|
☒
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
26-2574840
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification Number)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Class A Common Stock, par value $0.001 per share
|
TWLO
|
The New York Stock Exchange
|
Large accelerated filer
|
☒
|
|
Accelerated filer
|
☐
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
|
|
|
Emerging growth company
|
☐
|
|
|
|
Page
|
|
PART I
|
|
|
PART II
|
|
|
PART III
|
|
|
PART IV
|
|
•
|
our future financial performance, including our revenue, cost of revenue, gross margin and operating expenses, ability to generate positive cash flow and ability to achieve and sustain profitability;
|
•
|
anticipated technology trends, such as the use of and demand for cloud communications;
|
•
|
our ability to continue to build and maintain credibility with the global software developer community;
|
•
|
our ability to attract and retain customers to use our products;
|
•
|
the evolution of technology affecting our products and markets;
|
•
|
our ability to introduce new products and enhance existing products;
|
•
|
our ability to comply with modified or new industry standards, laws and regulations applying to our business, including the General Data Protection Regulation (“GDPR”), the California Consumer Privacy Act of 2018 and other privacy regulations that may be implemented in the future, and Signature-based Handling of Asserted Information Using toKENs ("SHAKEN") and Secure Telephone Identity Revisited ("STIR") standards (together, "SHAKEN/STIR") and other robocalling prevention and anti-spam standards and increased costs associated with such compliance;
|
•
|
our ability to optimize our network service provider coverage and connectivity;
|
•
|
our ability to manage changes in network service provider fees that we pay in connection with the delivery of communications on our platform;
|
•
|
our ability to work closely with email inbox service providers to maintain deliverability rates;
|
•
|
our ability to pass on our savings associated with our platform optimization efforts to our customers;
|
•
|
the impact and expected results from changes in our relationship with our larger customers;
|
•
|
our ability to attract and retain enterprises and international organizations as customers for our products;
|
•
|
our ability to form and expand partnerships with technology partners and consulting partners;
|
•
|
our ability to successfully enter into new markets and manage our international expansion;
|
•
|
the attraction and retention of qualified employees and key personnel;
|
•
|
our ability to effectively manage our growth and future expenses and maintain our corporate culture;
|
•
|
our ability to compete effectively in an intensely competitive market;
|
•
|
the sufficiency of our cash and cash equivalents to meet our liquidity needs;
|
•
|
our anticipated investments in sales and marketing, research and development and additional systems and processes to support our growth;
|
•
|
our ability to maintain, protect and enhance our intellectual property;
|
•
|
our ability to successfully defend litigation brought against us;
|
•
|
our ability to service the interest on our convertible notes and repay such notes, to the extent required;
|
•
|
our customers' and other platform users' violation of our policies or other misuse of our platform;
|
•
|
our expectations about the impact of natural disasters and public health epidemics, such as the coronavirus on our business, results of operations and financial condition; and
|
•
|
our ability to successfully integrate and realize the benefits of our past or future strategic acquisitions or investments, including our acquisition of SendGrid, Inc. (“SendGrid”).
|
•
|
Anonymous Communications. Enabling users to have a trusted means of communications where they prefer not to share private information like their telephone number. Examples include conversations between drivers and riders or texting after meeting through a dating website.
|
•
|
Alerts and Notifications. Alerting a user that an event has occurred, such as when a table is ready, a flight is delayed or a package is shipped.
|
•
|
Contact Center. Improving customer support by powering customer care teams with voice, messaging and video capabilities that integrate with other systems to add context, such as a caller's support ticket history or present location.
|
•
|
Call Tracking. Using phone numbers to provide detailed analytics on phone calls to measure the effectiveness of marketing campaigns or lead generation activities in a manner similar to how web analytics track and measure online activity.
|
•
|
Marketing. Integrating messaging and email with marketing automation technology, allowing organizations to deliver targeted and timely contextualized communications to consumers.
|
•
|
User Security. Verifying user identity through two-factor authentication prior to log-in or validating transactions within an application's workflow. This adds an additional layer of security to any application.
|
•
|
Twilio For Good. Partnering with nonprofit organizations through Twilio.org, to use the power of communications to help solve social challenges, such as a short message service ("SMS") hotline to fight human trafficking, an emergency volunteer dispatch system and appointment reminders for medical visits in developing nations.
|
•
|
Programmable Voice. Our Programmable Voice software products allow developers to build solutions to make and receive phone calls globally, and to incorporate advanced voice functionality such as text-to-speech, conferencing, recording and transcription. Programmable Voice, through our advanced call control software, allows developers to build customized applications that address use cases such as contact centers, call tracking and analytics solutions and anonymized communications.
|
•
|
Programmable Messaging. Our Programmable Messaging software products allow developers to build solutions to send and receive messages globally, through channels like SMS, multimedia messaging service ("MMS"), short codes, Rich Communication Services ("RCS") messaging, WhatsApp, Facebook Messenger, and LINE, and incorporate advanced messaging functionality such as emoji, picture messaging and localized languages. Our customers use Programmable Messaging, through software controls, to power use cases, such as appointment reminders, delivery notifications, order confirmations and customer care.
|
•
|
Programmable Video. Our Programmable Video software products enable developers to build next-generation mobile and web applications with embedded video, including for use cases such as customer care, collaboration and physician consultations.
|
•
|
Email. Our email products serve as a digital communication platform that enables businesses to engage with their customers via email reliably, effectively and at scale. Businesses use the email products for both transactional and marketing emails. Transactional emails include shipping notifications, friend requests, password resets, and sign-up confirmations. Marketing emails include newsletters, advertising, announcements, and related communications to large audiences.
|
•
|
Continue Significant Investment in our Technology Platform. We will continue to invest in building new software capabilities and extending our platform to bring the power of contextual communications to a broader range of applications, geographies and customers. We have a substantial research and development team, comprising approximately 46% of our headcount as of December 31, 2019.
|
•
|
Grow Our Developer Community and Accelerate Adoption. We will continue to enhance our relationships with developers globally and seek to increase the number of developers on our platform. As of December 31, 2019, we had more than 179,000 Active Customer Accounts on our platform. In addition to adding new developers, we believe there is significant opportunity for revenue growth from developers who have already registered accounts with us but have not yet built their software applications with us, or whose applications are in their infancy and will grow with Twilio into an Active Customer Account.
|
•
|
Increase Our International Presence. Our platform serves over 180 countries today, making it as simple to communicate from São Paulo as it is from San Francisco. Customers outside the United States are increasingly adopting our platform, and for the years ended December 31, 2019 and 2018, revenue from international customer accounts accounted for 29% and 25% of our total revenue, respectively. We are investing to meet the requirements of a broader range of global developers and enterprises. We plan to grow internationally by continuing to expand our operations outside of the United States and collaborating with international strategic partners.
|
•
|
Further Penetrate the Enterprises. We plan to drive greater awareness and adoption of Twilio from enterprises across industries. We intend to further increase our investment in sales and marketing to meet evolving enterprise needs globally, in addition to extending our enterprise-focused use cases and platform capabilities, like our Twilio Enterprise Plan. Additionally, we believe there is significant opportunity to expand our relationships with existing enterprise customers.
|
•
|
Expand Our Partner Channel. Our Twilio Build partner program is focused on growing our community of technology and consulting partners. Twilio Build's ecosystem of partners offers customers both packaged applications and consulting expertise that make it possible for any customer to innovate with Twilio regardless of region, industry, business model or development resources. To help our partners grow their businesses and innovate for their customers, this program provides go-to-market support, certification and training programs, and a partner success team. We have relationships with a number of technology partner customers that embed our products in the solutions that they sell to other businesses. We intend to expand our relationships with existing technology partner customers and to add new technology partner customers. We plan to invest in a range of initiatives to encourage increased collaboration with, and generation of revenue from, technology partner customers. We have started developing relationships with consulting partners who provide consulting and development services for organizations that have limited software development expertise to build our platform into their software applications. We intend to continue to invest in and develop the ecosystem for our solutions in partnership with consulting partners to accelerate awareness and adoption of our platform.
|
•
|
Selectively Pursue Acquisitions and Strategic Investments. We may selectively pursue acquisitions and strategic investments in businesses and technologies that strengthen our platform. From 2015 through 2019, we
|
•
|
Authy. Provides user authentication codes through a variety of formats based on the developer's needs. Authentication codes can be delivered through the Authy app on registered mobile phones, desktop, or smart devices or via SMS and voice automated phone calls. In addition, authentication can be determined through a push notification on registered smartphones
|
•
|
Lookup. Allows developers to validate number format, device type, and provider prior to sending messages or initiating calls.
|
•
|
Verify. Allows developers to deliver a one-time passcode through SMS or voice to verify that a user is in possession of the device being registered
|
•
|
Twilio Voice. Initiate, receive and manage phone calls globally, end to end through traditional voice technology or between web browsers and landlines or mobile phones. Voice calling can also be integrated natively in Apple iOS and Google Android apps.
|
•
|
Call Recording. Securely record, store, transcribe and retrieve voice calls in the cloud.
|
•
|
Global Conference. Integrate audio conferencing that intelligently routes calls through cloud data centers in the closest of nine geographic regions to reduce latency. Scales from Basic, for a limited number of participants, to Epic, for an unlimited number of participants.
|
•
|
Twilio SMS. Programmatically send, receive and track SMS messages around the world, supporting localized languages in nearly every market.
|
•
|
Twilio MMS. Exchange picture messages and more over U.S. and Canadian phone numbers from customer applications with built-in image transcoding and media storage.
|
•
|
Copilot. Intelligent software layer that handles tasks, such as dynamically sending messages from a phone number that best matches the geographic location of the recipient based on a global pool of numbers.
|
•
|
Programmable Chat. Deploy contextual, in-app messaging at global scale.
|
•
|
Channels. Programmatically send, receive and track messages to messaging apps such as WhatsApp, Facebook Messenger and LINE globally.
|
•
|
Toll-Free SMS. Send and receive text messages with the same toll-free number used for voice calls in the United States and Canada.
|
•
|
Twilio Video. Create rich, multi-party video experiences in web and mobile applications with features such as one-to-one and multi-party video calling, cloud based recordings, screen sharing etc.
|
•
|
Network Traversal. Provide low-latency, cost-effective and reliable Session Traversal Utilities for Network Address Translation ("STUN") and Traversal Using Relay for Network Address Translation ("TURN") capabilities distributed across five continents. This functionality allows developers to initiate peer-to-peer video sessions across any internet-connected device globally.
|
•
|
Integrations. Businesses can integrate our email API with multiple leading development frameworks and client libraries, including Node.js, Ruby, Python, Go, Hypertext Preprocessor, Java, and C#.
|
•
|
Internet Protocol ("IP"), Management. Domains and links can be customized, whether sending from shared IP address pools or a dedicated IP address, for improved reputation management and delivery.
|
•
|
Deliverability. Our custom Sender Policy Framework and DomainKeys Identified Mail record creation is designed to eliminate domain spoofing and phishing.
|
•
|
Mobile support. Our deep linking functionality enables email engagement for mobile apps.
|
•
|
Security. Our two-factor authentication, API key permissions, and IP Address Access Management helps enable secure management of our email API by our customers.
|
•
|
Phone Number Provisioning. Acquire local, national, mobile and/or toll-free phone numbers on demand in approximately 100 countries and connect them into the customers' applications.
|
•
|
Short Codes. A five to seven digit phone number in the United States, Canada and the United Kingdom used to send and receive a high-volume of messages per second.
|
•
|
Elastic SIP Trunking. Connect legacy voice applications to our Super Network over IP infrastructure with globally available phone numbers and pay-as-you-go pricing.
|
•
|
Interconnect. Connect privately to Twilio to enable enterprise grade security and quality of service for Twilio Voice and Elastic SIP Trunking.
|
•
|
completeness of offering;
|
•
|
credibility with developers;
|
•
|
global reach;
|
•
|
ease of integration and programmability;
|
•
|
product features;
|
•
|
platform scalability, reliability, security and performance;
|
•
|
brand awareness and reputation;
|
•
|
the strength of sales and marketing efforts;
|
•
|
customer support; and,
|
•
|
the cost of deploying and using our products.
|
•
|
legacy on-premises vendors, such as Avaya and Cisco;
|
•
|
regional network service providers that offer limited developer functionality on top of their own physical infrastructure;
|
•
|
smaller software companies that compete with portions of our product line; and,
|
•
|
software-as-a-service ("SaaS") companies and cloud platform vendors that offer prepackaged applications and platforms.
|
•
|
our ability to retain and increase revenue from existing customers and attract new customers;
|
•
|
fluctuations in the amount of revenue from our Active Customer Accounts;
|
•
|
our ability to attract and retain enterprises and international organizations as customers;
|
•
|
our ability to introduce new products and enhance existing products;
|
•
|
competition and the actions of our competitors, including pricing changes and the introduction of new products, services and geographies;
|
•
|
changes in laws, industry standards, regulations or regulatory enforcement, in the United States or internationally, including SHAKEN/STIR and other robocalling prevention and anti-spam standards as well as enhanced Know-Your-Client processes that impact our ability to market, sell or deliver our products;
|
•
|
the number of new employees;
|
•
|
changes in network service provider fees that we pay in connection with the delivery of communications on our platform;
|
•
|
changes in cloud infrastructure fees that we pay in connection with the operation of our platform;
|
•
|
changes in our pricing as a result of our optimization efforts or otherwise;
|
•
|
reductions in pricing as a result of negotiations with our larger customers;
|
•
|
the rate of expansion and productivity of our sales force, including our enterprise sales force, which has been a focus of our recent expansion efforts;
|
•
|
changes in the size and complexity of our customer relationships;
|
•
|
the length and complexity of the sales cycle for our services, especially for sales to larger enterprises, government and regulated organizations;
|
•
|
change in the mix of products that our customers use;
|
•
|
change in the revenue mix of U.S. and international products;
|
•
|
the amount and timing of operating costs and capital expenditures related to the operations and expansion of our business, including investments in our international expansion, additional systems and processes and research and development of new products and services;
|
•
|
significant security breaches of, technical difficulties with, or interruptions to, the delivery and use of our products on our platform;
|
•
|
the timing of customer payments and any difficulty in collecting accounts receivable from customers;
|
•
|
general economic conditions that may adversely affect a prospective customer’s ability or willingness to adopt our products, delay a prospective customer’s adoption decision, reduce the revenue that we generate from the use of our products or affect customer retention;
|
•
|
changes in foreign currency exchange rates and our ability to effectively hedge our foreign currency exposure;
|
•
|
extraordinary expenses such as litigation or other dispute‑related settlement payments;
|
•
|
sales tax and other tax determinations by authorities in the jurisdictions in which we conduct business;
|
•
|
the impact of new accounting pronouncements;
|
•
|
expenses in connection with mergers, acquisitions or other strategic transactions and the follow-on costs of integration;
|
•
|
our ability to realize the anticipated benefits from the acquisition of SendGrid, including the ability to retain SendGrid customers and to cross-sell additional products; and
|
•
|
fluctuations in stock‑based compensation expense.
|
•
|
legacy on‑premise vendors, such as Avaya and Cisco;
|
•
|
regional network service providers that offer limited developer functionality on top of their own physical infrastructure;
|
•
|
smaller software companies that compete with portions of our product line; and
|
•
|
software‑as‑a‑service (“SaaS”) companies and cloud platform vendors that offer prepackaged applications and platforms.
|
•
|
investments in our engineering team, improvements in security and data protection, the development of new products, features and functionality and enhancements to our platform;
|
•
|
sales and marketing, including the continued expansion of our direct sales organization and marketing programs, especially for enterprises and for organizations outside of the United States, and expanding our programs directed at increasing our brand awareness among current and new developers;
|
•
|
expansion of our operations and infrastructure, both domestically and internationally; and
|
•
|
general administration, including legal, accounting and other expenses related to being a public company.
