obtain our Contracts with Customers We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year. We amortize these deferred costs proportionate with related revenues over the benefit period. A summary of the activity impacting our deferred contract costs during the nine months ended September 30, 2019 is presented below (in thousands): Balances at December 31, 2018 $ 22,391 Additional contract costs deferred 23,922 Amortization of deferred contract costs (19,467 ) Balances at September 30, 2019 $ 26,846 As of September 30, 2019 , $ 11.9 million of our deferred contract costs are expected to be amortized within the next 12 months and therefore are included in other current assets. The remaining amount of our deferred contract costs are included in other long-term assets. There were no impairments of assets related to deferred contract costs during the nine months ended September 30, 2019 . There were no assets recognized related to the costs to fulfill contracts during the nine months ended September 30, 2019 as these costs were not material. Remaining Performance Obligations As of September 30, 2019 , we had an aggregate transaction price of $ 271.8 million, allocated to unsatisfied performance obligations related primarily to PCS, cloud-based offerings, and subscriptions to third-party syndicated data. We expect to recognize $ 236.3 million as revenue over the next 24 months, with the remaining amount recognized thereafter. |
Business Combinations
Business Combinations | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations On April 4, 2019, we acquired 100% of the outstanding equity of ClearStory Data Inc., a Delaware corporation, or ClearStory Data, pursuant to an Agreement and Plan of Merger, or the Merger Agreement, dated as of March 28, 2019. The acquisition was made to augment our research and development team and acquire certain developed technology. The aggregate consideration payable in exchange for all of the outstanding equity interests of ClearStory Data was $19.6 million in cash, subject to customary adjustments set forth in the Merger Agreement. The acquisition of ClearStory Data included $3.0 million of cash consideration held back for customary indemnification matters for a period of 18 months following the acquisition date, which is included in other liabilities on our condensed consolidated balance sheets as of September 30, 2019 . We incurred $1.2 million of acquisition-related costs, which are included in general and administrative expense in the condensed consolidated statements of operations and comprehensive income (loss) for the nine months ended September 30, 2019 . In connection with the acquisition, we entered into employment agreements with certain employees from ClearStory Data, which include up to $6.0 million in aggregate cash payments based on the achievement of certain milestones over a period of 24 months . As the consideration is subject to the continued employment of the employees, it was excluded from the purchase consideration, and will be recognized as post-acquisition compensation. The condensed consolidated financial statements include the results of operations of ClearStory Data commencing as of the acquisition date. The purchase consideration for the acquisition of $19.6 million consisted of $10.7 million in completed technology, $9.5 million of goodwill, which is tax deductible, and $0.6 million of net liabilities assumed. Goodwill represents the excess of the purchase price consideration over the fair value of the underlying intangible assets and net liabilities assumed. We believe the amount of goodwill resulting from the acquisition is primarily attributable to expected synergies from an assembled workforce, increased development capabilities, offerings to customers, and enhanced opportunities for growth and innovation. We determined the fair value of the developed technology acquired using the replacement cost method which uses estimated costs to recreate the technology. This model utilizes certain unobservable inputs classified as Level 3 measurements as defined by ASC 820, Fair Value Measurements and Disclosures . Key inputs utilized in the models include a discount rate of 20% and estimated costs to recreate the technology. Based on the valuation model, we determined the fair value of the developed technology to be $10.7 million with an amortization period of 4.0 years . Pro forma information and revenue and operating results of ClearStory Data have not been presented as the impact is not material to our condensed consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Instruments Measured at Fair Value on a Recurring Basis. The following tables present our cash and cash equivalents’ and investments’ costs, gross unrealized gains (losses), and fair value by major security type recorded as cash and cash equivalents or short-term or long-term investments as of September 30, 2019 and December 31, 2018 (in thousands): As of September 30, 2019 Cost Unrealized Gains Fair Value Cash and Cash Equivalents Short-term Investments Long-term Investments Cash $ 630,790 $ — $ 630,790 $ 630,790 $ — $ — Level 1: Money market funds 11,660 — 11,660 11,660 — — Subtotal $ 11,660 $ — $ 11,660 $ 11,660 $ — $ — Level 2: Commercial paper 63,347 — 63,347 — 63,347 — Certificates of deposit — — — — — — U.S. Treasury and agency bonds 195,353 251 195,604 — 131,202 64,402 Corporate bonds 84,468 617 85,085 — 37,427 47,658 Subtotal $ 343,168 $ 868 $ 344,036 $ — $ 231,976 $ 112,060 Level 3: — — — — — — Total $ 985,618 $ 868 $ 986,486 $ 642,450 $ 231,976 $ 112,060 As of December 31, 2018 Cost Unrealized Losses Fair Value Cash and Short-term Investments Long-term Investments Cash $ 78,194 $ — $ 78,194 $ 78,194 $ — $ — Level 1: Money market funds 11,780 — 11,780 11,780 — — Subtotal $ 11,780 $ — $ 11,780 $ 11,780 $ — $ — Level 2: Commercial paper 1,313 — 1,313 — 1,313 — Certificates of deposit 6,101 — 6,101 — 5,351 750 U.S. Treasury and agency bonds 220,136 (139 ) 219,997 — 158,204 61,793 Corporate bonds 108,968 (110 ) 108,858 — 74,850 34,008 Subtotal $ 336,518 $ (249 ) $ 336,269 $ — $ 239,718 $ 96,551 Level 3: — — — — — — Total $ 426,492 $ (249 ) $ 426,243 $ 89,974 $ 239,718 $ 96,551 There were no transfers between Level 1, Level 2, or Level 3 securities during the nine months ended September 30, 2019 . Gross unrealized losses of less than $ 0.1 million as of September 30, 2019 were due to changes in market rates and are temporary in nature. All long-term investments had maturities of between one and two years in duration as of September 30, 2019 . Cash and cash equivalents, restricted cash, and investments as of September 30, 2019 and December 31, 2018 held domestically were approximately $ 978.9 million and $ 417.9 million, respectively. Contingent Consideration. The following table presents a reconciliation of the beginning and ending balances of acquisition-related accrued contingent consideration using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Beginning balance $ 318 $ 1,974 $ 2,143 $ 975 Obligations assumed — — — 1,200 Change in fair value — — (75 ) 455 Settlements — — (1,750 ) (656 ) Ending balance $ 318 $ 1,974 $ 318 $ 1,974 Upon the achievement of certain milestones in connection with our acquisition of Semanta, s.r.o., or Semanta, we released 11,250 shares of Class A common stock with a fair value of $0.8 million to the former shareholders of Semanta in the nine months ended September 30, 2019 . In addition, upon completion of the indemnification period in the nine months ended September 30, 2019 , we released 10,205 shares of Class A common stock to the former shareholders of Semanta that had previously been earned, but were held back in accordance with the terms of the acquisition agreement. We also paid $1.0 million to the former shareholder of Alteryx ANZ Pty Limited upon the achievement of certain milestones during the nine months ended September 30, 2019 . Instruments Not Recorded at Fair Value on a Recurring Basis. As of September 30, 2019 , the fair value of our Notes (as defined in Note 7, Convertible Senior Notes ) was $1.0 billion . The carrying amounts of our cash, accounts receivable, prepaid expenses and other current assets, accounts payable, and accrued liabilities approximate their current fair value because of their nature and relatively short maturity dates or durations. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The change in carrying amount of goodwill for the nine months ended September 30, 2019 was as follows (in thousands): Goodwill as of December 31, 2018 $ 9,494 Goodwill recorded in connection with acquisition 9,453 Effects of foreign currency translation (111 ) Goodwill as of September 30, 2019 $ 18,836 Intangible assets consisted of the following (in thousands, except years): As of September 30, 2019 Weighted- Average Useful Life in Years Gross Carrying Value Accumulated Amortization Net Carrying Value Customer relationships 7.0 $ 1,448 $ (335 ) $ 1,113 Completed technology 4.8 19,855 (5,686 ) 14,169 $ 21,303 $ (6,021 ) $ 15,282 As of December 31, 2018 Weighted- Gross Carrying Value Accumulated Amortization Net Carrying Value Customer relationships 6.9 $ 1,554 $ (221 ) $ 1,333 Completed technology 5.7 9,180 (3,022 ) 6,158 $ 10,734 $ (3,243 ) $ 7,491 We classified intangible asset amortization expense in the accompanying condensed consolidated statements of operations and comprehensive income (loss) as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Cost of revenue $ 1,128 $ 456 $ 2,670 $ 1,353 Sales and marketing 53 62 168 159 Total $ 1,181 $ 518 $ 2,838 $ 1,512 The following table presents our estimates of remaining amortization expense for finite-lived intangible assets at September 30, 2019 (in thousands): Remainder of 2019 $ 1,181 2020 4,387 2021 4,169 2022 3,624 2023 1,272 Thereafter 649 Total amortization expense $ 15,282 |
Convertible Senior Notes
