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March 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||
Money market funds | $ | 337,580 | $ | — | $ | — | $ | 207,168 | $ | — | $ | — | |||||||||||
U.S. agency securities | — | 27,476 | — | — | — | — | |||||||||||||||||
Commercial paper | — | 42,911 | — | — | 7,496 | — | |||||||||||||||||
U.S. government securities | 24,994 | — | — | — | — | — | |||||||||||||||||
Corporate bonds | — | 1,000 | — | — | — | — | |||||||||||||||||
Municipal securities | — | — | — | — | 1,000 | — | |||||||||||||||||
Short-term securities: | |||||||||||||||||||||||
U.S. agency securities | — | 10,015 | — | — | 9,055 | — | |||||||||||||||||
Corporate bonds | — | 35,763 | — | — | 6,980 | — | |||||||||||||||||
Commercial paper | — | 55,352 | — | — | 17,298 | — | |||||||||||||||||
Municipal securities | — | 10,253 | — | — | 8,028 | — | |||||||||||||||||
U.S. government securities | 75,373 | — | — | 18,540 | — | — | |||||||||||||||||
Long-term securities: | |||||||||||||||||||||||
U.S. agency securities | — | 3,601 | — | — | 3,502 | — | |||||||||||||||||
Corporate bonds | — | 25,039 | — | — | 12,914 | — | |||||||||||||||||
Municipal securities | — | 11,141 | — | — | 2,492 | — | |||||||||||||||||
U.S. government securities | 22,930 | — | — | 8,458 | — | — | |||||||||||||||||
Total | $ | 460,877 | $ | 222,551 | $ | — | $ | 234,166 | $ | 68,765 | $ | — |
March 31, 2017 | |||||||
Carrying Value | Fair Value (Level 2) | ||||||
Convertible senior notes | $ | 345,739 | $ | 456,500 | |||
Total | $ | 345,739 | $ | 456,500 |
March 31, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value | Fair Value (Level 3) | Carrying Value | Fair Value (Level 3) | ||||||||||||
Loans held for sale | $ | 51,883 | $ | 52,319 | $ | 42,144 | $ | 42,633 | |||||||
Total | $ | 51,883 | $ | 52,319 | $ | 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 | $ | 10,023 | $ | 1 | $ | (9 | ) | $ | 10,015 | ||||||
Corporate bonds | 35,779 | 19 | (35 | ) | 35,763 | ||||||||||
Commercial paper | 55,352 | — | — | 55,352 | |||||||||||
Municipal securities | 10,248 | 9 | (4 | ) | 10,253 | ||||||||||
U.S. government securities | 75,374 | 9 | (10 | ) | 75,373 | ||||||||||
Total | $ | 186,776 | $ | 38 | $ | (58 | ) | $ | 186,756 | ||||||
Long-term securities: | |||||||||||||||
U.S. agency securities | $ | 3,601 | $ | 3 | $ | (3 | ) | $ | 3,601 | ||||||
Corporate bonds | 25,024 | 23 | (8 | ) | 25,039 | ||||||||||
Municipal securities | 11,142 | 8 | (9 | ) | 11,141 | ||||||||||
U.S. government securities | 22,905 | 28 | (3 | ) | 22,930 | ||||||||||
Total | $ | 62,672 | $ | 62 | $ | (23 | ) | $ | 62,711 |
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 | $ | 186,776 | $ | 186,756 | |||
Due in one to five years | 62,672 | 62,711 | |||||
Total | $ | 249,448 | $ | 249,467 |
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March 31, 2017 | December 31, 2016 | ||||||
Leasehold improvements | $ | 72,667 | $ | 73,366 | |||
Computer equipment | 60,141 | 52,915 | |||||
Capitalized software | 26,406 | 24,642 | |||||
Office furniture and equipment | 11,960 | 10,737 | |||||
Construction in process | 480 | — | |||||
Total | 171,654 | 161,660 | |||||
Less: Accumulated depreciation and amortization | (80,641 | ) | (73,332 | ) | |||
Property and equipment, net | $ | 91,013 | $ | 88,328 |
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Balance at March 31, 2017 | |||||||||||
Cost | Accumulated Amortization | Net | |||||||||
Patent | $ | 1,285 | $ | (480 | ) | $ | 805 | ||||
Technology Assets | 29,158 | (16,592 | ) | 12,566 | |||||||
Customer Assets | 8,886 | (3,862 | ) | 5,024 | |||||||
Total | $ | 39,329 | $ | (20,934 | ) | $ | 18,395 |
Balance at December 31, 2016 | |||||||||||