|
•
|
exposure to political developments in the United Kingdom (“U.K.”), including the departure of the U.K. from the European Union ("EU") ("Brexit"), which has created an uncertain political and economic environment, instability for businesses, volatility in global financial markets and the value of foreign currencies, all of which could disrupt trade, the sale of our services and the mobility of our employees and contractors between the United Kingdom, EU and other jurisdictions. Any long–term impact from Brexit on our business and operations will depend, in part, on the outcome of the U.K.'s negotiations on tariffs, tax treaties, trade, regulatory, and other matters and may require us to expend significant time and expense to make adjustments to our business and operations.
|
•
|
the difficulty of managing and staffing international operations and the increased operations, travel, infrastructure and legal compliance costs associated with servicing international customers and operating numerous international locations;
|
•
|
our ability to effectively price our products in competitive international markets;
|
•
|
new and different sources of competition or other changes to our current competitive landscape;
|
•
|
understanding and reconciling different technical standards, data privacy and telecommunications regulations, registration and certification requirements outside the United States, which could prevent customers from deploying our products or limit their usage;
|
•
|
our ability to comply with the General Data Protection Regulation ("GDPR"), which went into effect on May 25, 2018 and laws, regulations and industry standards relating to data privacy, data localization and security enacted in countries and other regions in which we operate or do business;
|
•
|
potentially greater difficulty collecting accounts receivable and longer payment cycles;
|
•
|
higher or more variable network service provider fees outside of the United States;
|
•
|
the need to adapt and localize our products for specific countries;
|
•
|
the need to offer customer support in various languages;
|
•
|
difficulties in understanding and complying with local laws, regulations and customs in non-U.S. jurisdictions;
|
•
|
export controls and economic sanctions administered by the Department of Commerce Bureau of Industry and Security and the Treasury Department’s Office of Foreign Assets Control;
|
•
|
compliance with various anti‑bribery and anti‑corruption laws such as the Foreign Corrupt Practices Act and United Kingdom Bribery Act of 2010;
|
•
|
changes in international trade policies, tariffs and other non‑tariff barriers, such as quotas and local content rules;
|
•
|
more limited protection for intellectual property rights in some countries;
|
•
|
adverse tax consequences;
|
•
|
fluctuations in currency exchange rates, which could increase the price of our products outside of the United States, increase the expenses of our international operations and expose us to foreign currency exchange rate risk;
|
•
|
currency control regulations, which might restrict or prohibit our conversion of other currencies into U.S. dollars;
|
•
|
restrictions on the transfer of funds;
|
•
|
deterioration of political relations between the United States and other countries;
|
•
|
the impact of natural disasters and public health epidemics on employees, contractors, customers, partners, travel and the global economy; and
|
•
|
political or social unrest or economic instability in a specific country or region in which we operate, which could have an adverse impact on our operations in that location.
|
•
|
the Communications Act of 1934, as amended, which regulates communications services and the provision of such services;
|
•
|
the Telephone Consumer Protection Act, which limits the use of automatic dialing systems, artificial or prerecorded voice messages, SMS text messages and fax machines;
|
•
|
the Communications Assistance for Law Enforcement Act (“CALEA”), which requires covered entities to assist law enforcement in undertaking electronic surveillance;
|
•
|
requirements to safeguard the privacy of certain customer information;
|
•
|
payment of annual FCC regulatory fees and taxes based on our interstate and international revenues;
|
•
|
rules pertaining to access to our services by people with disabilities and contributions to the Telecommunications Relay Services fund; and
|
•
|
FCC rules regarding the use of customer proprietary network information.
|
•
|
issue additional equity securities that would dilute our existing stockholders;
|
•
|
use cash that we may need in the future to operate our business;
|
•
|
incur large charges or substantial liabilities;
|
•
|
incur debt on terms unfavorable to us or that we are unable to repay;
|
•
|
encounter difficulties retaining key employees of the acquired company or integrating diverse software codes or business cultures;
|
•
|
encounter difficulties retaining the acquired company's customers; or
|
•
|
become subject to adverse tax consequences, substantial depreciation, or deferred compensation charges.
|
•
|
price and volume fluctuations in the overall stock market from time to time;
|
•
|
volatility in the trading prices and trading volumes of technology stocks;
|
•
|
changes in operating performance and stock market valuations of other technology companies generally, or those in our industry in particular;
|
•
|
sales of shares of our Class A common stock by us or our stockholders;
|
•
|
failure of securities analysts to maintain coverage of us, changes in financial estimates by securities analysts who follow our company, or our failure to meet these estimates or the expectations of investors;
|
•
|
the financial projections we may provide to the public, any changes in those projections or our failure to meet those projections;
|
•
|
announcements by us or our competitors of new products or services;
|
•
|
the public’s reaction to our press releases, other public announcements and filings with the SEC;
|
•
|
rumors and market speculation involving us or other companies in our industry;
|
•
|
new laws or regulations or new interpretations of existing laws or regulations applicable to our business, including regulations relating to the prevention of spam and robocalls;
|
•
|
actual or anticipated changes in our results of operations or fluctuations in our results of operations;
|
•
|
actual or anticipated developments in our business, our competitors’ businesses or the competitive landscape generally;
|
•
|
litigation involving us, our industry or both, or investigations by regulators into our operations or those of our competitors;
|
•
|
developments or disputes concerning our intellectual property or other proprietary rights;
|
•
|
announced or completed acquisitions of businesses, products, services or technologies by us or our competitors;
|
•
|
changes in accounting standards, policies, guidelines, interpretations or principles;
|
•
|
any significant change in our management; and
|
•
|
general economic conditions and slow or negative growth of our markets.
|
•
|
authorizing “blank check” preferred stock, which could be issued by our board of directors without stockholder approval and may contain voting, liquidation, dividend and other rights superior to our Class A and Class B common stock;
|
•
|
limiting the liability of, and providing indemnification to, our directors and officers;
|
•
|
limiting the ability of our stockholders to call and bring business before special meetings;
|
•
|
providing for a dual class common stock structure in which holders of our Class B common stock have the ability to control the outcome of matters requiring stockholder approval, even if they own significantly less than a majority of the outstanding shares of our Class A and Class B common stock, including the election of directors and significant corporate transactions, such as a merger or other sale of our company or its assets;
|
•
|
providing that our board of directors is classified into three classes of directors with staggered three‑year terms;
|
•
|
prohibit stockholder action by written consent, which requires all stockholder actions to be taken at a meeting of our stockholders;
|
•
|
requiring advance notice of stockholder proposals for business to be conducted at meetings of our stockholders and for nominations of candidates for election to our board of directors; and
|
•
|
controlling the procedures for the conduct and scheduling of board of directors and stockholder meetings.
|
•
|
combining the companies’ corporate functions;
|
•
|
combining SendGrid’s business with our business in a manner that permits us to achieve the synergies anticipated to result from the acquisition, the failure of which would result in the anticipated benefits of the acquisition not being realized in the time frame currently anticipated or at all;
|
•
|
maintaining existing agreements with customers, distributors, providers, talent and vendors and avoiding delays in entering into new agreements with prospective customers, distributors, providers, talent and vendors;
|
•
|
determining whether and how to address possible differences in corporate cultures and management philosophies;
|
•
|
integrating the companies’ administrative and information technology infrastructure;
|
•
|
developing products and technology that allow value to be unlocked in the future;
|
•
|
evaluating and forecasting the financial impact of the acquisition transaction, including accounting charges; and
|
•
|
effecting potential actions that may be required in connection with obtaining regulatory approvals.
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
|
(In thousands, except share and per share amounts)
|
||||||||||||||||||
Revenue
|
|
$
|
1,134,468
|
|
|
$
|
650,067
|
|
|
$
|
399,020
|
|
|
$
|
277,335
|
|
|
$
|
166,919
|
|
Cost of revenue (1) (2)
|
|
525,551
|
|
|
300,841
|
|
|
182,895
|
|
|
120,520
|
|
|
74,454
|
|
|||||
Gross profit
|
|
608,917
|
|
|
349,226
|
|
|
216,125
|
|
|
156,815
|
|
|
92,465
|
|
|||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Research and development (1) (2)
|
|
391,355
|
|
|
171,358
|
|
|
120,739
|
|
|
77,926
|
|
|
42,559
|
|
|||||
Sales and marketing (1) (2)
|
|
369,079
|
|
|
175,555
|
|
|
100,669
|
|
|
65,267
|
|
|
49,308
|
|
|||||
General and administrative (1) (2)
|
|
218,268
|
|
|
117,548
|
|
|
60,791
|
|
|
54,937
|
|
|
35,991
|
|
|||||
Total operating expenses
|
|
978,702
|
|
|
464,461
|
|
|
282,199
|
|
|
198,130
|
|
|
127,858
|
|
|||||
Loss from operations
|
|
(369,785
|
)
|
|
(115,235
|
)
|
|
(66,074
|
)
|
|
(41,315
|
)
|
|
(35,393
|
)
|
|||||
Other income (expenses), net
|
|
7,569
|
|
|
(5,923
|
)
|
|
3,071
|
|
|
317
|
|
|
11
|
|
|||||
Loss before benefit (provision) for income taxes
|
|
(362,216
|
)
|
|
(121,158
|
)
|
|
(63,003
|
)
|
|
(40,998
|
)
|
|
(35,382
|
)
|
|||||
Benefit (provision) for income taxes
|
|
55,153
|
|
|
(791
|
)
|
|
(705
|
)
|
|
(326
|
)
|
|
(122
|
)
|
|||||
Net loss
|
|
(307,063
|
)
|
|
(121,949
|
)
|
|
(63,708
|
)
|
|
(41,324
|
)
|
|
(35,504
|
)
|
|||||
Deemed dividend to investors in relation to tender offer
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,392
|
)
|
|||||
Net loss attributable to common
stockholders |
|
$
|
(307,063
|
)
|
|
$
|
(121,949
|
)
|
|
$
|
(63,708
|
)
|
|
$
|
(41,324
|
)
|
|
$
|
(38,896
|
)
|
Net loss per share attributed to common
stockholders, basic and diluted |
|
$
|
(2.36
|
)
|
|
$
|
(1.26
|
)
|
|
$
|
(0.70
|
)
|
|
$
|
(0.78
|
)
|
|
$
|
(2.19
|
)
|
Weighted-average shares used in
computing net loss per share
attributable to common stockholders,
basic and diluted
|
|
130,083,046
|
|
|
97,130,339
|
|
|
91,224,607
|
|
|
53,116,675
|
|
|
17,746,526
|
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Number of Active Customer Accounts
(as of end date of period) (3) (4)
|
|
179,000
|
|
|
64,286
|
|
|
48,979
|
|
|
36,606
|
|
|
25,347
|
|
|||||
Base Revenue (in thousands) (3) (5)
|
|
$
|
1,059,808
|
|
|
$
|
593,017
|
|
|
$
|
365,490
|
|
|
$
|
245,548
|
|
|
$
|
136,851
|
|
Base Revenue Growth Rate (3)
|
|
79
|
%
|
|
62
|
%
|
|
49
|
%
|
|
79
|
%
|
|
81
|
%
|
|||||
Dollar-Based Net Expansion Rate (6)
|
|
136
|
%
|
|
140
|
%
|
|
128
|
%
|
|
161
|
%
|
|
155
|
%
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
|
(In thousands)
|
||||||||||||||||||
Cost of revenue
|
|
$
|
7,123
|
|
|
$
|
1,126
|
|
|
$
|
650
|
|
|
$
|
291
|
|
|
$
|
65
|
|
Research and development
|
|
126,012
|
|
|
42,277
|
|
|
22,808
|
|
|
12,946
|
|
|
4,046
|
|
|||||
Sales and marketing
|
|
60,886
|
|
|
23,616
|
|
|
9,822
|
|
|
4,972
|
|
|
2,389
|
|
|||||
General and administrative
|
|
70,297
|
|
|
26,254
|
|
|
16,339
|
|
|
6,016
|
|
|
2,377
|
|
|||||
Total
|
|
$
|
264,318
|
|
|
$
|
93,273
|
|
|
$
|
49,619
|
|
|
$
|
24,225
|
|
|
$
|
8,877
|
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
|
(In thousands)
|
||||||||||||||||||
Cost of revenue
|
|
$
|
45,267
|
|
|
$
|
5,656
|
|
|
$
|
4,644
|
|
|
$
|
619
|
|
|
$
|
239
|
|
Research and development
|
|
