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June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||
Money market funds | $ | 333,693 | $ | — | $ | — | $ | 207,168 | $ | — | $ | — | |||||||||||
U.S. agency securities | — | 7,498 | — | — | — | — | |||||||||||||||||
Commercial paper | — | 15,740 | — | — | 7,496 | — | |||||||||||||||||
U.S. government securities | — | — | — | — | — | — | |||||||||||||||||
Corporate bonds | — | — | — | — | — | — | |||||||||||||||||
Municipal securities | — | — | — | — | 1,000 | — | |||||||||||||||||
Short-term securities: | |||||||||||||||||||||||
U.S. agency securities | — | 15,584 | — | — | 9,055 | — | |||||||||||||||||
Corporate bonds | — | 48,404 | — | — | 6,980 | — | |||||||||||||||||
Commercial paper | — | 54,285 | — | — | 17,298 | — | |||||||||||||||||
Municipal securities | — | 17,655 | — | — | 8,028 | — | |||||||||||||||||
U.S. government securities | 67,359 | — | — | 18,540 | — | — | |||||||||||||||||
Long-term securities: | |||||||||||||||||||||||
U.S. agency securities | — | 15,023 | — | — | 3,502 | — | |||||||||||||||||
Corporate bonds | — | 53,253 | — | — | 12,914 | — | |||||||||||||||||
Municipal securities | — | 18,961 | — | — | 2,492 | — | |||||||||||||||||
U.S. government securities | 36,862 | — | — | 8,458 | — | — | |||||||||||||||||
Total | $ | 437,914 | $ | 246,403 | $ | — | $ | 234,166 | $ | 68,765 | $ | — |
June 30, 2017 | |||||||
Carrying Value | Fair Value (Level 2) | ||||||
Convertible senior notes | $ | 349,960 | $ | 539,062 | |||
Total | $ | 349,960 | $ | 539,062 |
June 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value | Fair Value (Level 3) | Carrying Value | Fair Value (Level 3) | ||||||||||||
Loans held for sale | $ | 50,079 | $ | 52,266 | $ | 42,144 | $ | 42,633 | |||||||
Total | $ | 50,079 | $ | 52,266 | $ | 42,144 | $ | 42,633 |
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Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Short-term securities: | |||||||||||||||
U.S. agency securities | $ | 15,593 | $ | 1 | $ | (10 | ) | $ | 15,584 | ||||||
Corporate bonds | 48,397 | 29 | (22 | ) | 48,404 | ||||||||||
Commercial paper | 54,285 | — | — | 54,285 | |||||||||||
Municipal securities | 17,668 | 8 | (21 | ) | 17,655 | ||||||||||
U.S. government securities | 67,388 | 2 | (31 | ) | 67,359 | ||||||||||
Total | $ | 203,331 | $ | 40 | $ | (84 | ) | $ | 203,287 | ||||||
Long-term securities: | |||||||||||||||
U.S. agency securities | $ | 15,028 | $ | 3 | $ | (8 | ) | $ | 15,023 | ||||||
Corporate bonds | 53,282 | 20 | (49 | ) | 53,253 | ||||||||||
Municipal securities | 18,973 | 6 | (18 | ) | 18,961 | ||||||||||
U.S. government securities | 36,911 | 6 | (55 | ) | 36,862 | ||||||||||
Total | $ | 124,194 | $ | 35 | $ | (130 | ) | $ | 124,099 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Short-term securities: | |||||||||||||||
U.S. agency securities | $ | 9,048 | $ | 7 | $ | — | $ | 9,055 | |||||||
Corporate bonds | 17,318 | — | (20 | ) | 17,298 | ||||||||||
Commercial paper | 6,980 | — | — | 6,980 | |||||||||||
Municipal securities | 8,037 | — | (9 | ) | 8,028 | ||||||||||
U.S. government securities | 18,537 | 3 | — | 18,540 | |||||||||||
Total | $ | 59,920 | $ | 10 | $ | (29 | ) | $ | 59,901 | ||||||
Long-term securities: | |||||||||||||||
U.S. agency securities | $ | 3,502 | $ | — | $ | — | $ | 3,502 | |||||||