Convertible Senior Notes | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes | Convertible Senior Notes The following table presents details of our convertible senior notes, which are further discussed below (original principal in thousands): Month Issued Maturity Date Original Principal (including over-allotment) Coupon Interest Rate Effective Interest Rate Conversion Rate Initial Conversion Price 2023 Notes May 2018 June 1, 2023 $ 230,000 0.5 % 7.00 % $ 22.5572 $ 44.33 2024 Notes August 2019 August 1, 2024 $ 400,000 0.5 % 4.96 % $ 5.2809 $ 189.36 2026 Notes August 2019 August 1, 2026 $ 400,000 1.0 % 5.41 % $ 5.2809 $ 189.36 2023 Notes In May and June 2018, we sold $230.0 million aggregate principal amount of our 0.50% Convertible Senior Notes due 2023, or the 2023 Notes, including the initial purchasers’ exercise in full of their option to purchase an additional $30.0 million of the 2023 Notes, in a private offering to qualified institutional buyers pursuant to Rule 144A promulgated under the Securities Act of 1933, as amended, or the Act. The 2023 Notes are our senior, unsecured obligations, and interest is payable semi-annually in arrears on June 1 and December 1 of each year beginning December 1, 2018. Prior to the close of business on the business day immediately preceding March 1, 2023, or the 2023 Conversion Date, the 2023 Notes are convertible at the option of holders only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the maturity date. The conversion rate is subject to customary adjustments for certain events as described in the indenture between us and U.S. Bank National Association, as trustee, or the 2023 Notes Indenture. Upon conversion, the 2023 Notes may be settled in shares of our Class A common stock, cash or a combination of cash and shares of our Class A common stock, at our election. It is our current intent to settle the principal amount of the 2023 Notes with cash. During the three months ended September 30, 2019, a portion of the 2023 Notes were exchanged, as further discussed below. As of September 30, 2019 , the if-converted value of the 2023 Notes exceeded its principal amount by $120.6 million . Prior to the close of business on the business day immediately preceding the 2023 Conversion Date, the 2023 Notes are convertible at the option of the holders under the following circumstances: • during any calendar quarter commencing after the calendar quarter subsequent to the calendar quarter in which the 2023 Notes were issued (and only during such calendar quarter), if the last reported sale price of our Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price of the 2023 Notes on each trading day; • during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2023 Notes for each day of that five day consecutive trading day period was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate of the 2023 Notes on such trading day; or • upon the occurrence of specified corporate events described in the 2023 Notes Indenture. For at least 20 trading days during the period of 30 consecutive trading days ending September 30, 2019 , the last reported sale price of our Class A common stock was greater than or equal to 130% of the conversion price of the 2023 Notes on each applicable trading day. As a result, the 2023 Notes are convertible at the option of the holders during the quarter ending December 31, 2019 and were classified as current liabilities on the condensed consolidated balance sheet as of September 30, 2019. As of the date of this filing, none of the holders of the 2023 Notes have submitted requests for conversion. 2023 Capped Call Transactions In connection with the pricing of the 2023 Notes, we entered into privately negotiated capped call transactions with an affiliate of one of the initial purchasers of the 2023 Notes and other financial institutions. The capped call transactions are expected generally to reduce or offset potential dilution to holders of our common stock and/or offset the potential cash payments that we could be required to make in excess of the principal amount upon any conversion of the 2023 Notes under certain circumstances, with such reduction and/or offset subject to a cap based on the cap price. Under the capped call transactions, we purchased capped call options that in the aggregate relate to the total number of shares of our Class A common stock underlying the 2023 Notes, with an initial strike price of approximately $44.33 per share, which corresponds to the initial conversion price of the 2023 Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of the 2023 Notes, and have a cap price of $62.22 per share. The cost of the purchased capped calls of $19.1 million was recorded as a reduction to additional paid-in-capital in our condensed consolidated balance sheet during the three months ended June 30, 2018. We elected to integrate the capped call options with the 2023 Notes for federal income tax purposes pursuant to applicable U.S. Treasury Regulations. Accordingly, the $19.1 million gross cost of the purchased capped calls will be deductible for income tax purposes as original discount interest over the term of the 2023 Notes. We recorded a deferred tax asset of $4.6 million , which represents the tax benefit of these deductions with an offsetting entry to additional paid-in capital. In connection with the exchange agreements discussed below, we terminated a corresponding portion of the existing capped call transactions that we entered into in connection with the issuance of the 2023 Notes, which resulted in the net share settlement and our receipt and retirement of 285,466 shares of Class A common stock. Exchange of 2023 Notes In connection with the issuance of the 2024 & 2026 Notes discussed below, we entered into exchange agreements with certain holders of our outstanding 2023 Notes and, using a portion of the net proceeds from the issuance of the 2024 & 2026 Notes, we exchanged $145.2 million principal amount, together with accrued and unpaid interest thereon, of the 2023 Notes for aggregate consideration of $145.4 million in cash, representing the principal and accrued interest of the exchanged 2023 Notes, and 2.2 million shares of Class A common stock. The exchange agreements were accounted for as an induced conversion, resulting from the issuance of shares of Class A common stock in excess of the shares that would have been issuable under the terms of the original 2023 Notes. This exchange resulted in a loss on induced conversion and debt extinguishment of $20.5 million , consisting of (i) a $8.2 million market premium representing the excess of the fair value of the total consideration delivered over the fair value of the Class A common stock issuable for the principal amount exchanged pursuant to the original conversion terms and (ii) $12.3 million representing the difference between the fair value and the carrying value, net of unamortized issuance costs, of the liability component of the exchanged 2023 Notes. 2024 & 2026 Notes In August 2019, we sold $400.0 million aggregate principal amount of our 0.50% Convertible Senior Notes due 2024, or the 2024 Notes, and $400.0 million aggregate principal amount of our 1.00% Convertible Senior Notes due 2026, or the 2026 Notes, including the initial purchasers’ exercise in full of their options to purchase an additional $50.0 million of the 2024 Notes and an additional $50.0 million of the 2026 Notes, in a private offering to qualified institutional buyers pursuant to Rule 144A promulgated under the Act. The 2024 Notes and the 2026 Notes are together referred to as the 2024 & 2026 Notes, and the 2023 Notes and the 2024 & 2026 Notes are collectively referred to as the Notes. The 2024 & 2026 Notes are our senior, unsecured obligations, and interest is payable semi-annually in arrears on February 1 and August 1 of each year beginning February 1, 2020. Prior to the close of business on the business day immediately preceding May 1, 2024, or the 2024 Conversion Date, in the case of the 2024 Notes and May 1, 2026, or the 2026 Conversion Date, in the case of the 2026 Notes, the 2024 & 2026 Notes are convertible at the option of holders only upon satisfaction of certain conditions and during certain periods, and thereafter, at any time until the close of business on the second scheduled trading day immediately preceding the relevant maturity date. The conversion rate is subject to customary adjustments for certain events as described in the indentures between us and U.S. Bank National Association, as trustee, or the 2024 Notes Indenture, in the case of the 2024 Notes, or the 2026 Notes Indenture, in the case of the 2026 Notes. Upon conversion, the 2024 & 2026 Notes may be settled in shares of our Class A common stock, cash or a combination of cash and shares of our Class A common stock, at our election. It is our current intent to settle the principal amount of the 2024 & 2026 Notes with cash. Prior to the close of business on the business day immediately preceding the 2024 Conversion Date, in the case of the 2024 Notes, or the 2026 Conversion Date, in the case of the 2026 Notes, the 2024 Notes and the 2026 Notes, respectively, are convertible at the option of the holders under the following circumstances: • during any calendar quarter commencing after the calendar quarter ended December 31, 2019 (and only during such calendar quarter), if the last reported sale price of our Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price of the 2024 Notes or the 2026 Notes, as applicable, on each applicable trading day; • during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of the 2024 Notes or the 2026 Notes, as applicable, for each day of that five day consecutive trading day period was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate of such series of Notes on such trading day; or • upon the occurrence of specified corporate events described in the 2024 Notes Indenture or the 2026 Notes Indenture, as applicable. The 2024 & 2026 Notes are not currently convertible. We may not redeem the 2024 Notes or the 2026 Notes prior to the relevant maturity date. Holders of the 2024 & 2026 Notes have the right to require us to repurchase for cash all or a portion of their 2024 & 2026 Notes, as applicable, at 100% of their respective principal amounts, plus any accrued and unpaid interest, upon the occurrence of a fundamental change as defined in the 2024 Notes Indenture, in the case of the 2024 Notes, or the 2026 Notes Indenture, in the case of the 2026 Notes. We are also required to increase the conversion rate for holders who convert their 2024 Notes or 2026 Notes in connection with certain corporate events occurring prior to the relevant maturity date. The 2024 & 2026 Notes are our senior unsecured obligations and rank senior