Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Feb. 15, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | FY | |
Trading Symbol | SVMK | |
Entity Registrant Name | SVMK Inc. | |
Entity Central Index Key | 1,739,936 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | true | |
Entity Small Business | false | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 126,644,497 | |
Entity Public Float | $ 803,964,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 153,807 | $ 35,345 |
Accounts receivable, net of allowance of $115 and $50 | 7,336 | 5,429 |
Deferred commissions, current | 1,981 | 1,225 |
Prepaid expenses and other current assets | 7,081 | 5,056 |
Total current assets | 170,205 | 47,055 |
Property and equipment, net | 117,718 | 131,331 |
Capitalized internal-use software, net | 33,280 | 41,493 |
Acquisition intangible assets, net | 9,324 | 13,594 |
Goodwill, net | 336,861 | 336,861 |
Deferred commissions, non-current | 3,317 | 2,006 |
Other assets | 8,643 | 5,749 |
Total assets | 679,348 | 578,089 |
Current liabilities: | ||
Accounts payable | 2,804 | 3,380 |
Accrued expenses and other current liabilities | 9,692 | 10,173 |
Accrued compensation | 20,070 | 14,910 |
Deferred revenue | 101,236 | 84,818 |
Debt, current | 1,900 | 2,032 |
Total current liabilities | 135,702 | 115,313 |
Deferred tax liabilities | 4,246 | 4,168 |
Debt, non-current | 215,515 | 316,289 |
Financing obligation on leased facility | 92,009 | 93,385 |
Other non-current liabilities | 12,493 | 8,891 |
Total liabilities | 459,965 | 538,046 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Preferred stock ($0.00001 par value; 100,000 shares authorized; no shares issued and outstanding) | 0 | 0 |
Common stock ($0.00001 par value; 800,000 shares authorized; 125,818 and 101,383 shares issued and outstanding) | 1 | 1 |
Additional paid-in capital | 551,937 | 217,594 |
Accumulated other comprehensive income (loss) | (287) | 19 |
Accumulated deficit | (332,268) | (177,571) |
Total stockholders’ equity | 219,383 | 40,043 |
Total liabilities and stockholders’ equity | $ 679,348 | $ 578,089 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Allowance for accounts receivable | $ 115 | $ 50 |
Preferred stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized (in shares) | 800,000,000 | 800,000,000 |
Common stock, shares issued (in shares) | 125,818,000 | 101,383,000 |
Common stock, shares outstanding (in shares) | 125,818,000 | 101,383,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Income Statement [Abstract] | ||||
Revenue | $ 254,324 | $ 218,773 | $ 207,295 | |
Cost of revenue | [1],[2] | 77,982 | 62,679 | 67,755 |
Gross profit | 176,342 | 156,094 | 139,540 | |
Operating expenses: | ||||
Research and development | [2] | 106,188 | 53,660 | 37,985 |
Sales and marketing | [1],[2] | 95,783 | 73,511 | 73,970 |
General and administrative | [2] | 97,339 | 47,940 | 36,832 |
Restructuring | [2] | 3,525 | 1,785 | 25,256 |
Total operating expenses | 302,835 | 176,896 | 174,043 | |
Loss from operations | (126,493) | (20,802) | (34,503) | |
Interest expense | 27,801 | 26,865 | 32,893 | |
Other non-operating income (expense), net | (298) | 7,610 | (4,250) | |
Loss before income taxes | (154,592) | (40,057) | (71,646) | |
Provision for (benefit from) income taxes | 148 | (16,047) | 4,704 | |
Net loss | $ (154,740) | $ (24,010) | $ (76,350) | |
Net loss per share, basic and diluted | $ (1.43) | $ (0.24) | $ (0.77) | |
Weighted-average shares used in computing basic and diluted net loss per share | 107,900 | 100,244 | 98,539 | |
[1] | Includes amortization of acquisition intangible assets as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Cost of revenue $1,952 $2,040 $4,505 Sales and marketing 2,318 2,421 4,267 Amortization of acquisition intangible assets $4,270 $4,461 $8,772 | |||
[2] | Includes stock-based compensation, net of amounts capitalized as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Cost of revenue $8,931 $2,503 $4,114 Research and development 48,739 9,918 5,756 Sales and marketing 19,046 8,069 8,712 General and administrative 55,054 14,496 12,301 Restructuring — — 2,074 Stock-based compensation, net of amounts capitalized $131,770 $34,986 $32,957 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allocated share-based compensation expense | $ 131,770 | $ 34,986 | $ 32,957 |
Amortization of acquisition intangible assets | 4,270 | 4,461 | 8,772 |
Cost of revenue | |||
Allocated share-based compensation expense | 8,931 | 2,503 | 4,114 |
Amortization of acquisition intangible assets | 1,952 | 2,040 | 4,505 |
Research and development | |||
Allocated share-based compensation expense | 48,739 | 9,918 | 5,756 |
Sales and marketing | |||
Allocated share-based compensation expense | 19,046 | 8,069 | 8,712 |
Amortization of acquisition intangible assets | 2,318 | 2,421 | 4,267 |
General and administrative | |||
Allocated share-based compensation expense | 55,054 | 14,496 | 12,301 |
Restructuring | |||
Allocated share-based compensation expense | $ 0 | $ 0 | $ 2,074 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net loss | $ (154,740) | $ (24,010) | $ (76,350) | |
Other comprehensive income (loss): | ||||
Foreign currency translation gains (losses) | [1] | (306) | (68) | 87 |
Currency translation adjustment upon subsidiary liquidation | [1] | 0 | 0 | 1,397 |
Total other comprehensive income (loss) | [1] | (306) | (68) | 1,484 |
Total comprehensive loss | $ (155,046) | $ (24,078) | $ (74,866) | |
[1] | Net of tax effect which was not material. |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit | |
Beginning Balance at Dec. 31, 2015 | $ 79,186 | $ 1 | $ 159,180 | $ (1,397) | $ (78,598) | |
Begining balance, Shares at Dec. 31, 2015 | 98,874,000 | |||||
Common stock issued upon stock option exercise | $ 201 | $ 0 | 201 | 0 | 0 | |
Common stock issued upon stock option exercise, Shares | 45,444 | 46,000 | ||||
Common stock issued upon vesting of restricted stock units, net of tax withholding | $ (11,934) | $ 0 | (11,934) | 0 | 0 | |
Common stock issued upon vesting of restricted stock units, net of tax withholding, Shares | 1,566,000 | |||||
Stock-based compensation expense | 39,047 | $ 0 | 39,047 | 0 | 0 | |
Comprehensive income (loss) | 1,484 | [1] | 0 | 0 | 1,484 | 0 |
Net loss | (76,350) | 0 | 0 | 0 | (76,350) | |
Ending balance at Dec. 31, 2016 | 33,021 | $ 1 | 186,494 | 87 | (153,561) | |
Ending balance, Shares at Dec. 31, 2016 | 100,486,000 | |||||
Cumulative-effect adjustment upon adoption | ASC 606 | 1,387 | $ 0 | 0 | 0 | 1,387 | |
Common stock issued upon stock option exercise | $ 153 | $ 0 | 153 | 0 | 0 | |
Common stock issued upon stock option exercise, Shares | 35,352 | 35,000 | ||||
Common stock issued upon vesting of restricted stock units, net of tax withholding | $ (6,934) | $ 0 | (6,934) | 0 | 0 | |
Common stock issued upon vesting of restricted stock units, net of tax withholding, Shares | 879,000 | |||||
Repurchase of common stock | (144) | $ 0 | (144) | 0 | 0 | |
Repurchase of common stock, Shares | (11,791) | |||||
Forfeiture of restricted stock awards | (80) | $ 0 | (80) | 0 | 0 | |
Forfeiture of restricted stock awards, Shares | (5,000) | |||||
Stock-based compensation expense | 38,105 | $ 0 | 38,105 | 0 | 0 | |
Comprehensive income (loss) | (68) | [1] | 0 | 0 | (68) | 0 |
Net loss | (24,010) | 0 | 0 | 0 | (24,010) | |
Ending balance at Dec. 31, 2017 | 40,043 | $ 1 | 217,594 | 19 | (177,571) | |
Ending balance, Shares at Dec. 31, 2017 | 101,383,000 | |||||
Issuance of common stock in connection with initial public offering and concurrent private placement, net of underwriting discounts and issuance costs | 225,336 | $ 0 | 225,336 | 0 | 0 | |
Issuance of common stock in connection with initial public offering and concurrent private placement, net of underwriting discounts and issuance costs, Shares | 20,583,000 | |||||
Common stock issued upon stock option exercise | $ 494 | $ 0 | 494 | 0 | 0 | |
Common stock issued upon stock option exercise, Shares | 81,849 | 82,000 | ||||
Common stock issued upon vesting of restricted stock units, net of tax withholding | $ (25,807) | $ 0 | (25,807) | 0 | 0 | |
Common stock issued upon vesting of restricted stock units, net of tax withholding, Shares | 3,771,000 | |||||
Repurchase of common stock | (16) | $ 0 | (16) | 0 | 0 | |
Repurchase of common stock, Shares | (1,159) | |||||
Stock-based compensation expense | 134,379 | $ 0 | 134,379 | 0 | 0 | |
Comprehensive income (loss) | (306) | [1] | 0 | 0 | (306) | 0 |
Net loss | (154,740) | 0 | 0 | 0 | (154,740) | |
Ending balance at Dec. 31, 2018 | 219,383 | $ 1 | 551,937 | (287) | (332,268) | |
Ending balance, Shares at Dec. 31, 2018 | 125,818,000 | |||||
Cumulative-effect adjustment upon adoption | ASU 2017-09 | $ 0 | $ 0 | $ (43) | $ 0 | $ 43 | |
[1] | Net of tax effect which was not material. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net loss | $ (154,740) | $ (24,010) | $ (76,350) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 47,166 | 42,391 | 36,698 |
Stock-based compensation expense, net of amounts capitalized | 131,770 | 34,986 | 32,957 |
Amortization of debt discount and issuance costs | 902 | 876 | 1,879 |
Deferred income taxes | (508) | (16,848) | 4,420 |
Loss on debt extinguishment | 941 | 194 | 0 |
Gain on sale of a private company investment | (999) | (6,750) | 0 |
Impairment of property and equipment | 2,821 | 0 | 0 |
Derecognition of goodwill and intangible assets | 0 | 0 | 15,895 |
Other | 1,798 | (829) | 2,870 |
Changes in assets and liabilities: | |||
Accounts receivable | (1,958) | 675 | 27 |
Prepaid expenses and other assets | (5,565) | 867 | (3,508) |
Accounts payable and accrued liabilities | 3,564 | (2,061) | 8,682 |
Accrued interest on financing lease obligation, net of payments | (1,376) | 4,580 | 6,924 |
Accrued compensation | 5,203 | 2,327 | 783 |
Deferred revenue | 16,353 | 8,628 | 4,565 |
Net cash provided by operating activities | 45,372 | 45,026 | 35,842 |
Cash flows from investing activities | |||
Purchases of property and equipment | (9,981) | (32,488) | (30,419) |
Capitalized internal-use software | (12,052) | (15,319) | (15,834) |
Proceeds from sale of a private company investment and other | 999 | 15,453 | (650) |
Net cash used in investing activities | (21,034) | (32,354) | (46,903) |
Cash flows from financing activities | |||
Proceeds from initial public offering, net of underwriters' discounts and concurrent private placement | 232,509 | 0 | 0 |
Payments of deferred offering costs | (7,173) | 0 | 0 |
Proceeds from stock option exercises | 494 | 153 | 201 |
Employee payroll taxes paid for net share settlement of restricted stock units | (25,807) | (6,934) | (11,934) |
Payments to repurchase common stock | (16) | (144) | 0 |
Payment of deferred acquisition purchase consideration | 0 | 0 | (15,079) |
Proceeds from term and revolving debt issuance | 0 | 298,500 | 25,000 |
Repayment of debt | (104,050) | (298,883) | (3,090) |
Payment of debt issuance costs and other | (482) | (1,666) | 0 |
Proceeds from tenant improvement allowances under lease financing obligation | 0 | 8,360 | 5,516 |
Net cash provided by (used in) financing activities | 95,475 | (614) | 614 |
Effect of exchange rate changes on cash | (787) | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 119,026 | 12,058 | (10,447) |
Cash, cash equivalents and restricted cash at beginning of period | 35,345 | 23,287 | 33,734 |
Cash, cash equivalents and restricted cash at end of period | 154,371 | 35,345 | 23,287 |
Supplemental cash flow data: | |||
Interest paid for term debt | 20,466 | 19,864 | 19,828 |
Interest paid for financing obligation on leased facility | 8,152 | 2,038 | 6,908 |
Income taxes paid | 535 | 547 | 1,419 |
Non-cash investing and financing transactions: | |||
Stock compensation included in capitalized software costs | 2,609 | 3,119 | 5,867 |
Accrued unpaid capital expenditures | 322 | 1,214 | 9,343 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents | 153,807 | 35,345 | 23,287 |
Restricted cash (included in other assets) | $ 564 | $ 0 | $ 0 |
Restricted Cash, Noncurrent Asset, Statement of Financial Position Extensible List | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent |
Cash, cash equivalents and restricted cash at end of period | $ 154,371 | $ 35,345 | $ 23,287 |
Company Overview and Basis of P
Company Overview and Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Company Overview and Basis of Presentation | 1. Company Overview and Basis of Presentation Business SVMK Inc. (the “Company”) is a global provider of survey software products. The Company was incorporated in 2011 as a Delaware corporation and is the successor to operations originally begun in 1999. The Company’s headquarters are located in the United States and its international operations are primarily based in Ireland and Canada. Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the results of operations of the Company and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated. Certain other prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect total revenues, operating income or net income. On January 1, 2018, the Company adopted the requirements of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers Other Assets and Deferred Costs—Contracts with Customers Initial public offering and concurrent private placement On September 28, 2018, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 17,250,000 shares of common stock (including the additional 2,250,000 shares that were sold pursuant to the Underwriters’ option to purchase additional shares) at $12.00 per share. The Company received aggregate proceeds of $192.5 million, net of underwriters' discounts and commissions of $14.5 million. Immediately subsequent to the closing of the Company’s IPO, Salesforce Ventures LLC purchased 3,333,333 shares of common stock from the Company at the IPO price of $12.00 per share, and the Company received aggregate proceeds of $40.0 million. The Company’s net proceeds from the IPO and the concurrent private placement totaled $225.3 million after deducting offering costs of $7.2 million. Additionally, upon effectiveness of the registration statement for the Company's IPO, 2,574,499 net shares of Performance RSUs (as defined below) were released for awards where both a service condition and Performance Vesting Condition (as defined below) were met, and the Company recognized $89.9 million of stock-based compensation expense on an accelerated amortization method (see Notes 2 and 7 below for further discussion) and $21.4 million in payroll tax withholding obligations. The Company utilized a portion of its IPO proceeds to satisfy the payroll tax withholding obligations in the third quarter of 2018. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods covered by the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable. The Company’s most significant estimates and judgments involve valuation of the Company’s stock-based awards, including the determination of fair value of common stock prior to the completion of its IPO, valuation of deferred income tax assets, estimating the period of benefit for deferred commissions, valuation of acquired goodwill and intangibles from acquisitions, tax contingencies and legal contingencies. Segment Information The Company operates as a single operating segment. The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer, who reviews the Company’s operating results on a consolidated basis in order to make decisions about allocating resources and assessing performance for the entire company. The CODM uses one measure of profitability and does not segment the Company’s business for internal reporting. See Note 11 for additional information regarding the Company’s revenue and long-lived assets by geographic area. Related Party Transactions Certain members of the Company’s Board of Directors (“Board”) serve as board members, are executive officers of and/or (in some cases) are investors in companies that are customers and/or vendors of the Company. The Company recognized revenue from sales of its products to a substantial stockholder of $1.7 million, $2.1 million and $1.8 million during the years ended December 31, 2018, 2017 and 2016, respectively. Sales to a substantial stockholder represented less than 1.0% of the Company’s total revenue in each of the periods presented. The Company incurred related party expenses of $1.5 million, $0.8 million and $1.0 million during the years ended December 31, 2018, 2017 and 2016, respectively. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Revenue Recognition and Deferred Revenue The Company generates substantially all of its revenue from the sale of subscriptions to its survey software products including subscriptions to its purpose-built solutions. The revenue the Company generates from one purpose-built solution that is delivered and recognized at a point in time is not significant. The Company normally sells each of these products in separate contracts to its customers and each product, including purpose-built solutions, is distinct. The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price of its subscription agreements. The Company accounts for revenue contracts with customers through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, the Company satisfies a performance obligation. For subscription products, the Company provides customers the option of monthly, annual or multi-year contractual terms. In general, the Company’s customers elect contractual terms of one year or less. Subscription revenue is recognized on a daily basis ratably over the related subscription term beginning on the date the Company provides access to its survey product. Access to the Company’s subscription product is an obligation representing a series of distinct services (and which comprise a single performance obligation) that the Company provides to its end customer over the subscription term. The Company recognizes the majority of its revenue ratably because the customer benefits from access to the Company’s subscription products throughout the subscription term. The Company generally invoices its customers at the beginning of the term on a monthly or annual basis. The Company's contracts are generally non-cancellable and do not contain refund-type provisions. The Company’s contracts do not contain a significant amount of variable consideration as the price of its subscription offerings are generally fixed at contract inception. Based on the invoicing structure and related subscription term, the Company determined its contracts do not contain a financing component. The Company applied the practical expedient provided by ASC 606 and did not evaluate contracts of one year or less for the existence of a significant financing component. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether transfer of control to customers has occurred. The Company records contract liabilities to deferred revenue when cash payments are received or due. Deferred revenue consists of the unearned portion of customer billings. The Company recognized into revenue $83.3 million, $76.4 million and $72.0 million during the years ended December 31, 2018, 2017 and 2016, respectively, that was included in the deferred revenue balances at the beginning of each respective period. As of December 31, 2018, future estimated revenue related to performance obligations that are unsatisfied or partially unsatisfied at the end the reporting period was $111.0 million. The substantial majority of the unsatisfied performance obligations will be satisfied over the next twelve months. Deferred Commissions Certain commissions earned by the Company’s salesforce are considered to be incremental and recoverable costs of obtaining a contract with a customer. Such costs are deferred and amortized on a straight-line basis over their estimated period of benefit which is generally estimated as four years. The period of benefit was estimated by considering factors such as historical customer attrition rates, the useful life of the Company’s technology, and the impact of competition in its industry. Amortization of deferred commissions, included in sales and marketing expense line within the statements of operations was $1.6 million, $1.0 million and $0.5 million during the years ended December 31, 2018, 2017 and 2016 respectively. There was no impairment loss in relation to the deferred commissions for any period presented. Stock-Based Compensation The Company recognizes stock-based compensation expense for all share-based payments to employees based on the grant-date fair value of the Company’s common stock estimated in accordance with the provisions of Accounting Standards Codification (“ASC”) 718, Compensation‑Stock Compensation Stock Options and ESPP : The Company estimates the fair values of its stock options and shares issuable under the ESPP using the Black-Scholes-Merton option-pricing model for stock options granted at-the-money and ESPP shares issuable and Lattice-Binomial option valuation model for out-of-the-money stock option grants. The aforementioned valuation models require the input of key assumptions which are as follows: • Expected Term : As the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior, the Company determines the expected term based on the average period the stock options or ESPP are expected to remain outstanding. For awards granted at-the-money, the expected term is generally calculated as the midpoint of the stock options vesting term and contractual expiration. For awards granted out-of-the-money, the expected term was the midpoint of the stock options vesting term and contractual expiration adjusted to also consider the estimated period for those options to become in-the-money. For ESPP, the expected term is the applicable purchase periods within an offering period. • Expected Volatility : As the Company does not have sufficient trading history of its common stock, stock price volatility is estimated at the applicable grant date by taking the weighted-average historical volatility of a group of comparable publicly-traded companies over a period equal to the expected life of the options. • Expected Dividend Rate : The Company has not paid and does not anticipate paying cash dividends on its shares of common stock in the foreseeable future; therefore, the expected dividend yield is assumed to be zero. • Risk-Free Interest Rate : The Company determined the risk-free interest rate by using a weighted average assumption equivalent to the expected term based on the U.S. Treasury constant maturity rate as of the date of grant. Additionally, due to the absence of an active market for the Company’s common stock prior to its IPO, the Company obtained third-party valuations (prepared contemporaneously in connection with grants of share-based payments made prior to the Company’s IPO) to estimate the fair value of its common stock for purposes of measuring stock-based compensation expense to be recognized. The third-party valuations were prepared using methodologies, approaches, and assumptions consistent with the American Institute of Certified Public Accountants (“AICPA”) Accounting & Valuation Guide, Valuation of Privately-Held-Company Equity Securities Issued as Compensation • Market multiples of comparable public companies in the Company’s industry as indicated by their market capitalization and guideline merger and acquisition transactions; • The Company’s performance and market position relative to its competitors, who may change from time to time; • The Company’s historical financial results and estimated trends and prospects for its future performance; • The economic and competitive environment; • The likelihood and timeline of achieving a liquidity event, such as an IPO or sale of the Company, given prevailing market conditions; • Any adjustments necessary to recognize a lack of marketability for its common stock; and • Precedent sales of or offers to purchase its capital stock. For valuations subsequent to the Company’s IPO, its board of directors will determine the fair value of each share of underlying common stock based on the closing price of the Company’s common stock as reported on the date of the grant. Restricted Stock Units and Restricted Stock Awards : The fair value of the restricted stock units (including those that are performance-based) and restricted stock awards was determined based on the fair value of the Company’s common stock on the grant date. Beginning in the second