Corporate bonds | 12,939 | — | (25 | ) | 12,914 | ||||||||||
Municipal securities | 2,505 | — | (13 | ) | 2,492 | ||||||||||
U.S. government securities | 8,478 | — | (20 | ) | 8,458 | ||||||||||
Total | $ | 27,424 | $ | — | $ | (58 | ) | $ | 27,366 |
Amortized Cost | Fair Value | ||||||
Due in one year or less | $ | 203,331 | $ | 203,287 | |||
Due in one to five years | 124,194 | 124,099 | |||||
Total | $ | 327,525 | $ | 327,386 |
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June 30, 2017 | December 31, 2016 | ||||||
Leasehold improvements | $ | 74,138 | $ | 73,366 | |||
Computer equipment | 60,041 | 52,915 | |||||
Capitalized software | 28,475 | 24,642 | |||||
Office furniture and equipment | 12,509 | 10,737 | |||||
Total | 175,163 | 161,660 | |||||
Less: Accumulated depreciation and amortization | (87,721 | ) | (73,332 | ) | |||
Property and equipment, net | $ | 87,442 | $ | 88,328 |
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Balance at June 30, 2017 | |||||||||||
Cost | Accumulated Amortization | Net | |||||||||
Patents | $ | 1,285 | $ | (506 | ) | $ | 779 | ||||
Technology Assets | 29,158 | (18,287 | ) | 10,871 | |||||||
Customer Assets | 8,886 | (4,084 | ) | 4,802 | |||||||
Total | $ | 39,329 | $ | (22,877 | ) | $ | 16,452 |
Balance at December 31, 2016 | |||||||||||
Cost | Accumulated Amortization | Net | |||||||||
Patents | $ | 1,285 | $ | (454 | ) | $ | 831 | ||||
Technology Assets | 29,075 | (14,702 | ) | 14,373 | |||||||
Customer Assets | 7,745 | (3,657 | ) | 4,088 | |||||||
Total | $ | 38,105 | $ | (18,813 | ) | $ | 19,292 |
2017 (remaining 6 months) | $ | 3,538 | |
2018 | 6,037 | ||
2019 | 3,253 | ||
2020 | 1,296 | ||
2021 | 759 | ||
Thereafter | 1,569 | ||
Total | $ | 16,452 |
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June 30, 2017 | December 31, 2016 | ||||||
Inventory, net | $ | 18,457 | $ | 13,724 | |||
Prepaid expenses | 10,216 | 7,365 | |||||
Accounts receivable, net | 8,104 | 6,191 | |||||
Processing costs receivable | 7,514 | 8,593 | |||||
Deferred hardware costs | 5,458 | 4,546 | |||||
Deferred magstripe reader costs | 2,681 | 3,911 | |||||
Merchant cash advance receivable, net | 885 | 4,212 | |||||
Tenant improvement reimbursement receivable | 213 | 1,189 | |||||
Other | 9,270 | 10,812 | |||||
Total | $ | 62,798 | $ | 60,543 |
June 30, 2017 | December 31, 2016 | ||||||
Accrued marketing | $ | 9,406 | $ | 3,972 | |||
Accrued payroll | 8,469 | 5,799 | |||||
Processing costs payable | 7,170 | 9,655 | |||||
Accrued professional fees | 7,151 | 5,788 | |||||
Accrued hardware costs | 5,873 | 3,148 | |||||
Other accrued liabilities | 18,630 | 11,181 | |||||
Total | $ | 56,699 | $ | 39,543 |
June 30, 2017 | December 31, 2016 | ||||||
Square Payroll payable | $ | 9,158 | $ | 4,769 | |||
Deferred revenue | 4,523 | 5,407 | |||||
Current portion of deferred rent | 2,944 | 2,862 | |||||
Accrued redemptions | 1,794 | 1,628 | |||||
Other | 8,220 | 7,806 | |||||
Total | $ | 26,639 | $ | 22,472 |
June 30, 2017 | December 31, 2016 | ||||||
Statutory liabilities | $ | 34,736 | $ | 29,497 | |||
Deferred rent | 21,770 | 23,119 | |||||
Deferred tax liabilities | 476 | 476 | |||||
Other | 6,100 | 4,653 | |||||
Total | $ | 63,082 | $ | 57,745 |
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June 30, 2017 | December 31, 2016 | ||||||
Inventory, net | $ | 18,457 | $ | 13,724 | |||