in right of payment to any of our indebtedness and other liabilities that are expressly subordinated in right of payment to the 2024 & 2026 Notes, equal in right of payment to the 2023 Notes and to any other existing and future indebtedness and other liabilities that are not subordinated, effectively junior in right of payment to any of our secured indebtedness and other liabilities to the extent of the value of the assets securing such indebtedness and other liabilities, and structurally junior in right of payment to all of our existing and future indebtedness and other liabilities (including trade payables) of our current or future subsidiaries. In accounting for the issuance of the 2024 & 2026 Notes, we separated each series of the 2024 & 2026 Notes into liability and debt components. The carrying amount of the debt component for each series of the 2024 & 2026 Notes was calculated by estimating the fair value of similar liabilities that do not have associated convertible features. The carrying amount of the equity component, representing the conversion option, for each series of the 2024 & 2026 Notes was determined by deducting the fair value of the debt component from the principal amount of each series of the 2024 & 2026 Notes. The difference between the principal amount of each series of the 2024 & 2026 Notes and the debt component is amortized to interest expense over the term of the 2024 Notes, in the case of the 2024 Notes, and the 2026 Notes, in the case of the 2026 Notes, using the effective interest method. The equity component, net of issuance costs and deferred tax effects, of each series of the 2024 & 2026 Notes is presented within additional paid-in-capital in our condensed consolidated balance sheet, and will not be remeasured as long as it continues to meet the requirements for equity classification. 2024 and 2026 Capped Call Transactions In connection with the pricing of the 2024 & 2026 Notes, we entered into privately negotiated capped call transactions with other financial institutions. The capped call transactions are expected generally to reduce or offset potential dilution to holders of our common stock and/or offset the potential cash payments that we could be required to make in excess of the principal amount upon any conversion of the relevant series of the 2024 & 2026 Notes under certain circumstances, with such reduction and/or offset subject to a cap based on the cap price. Under the capped call transactions, we purchased capped call options that in the aggregate relate to the total number of shares of our Class A common stock underlying the relevant series of the 2024 & 2026 Notes, with an initial strike price of approximately $189.36 per share, which corresponds to the initial conversion price of each of the 2024 & 2026 Notes and is subject to anti-dilution adjustments substantially similar to those applicable to the conversion rate of each of the 2024 & 2026 Notes, and have a cap price of $315.60 per share. The cost of the purchased capped calls of $87.4 million was recorded as a reduction to additional paid-in-capital in our condensed consolidated balance sheet during the three months ended September 30, 2019. We elected to integrate the capped call options with the 2024 & 2026 Notes for federal income tax purposes pursuant to applicable U.S. Treasury Regulations. Accordingly, the $87.4 million gross cost of the purchased capped calls will be deductible for income tax purposes as original discount interest over the term of the relevant series of the 2024 & 2026 Notes. We recorded a deferred tax asset of $21.6 million , which represents the tax benefit of these deductions with an offsetting entry to additional paid-in capital. The Notes consisted of the following (in thousands): As of September 30, 2019 As of December 31, 2018 2023 Notes 2024 Notes 2026 Notes 2023 Notes Liability: Principal $ 84,759 $ 400,000 $ 400,000 $ 230,000 Less: debt discount and issuance costs, net of amortization (17,680 ) (76,200 ) (100,080 ) (56,353 ) Net carrying amount $ 67,079 $ 323,800 $ 299,920 $ 173,647 Equity, net of issuance costs $ 46,474 $ 69,749 $ 93,380 $ 57,251 The following table sets forth interest expense recognized related to the Notes (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Contractual interest expense $ 1,005 $ 288 $ 1,580 $ 425 Amortization of debt issuance costs and discount 5,436 2,672 10,949 3,933 Total $ 6,441 $ 2,960 $ 12,529 $ 4,358 |
Equity Awards
Equity Awards | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity Awards | Equity Awards Stock Options Stock option activity during the nine months ended September 30, 2019 consisted of the following (in thousands, except weighted-average information): Options Outstanding Weighted- Average Exercise Price Options outstanding at December 31, 2018 4,049 $ 12.48 Granted 312 73.03 Exercised (1,293 ) 10.61 Canceled/forfeited (268 ) 18.53 Options outstanding at September 30, 2019 2,800 $ 19.51 As of September 30, 2019 , there was $ 14.6 million of unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted-average period of 2.1 years . Restricted Stock Units Restricted stock unit, or RSU, activity during the nine months ended September 30, 2019 consisted of the following (in thousands, except weighted-average information): Awards Outstanding Weighted- Average Grant Date Fair Value RSUs outstanding at December 31, 2018 1,215 $ 31.93 Granted 686 83.01 Vested (248 ) 33.87 Canceled/forfeited (179 ) 37.34 RSUs outstanding at September 30, 2019 1,474 $ 54.71 As of September 30, 2019 , total unrecognized compensation expense related to unvested RSUs was approximately $65.8 million, which is expected to be recognized over a weighted-average period of 2.5 years . We classified stock-based compensation expense in the accompanying consolidated statements of operations and comprehensive income (loss) as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Cost of revenue $ 431 $ 226 $ 1,148 $ 571 Research and development 1,659 828 4,014 2,782 Sales and marketing 3,471 1,641 8,822 4,411 General and administrative 3,275 1,687 8,211 4,301 Total $ 8,836 $ 4,382 $ 22,195 $ 12,065 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases We have various non-cancelable operating leases for our corporate offices in California, Colorado, Illinois, Michigan, New York, Texas and Virginia in the United States and Australia, Canada, the Czech Republic, France, Germany, Japan, Singapore, Ukraine, the United Arab Emirates and the United Kingdom. These leases expire at various times through 2028 . Certain lease agreements contain renewal options, rent abatement, and escalation clauses that are factored into our determination of lease payments when appropriate. The table below presents lease-related assets and liabilities recorded on the condensed consolidated balance sheet (in thousands): Classification As of September 30, 2019 Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 34,325 Liabilities Operating lease liabilities (current) Accrued expenses and other current liabilities $ 5,818 Operating lease liabilities (noncurrent) Operating lease liabilities 30,307 Total lease liabilities $ 36,125 Lease Costs The following lease costs were included in our condensed consolidated statements of operations and comprehensive income (loss) as follows (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 1,943 $ 4,961 Short-term lease cost 339 1,053 Variable lease cost 511 1,294 Total lease cost $ 2,793 $ 7,308 Supplemental Information The table below presents supplemental information related to operating leases during the nine months ended September 30, 2019 (in thousands, except weighted-average information): Cash paid for amounts included in the measurement of operating lease liabilities $ 4,468 Weighted-average remaining lease term (in years) 6.2 Weighted-average discount rate 6.2 % Undiscounted Cash Flows The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet as of September 30, 2019 (in thousands): Remainder of 2019 $ 1,884 2020 7,989 2021 7,477 2022 6,894 2023 5,535 2024 5,317 Thereafter 9,075 Total minimum lease payments 44,171 Less imputed interest (8,046 ) Present value of future minimum lease payments 36,125 Less current obligations under leases (5,818 ) Long-term lease obligations $ 30,307 Disclosures Related to Periods Prior to Adoption of New Lease Standard Minimum lease payments under operating leases with non-cancelable terms in excess of one year as of December 31, 2018, were as follows (in thousands): 2019 $ 6,389 2020 6,781 2021 6,326 2022 6,276 2023 5,163 Thereafter 9,427 Total minimum lease payments $ 40,362 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Indemnification As of September 30, 2019 and December 31, 2018 , we have no t accrued a liability for indemnification provisions we agree to in the ordinary course of business or with our directors, executive officers and certain other employees pursuant to indemnification agreements because the likelihood of incurring a payment obligation, if any, in connection with these arrangements is not probable or reasonably estimable. Litigation From time to time, we may be involved in lawsuits, claims, investigations, and proceedings, consisting of intellectual property, commercial, employment, and other matters, which arise in the ordinary course of business. We are not currently party to any material legal proceedings or claims, nor are we aware of any pending or threatened legal proceedings or claims that could have a material adverse effect on our business, operating results, cash flows, or financial condition should such legal proceedings or claims be resolved unfavorably. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table presents details of the benefit of income taxes and our effective tax rates (in thousands, except percentages): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Benefit of income taxes $ (8,663 ) $ (2,643 ) $ (26,456 ) $ (5,507 ) Effective tax rate (58.1 )% 32.3 % (88.2 )% 92.2 % We account for income taxes according to ASC 740, which, among other things, requires that we estimate our annual effective income tax rate for the full year and apply it to pre-tax income (loss) for each interim period, taking into account year-to-date amounts and projected results for the full year. We account for the tax effects of discrete events in the interim period they occur. The provision for income taxes consists of federal, foreign, state, and local income taxes. Our effective tax rate differs from the statutory U.S. income tax rate due to the effect of state and local income taxes, differing tax rates imposed on income earned in foreign jurisdictions and in the United States, losses in foreign jurisdictions, certain nondeductible expenses, excess tax deductions, and the changes in valuation allowances against our deferred tax assets. Our effective tax rate could change significantly from quarter to quarter because of recurring and nonrecurring factors. The benefit of income taxes for the nine months ended September 30, 2019 was primarily attributable to discrete tax benefits of $19.3 million related to excess tax deductions from settled stock options and RSUs. Neither we nor any of our subsidiaries are currently under examination from tax authorities in the jurisdictions in which we do business. |