quarter of 2015, the Company granted performance-based restricted stock units (“Performance RSUs”) that vest upon the satisfaction of both a service condition and a Performance Vesting Condition. The Performance Vesting Condition occurred upon the effectiveness of the registration statement for the Company's IPO, which was September 25, 2018. As a result, the Company recognized the cumulative amount of unrecognized stock-based compensation expense of $89.9 million for services already rendered using the accelerated attribution method. As of December 31, 2018, the remaining unamortized stock-based compensation related to these awards was $27.6 million, which the Company expects to recognize on an accelerated basis over the remaining weighted-average requisite service periods of 1.5 years (see Note 7 for additional discussion). Business Combinations When the Company acquires a business, the purchase consideration is allocated to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated respective fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require the Company to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and trade names from a market participant perspective, useful lives and discount rates. The Company’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to non-operating income (expense) in the consolidated statement of operations. Impairment of Long-Lived Assets Long-lived assets with finite lives include property and equipment, capitalized internal-use software and acquisition intangible assets. Long-lived assets are depreciated or amortized over their estimated useful lives which are as follows: Building 40 years Computer equipment 2 to 5 years Furniture, fixtures, and other assets 5 years Leasehold improvements Shorter of remaining lease term or 5 years Purchased software 3 years Capitalized internal-use software 3 years Acquisition intangible assets: customer relationships 5 to 7 years Acquisition intangible assets: trade name 2 to 10 years Acquisition intangible assets: technology 3 to 8 years The Company continually evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of depreciable or amortizable long-lived assets may warrant revision or that the remaining balance may not be recoverable. When factors indicate that long-lived assets should be evaluated for possible impairment, the Company uses an estimate of the related undiscounted future cash flows over the remaining life of the long-lived assets in measuring whether they are recoverable. If the estimated undiscounted future cash flows do not exceed the carrying value of the asset, a loss is recorded as the excess of the asset’s carrying value over its fair value. The Company did not recognize any impairment of long-lived assets during the year ended December 31, 2017. As further discussed in Note 13 below, during the year ended December 31, 2018, the Company impaired $2.8 million of leasehold improvements. As further discussed in Notes 6 and 13 below, during the year ended December 31, 2016, the Company derecognized $3.7 million of intangible assets. The Company believes that the carrying values of long-lived assets as of December 31, 2018 are recoverable. Goodwill is not amortized but rather tested for impairment at least annually, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. Goodwill impairment is recognized when the carrying value of goodwill exceeds the implied fair value of the Company. The Company did not recognize any impairment of goodwill during each of the years ended December 31, 2018 and 2017. As further discussed in Notes 6 and 13 below, during the year ended December 31, 2016, the Company derecognized $12.2 million of goodwill. Foreign Currencies The functional currency of the Company’s foreign subsidiaries is generally the U.S. Dollar. Monetary assets and liabilities are remeasured using foreign currency exchange rates at the end of the period, and non-monetary assets are remeasured based on historical exchange rates. Gains and losses due to foreign currency are the result of either the remeasurement of subsidiary balances or transactions denominated in currencies other than the foreign subsidiaries’ functional currency and are included in other non-operating income (expense), net in the statement of operations. For subsidiaries where the functional currency is the local currency, the assets and liabilities of those foreign subsidiaries are translated from their respective functional currencies into U.S. Dollars at the rates in effect at the balance sheet date and revenue and expense amounts are translated at a rate approximating the average exchange rate for the period. Foreign currency translation gains and losses are recorded to accumulated other comprehensive income (loss). During the year ended December 31, 2016, the Company substantially liquidated certain foreign subsidiaries and, in accordance with ASC 830, Foreign Currency Matters, derecognized the cumulative translation adjustment of $1.4 million in accumulated other comprehensive income (loss). As a result, the Company recognized a realized loss of $1.4 million within other non-operating income (expense) in the consolidated statement of operations. Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and accounts receivable. The Company places its cash and cash equivalents in banks, primarily in checking accounts and such amounts may at times exceed the federally insured limits. Cash equivalents consist of short-term money market funds (for which the Company had none in any of the periods presented), which are managed by reputable financial institutions. For purposes of its customer concentration disclosure, the Company defines a customer as an organization. An organization may consist of an individual paying user, multiple paying users within an organization or the organization itself. No single customer accounted for more than 10% of revenue during each of the years ended December 31, 2018, 2017 and 2016. No customers accounted for more than 10% of accounts receivable, net as of December 31, 2018 and 2017, respectively. Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurement Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the consolidated statements of comprehensive income until realized. See Note 4 for additional disclosures regarding fair value measurements. Private Company Investments As noted below under “ Accounting Pronouncements Recently Adopted Impairment of Investments The Company periodically reviews its investments for impairment. If the Company concludes that any of these investments are impaired, the Company determines whether such impairment is other-than-temporary. Factors considered to make such determination include the duration and severity of the impairment, the reason for the decline in value and the potential recovery period and the Company’s intent to sell. For debt securities, the Company also considers whether (1) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, and (2) the amortized cost basis cannot be recovered as a result of credit losses. If the investment is considered to be other-than-temporarily impaired, the Company will record the investment at fair value by recognizing an impairment within other non-operating income (expense) in the consolidated statement of operations and establishing a new carrying value for the investment. Derivative Financial Instruments From time to time, the Company may use derivative financial instruments consisting of interest rate swaps to manage cash flow exposure under its credit facilities and accounts for such derivative financial instruments in accordance with ASC 815, Accounting for Derivative Instruments and Hedging Activities Cash and Cash Equivalents Cash and cash equivalents primarily consist of cash on deposit with banks and investments in money market funds (for which the Company had none in any of the periods presented) with maturities of 90 days or less from the date of purchase. The Company also classifies amounts in transit from payment processors for customer credit card and debit card transactions as cash equivalents, because such amounts generally convert to cash within five days with little or no default risk. Accounts Receivable Accounts receivable are customer obligations that arise due to the time taken to settle transactions through direct customer payments. The Company bills in advance for monthly contracts and generally bills annually in advance for contracts with terms of one year or longer when it has an unconditional contractual right to consideration. The Company also recognizes an immaterial amount of contract assets, or unbilled receivables, primarily relating to rights to consideration for services completed but not billed at the reporting date. Unbilled receivables are classified as receivables when the Company has the right to invoice the customer. The Company records an allowance for doubtful accounts based upon its assessment of various factors including the Company’s historical experience, the age of a customers’ accounts receivable balance, a customers’ credit quality, current economic conditions, historical bad debt expense trends and other factors that may affect a customers’ ability to pay to determine the level of allowance required. Amounts deemed uncollectible are recorded to the allowance for doubtful accounts with an offsetting charge in the statements of operations. Property and Equipment Property and equipment, excluding buildings capitalized under build-to-suit lease arrangements which are discussed below, are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Expenditures that improve an asset or extend its estimated useful life are capitalized. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. Capitalized Internal-Use Software and Website Development Costs The Company incurs development costs relating to its online survey platform as well as other software solely for internal-use. Costs relating to the planning and post‑implementation phases of development are expensed as incurred. Costs incurred in the development phase are capitalized and included in capitalized internal-use software, net and amortized over their estimated useful life, generally three years. Maintenance and training costs are expensed as incurred. Lease Accounting Except for the Company’s San Mateo building lease which is accounted for as a build-to-suit lease, the Company leases facilities, datacenters, and equipment which are accounted for as operating leases (as further described in Note 8). Rent escalations and concession provisions are considered in determining the total estimated rent expense to be incurred and which is recognized over the lease term on a straight-line basis. The Company records the difference between the rent paid and the straight-line rent as a deferred rent liability in the accompanying consolidated balance sheets. As of December 31, 2018, the deferred rent balance was $7.5 million ($0.3 million included in accrued expenses and other current liabilities and $7.2 million in other non-current liabilities). As of December 31, 2017, the deferred rent balance was $4.8 million ($0.2 million included in accrued expenses and other current liabilities and $4.6 million in other non-current liabilities). For build-to-suit lease arrangements, the Company may be deemed to be the building owner during the construction period for accounting purposes. In that circumstance, the Company records an asset and liability for estimated construction costs incurred under a build-to-suit lease arrangement to the extent the Company is involved in the construction of structural improvements or takes construction risk prior to commencement of a lease. The Company additionally has entered into subleases for unoccupied leased office space. To the extent there are losses associated with the sublease, they are recognized in the period the sublease is executed. Gains are recognized over the sublease life. Any sublease payments received in excess of the straight-line rent payments for the sublease are recorded in other non-operating income (expense). Legal and Other Contingencies The Company accrues a liability for either claims arising in the ordinary course of business, assessments resulting from non-income-based audits or litigation when it is probable that a loss has been incurred and the amount is reasonably estimable, the determination of which requires significant judgment. See Note 8 for additional information pertaining to legal and other contingencies. Liability for Sabbatical Leave The Company provides a sabbatical leave program to its employees whereby the Company’s full-time employees are eligible for four weeks of paid time-off after four years of continuous service. The Company accounts for sabbatical leaves in accordance with ASC 710, Compensated Absences Advertising and Promotion Costs Expenses related to advertising, marketing and promotion of the Company’s product offerings are expensed as incurred. These costs mainly consist of search engine marketing related costs. The Company incurred $24.0 million, $17.6 million and $13.6 million during the years ended December 31, 2018, 2017 and 2016, respectively, which are included in sales and marketing expenses in the consolidated statements of operations. Cost of Revenue Cost of revenue consists primarily of expenses associated with the delivery and distribution of the Company’s platform for users of the Company’s online survey platform. Cost of revenue generally consist of infrastructure costs, personnel costs and other related costs. Infrastructure costs generally include expenses related to the operation of the Company’s data centers, such as data center equipment depreciation and facility costs (such as co-location rentals), website hosting costs, credit card processing fees, amortization of capitalized software, charity donations and external sample costs. Personnel costs include salaries and bonuses, stock-based compensation expense, other employee benefits and travel-related expenses for employees whose primary responsibilities relate to supporting the Company’s infrastructure and delivering user support. Other related costs include amortization of acquired developed technology intangible assets and allocated overhead. Research and Development Research and development costs primarily include personnel costs (including salaries, bonuses, stock-based compensation expense, other employee benefits and travel-related expenses), costs for third-party consultants, depreciation of equipment used in research and development activities and allocated overhead. Except for costs associated with the development of internal-use software, research and development costs are expensed as incurred. Sales and Marketing Sales and marketing expenses relate to both self-serve and outbound sales activities. Sales and marketing expenses generally are comprised of personnel costs (including salaries, sales commissions and amortization of deferred sales commissions, stock-based compensation expense, other employee benefits and travel-related expenses), costs related to brand campaign fees, lead generation fees, amortization of acquired trade name and customer relationship intangible assets and allocated overhead. General and Administrative General and administrative expenses consist primarily of employee-related costs (including salaries, bonuses, stock-based compensation expense, other employee benefits and travel-related expenses) for legal, finance, human resources, and other administrative functions, as well as certain executives. In addition, general and administrative expenses include outside legal, accounting and other professional fees, non-income-based taxes and allocated overhead. Restructuring From time to time, the Company may implement a management-approved restructuring plan to improve efficiencies across the organization, reduce its cost structure, and/or better align its resources with the Company’s product strategy. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, contract cancellation costs and other related costs. In connection with such plans, the Company may incur restructuring costs comprised of employee severance and associated termination costs related to the reduction of its workforce, losses on its non-cancelable lease contracts, and other contract termination costs. Costs associated with a restructuring plan are recognized and measured at fair value in the consolidated statement of operations in the period in which the liability is incurred. These restructuring initiatives may require the Company to make estimates in several areas including: (i) expenses for employee severance and other separation costs; (ii) realizable values of assets made redundant, obsolete, or excessive; and (iii) the ability to generate sublease income and to terminate lease obligations at the estimated amounts. Other Non-Operating Income (Expense) Other non-operating income (expense), net consists primarily of interest income, net foreign currency exchange gains (losses), gain on sale of private company investments, net realized gains and losses related to investments, and other. The components of other non-operating income (expense) recognized in the consolidated financial statements is as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Interest Income $ 1,161 $ 59 $ 20 Foreign currency gains (losses), net (1,460 ) 85 (1,395 ) Currency translation adjustment upon subsidiary liquidation — — (1,397 ) Gain on sale of a private company investment 999 6,750 — Loss on debt modification / extinguishment (941 ) (194 ) — Other income (expense), net (57 ) 910 (1,478 ) Other non-operating income (expense), net $ (298 ) $ 7,610 $ (4,250 ) As of December 31, 2016, the Company had a private company investment of approximately $5.0 million accounted for using the cost method of accounting, which it sold in January 2017 for cash consideration of $11.7 million and recognized a gain of $6.7 million during the year ended December 31, 2017. Additionally, the Company is entitled to contingent consideration to be received over three years following the close of the transaction, subject to the private company meeting certain employee retention and financial targets. Subsequent earn-out amounts collected will be recorded as a gain when cash is received. In February 2018, the Company received its share of the first installment of the earn-out payment of $1.0 million, which was recognized as a gain during year ended December 31, 2018. Income Taxes The Company accounts for income taxes using the asset and liability method. ASC 740, Accounting for Income Taxes, Valuation allowances are established when necessary to reduce the deferred tax assets when it is more likely than not that a portion or all of the deferred tax assets will not be realized. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken on a tax return and provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company records uncertain tax positions on the basis of a two-step process in which: (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of technical merits of the position, and (2) for those tax positions that meet the more likely than not recognition threshold, the Company recognizes the tax benefit as the largest amount that is cumulatively more than 50% likely to be realized upon ultimate settlement with the related tax authority. From time to time, the Company engages in certain intercompany transactions and legal entity restructurings. The Company considers many factors when evaluating these transactions, including the alignment of their corporate structure with their organizational objectives and the operational and tax efficiency of their corporate structure, as well as the long-term cash flows and cash needs of its business. These transactions may impact the Company’s overall tax rate and/or result in additional cash tax payments. The impact in any period may be significant. These transactions may be complex and the impact of such transactions on future periods may be difficult to estimate. Accounting Pronouncements Recently Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Other Assets and Deferred Costs—Contracts with Customers On January 1, 2018, the Company adopted the requirements of ASC 606 using the full retrospective transition method. The primary impact of adopting ASC 606 relates to the deferral of incremental sales commissions incurred to obtain subscription contracts. Prior to the adoption of ASC 606, such costs were expensed as incurred. The Company amortizes these costs on a straight-line basis over a period of benefit, estimated to be generally four years. The impact of adopting ASC 606 is as follows: • Consolidated statements of operations impact: A decrease in sales and marketing expense of $1.0 million and $0.9 million during the years ended December 31, 2017 and 2016, respectively; and • Consolidated balance sheets impact: An increase in total assets of $3.2 million as of December 31, 2017. Financial Instruments : In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10) : Recognition and Measurement of Financial Assets and Financial Liabilities . ASU 2016-01 amends certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. The most significant impact of ASU 2016-01 was for the Company’s private company investments whereby such investments are recorded at cost and adjusted for impairments and observable price changes through the consolidated statements of operations. ASU 2016-01 is effective for public companies with fiscal years beginning after December 15, 2017. The Company adopted ASU 2016-01 as of January 1, 2018 with no impact upon adoption. Stock Compensation : In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718) Scope of Modification Accounting , which amends and improves the current modification accounting guidance in ASC 718. As amended, the new accounting guidance would be applicable only when there is a change in value resulting from an equity award modification. ASU 2017-09 is effective for public companies with fiscal years beginning after December 15, 2017. The Company adopted ASU 2017-09 as of January 1, 2018 with no impact upon adoption. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensat |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2018 | |
Cash And Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | 3. Cash and Cash Equivalents As of December 31, 2018 and 2017, cash and cash equivalents were $153.8 million and $35.3 million, respectively. Included in cash and cash equivalents are cash in transit from payment processors for credit and debit card transactions of $2.0 million and $1.9 million as of December 31, 2018 and 2017, respectively. As of December 31, 2018, restricted cash of $564,000 was included within other assets. Restricted cash as of December 31, 2017 was nominal. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements Assets and liabilities recorded at fair value in the consolidated financial statements are categorized based on the level of judgment associated with the inputs used to measure their fair value. Hierarchical levels which directly related to the amount of subjectivity associated with the inputs to the valuation of these assets or liabilities are as follows: Level 1 – Observable inputs, such as quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs, other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amounts of the Company’s financial instruments, which generally include cash equivalents, accounts receivable and accounts payable, approximate their fair values due to their short maturities. The carrying value of the Company’s debt approximates fair value based on borrowing rates currently available to the Company for debt with similar terms and consideration of default and credit risk. As of December 31, 2018 and 2017, respectively, the Company did not have any financial instruments accounted for pursuant to ASC 820. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 5. Property and Equipment As of December 31, 2018 and 2017, property and equipment consisted of the following: (in thousands) December 31, 2018 December 31, 2017 Building $ 71,780 $ 71,780 Computer equipment 21,448 22,225 Leasehold improvements 56,396 54,004 Furniture, fixtures, and other assets 10,566 10,573 Gross property and equipment 160,190 158,582 Less: Accumulated depreciation (42,472 ) (27,251 ) Property and equipment, net $ 117,718 $ 131,331 Depreciation expense was $19.5 million, $15.9 million and $8.0 million, during the years ended December 31, 2018, 2017 and 2016, respectively. |