Prepaid expenses | 10,216 | 7,365 | |||||
Accounts receivable, net | 8,104 | 6,191 | |||||
Processing costs receivable | 7,514 | 8,593 | |||||
Deferred hardware costs | 5,458 | 4,546 | |||||
Deferred magstripe reader costs | 2,681 | 3,911 | |||||
Merchant cash advance receivable, net | 885 | 4,212 | |||||
Tenant improvement reimbursement receivable | 213 | 1,189 | |||||
Other | 9,270 | 10,812 | |||||
Total | $ | 62,798 | $ | 60,543 |
June 30, 2017 | December 31, 2016 | ||||||
Accrued marketing | $ | 9,406 | $ | 3,972 | |||
Accrued payroll | 8,469 | 5,799 | |||||
Processing costs payable | 7,170 | 9,655 | |||||
Accrued professional fees | 7,151 | 5,788 | |||||
Accrued hardware costs | 5,873 | 3,148 | |||||
Other accrued liabilities | 18,630 | 11,181 | |||||
Total | $ | 56,699 | $ | 39,543 |
June 30, 2017 | December 31, 2016 | ||||||
Square Payroll payable | $ | 9,158 | $ | 4,769 | |||
Deferred revenue | 4,523 | 5,407 | |||||
Current portion of deferred rent | 2,944 | 2,862 | |||||
Accrued redemptions | 1,794 | 1,628 | |||||
Other | 8,220 | 7,806 | |||||
Total | $ | 26,639 | $ | 22,472 |
June 30, 2017 | December 31, 2016 | ||||||
Statutory liabilities | $ | 34,736 | $ | 29,497 | |||
Deferred rent | 21,770 | 23,119 | |||||
Deferred tax liabilities | 476 | 476 | |||||
Other | 6,100 | 4,653 | |||||
Total | $ | 63,082 | $ | 57,745 |
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June 30, 2017 | |||
Principal | $ | 440,000 | |
Less: unamortized debt discount | (81,146 | ) | |
Less: unamortized debt issuance costs | (8,894 | ) | |
Net carrying amount | $ | 349,960 |
June 30, 2017 | |||
Debt discount related to value of conversion option | $ | 86,203 | |
Less: allocated debt issuance costs | (2,302 | ) | |
Equity component, net | $ | 83,901 |
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2017 | 2017 | ||||||
Contractual interest expense based on 0.375% per annum | $ | 413 | $ | 526 | |||
Amortization of debt discount and issuance costs | 4,221 | 5,611 | |||||
Total | $ | 4,634 | $ | 6,137 | |||
Effective interest rate of the liability component | 5.34 | % | 5.34 | % |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Accrued transaction losses, beginning of the period | $ | 20,444 | $ | 15,419 | $ | 20,064 | $ | 17,176 | |||||||
Provision for transaction losses | 13,076 | 16,210 | 24,634 | 23,392 | |||||||||||
Charge-offs to accrued transaction losses | (11,065 | ) | (15,536 | ) | (22,243 | ) | (24,475 | ) | |||||||
Accrued transaction losses, end of the period | $ | 22,455 | $ | 16,093 | $ | 22,455 | $ | 16,093 |
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Total stockholders’ equity | |||
Balance at December 31, 2016 | $ | 576,153 | |
Net loss | (31,052 | ) | |
Exercise of stock options | 82,225 | ||
Purchases under the employee stock purchase plan | 7,767 | ||
Vesting of early exercised stock options and other | 488 | ||
Conversion feature of convertible senior notes, due 2022, net of allocated debt issuance costs | 83,901 | ||
Purchase of bond hedges in conjunction with issuance of convertible senior notes, due 2022 | (92,136 | ) | |
Sale of warrants in conjunction with issuance of convertible senior notes, due 2022 | 57,244 | ||
Payment for termination of Starbucks warrant | (54,808 | ) | |
Change in other comprehensive loss | 1,470 | ||
Share-based compensation | 72,492 | ||