—
|
|
|
22
|
|
|
139
|
|
|
151
|
|
|
130
|
|
|||||
Sales and marketing
|
|
27,540
|
|
|
1,117
|
|
|
753
|
|
|
—
|
|
|
—
|
|
|||||
General and administrative
|
|
—
|
|
|
375
|
|
|
84
|
|
|
110
|
|
|
95
|
|
|||||
Total
|
|
$
|
72,807
|
|
|
$
|
7,170
|
|
|
$
|
5,620
|
|
|
$
|
880
|
|
|
$
|
464
|
|
|
|
As of December 31,
|
||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
|
(In thousands)
|
||||||||||||||||||
Cash and cash equivalents
|
|
$
|
253,660
|
|
|
$
|
487,215
|
|
|
$
|
115,286
|
|
|
$
|
305,665
|
|
|
$
|
108,835
|
|
Marketable securities
|
|
$
|
1,599,033
|
|
|
$
|
261,128
|
|
|
$
|
175,587
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Working capital
|
|
$
|
1,814,109
|
|
|
$
|
735,138
|
|
|
$
|
274,738
|
|
|
$
|
279,676
|
|
|
$
|
96,032
|
|
Property and equipment, net
|
|
$
|
141,256
|
|
|
$
|
63,534
|
|
|
$
|
50,541
|
|
|
$
|
37,552
|
|
|
$
|
14,058
|
|
Total assets
|
|
$
|
5,150,516
|
|
|
$
|
1,028,710
|
|
|
$
|
449,782
|
|
|
$
|
412,694
|
|
|
$
|
157,516
|
|
Total stockholders’ equity
|
|
$
|
4,279,411
|
|
|
$
|
438,235
|
|
|
$
|
359,846
|
|
|
$
|
329,447
|
|
|
$
|
116,625
|
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Reconciliation:
|
|
(In thousands)
|
||||||||||||||||||
Gross profit
|
|
$
|
608,917
|
|
|
$
|
349,226
|
|
|
$
|
216,125
|
|
|
$
|
156,815
|
|
|
$
|
92,465
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock-based compensation
|
|
7,123
|
|
|
1,126
|
|
|
650
|
|
|
291
|
|
|
65
|
|
|||||
Amortization of acquired intangibles
|
|
45,267
|
|
|
5,656
|
|
|
4,644
|
|
|
619
|
|
|
239
|
|
|||||
Payroll taxes related to stock-based compensation
|
|
104
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Non-GAAP gross profit
|
|
$
|
661,411
|
|
|
$
|
356,008
|
|
|
$
|
221,419
|
|
|
$
|
157,725
|
|
|
$
|
92,769
|
|
Non-GAAP gross margin
|
|
58
|
%
|
|
55
|
%
|
|
55
|
%
|
|
57
|
%
|
|
56
|
%
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Reconciliation:
|
|
(In thousands)
|
||||||||||||||||||
Operating expenses
|
|
$
|
978,702
|
|
|
$
|
464,461
|
|
|
$
|
282,199
|
|
|
$
|
198,130
|
|
|
$
|
127,858
|
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock-based compensation
|
|
(257,195
|
)
|
|
(92,147
|
)
|
|
(48,969
|
)
|
|
(23,934
|
)
|
|
(8,812
|
)
|
|||||
Amortization of acquired intangibles
|
|
(27,540
|
)
|
|
(1,514
|
)
|
|
(976
|
)
|
|
(261
|
)
|
|
(225
|
)
|
|||||
Stock repurchase
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,965
|
)
|
|||||
Acquisition-related expenses
|
|
(15,713
|
)
|
|
(4,481
|
)
|
|
(310
|
)
|
|
(499
|
)
|
|
(1,165
|
)
|
|||||
Release of tax liability upon obligation settlement
|
|
—
|
|
|
—
|
|
|
13,365
|
|
|
805
|
|
|
—
|
|
|||||
Charitable contributions
|
|
—
|
|
|
(7,121
|
)
|
|
(1,172
|
)
|
|
(3,860
|
)
|
|
—
|
|
|||||
Legal settlements/accruals
|
|
—
|
|
|
(1,710
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Gain on lease termination
|
|
—
|
|
|
—
|
|
|
295
|
|
|
—
|
|
|
—
|
|
|||||
Payroll taxes related to stock-based compensation
|
|
(15,084
|
)
|
|
(5,617
|
)
|
|
(2,950
|
)
|
|
(434
|
)
|
|
—
|
|
|||||
Non-GAAP operating expenses
|
|
$
|
663,170
|
|
|
$
|
351,871
|
|
|
$
|
241,482
|
|
|
$
|
169,947
|
|
|
$
|
115,691
|
|
|
|
Year Ended December 31,
|
||||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Reconciliation:
|
|
(In thousands)
|
||||||||||||||||||
Loss from operations
|
|
$
|
(369,785
|
)
|
|
$
|
(115,235
|
)
|
|
$
|
(66,074
|
)
|
|
$
|
(41,315
|
)
|
|
$
|
(35,393
|
)
|
Non-GAAP adjustments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Stock-based compensation
|
|
264,318
|
|
|
93,273
|
|
|
49,619
|
|
|
24,225
|
|
|
8,877
|
|
|||||
Amortization of acquired intangibles
|
|
72,807
|
|
|
7,170
|
|
|
5,620
|
|
|
880
|
|
|
464
|
|
|||||
Stock repurchase
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,965
|
|
|||||
Acquisition-related expenses
|
|
15,713
|
|
|
4,481
|
|
|
310
|
|
|
499
|
|
|
1,165
|
|
|||||
Release of tax liability upon obligation settlement
|
|
—
|
|
|
—
|
|
|
(13,365
|
)
|
|
(805
|
)
|
|
—
|
|
|||||
Charitable contributions
|
|
—
|
|
|
7,121
|
|
|
1,172
|
|
|
3,860
|
|
|
—
|
|
|||||
Legal settlements/accruals
|
|
—
|
|
|
1,710
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Gain on lease termination
|
|
—
|
|
|
—
|
|
|
(295
|
)
|
|
—
|
|
|
—
|
|
|||||
Payroll taxes related to stock-based compensation
|
|
15,188
|
|
|
5,617
|
|
|
2,950
|
|
|
434
|
|
|
—
|
|
|||||
Non-GAAP (loss) income from operations
|
|
$
|
(1,759
|
)
|
|
$
|
4,137
|
|
|
$
|
(20,063
|
)
|
|
$
|
(12,222
|
)
|
|
$
|
(22,922
|
)
|
Non-GAAP operating margin
|
|
—
|
%
|
|
1
|
%
|
|
(5
|
)%
|
|
(4
|
)%
|
|
(14
|
)%
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Number of Active Customer Accounts (as of end date of period) (1)
|
|
179,000
|
|
|
64,286
|
|
|
48,979
|
|
|||
Base Revenue (in thousands) (1)
|
|
$
|
1,059,808
|
|
|
$
|
593,017
|
|
|
$
|
365,490
|
|
Base Revenue Growth Rate (1)
|
|
79
|
%
|
|
62
|
%
|
|
49
|
%
|
|||
Dollar-Based Net Expansion Rate
|
|
136
|
%
|
|
140
|
%
|
|
128
|
%
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(In thousands, except share and per share amounts)
|
||||||||||
Revenue
|
|
$
|
1,134,468
|
|
|
$
|
650,067
|
|
|
$
|
399,020
|
|
Cost of revenue (1) (2)
|
|
525,551
|
|
|
300,841
|
|
|
182,895
|
|
|||
Gross profit
|
|
608,917
|
|
|
349,226
|
|
|
216,125
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
||||||
Research and development (1) (2)
|
|
391,355
|
|
|
171,358
|
|
|
120,739
|
|
|||
Sales and marketing (1) (2)
|
|
369,079
|
|
|
175,555
|
|
|
100,669
|
|
|||
General and administrative (1) (2)
|
|
218,268
|
|
|
117,548
|
|
|
60,791
|
|
|||
Total operating expenses
|
|
978,702
|
|
|
464,461
|
|
|
282,199
|
|
|||
Loss from operations
|
|
(369,785
|
)
|
|
(115,235
|
)
|
|
(66,074
|
)
|
|||
Other income (expenses), net
|
|
7,569
|
|
|
(5,923
|
)
|
|
3,071
|
|
|||
Loss before benefit (provision) for income taxes
|
|
(362,216
|
)
|
|
(121,158
|
)
|
|
(63,003
|
)
|
|||
Benefit (provision) for income taxes
|
|
55,153
|
|
|
(791
|
)
|
|
(705
|
)
|
|||
Net loss attributable to common
stockholders |
|
(307,063
|
)
|
|
(121,949
|
)
|
|
(63,708
|
)
|
|||
Net loss per share attributed to common
stockholders, basic and diluted |
|
$
|
(2.36
|
)
|
|
$
|
(1.26
|
)
|
|
$
|
(0.70
|
)
|
Weighted-average shares used in computing net
loss per share attributable to common
stockholders, basic and diluted
|
|
130,083,046
|
|
|
97,130,339
|
|
|
91,224,607
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(In thousands)
|
||||||||||
Cost of revenue
|
|
$
|
7,123
|
|
|
$
|
1,126
|
|
|
$
|
650
|
|
Research and development
|
|
126,012
|
|
|
42,277
|
|
|
22,808
|
|
|||
Sales and marketing
|
|
60,886
|
|
|
23,616
|
|
|
9,822
|
|
|||
General and administrative
|
|
70,297
|
|
|
26,254
|
|
|
16,339
|
|
|||
Total
|
|
$
|
264,318
|
|
|
$
|
93,273
|
|
|
$
|
49,619
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(In thousands)
|
||||||||||
Cost of revenue
|
|
$
|
45,267
|
|
|
$
|
5,656
|
|
|
$
|
4,644
|
|
Research and development
|
|
—
|
|
|
22
|
|
|
139
|
|
|||
Sales and marketing
|
|
27,540
|
|
|
1,117
|
|
|
753
|
|
|||
General and administrative
|
|
—
|
|
|
375
|
|
|
84
|
|
|||
Total
|
|
$
|
72,807
|
|
|
$
|
7,170
|
|
|
$
|
5,620
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2018 to 2019
Change |
|
2017 to 2018
Change |
|||||||||||||||
|
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Base Revenue
|
|
$
|
1,059,808
|
|
|
$
|
593,017
|
|
|
$
|
365,490
|
|
|
$
|
466,791
|
|
|
79
|
%
|
|
$
|
227,527
|
|
62
|
%
|
Variable Revenue
|
|
74,660
|
|
|
57,050
|
|
|
33,530
|
|
|
17,610
|
|
|
31
|
%
|
|
23,520
|
|
70
|
%
|
|||||
Total Revenue
|
|
$
|
1,134,468
|
|
|
$
|
650,067
|
|
|
$
|
399,020
|
|
|
$
|
484,401
|
|
|
75
|
%
|
|
$
|
251,047
|
|
63
|
%
|
|
|
Year Ended December 31,
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2018 to 2019
Change |
|
2017 to 2018
Change |
|||||||||||||||
|
|
(Dollars in thousands)
|
|
|
|
|
|
|
|
||||||||||||||||
Cost of revenue
|
|
$
|
525,551
|
|
|
$
|
300,841
|
|
|
$
|
182,895
|
|
|
$
|
224,710
|
|
|
75
|
%
|
|
$
|
117,946
|
|
64
|
%
|
Gross margin
|
|
54
|
%
|
|
54
|
%
|
|
54
|
%
|
|
|
|
|
|
|
|
|
|
Year Ended December 31,
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2018 to 2019
Change |
|
2017 to 2018
Change |
|||||||||||||||
|
|
(Dollars in thousands)
|
|||||||||||||||||||||||
Research and development
|
|
$
|
391,355
|
|
|
$
|
171,358
|
|
|
$
|
120,739
|
|
|
$
|
219,997
|
|
|
128
|
%
|
|
$
|
50,619
|
|
42
|
%
|
Sales and marketing
|
|
369,079
|
|
|
175,555
|
|
|
100,669
|
|
|
193,524
|
|
|
110
|
%
|
|
74,886
|
|
74
|
%
|
|||||
General and administrative
|
|
218,268
|
|
|
117,548
|
|
|
60,791
|
|
|
100,720
|
|
|
86
|
%
|
|
56,757
|
|
93
|
%
|
|||||
Total operating expenses
|
|
$
|
978,702
|
|
|
$
|
464,461
|
|
|
$
|
282,199
|
|
|
$
|
514,241
|
|
|
111
|
%
|
|
$
|
182,262
|
|
65
|
%
|
|
|
Three Months Ended
|
||||||||||||||||||||||||||||||
|
|
Mar 31,
2018 |
|
Jun 30,
2018 |
|
Sep 30,
2018 |
|
Dec 31,
2018 |
|
Mar 31,
2019 |
|
Jun 30,
2019 |
|
Sep 30,
2019 |
|
Dec 31,
2019 |
||||||||||||||||
|
|
(Unaudited, in thousands)
|
||||||||||||||||||||||||||||||
Revenue
|
|
$
|
129,116
|
|
|
$
|
147,754
|
|
|
$
|
168,895
|
|
|
$
|
204,302
|
|
|
$
|
233,139
|
|
|
$
|
275,039
|
|
|
$
|
295,066
|
|
|
$
|
331,224
|
|
Cost of revenue (1) (2)
|
|
59,582
|
|
|
67,940
|
|
|
77,031
|
|
|
96,288
|
|
|
107,089
|
|
|
125,024
|
|
|
136,904
|
|
|
156,534
|
|
||||||||
Gross profit
|
|
69,534
|
|
|
79,814
|
|
|
91,864
|
|
|
108,014
|
|
|
126,050
|
|
|
150,015
|
|
|
158,162
|
|
|
174,690
|
|
||||||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Research and development (1) (2)
|
|
37,576
|
|
|
39,811
|
|
|
42,340
|
|
|
51,631
|
|
|
77,855
|
|
|
98,783
|
|
|
104,481
|
|
|
110,236
|
|
||||||||
Sales and marketing (1) (2)
|
|
32,822
|
|
|
37,749
|
|
|
45,949
|
|
|
59,035
|
|
|
71,607
|
|
|
90,421
|
|
|
100,657
|
|
|
106,394
|
|
||||||||
General and administrative (1) (2)
|
|
23,393
|
|
|
24,212
|
|
|
28,608
|
|
|
41,335
|
|
|
64,176
|
|
|
54,543
|
|
|
47,690
|
|
|
51,859
|
|
||||||||
Total operating expenses
|
|
93,791
|
|
|
101,772
|
|
|
116,897
|
|
|
152,001
|
|
|
213,638
|
|
|
243,747
|
|
|
252,828
|
|
|
268,489
|
|
||||||||
Loss from operations
|
|
(24,257
|
)
|
|
(21,958
|
)
|
|
(25,033
|
)
|
|
(43,987
|
)
|
|
(87,588
|
)
|
|
(93,732
|
)
|
|
(94,666
|
)
|
|
(93,799
|
)
|
||||||||
Other income (expenses), net
|
|
665
|
|
|
(1,898
|
)
|
|
(1,939
|
)
|
|
(2,751
|
)
|
|
(636
|
)
|
|
(880
|
)
|
|
4,377
|
|
|
4,708
|
|
||||||||
Loss before benefit (provision) for income taxes
|
|
(23,592
|
)
|
|
(23,856
|
)
|
|
(26,972
|
)
|
|
(46,738
|
)
|
|
(88,224
|
)
|
|
(94,612
|
)
|
|
(90,289
|
)
|
|
(89,091
|
)
|
||||||||
Benefit (provision) for income taxes
|
|
(137
|
)
|
|
(150
|
)
|
|
(84
|
)
|
|
(420
|
)
|
|
51,721
|
|
|
2,033
|
|
|
2,555
|
|
|
(1,156
|
)
|
||||||||
Net loss attributable to common stockholders
|
|
$
|
(23,729
|
)
|
|
$
|
(24,006
|
)
|
|
$
|
(27,056
|
)
|
|
$
|
(47,158
|
)
|
|
$
|
(36,503
|
)
|
|
$
|
(92,579
|
)
|
|
$
|
(87,734
|
)
|
|
$
|
(90,247
|
)
|
(1)
|
Includes stock-based compensation expense as follows:
|
|
|
Three Months Ended
|
||||||||||||||||||||||||||||||
|
|
Mar 31,
2018 |
|
Jun 30,
2018 |
|
Sep 30,
2018 |
|
Dec 31,
2018 |
|
Mar 31,
2019 |
|
Jun 30,
2019 |
|
Sep 30,
2019 |
|
Dec 31,
2019 |
||||||||||||||||
|
|
(Unaudited, in thousands)
|
||||||||||||||||||||||||||||||
Cost of revenue
|
|
$
|
222
|
|
|
$
|
266
|
|
|
$
|
284
|
|
|
$
|
354
|
|
|
$
|
1,809
|
|
|
$
|
1,623
|
|
|
$
|
1,674
|
|
|
$
|
2,017
|
|
Research and development
|
|
7,872
|
|
|
9,749
|
|
|
10,879
|
|
|
13,777
|
|
|
25,339
|
|
|
33,701
|
|
|
34,348
|
|
|
32,624
|
|
||||||||
Sales and marketing
|
|
3,859
|
|
|
5,049
|
|
|
5,246
|
|
|
9,462
|
|
|
11,749
|
|
|
14,564
|
|
|
16,143
|
|
|
18,430
|
|
||||||||
General and administrative
|
|
5,587
|
|
|
5,942
|
|
|
6,332
|
|
|
8,393
|
|
|
19,427
|
|
|
20,852
|
|
|
16,103
|
|
|
13,915
|
|
||||||||
Total
|
|
$
|
17,540
|
|
|
$
|
21,006
|
|
|
$
|
22,741
|
|
|
$
|
31,986
|
|
|
$
|
58,324
|
|
|
$
|
70,740
|
|
|
$
|
68,268
|
|
|
$
|
66,986
|
|
(2)
|
Includes amortization of acquired intangibles as follows:
|
|
|
Three Months Ended
|
||||||||||||||||||||||||||||||
|
|
Mar 31,
2018 |
|
Jun 30,
2018 |
|
Sep 30,
2018 |
|
Dec 31,
2018 |
|
Mar 31,
2019 |
|
Jun 30,
2019 |
|
Sep 30,
2019 |
|
Dec 31,
2019 |
||||||||||||||||
|
|
(Unaudited, in thousands)
|
||||||||||||||||||||||||||||||
Cost of revenue
|
|
$
|
1,198
|
|
|
$
|
1,125
|
|
|
$
|
1,396
|
|
|
$
|
1,937
|
|
|
$
|
8,460
|
|
|
$
|
11,857
|
|
|
$
|
12,549
|
|
|
$
|
12,401
|
|
Research and development
|
|
22
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Sales and marketing
|
|
220
|
|
|
206
|
|
|
390
|
|
|
301
|
|
|
5,003
|
|
|
7,329
|
|
|
7,322
|
|
|
7,886
|
|
||||||||
General and administrative
|
|
20
|
|
|
20
|
|
|
20
|
|
|
315
|
|
|
153
|
|
|
62
|
|
|
121
|
|
|
(336
|
)
|
||||||||
Total
|
|
$
|
1,460
|
|
|
$
|
1,351
|
|
|
$
|
1,806
|
|
|
$
|
2,553
|
|
|
$
|
13,616
|
|
|
$
|
19,248
|
|
|
$
|
19,992
|
|
|
$
|
19,951
|
|
*
|
Less than 0.5% of revenue.