Cost | Accumulated Amortization | Net | |||||||||
Patent | $ | 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 9 months) | $ | 5,481 | |
2018 | 6,037 | ||
2019 | 3,253 | ||
2020 | 1,296 | ||
2021 | 748 | ||
Thereafter | 1,580 | ||
Total | $ | 18,395 |
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March 31, 2017 | December 31, 2016 | ||||||
Inventory, net | $ | 13,951 | $ | 13,724 | |||
Accounts receivable, net | 6,947 | 6,191 | |||||
Prepaid expenses | 9,447 | 7,365 | |||||
Deferred magstripe reader costs | 2,659 | 3,911 | |||||
Tenant improvement reimbursement receivable | 174 | 1,189 | |||||
Merchant cash advance receivable, net | 2,723 | 4,212 | |||||
Deferred hardware costs | 4,597 | 4,546 | |||||
Processing costs receivable | 6,438 | 8,593 | |||||
Other | 7,669 | 10,812 | |||||
Total | $ | 54,605 | $ | 60,543 |
March 31, 2017 | December 31, 2016 | ||||||
Accrued hardware costs | $ | 4,309 | $ | 3,148 | |||
Processing costs payable | 7,592 | 9,655 | |||||
Accrued professional fees | 6,129 | 5,788 | |||||
Accrued payroll | 9,039 | 5,799 | |||||
Accrued marketing | 4,828 | 3,972 | |||||
Other accrued liabilities | 13,578 | 11,181 | |||||
Total | $ | 45,475 | $ | 39,543 |
March 31, 2017 | December 31, 2016 | ||||||
Square Payroll payable | $ | 7,386 | $ | 4,769 | |||
Accrued redemptions | 1,874 | 1,628 | |||||
Current portion of deferred rent | 2,882 | 2,862 | |||||
Deferred revenue | 2,965 | 5,407 | |||||
Other | 7,705 | 7,806 | |||||
Total | $ | 22,812 | $ | 22,472 |
March 31, 2017 | December 31, 2016 | ||||||
Deferred rent | $ | 22,444 | $ | 23,119 | |||
Deferred tax liabilities | 476 | 476 | |||||
Statutory liabilities | 33,113 | 29,497 | |||||
Other | 6,512 | 4,653 | |||||
Total | $ | 62,545 | $ | 57,745 |
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March 31, 2017 | December 31, 2016 | ||||||
Inventory, net | $ | 13,951 | $ | 13,724 | |||
Accounts receivable, net | 6,947 | 6,191 | |||||
Prepaid expenses | 9,447 | 7,365 | |||||
Deferred magstripe reader costs | 2,659 | 3,911 | |||||
Tenant improvement reimbursement receivable | 174 | 1,189 | |||||
Merchant cash advance receivable, net | 2,723 | 4,212 | |||||
Deferred hardware costs | 4,597 | 4,546 | |||||
Processing costs receivable | 6,438 | 8,593 | |||||
Other | 7,669 | 10,812 | |||||
Total | $ | 54,605 | $ | 60,543 |
March 31, 2017 | December 31, 2016 | ||||||
Accrued hardware costs | $ | 4,309 | $ | 3,148 | |||
Processing costs payable | 7,592 | 9,655 | |||||
Accrued professional fees | 6,129 | 5,788 | |||||
Accrued payroll | 9,039 | 5,799 | |||||
Accrued marketing | 4,828 | 3,972 | |||||
Other accrued liabilities | 13,578 | 11,181 | |||||
Total | $ | 45,475 | $ | 39,543 |
March 31, 2017 | December 31, 2016 | ||||||
Square Payroll payable | $ | 7,386 | $ | 4,769 | |||
Accrued redemptions | 1,874 | 1,628 | |||||
Current portion of deferred rent | 2,882 | 2,862 | |||||
Deferred revenue | 2,965 | 5,407 | |||||
Other | 7,705 | 7,806 | |||||
Total | $ | 22,812 | $ | 22,472 |
March 31, 2017 | December 31, 2016 | ||||||
Deferred rent | $ | 22,444 | $ | 23,119 | |||
Deferred tax liabilities | 476 | 476 | |||||
Statutory liabilities | 33,113 | 29,497 | |||||
Other | 6,512 | 4,653 | |||||
Total | $ | 62,545 | $ | 57,745 |
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March 31, 2017 | |||
Principal | $ | 440,000 | |
Less: debt discount | (84,950 | ) | |
Less: debt issuance costs | (9,311 | ) | |
Net carrying amount | $ | 345,739 |
March 31, 2017 | |||
Debt discount | $ | 86,203 | |
Less: debt issuance costs | (2,302 | ) | |
Equity component, net | $ | 83,901 |
Three Months Ended | |||
March 31, | |||
2017 | |||
Contractual interest expense based on 0.375% per annum | $ | 113 | |