Acquisitions, Intangible Assets
Acquisitions, Intangible Assets and Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Acquisitions Intangible Assets And Goodwill [Abstract] | |
Acquisitions, Intangible Assets and Goodwill | 6. Acquisitions, Intangible Assets and Goodwill Renzu Acquisition In April 2015, the Company entered into an Agreement and Plan of Reorganization with Renzu, Inc. (“Renzu”) and various other parties. Renzu’s business consisted of developing mobile measurement and analytics offerings, which assisted the Company in gathering implicit data within the mobile market. The Company, via merger, purchased all of the outstanding shares of Renzu on the closing date of May 20, 2015. The acquisition qualified as a business combination and was accounted for accordingly. The total purchase price of $17.0 million was comprised of the issuance of restricted common stock of $10.3 million and cash payment of $6.7 million. The Company recorded $0.7 million of net tangible liabilities, $5.5 million of identifiable intangible assets based on their estimated fair values and $12.2 million of residual goodwill. Goodwill resulted primarily from the Company’s expectations of synergies from the integration of Renzu’s employee base and product offerings with the Company’s product offerings. Goodwill was not deductible for tax purposes. Upon acquisition in May 2015, the Company’s intention was to integrate Renzu’s mobile measurement and analytics product into the existing core business, should the resulting product be successful. After releasing the product and evaluating its performance, the Company determined that the mobile measurement and analytics product was not a strategic fit for its other products and determined that it would focus on key investments that were more tightly tied with its core business. In its evaluation, the Company concluded Renzu was a standalone entity that was not fully integrated into the Company’s existing business lines and where the Company did not benefit from the acquired goodwill. In November 2016, the Company implemented a plan to wind down the operations of Renzu, as the acquisition was not integrated into the Company’s business, and derecognized the carrying value of goodwill and intangibles of $12.2 million and $3.7 million, respectively, which is included in restructuring within the consolidated statements of operations (see Notes 2 and 13 for additional discussion). TechValidate Acquisition In July 2015, the Company entered into an Agreement and Plan of Reorganization with TechValidate Software, Inc. (“TechValidate”) and various other parties. TechValidate is an online software platform specializing in marketing content automation. The Company, via merger, purchased all of the outstanding shares of TechValidate, then merged TechValidate with and into SurveyMonkey Inc. on the close date of July 31, 2015. The acquisition qualified as a business combination and was accounted for accordingly. The total purchase price of $60.4 million was comprised of the issuance of common stock of $23.8 million and cash payment of $36.6 million (of which $22.2 million was paid at close and $14.4 million was deferred and paid in August 2016). The Company recorded $5.8 million of net tangible liabilities, $15.8 million of identifiable intangible assets based on their estimated fair values and $50.4 million of residual goodwill. Goodwill resulted primarily from the Company’s expectations of synergies from the integration of TechValidate’s employee base and product offerings with the Company’s product offerings. Goodwill was not deductible for tax purposes. Capitalized internal-use software As of December 31, 2018 and 2017, capitalized internal-use software consisted of the following: (in thousands) December 31, 2018 December 31, 2017 Gross capitalized internal-use software $ 109,133 $ 95,607 Less: Accumulated amortization (75,853 ) (54,114 ) Capitalized internal use software, net $ 33,280 $ 41,493 Amortization expense related to capitalized internal-use software was $21.7 million, $21.1 million and $19.4 million during the years ended December 31, 2018, 2017 and 2016, respectively, and is included in cost of revenue in the consolidated statements of operations. Acquisition intangible assets, net As of December 31, 2018 and 2017, intangible assets, net consisted of the following: December 31, 2018 December 31, 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 47,696 $ (42,410 ) $ 5,286 $ 47,696 $ (40,696 ) $ 7,000 Trade name 6,072 (5,796 ) 276 6,072 (5,192 ) 880 Technology 22,007 (18,245 ) 3,762 22,007 (16,293 ) 5,714 Acquisition intangible assets, net $ 75,775 $ (66,451 ) $ 9,324 $ 75,775 $ (62,181 ) $ 13,594 Amortization expense was $4.3 million, $4.5 million and $8.8 million during the years ended December 31, 2018, 2017 and 2016, respectively. Future amortization expense As of December 31, 2018, future amortization expense by year is expected to be as follows: (in thousands) Capitalized internal-use software, net Acquisition intangible assets, net 2019 $ 12,662 $ 3,839 2020 5,925 2,952 2021 1,092 1,705 2022 — 828 Total amortization expense $ 19,679 $ 9,324 Future capitalized internal-use software amortization excludes $13.6 million of costs which are currently in the development phase. Goodwill, net The changes in the carrying amount of goodwill, net were as follows (in thousands): Balance as of December 31, 2015 $ 349,043 Goodwill derecognition (12,182 ) Balance as of December 31, 2016 $ 336,861 Balance as of December 31, 2017 $ 336,861 Balance as of December 31, 2018 $ 336,861 |
Stockholders_ Equity and Employ
Stockholders’ Equity and Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders Equity And Employee Benefit Plans [Abstract] | |
Stockholders’ Equity and Employee Benefit Plans | 7. Stockholders’ Equity and Employee Benefit Plans Common stock and preferred stock In connection with the Company’s IPO, the Company’s stockholders approved the Fourth Amended and Restated Certificate of Incorporation to authorize the issuance of up to 900,000,000 shares, consisting of 800,000,000 shares of common stock at par value of $0.00001 per share and 100,000,000 shares of preferred stock at par value $0.00001 per share. In connection with the Fourth Amended and Restated Certificate of Incorporation, common stock and additional paid-in capital amounts in consolidated balance sheets have been adjusted to reflect the change in par value. During the year ended December 31, 2018, the Company repurchased approximately $16,000 of common stock (1,159 shares) at a price of $13.65 per share, which was approximately the fair value of common stock at such time. During the year ended December 31, 2017, the Company repurchased approximately $144,000 of common stock (11,791 shares) at $12.21 per share, which was approximately the fair value of common stock at such time. Equity Incentive Plans The Company has two equity incentive plans: the 2011 Equity Incentive Plan (the “2011 Plan”) and the 2018 Equity Incentive Plan (the “2018 Plan”). The Company’s stockholders approved the 2018 Plan on September 5, 2018, and established it with an adjustable reserve of 9,394,744 shares of common stock. Additionally, upon the completion of the Company’s IPO in September 2018, the 2011 Plan was terminated and all shares that remained available for future issuance under the 2011 Plan at that time were transferred to the 2018 Plan. To the extent that grants outstanding under the 2011 Plan terminate, cancel or are forfeited, the shares reserved for issuance under such grants are transferred to the 2018 Plan and become available for subsequent grant thereunder. Under the 2018 Plan, the Board or a committee of the Board, may grant incentive and nonqualified stock options, stock appreciation rights, restricted or unrestricted stock awards, restricted stock units (“RSUs”), phantom stock, performance awards or other stock-based awards to employees, directors and other individuals providing services to the Company. The purpose of the 2018 Plan is to promote the long-term growth and profitability of the Company by (i) providing employees with incentives to improve stockholder value and to contribute to the growth and financial success of the Company through their future services, and (ii) enabling the Company to attract, retain and reward the best‑available persons. The options granted under the 2018 Plan, may be granted at a price not less than the fair market value on the grant date. The Board, or a committee of the Board, has granted options with an exercise price at or which approximates the fair value on the grant date to new hires, except for the out-of-the-money options granted to certain employees as discussed below. Grants of time-based awards generally vest over a four-year period for new hires and over a three-year period for subsequent grants to existing employees. The service condition for the majority of these awards is satisfied generally over the applicable vesting period. Options expire as determined by the Board, or committee of the Board, but not more than ten years after the date of the grant. In the second quarter of 2015, the Company began granting restricted stock units that contain both a service condition and Performance Vesting Condition. Both the service condition and Performance Vesting Condition must be met in order for these awards to vest and issue. The Performance Vesting Condition occurred upon the effectiveness of the registration statement for the Company's IPO, which was September 25, 2018. The 2018 Plan provides for annual increases in the number of shares available for issuance on the first day of each year equal to the lesser of 12,500,000 shares, 5% of the outstanding shares on the last date of the preceding year, or a lower amount determined by the plan administrator. As of December 31, 2018, 13,626,822 shares of common stock remain available for grant under the 2018 Plan. The following is a summary of stock option activity for the respective periods: Stock Options Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Term (in years) Outstanding at December 31, 2015 13,039,688 $ 14.39 $ 11,142 8.8 Granted 5,014,600 $ 16.03 Exercised (45,444 ) $ 4.42 Forfeited (5,500,606 ) $ 15.99 Expired (479,616 ) $ 10.72 Outstanding, vested and expected to vest at December 31, 2016 12,028,622 $ 14.53 $ 9,903 8.3 Granted 4,139,372 $ 16.03 Exercised (35,352 ) $ 4.35 Forfeited (1,623,057 ) $ 16.02 Expired (700,516 ) $ 14.77 Outstanding, vested and expected to vest at December 31, 2017 13,809,069 $ 14.82 $ 9,292 7.8 Granted 5,735,643 $ 13.31 Exercised (81,849 ) $ 6.01 Forfeited (832,591 ) $ 15.01 Expired (177,897 ) $ 14.08 Outstanding, vested and expected to vest at December 31, 2018 18,452,375 $ 14.39 $ 8,482 7.5 Exercisable at December 31, 2018 10,435,039 $ 14.31 $ 8,436 6.6 The following is a summary of restricted stock awards for the respective periods: Restricted Stock Awards Number of Shares Weighted Average Grant-Date Fair Value Weighted Average Remaining Contractual Term (in years) Unvested at December 31, 2015 1,406,975 $ 13.30 2.3 Vested (476,889 ) $ 11.18 Unvested at December 31, 2016 930,086 $ 14.38 1.6 Vested (449,220 ) $ 14.38 Unvested at December 31, 2017 480,866 $ 14.38 0.6 Vested (480,866 ) $ 14.38 Unvested at December 31, 2018 — $ 0.00 0.0 The following is a summary of restricted stock units for the respective periods: Restricted Stock Units Number of Shares Weighted Average Grant-Date Fair Value Weighted Average Remaining Contractual Term (in years) Unvested at December 31, 2015 10,540,093 $ 13.70 3.5 Granted 5,492,600 $ 12.22 Vested, gross of shares withheld for employee payroll taxes (2,546,058 ) $ 11.58 Forfeited/canceled, including shares withheld for employee payroll taxes (4,952,860 ) $ 13.57 Unvested at December 31, 2016 8,533,775 $ 12.89 3.3 Granted 2,936,437 $ 11.91 Vested, gross of shares withheld for employee payroll taxes (1,443,302 ) $ 13.52 Forfeited/canceled, including shares withheld for employee payroll taxes (1,188,629 ) $ 12.71 Unvested at December 31, 2017 8,838,281 $ 12.52 2.2 Granted 3,911,841 $ 13.26 Vested, gross of shares withheld for employee payroll taxes (5,883,890 ) $ 12.75 Forfeited/canceled, including shares withheld for employee payroll taxes (1,114,186 ) $ 12.65 Unvested at December 31, 2018 5,752,046 $ 12.77 1.2 Fair Value of Stock Options Lattice-Binomial Option Valuation Model Stock options granted during the years ended December 31, 2017 and 2016, respectively, were out-of-the-money and valued using the Lattice-Binomial Option Valuation Model which estimates fair value based on the assumed changes in prices for the option grants’ underlying asset over their contractual life. The fair value of the out-of-the-money stock options is being amortized on a straight-line basis over the requisite service period of the awards granted. The fair value of each out-of-the-money stock option was estimated on their grant dates using the following assumptions: Year Ended December 31, 2018 2017 2016 Expected life (in years) n/a 5.7 to 6.1 7.0 to 9.2 Risk-free interest rate n/a 2.3% - 2.4% 1.7% - 2.0% Volatility n/a 50% 51% - 54% Dividend yield n/a —% —% Fair value of common stock n/a $11.84 to $12.33 $12.21 to $12.28 Black-Scholes-Merton Option Valuation Model Stock options granted during the year ended December 31, 2018 were at-the-money and valued using the Black-Scholes-Merton Valuation Model. The fair value of the at-the-money stock options is being amortized on a straight-line basis over the requisite service period of the awards granted. The fair value of each at-the-money stock option was estimated on their grant dates using the following assumptions: Year Ended December 31, 2018 2017 2016 Expected life (in years) 5.8 to 6.1 n/a n/a Risk-free interest rate 2.7% - 3.0% n/a n/a Volatility 43% - 60% n/a n/a Dividend yield —% n/a n/a Fair value of common stock $12.00 to $13.65 n/a n/a 2018 Employee Stock Purchase Plan On September 5, 2018, the Company’s stockholders approved the 2018 Employee Stock Purchase Plan (the “ ” Except for the initial offering period, the ESPP provides for 24-month offering periods beginning May 22 and November 22 of each year, and each offering period will consist of four six-month purchase periods. The initial offering period began on September 25, 2018 and will end on November 22, 2020. On each purchase date, eligible employees will purchase the shares at a price per share equal to 85% of the lesser of (1) the fair market value of the Company’s common stock on the offering date, or (2) the fair market value of its common stock on the purchase date. The Company estimated the fair value of ESPP purchase rights using a Black-Scholes-Merton option pricing model with the following assumptions: Year Ended December 31, 2018 2017 2016 Expected life (in years) 0.6 to 2.1 n/a n/a Risk-free interest rate 2.4% - 2.9% n/a n/a Volatility 38% - 40% n/a n/a Dividend yield —% n/a n/a Fair value of common stock $ 12.89 n/a n/a Stock-Based Compensation Expense Stock-based compensation expense recognized in the consolidated financial statements is as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Cost of revenue $ 8,931 $ 2,503 $ 4,114 Research and development 48,739 9,918 5,756 Sales and marketing 19,046 8,069 8,712 General and administrative 55,054 14,496 12,301 Restructuring — — 2,074 Stock-based compensation expense, net of amounts capitalized 131,770 34,986 32,957 Capitalized stock-based compensation expense 2,609 3,119 6,090 Stock-based compensation expense $ 134,379 $ 38,105 $ 39,047 Between November 2013 through May 2015, the Company granted approximately 16.7 million of stock options at $42.33 per share. In the third quarter of 2015, the Company repriced and exchanged (representing a probable to probable modification pursuant to ASC 718) approximately 11.9 million stock options at a ratio of two original options to purchase shares issued per one new option to purchase shares. As a result, the Company issued approximately 6.0 million options with an exercise price of $16.03 (the fair value per common share was $14.38 at the exchange date) in exchange for the previously granted stock options. The reprice and exchange resulted in an additional $19.8 million of stock-based compensation expense to be recognized over the requisite service period of the new award which was four years from exchange date. As of December 31, 2018, approximately $1.1 million of unrecognized compensation expense remains relating to the repriced and exchanged awards which will be recognized over the remaining service periods through 2019. In 2016, the Company modified (primarily a probable to probable modification pursuant to ASC 718) the terms of approximately 0.9 million stock options and 0.1 million restricted stock units in connection with the March 2016 restructuring plan (see Note 13 for additional discussion). The modifications resulted in additional stock-based compensation expense of $2.5 million ($1.4 million for stock options and $1.1 million RSUs) which was fully recognized at the modification date and recognized as general and administrative, and restructuring costs in the consolidated statement of operations during 2016. In the second quarter of 2017, the Company modified (an improbable to probable modification pursuant to ASC 718) the terms of approximately 0.5 million restricted stock awards which resulted in a reduction in stock-based compensation expense (as the award fair value at the modification date was less than at the grant date) of $1.1 million and was fully recognized at the modification date and recognized as sales and marketing costs in the consolidated statement of operations during the year ended December 31, 2017. In the first quarter of 2018, the Company modified (an improbable to probable modification pursuant to ASC 718) the terms of approximately 0.5 million restricted stock awards which resulted in a reduction in stock-based compensation expense (as the award fair value at the modification date was less than at the grant date) of $0.5 million and was fully recognized at the modification date (in the first quarter of 2018) and recognized as research and development, and sales and marketing costs in the consolidated statement of operations during the year ended December 31, 2018. As of December 31, 2018, unamortized stock-based compensation was as follows: Unrecognized stock-based compensation (in thousands) Weighted average vesting period (in years) Stock options $ 45,217 2.3 Restricted stock units (service-based) 7,548 2.7 Restricted stock units (performance-based) (1) 27,637 1.5 ESPP 4,587 1.9 Total unrecognized stock-based compensation $ 84,989 (1) The Performance Vesting Condition occurred upon the effectiveness of the registration statement for the Company's IPO, which was September 25, 2018. The remaining unrecognized stock-based compensation expense is recognized on an accelerated basis over the weighted-average remaining requisite service period. 401(k) Plan In the United States, the Company offers its employees a defined contribution plan that qualifies as a deferred salary arrangement under Section 401 of the U.S. Internal Revenue Code (“401(k) Plan”). Under the 401(k) Plan, participating employees may defer a portion of their pretax earnings not to exceed the maximum amount allowed by the Internal Revenue Service. The Company currently provides a matching contribution of 25% of deferrals for eligible employees. Compensation expense for the Company's matching contributions was $2.3 million, $1.8 million and $1.7 million during the years ended December 31, 2018, 2017 and 2016, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Leases The Company leases certain equipment and facilities under operating leases which expire at various dates through December 2028. Gross rent expense was $4.0 million, $3.9 million and $4.1 million during the years ended December 31, 2018, 2017 and 2016, respectively. San Mateo Building In July 2015, the Company entered into a lease agreement for office space in San Mateo, California with a lease term until December 2028 (“San Mateo facility”). The Company uses the San Mateo facility for corporate headquarter functions, as well as product and engineering, sales and marketing, and administrative operations. The space rented is for the total office space available in the building, which was in the process of being constructed at the time the lease agreement was executed. Because of the Company’s involvement during the construction period, the Company is considered for accounting purposes to be the owner of the construction project. Accordingly, the building under construction was accounted for as owned real estate and was capitalized in the Company’s consolidated balance sheets as property and equipment-building with a corresponding non-current financing obligation on leased facility. Construction was completed in 2016 and the Company capitalized $71.8 million of construction costs for the building (see Note 5 for additional information). Additionally, the Company incurred additional leasehold improvement costs of which $14.3 million was reimbursed by the landlord (of which $6.8 million and $7.5 million was incurred during 2017 and 2016, respectively). As of December 31, 2018 and 2017, the corresponding liability related to the construction costs incurred by the landlord totaled $92.0 million and $93.4 million, respectively, and is reflected in the consolidated balance sheets as financing obligations on leased facility. The obligation will be settled through monthly lease payments to the landlord and will include imputed interest on the unpaid financing obligation and ground lease. As discussed in Note 1 above under “Accounting Pronouncements Not Yet Adopted” Palo Alto Lease Termination The Company previously leased office space in Palo Alto, California with a lease term until March 2026 (“Palo Alto facility”). The Company used the Palo Alto facility for corporate headquarter functions, as well as product and engineering, sales and marketing and administrative operations. As a result of the Company’s involvement during the construction period, the Company was considered the owner of the building and accounted for the building as owned real estate. In October 2016, the Company and the landlord entered into a Lease Termination Agreement to terminate the Palo Alto facility lease effective as of December 30, 2016. The landlord concurrently entered into a new lease with a new lessee for the Palo Alto facility and the Company did not incur any lease termination penalties as a result of the early lease termination. As the Company’s continuing involvement ended upon termination of the lease, the Company derecognized the building’s net book value of $60.1 million, which approximated the financing obligation’s carrying value at the time of exiting the premises. In addition, the Company also entered into an Asset Purchase Agreement with the new lessee for sale of certain property and equipment for $3.0 million and recognized a gain of $0.9 million which is included in other non-operating income (expense) in the consolidated statements of operations for the year ended December 31, 2016. As of December 31, 2018, future minimum lease payments under operating leases and financing obligations, net of sublease income, by year were as follows: Gross Minimum Lease Payments (in thousands) Financing Obligation- Leased Facility Operating Leases Sublease Income Minimum Lease Payments, net 2019 $ 10,621 $ 3,172 $ (5,409 ) $ 8,384 2020 10,956 2,479 (3,940 ) 9,495 2021 11,291 926 (2,799 ) 9,418 2022 11,649 635 (336 ) 11,948 2023 12,008 708 — 12,716 Thereafter 65,949 2,832 — 68,781 Total $ 122,474 $ 10,752 $ (12,484 ) $ 120,742 In addition to commitments above, we have open non-cancellable purchase orders for the procurement of goods and services in the ordinary course of business totaling $15.7 million to be received through 2021. Letters of Credit As of December 31, 2018, the Company had standby letters of credit for $7.8 million which were issued in connection with certain leases. Legal Matters From time to time, the Company is subject to legal proceedings and litigation arising in the ordinary course of business, which may include, but is not limited to, patent and privacy matters, labor and employment claims, class action lawsuits, as well as inquiries, investigations, audits and other regulatory proceedings. Periodically, the Company evaluates developments in its legal matters and records a liability when it believes that it is both probable that a loss has been incurred and the amount can be reasonably estimated. Significant judgment is required to determine both the likelihood of there being, and the estimated amount of, a loss related to such matters, and the Company's judgment may be incorrect. There are currently no legal matters or claims that have arisen from the normal course of business that the Company believes would have a material impact on the Company’s financial position, results of operations or cash flows. Warranties and Indemnification The Company’s subscription services are generally warranted to perform materially in accordance with the Company’s online help documentation under normal use and circumstances. Additionally, the Company’s arrangements generally include provisions for indemnifying customers against liabilities if its subscription services infringe a third party’s intellectual property rights. Furthermore, the Company may also incur liabilities if it breaches the security or confidentiality obligations in its arrangements. To date, the Company has not incurred significant costs and has not accrued a liability in the accompanying consolidated financial statements as a result of these obligations. