|
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• | 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. |
Property and Equipment | Useful Life | |
Capitalized software | 18 months | |
Computer and data center equipment | Three years | |
Furniture and fixtures | Seven years | |
Leasehold improvements | Lesser of estimated useful life or remaining lease term |
|
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | 207,168 | $ | — | $ | — | $ | 337,234 | $ | — | $ | — | |||||||||||
Commercial paper | — | 7,496 | — | — | — | — | |||||||||||||||||
Municipal securities | — | 1,000 | — | — | — | — | |||||||||||||||||
Short-term securities: | |||||||||||||||||||||||
U.S. agency securities | — | 9,055 | — | — | — | — | |||||||||||||||||
Corporate bonds | — | 6,980 | — | — | — | — | |||||||||||||||||
Commercial paper | — | 17,298 | — | — | — | — | |||||||||||||||||
Municipal securities | — | 8,028 | — | ||||||||||||||||||||
U.S. government securities | 18,540 | — | — | — | — | — | |||||||||||||||||
Long-term securities: | |||||||||||||||||||||||
U.S. agency securities | — | 3,502 | — | — | — | — | |||||||||||||||||
Corporate bonds | — | 12,914 | — | — | — | — | |||||||||||||||||
Municipal securities | — | 2,492 | — | — | — | — | |||||||||||||||||
U.S. government securities | 8,458 | — | — | — | — | — | |||||||||||||||||
Total | $ | 234,166 | $ | 68,765 | $ | — | $ | 337,234 | $ | — | $ | — |
December 31, 2016 | |||||||
Carrying Value | Fair Value (Level 3) | ||||||
Loans held for sale | $ | 42,144 | $ | 42,633 | |||
Total | $ | 42,144 | $ | 42,633 |
|
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 | $ | 59,920 | $ | 59,901 | |||
Due in one to five years | 27,424 | 27,366 | |||||
Total | $ | 87,344 | $ | 87,267 |
|
Year Ended December 31, | Year Ended December 31, | ||||||
2016 | 2015 | ||||||
Allowance for uncollectible MCA receivables, beginning of the period | $ | 7,443 | $ | 2,431 | |||
Provision for uncollectible MCA receivables | 1,159 | 6,240 | |||||
MCA receivables charged off | (4,039 | ) | (1,228 | ) | |||
Allowance for uncollectible MCA receivables, end of the period | $ | 4,563 | $ | 7,443 |
|
December 31, 2016 | December 31, 2015 | ||||||
Computer equipment | $ | 52,915 | $ | 43,531 | |||
Office furniture and equipment | 10,737 | 9,339 | |||||
Leasehold improvements | 73,366 | 65,298 | |||||
Capitalized software | 24,642 | 14,533 | |||||
Construction in process | — | 490 | |||||
Total | 161,660 | 133,191 | |||||
Less: Accumulated depreciation and amortization | (73,332 | ) | (45,969 | ) | |||
Property and equipment, net | $ | 88,328 | $ | 87,222 |
|
|
Balance at December 31, 2014 | 40,267 | ||
Acquisitions completed during the year ended December 31, 2015 | $ | 16,432 | |
Balance at December 31, 2015 | $ | 56,699 | |
Acquisitions completed during the year ended December 31, 2016 | $ | 474 | |
Balance at December 31, 2016 | $ | 57,173 |
|
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 |
Balance at December 31, 2015 | |||||||||||
Cost | Accumulated Amortization | Net | |||||||||
Patents | $ | 1,285 | $ | (348 | ) | $ | 937 | ||||
Technology Assets | 28,645 | (6,644 | ) | 22,001 | |||||||
Customer Assets | 6,645 | (2,807 | ) | 3,838 | |||||||
Total | $ | 36,575 | $ | (9,799 | ) | $ | 26,776 |
2017 | $ | 7,380 | ||
2018 | 5,881 | |||
2019 | 3,097 | |||
2020 | 1,140 | |||
2021 | 696 | |||
Thereafter | 1,098 | |||
Total | $ | 19,292 |
|
December 31, 2016 | December 31, 2015 | ||||||
Inventory | $ | 13,724 | $ | 11,864 | |||
Accounts receivable | 6,191 | 4,808 | |||||
Prepaid expenses | 7,365 | 7,101 | |||||
Deferred magstripe reader costs | 3,911 | 4,018 | |||||
Tenant improvement reimbursement receivable | 1,189 | 1,788 | |||||
Deferred hardware costs | 4,546 | 1,709 | |||||
Processing costs receivable | 8,593 | 7,847 | |||||
Other | 10,812 | 2,312 | |||||
Total | $ | 56,331 | $ | 41,447 |
December 31, 2016 | December 31, 2015 | ||||||
Accrued hardware costs | $ | 3,148 | $ | 11,622 | |||
Processing costs payable | 9,655 | 11,417 | |||||
Accrued professional fees | 5,788 | 7,642 | |||||
Accrued payroll | 5,799 | 2,660 | |||||
Accrued marketing | 3,972 | 2,443 | |||||
Other accrued liabilities | 11,181 | 8,617 | |||||
Total | $ | 39,543 | $ | 44,401 |
December 31, 2016 | December 31, 2015 | ||||||