Balance at June 30, 2017 | $ | 703,744 |
Number of Stock Options Outstanding | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||
Balance at December 31, 2016 | 73,261,562 | $ | 7.70 | 7.28 | $ | 443,711 | ||||||
Granted | 1,216,959 | 17.20 | ||||||||||
Exercised | (14,912,966 | ) | 5.51 | |||||||||
Forfeited | (2,144,552 | ) | 11.38 | |||||||||
Balance at June 30, 2017 | 57,421,003 | $ | 8.33 | 6.80 | $ | 868,556 | ||||||
Options exercisable as of | ||||||||||||
June 30, 2017 | 53,717,383 | $ | 8.03 | 6.65 | $ | 829,122 |
Number of RSUs | Weighted Average Grant Date Fair Value | |||||
Unvested as of December 31, 2016 | 15,443,391 | $ | 12.09 | |||
Granted | 9,656,680 | 16.78 | ||||
Vested | (2,383,941 | ) | 11.91 | |||
Forfeited | (1,438,238 | ) | 12.66 | |||
Unvested as of June 30, 2017 | 21,277,892 | $ | 14.20 |
Three and Six Months Ended June 30, | ||||||
2017 | 2016 | |||||
Dividend yield | — | % | — | % | ||
Risk-free interest rate | 1.88 | % | 1.55 | % | ||
Expected volatility | 32.22 | % | 42.71 | % | ||
Expected term (years) | 6.02 | 6.08 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of revenue | $ | 18 | $ | — | $ | 18 | $ | — | |||||||
Product development | 25,136 | 24,168 | 44,492 | 46,115 | |||||||||||
Sales and marketing | 4,355 | 3,363 | 8,290 | 6,266 | |||||||||||
General and administrative | 10,084 | 9,391 | 18,463 | 15,739 | |||||||||||
Total | $ | 39,593 | $ | 36,922 | $ | 71,263 | $ | 68,120 |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net loss | $ | (15,962 | ) | $ | (27,345 | ) | $ | (31,052 | ) | $ | (124,100 | ) | |||
Basic shares: | |||||||||||||||
Weighted-average common shares outstanding | 377,959 | 337,635 | 373,291 | 336,406 | |||||||||||
Weighted-average unvested shares | (1,602 | ) | (3,147 | ) | (1,718 | ) | (3,500 | ) | |||||||
Weighted-average shares used to compute basic net loss per share | 376,357 | 334,488 | 371,573 | 332,906 | |||||||||||
Diluted shares: | |||||||||||||||
Weighted-average shares used to compute diluted loss per share | 376,357 | 334,488 | 371,573 | 332,906 | |||||||||||
Net loss per share: | |||||||||||||||
Basic | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.37 | ) | |||
Diluted | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.37 | ) |
Three and Six Months Ended June 30, | |||||
2017 | 2016 | ||||
Stock options and restricted stock units | 78,699 | 113,981 | |||
Common stock warrants | 19,173 | 9,458 | |||
Unvested shares | 1,469 | 2,878 | |||
Employee stock purchase plan | 262 | 127 | |||
Total anti-dilutive securities | 99,603 | 126,444 |
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Capital | Operating | ||||||
Year: | |||||||
2017 (remaining 6 months) | $ | 762 | $ | 8,599 | |||
2018 | 1,495 | 17,065 | |||||
2019 | 1,380 | 16,165 | |||||
2020 | 142 | 16,223 | |||||
2021 | — | 16,614 | |||||
Thereafter | — | 36,084 | |||||
Total | $ | 3,779 | $ | 110,750 | |||
Less amount representing interest | (2 | ) | |||||
Present value of capital lease obligations | 3,777 | ||||||
Less current portion of capital lease obligation | (1,511 | ) | |||||
Non-current portion of capital lease obligation | $ | 2,266 |
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Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue | |||||||||||||||
United States | $ | 530,008 | $ | 421,808 | $ | 974,907 | $ | 789,387 | |||||||