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt As of December 31, 2018 and 2017, the carrying values of debt were as follows: December 31, 2018 December 31, 2017 Issuance date Maturity date Amount (in thousands) Effective Interest Rate Amount (in thousands) Effective Interest Rate Revolving credit facilities, as modified February 2013 April 2022 $ — n/a $ 25,000 5.36% - 5.46% 2018 Refinancing Facility Agreement October 2018 October 2025 219,450 6.00% - 6.10% — n/a 2017 Refinancing Facility Agreement April 2017 April 2024 — n/a 298,500 5.66% - 5.84% Total debt $ 219,450 $ 323,500 Less: Unamortized issuance discount and issuance costs, net 2,035 5,179 Less: Current portion of debt, net 1,900 2,032 Long term debt, net $ 215,515 $ 316,289 In February 2013, the Company entered into a Credit Agreement (“2013 Credit Facility”) which was subsequently amended at various dates primarily to revise certain financial covenants and ratios, permit certain transactions, increase the facility, or extend the maturity date. As modified, the 2013 Credit Facility comprised a $315.0 million term loan and $75.0 million revolving credit facility. In April 2017, the Company entered into a Refinancing Facility Agreement (“2017 Credit Facility”), comprising a $300.0 million term loan and $75.0 million revolving credit facility. Upon execution of the 2017 Credit Agreement, the term loan under the 2013 Credit Facility was modified and partially extinguished and the Company recognized a $0.2 million loss on debt extinguishment during the year ended December 31, 2017. In October 2018, the Company entered into a Refinancing Facility Agreement (“2018 Credit Facility”), comprising a $220.0 million term loan (the Term Loan”) and $75.0 million revolving credit facility. Upon execution of the 2018 Credit Facility, the Company utilized a portion of its IPO proceeds to repay $101.3 million of debt outstanding under the 2017 Credit Facility and the Company recognized a $0.9 million loss on debt modification. Loans under the 2018 Credit Facility accrue interest based upon, at the Company’s option, either at an alternate base interest rate (“ABR”) or a Eurocurrency rate, in each case plus an applicable margin. The applicable margin for the Term Loan is 2.75% in the case of a ABR loan and 3.75% in the case of a Eurocurrency loan, and the applicable margin for the revolving loan ranges from 0.75% to 1.50% in the case of a ABR loan and 1.75 to 2.50% in the case of a Eurocurrency loan, and is based on the Company’s leverage ratio. The Company will make quarterly principal payments of $550,000 on the Term Loans with any remaining principal amounts due on October 10, 2025. The principal amount on the revolving credit facility is due and all revolver commitments terminate on October 10, 2023. The Company records debt discounts and issuance costs as a reduction to the associated current and long-term portions of the debt in the consolidated balance sheets. The Company records debt discounts and issuance costs as a deferred asset when there is no associated debt liability. As of December 31, 2018, unamortized issuance discount and issuance costs of $0.4 million were included in prepaid expenses and other current assets and $1.4 million were included in other assets. The Company amortizes these costs using the straight-line method which approximates the effective interest rate method over the life of the loan. The amounts amortized are included in interest expense in the accompanying consolidated statements of operations. As of December 31, 2018, the Company has $67.2 million of borrowing available under the line of credit portion of the 2018 Credit Facility. The Company’s obligations under the 2018 Credit Facility are guaranteed by certain of its subsidiaries and secured by liens on substantially all of the assets of the Company and such subsidiaries. The 2018 Credit Facility contains financial, affirmative and negative covenants that, if violated, may require the Company to pay down the loans earlier than the stated maturity dates with higher interest rates. As of December 31, 2018, the Company was compliant with all of its debt covenant requirements in the 2018 Credit Facility. The Company believes that it will continue to comply with the terms of the loan agreements through the stated maturity dates. However, if the Company’s projections do not materialize, the Company may require additional equity or debt financing. There can be no assurance that additional financing, if required, will be available on terms satisfactory to the Company. Principal and interest payments are due quarterly. As of December 31, 2018, future minimum payment obligations of principal amounts due by year under the 2018 Credit Facility were as follows (in thousands): 2019 $ 2,200 2020 2,200 2021 2,200 2022 2,200 2023 2,200 Thereafter 208,450 Total principal outstanding $ 219,450 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes Loss from operations before income taxes is categorized geographically as follows: Year Ended December 31, (in thousands) 2018 2017 2016 United States $ (152,045 ) $ (40,775 ) $ (64,220 ) Foreign (2,547 ) 718 (7,426 ) Total loss from operations before income taxes $ (154,592 ) $ (40,057 ) $ (71,646 ) The provision for (benefit from) income taxes consisted of the following: Year Ended December 31, (in thousands) 2018 2017 2016 Current income tax expense: Federal $ (70 ) $ (12 ) $ (6 ) State 48 23 45 Foreign 677 790 327 Total current income tax expense 655 801 366 Deferred income tax expense: Federal (483 ) (16,141 ) 4,109 State 562 (248 ) 311 Foreign (586 ) (459 ) (82 ) Total deferred income tax expense (507 ) (16,848 ) 4,338 Total provision for (benefit from) income taxes $ 148 $ (16,047 ) $ 4,704 A reconciliation of the Company’s effective tax rate to the federal statutory rate is as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Tax at federal statutory rate $ (32,464 ) $ (14,020 ) $ (25,076 ) State income tax, net of federal tax benefit (6,764 ) (3,898 ) (2,255 ) Foreign tax rate differential 626 (493 ) 2,805 Stock-based compensation 2,378 2,645 1,981 Transition tax — 2,261 — Revaluation of deferred tax assets and liabilities — (10,259 ) — Research and development credits (5,247 ) (4,028 ) (992 ) Intangible asset write-off — — 2,434 Other (106 ) 659 2,092 Change in valuation allowance 41,725 11,086 23,715 Total provision for (benefit from) income taxes $ 148 $ (16,047 ) $ 4,704 As of December 31, 2018 and 2017, the tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows: (in thousands) December 31, 2018 December 31, 2017 Deferred tax assets: Net operating losses $ 41,419 $ 27,046 Tax credits 23,359 12,110 Stock-based compensation 25,208 11,372 Accrued compensation and related expenses 4,061 1,843 Financing obligation- leased facility 29,842 24,122 Other 463 1,462 Total deferred tax assets: 124,352 77,955 Valuation allowance (81,127 ) (34,664 ) Total deferred tax assets, net of valuation allowance: 43,225 43,291 Deferred tax liabilities: Depreciation and amortization (26,844 ) (30,708 ) Goodwill (19,307 ) (16,017 ) Total deferred tax liabilities: (46,151 ) (46,725 ) Total net deferred tax liabilities: $ (2,926 ) $ (3,434 ) As of December 31, 2018, the Company had federal and state net operating losses of $162.2 million and $63.8 million, respectively. If not utilized, the federal and state net operating loss carryforwards will begin to expire in 2019. As of December 31, 2018, the Company had federal research and development credits of $14.7 million which will begin to expire in 2032; state research and development credits of $10.8 million which will carryforward indefinitely; and foreign research and development credits of $1.1 million which will begin to expire in 2037. Assessing the realizability of the Company’s deferred tax assets is dependent upon several factors, including the likelihood and amount, if any, of future taxable income in relevant jurisdictions during the periods in which those temporary differences become deductible. The Company has evaluated the criteria for realization of deferred tax assets and, as a result, has determined that certain deferred tax assets are not realizable on a more likely than not basis. Accordingly, the Company recorded a valuation allowance of $81.1 million as of December 31, 2018. The valuation allowance increased by $46.5 million and decreased by $14.5 million during the years ended December 31, 2018 and 2017, respectively. Internal Revenue Code Section 382 and similar state provisions limit the use of net operating losses and tax credit carryforwards in certain situations where changes occur in the stock ownership of a company. In the event the Company has a change of ownership, utilization of net operating losses and tax credit carryforwards may be limited. Certain acquired net operating losses and tax credits are subject to limitations. Net operating losses and tax credits have been reduced to reflect the amounts that can be utilized to reduce taxes payable in the future. On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making significant changes to the U.S. Internal Revenue Code. Changes include, but are not limited to, a federal corporate tax rate decrease from 35% to 21%, effective for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and the creation of a Global Intangible Low-taxed Income inclusion (“GILTI”). ASC 740, Income Taxes The Tax Act subjects a US shareholder to tax on GILTI earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income ("GILTI"), states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred as a period expense. The results of the Company’s foreign operations did not give rise to a GILTI inclusion in the year ended December 31, 2018. No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the one-time, mandatory transition tax, or additional outside basis difference of $4.8 million, as these amounts continue to be indefinitely reinvested in foreign operations. The Company recorded cumulative unrecognized tax benefits pursuant to ASC 740-10 in the amount of $3.4 million, $1.5 million and $4.3 million during the years ended December 31, 2018, 2017 and 2016, respectively. The Company’s policy is to recognize interest and penalties related to unrecognized tax benefits within the provision for income taxes. Amounts accrued for interest and penalties were not significant as of December 31, 2018 and 2017, respectively or during years ended December 31, 2018, 2017 and 2016, respectively. During the year ended December 31, 2017, the IRS concluded its audit of the Company’s 2014 tax returns. Upon closing of the 2014 audit, the Company assessed the impact on unrecognized tax positions for all open years and recorded any necessary adjustments. The Company believes that it has provided adequate reserves for its income tax uncertainties in all open tax years. As the outcome of the audits cannot be predicted with certainty, if any issues addressed in the Company's tax audits are resolved in a manner inconsistent with management's expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. Changes in balances during 2018 and 2017 and ending balances as of December 31, 2018 and 2017 in gross unrecognized tax benefits were as follows: (in thousands) December 31, 2018 December 31, 2017 Beginning balances $ 1,486 $ 4,273 Increases related to tax positions taken during a prior year 584 2 Increases related to tax positions taken during the current year 1,351 288 Decreases related to tax positions taken during a prior year (70 ) (2,785 ) Decreases related to tax settlements with taxing authorities — (292 ) Ending balances $ 3,351 $ 1,486 The Company does not anticipate that the amount of existing unrecognized tax benefits will significantly increase or decrease within the next 12 months. The Company files income tax returns in the U.S. federal, state, and certain foreign jurisdictions. The Company’s U.S federal income tax return years 2015 through 2018 remain open to examination. The Company’s respective state and foreign income tax return years 2012 to 2018 remain open to examination. There are no income tax audits currently in progress. |
Geographical Information
Geographical Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Geographical Information | 11. Geographical Information Revenue by geography is generally based on the billing address of the customer. For purposes of its geographic revenue disclosure, the Company defines a customer as an organization. An organization may consist of an individual paying user, multiple paying users within an organization or the organization itself. The following table sets forth the percentage of revenue by geographic area: Year Ended December 31, 2018 2017 2016 United States 64 % 65 % 64 % Rest of world 36 % 35 % 36 % No other country outside of the United States comprised 10% or greater of the Company’s revenue for each of the years ended December 31, 2018, 2017 and 2016. As of December 31, 2018 and 2017, the following table summarizes the percentage of the Company’s long-lived assets by geographic area: Property and equipment, net Intangible assets, net December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 United States 94 % 99 % 82 % 82 % Canada 5 % * * * Ireland * * 18 % 18 % Rest of world 1 % 1 % — % — % * less than 1% |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 12. Net Loss Per Share Basic earnings per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net loss for the period by the weighted-average number of common shares outstanding during the period which includes potential dilutive common shares assuming the dilutive effect of outstanding stock options, restricted stock units (including those that are performance-based) and restricted stock awards calculated using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share: Year Ended December 31, (in thousands, except per share amounts) 2018 2017 2016 Numerator: Net loss $ (154,740 ) $ (24,010 ) $ (76,350 ) Denominator: Weighted-average shares outstanding - basic and diluted 107,900 100,244 98,539 Net loss per common share - basic and diluted: $ (1.43 ) $ (0.24 ) $ (0.77 ) The Company was in a loss position for the periods presented. Accordingly, basic net loss per share is the same as diluted net loss per share as the inclusion of all potential common shares outstanding would have been anti-dilutive. Prior to application of the treasury stock method, share equivalents (comprising stock options, restricted stock units (including those that are performance-based), ESPP, and restricted stock awards) excluded from the calculations of diluted net loss per share were 25.2 million, 23.1 million and 21.5 million during the years ended December 31, 2018, 2017 and 2016, respectively. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Costs | 13. Restructuring Costs November 2017 Restructuring Plan In November 2017, the Company implemented a restructuring plan (“November 2017 Plan”) to reduce its sales and marketing headcount and centralize its sales function in its San Mateo, CA headquarters. The total restructuring costs associated with the November 2017 Plan was $5.2 million and was primarily lease termination costs and employee severance, of which $1.7 million was recognized during the fourth quarter of 2017 and $3.5 million was recognized in the fourth quarter of 2018. The restructuring costs incurred during the fourth quarter of 2018 are primarily due to the changes in estimated lease termination costs resulting from lower estimated sublease cash payments, and related leasehold impairment costs as the Company estimates that the leasehold improvements at the vacated facility would not be recoverable from the estimated sublease cash flows. November 2016 Restructuring Plan In November 2016, the Company implemented a restructuring plan (“November 2016 Plan”) to wind down the operations of the Renzu business which was acquired in May 2015 (see Note 6 for additional discussion). The total estimated restructuring costs associated with the November 2016 Plan was approximately $1.5 million and was primarily employee severance. March 2016 Restructuring Plan In March 2016, the Company implemented a restructuring plan (“March 2016 Plan”) to reduce its sales and marketing headcount and close several of its international locations, which was primarily related to the Company’s decision to generally cease offering the non-self-serve portion of its SurveyMonkey Audience solution. The total estimated restructuring costs associated with the March 2016 Plan was approximately $7.9 million and was primarily employee severance, substantially all of which was recognized during 2016. The restructuring plans were subject to applicable laws and consultation processes, as a part of the Company’s strategic plan to focus on its core product and improve efficiencies. In connection with these actions, the Company incurred the following pre-tax costs: Year Ended December 31, (in thousands) 2018 2017 2016 Employee severance $ 73 $ 498 $ 5,834 Contract termination and other costs 631 1,287 1,453 Stock based compensation — — 2,074 Impairment of property and equipment 2,821 — — Derecognition of goodwill and intangibles assets — — 15,895 Total restructuring costs $ 3,525 $ 1,785 $ 25,256 The balances as of December 31, 2018 and 2017 included $0.6 million and $1.0 million, respectively, recorded in accrued expenses and other current liabilities and $0.3 million and $0.4 million, respectively, recorded in other non-current liabilities. As of December 31, 2018, the majority of amounts accrued pertain to non-cancellable lease costs, which will be paid through 2021. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 14. Subsequent Events Additional earn-out payment received from sale of a private company investment In January 2019, the Company received proceeds of $1.0 million representing the second earn-out payment from the sale of a private company investment which will be recognized as a gain on sale of assets during the first quarter of 2019. Increase of share reserves under equity incentive plans On January 1, 2019, the number of authorized shares of common stock that may be issued under the 2018 Plan and 2018 ESPP increased by 6,290,894 shares and 1,258,178 shares, respectively, pursuant to the automatic share increase provisions of the plans. 2019 stock-based awards activity In February 2019, the Company granted 2,225,766 stock options and 3,820,944 restricted stock units to its employees, substantially all of which were issued as a part of the Company’s annual stock-based award process. The stock options and restricted stock units granted have vesting restrictions, valuations and contractual lives of a similar nature to those described in Note 7 above. The stock option and restricted stock unit grants result in gross stock-based compensation of $66.3 million. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and include the results of operations of the Company and its wholly-owned subsidiaries. All significant intercompany transactions have been eliminated. Certain other prior year balances have been reclassified to conform to the current year presentation. Such reclassifications did not affect total revenues, operating income or net income. On January 1, 2018, the Company adopted the requirements of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers Other Assets and Deferred Costs—Contracts with Customers |
Initial Public Offering and Concurrent Private Placement | Initial public offering and concurrent private placement On September 28, 2018, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 17,250,000 shares of common stock (including the additional 2,250,000 shares that were sold pursuant to the Underwriters’ option to purchase additional shares) at $12.00 per share. The Company received aggregate proceeds of $192.5 million, net of underwriters' discounts and commissions of $14.5 million. Immediately subsequent to the closing of the Company’s IPO, Salesforce Ventures LLC purchased 3,333,333 shares of common stock from the Company at the IPO price of $12.00 per share, and the Company received aggregate proceeds of $40.0 million. The Company’s net proceeds from the IPO and the concurrent private placement totaled $225.3 million after deducting offering costs of $7.2 million. Additionally, upon effectiveness of the registration statement for the Company's IPO, 2,574,499 net shares of Performance RSUs (as defined below) were released for awards where both a service condition and Performance Vesting Condition (as defined below) were met, and the Company recognized $89.9 million of stock-based compensation expense on an accelerated amortization method (see Notes 2 and 7 below for further discussion) and $21.4 million in payroll tax withholding obligations. The Company utilized a portion of its IPO proceeds to satisfy the payroll tax withholding obligations in the third quarter of 2018. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods covered by the consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. The Company bases its estimates on historical experience and on various other assumptions that it believes to be reasonable. The Company’s most significant estimates and judgments involve valuation of the Company’s stock-based awards, including the determination of fair value of common stock prior to the completion of its IPO, valuation of deferred income tax assets, estimating the period of benefit for deferred commissions, valuation of acquired goodwill and intangibles from acquisitions, tax contingencies and legal contingencies. |
Segment Information | Segment Information The Company operates as a single operating segment. The Company’s chief operating decision maker (“CODM”) is its Chief Executive Officer, who reviews the Company’s operating results on a consolidated basis in order to make decisions about allocating resources and assessing performance for the entire company. The CODM uses one measure of profitability and does not segment the Company’s business for internal reporting. See Note 11 for additional information regarding the Company’s revenue and long-lived assets by geographic area. |
Related Party Transactions | Related Party Transactions Certain members of the Company’s Board of Directors (“Board”) serve as board members, are executive officers of and/or (in some cases) are investors in companies that are customers and/or vendors of the Company. The Company recognized revenue from sales of its products to a substantial stockholder of $1.7 million, $2.1 million and $1.8 million during the years ended December 31, 2018, 2017 and 2016, respectively. Sales to a substantial stockholder represented less than 1.0% of the Company’s total revenue in each of the periods presented. The Company incurred related party expenses of $1.5 million, $0.8 million and $1.0 million during the years ended December 31, 2018, 2017 and 2016, respectively. |