Amortization of debt discount and issuance costs | 1,390 | ||
Total | $ | 1,503 | |
Effective interest rate of the liability component | 5.34 | % |
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Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Accrued transaction losses, beginning of the period | $ | 20,064 | $ | 17,176 | |||
Provision for transaction losses | 11,558 | 7,182 | |||||
Charge-offs to accrued transaction losses | (11,178 | ) | (8,939 | ) | |||
Accrued transaction losses, end of the period | $ | 20,444 | $ | 15,419 |
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Total stockholders’ equity | |||
Balance at December 31, 2016 | $ | 576,153 | |
Net loss | (15,090 | ) | |
Exercise of stock options | 39,409 | ||
Vesting of early exercised stock options and other | 314 | ||
Conversion feature of convertible senior notes, due 2022, net of allocated 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 | 747 | ||
Share-based compensation | 32,199 | ||
Balance at March 31, 2017 | $ | 627,933 |
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 | — | — | ||||||||||
Exercised | (7,761,169 | ) | 5.08 | |||||||||
Forfeited | (1,075,984 | ) | $ | 10.93 | ||||||||
Balance at March 31, 2017 | 64,424,409 | 7.96 | 7.04 | 600,185 | ||||||||
Options exercisable as of | ||||||||||||
March 31, 2017 | 61,373,338 | 7.81 | 6.95 | 581,082 |
Number of RSUs | Weighted Average Grant Date Fair Value | |||||
Unvested as of December 31, 2016 | 15,443,391 | $ | 12.09 | |||
Granted | 1,803,112 | 14.46 | ||||
Vested | (1,081,480 | ) | 12.22 | |||
Forfeited | (568,674 | ) | 11.39 | |||
Unvested as of March 31, 2017 | 15,596,349 | $ | 12.38 |
Three Months Ended March 31, | ||
2016 | ||
Dividend yield | — | % |
Risk-free interest rate | 1.39 | % |
Expected volatility | 43 | % |
Expected term (years) | 6.08 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Product development | $ | 19,356 | $ | 21,947 | |||
Sales and marketing | 3,935 | 2,903 | |||||
General and administrative | 8,379 | 6,348 | |||||
Total | $ | 31,670 | $ | 31,198 |
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Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net loss | $ | (15,090 | ) | $ | (96,755 | ) | |
Basic shares: | |||||||
Weighted-average common shares outstanding | 368,571 | 335,177 | |||||
Weighted-average unvested shares | (1,834 | ) | (3,853 | ) | |||
Weighted-average shares used to compute basic net loss per share | 366,737 | 331,324 | |||||
Diluted shares: | |||||||
Weighted-average shares used to compute diluted loss per share | 366,737 | 331,324 | |||||
Net loss per share: | |||||||
Basic | $ | (0.04 | ) | $ | (0.29 | ) | |
Diluted | $ | (0.04 | ) | $ | (0.29 | ) |
Three Months Ended March 31, | |||||
2017 | 2016 | ||||
Stock options and restricted stock units | 80,021 | 109,912 | |||
Common stock warrants | 19,173 | 9,544 | |||
Unvested shares | 1,732 | 3,428 | |||
Employee stock purchase plan | 653 | 635 | |||
Total anti-dilutive securities | 101,579 | 123,519 |
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Capital | Operating | ||||||
Year: | |||||||
2017 (remaining 9 months) | $ | 1,150 | $ | 12,529 | |||
2018 | 1,495 | 16,528 | |||||
2019 | 1,380 | 15,673 | |||||
2020 | 141 | 15,757 | |||||
2021 | — | 16,172 | |||||
Thereafter | — | 35,943 | |||||
Total | $ | 4,166 | $ | 112,602 | |||
Less amount representing interest | (3 | ) | |||||
Present value of capital lease obligations | 4,163 | ||||||
Less current portion of capital lease obligation | (1,524 | ) | |||||
Non-current portion of capital lease obligation | $ | 2,639 |
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Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Revenue | |||||||