|
**
|
Columns may not add up to 100% due to rounding.
|
|
|
Three Months Ended
|
||||||||||||||||||||||||||||||
|
|
Mar 31,
2018 |
|
Jun 30,
2018 |
|
Sep 30,
2018 |
|
Dec 31,
2018 |
|
Mar 31,
2019 |
|
Jun 30,
2019 |
|
Sep 30,
2019 |
|
Dec 31,
2019 |
||||||||||||||||
|
|
(Unaudited, dollars in thousands)
|
||||||||||||||||||||||||||||||
Number of Active Customer Accounts
(as of end date of period) (1) (2)
|
|
53,985
|
|
|
57,350
|
|
|
61,153
|
|
|
64,286
|
|
|
154,797
|
|
|
161,869
|
|
|
172,092
|
|
|
179,000
|
|
||||||||
Base Revenue (in thousands) (1) (3)
|
|
$
|
117,507
|
|
|
$
|
135,004
|
|
|
$
|
154,348
|
|
|
$
|
186,158
|
|
|
$
|
220,885
|
|
|
$
|
256,737
|
|
|
$
|
275,548
|
|
|
$
|
306,638
|
|
Base Revenue Growth Rate (1)
|
|
46
|
%
|
|
54
|
%
|
|
68
|
%
|
|
77
|
%
|
|
88
|
%
|
|
90
|
%
|
|
79
|
%
|
|
65
|
%
|
||||||||
Dollar-Based Net Expansion Rate (4)
|
|
132
|
%
|
|
137
|
%
|
|
145
|
%
|
|
147
|
%
|
|
146
|
%
|
|
140
|
%
|
|
132
|
%
|
|
124
|
%
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(In thousands)
|
||||||||||
Cash provided by (used in) operating activities
|
|
$
|
14,048
|
|
|
$
|
7,983
|
|
|
$
|
(3,255
|
)
|
Cash used in investing activities
|
|
(1,285,792
|
)
|
|
(139,419
|
)
|
|
(226,748
|
)
|
|||
Cash provided by financing activities
|
|
1,020,145
|
|
|
515,819
|
|
|
36,437
|
|
|||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
|
—
|
|
|
163
|
|
|
74
|
|
|||
Net (decrease) increase in cash, cash equivalents and restricted cash
|
|
$
|
(251,599
|
)
|
|
$
|
384,546
|
|
|
$
|
(193,492
|
)
|
|
|
Less Than One Year
|
|
One to Three Years
|
|
Three to Five Years
|
|
Five Years or More
|
|
Total Payments
|
||||||||||
|
|
(In thousands)
|
||||||||||||||||||
Operating leases (1)
|
|
$
|
35,997
|
|
|
$
|
67,976
|
|
|
$
|
53,259
|
|
|
$
|
43,125
|
|
|
$
|
200,357
|
|
Finance leases (2)
|
|
7,586
|
|
|
6,992
|
|
|
1,896
|
|
|
581
|
|
|
17,055
|
|
|||||
Convertible senior notes (3)
|
|
—
|
|
|
—
|
|
|
549,999
|
|
|
—
|
|
|
549,999
|
|
|||||
Noncancelable purchase obligations (4)
|
|
62,444
|
|
|
53,668
|
|
|
3,750
|
|
|
—
|
|
|
119,862
|
|
|||||
Total payments
|
|
$
|
106,027
|
|
|
$
|
128,636
|
|
|
$
|
608,904
|
|
|
$
|
43,706
|
|
|
$
|
887,273
|
|
|
Page
|
•
|
Evaluating the discount rate used by the Company to value the developed technology and customer relationship intangible assets by comparing it against a discount rate range that was independently developed using publicly available data for comparable companies; and
|
•
|
Developing an estimate of the fair value of the developed technology and customer relationship intangible assets acquired using the Company’s cash flow forecast and independently developed discount rate, and comparing the results of our estimate of fair value to the Company’s fair value estimate.
|
|
|
As of December 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(In thousands, except share and per share amounts)
|
||||||
ASSETS
|
|
|
|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
253,660
|
|
|
$
|
487,215
|
|
Short-term marketable securities
|
|
1,599,033
|
|
|
261,128
|
|
||
Accounts receivable, net
|
|
154,067
|
|
|
97,712
|
|
||
Prepaid expenses and other current assets
|
|
54,571
|
|
|
26,893
|
|
||
Total current assets
|
|
2,061,331
|
|
|
872,948
|
|
||
Restricted cash
|
|
75
|
|
|
18,119
|
|
||
Property and equipment, net
|
|
141,256
|
|
|
63,534
|
|
||
Operating right-of-use asset
|
|
156,741
|
|
|
—
|
|
||
Intangible assets, net
|
|
460,849
|
|
|
27,558
|
|
||
Goodwill
|
|
2,296,784
|
|
|
38,165
|
|
||
Other long-term assets
|
|
33,480
|
|
|
8,386
|
|
||
Total assets
|
|
$
|
5,150,516
|
|
|
$
|
1,028,710
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
||||
Current liabilities:
|
|
|
|
|
||||
Accounts payable
|
|
$
|
39,099
|
|
|
$
|
18,495
|
|
Accrued expenses and other current liabilities
|
|
147,681
|
|
|
96,343
|
|
||
Deferred revenue and customer deposits
|
|
26,362
|
|
|
22,972
|
|
||
Operating lease liability, current
|
|
27,156
|
|
|
—
|
|
||
Finance lease liability, current
|
|
6,924
|
|
|
—
|
|
||
Total current liabilities
|
|
247,222
|
|
|
137,810
|
|
||
Operating lease liability, noncurrent
|
|
139,200
|
|
|
—
|
|
||
Finance lease liability, noncurrent
|
|
8,746
|
|
|
—
|
|
||
Convertible senior notes, net
|
|
458,190
|
|
|
434,496
|
|
||
Other long-term liabilities
|
|
17,747
|
|
|
18,169
|
|
||
Total liabilities
|
|
871,105
|
|
|
590,475
|
|
||
Commitments and contingencies (Note 12)
|
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
|
||||
Preferred stock, $0.001 par value, 100,000,000 shares authorized, none issued
|
|
—
|
|
|
—
|
|
||
Class A and Class B common stock, $0.001 par value per share
|
|
|
|
|
||||
Authorized shares 1,100,000,000 as of December 31, 2019 and 2018;
Issued and outstanding shares 138,412,799 and 100,080,228 as of December 31, 2019 and 2018 |
|
138
|
|
|
100
|
|
||
Additional paid-in capital
|
|
4,952,999
|
|
|
808,527
|
|
||
Accumulated other comprehensive income
|
|
5,086
|
|
|
1,282
|
|
||
Accumulated deficit
|
|
(678,812
|
)
|
|
(371,674
|
)
|
||
Total stockholders’ equity
|
|
4,279,411
|
|
|
438,235
|
|
||
Total liabilities and stockholders’ equity
|
|
$
|
5,150,516
|
|
|
$
|
1,028,710
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(In thousands, except share and per share amounts)
|
||||||||||
Revenue
|
|
$
|
1,134,468
|
|
|
$
|
650,067
|
|
|
$
|
399,020
|
|
Cost of revenue
|
|
525,551
|
|
|
300,841
|
|
|
182,895
|
|
|||
Gross profit
|
|
608,917
|
|
|
349,226
|
|
|
216,125
|
|
|||
Operating expenses:
|
|
|
|
|
|
|
||||||
Research and development
|
|
391,355
|
|
|
171,358
|
|
|
120,739
|
|
|||
Sales and marketing
|
|
369,079
|
|
|
175,555
|
|
|
100,669
|
|
|||
General and administrative
|
|
218,268
|
|
|
117,548
|
|
|
60,791
|
|
|||
Total operating expenses
|
|
978,702
|
|
|
464,461
|
|
|
282,199
|
|
|||
Loss from operations
|
|
(369,785
|
)
|
|
(115,235
|
)
|
|
(66,074
|
)
|
|||
Other income (expense), net
|
|
7,569
|
|
|
(5,923
|
)
|
|
3,071
|
|
|||
Loss before provision for income taxes
|
|
(362,216
|
)
|
|
(121,158
|
)
|
|
(63,003
|
)
|
|||
Income tax benefit (provision)
|
|
55,153
|
|
|
(791
|
)
|
|
(705
|
)
|
|||
Net loss attributable to common stockholders
|
|
$
|
(307,063
|
)
|
|
$
|
(121,949
|
)
|
|
$
|
(63,708
|
)
|
Net loss per share attributable to common stockholders, basic and diluted
|
|
$
|
(2.36
|
)
|
|
$
|
(1.26
|
)
|
|
$
|
(0.70
|
)
|
Weighted-average shares used in computing net loss per share attributable to common stockholders, basic and diluted
|
|
130,083,046
|
|
|
97,130,339
|
|
|
91,224,607
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(In thousands)
|
||||||||||
Net loss
|
|
$
|
(307,063
|
)
|
|
$
|
(121,949
|
)
|
|
$
|
(63,708
|
)
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
||||||
Unrealized gain (loss) on marketable securities, net of tax
|
|
3,804
|
|
|
258
|
|
|
(598
|
)
|
|||
Foreign currency translation
|
|
—
|
|
|
(1,001
|
)
|
|
2,623
|
|
|||
Total other comprehensive income (loss), net of tax
|
|
3,804
|
|
|
(743
|
)
|
|
2,025
|
|
|||
Comprehensive loss attributable to common stockholders
|
|
$
|
(303,259
|
)
|
|
$
|
(122,692
|
)
|
|
$
|
(61,683
|
)
|
|
|
Common Stock
Class A |
|
Common Stock
Class B |
|
Additional Paid In Capital
|
|
Accumulated Other Comprehensive Income
|
|
Accumulated Deficit
|
|
Total Stockholders' Equity
|
||||||||||||||||||
|
|
Shares
|
|
Amount
|
|
Shares
|
|
Amount
|
|
|
|
|
||||||||||||||||||
|
|
(In thousands, except share amounts)
|
||||||||||||||||||||||||||||
Balance as of December 31, 2016
|
|
49,996,410
|
|
|
$
|
51
|
|
|
37,252,138
|
|
|
$
|
36
|
|
|
$
|
516,090
|
|
|
$
|
—
|
|
|
$
|
(186,730
|
)
|
|
$
|
329,447
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(63,708
|
)
|
|
(63,708
|
)
|
||||||
Exercises of vested stock options
|
|
—
|
|
|
—
|
|
|
5,186,539
|
|
|
6
|
|
|
25,591
|
|
|
—
|
|
|
—
|
|
|
25,597
|
|
||||||
Vesting of early exercised stock options
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
378
|
|
|
—
|
|
|
—
|
|
|
378
|
|
||||||
Vesting of restricted stock units
|
|
360,116
|
|
|
—
|
|
|
351,255
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Value of equity awards withheld for tax liability
|
|
|
|
—
|
|
|
(22,538
|
)
|
|
—
|
|
|
(678
|
)
|
|
—
|
|
|
—
|
|
|
(678
|
)
|
|||||||
Exercises of unvested stock options
|
|
—
|
|
|
—
|
|
|
22,510
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Conversion of shares of Class B common stock into shares of Class A common stock
|
|
18,710,499
|
|
|
18
|
|
|
(18,710,499
|
)
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Shares issued under ESPP
|
|
794,142
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
11,917
|
|
|
—
|
|
|
—
|
|
|
11,918
|
|
||||||
Donated common stock
|
|
45,383
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,172
|
|
|
—
|
|
|
—
|
|
|
1,172
|
|
||||||
Repurchases of unvested stock options
|
|
—
|
|
|
—
|
|
|
(16,159
|
)
|
|
—
|
|
|
(100
|
)
|
|
—
|
|
|
|
|
(100
|
)
|
|||||||
Unrealized loss on marketable securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(598
|
)
|
|
—
|
|
|
(598
|
)
|
||||||
Foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,623
|
|
|
—
|
|
|
2,623
|
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
53,795
|
|
|
—
|
|
|
—
|
|
|
53,795
|
|
||||||
Balance as of December 31, 2017
|
|
69,906,550
|
|
|
70
|
|
|
24,063,246
|
|
|
24
|
|
|
608,165
|
|
|
2,025
|
|
|
(250,438
|
)
|
|
359,846
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(121,949
|
)
|
|
(121,949
|
)
|
Adjustment to opening retained earnings due to adoption of ASC 606
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
713
|
|
|
713
|
|
Exercises of vested stock options
|
|
—
|
|
|
—
|
|
|
3,625,991
|
|
|
4
|
|
|
29,732
|
|
|
—
|
|
|
—
|
|
|
29,736
|
|
Vesting of early exercised stock options
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
36
|
|
|
—
|
|
|
—
|
|
|
36
|
|
Vesting of restricted stock units
|
|
1,970,565
|
|
|
2
|
|
|
172,211
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
Value of equity awards withheld for tax liability
|
|
(25,932
|
)
|
|
—
|
|
|
(22,044
|
)
|
|
—
|
|
|
(2,654
|
)
|
|
—
|
|
|
—
|
|
|
(2,654
|
)
|
Exercises of unvested stock options
|
|
—
|
|
|
—
|
|
|
2,041
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Conversion of shares of Class B common stock into shares of Class A common stock
|
|
8,530,980
|
|
|
8
|
|
|
(8,530,980
|
)
|
|
(8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Shares issued under ESPP
|
|
325,262
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,122
|
|
|
—
|
|
|
—
|
|
|
10,122
|
|
Issuance of debt conversion option
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
119,435
|
|
|
—
|
|
|
—
|
|
|
119,435
|
|
Debt conversion option issuance costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,819
|
)
|
|
—
|
|
|
—
|
|
|
(2,819
|
)
|
Capped call option issuance costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(58,465
|
)
|
|
—
|
|
|
—
|
|
|
(58,465
|
)
|
Donated common stock
|
|
62,338
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,996
|
|
|
—
|
|
|
—
|
|
|
5,996
|
|
Unrealized gain on marketable securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
258
|
|
|
—
|
|
|
258
|
|
Foreign currency translation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,001
|
)
|
|
—
|
|
|
(1,001
|
)
|
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
98,979
|
|
|
—
|
|
|
—
|
|
|
98,979
|
|
Balance as of December 31, 2018
|
|
80,769,763
|
|
|
80
|
|
|
19,310,465
|
|
|
20
|
|
|
808,527
|
|
|
1,282
|
|
|
(371,674
|
)
|
|
438,235
|
|
Net loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(307,063
|
)
|
|
(307,063
|
)
|
||||||
Exercises of vested stock options
|
|
1,466,813
|
|
|
1
|
|
|
2,154,053
|
|
|
2
|
|
|
37,739
|
|
|
—
|
|
|
—
|
|
|
37,742
|
|
||||||
Recapitalization of a subsidiary
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
75
|
|
|
—
|
|
|
(75
|
)
|
|
—
|
|
||||||
Vesting of early exercised stock options
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21
|
|
|
—
|
|
|
—
|
|
|
21
|
|
||||||
Vesting of restricted stock units
|
|
2,775,788
|
|
|
2
|
|
|
117,331
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3
|
|
||||||
Value of equity awards withheld for tax liability
|
|
(23,543
|
)
|
|
—
|
|
|
(22,095
|
)
|
|
—
|
|
|
(5,412
|
)
|
|
—
|
|
|
—
|
|
|
(5,412
|
)
|
||||||
Conversion of shares of Class B common stock into shares of Class A common stock
|
|
10,029,127
|
|
|
9
|
|
|
(10,029,127
|
)
|
|
(9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Shares issued under ESPP
|
|
244,628
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,738
|
|
|
—
|
|
|
—
|
|
|
19,738
|
|
||||||
Issuance of common stock in connection with a follow-on public offering, net of underwriter discounts
|
|
8,064,515
|
|
|
8
|
|
|
—
|
|
|
—
|
|
|
979,992
|
|
|
|
|
|
|
980,000
|
|
||||||||
Costs related to the follow-on public offering
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(953
|
)
|
|
—
|
|
|
—
|
|
|
(953
|
)
|
||||||
Shares issued in acquisition
|
|
23,555,081
|
|
|
24
|
|
|
—
|
|
|
—
|
|
|
2,658,874
|
|
|
—
|
|
|
—
|
|
|
2,658,898
|
|
||||||
Value of equity awards assumed in acquisition
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
182,554
|
|
|
—
|
|
|
—
|
|
|
182,554
|
|
||||||
Unrealized gain on marketable securities
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,804
|
|
|
—
|
|
|
3,804
|
|
||||||
Stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
271,844
|
|
|
—
|
|
|
—
|
|
|
271,844
|
|
||||||
Balance as of December 31, 2019
|
|
126,882,172
|
|
|
$
|
124
|
|
|
11,530,627
|
|
|
$
|
14
|
|
|
$
|
4,952,999
|
|
|
$
|
5,086
|
|
|
$
|
(678,812
|
)
|
|
$
|
4,279,411
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
(In thousands)
|
||||||||||
Net loss
|
|
$
|
(307,063
|
)
|
|
$
|
(121,949
|
)
|
|
$
|
(63,708
|
)
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
|
|
|
|
|
|
|
||||||
Depreciation and amortization
|
|
110,430
|
|
|
26,095
|
|
|
18,764
|
|
|||
Non-cash reduction to the right-of-use asset
|
|
23,193
|
|
|
—
|
|
|
—
|
|
|||
Net amortization of investment premium and discount
|
|
(4,501
|
)
|
|
(1,496
|
)
|
|
262
|
|
|||
Amortization of debt discount and issuance costs
|
|
23,696
|
|
|
14,053
|
|
|
—
|
|
|||
Stock-based compensation
|
|
264,318
|
|
|
93,273
|
|
|
49,619
|
|
|||
Tax benefit related to release of valuation allowance
|
|
(55,745
|
)
|
|
—
|
|
|
—
|
|
|||
Other adjustments
|