Revenue Recognition and Deferred Revenue | Revenue Recognition and Deferred Revenue The Company generates substantially all of its revenue from the sale of subscriptions to its survey software products including subscriptions to its purpose-built solutions. The revenue the Company generates from one purpose-built solution that is delivered and recognized at a point in time is not significant. The Company normally sells each of these products in separate contracts to its customers and each product, including purpose-built solutions, is distinct. The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price of its subscription agreements. The Company accounts for revenue contracts with customers through the following steps: • Identification of the contract, or contracts, with a customer; • Identification of the performance obligations in the contract; • Determination of the transaction price; • Allocation of the transaction price to the performance obligations in the contract; and • Recognition of revenue when, or as, the Company satisfies a performance obligation. For subscription products, the Company provides customers the option of monthly, annual or multi-year contractual terms. In general, the Company’s customers elect contractual terms of one year or less. Subscription revenue is recognized on a daily basis ratably over the related subscription term beginning on the date the Company provides access to its survey product. Access to the Company’s subscription product is an obligation representing a series of distinct services (and which comprise a single performance obligation) that the Company provides to its end customer over the subscription term. The Company recognizes the majority of its revenue ratably because the customer benefits from access to the Company’s subscription products throughout the subscription term. The Company generally invoices its customers at the beginning of the term on a monthly or annual basis. The Company's contracts are generally non-cancellable and do not contain refund-type provisions. The Company’s contracts do not contain a significant amount of variable consideration as the price of its subscription offerings are generally fixed at contract inception. Based on the invoicing structure and related subscription term, the Company determined its contracts do not contain a financing component. The Company applied the practical expedient provided by ASC 606 and did not evaluate contracts of one year or less for the existence of a significant financing component. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether transfer of control to customers has occurred. The Company records contract liabilities to deferred revenue when cash payments are received or due. Deferred revenue consists of the unearned portion of customer billings. The Company recognized into revenue $83.3 million, $76.4 million and $72.0 million during the years ended December 31, 2018, 2017 and 2016, respectively, that was included in the deferred revenue balances at the beginning of each respective period. As of December 31, 2018, future estimated revenue related to performance obligations that are unsatisfied or partially unsatisfied at the end the reporting period was $111.0 million. The substantial majority of the unsatisfied performance obligations will be satisfied over the next twelve months. |
Deferred Commissions | Deferred Commissions Certain commissions earned by the Company’s salesforce are considered to be incremental and recoverable costs of obtaining a contract with a customer. Such costs are deferred and amortized on a straight-line basis over their estimated period of benefit which is generally estimated as four years. The period of benefit was estimated by considering factors such as historical customer attrition rates, the useful life of the Company’s technology, and the impact of competition in its industry. Amortization of deferred commissions, included in sales and marketing expense line within the statements of operations was $1.6 million, $1.0 million and $0.5 million during the years ended December 31, 2018, 2017 and 2016 respectively. There was no impairment loss in relation to the deferred commissions for any period presented. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation expense for all share-based payments to employees based on the grant-date fair value of the Company’s common stock estimated in accordance with the provisions of Accounting Standards Codification (“ASC”) 718, Compensation‑Stock Compensation Stock Options and ESPP : The Company estimates the fair values of its stock options and shares issuable under the ESPP using the Black-Scholes-Merton option-pricing model for stock options granted at-the-money and ESPP shares issuable and Lattice-Binomial option valuation model for out-of-the-money stock option grants. The aforementioned valuation models require the input of key assumptions which are as follows: • Expected Term : As the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior, the Company determines the expected term based on the average period the stock options or ESPP are expected to remain outstanding. For awards granted at-the-money, the expected term is generally calculated as the midpoint of the stock options vesting term and contractual expiration. For awards granted out-of-the-money, the expected term was the midpoint of the stock options vesting term and contractual expiration adjusted to also consider the estimated period for those options to become in-the-money. For ESPP, the expected term is the applicable purchase periods within an offering period. • Expected Volatility : As the Company does not have sufficient trading history of its common stock, stock price volatility is estimated at the applicable grant date by taking the weighted-average historical volatility of a group of comparable publicly-traded companies over a period equal to the expected life of the options. • Expected Dividend Rate : The Company has not paid and does not anticipate paying cash dividends on its shares of common stock in the foreseeable future; therefore, the expected dividend yield is assumed to be zero. • Risk-Free Interest Rate : The Company determined the risk-free interest rate by using a weighted average assumption equivalent to the expected term based on the U.S. Treasury constant maturity rate as of the date of grant. Additionally, due to the absence of an active market for the Company’s common stock prior to its IPO, the Company obtained third-party valuations (prepared contemporaneously in connection with grants of share-based payments made prior to the Company’s IPO) to estimate the fair value of its common stock for purposes of measuring stock-based compensation expense to be recognized. The third-party valuations were prepared using methodologies, approaches, and assumptions consistent with the American Institute of Certified Public Accountants (“AICPA”) Accounting & Valuation Guide, Valuation of Privately-Held-Company Equity Securities Issued as Compensation • Market multiples of comparable public companies in the Company’s industry as indicated by their market capitalization and guideline merger and acquisition transactions; • The Company’s performance and market position relative to its competitors, who may change from time to time; • The Company’s historical financial results and estimated trends and prospects for its future performance; • The economic and competitive environment; • The likelihood and timeline of achieving a liquidity event, such as an IPO or sale of the Company, given prevailing market conditions; • Any adjustments necessary to recognize a lack of marketability for its common stock; and • Precedent sales of or offers to purchase its capital stock. For valuations subsequent to the Company’s IPO, its board of directors will determine the fair value of each share of underlying common stock based on the closing price of the Company’s common stock as reported on the date of the grant. Restricted Stock Units and Restricted Stock Awards : The fair value of the restricted stock units (including those that are performance-based) and restricted stock awards was determined based on the fair value of the Company’s common stock on the grant date. Beginning in the second quarter of 2015, the Company granted performance-based restricted stock units (“Performance RSUs”) that vest upon the satisfaction of both a service condition and a Performance Vesting Condition. The Performance Vesting Condition occurred upon the effectiveness of the registration statement for the Company's IPO, which was September 25, 2018. As a result, the Company recognized the cumulative amount of unrecognized stock-based compensation expense of $89.9 million for services already rendered using the accelerated attribution method. As of December 31, 2018, the remaining unamortized stock-based compensation related to these awards was $27.6 million, which the Company expects to recognize on an accelerated basis over the remaining weighted-average requisite service periods of 1.5 years (see Note 7 for additional discussion). |
Business Combinations | Business Combinations When the Company acquires a business, the purchase consideration is allocated to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated respective fair values. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require the Company to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired users, acquired technology, and trade names from a market participant perspective, useful lives and discount rates. The Company’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to non-operating income (expense) in the consolidated statement of operations. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets with finite lives include property and equipment, capitalized internal-use software and acquisition intangible assets. Long-lived assets are depreciated or amortized over their estimated useful lives which are as follows: Building 40 years Computer equipment 2 to 5 years Furniture, fixtures, and other assets 5 years Leasehold improvements Shorter of remaining lease term or 5 years Purchased software 3 years Capitalized internal-use software 3 years Acquisition intangible assets: customer relationships 5 to 7 years Acquisition intangible assets: trade name 2 to 10 years Acquisition intangible assets: technology 3 to 8 years The Company continually evaluates whether events and circumstances have occurred that indicate the remaining estimated useful life of depreciable or amortizable long-lived assets may warrant revision or that the remaining balance may not be recoverable. When factors indicate that long-lived assets should be evaluated for possible impairment, the Company uses an estimate of the related undiscounted future cash flows over the remaining life of the long-lived assets in measuring whether they are recoverable. If the estimated undiscounted future cash flows do not exceed the carrying value of the asset, a loss is recorded as the excess of the asset’s carrying value over its fair value. The Company did not recognize any impairment of long-lived assets during the year ended December 31, 2017. As further discussed in Note 13 below, during the year ended December 31, 2018, the Company impaired $2.8 million of leasehold improvements. As further discussed in Notes 6 and 13 below, during the year ended December 31, 2016, the Company derecognized $3.7 million of intangible assets. The Company believes that the carrying values of long-lived assets as of December 31, 2018 are recoverable. Goodwill is not amortized but rather tested for impairment at least annually, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. Goodwill impairment is recognized when the carrying value of goodwill exceeds the implied fair value of the Company. The Company did not recognize any impairment of goodwill during each of the years ended December 31, 2018 and 2017. As further discussed in Notes 6 and 13 below, during the year ended December 31, 2016, the Company derecognized $12.2 million of goodwill. |
Foreign Currencies | Foreign Currencies The functional currency of the Company’s foreign subsidiaries is generally the U.S. Dollar. Monetary assets and liabilities are remeasured using foreign currency exchange rates at the end of the period, and non-monetary assets are remeasured based on historical exchange rates. Gains and losses due to foreign currency are the result of either the remeasurement of subsidiary balances or transactions denominated in currencies other than the foreign subsidiaries’ functional currency and are included in other non-operating income (expense), net in the statement of operations. For subsidiaries where the functional currency is the local currency, the assets and liabilities of those foreign subsidiaries are translated from their respective functional currencies into U.S. Dollars at the rates in effect at the balance sheet date and revenue and expense amounts are translated at a rate approximating the average exchange rate for the period. Foreign currency translation gains and losses are recorded to accumulated other comprehensive income (loss). During the year ended December 31, 2016, the Company substantially liquidated certain foreign subsidiaries and, in accordance with ASC 830, Foreign Currency Matters, derecognized the cumulative translation adjustment of $1.4 million in accumulated other comprehensive income (loss). As a result, the Company recognized a realized loss of $1.4 million within other non-operating income (expense) in the consolidated statement of operations. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents and accounts receivable. The Company places its cash and cash equivalents in banks, primarily in checking accounts and such amounts may at times exceed the federally insured limits. Cash equivalents consist of short-term money market funds (for which the Company had none in any of the periods presented), which are managed by reputable financial institutions. For purposes of its customer concentration disclosure, the Company defines a customer as an organization. An organization may consist of an individual paying user, multiple paying users within an organization or the organization itself. No single customer accounted for more than 10% of revenue during each of the years ended December 31, 2018, 2017 and 2016. No customers accounted for more than 10% of accounts receivable, net as of December 31, 2018 and 2017, respectively. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company applies the provisions of ASC 820, Fair Value Measurement Securities are classified as available for sale and are carried at fair value, with the change in unrealized gains and losses, net of tax, reported as a separate component on the consolidated statements of comprehensive income until realized. See Note 4 for additional disclosures regarding fair value measurements. |
Private Company Investments | Private Company Investments As noted below under “ Accounting Pronouncements Recently Adopted |
Impairment of Investments | Impairment of Investments The Company periodically reviews its investments for impairment. If the Company concludes that any of these investments are impaired, the Company determines whether such impairment is other-than-temporary. Factors considered to make such determination include the duration and severity of the impairment, the reason for the decline in value and the potential recovery period and the Company’s intent to sell. For debt securities, the Company also considers whether (1) it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, and (2) the amortized cost basis cannot be recovered as a result of credit losses. If the investment is considered to be other-than-temporarily impaired, the Company will record the investment at fair value by recognizing an impairment within other non-operating income (expense) in the consolidated statement of operations and establishing a new carrying value for the investment. |
Derivative Financial Instruments | Derivative Financial Instruments From time to time, the Company may use derivative financial instruments consisting of interest rate swaps to manage cash flow exposure under its credit facilities and accounts for such derivative financial instruments in accordance with ASC 815, Accounting for Derivative Instruments and Hedging Activities |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents primarily consist of cash on deposit with banks and investments in money market funds (for which the Company had none in any of the periods presented) with maturities of 90 days or less from the date of purchase. The Company also classifies amounts in transit from payment processors for customer credit card and debit card transactions as cash equivalents, because such amounts generally convert to cash within five days with little or no default risk. |
Accounts Receivable | Accounts Receivable Accounts receivable are customer obligations that arise due to the time taken to settle transactions through direct customer payments. The Company bills in advance for monthly contracts and generally bills annually in advance for contracts with terms of one year or longer when it has an unconditional contractual right to consideration. The Company also recognizes an immaterial amount of contract assets, or unbilled receivables, primarily relating to rights to consideration for services completed but not billed at the reporting date. Unbilled receivables are classified as receivables when the Company has the right to invoice the customer. The Company records an allowance for doubtful accounts based upon its assessment of various factors including the Company’s historical experience, the age of a customers’ accounts receivable balance, a customers’ credit quality, current economic conditions, historical bad debt expense trends and other factors that may affect a customers’ ability to pay to determine the level of allowance required. Amounts deemed uncollectible are recorded to the allowance for doubtful accounts with an offsetting charge in the statements of operations. |
Property and Equipment | Property and Equipment Property and equipment, excluding buildings capitalized under build-to-suit lease arrangements which are discussed below, are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Expenditures that improve an asset or extend its estimated useful life are capitalized. Costs of maintenance and repairs that do not improve or extend the lives of the respective assets are expensed as incurred. |
Capitalized Internal-Use Software and Website Development Costs | Capitalized Internal-Use Software and Website Development Costs The Company incurs development costs relating to its online survey platform as well as other software solely for internal-use. Costs relating to the planning and post‑implementation phases of development are expensed as incurred. Costs incurred in the development phase are capitalized and included in capitalized internal-use software, net and amortized over their estimated useful life, generally three years. Maintenance and training costs are expensed as incurred. |
Lease Accounting | Lease Accounting Except for the Company’s San Mateo building lease which is accounted for as a build-to-suit lease, the Company leases facilities, datacenters, and equipment which are accounted for as operating leases (as further described in Note 8). Rent escalations and concession provisions are considered in determining the total estimated rent expense to be incurred and which is recognized over the lease term on a straight-line basis. The Company records the difference between the rent paid and the straight-line rent as a deferred rent liability in the accompanying consolidated balance sheets. As of December 31, 2018, the deferred rent balance was $7.5 million ($0.3 million included in accrued expenses and other current liabilities and $7.2 million in other non-current liabilities). As of December 31, 2017, the deferred rent balance was $4.8 million ($0.2 million included in accrued expenses and other current liabilities and $4.6 million in other non-current liabilities). For build-to-suit lease arrangements, the Company may be deemed to be the building owner during the construction period for accounting purposes. In that circumstance, the Company records an asset and liability for estimated construction costs incurred under a build-to-suit lease arrangement to the extent the Company is involved in the construction of structural improvements or takes construction risk prior to commencement of a lease. The Company additionally has entered into subleases for unoccupied leased office space. To the extent there are losses associated with the sublease, they are recognized in the period the sublease is executed. Gains are recognized over the sublease life. Any sublease payments received in excess of the straight-line rent payments for the sublease are recorded in other non-operating income (expense). |
Legal and Other Contingencies | Legal and Other Contingencies The Company accrues a liability for either claims arising in the ordinary course of business, assessments resulting from non-income-based audits or litigation when it is probable that a loss has been incurred and the amount is reasonably estimable, the determination of which requires significant judgment. See Note 8 for additional information pertaining to legal and other contingencies. |
Liability for Sabbatical Leave | Liability for Sabbatical Leave The Company provides a sabbatical leave program to its employees whereby the Company’s full-time employees are eligible for four weeks of paid time-off after four years of continuous service. The Company accounts for sabbatical leaves in accordance with ASC 710, Compensated Absences |
Advertising and Promotion Costs | Advertising and Promotion Costs Expenses related to advertising, marketing and promotion of the Company’s product offerings are expensed as incurred. These costs mainly consist of search engine marketing related costs. The Company incurred $24.0 million, $17.6 million and $13.6 million during the years ended December 31, 2018, 2017 and 2016, respectively, which are included in sales and marketing expenses in the consolidated statements of operations. |
Cost of Revenue | Cost of Revenue Cost of revenue consists primarily of expenses associated with the delivery and distribution of the Company’s platform for users of the Company’s online survey platform. Cost of revenue generally consist of infrastructure costs, personnel costs and other related costs. Infrastructure costs generally include expenses related to the operation of the Company’s data centers, such as data center equipment depreciation and facility costs (such as co-location rentals), website hosting costs, credit card processing fees, amortization of capitalized software, charity donations and external sample costs. Personnel costs include salaries and bonuses, stock-based compensation expense, other employee benefits and travel-related expenses for employees whose primary responsibilities relate to supporting the Company’s infrastructure and delivering user support. Other related costs include amortization of acquired developed technology intangible assets and allocated overhead. |
Research and Development | Research and Development Research and development costs primarily include personnel costs (including salaries, bonuses, stock-based compensation expense, other employee benefits and travel-related expenses), costs for third-party consultants, depreciation of equipment used in research and development activities and allocated overhead. Except for costs associated with the development of internal-use software, research and development costs are expensed as incurred. |
Sales and Marketing, General and Administrative | Sales and Marketing Sales and marketing expenses relate to both self-serve and outbound sales activities. Sales and marketing expenses generally are comprised of personnel costs (including salaries, sales commissions and amortization of deferred sales commissions, stock-based compensation expense, other employee benefits and travel-related expenses), costs related to brand campaign fees, lead generation fees, amortization of acquired trade name and customer relationship intangible assets and allocated overhead. General and Administrative General and administrative expenses consist primarily of employee-related costs (including salaries, bonuses, stock-based compensation expense, other employee benefits and travel-related expenses) for legal, finance, human resources, and other administrative functions, as well as certain executives. In addition, general and administrative expenses include outside legal, accounting and other professional fees, non-income-based taxes and allocated overhead. |