Basic and Diluted Net Income (L
Basic and Diluted Net Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) Per Share | Basic and Diluted Net Income (Loss) Per Share The following table presents the computation of net income (loss) per share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net income (loss) attributable to common stockholders $ (6,240 ) $ 10,821 $ (3,545 ) $ 11,479 Denominator: Weighted-average shares used to compute net income (loss) per share attributable to common stockholders, basic 63,966 61,103 62,842 60,618 Effect of dilutive securities: Convertible senior notes — 672 — 226 Contingently issuable shares — 21 — 25 Employee stock awards — 3,763 — 3,432 Weighted-average shares used to compute net income (loss) per share attributable to common stockholders, diluted 63,966 65,559 62,842 64,301 Net income (loss) per share attributable to common stockholders, basic and diluted $ (0.10 ) $ 0.18 $ (0.06 ) $ 0.19 Net income (loss) per share attributable to common stockholders, diluted $ (0.10 ) $ 0.17 $ (0.06 ) $ 0.18 The following weighted-average equivalent shares of common stock, excluding the impact of the treasury stock method, were excluded from the diluted net income (loss) per share calculation because their inclusion would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Options to purchase common stock 3,023 23 3,356 504 Unvested restricted stock units 1,460 12 1,388 157 Convertible senior notes 5,715 — 5,366 — Total shares excluded from net loss per share 10,198 35 10,110 661 It is our current intent to settle the principal amounts of the Notes with cash and, therefore, we use the treasury stock method for calculating any potential dilutive effect of the conversion options on diluted net income per share. The conversion options may have a dilutive impact on net income per share of common stock when the average market price per share of our Class A common stock for a given period exceeds the conversion price of the 2023 Notes and 2024 & 2026 Notes of $44.33 and $189.36 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Acquisition of Feature Labs, Inc. On October 3, 2019, we acquired 100% of the outstanding equity of Feature Labs, Inc., a Delaware corporation, or Feature Labs, pursuant to an Agreement and Plan of Merger, or the Merger Agreement, dated as of October 2, 2019. The aggregate consideration payable in exchange for all of the outstanding equity interests of Feature Labs, Inc. was approximately $25.5 million in cash, subject to customary adjustments set forth in the Merger Agreement. In addition to the purchase price, we entered into share-based compensation agreements with the employees of Feature Labs, Inc. with a value of up to $12.5 million , comprised of both performance- and time-based restricted stock units. Given the timing of the completion of the acquisition, we are currently in the process of valuing the assets acquired and liabilities assumed in the acquisition. As a result, we are unable to provide the amounts recognized as of the acquisition date for the major classes of assets acquired and liabilities assumed and other disclosures. Operating Lease Agreement In October 2019, we entered into a new operating lease agreement for approximately 180,000 square feet of office space located in Irvine, California that will eventually replace our existing corporate headquarters. The initial lease term is 84 months and is anticipated to commence on or about March 23, 2020, with an option to renew for two extension periods of 60 months |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Our unaudited interim condensed consolidated financial statements are presented in accordance with accounting standards generally accepted in the United States of America, or U.S. GAAP, for interim financial information. Certain information and disclosures normally included in consolidated financial statements presented in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes included in our Annual Report on Form 10-K for the year ended December 31, 2018 filed with the Securities and Exchange Commission, or SEC, on March 1, 2019. The unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with that used to prepare the audited annual consolidated financial statements and reflect all adjustments which are, in the opinion of our management, of a normal recurring nature and necessary for a fair statement of the condensed consolidated financial statements. All intercompany accounts and transactions have been eliminated in consolidation. We adopted Accounting Standards Codification, Revenue from Contracts with Customers , or ASC 606, effective January 1, 2018 on a modified retrospective basis during the fourth quarter of 2018 for our annual reporting period for the year ended December 31, 2018. As a result, the quarterly financial results for the three and nine months ended September 30, 2018 have been recast to reflect the adoption of ASC 606. The operating results for the three and nine months ended September 30, 2019 are not necessarily indicative of the results expected for the full year ending December 31, 2019 . |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates and assumptions. On an ongoing basis, our management evaluates estimates and assumptions based on historical data and experience, as well as various other factors that our management believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities. |
Operating Segments | Operating Segments Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, or CODM, who is our chief executive officer, in deciding how to allocate resources and assess our financial and operational performance. Our CODM evaluates our financial information and resources and assesses the performance of these resources on a consolidated and aggregated basis. As a result, we have determined that our business operates in a single operating segment. |
Leases | Leases Through December 31, 2018, we recognized rent expense related to operating leases on a straight-line basis over the lease term and, accordingly, recorded the difference between rent payments and rent expense as a deferred rent liability. Effective January 1, 2019, we adopted Accounting Standards Update, or ASU, 2016-02, Leases , or ASC 842. See Recently Adopted Accounting Pronouncements below. Under ASC 842, we determine if an arrangement is a lease at contract inception. Operating leases are included in operating lease right-of-use assets, other current liabilities and operating lease liabilities in our condensed consolidated balance sheets. Operating lease charges are recorded in operating expenses in our condensed consolidated statements of operations and comprehensive income (loss). Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. We do not separate lease and non-lease components for all underlying asset classes. As most of our leases do not provide a readily determinable implicit rate, we estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. We determine our incremental borrowing rate for each lease based primarily on the lease term and the economic environment of the applicable country or region. The operating lease right-of-use asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. The lease term includes options to extend or terminate when we are reasonably certain the option will be exercised. In general, we are not reasonably certain to exercise such options. We recognize lease expense for minimum lease payments on a straight-line basis over the lease term, while variable lease payments, such as common area maintenance, are recognized as incurred. We elected the practical expedient to not recognize operating lease right-of-use assets and operating lease liabilities that arise from short-term leases (i.e., leases with a term of 12 months or less). |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board, or FASB, issued ASU 2016-02, codified as ASC 842, which requires lessees to record the assets and liabilities arising from all leases, with the exception of short-term leases, in the statement of financial position. Under ASC 842, lessees will recognize a liability for lease payments and a right-of-use asset. This guidance retains the distinction between finance leases and operating leases and the classification criteria remain similar. For financing leases, a lessee will recognize the interest on a lease liability separate from amortization of the right-of-use asset. In addition, repayments of principal will be presented within financing activities, and interest payments will be presented within operating activities in the statement of cash flows. For operating leases, a lessee will recognize a single lease cost on a straight-line basis and classify all cash payments within operating activities in the statement of cash flows. We adopted the new lease accounting standard effective January 1, 2019 using the optional transition method described in ASU 2018-11, Leases – Targeted Improvements , which was issued in July 2018. Under the optional transition method, we recognized the cumulative effect of initially applying the guidance as an adjustment to the operating lease right-of-use assets and operating lease liabilities on our condensed consolidated balance sheet on January 1, 2019 in the amount of $24.8 million without retrospective application to comparative periods. The adoption of ASC 842 did not have an impact on retained earnings on our condensed consolidated balance sheet as of January 1, 2019 and is not expected to have a material impact on our condensed consolidated statements of operations and comprehensive income (loss). We elected the package of practical expedients permitted under the transition guidance within the new standard which allowed us to carry forward our historical assessments of whether contracts are or contain leases, lease classification and initial direct costs. See Note 9, Leases , for additional details. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . The new standard amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology. As a result, we will be required to use a forward-looking expected credit loss model for accounts receivables and other commitments to extend credit. This pronouncement is effective for reporting periods beginning after December 15, 2019. We are evaluating the potential impact of this guidance on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal-use software. This guidance will be effective for us for annual reporting periods beginning after December 15, 2019 and for interim periods within those annual periods and can be applied either retrospectively or prospectively to all implementation costs after the date of adoption. Early adoption is permitted. We currently plan to adopt this new accounting standard prospectively. As a result of the adoption, we will be required to capitalize additional costs related to the implementation of cloud computing arrangements that we have historically expensed as incurred. |
Income Taxes | We account for income taxes according to ASC 740, which, among other things, requires that we estimate our annual effective income tax rate for the full year and apply it to pre-tax income (loss) for each interim period, taking into account year-to-date amounts and projected results for the full year. We account for the tax effects of discrete events in the interim period they occur. The provision for income taxes consists of federal, foreign, state, and local income taxes. Our effective tax rate differs from the statutory U.S. income tax rate due to the effect of state and local income taxes, differing tax rates imposed on income earned in foreign jurisdictions and in the United States, losses in foreign jurisdictions, certain nondeductible expenses, excess tax deductions, and the changes in valuation allowances against our deferred tax assets. Our effective tax rate could change significantly from quarter to quarter because of recurring and nonrecurring factors. The benefit of income taxes for the nine months ended September 30, 2019 was primarily attributable to discrete tax benefits of $19.3 million |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The disaggregation of revenue by region, revenue by type of performance obligation and cost of revenue by type of performance obligation, and the timing of revenue recognition, was as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Revenue by region: United States $ 74,710 $ 43,176 $ 185,388 $ 114,615 International 28,687 19,413 76,072 49,805 Total $ 103,397 $ 62,589 $ 261,460 $ 164,420 Revenue by type of performance obligation: Subscription-based software license $ 54,332 $ 28,822 $ 125,981 $ 72,781 PCS and services 49,065 33,767 135,479 91,639 Total $ 103,397 $ 62,589 $ 261,460 $ 164,420 Cost of revenue by type of performance obligation: Subscription-based software license $ 1,082 $ 521 $ 2,930 $ 1,647 PCS and services 8,563 5,289 24,010 14,436 Total $ 9,645 $ 5,810 $ 26,940 $ 16,083 |
Deferred Contract Costs | A summary of the activity impacting our deferred contract costs during the nine months ended September 30, 2019 is presented below (in thousands): Balances at December 31, 2018 $ 22,391 Additional contract costs deferred 23,922 Amortization of deferred contract costs (19,467 ) Balances at September 30, 2019 $ 26,846 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Cash and Cash Equivalents and Investments' Costs, Gross Unrealized Gains (Losses), and Fair Value by Major Security Type Recorded as Cash and Cash Equivalents or Short-Term or Long-Term Investments | The following tables present our cash and cash equivalents’ and investments’ costs, gross unrealized gains (losses), and fair value by major security type recorded as cash and cash equivalents or short-term or long-term investments as of September 30, 2019 and December 31, 2018 (in thousands): As of September 30, 2019 Cost Unrealized Gains Fair Value Cash and Cash Equivalents Short-term Investments Long-term Investments Cash $ 630,790 $ — $ 630,790 $ 630,790 $ — $ — Level 1: Money market funds 11,660 — 11,660 11,660 — — Subtotal $ 11,660 $ — $ 11,660 $ 11,660 $ — $ — Level 2: Commercial paper 63,347 — 63,347 — 63,347 — Certificates of deposit — — — — — — U.S. Treasury and agency bonds 195,353 251 195,604 — 131,202 64,402 Corporate bonds 84,468 617 85,085 — 37,427 47,658 Subtotal $ 343,168 $ 868 $ 344,036 $ — $ 231,976 $ 112,060 Level 3: — — — — — — Total $ 985,618 $ 868 $ 986,486 $ 642,450 $ 231,976 $ 112,060 As of December 31, 2018 Cost Unrealized Losses Fair Value Cash and Short-term Investments Long-term Investments Cash $ 78,194 $ — $ 78,194 $ 78,194 $ — $ — Level 1: Money market funds 11,780 — 11,780 11,780 — — Subtotal $ 11,780 $ — $ 11,780 $ 11,780 $ — $ — Level 2: Commercial paper 1,313 — 1,313 — 1,313 — Certificates of deposit 6,101 — 6,101 — 5,351 750 U.S. Treasury and agency bonds 220,136 (139 ) 219,997 — 158,204 61,793 Corporate bonds 108,968 (110 ) 108,858 — 74,850 34,008 Subtotal $ 336,518 $ (249 ) $ 336,269 $ — $ 239,718 $ 96,551 Level 3: — — — — — — Total $ 426,492 $ (249 ) $ 426,243 $ 89,974 $ 239,718 $ 96,551 |
Reconciliation of Beginning and Ending Balances of Acquisition-Related Accrued Contingent Consideration | The following table presents a reconciliation of the beginning and ending balances of acquisition-related accrued contingent consideration using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Beginning balance $ 318 $ 1,974 $ 2,143 $ 975 Obligations assumed — — — 1,200 Change in fair value — — (75 ) 455 Settlements — — (1,750 ) (656 ) Ending balance $ 318 $ 1,974 $ 318 $ 1,974 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Change in Carrying Amount of Goodwill | The change in carrying amount of goodwill for the nine months ended September 30, 2019 was as follows (in thousands): Goodwill as of December 31, 2018 $ 9,494 Goodwill recorded in connection with acquisition 9,453 Effects of foreign currency translation (111 ) Goodwill as of September 30, 2019 $ 18,836 |
Schedule of Intangible Assets | Intangible assets consisted of the following (in thousands, except years): As of September 30, 2019 Weighted- Average Useful Life in Years Gross Carrying Value Accumulated Amortization Net Carrying Value Customer relationships 7.0 $ 1,448 $ (335 ) $ 1,113 Completed technology 4.8 19,855 (5,686 ) 14,169 $ 21,303 $ (6,021 ) $ 15,282 As of December 31, 2018 Weighted- Gross Carrying Value Accumulated Amortization Net Carrying Value Customer relationships 6.9 $ 1,554 $ (221 ) $ 1,333 Completed technology 5.7 9,180 (3,022 ) 6,158 $ 10,734 $ (3,243 ) $ 7,491 |
Schedule of Intangible Asset Amortization Expense | We classified intangible asset amortization expense in the accompanying condensed consolidated statements of operations and comprehensive income (loss) as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Cost of revenue $ 1,128 $ 456 $ 2,670 $ 1,353 Sales and marketing 53 62 168 159 Total $ 1,181 $ 518 $ 2,838 $ 1,512 |
Schedule of Finite-Lived Intangible Assets Estimated Remaining Amortization Expense | The following table presents our estimates of remaining amortization expense for finite-lived intangible assets at September 30, 2019 (in thousands): Remainder of 2019 $ 1,181 2020 4,387 2021 4,169 2022 3,624 2023 1,272 Thereafter 649 Total amortization expense $ 15,282 |
Convertible Senior Notes (Table
Convertible Senior Notes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Convertible Debt | The Notes consisted of the following (in thousands): As of September 30, 2019 As of December 31, 2018 2023 Notes 2024 Notes 2026 Notes 2023 Notes Liability: Principal $ 84,759 $ 400,000 $ 400,000 $ 230,000 Less: debt discount and issuance costs, net of amortization (17,680 ) (76,200 ) (100,080 ) (56,353 ) Net carrying amount $ 67,079 $ 323,800 $ 299,920 $ 173,647 Equity, net of issuance costs $ 46,474 $ 69,749 $ 93,380 $ 57,251 The following table presents details of our convertible senior notes, which are further discussed below (original principal in thousands): Month Issued Maturity Date Original Principal (including over-allotment) Coupon Interest Rate Effective Interest Rate Conversion Rate Initial Conversion Price 2023 Notes May 2018 June 1, 2023 $ 230,000 0.5 % 7.00 % $ 22.5572 $ 44.33 2024 Notes August 2019 August 1, 2024 $ 400,000 0.5 % 4.96 % $ 5.2809 $ 189.36 2026 Notes August 2019 August 1, 2026 $ 400,000 1.0 % 5.41 % $ 5.2809 $ 189.36 |
Summary of Interest Expense | The following table sets forth interest expense recognized related to the Notes (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Contractual interest expense $ 1,005 $ 288 $ 1,580 $ 425 Amortization of debt issuance costs and discount 5,436 2,672 10,949 3,933 Total $ 6,441 $ 2,960 $ 12,529 $ 4,358 |
Equity Awards (Tables)
Equity Awards (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | Stock option activity during the nine months ended September 30, 2019 consisted of the following (in thousands, except weighted-average information): Options Outstanding Weighted- Average Exercise Price Options outstanding at December 31, 2018 4,049 $ 12.48 Granted 312 73.03 Exercised (1,293 ) 10.61 Canceled/forfeited (268 ) 18.53 Options outstanding at September 30, 2019 2,800 $ 19.51 |
Schedule of RSU Activity | Restricted stock unit, or RSU, activity during the nine months ended September 30, 2019 consisted of the following (in thousands, except weighted-average information): Awards Outstanding Weighted- Average Grant Date Fair Value RSUs outstanding at December 31, 2018 1,215 $ 31.93 Granted 686 83.01 Vested (248 ) 33.87 Canceled/forfeited (179 ) 37.34 RSUs outstanding at September 30, 2019 1,474 $ 54.71 |