|
7,676
|
|
|
12,824
|
|
|
2,018
|
|
|||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
||||||
Accounts receivable
|
|
(51,357
|
)
|
|
(58,234
|
)
|
|
(15,280
|
)
|
|||
Prepaid expenses and other current assets
|
|
(20,316
|
)
|
|
(8,739
|
)
|
|
2,214
|
|
|||
Other long-term assets
|
|
(18,021
|
)
|
|
(5,305
|
)
|
|
(1,984
|
)
|
|||
Accounts payable
|
|
17,255
|
|
|
6,980
|
|
|
5,433
|
|
|||
Accrued expenses and other current liabilities
|
|
46,154
|
|
|
45,120
|
|
|
(3,312
|
)
|
|||
Deferred revenue and customer deposits
|
|
2,968
|
|
|
5,958
|
|
|
3,560
|
|
|||
Operating right of use liability
|
|
(21,138
|
)
|
|
—
|
|
|
—
|
|
|||
Long-term liabilities
|
|
(3,501
|
)
|
|
(597
|
)
|
|
(841
|
)
|
|||
Net cash provided by (used in) operating activities
|
|
14,048
|
|
|
7,983
|
|
|
(3,255
|
)
|
|||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
||||||
Acquisitions, net of cash acquired
|
|
122,749
|
|
|
(30,574
|
)
|
|
(22,621
|
)
|
|||
Purchases of marketable securities and other investments
|
|
(2,038,422
|
)
|
|
(279,687
|
)
|
|
(293,186
|
)
|
|||
Proceeds from sales and maturities of marketable securities
|
|
697,171
|
|
|
195,497
|
|
|
115,877
|
|
|||
Capitalized software development costs
|
|
(21,922
|
)
|
|
(19,546
|
)
|
|
(17,280
|
)
|
|||
Purchases of long-lived assets
|
|
(45,368
|
)
|
|
(5,109
|
)
|
|
(9,538
|
)
|
|||
Net cash used in investing activities
|
|
(1,285,792
|
)
|
|
(139,419
|
)
|
|
(226,748
|
)
|
|||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
||||||
Proceeds from a public offering, net of underwriting discount
|
|
980,000
|
|
|
—
|
|
|
—
|
|
|||
Payments of costs related to public offerings
|
|
(877
|
)
|
|
—
|
|
|
(430
|
)
|
|||
Proceeds from issuance of convertible senior notes
|
|
—
|
|
|
550,000
|
|
|
—
|
|
|||
Payment of debt issuance costs
|
|
—
|
|
|
(12,941
|
)
|
|
—
|
|
|||
Purchase of capped call
|
|
—
|
|
|
(58,465
|
)
|
|
—
|
|
|||
Principal payments on notes payable
|
|
(5,400
|
)
|
|
—
|
|
|
—
|
|
|||
Principal payments on finance leases
|
|
(5,646
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from exercises of stock options and shares issued in ESPP
|
|
57,480
|
|
|
39,879
|
|
|
37,645
|
|
|||
Value of equity awards withheld for tax liabilities
|
|
(5,412
|
)
|
|
(2,654
|
)
|
|
(678
|
)
|
|||
Repurchases of common stock
|
|
—
|
|
|
—
|
|
|
(100
|
)
|
|||
Net cash provided by financing activities
|
|
1,020,145
|
|
|
515,819
|
|
|
36,437
|
|
|||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
|
—
|
|
|
163
|
|
|
74
|
|
|||
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
|
(251,599
|
)
|
|
384,546
|
|
|
(193,492
|
)
|
|||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH—Beginning of period
|
|
505,334
|
|
|
120,788
|
|
|
314,280
|
|
|||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period
|
|
$
|
253,735
|
|
|
$
|
505,334
|
|
|
$
|
120,788
|
|
Cash paid for income taxes, net
|
|
$
|
1,368
|
|
|
$
|
564
|
|
|
$
|
605
|
|
Cash paid for interest
|
|
$
|
2,290
|
|
|
$
|
741
|
|
|
$
|
—
|
|
NON-CASH INVESTING AND FINANCING ACTIVITIES:
|
|
|
|
|
|
|
||||||
Finance lease right-of-use assets assumed in a business combination
|
|
$
|
14,173
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Purchases of property and equipment through finance leases
|
|
$
|
5,848
|
|
|
$
|
2,478
|
|
|
$
|
—
|
|
Acquisition holdback
|
|
$
|
7,980
|
|
|
$
|
2,290
|
|
|
$
|
—
|
|
Value of common stock issued and stock awards assumed in acquisition
|
|
$
|
2,841,452
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Stock-based compensation capitalized in software development costs
|
|
$
|
7,777
|
|
|
$
|
5,706
|
|
|
$
|
4,176
|
|
•
|
Fair value of the common stock. The Company uses the market closing price of its Class A common stock, as reported on the New York Stock Exchange, for the fair value.
|
•
|
Expected term. The expected term represents the period that the stock-based awards are expected to be outstanding. The Company uses the simplified calculation of expected term, as the Company does not have sufficient historical data to use any other method to estimate expected term;
|
•
|
Expected volatility. The expected volatility is derived from an average of the historical volatilities of the common stock of the Company and several other entities with characteristics similar to those of the Company, such as the size and operational and economic similarities to the Company's principal business operations;
|
•
|
Risk -free interest rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for zero coupon U.S. Treasury notes with maturities approximately equal to the expected term of the stock-based awards; and
|
•
|
Expected dividend. The expected dividend is assumed to be zero as the Company has never paid dividends and has no current plans to pay any dividends on its common stock.
|
Capitalized internal-use software development costs
|
|
3 years
|
Data center equipment
|
|
2 - 4 years
|
Office equipment
|
|
3 years
|
Furniture and fixtures
|
|
5 years
|
Software
|
|
3 years
|
Assets under financing lease
|
|
5 years or remaining lease term
|
Leasehold improvements
|
|
5 years or remaining lease term
|
Developed technology
|
|
3 - 7 years
|
Customer relationships
|
|
2 - 8 years
|
Supplier relationships
|
|
2 - 5 years
|
Trade names
|
|
5 years
|
Patents
|
|
20 years
|
Telecommunication licenses
|
|
Indefinite
|
Trademarks
|
|
Indefinite
|
Domain names
|
|
Indefinite
|
•
|
Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities accessible to the reporting entity at the measurement date.
|
•
|
Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.
|
•
|
Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date.
|
|
|
Amortized
Cost or Carrying Value |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses Less Than 12 Months |
|
Gross
Unrealized Losses More Than 12 Months |
|
Fair Value Hierarchy as of
December 31, 2019 |
|
Aggregate
Fair Value |
||||||||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||||||||||||||||||
Financial Assets:
|
|
(In thousands)
|
||||||||||||||||||||||||||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Money market funds
|
|
$
|
153,252
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
153,252
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
153,252
|
|
Reverse repurchase agreements
|
|
35,800
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35,800
|
|
|
—
|
|
|
35,800
|
|
||||||||
Total included in cash and cash equivalents
|
|
189,052
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
153,252
|
|
|
35,800
|
|
|
—
|
|
|
189,052
|
|
||||||||
Marketable securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
U.S. Treasury securities
|
|
215,847
|
|
|
241
|
|
|
(3
|
)
|
|
—
|
|
|
216,085
|
|
|
—
|
|
|
—
|
|
|
216,085
|
|
||||||||
Corporate debt securities and commercial paper
|
|
1,378,487
|
|
|
4,516
|
|
|
(55
|
)
|
|
—
|
|
|
5,000
|
|
|
1,377,948
|
|
|
—
|
|
|
1,382,948
|
|
||||||||
Total marketable securities
|
|
1,594,334
|
|
|
4,757
|
|
|
(58
|
)
|
|
—
|
|
|
221,085
|
|
|
1,377,948
|
|
|
—
|
|
|
1,599,033
|
|
||||||||
Strategic investments
|
|
5,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,500
|
|
|
5,500
|
|
||||||||
Total financial assets
|
|
$
|
1,788,886
|
|
|
$
|
4,757
|
|
|
$
|
(58
|
)
|
|
$
|
—
|
|
|
$
|
374,337
|
|
|
$
|
1,413,748
|
|
|
$
|
5,500
|
|
|
$
|
1,793,585
|
|
|
|
Amortized
Cost or Carrying Value |
|
Gross
Unrealized Gains |
|
Gross
Unrealized Losses Less Than 12 Months |
|
Gross
Unrealized Losses More Than 12 Months |
|
Fair Value Hierarchy as of
December 31, 2018 |
|
Aggregate
Fair Value |
|||||||||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||||||||||||||||||||
Financial Assets:
|
|
(In thousands)
|
|||||||||||||||||||||||||||||||
Cash and cash equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Money market funds
|
|
$
|
420,234
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
420,234
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
420,234
|
|
|
Reverse repurchase agreements
|
|
35,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35,000
|
|
|
—
|
|
|
35,000
|
|
|||||||||
Commercial paper
|
|
9,983
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,983
|
|
|
—
|
|
|
9,983
|
|
|||||||||
Total included in cash and cash equivalents
|
|
465,217
|
|
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
420,234
|
|
|
44,983
|
|
|
—
|
|
|
465,217
|
|
||||||||
Marketable securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
U.S. Treasury securities
|
|
59,785
|
|
|
—
|
|
|
(7
|
)
|
|
(9
|
)
|
|
59,769
|
|
|
—
|
|
|
—
|
|
|
59,769
|
|
|||||||||
Corporate debt securities and commercial paper
|
|
201,683
|
|
|
23
|
|
|
(123
|
)
|
|
(224
|
)
|
|
—
|
|
|
201,359
|
|
|
—
|
|
|
201,359
|
|
|||||||||
Total marketable securities
|
|
261,468
|
|
|
23
|
|
|
(130
|
)
|
|
(233
|
)
|
|
59,769
|
|
|
201,359
|
|
|
—
|
|
|
261,128
|
|
|||||||||
Total financial assets
|
|
$
|
726,685
|
|
|
$
|
23
|
|
|
$
|
(130
|
)
|
|
$
|
(233
|
)
|
|
$
|
480,003
|
|
|
$
|
246,342
|
|
|
$
|
—
|
|
|
$
|
726,345
|
|
|
|
As of December 31, 2019
|
|
As of December 31, 2018
|
||||||||||||
|
|
Amortized
Cost |
|
Aggregate
Fair Value |
|
Amortized
Cost |
|
Aggregate
Fair Value |
||||||||
Financial Assets:
|
|
(In thousands)
|
||||||||||||||
Less than one year
|
|
$
|
859,996
|
|
|
$
|
861,181
|
|
|
$
|
261,468
|
|
|
$
|
261,128
|
|
One to three years
|
|
734,338
|
|
|
737,852
|
|
|
—
|
|
|
—
|
|
||||
Total
|
|
$
|
1,594,334
|
|
|
$
|
1,599,033
|
|
|
$
|
261,468
|
|
|
$
|
261,128
|
|
|
|
As of December 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(In thousands)
|
||||||
Capitalized internal-use software development costs
|
|
$
|
100,155
|
|
|
$
|
72,647
|
|
Data center equipment (1)
|
|
22,009
|
|
|
—
|
|
||
Leasehold improvements
|
|
55,886
|
|
|
15,293
|
|
||
Office equipment
|
|
25,083
|
|
|
13,563
|
|
||
Furniture and fixtures (1)
|
|
10,095
|
|
|
4,918
|
|
||
Software
|
|
9,176
|
|
|
1,849
|
|
||
Total property and equipment
|
|
222,404
|
|
|
108,270
|
|
||
Less: accumulated depreciation and amortization
|
|
(81,148
|
)
|
|
(44,736
|
)
|
||
Total property and equipment, net
|
|
$
|
141,256
|
|
|
$
|
63,534
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(In thousands)
|
||||||||||
Cost of revenue
|
|
$
|
9,546
|
|
|
$
|
6,898
|
|
|
$
|
4,788
|
|
Research and development
|
|
7,345
|
|
|
5,437
|
|
|
3,619
|
|
|||
General and administrative
|
|
213
|
|
|
689
|
|
|
—
|
|
|||
Total
|
|
$
|
17,104
|
|
|
$
|
13,024
|
|
|
$
|
8,407
|
|
|
|
Year Ended December 31, 2019
|
||
|
|
(In thousands)
|
||
Operating lease cost
|
|
$
|
32,558
|
|
Finance lease cost:
|
|
|
||
Amortization of assets
|
|
6,090
|
|
|
Interest on lease liabilities
|
|
708
|
|
|
Short-term lease cost
|
|
6,342
|
|
|
Variable lease cost
|
|
3,792
|
|
|
Total net lease cost
|
|
$
|
49,490
|
|
Leases
|
|
Classification
|
|
As of
December 31, 2019 |
||
Assets:
|
|
|
|
(In thousands)
|
||
Operating lease assets
|
|
Operating right-of-use asset, net of accumulated amortization (1)
|
|
$
|
156,741
|
|
Finance lease assets
|
|
Property and equipment, net of accumulated depreciation (2)
|
|
14,770
|
|
|
Total leased assets
|
|
|
|
$
|
171,511
|
|
|
|
|
|
|
||
Liabilities:
|
|
|
|
|
||
Current
|
|
|
|
|
||
Operating
|
|
Operating lease liability, current
|
|
$
|
27,156
|
|
Finance
|
|
Financing lease liability, current
|
|
6,924
|
|
|
Noncurrent
|
|
|
|
|
||
Operating
|
|
Operating lease liability, noncurrent
|
|
139,200
|
|
|
Finance
|
|
Finance lease liability, noncurrent
|
|
8,746
|
|
|
Total lease liabilities
|
|
|
|
$
|
182,026
|
|
|
|
Year Ended December 31, 2019
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
(In thousands)
|
||
Operating cash flows from operating leases
|
|
$
|
28,291
|
|
Operating cash flows from finance leases (interest)
|
|
$
|
687
|
|
Financing cash flows from finance leases
|
|
$
|
5,646
|
|
|
|
|
||
Weighted average remaining lease term (in years):
|
|
|
||
Operating leases
|
|
6.1
|
|
|
Finance leases
|
|
3.0
|
|
|
|
|
|
||
Weighted average discount rate:
|
|
|
||
Operating leases
|
|
5.5
|
%
|
|
Finance leases
|
|
5.3
|
%
|
|
|
As of December 31, 2019
|
||||||
|
|
Operating
Leases |
|
Finance
Leases |
||||
Year Ended December 31,
|
|
(In thousands)
|
||||||
2020
|
|
$
|
35,997
|
|
|
$
|
7,586
|
|
2021
|
|
34,762
|
|
|
4,659
|
|
||
2022
|
|
33,214
|
|
|
2,333
|
|
||
2023
|
|
27,859
|
|
|
1,581
|
|
||
2024
|
|
25,400
|
|
|
315
|
|
||
Thereafter
|
|
43,125
|
|
|
581
|
|
||
Total lease payments
|
|
200,357
|
|
|
17,055
|
|
||
Less: imputed interest
|
|
(34,001
|
)
|
|
(1,385
|
)
|
||
Total lease obligations
|
|
166,356
|
|
|
15,670
|
|
||
Less: current obligations
|
|
(27,156
|
)
|
|
(6,924
|
)
|
||
Long-term lease obligations
|
|
$
|
139,200
|
|
|
$
|
8,746
|
|
|
|
As of December 31, 2019
|
||||||
|
|
Operating
Leases |
|
Financing
Leases |
||||
Year Ended December 31,
|
|
(In thousands)
|
||||||
2019
|
|
$
|
24,128
|
|
|
$
|
306
|
|
2020
|
|
29,527
|
|
|
512
|
|
||
2021
|
|
30,898
|
|
|
573
|
|
||
2022
|
|
30,492
|
|
|
590
|
|
||
2023
|
|
30,122
|
|
|
608
|
|
||
Thereafter
|
|
81,316
|
|
|
1,939
|
|
||
Total minimum lease payments
|
|
$
|
226,483
|
|
|
$
|
4,528
|
|
|
|
Total
|
||
|
|
(In thousands)
|
||
Fair value of Class A common stock transferred
|
|
$
|
2,658,898
|
|
Fair value of the pre-combination service through equity awards
|
|
182,554
|
|
|
Total purchase price, as adjusted
|
|
$
|
2,841,452
|
|
|
|
Total
|
||
|
|
(In thousands)
|
||
Cash and cash equivalents
|
|
$
|
156,783
|
|
Accounts receivable and other current assets
|
|
11,635
|
|
|
Property and equipment, net
|
|
38,350
|
|
|
Operating right-of-use asset
|
|
33,742
|
|
|
Intangible assets (1)
|
|
483,000
|
|
|
Other assets
|
|
1,664
|
|
|
Goodwill
|
|
2,235,193
|
|
|
Accounts payable and other liabilities
|
|
(11,114
|
)
|
|
Operating lease liability
|
|
(32,568
|
)
|
|
Finance lease liability
|
|
(13,616
|
)
|
|
Note payable
|
|
(5,387
|
)
|
|
Deferred tax liability
|
|
(56,230
|
)
|
|
Total purchase price
|
|
$
|
2,841,452
|
|
|
|
Total
|
|
Estimated
life |
||
|
|
(In thousands)
|
|
(In years)
|
||
Developed technology
|
|
$
|
294,000
|
|
|
7
|
Customer relationships
|
|
169,000
|
|
|
7
|
|
Trade names
|
|
20,000
|
|
|
5
|
|
Total intangible assets acquired
|
|
$
|
483,000
|
|
|
|
•
|
For the year ended December 31, 2019, the Company's and SendGrid's direct and incremental transaction costs of $40.8 million are excluded from pro forma combined net loss.