United States | $ | 444,899 | $ | 367,164 | |||
International | 16,655 | 12,105 | |||||
Total net revenue | $ | 461,554 | $ | 379,269 |
March 31, 2017 | December 31, 2016 | ||||||
Long-lived assets | |||||||
United States | $ | 164,906 | $ | 162,118 | |||
International | 2,605 | 2,675 | |||||
Total long-lived assets | $ | 167,511 | $ | 164,793 |
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Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Supplemental Cash Flow Data: | |||||||
Cash paid for interest | $ | 142 | $ | 142 | |||
Cash paid for income taxes | 334 | 220 | |||||
Supplemental disclosures of non-cash investing and financing activities: | |||||||
Change in purchases of property and equipment in accounts payable and accrued expenses | (468 | ) | (657 | ) | |||
Unpaid offering costs related to initial public offering | — | 124 | |||||
Unpaid business acquisition purchase price | 400 | — |
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March 31, 2017 | |||||||
Carrying Value | Fair Value (Level 2) | ||||||
Convertible senior notes | $ | 345,739 | $ | 456,500 | |||
Total | $ | 345,739 | $ | 456,500 |
March 31, 2017 | December 31, 2016 | ||||||||||||||
Carrying Value | Fair Value (Level 3) | Carrying Value | Fair Value (Level 3) | ||||||||||||
Loans held for sale | $ | 51,883 | $ | 52,319 | $ | 42,144 | $ | 42,633 | |||||||
Total | $ | 51,883 | $ | 52,319 | $ | 42,144 | $ | 42,633 |
March 31, 2017 | December 31, 2016 | ||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||
Money market funds | $ | 337,580 | $ | — | $ | — | $ | 207,168 | $ | — | $ | — | |||||||||||
U.S. agency securities | — | 27,476 | — | — | — | — | |||||||||||||||||
Commercial paper | — | 42,911 | — | — | 7,496 | — | |||||||||||||||||
U.S. government securities | 24,994 | — | — | — | — | — | |||||||||||||||||
Corporate bonds | — | 1,000 | — | — | — | — | |||||||||||||||||
Municipal securities | — | — | — | — | 1,000 | — | |||||||||||||||||
Short-term securities: | |||||||||||||||||||||||
U.S. agency securities | — | 10,015 | — | — | 9,055 | — | |||||||||||||||||
Corporate bonds | — | 35,763 | — | — | 6,980 | — | |||||||||||||||||
Commercial paper | — | 55,352 | — | — | 17,298 | — | |||||||||||||||||
Municipal securities | — | 10,253 | — | — | 8,028 | — | |||||||||||||||||
U.S. government securities | 75,373 | — | — | 18,540 | — | — | |||||||||||||||||
Long-term securities: | |||||||||||||||||||||||
U.S. agency securities | — | 3,601 | — | — | 3,502 | — | |||||||||||||||||
Corporate bonds | — | 25,039 | — | — | 12,914 | — | |||||||||||||||||
Municipal securities | — | 11,141 | — | — | 2,492 | — | |||||||||||||||||
U.S. government securities | 22,930 | — | — | 8,458 | — | — | |||||||||||||||||
Total | $ | 460,877 | $ | 222,551 | $ | — | $ | 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 | $ | 10,023 | $ | 1 | $ | (9 | ) | $ | 10,015 | ||||||
Corporate bonds | 35,779 | 19 | (35 | ) | 35,763 | ||||||||||
Commercial paper | 55,352 | — | — | 55,352 | |||||||||||
Municipal securities | 10,248 | 9 | (4 | ) | 10,253 | ||||||||||
U.S. government securities | 75,374 | 9 | (10 | ) | 75,373 | ||||||||||
Total | $ | 186,776 | $ | 38 | $ | (58 | ) | $ | 186,756 | ||||||
Long-term securities: | |||||||||||||||
U.S. agency securities | $ | 3,601 | $ | 3 | $ | (3 | ) | $ | 3,601 | ||||||
Corporate bonds | 25,024 | 23 | (8 | ) | 25,039 | ||||||||||
Municipal securities | 11,142 | 8 | (9 | ) | 11,141 | ||||||||||
U.S. government securities | 22,905 | 28 | (3 | ) | 22,930 | ||||||||||
Total | $ | 62,672 | $ | 62 | $ | (23 | ) | $ | 62,711 |
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 | $ | 186,776 | $ | 186,756 | |||
Due in one to five years | 62,672 | 62,711 | |||||