Schedule of Stock-based Compensation Expense | We classified stock-based compensation expense in the accompanying consolidated statements of operations and comprehensive income (loss) as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Cost of revenue $ 431 $ 226 $ 1,148 $ 571 Research and development 1,659 828 4,014 2,782 Sales and marketing 3,471 1,641 8,822 4,411 General and administrative 3,275 1,687 8,211 4,301 Total $ 8,836 $ 4,382 $ 22,195 $ 12,065 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease-Related Assets and Liabilities | The table below presents lease-related assets and liabilities recorded on the condensed consolidated balance sheet (in thousands): Classification As of September 30, 2019 Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 34,325 Liabilities Operating lease liabilities (current) Accrued expenses and other current liabilities $ 5,818 Operating lease liabilities (noncurrent) Operating lease liabilities 30,307 Total lease liabilities $ 36,125 |
Lease Costs and Supplemental Information | The table below presents supplemental information related to operating leases during the nine months ended September 30, 2019 (in thousands, except weighted-average information): Cash paid for amounts included in the measurement of operating lease liabilities $ 4,468 Weighted-average remaining lease term (in years) 6.2 Weighted-average discount rate 6.2 % The following lease costs were included in our condensed consolidated statements of operations and comprehensive income (loss) as follows (in thousands): Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 1,943 $ 4,961 Short-term lease cost 339 1,053 Variable lease cost 511 1,294 Total lease cost $ 2,793 $ 7,308 |
Undiscounted Cash Flows for Operating Lease Liabilities | The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the operating lease liabilities recorded on the condensed consolidated balance sheet as of September 30, 2019 (in thousands): Remainder of 2019 $ 1,884 2020 7,989 2021 7,477 2022 6,894 2023 5,535 2024 5,317 Thereafter 9,075 Total minimum lease payments 44,171 Less imputed interest (8,046 ) Present value of future minimum lease payments 36,125 Less current obligations under leases (5,818 ) Long-term lease obligations $ 30,307 |
Minimum Lease Payments Prior to Adoption of ASC 842 | Minimum lease payments under operating leases with non-cancelable terms in excess of one year as of December 31, 2018, were as follows (in thousands): 2019 $ 6,389 2020 6,781 2021 6,326 2022 6,276 2023 5,163 Thereafter 9,427 Total minimum lease payments $ 40,362 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes and Effective Tax Rates | The following table presents details of the benefit of income taxes and our effective tax rates (in thousands, except percentages): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Benefit of income taxes $ (8,663 ) $ (2,643 ) $ (26,456 ) $ (5,507 ) Effective tax rate (58.1 )% 32.3 % (88.2 )% 92.2 % |
Basic and Diluted Net Income _2
Basic and Diluted Net Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Net Income Per Share | The following table presents the computation of net income (loss) per share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Numerator: Net income (loss) attributable to common stockholders $ (6,240 ) $ 10,821 $ (3,545 ) $ 11,479 Denominator: Weighted-average shares used to compute net income (loss) per share attributable to common stockholders, basic 63,966 61,103 62,842 60,618 Effect of dilutive securities: Convertible senior notes — 672 — 226 Contingently issuable shares — 21 — 25 Employee stock awards — 3,763 — 3,432 Weighted-average shares used to compute net income (loss) per share attributable to common stockholders, diluted 63,966 65,559 62,842 64,301 Net income (loss) per share attributable to common stockholders, basic and diluted $ (0.10 ) $ 0.18 $ (0.06 ) $ 0.19 Net income (loss) per share attributable to common stockholders, diluted $ (0.10 ) $ 0.17 $ (0.06 ) $ 0.18 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following weighted-average equivalent shares of common stock, excluding the impact of the treasury stock method, were excluded from the diluted net income (loss) per share calculation because their inclusion would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2019 2018 2019 2018 Options to purchase common stock 3,023 23 3,356 504 Unvested restricted stock units 1,460 12 1,388 157 Convertible senior notes 5,715 — 5,366 — Total shares excluded from net loss per share 10,198 35 10,110 661 |
Significant Accounting Polici_3
Significant Accounting Policies (Detail) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 34,325 | |
Operating lease liabilities | $ 36,125 | |
ASU 2018-11 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 24,800 | |
Operating lease liabilities | $ 0 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 103,397 | $ 62,589 | $ 261,460 | $ 164,420 |
Cost of revenue | 9,645 | 5,810 | 26,940 | 16,083 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 74,710 | 43,176 | 185,388 | 114,615 |
International | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 28,687 | 19,413 | 76,072 | 49,805 |
Subscription-based software license | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 54,332 | 28,822 | 125,981 | 72,781 |
Cost of revenue | 1,082 | 521 | 2,930 | 1,647 |
PCS and services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 49,065 | 33,767 | 135,479 | 91,639 |
Cost of revenue | $ 8,563 | $ 5,289 | $ 24,010 | $ 14,436 |
Geographic Concentration Risk | Revenue from Contract with Customer | United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration risk, percent | 12.30% | 10.70% | 10.50% | 10.40% |
Revenue - Contract Assets and C
Revenue - Contract Assets and Contract Liabilities (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Contract assets, current | $ 21,100,000 | $ 21,100,000 | $ 11,200,000 |
Contract assets, noncurrent | 29,300,000 | 29,300,000 | $ 16,500,000 |
Contract assets, impairment | $ 0 | 0 | |
Revenue recognized related to amounts that were included in deferred revenue | $ 75,400,000 | ||
Minimum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Transferred to receivables period | 12 months | ||
Maximum | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Transferred to receivables period | 24 months |
Revenue - Assets Recognized fro
Revenue - Assets Recognized from Costs to Obtain Contracts with Customers (Details) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Change in Capitalized Contract Costs [Roll Forward] | |
Balances at December 31, 2018 | $ 22,391,000 |
Additional contract costs deferred | 23,922,000 |
Amortization of deferred contract costs | (19,467,000) |
Balances at September 30, 2019 | 26,846,000 |
Deferred contract costs expected to be amortized within the next 12 months | 11,900,000 |
Impairments of assets related to deferred contract costs | $ 0 |
Revenue - Remaining Performance
Revenue - Remaining Performance Obligation (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation, amount | $ 271.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligation, amount | $ 236.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, period |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) $ in Thousands | Apr. 04, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | |||
Goodwill | $ 18,836 | $ 9,494 | |
ClearStory Data Inc. | |||
Business Acquisition [Line Items] | |||
Business combination acquired percentage | 100.00% | ||
Aggregate consideration payable in exchange for outstanding equity interest | $ 19,600 | ||
Cash consideration held back for customary indemnification matters amount | $ 3,000 | ||
Cash consideration held back for customary indemnification matters period | 18 months | ||
Acquisition related costs | $ 1,200 | ||
Business combination, employee retention compensation | $ 6,000 | ||
Business combination, employee retention compensation period | 24 months | ||
Goodwill | $ 9,500 | ||
Purchase price allocation, assets acquired and liabilities assumed, net | 600 | ||
ClearStory Data Inc. | Customer-related intangible assets | |||
Business Acquisition [Line Items] | |||
Completed technology intangible assets | 10,700 | ||
ClearStory Data Inc. | Customer-related intangible assets | Level 3 | |||
Business Acquisition [Line Items] | |||
Fair value of completed technology | $ 10,700 | ||
Amortization period | 4 years | ||
ClearStory Data Inc. | Customer-related intangible assets | Level 3 | Measurement Input, Discount Rate | |||
Business Acquisition [Line Items] | |||
Business combination, measurement input, discount rate | 0.20 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Cash and Cash Equivalents and Investments' Costs, Gross Unrealized Gains (Losses), and Fair Value by Major Security Type Recorded as Cash and Cash Equivalents or Short-Term or Long-Term Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 642,450 | $ 89,974 |
Short-term Investments | 231,976 | 239,718 |
Long-term Investments | 112,060 | 96,551 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 642,450 | 89,974 |
Unrealized Gains | 868 | |
Unrealized Losses | (249) | |
Cash and cash equivalents and investment, cost | 985,618 | 426,492 |
Cash and cash equivalents and investments, fair value | 986,486 | 426,243 |
Short-term Investments | 231,976 | 239,718 |
Long-term Investments | 112,060 | 96,551 |
Fair Value, Measurements, Recurring | Cash | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 630,790 | 78,194 |
Cash and cash equivalents, fair value | 630,790 | 78,194 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 11,660 | 11,780 |
Cash and cash equivalents, fair value | 11,660 | 11,780 |
Fair Value, Measurements, Recurring | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 11,660 | 11,780 |
Cash and cash equivalents, fair value | 11,660 | 11,780 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Investments, cost | 343,168 | 336,518 |
Unrealized Gains | 868 | |
Unrealized Losses | (249) | |
Investments, fair value | 344,036 | 336,269 |
Short-term Investments | 231,976 | 239,718 |
Long-term Investments | 112,060 | 96,551 |
Fair Value, Measurements, Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | |
Investments, cost | 63,347 | 1,313 |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Investments, fair value | 63,347 | 1,313 |
Short-term Investments | 63,347 | 1,313 |