International | 21,497 | 16,725 | 38,152 | 28,415 | |||||||||||
Total net revenue | $ | 551,505 | $ | 438,533 | $ | 1,013,059 | $ | 817,802 |
June 30, 2017 | December 31, 2016 | ||||||
Long-lived assets | |||||||
United States | $ | 158,721 | $ | 162,118 | |||
International | 3,134 | 2,675 | |||||
Total long-lived assets | $ | 161,855 | $ | 164,793 |
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Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
Supplemental Cash Flow Data: | |||||||
Cash paid for interest | $ | 284 | $ | 284 | |||
Cash paid for income taxes | 850 | 168 | |||||
Supplemental disclosures of non-cash investing and financing activities: | |||||||
Change in purchases of property and equipment in accounts payable and accrued expenses | 1,454 | 4,192 | |||||
Unpaid business acquisition purchase price | 644 | — |
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June 30, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value | Fair Value (Level 3) | Carrying Value | Fair Value (Level 3) | ||||||||||||
Loans held for sale | $ | 50,079 | $ | 52,266 | $ | 42,144 | $ | 42,633 | |||||||
Total | $ | 50,079 | $ | 52,266 | $ | 42,144 | $ | 42,633 |
June 30, 2017 | |||||||
Carrying Value | Fair Value (Level 2) | ||||||
Convertible senior notes | $ | 349,960 | $ | 539,062 | |||
Total | $ | 349,960 | $ | 539,062 |
June 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||
Money market funds | $ | 333,693 | $ | — | $ | — | $ | 207,168 | $ | — | $ | — | |||||||||||
U.S. agency securities | — | 7,498 | — | — | — | — | |||||||||||||||||
Commercial paper | — | 15,740 | — | — | 7,496 | — | |||||||||||||||||
U.S. government securities | — | — | — | — | — | — | |||||||||||||||||
Corporate bonds | — | — | — | — | — | — | |||||||||||||||||
Municipal securities | — | — | — | — | 1,000 | — | |||||||||||||||||
Short-term securities: | |||||||||||||||||||||||
U.S. agency securities | — | 15,584 | — | — | 9,055 | — | |||||||||||||||||
Corporate bonds | — | 48,404 | — | — | 6,980 | — | |||||||||||||||||
Commercial paper | — | 54,285 | — | — | 17,298 | — | |||||||||||||||||
Municipal securities | — | 17,655 | — | — | 8,028 | — | |||||||||||||||||
U.S. government securities | 67,359 | — | — | 18,540 | — | — | |||||||||||||||||
Long-term securities: | |||||||||||||||||||||||
U.S. agency securities | — | 15,023 | — | — | 3,502 | — | |||||||||||||||||
Corporate bonds | — | 53,253 | — | — | 12,914 | — | |||||||||||||||||
Municipal securities | — | 18,961 | — | — | 2,492 | — | |||||||||||||||||
U.S. government securities | 36,862 | — | — | 8,458 | — | — | |||||||||||||||||
Total | $ | 437,914 | $ | 246,403 | $ | — | $ | 234,166 | $ | 68,765 | $ | — |
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Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Short-term securities: | |||||||||||||||
U.S. agency securities | $ | 15,593 | $ | 1 | $ | (10 | ) | $ | 15,584 | ||||||
Corporate bonds | 48,397 | 29 | (22 | ) | 48,404 | ||||||||||
Commercial paper | 54,285 | — | — | 54,285 | |||||||||||
Municipal securities | 17,668 | 8 | (21 | ) | 17,655 | ||||||||||
U.S. government securities | 67,388 | 2 | (31 | ) | 67,359 | ||||||||||
Total | $ | 203,331 | $ | 40 | $ | (84 | ) | $ | 203,287 | ||||||
Long-term securities: | |||||||||||||||
U.S. agency securities | $ | 15,028 | $ | 3 | $ | (8 | ) | $ | 15,023 | ||||||
Corporate bonds | 53,282 | 20 | (49 | ) | 53,253 | ||||||||||