|
•
|
For the year ended December 31, 2018, the Company's direct and incremental transaction costs of $13.9 million are included in the pro forma combined net loss.
|
•
|
In the year ended December 31, 2019, the pro forma combined net loss includes a reversal of the valuation allowance release of $48.0 million.
|
•
|
In the year ended December 31, 2018, the pro forma condensed combined net loss includes a one-time tax benefit of $53.5 million that would have resulted from the acquisition, and an ongoing tax benefit of $29.4 million.
|
|
|
Year Ended December 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(Unaudited, in thousands)
|
||||||
Revenue
|
|
$
|
1,148,214
|
|
|
$
|
796,607
|
|
Net loss attributable to common stockholders
|
|
$
|
(322,030
|
)
|
|
$
|
(211,705
|
)
|
|
|
Total
|
||
|
|
(In thousands)
|
||
Net liabilities
|
|
$
|
(3,219
|
)
|
Intangible assets (1)
|
|
22,986
|
|
|
Goodwill
|
|
23,425
|
|
|
Total preliminary purchase price
|
|
$
|
43,192
|
|
|
|
Total
|
|
Estimated
life |
||
|
|
(In thousands)
|
|
(In years)
|
||
Developed technology
|
|
$
|
11,771
|
|
|
4 - 6
|
Customer relationships
|
|
5,185
|
|
|
3 - 5
|
|
Telecommunication licenses
|
|
4,370
|
|
|
Indefinite
|
|
Supplier relationships
|
|
1,660
|
|
|
2
|
|
Total intangible assets acquired
|
|
$
|
22,986
|
|
|
|
|
|
Total
|
||
|
|
(In thousands)
|
||
Net liabilities
|
|
$
|
(1,538
|
)
|
Intangible assets (1)
|
|
9,920
|
|
|
Goodwill (2)
|
|
13,375
|
|
|
Total purchase price
|
|
$
|
21,757
|
|
(1)
|
Identifiable intangible assets were comprised of the following:
|
|
|
Total
|
|
Estimated
life |
||
|
|
(In thousands)
|
|
(In years)
|
||
Developed technology
|
|
$
|
9,090
|
|
|
4
|
Customer relationships
|
|
830
|
|
|
2
|
|
Total intangible assets acquired
|
|
$
|
9,920
|
|
|
|
(2)
|
The goodwill is primarily attributable to the future cash flows to be realized from the acquired technology platform as well as operational synergies. The Company has filed for the elections that make the goodwill deductible for U.S. tax purposes.
|
|
|
Total
|
||
|
|
(In thousands)
|
||
Net liabilities
|
|
$
|
(313
|
)
|
Intangible assets (1)
|
|
4,500
|
|
|
Goodwill (2)
|
|
6,869
|
|
|
Total purchase price
|
|
$
|
11,056
|
|
(1)
|
Identifiable intangible assets were comprised of the following:
|
|
|
Total
|
|
Estimated
life |
||
|
|
(In thousands)
|
|
(In years)
|
||
Developed technology
|
|
$
|
3,910
|
|
|
4
|
Customer relationships
|
|
590
|
|
|
0.5
|
|
Total intangible assets acquired
|
|
$
|
4,500
|
|
|
|
(2)
|
The goodwill is primarily attributable to the future cash flows to be realized from the operating synergies between the acquired technology platform and the Company's Programmable Wireless products. The Company has filed for the elections that make the goodwill deductible for U.S. tax purposes.
|
|
|
Total
|
||
|
|
(In thousands)
|
||
Net liabilities
|
|
$
|
(3,575
|
)
|
Intangible assets (1)
|
|
13,700
|
|
|
Goodwill (2)
|
|
12,837
|
|
|
Total purchase price
|
|
$
|
22,962
|
|
(1)
|
Identifiable intangible assets were comprised of the following:
|
|
|
Total
|
|
Estimated
life |
||
|
|
(In thousands)
|
|
(In years)
|
||
Developed technology
|
|
$
|
5,000
|
|
|
4
|
Customer relationships
|
|
6,100
|
|
|
7 - 8
|
|
Supplier relationships
|
|
2,600
|
|
|
5
|
|
Total intangible assets acquired
|
|
$
|
13,700
|
|
|
|
(2)
|
Goodwill represents the excess of purchase price over the fair value of identifiable tangible and intangible assets acquired and liabilities assumed. The goodwill in this transaction was primarily attributable to the future cash flows to be realized from the acquired technology platform, existing customer and supplier relationships as well as operational synergies. Goodwill is deductible for tax purposes.
|
|
|
Total
|
||
|
|
(In thousands)
|
||
Balance as of December 31, 2017
|
|
$
|
17,851
|
|
Goodwill additions related to 2018 acquisitions
|
|
20,356
|
|
|
Measurement period adjustments
|
|
571
|
|
|
Effect of exchange rate
|
|
(613
|
)
|
|
Balance as of December 31, 2018
|
|
$
|
38,165
|
|
Goodwill additions related to 2019 acquisitions
|
|
2,262,622
|
|
|
Measurement period adjustments
|
|
(4,003
|
)
|
|
Balance as of December 31, 2019
|
|
$
|
2,296,784
|
|
|
|
As of
December 31, 2019 |
||||||||||
|
|
Gross
|
|
Accumulated
Amortization |
|
Net
|
||||||
Amortizable intangible assets:
|
|
(In thousands)
|
||||||||||
Developed technology
|
|
$
|
333,980
|
|
|
$
|
(55,390
|
)
|
|
$
|
278,590
|
|
Customer relationships
|
|
182,339
|
|
|
(26,347
|
)
|
|
155,992
|
|
|||
Supplier relationships
|
|
4,356
|
|
|
(1,532
|
)
|
|
2,824
|
|
|||
Trade names
|
|
20,060
|
|
|
(3,727
|
)
|
|
16,333
|
|
|||
Patent
|
|
2,707
|
|
|
(262
|
)
|
|
2,445
|
|
|||
Total amortizable intangible assets
|
|
543,442
|
|
|
(87,258
|
)
|
|
456,184
|
|
|||
Non-amortizable intangible assets:
|
|
|
|
|
|
|
||||||
Telecommunication licenses
|
|
4,370
|
|
|
—
|
|
|
4,370
|
|
|||
Domain names
|
|
32
|
|
|
—
|
|
|
32
|
|
|||
Trademarks and other
|
|
263
|
|
|
—
|
|
|
263
|
|
|||
Total
|
|
$
|
548,107
|
|
|
$
|
(87,258
|
)
|
|
$
|
460,849
|
|
|
|
As of
December 31, 2018 |
||||||||||
|
|
Gross
|
|
Accumulated
Amortization |
|
Net
|
||||||
Amortizable intangible assets:
|
|
(In thousands)
|
||||||||||
Developed technology
|
|
$
|
28,209
|
|
|
$
|
(10,497
|
)
|
|
$
|
17,712
|
|
Customer relationships
|
|
8,153
|
|
|
(2,411
|
)
|
|
5,742
|
|
|||
Supplier relationships
|
|
2,696
|
|
|
(973
|
)
|
|
1,723
|
|
|||
Trade name
|
|
60
|
|
|
(60
|
)
|
|
—
|
|
|||
Patent
|
|
2,264
|
|
|
(178
|
)
|
|
2,086
|
|
|||
Total amortizable intangible assets
|
|
41,382
|
|
|
(14,119
|
)
|
|
27,263
|
|
|||
Non-amortizable intangible assets:
|
|
|
|
|
|
|
||||||
Domain names
|
|
32
|
|
|
—
|
|
|
32
|
|
|||
Trademarks
|
|
263
|
|
|
—
|
|
|
263
|
|
|||
Total
|
|
$
|
41,677
|
|
|
$
|
(14,119
|
)
|
|
$
|
27,558
|
|
|
|
As of
December 31, 2019 |
||
Year Ended December 31,
|
|
(In thousands)
|
||
2020
|
|
$
|
81,419
|
|
2021
|
|
79,785
|
|
|
2022
|
|
77,170
|
|
|
2023
|
|
73,888
|
|
|
2024
|
|
68,359
|
|
|
Thereafter
|
|
75,563
|
|
|
Total
|
|
$
|
456,184
|
|
|
|
As of December 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(In thousands)
|
||||||
Accrued payroll and related
|
|
$
|
20,462
|
|
|
$
|
9,886
|
|
Accrued bonus and commission
|
|
12,898
|
|
|
8,564
|
|
||
Accrued cost of revenue
|
|
47,563
|
|
|
29,901
|
|
||
Sales and other taxes payable
|
|
28,592
|
|
|
23,631
|
|
||
ESPP contributions
|
|
4,023
|
|
|
2,672
|
|
||
Deferred rent
|
|
—
|
|
|
1,418
|
|
||
VAT and other taxes
|
|
4,838
|
|
|
2,217
|
|
||
Acquisition holdback
|
|
6,520
|
|
|
—
|
|
||
Accrued other expense
|
|
22,785
|
|
|
18,054
|
|
||
Total accrued expenses and other current liabilities
|
|
$
|
147,681
|
|
|
$
|
96,343
|
|
|
|
As of December 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(In thousands)
|
||||||
Deferred rent
|
|
$
|
—
|
|
|
$
|
7,569
|
|
Deferred tax liability
|
|
7,535
|
|
|
5,181
|
|
||
Acquisition holdback
|
|
3,750
|
|
|
2,290
|
|
||
Capital lease obligation
|
|
—
|
|
|
2,170
|
|
||
Accrued other expenses
|
|
6,462
|
|
|
959
|
|
||
Total other long-term liabilities
|
|
$
|
17,747
|
|
|
$
|
18,169
|
|
(1)
|
during any calendar quarter commencing after September 30, 2018, and only during such calendar quarter, if the last reported sale price of the Class A common stock for at least 20 trading days (whether or not consecutive) in a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is more than or equal to 130% of the conversion price on each applicable trading day;
|
(2)
|
during the five business days period after any five consecutive trading day period in which, for each trading day of that period, the trading price per $1,000 principal amount of Notes for such trading day was less than 98% of the product of the last reported sale price of the Class A common stock and the conversion rate on each such trading day;
|
(3)
|
upon the Company’s notice that it is redeeming any or all of the Notes; or
|
(4)
|
upon the occurrence of specified corporate events.