Long-term Investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, cost | 0 | 6,101 |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Investments, fair value | 0 | 6,101 |
Short-term Investments | 0 | 5,351 |
Long-term Investments | 0 | 750 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Treasury and agency bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, cost | 195,353 | 220,136 |
Unrealized Gains | 251 | |
Unrealized Losses | (139) | |
Investments, fair value | 195,604 | 219,997 |
Short-term Investments | 131,202 | 158,204 |
Long-term Investments | 64,402 | 61,793 |
Fair Value, Measurements, Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, cost | 84,468 | 108,968 |
Unrealized Gains | 617 | |
Unrealized Losses | (110) | |
Investments, fair value | 85,085 | 108,858 |
Short-term Investments | 37,427 | 74,850 |
Long-term Investments | 47,658 | 34,008 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, cost | 0 | 0 |
Unrealized Gains | 0 | |
Unrealized Losses | 0 | |
Investments, fair value | 0 | 0 |
Short-term Investments | 0 | 0 |
Long-term Investments | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Line Items] | ||
Gross unrealized losses | $ 0.1 | |
Number of shares issued upon achievement of certain milestones (in shares) | 11,250 | |
Fair value of shares issued upon achievement of certain milestones | $ 0.8 | |
Number of shares previously earned and issued (in shares) | 10,205 | |
Payment for to former shareholders upon achievement of certain milestones | $ 1 | |
Fair value of convertible senior notes | 1,000 | |
Domestic Cash and Investments | ||
Fair Value Disclosures [Line Items] | ||
Cash and cash equivalents, restricted cash and investments | $ 978.9 | $ 417.9 |
Minimum | ||
Fair Value Disclosures [Line Items] | ||
Long-term investments maturity period | 1 year | |
Maximum | ||
Fair Value Disclosures [Line Items] | ||
Long-term investments maturity period | 2 years |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Beginning and Ending Balances of Acquisition-Related Accrued Contingent Consideration (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 318 | $ 1,974 | $ 2,143 | $ 975 |
Obligations assumed | 0 | 0 | 0 | 1,200 |
Change in fair value | 0 | 0 | (75) | 455 |
Settlements | 0 | 0 | (1,750) | (656) |
Ending balance | $ 318 | $ 1,974 | $ 318 | $ 1,974 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Change in Carrying Amount of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill as of December 31, 2018 | $ 9,494 |
Goodwill recorded in connection with acquisition | 9,453 |
Effects of foreign currency translation | (111) |
Goodwill as of September 30, 2019 | $ 18,836 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 21,303 | $ 10,734 |
Accumulated Amortization | (6,021) | (3,243) |
Net Carrying Value | $ 15,282 | $ 7,491 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Useful Life in Years | 7 years | 6 years 10 months 24 days |
Gross Carrying Value | $ 1,448 | $ 1,554 |
Accumulated Amortization | (335) | (221) |
Net Carrying Value | $ 1,113 | $ 1,333 |
Completed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted- Average Useful Life in Years | 4 years 9 months 18 days | 5 years 8 months 12 days |
Gross Carrying Value | $ 19,855 | $ 9,180 |
Accumulated Amortization | (5,686) | (3,022) |
Net Carrying Value | $ 14,169 | $ 6,158 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Intangible Asset Amortization Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 1,181 | $ 518 | $ 2,838 | $ 1,512 |
Cost of revenue | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 1,128 | 456 | 2,670 | 1,353 |
Sales and marketing | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 53 | $ 62 | $ 168 | $ 159 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets Estimated Remaining Amortization Expense (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2019 | $ 1,181 | |
2020 | 4,387 | |
2021 | 4,169 | |
2022 | 3,624 | |
2023 | 1,272 | |
Thereafter | 649 | |
Net Carrying Value | $ 15,282 | $ 7,491 |
Convertible Senior Notes - Summ
Convertible Senior Notes - Summary of Debt (Details) - Convertible Senior Notes | 3 Months Ended | |||
Sep. 30, 2019USD ($)$ / shares | Jun. 30, 2018USD ($)$ / shares | Aug. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Convertible Senior Note due 2023, 0.5% | ||||
Debt Instrument [Line Items] | ||||
Original Principal (including over-allotment) | $ 84,759,000 | $ 230,000,000 | $ 230,000,000 | |
Coupon Interest Rate | 0.50% | |||
Effective Interest Rate | 7.00% | |||
Conversion Rate | 0.0225572 | |||
Initial Conversion Price | $ / shares | $ 44.33 | $ 44.33 | ||
Principal | $ 84,759,000 | $ 230,000,000 | 230,000,000 | |
Less: debt discount and issuance costs, net of amortization | (17,680,000) | (56,353,000) | ||
Net carrying amount | 67,079,000 | 173,647,000 | ||
Equity, net of issuance costs | 46,474,000 | $ 57,251,000 | ||
Convertible Senior Note due 2024, 0.50% | ||||
Debt Instrument [Line Items] | ||||
Original Principal (including over-allotment) | $ 400,000,000 | $ 400,000,000 | ||
Coupon Interest Rate | 0.50% | 0.50% | ||
Effective Interest Rate | 4.96% | |||
Conversion Rate | 0.0052809 | |||
Initial Conversion Price | $ / shares | $ 189.36 | |||
Principal | $ 400,000,000 | $ 400,000,000 | ||
Less: debt discount and issuance costs, net of amortization | (76,200,000) | |||
Net carrying amount | 323,800,000 | |||
Equity, net of issuance costs | 69,749,000 | |||
Convertible Senior Note due 2026, 1.0% | ||||
Debt Instrument [Line Items] | ||||
Original Principal (including over-allotment) | $ 400,000,000 | $ 400,000,000 | ||
Coupon Interest Rate | 1.00% | 1.00% | ||
Effective Interest Rate | 5.41% | |||
Conversion Rate | 0.0052809 | |||
Initial Conversion Price | $ / shares | $ 189.36 | |||
Principal | $ 400,000,000 | $ 400,000,000 | ||
Less: debt discount and issuance costs, net of amortization | (100,080,000) | |||
Net carrying amount | 299,920,000 | |||
Equity, net of issuance costs | $ 93,380,000 |
Convertible Senior Notes - Addi
Convertible Senior Notes - Additional Information (Details) | Jan. 01, 2020day | Sep. 30, 2019USD ($)day$ / optionshares | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($)day$ / option | Sep. 30, 2019USD ($)$ / option | Sep. 30, 2018USD ($) | Aug. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Derivative [Line Items] | ||||||||
Capped calls, cost | $ 87,400,000 | $ 19,100,000 | ||||||
Capped calls, deferred tax asset | 21,600,000 | $ 21,600,000 | $ 4,600,000 | |||||
Debt Instrument [Line Items] | ||||||||
Loss on induced conversion and debt extinguishment | $ 20,507,000 | $ 0 | 20,507,000 | $ 0 | ||||
Loss on induced conversion and debt extinguishment | $ 20,507,000 | $ 0 | ||||||
Price Risk Derivative | ||||||||
Derivative [Line Items] | ||||||||
Capped calls, initial strike price (in dollars per share) | $ / option | 189.36 | 44.33 | 189.36 | |||||
Capped calls, cap price (in dollars per share) | $ / option | 315.60 | 62.22 | 315.60 | |||||
Convertible Senior Note due 2023, 0.5% | Debt Instrument, Conversion, Option Two | Convertible Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Loss on induced conversion and debt extinguishment | $ 20,500,000 | |||||||
Convertible debt, consideration given in excess of original conversion terms | 8,200,000 | |||||||
Loss on induced conversion and debt extinguishment | (12,300,000) | |||||||
Convertible Senior Notes | Convertible Senior Note due 2023, 0.5% | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 84,759,000 | $ 230,000,000 | $ 84,759,000 | $ 230,000,000 | ||||
Coupon Interest Rate | 0.50% | |||||||
If-converted value in excess of principal | 120,600,000 | |||||||
Convertible Senior Notes | Convertible Senior Note due 2023, 0.5% | Debt Instrument, Conversion, Option One | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible debt, threshold trading days | day | 20 | 20 | ||||||
Convertible debt, threshold consecutive trading days | day | 30 | 30 | ||||||
Convertible debt, threshold percentage of stock price trigger | 130.00% | 130.00% | ||||||
Convertible debt, converted instrument, original amount | $ 145,200,000 | |||||||
Convertible Senior Notes | Convertible Senior Note due 2023, 0.5% | Debt Instrument, Conversion, Option Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible debt, threshold trading days | day | 5 | |||||||
Convertible debt, threshold consecutive trading days | day | 5 | |||||||
Convertible debt, threshold percentage of stock price trigger | 98.00% | |||||||
Convertible Senior Notes | Convertible Senior Notes Due 2023, 2024, 2026 | Debt Instrument, Conversion, Option One | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible debt, converted instrument, original amount | 145,400,000 | |||||||
Convertible Senior Notes | Convertible Senior Notes due 2023, Over-Allotment Option, 0.5% | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 30,000,000 | |||||||
Convertible Senior Notes | Convertible Senior Note due 2024, 0.50% | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | |||||
Coupon Interest Rate | 0.50% | 0.50% | 0.50% | |||||
Convertible Senior Notes | Convertible Senior Note due 2026, 1.0% | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | |||||
Coupon Interest Rate | 1.00% | 1.00% | 1.00% | |||||
Convertible Senior Notes | Convertible Senior Notes due 2024, Over-Allotment Option, 0.5% | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 50,000,000 | |||||||
Convertible Senior Notes | Convertible Senior Notes due 2026, Over-Allotment Option, 1.0% | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal | $ 50,000,000 | |||||||
Convertible Senior Notes | Convertible Senior Notes due 2024 & 2026, 0.50%, 1.0% | Debt Instrument, Conversion, Option One | Forecast | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible debt, threshold trading days | day | 20 | |||||||
Convertible debt, threshold consecutive trading days | day | 30 | |||||||
Convertible debt, threshold percentage of stock price trigger | 130.00% | |||||||
Convertible Senior Notes | Convertible Senior Notes due 2024 & 2026, 0.50%, 1.0% | Debt Instrument, Conversion, Option Two | Forecast | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible debt, threshold trading days | day | 5 | |||||||
Convertible debt, threshold consecutive trading days | day | 5 | |||||||
Convertible debt, threshold percentage of stock price trigger | 98.00% | |||||||