Restructuring | Restructuring From time to time, the Company may implement a management-approved restructuring plan to improve efficiencies across the organization, reduce its cost structure, and/or better align its resources with the Company’s product strategy. Restructuring charges can include severance costs to eliminate a specified number of employees, infrastructure charges to vacate facilities and consolidate operations, contract cancellation costs and other related costs. In connection with such plans, the Company may incur restructuring costs comprised of employee severance and associated termination costs related to the reduction of its workforce, losses on its non-cancelable lease contracts, and other contract termination costs. Costs associated with a restructuring plan are recognized and measured at fair value in the consolidated statement of operations in the period in which the liability is incurred. These restructuring initiatives may require the Company to make estimates in several areas including: (i) expenses for employee severance and other separation costs; (ii) realizable values of assets made redundant, obsolete, or excessive; and (iii) the ability to generate sublease income and to terminate lease obligations at the estimated amounts. |
Other Non-Operating Income (Expense) | Other Non-Operating Income (Expense) Other non-operating income (expense), net consists primarily of interest income, net foreign currency exchange gains (losses), gain on sale of private company investments, net realized gains and losses related to investments, and other. The components of other non-operating income (expense) recognized in the consolidated financial statements is as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Interest Income $ 1,161 $ 59 $ 20 Foreign currency gains (losses), net (1,460 ) 85 (1,395 ) Currency translation adjustment upon subsidiary liquidation — — (1,397 ) Gain on sale of a private company investment 999 6,750 — Loss on debt modification / extinguishment (941 ) (194 ) — Other income (expense), net (57 ) 910 (1,478 ) Other non-operating income (expense), net $ (298 ) $ 7,610 $ (4,250 ) As of December 31, 2016, the Company had a private company investment of approximately $5.0 million accounted for using the cost method of accounting, which it sold in January 2017 for cash consideration of $11.7 million and recognized a gain of $6.7 million during the year ended December 31, 2017. Additionally, the Company is entitled to contingent consideration to be received over three years following the close of the transaction, subject to the private company meeting certain employee retention and financial targets. Subsequent earn-out amounts collected will be recorded as a gain when cash is received. In February 2018, the Company received its share of the first installment of the earn-out payment of $1.0 million, which was recognized as a gain during year ended December 31, 2018. |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability method. ASC 740, Accounting for Income Taxes, Valuation allowances are established when necessary to reduce the deferred tax assets when it is more likely than not that a portion or all of the deferred tax assets will not be realized. ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken on a tax return and provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company records uncertain tax positions on the basis of a two-step process in which: (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of technical merits of the position, and (2) for those tax positions that meet the more likely than not recognition threshold, the Company recognizes the tax benefit as the largest amount that is cumulatively more than 50% likely to be realized upon ultimate settlement with the related tax authority. From time to time, the Company engages in certain intercompany transactions and legal entity restructurings. The Company considers many factors when evaluating these transactions, including the alignment of their corporate structure with their organizational objectives and the operational and tax efficiency of their corporate structure, as well as the long-term cash flows and cash needs of its business. These transactions may impact the Company’s overall tax rate and/or result in additional cash tax payments. The impact in any period may be significant. These transactions may be complex and the impact of such transactions on future periods may be difficult to estimate. |
Accounting Pronouncements Recently Adopted and Not Yet Adopted | Accounting Pronouncements Recently Adopted In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers Other Assets and Deferred Costs—Contracts with Customers On January 1, 2018, the Company adopted the requirements of ASC 606 using the full retrospective transition method. The primary impact of adopting ASC 606 relates to the deferral of incremental sales commissions incurred to obtain subscription contracts. Prior to the adoption of ASC 606, such costs were expensed as incurred. The Company amortizes these costs on a straight-line basis over a period of benefit, estimated to be generally four years. The impact of adopting ASC 606 is as follows: • Consolidated statements of operations impact: A decrease in sales and marketing expense of $1.0 million and $0.9 million during the years ended December 31, 2017 and 2016, respectively; and • Consolidated balance sheets impact: An increase in total assets of $3.2 million as of December 31, 2017. Financial Instruments : In January 2016, the FASB issued ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10) : Recognition and Measurement of Financial Assets and Financial Liabilities . ASU 2016-01 amends certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. The most significant impact of ASU 2016-01 was for the Company’s private company investments whereby such investments are recorded at cost and adjusted for impairments and observable price changes through the consolidated statements of operations. ASU 2016-01 is effective for public companies with fiscal years beginning after December 15, 2017. The Company adopted ASU 2016-01 as of January 1, 2018 with no impact upon adoption. Stock Compensation : In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718) Scope of Modification Accounting , which amends and improves the current modification accounting guidance in ASC 718. As amended, the new accounting guidance would be applicable only when there is a change in value resulting from an equity award modification. ASU 2017-09 is effective for public companies with fiscal years beginning after December 15, 2017. The Company adopted ASU 2017-09 as of January 1, 2018 with no impact upon adoption. In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718) Improvements to Nonemployee Share-Based Payment Accounting Income Taxes : In October 2016, the FASB issued ASU 2016-16, Income Taxes: Intra-Entity Transfers Other than Inventory (Topic 740) , which requires entities to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for public companies with fiscal years beginning after December 15, 2017 and early adoption is permitted. The Company early adopted ASU 2016-16 as of January 1, 2018 with no impact upon adoption. Accounting Pronouncements Not Yet Adopted Leases : In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02, as modified through other ASUs issued subsequent to ASU 2016-02, generally requires companies to recognize operating and financing lease liabilities and corresponding right-of-use assets on the balance sheet. ASU 2016-02 is effective for public companies with fiscal years beginning after December 15, 2018 on a modified retrospective basis and early adoption is permitted. The Company plans to adopt the requirements of ASU 2016-02 as of January 1, 2019 including use of the transition method which allows for recognition of the cumulative-effect adjustments at the beginning of the adoption period. The Company currently expects that the lease for its San Mateo building (see Note 8 for additional information) will be classified as an operating lease upon adoption of ASU 2016-02, and, accordingly, the lease payments associated with the San Mateo building will be treated as operating expense in the consolidated statement of operations. Prior to adoption of ASU 2016-02, the lease payments were primarily included in interest expense in the consolidated statement of operations. Additionally, the Company currently expects that its operating leases will result in recognition of significant right-of-use assets and corresponding liabilities. The Company will continue to evaluate the effect of adopting this guidance on its consolidated financial statements and related disclosures up through the date of adoption. Internal-Use Software : In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract ("ASU 2018-15"). ASU 2018-15 amends current guidance to align the accounting for costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs associated with developing or obtaining internal-use software. Capitalized implementation costs must be expensed over the term of the hosting arrangement and presented in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement. ASU 2018-15 is effective for public companies with fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the effect of adopting this guidance on its consolidated financial statements and related disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Long-Lived Assets | Long-lived assets are depreciated or amortized over their estimated useful lives which are as follows: Building 40 years Computer equipment 2 to 5 years Furniture, fixtures, and other assets 5 years Leasehold improvements Shorter of remaining lease term or 5 years Purchased software 3 years Capitalized internal-use software 3 years Acquisition intangible assets: customer relationships 5 to 7 years Acquisition intangible assets: trade name 2 to 10 years Acquisition intangible assets: technology 3 to 8 years |
Components of Other Non-Operating Income (Expense) Recognized in Condensed Consolidated Financial Statements | The components of other non-operating income (expense) recognized in the consolidated financial statements is as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Interest Income $ 1,161 $ 59 $ 20 Foreign currency gains (losses), net (1,460 ) 85 (1,395 ) Currency translation adjustment upon subsidiary liquidation — — (1,397 ) Gain on sale of a private company investment 999 6,750 — Loss on debt modification / extinguishment (941 ) (194 ) — Other income (expense), net (57 ) 910 (1,478 ) Other non-operating income (expense), net $ (298 ) $ 7,610 $ (4,250 ) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | As of December 31, 2018 and 2017, property and equipment consisted of the following: (in thousands) December 31, 2018 December 31, 2017 Building $ 71,780 $ 71,780 Computer equipment 21,448 22,225 Leasehold improvements 56,396 54,004 Furniture, fixtures, and other assets 10,566 10,573 Gross property and equipment 160,190 158,582 Less: Accumulated depreciation (42,472 ) (27,251 ) Property and equipment, net $ 117,718 $ 131,331 |
Acquisitions, Intangible Asse_2
Acquisitions, Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Acquisitions Intangible Assets And Goodwill [Abstract] | |
Schedule of Intangible Assets, net | As of December 31, 2018 and 2017, capitalized internal-use software consisted of the following: (in thousands) December 31, 2018 December 31, 2017 Gross capitalized internal-use software $ 109,133 $ 95,607 Less: Accumulated amortization (75,853 ) (54,114 ) Capitalized internal use software, net $ 33,280 $ 41,493 As of December 31, 2018 and 2017, intangible assets, net consisted of the following: December 31, 2018 December 31, 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 47,696 $ (42,410 ) $ 5,286 $ 47,696 $ (40,696 ) $ 7,000 Trade name 6,072 (5,796 ) 276 6,072 (5,192 ) 880 Technology 22,007 (18,245 ) 3,762 22,007 (16,293 ) 5,714 Acquisition intangible assets, net $ 75,775 $ (66,451 ) $ 9,324 $ 75,775 $ (62,181 ) $ 13,594 |
Summary of Future Amortization Expense | As of December 31, 2018, future amortization expense by year is expected to be as follows: (in thousands) Capitalized internal-use software, net Acquisition intangible assets, net 2019 $ 12,662 $ 3,839 2020 5,925 2,952 2021 1,092 1,705 2022 — 828 Total amortization expense $ 19,679 $ 9,324 |
Schedule of Carrying Amount of Goodwill, Net | The changes in the carrying amount of goodwill, net were as follows (in thousands): Balance as of December 31, 2015 $ 349,043 Goodwill derecognition (12,182 ) Balance as of December 31, 2016 $ 336,861 Balance as of December 31, 2017 $ 336,861 Balance as of December 31, 2018 $ 336,861 |
Stockholders' Equity and Employ
Stockholders' Equity and Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Stock Option Activity | The following is a summary of stock option activity for the respective periods: Stock Options Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value (in thousands) Weighted Average Remaining Contractual Term (in years) Outstanding at December 31, 2015 13,039,688 $ 14.39 $ 11,142 8.8 Granted 5,014,600 $ 16.03 Exercised (45,444 ) $ 4.42 Forfeited (5,500,606 ) $ 15.99 Expired (479,616 ) $ 10.72 Outstanding, vested and expected to vest at December 31, 2016 12,028,622 $ 14.53 $ 9,903 8.3 Granted 4,139,372 $ 16.03 Exercised (35,352 ) $ 4.35 Forfeited (1,623,057 ) $ 16.02 Expired (700,516 ) $ 14.77 Outstanding, vested and expected to vest at December 31, 2017 13,809,069 $ 14.82 $ 9,292 7.8 Granted 5,735,643 $ 13.31 Exercised (81,849 ) $ 6.01 Forfeited (832,591 ) $ 15.01 Expired (177,897 ) $ 14.08 Outstanding, vested and expected to vest at December 31, 2018 18,452,375 $ 14.39 $ 8,482 7.5 Exercisable at December 31, 2018 10,435,039 $ 14.31 $ 8,436 6.6 |
Summary of Estimated Fair Value of ESPP Purchase Rights Using a Black-Scholes Option Pricing Model Assumptions | The Company estimated the fair value of ESPP purchase rights using a Black-Scholes-Merton option pricing model with the following assumptions: Year Ended December 31, 2018 2017 2016 Expected life (in years) 0.6 to 2.1 n/a n/a Risk-free interest rate 2.4% - 2.9% n/a n/a Volatility 38% - 40% n/a n/a Dividend yield —% n/a n/a Fair value of common stock $ 12.89 n/a n/a |
Summary of Stock-based Compensation Expense Recognized in Financial Statements | Stock-based compensation expense recognized in the consolidated financial statements is as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Cost of revenue $ 8,931 $ 2,503 $ 4,114 Research and development 48,739 9,918 5,756 Sales and marketing 19,046 8,069 8,712 General and administrative 55,054 14,496 12,301 Restructuring — — 2,074 Stock-based compensation expense, net of amounts capitalized 131,770 34,986 32,957 Capitalized stock-based compensation expense 2,609 3,119 6,090 Stock-based compensation expense $ 134,379 $ 38,105 $ 39,047 |
Summary of Unamortized Stock-based Compensation | As of December 31, 2018, unamortized stock-based compensation was as follows: Unrecognized stock-based compensation (in thousands) Weighted average vesting period (in years) Stock options $ 45,217 2.3 Restricted stock units (service-based) 7,548 2.7 Restricted stock units (performance-based) (1) 27,637 1.5 ESPP 4,587 1.9 Total unrecognized stock-based compensation $ 84,989 (1) The Performance Vesting Condition occurred upon the effectiveness of the registration statement for the Company's IPO, which was September 25, 2018. The remaining unrecognized stock-based compensation expense is recognized on an accelerated basis over the weighted-average remaining requisite service period. |
Restricted Stock Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Stock Awards and Restricted Stock Units | The following is a summary of restricted stock awards for the respective periods: Restricted Stock Awards Number of Shares Weighted Average Grant-Date Fair Value Weighted Average Remaining Contractual Term (in years) Unvested at December 31, 2015 1,406,975 $ 13.30 2.3 Vested (476,889 ) $ 11.18 Unvested at December 31, 2016 930,086 $ 14.38 1.6 Vested (449,220 ) $ 14.38 Unvested at December 31, 2017 480,866 $ 14.38 0.6 Vested (480,866 ) $ 14.38 Unvested at December 31, 2018 — $ 0.00 0.0 |
Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Restricted Stock Awards and Restricted Stock Units | The following is a summary of restricted stock units for the respective periods: Restricted Stock Units Number of Shares Weighted Average Grant-Date Fair Value Weighted Average Remaining Contractual Term (in years) Unvested at December 31, 2015 10,540,093 $ 13.70 3.5 Granted 5,492,600 $ 12.22 Vested, gross of shares withheld for employee payroll taxes (2,546,058 ) $ 11.58 Forfeited/canceled, including shares withheld for employee payroll taxes (4,952,860 ) $ 13.57 Unvested at December 31, 2016 8,533,775 $ 12.89 3.3 Granted 2,936,437 $ 11.91 Vested, gross of shares withheld for employee payroll taxes (1,443,302 ) $ 13.52 Forfeited/canceled, including shares withheld for employee payroll taxes (1,188,629 ) $ 12.71 Unvested at December 31, 2017 8,838,281 $ 12.52 2.2 Granted 3,911,841 $ 13.26 Vested, gross of shares withheld for employee payroll taxes (5,883,890 ) $ 12.75 Forfeited/canceled, including shares withheld for employee payroll taxes (1,114,186 ) $ 12.65 Unvested at December 31, 2018 5,752,046 $ 12.77 1.2 |
Out-of-the-Money Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Estimated Fair Value of Stock Options on Grant Date | The fair value of each out-of-the-money stock option was estimated on their grant dates using the following assumptions Year Ended December 31, 2018 2017 2016 Expected life (in years) n/a 5.7 to 6.1 7.0 to 9.2 Risk-free interest rate n/a 2.3% - 2.4% 1.7% - 2.0% Volatility n/a 50% 51% - 54% Dividend yield n/a —% —% Fair value of common stock n/a $11.84 to $12.33 $12.21 to $12.28 |
At-the-Money Stock Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of Estimated Fair Value of Stock Options on Grant Date | The fair value of each at-the-money stock option was estimated on their grant dates using the following assumptions: Year Ended December 31, 2018 2017 2016 Expected life (in years) 5.8 to 6.1 n/a n/a Risk-free interest rate 2.7% - 3.0% n/a n/a Volatility 43% - 60% n/a n/a Dividend yield —% n/a n/a Fair value of common stock $12.00 to $13.65 n/a n/a |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Operating Leases and Financing Obligations | As of December 31, 2018, future minimum lease payments under operating leases and financing obligations, net of sublease income, by year were as follows: Gross Minimum Lease Payments (in thousands) Financing Obligation- Leased Facility Operating Leases Sublease Income Minimum Lease Payments, net 2019 $ 10,621 $ 3,172 $ (5,409 ) $ 8,384 2020 10,956 2,479 (3,940 ) 9,495 2021 11,291 926 (2,799 ) 9,418 2022 11,649 635 (336 ) 11,948 2023 12,008 708 — 12,716 Thereafter 65,949 2,832 — 68,781 Total $ 122,474 $ 10,752 $ (12,484 ) $ 120,742 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Carrying Values of Debt | As of December 31, 2018 and 2017, the carrying values of debt were as follows: December 31, 2018 December 31, 2017 Issuance date Maturity date Amount (in thousands) Effective Interest Rate Amount (in thousands) Effective Interest Rate Revolving credit facilities, as modified February 2013 April 2022 $ — n/a $ 25,000 5.36% - 5.46% 2018 Refinancing Facility Agreement October 2018 October 2025 219,450 6.00% - 6.10% — n/a 2017 Refinancing Facility Agreement April 2017 April 2024 — n/a 298,500 5.66% - 5.84% Total debt $ 219,450 $ 323,500 Less: Unamortized issuance discount and issuance costs, net 2,035 5,179 Less: Current portion of debt, net 1,900 2,032 Long term debt, net $ 215,515 $ 316,289 |
Schedule of Future Minimum Payment Obligations of Principal Amounts Due | Principal and interest payments are due quarterly. As of December 31, 2018, future minimum payment obligations of principal amounts due by year under the 2018 Credit Facility were as follows (in thousands): 2019 $ 2,200 2020 2,200 2021 2,200 2022 2,200 2023 2,200 Thereafter 208,450 Total principal outstanding $ 219,450 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Summary of Loss from Operations Before Income Taxes Categorized Geographically | Loss from operations before income taxes is categorized geographically as follows: Year Ended December 31, (in thousands) 2018 2017 2016 United States $ (152,045 ) $ (40,775 ) $ (64,220 ) Foreign (2,547 ) 718 (7,426 ) Total loss from operations before income taxes $ (154,592 ) $ (40,057 ) $ (71,646 ) |
Schedule of Provision for (Benefit from) Income Taxes | The provision for (benefit from) income taxes consisted of the following: Year Ended December 31, (in thousands) 2018 2017 2016 Current income tax expense: Federal $ (70 ) $ (12 ) $ (6 ) State 48 23 45 Foreign 677 790 327 Total current income tax expense 655 801 366 Deferred income tax expense: Federal (483 ) (16,141 ) 4,109 State 562 (248 ) 311 Foreign (586 ) (459 ) (82 ) Total deferred income tax expense (507 ) (16,848 ) 4,338 Total provision for (benefit from) income taxes $ 148 $ (16,047 ) $ 4,704 |
Summary of Reconciliation of Company's Effective Tax Rate to Federal Statutory Rate | A reconciliation of the Company’s effective tax rate to the federal statutory rate is as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Tax at federal statutory rate $ (32,464 ) $ (14,020 ) $ (25,076 ) State income tax, net of federal tax benefit (6,764 ) (3,898 ) (2,255 ) Foreign tax rate differential 626 (493 ) 2,805 Stock-based compensation 2,378 2,645 1,981 Transition tax — 2,261 — Revaluation of deferred tax assets and liabilities — (10,259 ) — Research and development credits (5,247 ) (4,028 ) (992 ) Intangible asset write-off — — 2,434 Other (106 ) 659 2,092 Change in valuation allowance 41,725 11,086 23,715 Total provision for (benefit from) income taxes $ 148 $ (16,047 ) $ 4,704 |
Summary of Tax Effects of Temporary Differences Portions of Company's Deferred Tax Assets and Liabilities | As of December 31, 2018 and 2017, the tax effects of temporary differences that give rise to significant portions of the Company’s deferred tax assets and liabilities are as follows: (in thousands) December 31, 2018 December 31, 2017 Deferred tax assets: Net operating losses $ 41,419 $ 27,046 Tax credits 23,359 12,110 Stock-based compensation 25,208 11,372 Accrued compensation and related expenses 4,061 1,843 Financing obligation- leased facility 29,842 24,122 Other 463 1,462 Total deferred tax assets: 124,352 77,955 Valuation allowance (81,127 ) (34,664 ) Total deferred tax assets, net of valuation allowance: 43,225 43,291 Deferred tax liabilities: Depreciation and amortization (26,844 ) (30,708 ) Goodwill (19,307 ) (16,017 ) Total deferred tax liabilities: (46,151 ) (46,725 ) Total net deferred tax liabilities: $ (2,926 ) $ (3,434 ) |
Summary of Changes in Balances of Gross Unrecognized Tax Benefits | Changes in balances during 2018 and 2017 and ending balances as of December 31, 2018 and 2017 in gross unrecognized tax benefits were as follows: (in thousands) December 31, 2018 December 31, 2017 Beginning balances $ 1,486 $ 4,273 Increases related to tax positions taken during a prior year 584 2 Increases related to tax positions taken during the current year 1,351 288 Decreases related to tax positions taken during a prior year (70 ) (2,785 ) Decreases related to tax settlements with taxing authorities — (292 ) Ending balances $ 3,351 $ 1,486 |
Geographical Information (Table
Geographical Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Percentage of Revenue by Geographic Area | The following table sets forth the percentage of revenue by geographic area: Year Ended December 31, 2018 2017 2016 United States 64 % 65 % 64 % Rest of world 36 % 35 % 36 % |
Schedule of Percentage of Long-lived Assets by Geographic Area | As of December 31, 2018 and 2017, the following table summarizes the percentage of the Company’s long-lived assets by geographic area: Property and equipment, net Intangible assets, net December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 United States 94 % 99 % 82 % 82 % Canada 5 % * * * Ireland * * 18 % 18 % Rest of world 1 % 1 % — % — % * less than 1% |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Year Ended December 31, (in thousands, except per share amounts) 2018 2017 2016 Numerator: Net loss $ (154,740 ) $ (24,010 ) $ (76,350 ) Denominator: Weighted-average shares outstanding - basic and diluted 107,900 100,244 98,539 Net loss per common share - basic and diluted: $ (1.43 ) $ (0.24 ) $ (0.77 ) |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring And Related Activities [Abstract] | |