Total | $ | 249,448 | $ | 249,467 |
|
March 31, 2017 | December 31, 2016 | ||||||
Leasehold improvements | $ | 72,667 | $ | 73,366 | |||
Computer equipment | 60,141 | 52,915 | |||||
Capitalized software | 26,406 | 24,642 | |||||
Office furniture and equipment | 11,960 | 10,737 | |||||
Construction in process | 480 | — | |||||
Total | 171,654 | 161,660 | |||||
Less: Accumulated depreciation and amortization | (80,641 | ) | (73,332 | ) | |||
Property and equipment, net | $ | 91,013 | $ | 88,328 |
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Balance at March 31, 2017 | |||||||||||
Cost | Accumulated Amortization | Net | |||||||||
Patent | $ | 1,285 | $ | (480 | ) | $ | 805 | ||||
Technology Assets | 29,158 | (16,592 | ) | 12,566 | |||||||
Customer Assets | 8,886 | (3,862 | ) | 5,024 | |||||||
Total | $ | 39,329 | $ | (20,934 | ) | $ | 18,395 |
Balance at December 31, 2016 | |||||||||||
Cost | Accumulated Amortization | Net | |||||||||
Patent | $ | 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 9 months) | $ | 5,481 | |
2018 | 6,037 | ||
2019 | 3,253 | ||
2020 | 1,296 | ||
2021 | 748 | ||
Thereafter | 1,580 | ||
Total | $ | 18,395 |
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March 31, 2017 | December 31, 2016 | ||||||
Inventory, net | $ | 13,951 | $ | 13,724 | |||
Accounts receivable, net | 6,947 | 6,191 | |||||
Prepaid expenses | 9,447 | 7,365 | |||||
Deferred magstripe reader costs | 2,659 | 3,911 | |||||
Tenant improvement reimbursement receivable | 174 | 1,189 | |||||
Merchant cash advance receivable, net | 2,723 | 4,212 | |||||
Deferred hardware costs | 4,597 | 4,546 | |||||
Processing costs receivable | 6,438 | 8,593 | |||||
Other | 7,669 | 10,812 | |||||
Total | $ | 54,605 | $ | 60,543 |
March 31, 2017 | December 31, 2016 | ||||||
Accrued hardware costs | $ | 4,309 | $ | 3,148 | |||
Processing costs payable | 7,592 | 9,655 | |||||
Accrued professional fees | 6,129 | 5,788 | |||||
Accrued payroll | 9,039 | 5,799 | |||||
Accrued marketing | 4,828 | 3,972 | |||||
Other accrued liabilities | 13,578 | 11,181 | |||||
Total | $ | 45,475 | $ | 39,543 |
March 31, 2017 | December 31, 2016 | ||||||
Square Payroll payable | $ | 7,386 | $ | 4,769 | |||
Accrued redemptions | 1,874 | 1,628 | |||||
Current portion of deferred rent | 2,882 | 2,862 | |||||
Deferred revenue | 2,965 | 5,407 | |||||
Other | 7,705 | 7,806 | |||||
Total | $ | 22,812 | $ | 22,472 |
|
March 31, 2017 | December 31, 2016 | ||||||
Deferred rent | $ | 22,444 | $ | 23,119 | |||
Deferred tax liabilities | 476 | 476 | |||||
Statutory liabilities | 33,113 | 29,497 | |||||
Other | 6,512 | 4,653 | |||||
Total | $ | 62,545 | $ | 57,745 |
|
March 31, 2017 | |||
Principal | $ | 440,000 | |
Less: debt discount | (84,950 | ) | |
Less: debt issuance costs | (9,311 | ) | |
Net carrying amount | $ | 345,739 |
March 31, 2017 | |||
Debt discount | $ | 86,203 | |
Less: debt issuance costs | (2,302 | ) | |
Equity component, net | $ | 83,901 |
Three Months Ended | |||
March 31, | |||
2017 | |||
Contractual interest expense based on 0.375% per annum | $ | 113 | |
Amortization of debt discount and issuance costs | 1,390 | ||
Total | $ | 1,503 | |
Effective interest rate of the liability component | 5.34 | % |
|
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Accrued transaction losses, beginning of the period | $ | 20,064 | $ | 17,176 | |||
Provision for transaction losses | 11,558 | 7,182 | |||||
Charge-offs to accrued transaction losses | (11,178 | ) | (8,939 | ) | |||
Accrued transaction losses, end of the period | $ | 20,444 | $ | 15,419 |
|
Total stockholders’ equity | |||
Balance at December 31, 2016 | $ | 576,153 | |
Net loss | (15,090 | ) | |
Exercise of stock options | 39,409 | ||