Municipal securities | 18,973 | 6 | (18 | ) | 18,961 | ||||||||||
U.S. government securities | 36,911 | 6 | (55 | ) | 36,862 | ||||||||||
Total | $ | 124,194 | $ | 35 | $ | (130 | ) | $ | 124,099 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
Short-term securities: | |||||||||||||||
U.S. agency securities | $ | 9,048 | $ | 7 | $ | — | $ | 9,055 | |||||||
Corporate bonds | 17,318 | — | (20 | ) | 17,298 | ||||||||||
Commercial paper | 6,980 | — | — | 6,980 | |||||||||||
Municipal securities | 8,037 | — | (9 | ) | 8,028 | ||||||||||
U.S. government securities | 18,537 | 3 | — | 18,540 | |||||||||||
Total | $ | 59,920 | $ | 10 | $ | (29 | ) | $ | 59,901 | ||||||
Long-term securities: | |||||||||||||||
U.S. agency securities | $ | 3,502 | $ | — | $ | — | $ | 3,502 | |||||||
Corporate bonds | 12,939 | — | (25 | ) | 12,914 | ||||||||||
Municipal securities | 2,505 | — | (13 | ) | 2,492 | ||||||||||
U.S. government securities | 8,478 | — | (20 | ) | 8,458 | ||||||||||
Total | $ | 27,424 | $ | — | $ | (58 | ) | $ | 27,366 |
Amortized Cost | Fair Value | ||||||
Due in one year or less | $ | 203,331 | $ | 203,287 | |||
Due in one to five years | 124,194 | 124,099 | |||||
Total | $ | 327,525 | $ | 327,386 |
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June 30, 2017 | December 31, 2016 | ||||||
Leasehold improvements | $ | 74,138 | $ | 73,366 | |||
Computer equipment | 60,041 | 52,915 | |||||
Capitalized software | 28,475 | 24,642 | |||||
Office furniture and equipment | 12,509 | 10,737 | |||||
Total | 175,163 | 161,660 | |||||
Less: Accumulated depreciation and amortization | (87,721 | ) | (73,332 | ) | |||
Property and equipment, net | $ | 87,442 | $ | 88,328 |
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Balance at June 30, 2017 | |||||||||||
Cost | Accumulated Amortization | Net | |||||||||
Patents | $ | 1,285 | $ | (506 | ) | $ | 779 | ||||
Technology Assets | 29,158 | (18,287 | ) | 10,871 | |||||||
Customer Assets | 8,886 | (4,084 | ) | 4,802 | |||||||
Total | $ | 39,329 | $ | (22,877 | ) | $ | 16,452 |
Balance at December 31, 2016 | |||||||||||
Cost | Accumulated Amortization | Net | |||||||||
Patents | $ | 1,285 | $ | (454 | ) | $ | 831 | ||||
Technology Assets | 29,075 | (14,702 | ) | 14,373 | |||||||
Customer Assets | 7,745 | (3,657 | ) | 4,088 | |||||||
Total | $ | 38,105 | $ | (18,813 | ) | $ | 19,292 |
2017 (remaining 6 months) | $ | 3,538 | |
2018 | 6,037 | ||
2019 | 3,253 | ||
2020 | 1,296 | ||
2021 | 759 | ||
Thereafter | 1,569 | ||
Total | $ | 16,452 |
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June 30, 2017 | December 31, 2016 | ||||||
Inventory, net | $ | 18,457 | $ | 13,724 | |||
Prepaid expenses | 10,216 | 7,365 | |||||
Accounts receivable, net | 8,104 | 6,191 | |||||
Processing costs receivable | 7,514 | 8,593 | |||||
Deferred hardware costs | 5,458 | 4,546 | |||||
Deferred magstripe reader costs | 2,681 | 3,911 | |||||
Merchant cash advance receivable, net | 885 | 4,212 | |||||
Tenant improvement reimbursement receivable | 213 | 1,189 | |||||
Other | 9,270 | 10,812 | |||||
Total | $ | 62,798 | $ | 60,543 |
June 30, 2017 | December 31, 2016 | ||||||
Accrued marketing | $ | 9,406 | $ | 3,972 | |||
Accrued payroll | 8,469 | 5,799 | |||||
Processing costs payable | 7,170 | 9,655 | |||||
Accrued professional fees | 7,151 | 5,788 | |||||