Summary of Pre-tax Costs Incurred | The restructuring plans were subject to applicable laws and consultation processes, as a part of the Company’s strategic plan to focus on its core product and improve efficiencies. In connection with these actions, the Company incurred the following pre-tax costs: Year Ended December 31, (in thousands) 2018 2017 2016 Employee severance $ 73 $ 498 $ 5,834 Contract termination and other costs 631 1,287 1,453 Stock based compensation — — 2,074 Impairment of property and equipment 2,821 — — Derecognition of goodwill and intangibles assets — — 15,895 Total restructuring costs $ 3,525 $ 1,785 $ 25,256 |
Company Overview and Basis of_2
Company Overview and Basis of Presentation - Initial Public Offering and Concurrent Private Placement - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 28, 2018 | Sep. 25, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Class Of Stock [Line Items] | |||||
Proceeds from issuance of common stock, net of underwriters' discounts and commissions | $ 225,336 | ||||
Offering costs | 7,173 | $ 0 | $ 0 | ||
Allocated share-based compensation expense | $ 89,900 | $ 131,770 | $ 34,986 | $ 32,957 | |
Restricted Stock Units | |||||
Class Of Stock [Line Items] | |||||
Number of shares released for awards where service and performance vesting conditions are met | 5,883,890 | 1,443,302 | 2,546,058 | ||
Restricted Stock Units | Initial Public Offering | |||||
Class Of Stock [Line Items] | |||||
Number of shares released for awards where service and performance vesting conditions are met | 2,574,499 | ||||
Recognized payroll tax withholding obligation | $ 21,400 | ||||
Allocated share-based compensation expense | $ 89,900 | ||||
Common Stock | |||||
Class Of Stock [Line Items] | |||||
Number of share, issued and sold | 20,583,000 | ||||
Proceeds from issuance of common stock, net of underwriters' discounts and commissions | $ 0 | ||||
Initial Public Offering | Common Stock | |||||
Class Of Stock [Line Items] | |||||
Number of share, issued and sold | 17,250,000 | ||||
Shares issued, price per share | $ 12 | ||||
Proceeds from issuance of common stock, net of underwriters' discounts and commissions | $ 192,500 | ||||
Underwriting discounts and commissions | $ 14,500 | ||||
Underwriters Option Included in IPO | Common Stock | |||||
Class Of Stock [Line Items] | |||||
Number of share, issued and sold | 2,250,000 | ||||
Private Placement | Common Stock | |||||
Class Of Stock [Line Items] | |||||
Number of share, issued and sold | 3,333,333 | ||||
Shares issued, price per share | $ 12 | ||||
Proceeds from issuance of common stock, net of underwriters' discounts and commissions | $ 40,000 | ||||
IPO and Private Placement | Common Stock | |||||
Class Of Stock [Line Items] | |||||
Proceeds from issuance of common stock, net of underwriters' discounts and commissions | 225,300 | ||||
Offering costs | $ 7,200 |
Company Overview and Basis of_3
Company Overview and Basis of Presentation - Segment Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of operating segment | 1 |
Company Overview and Basis of_4
Company Overview and Basis of Presentation - Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||
Related party expenses | $ 1.5 | $ 0.8 | $ 1 |
Maximum | Customer Concentration Risk | Sales Revenue, Net | |||
Related Party Transaction [Line Items] | |||
Substantial stockholder revenue percentage | 1.00% | 1.00% | 1.00% |
Substantial Stockholder | |||
Related Party Transaction [Line Items] | |||
Revenue | $ 1.7 | $ 2.1 | $ 1.8 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | Sep. 25, 2018USD ($) | Feb. 16, 2018USD ($) | Jan. 12, 2017USD ($) | Dec. 31, 2018USD ($)Instrument | Dec. 31, 2017USD ($)Instrument | Dec. 31, 2016USD ($)Instrument | Jan. 01, 2018USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Deferred revenue, revenue recognized | $ 83,300,000 | $ 76,400,000 | $ 72,000,000 | |||||
Deferred commissions, amortization period | 4 years | 4 years | ||||||
Amortization of deferred commissions | $ 1,600,000 | 1,000,000 | 500,000 | |||||
Impairment loss related to deferred commissions | 0 | 0 | 0 | |||||
Cumulative amount of unrecognized stock-based compensation expense recognized | $ 89,900,000 | 131,770,000 | 34,986,000 | 32,957,000 | ||||
Remaining unamortized stock-based compensation | $ 27,600,000 | |||||||
Remaining weighted-average requisite service periods | 1 year 6 months | |||||||
Impairment of long-lived assets | 0 | |||||||
Intangible assets, derecognized | 3,700,000 | |||||||
Impairment of property and equipment | $ 2,821,000 | 0 | 0 | |||||
Impairment of goodwill | 0 | 0 | ||||||
Goodwill, derecognized | 12,182,000 | |||||||
Currency translation adjustment upon subsidiary liquidation | 0 | 0 | 1,397,000 | |||||
Private company investment | 3,600,000 | $ 3,600,000 | $ 5,000,000 | |||||
Impairments on private company investment | 0 | |||||||
Observable price changes for private company investment | $ 0 | |||||||
Derivative financial instruments | Instrument | 0 | 0 | 0 | |||||
Deferred rent balance | $ 7,500,000 | $ 4,800,000 | ||||||
Liability for sabbatical leave, accrued balance | 4,400,000 | 3,600,000 | ||||||
Advertising and promotion costs | 24,000,000 | 17,600,000 | $ 13,600,000 | |||||
Cash consideration from sale of private company investment | $ 11,700,000 | |||||||
Gain on sale of private company investment | $ 999,000 | 6,750,000 | 0 | |||||
Sale of private company investment, period of contingent consideration to be received | 3 years | |||||||
Earn-out payment received | $ 1,000,000 | |||||||
Sales and marketing expense | [1],[2] | $ 95,783,000 | 73,511,000 | 73,970,000 | ||||
Total assets | 679,348,000 | 578,089,000 | ||||||
Adjustments of retained earnings | (332,268,000) | (177,571,000) | ||||||
Accounting Standards Update 2018-07 | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Adjustments of retained earnings | $ (43,000) | |||||||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Sales and marketing expense | (1,000,000) | $ (900,000) | ||||||
Total assets | 3,200,000 | |||||||
Accrued Expenses And Other Current Liabilities | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Deferred rent balance | 300,000 | 200,000 | ||||||
Other Non-Current Liabilities | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Deferred rent balance | 7,200,000 | 4,600,000 | ||||||
Liability for sabbatical leave, accrued balance | 2,100,000 | 1,900,000 | ||||||
Accrued Compensation | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Liability for sabbatical leave, accrued balance | $ 2,300,000 | $ 1,700,000 | ||||||
Capitalized Internal-Use Software | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Intangible assets estimated useful life | 3 years | |||||||
Customer Concentration Risk | Sales Revenue, Net | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Concentration of credit risk, customer | No single customer accounted for more than 10% of revenue | No single customer accounted for more than 10% of revenue | No single customer accounted for more than 10% of revenue | |||||
Customer Concentration Risk | Accounts Receivable | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Concentration of credit risk, customer | No customers accounted for more than 10% of accounts receivable, net | No customers accounted for more than 10% of accounts receivable, net | ||||||
Other Non-Operating Income (Expense) | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Currency translation adjustment upon subsidiary liquidation | $ (1,400,000) | |||||||
Out-of-the-Money Stock Option and At-the-Money Stock Option | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Share-based compensation, fair value assumptions, expected dividend rate | 0.00% | |||||||
Equity Incentive Plans | Time-Based Awards | New Hires | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Stock-based compensation, requisite service period | 4 years | |||||||
Equity Incentive Plans | Time-Based Awards | Existing Employees | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Stock-based compensation, requisite service period | 3 years | |||||||
[1] | Includes amortization of acquisition intangible assets as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Cost of revenue $1,952 $2,040 $4,505 Sales and marketing 2,318 2,421 4,267 Amortization of acquisition intangible assets $4,270 $4,461 $8,772 | |||||||
[2] | Includes stock-based compensation, net of amounts capitalized as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Cost of revenue $8,931 $2,503 $4,114 Research and development 48,739 9,918 5,756 Sales and marketing 19,046 8,069 8,712 General and administrative 55,054 14,496 12,301 Restructuring — — 2,074 Stock-based compensation, net of amounts capitalized $131,770 $34,986 $32,957 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-01-01 $ in Millions | Dec. 31, 2018USD ($) |
Summary Of Significant Accounting Policies [Line Items] | |
Revenue, unsatisfied performance obligation | $ 111 |
Performance obligation, expected timing of satisfaction, period | 12 months |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Long-Lived Assets (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Building | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Property and equipment, estimated useful life | 40 years |
Computer Equipment | Minimum | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Property and equipment, estimated useful life | 2 years |
Computer Equipment | Maximum | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Furniture, Fixtures, and Other Assets | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Leasehold Improvements | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Property and equipment, estimated useful life | Shorter of remaining lease term or 5 years |
Leasehold Improvements | Maximum | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Property and equipment, estimated useful life | 5 years |
Purchased software | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Property and equipment, estimated useful life | 3 years |
Capitalized Internal-Use Software | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Acquisition intangible assets, estimated useful life | 3 years |
Customer Relationships | Minimum | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Acquisition intangible assets, estimated useful life | 5 years |
Customer Relationships | Maximum | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Acquisition intangible assets, estimated useful life | 7 years |
Trade Name | Minimum | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Acquisition intangible assets, estimated useful life | 2 years |
Trade Name | Maximum | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Acquisition intangible assets, estimated useful life | 10 years |
Technology | Minimum | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Acquisition intangible assets, estimated useful life | 3 years |
Technology | Maximum | |
Estimated Useful Lives Of Long Lived Assets [Line Items] | |
Acquisition intangible assets, estimated useful life | 8 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Components of Other Non-Operating Income (Expense) Recognized in Condensed Consolidated Financial Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Nonoperating Income Expense [Abstract] | |||
Interest Income | $ 1,161 | $ 59 | $ 20 |
Foreign currency gains (losses), net | (1,460) | 85 | (1,395) |
Currency translation adjustment upon subsidiary liquidation | 0 | 0 | (1,397) |
Gain on sale of a private company investment | 999 | 6,750 | 0 |
Loss on debt modification / extinguishment | (941) | (194) | 0 |
Other income (expense), net | (57) | 910 | (1,478) |
Other non-operating income (expense), net | $ (298) | $ 7,610 | $ (4,250) |
Cash and Cash Equivalents - Add
Cash and Cash Equivalents - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash And Cash Equivalents [Abstract] | |||
Cash and cash equivalents | $ 153,807 | $ 35,345 | $ 23,287 |
Cash in transit for credit and debit card transactions | 2,000 | $ 1,900 | |
Restricted cash | $ 564,000 | ||
Restricted cash, asset, statement of financial position [extensible list] | us-gaap:OtherAssets |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Gross property and equipment | $ 160,190 | $ 158,582 |
Less: Accumulated depreciation | (42,472) | (27,251) |
Property and equipment, net | 117,718 | 131,331 |
Building | ||
Property Plant And Equipment [Line Items] | ||
Gross property and equipment | 71,780 | 71,780 |
Computer Equipment | ||
Property Plant And Equipment [Line Items] | ||
Gross property and equipment | 21,448 | 22,225 |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Gross property and equipment | 56,396 | 54,004 |
Furniture, Fixtures, and Other Assets | ||
Property Plant And Equipment [Line Items] | ||
Gross property and equipment | $ 10,566 | $ 10,573 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 19.5 | $ 15.9 | $ 8 |
Acquisitions, Intangible Asse_3
Acquisitions, Intangible Assets and Goodwill - Additional Information (Details) - USD ($) $ in Thousands | Jul. 31, 2015 | May 20, 2015 | Nov. 30, 2016 | Aug. 31, 2016 | Jul. 31, 2015 | May 31, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 31, 2016 | Dec. 31, 2015 |
Acquisitions Intangible Assets And Goodwill [Line Items] | |||||||||||
Residual of goodwill | $ 336,861 | $ 336,861 | $ 336,861 | $ 349,043 | |||||||
Intangibles derecognized, carrying value | 3,700 | ||||||||||
Amortization expense related to capitalized internal-use software | 21,700 | 21,100 | 19,400 | ||||||||
Amortization expense | 4,270 | 4,461 | $ 8,772 | ||||||||
Capitalized internal-use software, net | 33,280 | $ 41,493 | |||||||||
Capitalized Internal-Use Software Net in Development Phase | |||||||||||
Acquisitions Intangible Assets And Goodwill [Line Items] | |||||||||||
Capitalized internal-use software, net | $ 13,600 | ||||||||||
Renzu | |||||||||||
Acquisitions Intangible Assets And Goodwill [Line Items] | |||||||||||
Closing date of acquisition | May 20, 2015 | ||||||||||
Total purchase price | $ 17,000 | ||||||||||
Issuance of common stock | 10,300 | ||||||||||
Cash payment | 6,700 | ||||||||||
Business combination, net tangible liabilities | 700 | ||||||||||
Business combination, fair value identifiable intangible assets | 5,500 | ||||||||||
Residual of goodwill | $ 12,200 | ||||||||||
Goodwill derecognized, carrying value | $ 12,200 | ||||||||||
Intangibles derecognized, carrying value | $ 3,700 | ||||||||||
TechValidate | |||||||||||
Acquisitions Intangible Assets And Goodwill [Line Items] | |||||||||||
Closing date of acquisition | Jul. 31, 2015 | ||||||||||
Total purchase price | $ 60,400 | ||||||||||
Issuance of common stock | 23,800 | ||||||||||
Cash payment | $ 22,200 | $ 14,400 | $ 36,600 | ||||||||
Business combination, net tangible liabilities | 5,800 | 5,800 | |||||||||
Business combination, fair value identifiable intangible assets | 15,800 | 15,800 | |||||||||
Residual of goodwill | $ 50,400 | $ 50,400 |
Acquisitions, Intangible Asse_4
Acquisitions, Intangible Assets and Goodwill - Schedule of Capitalized Internal-Use-Software (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Capitalized Computer Software Net [Abstract] | ||
Gross capitalized internal-use software | $ 109,133 | $ 95,607 |
Less: Accumulated amortization | (75,853) | (54,114) |
Capitalized internal use software, net | $ 33,280 | $ 41,493 |
Acquisitions, Intangible Asse_5
Acquisitions, Intangible Assets and Goodwill -Schedule of Intangible Assets, Net (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Acquisition intangible assets, net, Gross Carrying Amount | $ 75,775 | $ 75,775 |
Acquisition intangible assets, net, Accumulated Amortization | (66,451) | (62,181) |
Acquisition intangible assets, net, Net Carrying Amount | 9,324 | 13,594 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquisition intangible assets, net, Gross Carrying Amount | 47,696 | 47,696 |
Acquisition intangible assets, net, Accumulated Amortization | (42,410) | (40,696) |
Acquisition intangible assets, net, Net Carrying Amount | 5,286 | 7,000 |
Trade Name | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquisition intangible assets, net, Gross Carrying Amount | 6,072 | 6,072 |
Acquisition intangible assets, net, Accumulated Amortization | (5,796) | (5,192) |
Acquisition intangible assets, net, Net Carrying Amount | 276 | 880 |
Technology | ||
Finite Lived Intangible Assets [Line Items] | ||
Acquisition intangible assets, net, Gross Carrying Amount | 22,007 | 22,007 |
Acquisition intangible assets, net, Accumulated Amortization | (18,245) | (16,293) |
Acquisition intangible assets, net, Net Carrying Amount | $ 3,762 | $ 5,714 |
Acquisitions, Intangible Asse_6
Acquisitions, Intangible Assets and Goodwil - Summary of Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Acquisition intangible assets, net, Net Carrying Amount | $ 9,324 | $ 13,594 |
Capitalized Internal-Use Software, Net | ||
Finite Lived Intangible Assets [Line Items] | ||
2,019 | 12,662 | |
2,020 | 5,925 | |
2,021 | 1,092 | |
2,022 | 0 | |
Acquisition intangible assets, net, Net Carrying Amount | 19,679 | |
Acquisition Intangible Assets, Net | ||
Finite Lived Intangible Assets [Line Items] | ||
2,019 | 3,839 | |
2,020 | 2,952 | |
2,021 | 1,705 | |
2,022 | 828 | |
Acquisition intangible assets, net, Net Carrying Amount | $ 9,324 |
Acquisitions, Intangible Asse_7
Acquisitions, Intangible Assets and Goodwill - Schedule of Carrying Amount of Goodwill, Net (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Beginning balance | $ 349,043 |
Goodwill derecognition | (12,182) |
Ending Balance | $ 336,861 |
Stockholders' Equity and Empl_2
Stockholders' Equity and Employee Benefit Plans - Common Stock and Preferred Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Class Of Stock [Line Items] | ||
Common stock, shares authorized | 800,000,000 | 800,000,000 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Preferred stock, shares authorized | 100,000,000 | 100,000,000 |
Preferred stock, par value | $ 0.00001 | $ 0.00001 |
Common Stock | ||
Class Of Stock [Line Items] | ||
Stock repurchased during period, shares | 1,159 | 11,791 |
Stock repurchased during period, value | $ 16 | $ 144 |
Stock repurchased, price per share | $ 13.65 | $ 12.21 |
Maximum | ||
Class Of Stock [Line Items] | ||
Shares authorized for issuance | 900,000,000 |
Stockholders' Equity and Empl_3
Stockholders' Equity and Employee Benefit Plans - Additional Information (Details) $ / shares in Units, $ in Thousands | Aug. 21, 2015USD ($)$ / sharesshares | Feb. 28, 2019shares | Mar. 31, 2018shares | Jun. 30, 2017shares | Dec. 31, 2018USD ($)offering_period$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | May 31, 2015$ / sharesshares | Sep. 05, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options granted | 2,225,766 | 5,735,643 | 4,139,372 | 5,014,600 | 16,700,000 | ||||
Stock options granted, price per share | $ / shares | $ 13.31 | $ 16.03 | $ 16.03 | $ 42.33 | |||||
Stock-based compensation expense | $ | $ 19,800 | $ 84,989 | |||||||
Recognized service period of new award | 4 years | ||||||||
Unrecognized compensation expense relating to repriced and exchanged awards | $ | 1,100 | ||||||||
August 2015 Modification | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options granted | 6,000,000 | ||||||||
Stock options granted, price per share | $ / shares | $ 16.03 | ||||||||
Stock options exchanged | 11,900,000 | ||||||||
Unrecognized share-based compensation expense, recognition end year | 2,019 | ||||||||
2016 Modification | General and Administrative and Restructuring Costs | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | 100,000 | ||||||||
Stock options | 900,000 | ||||||||
Stock-based compensation expense | $ | $ 2,500 | ||||||||
Second Quarter 2017 Modification | Sales and marketing | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | 500,000 | ||||||||
Stock-based compensation expense | $ | $ (1,100) | ||||||||
First Quarter 2018 Modification | Research and Development and Sales and Marketing Costs | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Restricted stock awards | 500,000 | ||||||||
Stock-based compensation expense | $ | $ (500) | ||||||||
Common Stock | August 2015 Modification | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Fair value of common stock | $ / shares | $ 14.38 | ||||||||
Out-of-the-Money Stock Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Fair value assumptions, method used | Lattice-Binomial Option Valuation Model | ||||||||
At-the-Money Stock Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Fair value assumptions, method used | Black-Scholes-Merton Valuation Model | ||||||||
Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock-based compensation expense | $ | $ 45,217 | ||||||||
Stock Options | 2016 Modification | General and Administrative and Restructuring Costs | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock-based compensation expense | $ | 1,400 | ||||||||
Restricted Stock Units | 2016 Modification | General and Administrative and Restructuring Costs | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock-based compensation expense | $ | $ 1,100 | ||||||||
Maximum | Out-of-the-Money Stock Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Fair value of common stock | $ / shares | $ 12.33 | $ 12.28 | |||||||
Maximum | At-the-Money Stock Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Fair value of common stock | $ / shares | $ 13.65 | ||||||||
Minimum | Out-of-the-Money Stock Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Fair value of common stock | $ / shares | $ 11.84 | $ 12.21 | |||||||
Minimum | At-the-Money Stock Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Fair value of common stock | $ / shares | $ 12 | ||||||||
2018 Equity Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock, shares reserved | 9,394,744 | ||||||||
2018 Equity Incentive Plan | Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares available for grant | 13,626,822 | ||||||||
2018 Equity Incentive Plan | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Annual increases in number of shares available for issuance | 12,500,000 | ||||||||
Percentage of outstanding shares | 5.00% | ||||||||
Equity Incentive Plans | Time-Based Awards | New Hires | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 4 years | ||||||||
Equity Incentive Plans | Time-Based Awards | Existing Employees | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period | 3 years | ||||||||
Equity Incentive Plans | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expiration period | 10 years | ||||||||
2018 Employee Stock Purchase Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock, shares reserved | 2,673,444 | ||||||||
Offering period | 24 months | ||||||||
Number of offering periods | offering_period | 4 | ||||||||
Length of purchase period | 6 months | ||||||||
Employee share purchase price percentage | 85.00% | ||||||||
Initial offering period start date | Sep. 25, 2018 | ||||||||
Initial offering period end date | Nov. 22, 2020 | ||||||||
Fair value of common stock | $ / shares | $ 12.89 | ||||||||
2018 Employee Stock Purchase Plan | Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares available for grant | 2,673,444 | ||||||||
2018 Employee Stock Purchase Plan | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Annual increases in number of shares available for issuance | 5,346,888 | ||||||||
Percentage of outstanding shares | 1.00% |
Stockholders' Equity and Empl_4
Stockholders' Equity and Employee Benefit Plans - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | 19 Months Ended | |||
Feb. 28, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 31, 2015 | |
Number of Shares | ||||||
Outstanding, vested and expected to vest, Beginning balance | 13,809,069 | 12,028,622 | 13,039,688 | |||
Granted | 2,225,766 | 5,735,643 | 4,139,372 | 5,014,600 | 16,700,000 | |
Exercised | (81,849) | (35,352) | (45,444) | |||
Forfeited | (832,591) | (1,623,057) | (5,500,606) | |||
Expired | (177,897) | (700,516) | (479,616) | |||
Outstanding, vested and expected to vest, Ending balance | 18,452,375 | 13,809,069 | 12,028,622 | 13,039,688 | ||