Vesting of early exercised stock options and other | 314 | ||
Conversion feature of convertible senior notes, due 2022, net of allocated 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 | 747 | ||
Share-based compensation | 32,199 | ||
Balance at March 31, 2017 | $ | 627,933 |
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 | — | — | ||||||||||
Exercised | (7,761,169 | ) | 5.08 | |||||||||
Forfeited | (1,075,984 | ) | $ | 10.93 | ||||||||
Balance at March 31, 2017 | 64,424,409 | 7.96 | 7.04 | 600,185 | ||||||||
Options exercisable as of | ||||||||||||
March 31, 2017 | 61,373,338 | 7.81 | 6.95 | 581,082 |
Number of RSUs | Weighted Average Grant Date Fair Value | |||||
Unvested as of December 31, 2016 | 15,443,391 | $ | 12.09 | |||
Granted | 1,803,112 | 14.46 | ||||
Vested | (1,081,480 | ) | 12.22 | |||
Forfeited | (568,674 | ) | 11.39 | |||
Unvested as of March 31, 2017 | 15,596,349 | $ | 12.38 |
Three Months Ended March 31, | ||
2016 | ||
Dividend yield | — | % |
Risk-free interest rate | 1.39 | % |
Expected volatility | 43 | % |
Expected term (years) | 6.08 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Product development | $ | 19,356 | $ | 21,947 | |||
Sales and marketing | 3,935 | 2,903 | |||||
General and administrative | 8,379 | 6,348 | |||||
Total | $ | 31,670 | $ | 31,198 |
|
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net loss | $ | (15,090 | ) | $ | (96,755 | ) | |
Basic shares: | |||||||
Weighted-average common shares outstanding | 368,571 | 335,177 | |||||
Weighted-average unvested shares | (1,834 | ) | (3,853 | ) | |||
Weighted-average shares used to compute basic net loss per share | 366,737 | 331,324 | |||||
Diluted shares: | |||||||
Weighted-average shares used to compute diluted loss per share | 366,737 | 331,324 | |||||
Net loss per share: | |||||||
Basic | $ | (0.04 | ) | $ | (0.29 | ) | |
Diluted | $ | (0.04 | ) | $ | (0.29 | ) |
Three Months Ended March 31, | |||||
2017 | 2016 | ||||
Stock options and restricted stock units | 80,021 | 109,912 | |||
Common stock warrants | 19,173 | 9,544 | |||
Unvested shares | 1,732 | 3,428 | |||
Employee stock purchase plan | 653 | 635 | |||
Total anti-dilutive securities | 101,579 | 123,519 |
|
Capital | Operating | ||||||
Year: | |||||||
2017 (remaining 9 months) | $ | 1,150 | $ | 12,529 | |||
2018 | 1,495 | 16,528 | |||||
2019 | 1,380 | 15,673 | |||||
2020 | 141 | 15,757 | |||||
2021 | — | 16,172 | |||||
Thereafter | — | 35,943 | |||||
Total | $ | 4,166 | $ | 112,602 | |||
Less amount representing interest | (3 | ) | |||||
Present value of capital lease obligations | 4,163 | ||||||
Less current portion of capital lease obligation | (1,524 | ) | |||||
Non-current portion of capital lease obligation | $ | 2,639 |
|
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Revenue | |||||||
United States | $ | 444,899 | $ | 367,164 | |||
International | 16,655 | 12,105 | |||||
Total net revenue | $ | 461,554 | $ | 379,269 |
March 31, 2017 | December 31, 2016 | ||||||
Long-lived assets | |||||||
United States | $ | 164,906 | $ | 162,118 | |||
International | 2,605 | 2,675 | |||||
Total long-lived assets | $ | 167,511 | $ | 164,793 |
|
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Supplemental Cash Flow Data: | |||||||
Cash paid for interest | $ | 142 | $ | 142 | |||
Cash paid for income taxes | 334 | 220 | |||||
Supplemental disclosures of non-cash investing and financing activities: | |||||||
Change in purchases of property and equipment in accounts payable and accrued expenses | (468 | ) | (657 | ) | |||
Unpaid offering costs related to initial public offering | — | 124 | |||||
Unpaid business acquisition purchase price | 400 | — |
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