|
|
|
As of December 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(In thousands)
|
||||||
Principal
|
|
$
|
549,999
|
|
|
$
|
550,000
|
|
Unamortized discount
|
|
(84,647
|
)
|
|
(106,484
|
)
|
||
Unamortized issuance costs
|
|
(7,162
|
)
|
|
(9,020
|
)
|
||
Net carrying amount
|
|
$
|
458,190
|
|
|
$
|
434,496
|
|
|
|
As of December 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(In thousands)
|
||||||
Proceeds allocated to the conversion options (debt discount)
|
|
$
|
119,435
|
|
|
$
|
119,435
|
|
Issuance costs
|
|
(2,819
|
)
|
|
(2,819
|
)
|
||
Net carrying amount
|
|
$
|
116,616
|
|
|
$
|
116,616
|
|
|
|
Year Ended December 31,
|
||||||
|
|
2019
|
|
2018
|
||||
|
|
(In thousands)
|
||||||
Contractual interest expense
|
|
$
|
1,375
|
|
|
$
|
852
|
|
Amortization of debt issuance costs
|
|
1,858
|
|
|
1,102
|
|
||
Amortization of debt discount
|
|
21,838
|
|
|
12,951
|
|
||
Total interest expense related to the Notes
|
|
$
|
25,071
|
|
|
$
|
14,905
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(In thousands)
|
||||||||||
Balance, beginning of period
|
|
$
|
4,945
|
|
|
$
|
1,033
|
|
|
$
|
1,076
|
|
Additions
|
|
2,226
|
|
|
4,085
|
|
|
580
|
|
|||
Write-offs
|
|
(884
|
)
|
|
(173
|
)
|
|
(623
|
)
|
|||
Balance, end of period
|
|
$
|
6,287
|
|
|
$
|
4,945
|
|
|
$
|
1,033
|
|
Percentage of revenue
|
|
1
|
%
|
|
1
|
%
|
|
—
|
%
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(In thousands)
|
||||||||||
Balance, beginning of period
|
|
$
|
3,015
|
|
|
$
|
1,761
|
|
|
$
|
544
|
|
Additions
|
|
18,143
|
|
|
5,560
|
|
|
2,531
|
|
|||
Deductions against reserve
|
|
(14,374
|
)
|
|
(4,306
|
)
|
|
(1,314
|
)
|
|||
Balance, end of period
|
|
$
|
6,784
|
|
|
$
|
3,015
|
|
|
$
|
1,761
|
|
Percentage of revenue
|
|
1
|
%
|
|
—
|
%
|
|
—
|
%
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Revenue by geographic area:
|
|
(In thousands)
|
||||||||||
United States
|
|
$
|
808,857
|
|
|
$
|
484,809
|
|
|
$
|
308,612
|
|
International
|
|
325,611
|
|
|
165,258
|
|
|
90,408
|
|
|||
Total
|
|
$
|
1,134,468
|
|
|
$
|
650,067
|
|
|
$
|
399,020
|
|
Percentage of revenue by geographic area:
|
|
|
|
|
|
|
|||
United States
|
|
71
|
%
|
|
75
|
%
|
|
77
|
%
|
International
|
|
29
|
%
|
|
25
|
%
|
|
23
|
%
|
|
|
As of
December 31, 2019 |
||
Year Ending December 31,
|
|
(In thousands)
|
||
2020
|
|
$
|
62,444
|
|
2021
|
|
50,813
|
|
|
2022
|
|
2,855
|
|
|
2023
|
|
3,750
|
|
|
2024
|
|
—
|
|
|
Thereafter
|
|
—
|
|
|
Total payments
|
|
$
|
119,862
|
|
|
|
As of December 31,
|
||||
|
|
2019
|
|
2018
|
||
Stock options issued and outstanding
|
|
7,705,848
|
|
|
7,978,369
|
|
Nonvested restricted stock units issued and outstanding
|
|
8,490,517
|
|
|
8,262,902
|
|
Class A common stock reserved for Twilio.org
|
|
795,673
|
|
|
572,676
|
|
Stock-based awards available for grant under 2016 Plan
|
|
14,957,734
|
|
|
9,313,354
|
|
Stock-based awards available for grant under 2016 ESPP
|
|
3,848,953
|
|
|
3,092,779
|
|
Class A common stock reserved for the convertible senior notes
|
|
10,472,165
|
|
|
10,472,165
|
|
Total
|
|
46,270,890
|
|
|
39,692,245
|
|
|
|
Number of
options outstanding |
|
Weighted-
average exercise price (Per share) |
|
Weighted-
average remaining contractual term (in years) |
|
Aggregate
intrinsic value (In thousands) |
|||||
Outstanding options as of December 31, 2018
|
|
7,423,369
|
|
|
$
|
16.07
|
|
|
6.80
|
|
$
|
543,640
|
|
Granted
|
|
909,229
|
|
|
118.35
|
|
|
|
|
|
|||
Assumed in acquisition
|
|
2,978,555
|
|
|
14.91
|
|
|
|
|
|
|||
Exercised
|
|
(3,620,866
|
)
|
|
10.43
|
|
|
|
|
|
|||
Forfeited and canceled
|
|
(539,439
|
)
|
|
51.28
|
|
|
|
|
|
|||
Outstanding options as of December 31, 2019
|
|
7,150,848
|
|
|
$
|
28.79
|
|
|
6.47
|
|
$
|
511,971
|
|
Options vested and exercisable as of December 31, 2019
|
|
4,721,801
|
|
|
$
|
14.00
|
|
|
5.65
|
|
$
|
398,490
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(In thousands, except per share amounts)
|
||||||||||
Aggregate intrinsic value of stock options exercised (1)
|
|
$
|
394,998
|
|
|
$
|
178,504
|
|
|
$
|
131,955
|
|
Total estimated grant date fair value of options vested
|
|
$
|
81,292
|
|
|
$
|
21,761
|
|
|
$
|
15,831
|
|
Weighted-average grant date fair value per share of options granted
|
|
$
|
58.13
|
|
|
$
|
18.40
|
|
|
$
|
13.33
|
|
|
|
Number of
options outstanding |
|
Weighted-
average exercise price (Per share) |
|
Weighted-
average remaining contractual term (in years) |
|
Aggregate
intrinsic value (In thousands) |
|||||
Outstanding options as of December 31, 2018
|
|
555,000
|
|
|
$
|
31.72
|
|
|
6.00
|
|
$
|
—
|
|
Granted
|
|
—
|
|
|
—
|
|
|
|
|
|
|||
Exercised
|
|
—
|
|
|
—
|
|
|
|
|
|
|||
Forfeited and canceled
|
|
—
|
|
|
—
|
|
|
|
|
|
|||
Outstanding options as of December 31, 2019
|
|
555,000
|
|
|
$
|
31.72
|
|
|
4.16
|
|
$
|
36,941
|
|
Options vested and exercisable as of December 31, 2019
|
|
427,812
|
|
|
$
|
31.72
|
|
|
4.16
|
|
$
|
28,475
|
|
|
|
Number of
awards outstanding |
|
Weighted-
average grant date fair value (Per share) |
|
Aggregate
intrinsic value (In thousands) |
|||||
Nonvested RSUs as of December 31, 2018
|
|
8,262,902
|
|
|
$
|
42.70
|
|
|
$
|
729,373
|
|
Granted
|
|
3,413,404
|
|
|
119.04
|
|
|
|
|||
Assumed in acquisition
|
|
561,999
|
|
|
112.88
|
|
|
|
|||
Vested
|
|
(2,893,119
|
)
|
|
51.15
|
|
|
|
|||
Forfeited and canceled
|
|
(854,669
|
)
|
|
$
|
61.94
|
|
|
|
||
Nonvested RSUs as of December 31, 2019
|
|
8,490,517
|
|
|
$
|
74.21
|
|
|
$
|
830,167
|
|
|
|
Year Ended December 31,
|
||||
Employee Stock Options:
|
|
2019
|
|
2018
|
|
2017
|
Fair value of common stock
|
|
$103.70 - $130.70
|
|
$33.01 - $76.63
|
|
$23.60 - $31.96
|
Expected term (in years)
|
|
0.33 - 6.08
|
|
1.00 - 6.08
|
|
6.08
|
Expected volatility
|
|
49.0% - 66.5%
|
|
38.6% - 44.2%
|
|
44.3% - 47.6%
|
Risk-free interest rate
|
|
1.6% - 2.5%
|
|
2.9% - 3.0%
|
|
1.9% - 2.3%
|
Dividend rate
|
|
—%
|
|
—%
|
|
—%
|
|
|
Year Ended December 31,
|
||||
Employee Stock Purchase Plan:
|
|
2019
|
|
2018
|
|
2017
|
Expected term (in years)
|
|
0.49 - 0.50
|
|
0.5
|
|
0.5
|
Expected volatility
|
|
43.1% - 50.3%
|
|
39.8% - 47.5%
|
|
33.2% - 33.9%
|
Risk-free interest rate
|
|
1.6% - 2.4%
|
|
2.1% - 2.5%
|
|
1.1% - 1.4%
|
Dividend rate
|
|
—%
|
|
—%
|
|
—%
|
Asset volatility
|
|
40%
|
Equity volatility
|
|
45%
|
Discount rate
|
|
14%
|
Stock price at grant date
|
|
$31.7
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(In thousands)
|
||||||||||
Cost of revenue
|
|
$
|
7,123
|
|
|
$
|
1,126
|
|
|
$
|
650
|
|
Research and development
|
|
126,012
|
|
|
42,277
|
|
|
22,808
|
|
|||
Sales and marketing
|
|
60,886
|
|
|
23,616
|
|
|
9,822
|
|
|||
General and administrative
|
|
70,297
|
|
|
26,254
|
|
|
16,339
|
|
|||
Total
|
|
$
|
264,318
|
|
|
$
|
93,273
|
|
|
$
|
49,619
|
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(In thousands, except share and per share data)
|
||||||||||
Net loss attributable to common stockholders
|
|
$
|
(307,063
|
)
|
|
$
|
(121,949
|
)
|
|
$
|
(63,708
|
)
|
Weighted-average shares used to compute net loss per share attributable to
common stockholders, basic and diluted |
|
130,083,046
|
|
|
97,130,339
|
|
|
91,224,607
|
|
|||
Net loss per share attributable to common stockholders, basic and diluted
|
|
$
|
(2.36
|
)
|
|
$
|
(1.26
|
)
|
|
$
|
(0.70
|
)
|
|
|
As of December 31,
|
|||||||
|
|
2019
|
|
2018
|
|
2017
|
|||
Stock options issued and outstanding
|
|
7,705,848
|
|
|
7,978,369
|
|
|
10,710,427
|
|
Nonvested restricted stock units issued and outstanding
|
|
8,490,517
|
|
|
8,262,902
|
|
|
5,665,459
|
|
Class A common stock reserved for Twilio.org
|
|
795,673
|
|
|
572,676
|
|
|
635,014
|
|
Class A common stock committed under 2016 ESPP
|
|
207,792
|
|
|
113,312
|
|
|
235,372
|
|
Conversion spread (1)
|
|
3,150,647
|
|
|
233
|
|
|
—
|
|
Unvested shares subject to repurchase
|
|
—
|
|
|
1,250
|
|
|
5,214
|
|
Total
|
|
20,350,477
|
|
|
16,928,742
|
|
|
17,251,486
|
|
|
|
Year Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
|
|
(In thousands)
|
||||||||||
United States
|
|
$
|
(328,902
|
)
|
|
$
|
(96,448
|
)
|
|
$
|
(46,737
|
)
|
International
|
|
(33,314
|
)
|
|
(24,710
|
)
|
|
(16,266
|
)
|
|||
Loss before provision for income taxes
|
|
$
|
(362,216
|
)
|
|
$
|
(121,158
|
)
|
|
$
|
(63,003
|
)
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Current:
|
|
(In thousands)
|
||||||||||
Federal
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
99
|
|
State
|
|
198
|
|
|
139
|
|
|
78
|
|
|||
Foreign
|
|
2,684
|
|
|
881
|
|
|
823
|
|
|||
Total
|
|
2,882
|
|
|
1,020
|
|
|
1,000
|
|
|||
Deferred:
|
|
|
|
|
|
|
||||||
Federal
|
|
(49,393
|
)
|
|
29
|
|
|
28
|
|
|||
State
|
|
(7,474
|
)
|
|
19
|
|
|
10
|
|
|||
Foreign
|
|
(1,168
|
)
|
|
(277
|
)
|
|
(333
|
)
|
|||
Total
|
|
(58,035
|
)
|
|
(229
|
)
|
|
(295
|
)
|
|||
Income tax provision (benefit)
|
|
$
|
(55,153
|
)
|
|
$
|
791
|
|
|
$
|
705
|
|
|
|
Year Ended December 31,
|
|||||||
|
|
2019
|
|
2018
|
|
2017
|
|||
Tax benefit at federal statutory rate
|
|
21
|
%
|
|
21
|
%
|
|
34
|
%
|
State tax, net of federal benefit
|
|
8
|
|
|
15
|
|
|
10
|
|
Stock-based compensation
|
|
14
|
|
|
31
|
|
|
47
|
|
Credits
|
|
4
|
|
|
8
|
|
|
8
|
|
Foreign rate differential
|
|
(2
|
)
|
|
(4
|
)
|
|
(8
|
)
|
Change in valuation allowance
|
|
(29
|
)
|
|
(68
|
)
|
|
(46
|
)
|
Change in federal statutory rate
|
|
—
|
|
|
—
|
|
|
(45
|
)
|
Other
|
|
(1
|
)
|
|
(3
|
)
|
|
(1
|
)
|
Effective tax rate
|
|
15
|
%
|
|
—
|
%
|
|
(1
|
)%
|
|
|
As of December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||
Deferred tax assets:
|
|
(In thousands)
|
||||||||||
Net operating loss carryforwards
|
|
$
|
274,116
|
|
|
$
|
116,190
|
|
|
$
|
56,138
|
|
Accrued and prepaid expenses
|
|
11,828
|
|
|
11,594
|
|
|
9,140
|
|
|||
Stock-based compensation
|
|
35,035
|
|
|
11,147
|
|
|
7,131
|
|
|||
Research and development credits
|
|
65,955
|
|
|
32,206
|
|
|
16,212
|
|
|||
Charitable contributions
|
|
3,172
|
|
|
3,100
|
|
|
1,233
|
|
|||
Capped call
|
|
9,914
|
|
|
13,175
|
|
|
—
|
|
|||
Debt issuance cost
|
|
493
|
|
|
638
|
|
|
—
|
|
|||
Depreciable property
|
|
2
|
|
|
—
|
|
|
—
|
|
|||
Lease liability
|
|
39,117
|
|
|
—
|
|
|
—
|
|
|||
Other
|
|
—
|
|
|
194
|
|
|
472
|
|
|||
Gross deferred tax assets
|
|
439,632
|
|
|
188,244
|
|
|
90,326
|
|
|||
Valuation allowance
|
|
(255,893
|
)
|
|
(147,354
|
)
|
|
(78,900
|
)
|
|||
Net deferred tax assets
|
|
183,739
|
|
|
40,890
|
|
|
11,426
|
|
|||
Deferred tax liabilities:
|
|
|
|
|
|
|
||||||
Capitalized software
|
|
(13,032
|
)
|
|
(10,686
|
)
|
|
(7,664
|
)
|
|||
Prepaid expenses
|
|
(1,157
|
)
|
|
(838
|
)
|
|
(1,015
|
)
|
|||
Acquired intangibles
|
|
(107,281
|
)
|
|
(2,997
|
)
|
|
(2,101
|
)
|
|||
Property and equipment
|
|
(1,578
|
)
|
|
(1,990
|
)
|
|
(2,380
|
)
|
|||
Convertible debt
|
|
(20,745
|
)
|
|
(27,164
|
)
|
|
—
|
|
|||
Right-of-use asset
|
|
(39,630
|
)
|
|
—
|
|
|
—
|
|
|||
Deferred commissions
|
|
(7,446
|
)
|
|
(2,396
|
)
|
|
(718
|
)
|
|||
Other
|
|
(405
|
)
|
|
—
|
|
|
—
|
|
|||
Net deferred tax liability
|
|
$
|
(7,535
|
)
|
|
$
|
(5,181
|
)
|
|
$
|
(2,452
|
)
|
|
|
As of
December 31, 2019 |
|
Expiration Date
(If not utilized) |
||
|
|
(In thousands)
|
|
|
||
Federal net operating loss carryforwards
|
|
$
|
1,159,329
|
|
|
Various dates beginning in 2029
|
Federal tax credits
|
|
$
|
58,404
|
|
|
Various dates beginning in 2029
|
Federal net operating loss carryforwards
|
|
$
|
902,507
|
|
|
Indefinite
|
State net operating loss carryforwards
|
|
$
|
630,151
|
|
|
Various dates beginning in 2025
|
State tax credits
|
|
$
|
38,817
|
|
|
Indefinite
|
Foreign net operating loss carryforwards
|
|
$
|
13,772
|
|
|
Indefinite
|
|
|
Year Ended December 31,
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
(In thousands)
|
||||||||||
Unrecognized tax benefit, beginning of year
|
|
$
|
15,635
|
|
|
$
|
9,445
|
|
|
$
|
12,275
|
|
Gross increases for tax positions of prior years
|
|
12,939
|
|
|
1,233
|
|
|
493
|
|
|||
Gross decrease for tax positions of prior years
|
|
(395
|
)
|
|
(4
|
)
|
|
(6,331
|
)
|
|||
Gross increases for tax positions of current year
|
|
20,863
|
|
|
4,961
|
|
|
3,008
|
|
|||
Unrecognized tax benefit, end of year
|
|
$
|
49,042
|
|
|
$
|
15,635
|
|
|
$
|
9,445
|
|
Exhibit
Number
|
|
|
|
Incorporated by Reference
|
||||||||
|
Description
|
|
Form
|
|
File No.