Accrued hardware costs | 5,873 | 3,148 | |||||
Other accrued liabilities | 18,630 | 11,181 | |||||
Total | $ | 56,699 | $ | 39,543 |
June 30, 2017 | December 31, 2016 | ||||||
Square Payroll payable | $ | 9,158 | $ | 4,769 | |||
Deferred revenue | 4,523 | 5,407 | |||||
Current portion of deferred rent | 2,944 | 2,862 | |||||
Accrued redemptions | 1,794 | 1,628 | |||||
Other | 8,220 | 7,806 | |||||
Total | $ | 26,639 | $ | 22,472 |
|
June 30, 2017 | December 31, 2016 | ||||||
Statutory liabilities | $ | 34,736 | $ | 29,497 | |||
Deferred rent | 21,770 | 23,119 | |||||
Deferred tax liabilities | 476 | 476 | |||||
Other | 6,100 | 4,653 | |||||
Total | $ | 63,082 | $ | 57,745 |
|
June 30, 2017 | |||
Principal | $ | 440,000 | |
Less: unamortized debt discount | (81,146 | ) | |
Less: unamortized debt issuance costs | (8,894 | ) | |
Net carrying amount | $ | 349,960 |
June 30, 2017 | |||
Debt discount related to value of conversion option | $ | 86,203 | |
Less: allocated debt issuance costs | (2,302 | ) | |
Equity component, net | $ | 83,901 |
Three Months Ended | Six Months Ended | ||||||
June 30, | June 30, | ||||||
2017 | 2017 | ||||||
Contractual interest expense based on 0.375% per annum | $ | 413 | $ | 526 | |||
Amortization of debt discount and issuance costs | 4,221 | 5,611 | |||||
Total | $ | 4,634 | $ | 6,137 | |||
Effective interest rate of the liability component | 5.34 | % | 5.34 | % |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Accrued transaction losses, beginning of the period | $ | 20,444 | $ | 15,419 | $ | 20,064 | $ | 17,176 | |||||||
Provision for transaction losses | 13,076 | 16,210 | 24,634 | 23,392 | |||||||||||
Charge-offs to accrued transaction losses | (11,065 | ) | (15,536 | ) | (22,243 | ) | (24,475 | ) | |||||||
Accrued transaction losses, end of the period | $ | 22,455 | $ | 16,093 | $ | 22,455 | $ | 16,093 |
|
Total stockholders’ equity | |||
Balance at December 31, 2016 | $ | 576,153 | |
Net loss | (31,052 | ) | |
Exercise of stock options | 82,225 | ||
Purchases under the employee stock purchase plan | 7,767 | ||
Vesting of early exercised stock options and other | 488 | ||
Conversion feature of convertible senior notes, due 2022, net of allocated debt issuance costs | 83,901 | ||
Purchase of bond hedges in conjunction with issuance of convertible senior notes, due 2022 | (92,136 | ) | |
Sale of warrants in conjunction with issuance of convertible senior notes, due 2022 | 57,244 | ||
Payment for termination of Starbucks warrant | (54,808 | ) | |
Change in other comprehensive loss | 1,470 | ||
Share-based compensation | 72,492 | ||
Balance at June 30, 2017 | $ | 703,744 |
Number of Stock Options Outstanding | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value | |||||||||
Balance at December 31, 2016 | 73,261,562 | $ | 7.70 | 7.28 | $ | 443,711 | ||||||
Granted | 1,216,959 | 17.20 | ||||||||||
Exercised | (14,912,966 | ) | 5.51 | |||||||||
Forfeited | (2,144,552 | ) | 11.38 | |||||||||
Balance at June 30, 2017 | 57,421,003 | $ | 8.33 | 6.80 | $ | 868,556 | ||||||
Options exercisable as of | ||||||||||||
June 30, 2017 | 53,717,383 | $ | 8.03 | 6.65 | $ | 829,122 |
Number of RSUs | Weighted Average Grant Date Fair Value | |||||
Unvested as of December 31, 2016 | 15,443,391 | $ | 12.09 | |||
Granted | 9,656,680 | 16.78 | ||||
Vested | (2,383,941 | ) | 11.91 | |||