Class A Common Stock | ||||||||
Derivative [Line Items] | ||||||||
Capped calls, retirement of common stock (in shares) | shares | 285,466 | |||||||
Class A Common Stock | Debt Instrument, Conversion, Option Two | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible debt, converted instrument, shares issued | shares | 2,200,000 |
Convertible Senior Notes - Su_2
Convertible Senior Notes - Summary of Interest Expense (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Debt Instrument [Line Items] | |||||||
Amortization of debt issuance costs and discount | $ 10,949,000 | $ 3,933,000 | |||||
Convertible Senior Notes | Convertible Senior Note due 2026, 1.0% | |||||||
Debt Instrument [Line Items] | |||||||
Principal | $ 400,000,000 | 400,000,000 | $ 400,000,000 | ||||
Less: debt discount and issuance costs, net of amortization | (100,080,000) | (100,080,000) | |||||
Long-term Debt, Gross | 299,920,000 | 299,920,000 | |||||
Equity, net of issuance costs | 93,380,000 | 93,380,000 | |||||
Convertible Senior Notes | Convertible Senior Note due 2023, 0.5% | |||||||
Debt Instrument [Line Items] | |||||||
Principal | 84,759,000 | 84,759,000 | $ 230,000,000 | $ 230,000,000 | |||
Less: debt discount and issuance costs, net of amortization | (17,680,000) | (17,680,000) | (56,353,000) | ||||
Long-term Debt, Gross | 67,079,000 | 67,079,000 | 173,647,000 | ||||
Equity, net of issuance costs | 46,474,000 | 46,474,000 | $ 57,251,000 | ||||
Convertible Senior Notes | Convertible Senior Note due 2024, 0.50% | |||||||
Debt Instrument [Line Items] | |||||||
Principal | 400,000,000 | 400,000,000 | $ 400,000,000 | ||||
Less: debt discount and issuance costs, net of amortization | (76,200,000) | (76,200,000) | |||||
Long-term Debt, Gross | 323,800,000 | 323,800,000 | |||||
Equity, net of issuance costs | 69,749,000 | 69,749,000 | |||||
Convertible Senior Notes | Convertible senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Contractual interest expense | 1,005,000 | $ 288,000 | 1,580,000 | 425,000 | |||
Amortization of debt issuance costs and discount | 5,436,000 | 2,672,000 | 10,949,000 | 3,933,000 | |||
Total | $ 6,441,000 | $ 2,960,000 | $ 12,529,000 | $ 4,358,000 |
Equity Awards - Schedule of Sto
Equity Awards - Schedule of Stock Option Activity (Details) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Options Outstanding | |
Options outstanding, beginning balance (in shares) | shares | 4,049,000 |
Granted (in shares) | shares | 312,000 |
Exercised (in shares) | shares | (1,293,000) |
Canceled/forfeited (in shares) | shares | (268,000) |
Options outstanding, ending balance (in shares) | shares | 2,800,000 |
Weighted-Average Exercise Price | |
Weighted-average exercise price, beginning balance (in dollars per share) | $ / shares | $ 12.48 |
Weighted-average exercise price, granted (in dollars per share) | $ / shares | 73.03 |
Weighted-average exercise price, exercised (in dollars per share) | $ / shares | 10.61 |
Weighted-average exercise price, canceled/forfeited (in dollars per share) | $ / shares | 18.53 |
Weighted-average exercise price, ending balance (in dollars per share) | $ / shares | $ 19.51 |
Equity Awards - Additional Info
Equity Awards - Additional Information (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost related to unvested stock options | $ 14.6 |
Weighted-average period, expected to be recognized | 2 years 1 month 6 days |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted-average period, expected to be recognized | 2 years 6 months |
Unrecognized compensation expense, related to unvested RSUs | $ 65.8 |
Equity Awards - Schedule of RSU
Equity Awards - Schedule of RSU Activity (Details) - Restricted Stock Units | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
Awards Outstanding | |
Beginning balance (in shares) | shares | 1,215,000 |
Granted (in shares) | shares | 686,000 |
Vested (in shares) | shares | (248,000) |
Canceled/forfeited (in shares) | shares | (179,000) |
Ending balance (in shares) | shares | 1,474,000 |
Weighted-Average Grant Date Fair Value | |
Beginning balance (in dollars per share) | $ / shares | $ 31.93 |
Granted (in dollars per share) | $ / shares | 83.01 |
Vested (in dollars per share) | $ / shares | 33.87 |
Canceled/forfeited (in dollars per share) | $ / shares | 37.34 |
Ending balance (in dollars per share) | $ / shares | $ 54.71 |
Equity Awards - Schedule of S_2
Equity Awards - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total | $ 8,836 | $ 4,382 | $ 22,195 | $ 12,065 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total | 431 | 226 | 1,148 | 571 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total | 1,659 | 828 | 4,014 | 2,782 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total | 3,471 | 1,641 | 8,822 | 4,411 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Total | $ 3,275 | $ 1,687 | $ 8,211 | $ 4,301 |
Leases - Lease-Related Assets a
Leases - Lease-Related Assets and Liabilities (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease right-of-use assets | $ 34,325 |
Operating lease liabilities (current) | 5,818 |
Operating lease liabilities (noncurrent) | 30,307 |
Total lease liabilities | $ 36,125 |
Leases - Lease Costs (Details)
Leases - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,943 | $ 4,961 |
Short-term lease cost | 339 | 1,053 |
Variable lease cost | 511 | 1,294 |
Total lease cost | $ 2,793 | $ 7,308 |
Leases - Supplemental Informati
Leases - Supplemental Information (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Leases [Abstract] | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 4,468 |
Weighted-average remaining lease term (in years) | 6 years 2 months 12 days |
Weighted-average discount rate | 6.20% |
Leases - Undiscounted Cash Flow
Leases - Undiscounted Cash Flows (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Remainder of 2019 | $ 1,884 |
2020 | 7,989 |
2021 | 7,477 |
2022 | 6,894 |
2023 | 5,535 |
2024 | 5,317 |
Thereafter | 9,075 |
Total minimum lease payments | 44,171 |
Less imputed interest | (8,046) |
Present value of future minimum lease payments | 36,125 |
Less current obligations under leases | (5,818) |
Operating lease liabilities | $ 30,307 |
Leases - Minimum Payments Prior
Leases - Minimum Payments Prior to Adoption of ASC 842 (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 6,389 |
2020 | 6,781 |
2021 | 6,326 |
2022 | 6,276 |
2023 | 5,163 |
Thereafter | 9,427 |
Total minimum lease payments | $ 40,362 |
Contingencies (Details)
Contingencies (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Indemnification | ||
Commitments And Contingencies [Line Items] | ||
Loss contingency accrual | $ 0 | $ 0 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes and Effective Tax Rates (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Benefit of income taxes | $ (8,663) | $ (2,643) | $ (26,456) | $ (5,507) |
Effective tax rate | (58.10%) | 32.30% | (88.20%) | 92.20% |
Discrete tax benefit related to excess tax benefits from stock option deductions | $ 19,300 |
Basic and Diluted Net Income _3
Basic and Diluted Net Income (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | |
Numerator: | |||||
Net income (loss) attributable to common stockholders | $ (6,240) | $ 10,821 | $ (3,545) | $ 11,479 | |
Denominator: | |||||
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders, basic | 63,966,000 | 61,103,000 | 62,842,000 | 60,618,000 | |
Effect of dilutive securities: | |||||
Convertible senior notes | 0 | 672,000 | 0 | 226,000 | |
Contingently issuable shares (in shares) | 0 | 21,000 | 0 | 25,000 | |
Employee stock awards (in shares) | 0 | 3,763,000 | 0 | 3,432,000 | |
Weighted-average shares used to compute net income (loss) per share attributable to common stockholders, diluted | 63,966,000 | 65,559,000 | 62,842,000 | 64,301,000 | |
Net income (loss) per share attributable to common stockholders, basic and diluted (in dollars per share) | $ (0.10) | $ 0.18 | $ (0.06) | $ 0.19 | |
Net income (loss) per share attributable to common stockholders, diluted (in dollars per share) | $ (0.10) | $ 0.17 | $ (0.06) | $ 0.18 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Securities excluded from calculation of earnings per share (in shares) | 10,198,000 | 35,000 | 10,110,000 | 661,000 | |
Options to purchase common stock | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Securities excluded from calculation of earnings per share (in shares) | 3,023,000 | 23,000 | 3,356,000 | 504,000 | |
Unvested restricted stock units | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Securities excluded from calculation of earnings per share (in shares) | 1,460,000 | 12,000 | 1,388,000 | 157,000 | |
Convertible senior notes | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Securities excluded from calculation of earnings per share (in shares) | 5,715,000 | 0 | 5,366,000 | 0 | |
Convertible Senior Notes | Convertible Senior Note due 2023, 0.5% | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Initial Conversion Price | $ 44.33 | $ 44.33 | $ 44.33 | ||
Convertible Senior Notes | Convertible Senior Notes due 2024 & 2026, 0.50%, 1.0% | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Initial Conversion Price | $ 189.36 | $ 189.36 |
Subsequent Event (Details)
Subsequent Event (Details) - Subsequent Event $ in Millions | Oct. 03, 2019USD ($) | Oct. 31, 2019ft² |
Subsequent Event [Line Items] | ||
Lessee, operating lease, square footage | ft² | 180,000 | |
Lessee, operating lease, term of contract | 84 months | |
Lessee, operating lease, number of extension periods | 2 | |
Lessee, operating lease, renewal term of contract | 60 months | |
Feature Labs Inc. | ||
Subsequent Event [Line Items] | ||
Business combination acquired percentage | 100.00% | |
Total consideration | $ 25.5 | |
Share-based compensation agreement, value, shares issued | $ 12.5 |
Uncategorized Items - ayx093020
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 64,197,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 64,197,000 |
Accounting Standards Update, All Other [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,438,000) |
Accounting Standards Update, All Other [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (1,579,000) |
Accounting Standards Update, All Other [Member] | Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 141,000 |