Exercisable at December 31, 2018 | 10,435,039 | |||||
Weighted Average Exercise Price | ||||||
Outstanding, vested and expected to vest, Beginning balance | $ 14.82 | $ 14.53 | $ 14.39 | |||
Granted | 13.31 | 16.03 | 16.03 | $ 42.33 | ||
Exercised | 6.01 | 4.35 | 4.42 | |||
Forfeited | 15.01 | 16.02 | 15.99 | |||
Expired | 14.08 | 14.77 | 10.72 | |||
Outstanding, vested and expected to vest, Ending balance | 14.39 | $ 14.82 | $ 14.53 | $ 14.39 | ||
Exercisable at December 31, 2018 | $ 14.31 | |||||
Additional Disclosures | ||||||
Outstanding, vested and expected to vest, Aggregate Intrinsic Value, Beginning balance | $ 8,482 | $ 9,292 | $ 9,903 | $ 11,142 | ||
Exercisable, Aggregate Intrinsic Value at September 30, 2018 | $ 8,436 | |||||
Outstanding, vested and expected to vest, Weighted Average Remaining Contractual Term | 7 years 6 months | 7 years 9 months 18 days | 8 years 3 months 18 days | 8 years 9 months 18 days | ||
Exercisable, Weighted Average Remaining Contractual Term | 6 years 7 months 6 days |
Stockholders' Equity and Empl_5
Stockholders' Equity and Employee Benefit Plans - Summary of Restricted Stock Awards (Details) - Restricted Stock Awards - $ / shares | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Shares | ||||
Unvested, Beginning balance | 480,866 | 930,086 | 1,406,975 | |
Vested | (480,866) | (449,220) | (476,889) | |
Unvested, Ending balance | 0 | 480,866 | 930,086 | 1,406,975 |
Weighted Average Grant-Date Fair Value | ||||
Unvested, Beginning balance | $ 14.38 | $ 14.38 | $ 13.30 | |
Vested | 14.38 | 14.38 | 11.18 | |
Unvested, Ending balance | $ 0 | $ 14.38 | $ 14.38 | $ 13.30 |
Weighted Average Remaining Contractual Term (in years) | ||||
Unvested, Weighted Average Remaining Contractual Term | 0 years | 7 months 6 days | 1 year 7 months 6 days | 2 years 3 months 18 days |
Stockholders' Equity and Empl_6
Stockholders' Equity and Employee Benefit Plans - Summary of Restricted Stock Units (Details) - Restricted Stock Units - $ / shares | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Shares | |||||
Unvested, Beginning balance | 8,838,281 | 8,533,775 | 10,540,093 | ||
Granted | 3,820,944 | 3,911,841 | 2,936,437 | 5,492,600 | |
Vested, gross of shares withheld for employee payroll taxes | (5,883,890) | (1,443,302) | (2,546,058) | ||
Forfeited/canceled, including shares withheld for employee payroll taxes | (1,114,186) | (1,188,629) | (4,952,860) | ||
Unvested, Ending balance | 5,752,046 | 8,838,281 | 8,533,775 | 10,540,093 | |
Weighted Average Grant-Date Fair Value | |||||
Unvested, Beginning balance | $ 12.52 | $ 12.89 | $ 13.70 | ||
Granted | 13.26 | 11.91 | 12.22 | ||
Vested, gross of shares withheld for employee payroll taxes | 12.75 | 13.52 | 11.58 | ||
Forfeited/canceled, including shares withheld for employee payroll taxes | 12.65 | 12.71 | 13.57 | ||
Unvested, Ending balance | $ 12.77 | $ 12.52 | $ 12.89 | $ 13.70 | |
Weighted Average Remaining Contractual Term (in years) | |||||
Unvested, Weighted Average Remaining Contractual Term | 1 year 2 months 12 days | 2 years 2 months 12 days | 3 years 3 months 18 days | 3 years 6 months |
Stockholders' Equity and Empl_7
Stockholders' Equity and Employee Benefit Plans - Summary of Estimated Fair Value of Stock Options and ESPP (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
2018 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 2.40% | ||
Risk-free interest rate, maximum | 2.90% | ||
Volatility, minimum | 38.00% | ||
Volatility, maximum | 40.00% | ||
Fair value of common stock | $ 12.89 | ||
Minimum | 2018 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (in years) | 7 months 6 days | ||
Maximum | 2018 Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (in years) | 2 years 1 month 6 days | ||
Out-of-the-Money Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 2.30% | 1.70% | |
Risk-free interest rate, maximum | 2.40% | 2.00% | |
Volatility | 50.00% | ||
Volatility, minimum | 51.00% | ||
Volatility, maximum | 54.00% | ||
Dividend yield | 0.00% | 0.00% | |
Out-of-the-Money Stock Option | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (in years) | 5 years 8 months 12 days | 7 years | |
Fair value of common stock | $ 11.84 | $ 12.21 | |
Out-of-the-Money Stock Option | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (in years) | 6 years 1 month 6 days | 9 years 2 months 12 days | |
Fair value of common stock | $ 12.33 | $ 12.28 | |
At-the-Money Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 2.70% | ||
Risk-free interest rate, maximum | 3.00% | ||
Volatility, minimum | 43.00% | ||
Volatility, maximum | 60.00% | ||
Dividend yield | 0.00% | ||
At-the-Money Stock Option | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (in years) | 5 years 9 months 18 days | ||
Fair value of common stock | $ 12 | ||
At-the-Money Stock Option | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (in years) | 6 years 1 month 6 days | ||
Fair value of common stock | $ 13.65 |
Stockholders' Equity and Empl_8
Stockholders' Equity and Employee Benefit Plans - Summary of Stock-based Compensation Expense Recognized in Financial Statements (Details) - USD ($) $ in Thousands | Sep. 25, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | $ 89,900 | $ 131,770 | $ 34,986 | $ 32,957 |
Capitalized stock-based compensation expense | 2,609 | 3,119 | 6,090 | |
Stock-based compensation expense | 134,379 | 38,105 | 39,047 | |
Cost of revenue | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | 8,931 | 2,503 | 4,114 | |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | 48,739 | 9,918 | 5,756 | |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | 19,046 | 8,069 | 8,712 | |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | 55,054 | 14,496 | 12,301 | |
Restructuring | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense, net of amounts capitalized | $ 0 | $ 0 | $ 2,074 |
Stockholders' Equity and Empl_9
Stockholders' Equity and Employee Benefit Plans - Unamortized Stock-based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Aug. 21, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation (in thousands) | $ 84,989 | $ 19,800 |
Weighted average vesting period (in years) | 1 year 6 months | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation (in thousands) | $ 45,217 | |
Weighted average vesting period (in years) | 2 years 3 months 18 days | |
Restricted Stock Units (Service-Based) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation (in thousands) | $ 7,548 | |
Weighted average vesting period (in years) | 2 years 8 months 12 days | |
Restricted Stock Units (Performance-Based) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation (in thousands) | $ 27,637 | |
Weighted average vesting period (in years) | 1 year 6 months | |
ESPP | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized stock-based compensation (in thousands) | $ 4,587 | |
Weighted average vesting period (in years) | 1 year 10 months 24 days |
Stockholders' Equity and Emp_10
Stockholders' Equity and Employee Benefit Plans - 401(k) Plan - Additional Information (Details) - United States - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Matching contribution of deferrals for eligible employees | 25.00% | ||
Matching contribution compensation expense | $ 2.3 | $ 1.8 | $ 1.7 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | |
Other Commitments [Line Items] | ||||
Gross rent expense | $ 4,000 | $ 3,900 | $ 4,100 | |
Financing obligation on leased facility | 92,009 | 93,385 | $ 93,385 | |
Non-cancellable purchase orders for procurement of goods and services to be received through 2021 | 15,700 | |||
Standby letters of credit issued | $ 7,800 | |||
San Mateo Facility | ||||
Other Commitments [Line Items] | ||||
Finance lease expiration period | Dec. 31, 2028 | |||
Capitalized construction costs | 71,800 | |||
Leasehold improvement costs reimbursed by landlord | 6,800 | $ 7,500 | 14,300 | |
Financing obligation on leased facility | $ 92,000 | $ 93,400 | $ 93,400 | |
Palo Alto Lease Termination | ||||
Other Commitments [Line Items] | ||||
Finance lease expiration period | Mar. 31, 2026 | |||
Derecognized the building’s net book value | $ 60,100 | |||
New lessee for sale of certain property and equipment | 3,000 | |||
Recognized gain on sale of property | $ 900 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Operating Leases and Financing Obligations, Net of Sublease Income (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Financing Obligation-Leased Facility | |
2,019 | $ 10,621 |
2,020 | 10,956 |
2,021 | 11,291 |
2,022 | 11,649 |
2,023 | 12,008 |
Thereafter | 65,949 |
Total | 122,474 |
Operating Leases | |
2,019 | 3,172 |
2,020 | 2,479 |
2,021 | 926 |
2,022 | 635 |
2,023 | 708 |
Thereafter | 2,832 |
Total | 10,752 |
Sublease Income | |
2,019 | (5,409) |
2,020 | (3,940) |
2,021 | (2,799) |
2,022 | (336) |
2,023 | 0 |
Thereafter | 0 |
Total | (12,484) |
Minimum Lease Payments, net | |
2,019 | 8,384 |
2,020 | 9,495 |
2,021 | 9,418 |
2,022 | 11,948 |
2,023 | 12,716 |
Thereafter | 68,781 |
Total | $ 120,742 |
Debt - Schedule of Carrying Val
Debt - Schedule of Carrying Values of Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Total debt | $ 219,450 | $ 323,500 |
Less: Unamortized issuance discount and issuance costs, net | 2,035 | 5,179 |
Debt, current | 1,900 | 2,032 |
Long term debt, net | $ 215,515 | 316,289 |
Revolving Credit Facility | Domestic Line of Credit | ||
Debt Instrument [Line Items] | ||
Issuance date | Feb. 28, 2013 | |
Maturity date | Apr. 30, 2022 | |
Total debt | $ 0 | $ 25,000 |
Revolving Credit Facility | Minimum | Domestic Line of Credit | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 5.36% | |
Revolving Credit Facility | Maximum | Domestic Line of Credit | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 5.46% | |
2018 Refinancing Facility Agreement | ||
Debt Instrument [Line Items] | ||
Issuance date | Oct. 31, 2018 | |
Maturity date | Oct. 10, 2025 | |
Total debt | $ 219,450 | $ 0 |
2018 Refinancing Facility Agreement | Minimum | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 6.00% | |
2018 Refinancing Facility Agreement | Maximum | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 6.10% | |
2017 Refinancing Facility Agreement | ||
Debt Instrument [Line Items] | ||
Issuance date | Apr. 30, 2017 | |
Maturity date | Apr. 30, 2024 | |
Total debt | $ 0 | $ 298,500 |
2017 Refinancing Facility Agreement | Minimum | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 5.66% | |
2017 Refinancing Facility Agreement | Maximum | ||
Debt Instrument [Line Items] | ||
Effective Interest Rate | 5.84% |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Oct. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 30, 2017 | Feb. 28, 2013 | |
Debt Instrument [Line Items] | ||||||
Loss on debt extinguishment | $ 941,000 | $ 194,000 | $ 0 | |||
Repayment of debt | 104,050,000 | 298,883,000 | $ 3,090,000 | |||
Unamortized issuance discount and issuance costs | (2,035,000) | (5,179,000) | ||||
Prepaid Expenses and Other Current Assets | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized issuance discount and issuance costs | 400,000 | |||||
Other Assets | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized issuance discount and issuance costs | $ 1,400,000 | |||||
Revolving Credit Facility | Domestic Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, due date | Apr. 30, 2022 | |||||
2013 Credit Facility | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 315,000,000 | |||||
Loss on debt extinguishment | $ 200,000 | |||||
2013 Credit Facility | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 75,000,000 | |||||
2017 Refinancing Facility Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Loss on debt extinguishment | $ 900,000 | |||||
Repayment of debt | 101,300,000 | |||||
Debt instrument, due date | Apr. 30, 2024 | |||||
2017 Refinancing Facility Agreement | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 300,000,000 | |||||
2017 Refinancing Facility Agreement | Revolving Credit Facility | Domestic Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 75,000,000 | |||||
2018 Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, due date | Oct. 10, 2025 | |||||
Line of credit facility, remaining borrowing capacity | $ 67,200,000 | |||||
2018 Credit Facility | Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | 220,000,000 | |||||
Debt instrument, quarterly principal payments | $ 550,000 | |||||
Debt instrument, due date | Oct. 10, 2025 | |||||
2018 Credit Facility | Term Loan | Alternate Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin | 2.75% | |||||
2018 Credit Facility | Term Loan | Eurocurrency Rate | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin | 3.75% | |||||
2018 Credit Facility | Domestic Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility, maximum borrowing capacity | $ 75,000,000 | |||||
Debt instrument, due date | Oct. 10, 2023 | |||||
2018 Credit Facility | Domestic Line of Credit | Alternate Base Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin | 0.75% | |||||
2018 Credit Facility | Domestic Line of Credit | Alternate Base Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin | 1.50% | |||||
2018 Credit Facility | Domestic Line of Credit | Eurocurrency Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin | 1.75% | |||||
2018 Credit Facility | Domestic Line of Credit | Eurocurrency Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Applicable margin | 2.50% |
Debt - Schedule of Future Minim
Debt - Schedule of Future Minimum Payment Obligations of Principal Amounts Due (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Disclosure [Abstract] | ||
2,019 | $ 2,200 | |
2,020 | 2,200 | |
2,021 | 2,200 | |
2,022 | 2,200 | |
2,023 | 2,200 | |
Thereafter | 208,450 | |
Total principal outstanding | $ 219,450 | $ 323,500 |
Income Taxes - Summary of Loss
Income Taxes - Summary of Loss from Operations Before Income Taxes Categorized Geographically (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States | $ (152,045) | $ (40,775) | $ (64,220) |
Foreign | (2,547) | 718 | (7,426) |
Total loss from operations before income taxes | $ (154,592) | $ (40,057) | $ (71,646) |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current income tax expense: | |||
Federal | $ (70) | $ (12) | $ (6) |
State | 48 | 23 | 45 |
Foreign | 677 | 790 | 327 |
Total current income tax expense | 655 | 801 | 366 |
Deferred income tax expense: | |||
Federal | (483) | (16,141) | 4,109 |
State | 562 | (248) | 311 |
Foreign | (586) | (459) | (82) |
Total deferred income tax expense | (507) | (16,848) | 4,338 |
Total provision for (benefit from) income taxes | $ 148 | $ (16,047) | $ 4,704 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Company's Effective Tax Rate to Federal Statutory Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | $ (32,464) | $ (14,020) | $ (25,076) |
State income tax, net of federal tax benefit | (6,764) | (3,898) | (2,255) |
Foreign tax rate differential | 626 | (493) | 2,805 |
Stock-based compensation | 2,378 | 2,645 | 1,981 |
Transition tax | 0 | 2,261 | 0 |
Revaluation of deferred tax assets and liabilities | 0 | (10,259) | 0 |
Research and development credits | (5,247) | (4,028) | (992) |
Intangible asset write-off | 0 | 0 | 2,434 |
Other | (106) | 659 | 2,092 |
Change in valuation allowance | 41,725 | 11,086 | 23,715 |
Total provision for (benefit from) income taxes | $ 148 | $ (16,047) | $ 4,704 |
Income Taxes - Summary of Tax E
Income Taxes - Summary of Tax Effects of Temporary Differences Portions of Company's Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating losses | $ 41,419 | $ 27,046 |
Tax credits | 23,359 | 12,110 |
Stock-based compensation | 25,208 | 11,372 |
Accrued compensation and related expenses | 4,061 | 1,843 |
Financing obligation- leased facility | 29,842 | 24,122 |
Other | 463 | 1,462 |
Total deferred tax assets: | 124,352 | 77,955 |
Valuation allowance | (81,127) | (34,664) |
Total deferred tax assets, net of valuation allowance: | 43,225 | 43,291 |
Deferred tax liabilities: | ||
Depreciation and amortization | (26,844) | (30,708) |
Goodwill | (19,307) | (16,017) |
Total deferred tax liabilities: | (46,151) | (46,725) |
Total net deferred tax liabilities: | $ (2,926) | $ (3,434) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss And Tax Credit Carryforward [Line Items] | |||
Valuation allowance | $ 81,127,000 | $ 34,664,000 | |
Increase (decrease) in valuation allowance | 46,500,000 | (14,500,000) | |
Changes to amounts recorded for remeasurement of certain deferred tax assets and liabilities | 0 | ||
Change in valuation allowance adjustment on tax reform changes in the treatment of indefinite-lived attributes | 0 | ||
Final amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings | 400,000 | ||
Operating Loss carryforward offset to final amount related to the one-time transition tax on the mandatory deemed repatriation of foreign earnings | 400,000 | ||
Undistributed foreign earnings | 0 | ||
Additional outside basis differences on investments in foreign subsidiaries | 4,800,000 | ||
Cumulative unrecognized tax benefits | 3,351,000 | $ 1,486,000 | $ 4,273,000 |
Federal | |||
Operating Loss And Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards | $ 162,200,000 | ||
Operating loss carryforwards, expiration year | 2,019 | ||
Federal | Research and Development | |||
Operating Loss And Tax Credit Carryforward [Line Items] | |||
Research and development credits | $ 14,700,000 | ||
Research and development credits, expiration year | 2,032 | ||
State | |||
Operating Loss And Tax Credit Carryforward [Line Items] | |||
Operating loss carryforwards | $ 63,800,000 | ||
Operating loss carryforwards, expiration year | 2,019 | ||
State | Research and Development | |||
Operating Loss And Tax Credit Carryforward [Line Items] | |||
Research and development credits | $ 10,800,000 | ||
Foreign | Research and Development | |||
Operating Loss And Tax Credit Carryforward [Line Items] | |||
Research and development credits | $ 1,100,000 | ||
Research and development credits, expiration year | 2,037 |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Balances of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balances | $ 1,486 | $ 4,273 |
Increases related to tax positions taken during a prior year | 584 | 2 |
Increases related to tax positions taken during the current year | 1,351 | 288 |
Decreases related to tax positions taken during a prior year | (70) | (2,785) |
Decreases related to tax settlements with taxing authorities | 0 | (292) |
Ending balances | $ 3,351 | $ 1,486 |
Geographical Information - Sche
Geographical Information - Schedule of Percentage of Revenue by Geographic Area (Details) - Geographic Concentration Risk - Revenue | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
United States | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Percentage of revenue by geographic area | 64.00% | 65.00% | 64.00% |
Rest of World | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Percentage of revenue by geographic area | 36.00% | 35.00% | 36.00% |
Geographical Information - Sc_2
Geographical Information - Schedule of Percentage of Long-lived Assets by Geographic Area (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
United States | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Percentage of property and equipment, net by geographic area | 94.00% | 99.00% |
Percentage of intangible assets, net by geographic area | 82.00% | 82.00% |
Canada | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Percentage of property and equipment, net by geographic area | 5.00% | |
Ireland | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Percentage of intangible assets, net by geographic area | 18.00% | 18.00% |
Rest of World | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Percentage of property and equipment, net by geographic area | 1.00% | 1.00% |
Percentage of intangible assets, net by geographic area | 0.00% | 0.00% |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator: | |||
Net loss | $ (154,740) | $ (24,010) | $ (76,350) |
Denominator: | |||
Weighted-average shares outstanding - basic and diluted | 107,900 | 100,244 | 98,539 |
Net loss per common share - basic and diluted: | $ (1.43) | $ (0.24) | $ (0.77) |
Net Loss Per Share - Additional
Net Loss Per Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of net loss per share | 25.2 | 23.1 | 21.5 |
Restructuring Costs - Additiona
Restructuring Costs - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | 14 Months Ended | |||||
Nov. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | ||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring costs | [1] | $ 3,525 | $ 1,785 | $ 25,256 | |||||
Accrued Expenses And Other Current Liabilities | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Balances recorded in accrued expenses and other current liabilities | $ 600 | $ 1,000 | 600 | 1,000 | $ 600 | ||||
Other Non-Current Liabilities | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Balances recorded in other non-current liabilities | 300 | 400 | 300 | 400 | 300 | ||||
Derecognition of Goodwill And Intangibles Assets | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring costs | $ 0 | $ 0 | $ 15,895 | ||||||
November 2017 Restructuring Plan | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring costs | $ 3,500 | $ 1,700 | $ 5,200 | ||||||
November 2016 Restructuring Plan | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring costs | $ 1,500 | ||||||||
November 2016 Restructuring Plan | Derecognition of Goodwill And Intangibles Assets | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring costs | $ 15,900 | ||||||||
March 2016 Restructuring Plan | |||||||||
Restructuring Cost And Reserve [Line Items] | |||||||||
Restructuring costs | $ 7,900 | ||||||||
[1] | Includes stock-based compensation, net of amounts capitalized as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Cost of revenue $8,931 $2,503 $4,114 Research and development 48,739 9,918 5,756 Sales and marketing 19,046 8,069 8,712 General and administrative 55,054 14,496 12,301 Restructuring — — 2,074 Stock-based compensation, net of amounts capitalized $131,770 $34,986 $32,957 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Pre-tax Costs Incurred (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | [1] | $ 3,525 | $ 1,785 | $ 25,256 |
Employee Severance | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 73 | 498 | 5,834 | |
Contract Termination And Other Costs | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 631 | 1,287 | 1,453 | |
Stock Based Compensation | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 0 | 0 | 2,074 | |
Impairment of Property and Equipment | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | 2,821 | 0 | 0 | |
Derecognition of Goodwill And Intangibles Assets | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Restructuring costs | $ 0 | $ 0 | $ 15,895 | |
[1] | Includes stock-based compensation, net of amounts capitalized as follows: Year Ended December 31, (in thousands) 2018 2017 2016 Cost of revenue $8,931 $2,503 $4,114 Research and development 48,739 9,918 5,756 Sales and marketing 19,046 8,069 8,712 General and administrative 55,054 14,496 12,301 Restructuring — — 2,074 Stock-based compensation, net of amounts capitalized $131,770 $34,986 $32,957 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Sep. 25, 2018 | Feb. 16, 2018 | Feb. 28, 2019 | Jan. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 31, 2015 |
Subsequent Event [Line Items] | |||||||||
Earn-out payment received | $ 1,000 | ||||||||
Stock options granted | 2,225,766 | 5,735,643 | 4,139,372 | 5,014,600 | 16,700,000 | ||||
Allocated share-based compensation expense | $ 89,900 | $ 131,770 | $ 34,986 | $ 32,957 | |||||
Restricted Stock Units | |||||||||
Subsequent Event [Line Items] | |||||||||
Granted | 3,820,944 | 3,911,841 | 2,936,437 | 5,492,600 | |||||
Stock Options and Restricted Stock Units | |||||||||
Subsequent Event [Line Items] | |||||||||
Allocated share-based compensation expense | $ 66,300 | ||||||||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Earn-out payment received | $ 1,000 | ||||||||
Subsequent Event | 2018 Equity Incentive Plan | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of increased authorized shares of common stock | 6,290,894 | ||||||||
Subsequent Event | 2018 Employee Stock Purchase Plan | |||||||||
Subsequent Event [Line Items] | |||||||||
Number of increased authorized shares of common stock | 1,258,178 |