Forfeited | (1,438,238 | ) | 12.66 | |||
Unvested as of June 30, 2017 | 21,277,892 | $ | 14.20 |
Three and Six Months Ended June 30, | ||||||
2017 | 2016 | |||||
Dividend yield | — | % | — | % | ||
Risk-free interest rate | 1.88 | % | 1.55 | % | ||
Expected volatility | 32.22 | % | 42.71 | % | ||
Expected term (years) | 6.02 | 6.08 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Cost of revenue | $ | 18 | $ | — | $ | 18 | $ | — | |||||||
Product development | 25,136 | 24,168 | 44,492 | 46,115 | |||||||||||
Sales and marketing | 4,355 | 3,363 | 8,290 | 6,266 | |||||||||||
General and administrative | 10,084 | 9,391 | 18,463 | 15,739 | |||||||||||
Total | $ | 39,593 | $ | 36,922 | $ | 71,263 | $ | 68,120 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net loss | $ | (15,962 | ) | $ | (27,345 | ) | $ | (31,052 | ) | $ | (124,100 | ) | |||
Basic shares: | |||||||||||||||
Weighted-average common shares outstanding | 377,959 | 337,635 | 373,291 | 336,406 | |||||||||||
Weighted-average unvested shares | (1,602 | ) | (3,147 | ) | (1,718 | ) | (3,500 | ) | |||||||
Weighted-average shares used to compute basic net loss per share | 376,357 | 334,488 | 371,573 | 332,906 | |||||||||||
Diluted shares: | |||||||||||||||
Weighted-average shares used to compute diluted loss per share | 376,357 | 334,488 | 371,573 | 332,906 | |||||||||||
Net loss per share: | |||||||||||||||
Basic | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.37 | ) | |||
Diluted | $ | (0.04 | ) | $ | (0.08 | ) | $ | (0.08 | ) | $ | (0.37 | ) |
Three and Six Months Ended June 30, | |||||
2017 | 2016 | ||||
Stock options and restricted stock units | 78,699 | 113,981 | |||
Common stock warrants | 19,173 | 9,458 | |||
Unvested shares | 1,469 | 2,878 | |||
Employee stock purchase plan | 262 | 127 | |||
Total anti-dilutive securities | 99,603 | 126,444 |
|
Capital | Operating | ||||||
Year: | |||||||
2017 (remaining 6 months) | $ | 762 | $ | 8,599 | |||
2018 | 1,495 | 17,065 | |||||
2019 | 1,380 | 16,165 | |||||
2020 | 142 | 16,223 | |||||
2021 | — | 16,614 | |||||
Thereafter | — | 36,084 | |||||
Total | $ | 3,779 | $ | 110,750 | |||
Less amount representing interest | (2 | ) | |||||
Present value of capital lease obligations | 3,777 | ||||||
Less current portion of capital lease obligation | (1,511 | ) | |||||
Non-current portion of capital lease obligation | $ | 2,266 |
|
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenue | |||||||||||||||
United States | $ | 530,008 | $ | 421,808 | $ | 974,907 | $ | 789,387 | |||||||
International | 21,497 | 16,725 | 38,152 | 28,415 | |||||||||||
Total net revenue | $ | 551,505 | $ | 438,533 | $ | 1,013,059 | $ | 817,802 |
June 30, 2017 | December 31, 2016 | ||||||
Long-lived assets | |||||||
United States | $ | 158,721 | $ | 162,118 | |||
International | 3,134 | 2,675 | |||||
Total long-lived assets | $ | 161,855 | $ | 164,793 |
|
Six Months Ended June 30, | |||||||
2017 | 2016 | ||||||
Supplemental Cash Flow Data: | |||||||
Cash paid for interest | $ | 284 | $ | 284 | |||
Cash paid for income taxes | 850 | 168 | |||||
Supplemental disclosures of non-cash investing and financing activities: | |||||||
Change in purchases of property and equipment in accounts payable and accrued expenses | 1,454 | 4,192 | |||||
Unpaid business acquisition purchase price | 644 | — |
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