|
|
Exhibit
|
|
Filing Date
|
|||
2.1+
|
|
|
|
8-K
|
|
011-37806
|
|
2.1
|
|
|
October 16, 2018
|
|
2.2
|
|
|
|
10-K
|
|
001-37806
|
|
2.2
|
|
|
March 1, 2019
|
|
3.1
|
|
|
|
S-1A
|
|
333-211634
|
|
3.1
|
|
|
June 13, 2016
|
|
3.2
|
|
|
|
S-1A
|
|
333-211634
|
|
3.3
|
|
|
June 13, 2016
|
|
4.1
|
|
|
|
S-1
|
|
333-211634
|
|
4.1
|
|
|
May 26, 2016
|
|
4.2
|
|
|
|
S-1
|
|
333-211634
|
|
4.2
|
|
|
May 26, 2016
|
|
4.3
|
|
|
|
8-K
|
|
001-37806
|
|
4.1
|
|
|
May 18, 2018
|
|
4.4
|
|
|
|
8-K
|
|
001-37806
|
|
4.2
|
|
|
May 18, 2018
|
|
4.5
|
|
|
|
|
|
|
|
|
|
Filed herewith
|
||
10.1*
|
|
|
|
S-1A
|
|
333-211634
|
|
10.1
|
|
|
June 13, 2016
|
|
10.2*
|
|
|
|
S-1
|
|
333-211634
|
|
10.2
|
|
|
May 26, 2016
|
|
10.3*
|
|
|
|
|
|
|
|
|
|
Filed herewith
|
||
10.4*
|
|
|
|
10-Q
|
|
001-37806
|
|
10.2
|
|
|
October 31, 2019
|
|
10.5*
|
|
|
|
10-Q
|
|
001-37806
|
|
10.1
|
|
|
October 31, 2019
|
|
10.6
|
|
|
|
S-1
|
|
333-211634
|
|
10.6
|
|
|
May 26, 2016
|
|
10.7
|
|
|
|
10-Q
|
|
001-37806
|
|
10.1
|
|
|
November 8, 2018
|
|
10.8
|
|
|
|
10-Q
|
|
001-37806
|
|
10.2
|
|
|
November 8, 2018
|
|
10.9*
|
|
|
|
8-K
|
|
001-37806
|
|
10.1
|
|
|
March 3, 2017
|
|
10.10*
|
|
|
|
8-K
|
|
001-37806
|
|
10.1
|
|
|
October 25, 2018
|
|
10.11*
|
|
|
|
10-Q
|
|
001-37806
|
|
10.1
|
|
|
May 10, 2018
|
|
10.12*
|
|
|
|
10-Q
|
|
001-37806
|
|
10.2
|
|
|
May 10, 2018
|
|
10.13
|
|
|
|
8-K
|
|
001-37806
|
|
10.1
|
|
|
May 18, 2018
|
|
21.1
|
|
|
|
|
|
|
|
|
|
|
Filed herewith
|
|
23.1
|
|
|
|
|
|
|
|
|
|
|
Filed herewith
|
|
31.1
|
|
|
|
|
|
|
|
|
|
Filed herewith
|
||
31.2
|
|
|
|
|
|
|
|
|
|
Filed herewith
|
||
32.1**
|
|
|
|
|
|
|
|
|
|
Furnished herewith
|
101.INS
|
|
|
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
|
|
|
|
|
|
|
|
Filed herewith
|
|
101.SCH
|
|
|
Inline XBRL Taxonomy Extension Schema Document.
|
|
|
|
|
|
|
|
Filed herewith
|
|
101.CAL
|
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
|
|
|
|
|
Filed herewith
|
|
101.DEF
|
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
|
|
|
|
|
Filed herewith
|
|
101.LAB
|
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
|
|
|
|
|
Filed herewith
|
|
101.PRE
|
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
|
|
|
|
|
|
Filed herewith
|
|
104
|
|
|
Cover Page with Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101).
|
|
|
|
|
|
|
|
|
+
|
Schedules and other similar attachments have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The registrant hereby undertakes to furnish supplemental copies of any of the omitted schedules and other similar attachments upon request by the Securities and Exchange Commission.
|
*
|
Indicates a management contract or compensatory plan or arrangement.
|
**
|
The certifications furnished in Exhibit 32.1 hereto are deemed to accompany this Annual Report on Form 10-K and will not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, except to the extent that the registrant specifically incorporates it by reference.
|
|
|
Twilio Inc.
|
March 2, 2020
|
|
/s/ JEFFREY LAWSON
|
|
|
Jeffrey Lawson
Director and Chief Executive Officer (Principal Executive Officer) |
|
|
|
March 2, 2020
|
|
/s/ KHOZEMA SHIPCHANDLER
|
|
|
Khozema Shipchandler
Chief Financial Officer (Principal Accounting and Financial Officer) |
|
|
|
March 2, 2020
|
|
/s/ RICHARD DALZELL
|
|
|
Richard Dalzell
Director |
|
|
|
March 2, 2020
|
|
/s/ BYRON DEETER
|
|
|
Byron Deeter
Director |
|
|
|
March 2, 2020
|
|
/s/ ELENA DONIO
|
|
|
Elena Donio
Director |
|
|
|
March 2, 2020
|
|
/s/ DONNA L. DUBINSKY
|
|
|
Donna L. Dubinsky
Director |
|
|
|
March 2, 2020
|
|
/s/ JEFFREY EPSTEIN
|
|
|
Jeffrey Epstein
Director |
|
|
|
March 2, 2020
|
|
/s/ JEFFREY IMMELT
|
|
|
Jeffrey Immelt
Director |
|
|
|
March 2, 2020
|
|
/s/ ERIKA ROTTENBERG
|
|
|
Erika Rottenberg
Director |
•
|
1,000,000,000 shares are designated as Class A common stock;
|
•
|
100,000,000 shares are designated as Class B common stock; and
|
•
|
100,000,000 shares are designated as preferred stock.
|
•
|
the transaction was approved by the board of directors prior to the time that the stockholder became an interested stockholder;
|
•
|
upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding shares owned by directors who are also officers of the corporation and shares owned by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
|
•
|
at or subsequent to the time the stockholder became an interested stockholder, the business combination was approved by the board of directors and authorized at an annual or special meeting of the stockholders, and not by written consent, by the affirmative vote of at least two-thirds of the outstanding voting stock which is not owned by the interested stockholder.
|
SECTION 1.
|
GENERAL PURPOSE OF THE PLAN; DEFINITIONS
|
SECTION 2.
|
ADMINISTRATION OF PLAN; ADMINISTRATOR AUTHORITY TO SELECT GRANTEES AND DETERMINE AWARDS
|
SECTION 3.
|
STOCK ISSUABLE UNDER THE PLAN; MERGERS; SUBSTITUTION
|
SECTION 4.
|
ELIGIBILITY
|
SECTION 5.
|
STOCK OPTIONS
|
SECTION 6.
|
STOCK APPRECIATION RIGHTS
|
SECTION 7.
|
RESTRICTED STOCK AWARDS
|
SECTION 8.
|
RESTRICTED STOCK UNITS
|
SECTION 9.
|
UNRESTRICTED STOCK AWARDS
|
SECTION 10.
|
CASH-BASED AWARDS
|
SECTION 11.
|
PERFORMANCE SHARE AWARDS
|
SECTION 12.
|
PERFORMANCE-BASED AWARDS TO COVERED EMPLOYEES
|
SECTION 13.
|
DIVIDEND EQUIVALENT RIGHTS
|
SECTION 14.
|
TRANSFERABILITY OF AWARDS
|
SECTION 15.
|
TAX WITHHOLDING
|
SECTION 16.
|
SECTION 409A AWARDS
|
SECTION 17.
|
TERMINATION OF EMPLOYMENT, TRANSFER, LEAVE OF ABSENCE, ETC.
|
SECTION 18.
|
AMENDMENTS AND TERMINATION
|
SECTION 19.
|
STATUS OF PLAN
|
SECTION 20.
|
GENERAL PROVISIONS
|
SECTION 21.
|
EFFECTIVE DATE OF PLAN
|
SECTION 22.
|
GOVERNING LAW
|
Name of Optionee:
|
|
|
No. of Option Shares:
|
|
|
Option Exercise Price per Share:
|
|
$
|
|
|
[FMV on Grant Date (110% of FMV if a 10% owner)]
|
Grant Date:
|
|
|
Expiration Date:
|
|
|
|
|
[up to 10 years (5 if a 10% owner)]
|
Incremental Number of
Option Shares Exercisable*
|
Exercisability Date
|
( )
|
|
( )
|
|
( )
|
|
( )
|
|
( )
|
|
|
Twilio Inc.
|
|
|
|
|
|
|
|
|
By:
|
|
|
|
Title:
|
Dated:
|
|
|
|
|
Optionee’s Signature
|
||
|
|
||
|
|
||
|
Optionee’s name and address:
|
||
|
|
||
|
|
||
|
|
||
|
|
Name of Optionee:
|
|
|
No. of Option Shares:
|
|
|
Option Exercise Price per Share:
|
|
$
|
|
|
[FMV on Grant Date]
|
Grant Date:
|
|
|
Expiration Date:
|
|
|
|
|
[No more than 10 years]
|
Incremental Number of
Option Shares Exercisable
|
Exercisability Date
|
|
|
( )
|
|
( )
|
|
( )
|
|
( )
|
|
( )
|
|
|
Twilio Inc.
|
|
|
|
|
|
|
|
|
By:
|
|
|
|
Title:
|
Dated:
|
|
|
|
|
Optionee’s Signature
|
||
|
|
||
|
|
||
|
Optionee’s name and address:
|
||
|
|
||
|
|
||
|
|
||
|
|
Name of Optionee:
|
|
|
No. of Option Shares:
|
|
|
Option Exercise Price per Share:
|
|
$
|
|
|
[FMV on Grant Date]
|
Grant Date:
|
|
|
Expiration Date:
|
|
|
Incremental Number of
Option Shares Exercisable
|
Exercisability Date
|
( )
|
|
( )
|
|
( )
|
|
( )
|
|
( )
|
|
|
Twilio Inc.
|
|
|
|
|
|
|
|
|
By:
|
|
|
|
Title:
|
Dated:
|
|
|
|
|
Optionee’s Signature
|
||
|
|
||
|
|
||
|
Optionee’s name and address:
|
||
|
|
||
|
|
||
|
|
||
|
|
Incremental Number
of Shares Vested
|
Vesting Date
|
( )
|
|
( )
|
|
( )
|
|
( )
|
|
( )
|
|
|
Twilio Inc.
|
|
|
|
|
|
|
|
|
By:
|
|
|
|
Title:
|
Dated:
|
|
|
|
|
Grantee’s Signature
|
||
|
|
||
|
|
||
|
Grantee’s name and address:
|
||
|
|
||
|
|
||
|
|
||
|
|
Name of Grantee:
|
|
|
|
|
|
No. of Restricted Stock Units:
|
|
|
|
|
|
Grant Date:
|
|
|
Incremental Number of
Restricted Stock Units Vested
|
Vesting Date
|
( )
|
|
( )
|
|
( )
|
|
( )
|
|
|
Twilio Inc.
|
|
|
|
|
|
|
|
|
By:
|
|
|
|
Title:
|
Dated:
|
|
|
|
|
|
Grantee’s Signature
|
|
|
|
|
|
|
|
Grantee’s name and address:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Incremental Number of
Restricted Stock Units Vested
|
Vesting Date
|
( )
|
|
( )
|
|
( )
|
|
( )
|
|
|
Twilio Inc.
|
|
|
|
|
|
|
|
|
By:
|
|
|
|
Title:
|
Dated:
|
|
|
|
|
|
Grantee’s Signature
|
|
|
|
|
|
|
|
Grantee’s name and address:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name of Optionee:
|
|
|
|
No. of Option Shares:
|
|
|
|
Option Exercise Price per Share:
|
US$
|
|
[FMV on Grant Date]
|
|
|
Grant Date:
|
|
|
|
Expiration Date:
|
|
|
[No more than 10 years]
|
Incremental Number of
Option Shares Exercisable
|
Exercisability Date
|
( )
|
|
( )
|
|
( )
|
|
( )
|
|
( )
|
|
|
Twilio Inc.
|
|
|
|
|
|
|
|
|
By:
|
|
|
|
Title:
|
Dated:
|
|
|
|
|
|
Optionee’s Signature
|
|
|
|
|
|
|
|
Optionee’s name and address:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name of Optionee:
|
|
|
|
No. of Option Shares:
|
|
|
|
Option Exercise Price per Share:
|
US$
|
|
[FMV on Grant Date]
|
|
|
Grant Date:
|
|
|
|
Expiration Date:
|
|
Incremental Number of
Option Shares Exercisable
|
Exercisability Date
|
( )
|
|
( )
|
|
( )
|
|
( )
|
|
( )
|
|
|
Twilio Inc.
|
|
|
|
|
|
|
|
|
By:
|
|
|
|
Title:
|
|
|
Dated:
|
|
|
|
|
|
|
Optionee’s Signature
|
|
|
||
|
Optionee’s name and address:
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
Incremental Number of
Restricted Stock Units Vested
|
Vesting Date
|
( )
|
|
( )
|
|
( )
|
|
( )
|
|
|
Twilio Inc.
|
|
|
|
|
|
|
|
|
By:
|
|
|
|
Title:
|
Dated:
|
|
|
|
|
Grantee’s Signature
|
||
|
|
||
|
Grantee’s name and address:
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
||
|
|
Incremental Number of
Restricted Stock Units Vested
|
Vesting Date
|
( )
|
|
( )
|
|
( )
|
|
( )
|
|
|
Twilio Inc.
|
|
|
|
|
|
|
|
|
By:
|
|
|
|
Title:
|
Dated:
|
|
|
|
|
|
|
Grantee’s Signature
|
|
|
|
|
|
|
|
|
|
|
|
Grantee’s name and address:
|
|
|
|
|
|
|
|
|
|
|
|
|
/s/ JEFFREY LAWSON
|
|
Jeffrey Lawson
|
|
Chief Executive Officer (Principal Executive Officer)
|
|
/s/ KHOZEMA SHIPCHANDLER
|
|
Khozema Shipchandler
|
|
Chief Financial Officer (Principal Accounting and Financial Officer)
|
|
/s/ JEFFREY LAWSON
|
|
Jeffrey Lawson
|
|
Chief Executive Officer (Principal Executive Officer)
|
|
|
|
/s/ KHOZEMA SHIPCHANDLER
|
|
Khozema Shipchandler
|
|
Chief Financial Officer (Principal Accounting and Financial Officer)
|
|