Settlements payable | $ | 51,151 | $ | 13,105 | |||
Employee early exercised stock options | 674 | 2,141 | |||||
Accrued redemptions | 1,628 | 1,066 | |||||
Current portion of deferred rent | 2,862 | 2,393 | |||||
Deferred revenue | 5,407 | 6,623 | |||||
Other | 11,901 | 3,617 | |||||
Total | $ | 73,623 | $ | 28,945 |
December 31, 2016 | December 31, 2015 | ||||||
Deposits | $ | 1,775 | $ | 1,993 | |||
Deferred tax assets | 306 | 188 | |||||
Other | 1,113 | 1,645 | |||||
Total | $ | 3,194 | $ | 3,826 |
December 31, 2016 | December 31, 2015 | ||||||
Deferred rent | $ | 23,119 | $ | 25,543 | |||
Employee early exercised stock options | 66 | 1,128 | |||||
Deferred tax liabilities | 476 | 299 | |||||
Statutory liabilities | 29,497 | 25,492 | |||||
Other | 4,587 | 60 | |||||
Total | $ | 57,745 | $ | 52,522 |
|
December 31, 2016 | December 31, 2015 | ||||||
Inventory | $ | 13,724 | $ | 11,864 | |||
Accounts receivable | 6,191 | 4,808 | |||||
Prepaid expenses | 7,365 | 7,101 | |||||
Deferred magstripe reader costs | 3,911 | 4,018 | |||||
Tenant improvement reimbursement receivable | 1,189 | 1,788 | |||||
Deferred hardware costs | 4,546 | 1,709 | |||||
Processing costs receivable | 8,593 | 7,847 | |||||
Other | 10,812 | 2,312 | |||||
Total | $ | 56,331 | $ | 41,447 |
December 31, 2016 | December 31, 2015 | ||||||
Accrued hardware costs | $ | 3,148 | $ | 11,622 | |||
Processing costs payable | 9,655 | 11,417 | |||||
Accrued professional fees | 5,788 | 7,642 | |||||
Accrued payroll | 5,799 | 2,660 | |||||
Accrued marketing | 3,972 | 2,443 | |||||
Other accrued liabilities | 11,181 | 8,617 | |||||
Total | $ | 39,543 | $ | 44,401 |
December 31, 2016 | December 31, 2015 | ||||||
Settlements payable | $ | 51,151 | $ | 13,105 | |||
Employee early exercised stock options | 674 | 2,141 | |||||
Accrued redemptions | 1,628 | 1,066 | |||||
Current portion of deferred rent | 2,862 | 2,393 | |||||
Deferred revenue | 5,407 | 6,623 | |||||
Other | 11,901 | 3,617 | |||||
Total | $ | 73,623 | $ | 28,945 |
December 31, 2016 | December 31, 2015 | ||||||
Deposits | $ | 1,775 | $ | 1,993 | |||
Deferred tax assets | 306 | 188 | |||||
Other | 1,113 | 1,645 | |||||
Total | $ | 3,194 | $ | 3,826 |
December 31, 2016 | December 31, 2015 | ||||||
Deferred rent | $ | 23,119 | $ | 25,543 | |||
Employee early exercised stock options | 66 | 1,128 | |||||
Deferred tax liabilities | 476 | 299 | |||||
Statutory liabilities | 29,497 | 25,492 | |||||
Other | 4,587 | 60 | |||||
Total | $ | 57,745 | $ | 52,522 |
|
|
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Accrued transaction losses, beginning of the year | $ | 17,176 | $ | 8,452 | $ | 7,488 | |||||
Provision for transaction losses | 50,819 | 43,379 | 18,478 | ||||||||
Charge-offs and recoveries to accrued transaction losses | (47,931 | ) | (34,655 | ) | (17,514 | ) | |||||
Accrued transaction losses, end of the year | $ | 20,064 | $ | 17,176 | $ | 8,452 |
|
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Domestic | $ | (145,499 | ) | $ | (157,229 | ) | $ | (139,675 | ) | ||
Foreign | (24,174 | ) | (18,842 | ) | (12,978 | ) | |||||
Loss before income taxes | $ | (169,673 | ) | $ | (176,071 | ) | $ | (152,653 | ) |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Current: | |||||||||||
Federal | $ | 63 | $ | 1,662 | $ | 2,746 | |||||
State | 527 | 836 | 531 | ||||||||
Foreign | 1,269 | 1,222 | 827 | ||||||||
Total current provision for income taxes | 1,859 | 3,720 | 4,104 | ||||||||
Deferred: | |||||||||||
Federal | 173 | 67 | (2,503 | ) | |||||||
State | 18 | 11 | (161 | ) | |||||||
Foreign | (133 | ) | (52 | ) | — | ||||||
Total deferred provision for income taxes | 58 | 26 | (2,664 | ) | |||||||
Total provision for income taxes | $ | 1,917 | $ | 3,746 | $ | 1,440 |
Balance at December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Tax at federal statutory rate | 34.0 | % | 34.0 | % | 34.0 | % | ||
State taxes, net of federal benefit | (0.1 | ) | (0.2 | ) | (0.1 | ) | ||
Foreign rate differential | (2.4 | ) | (1.8 | ) | (1.5 | ) | ||
Nondeductible expenses | (3.3 | ) | (3.3 | ) | (1.8 | ) | ||
Credits | 8.5 | 8.2 | 2.7 | |||||
Other items | (0.4 | ) | (0.4 | ) | 0.7 | |||
Change in valuation allowance | (37.4 | ) | (38.6 | ) | (35.0 | ) | ||
Total | (1.1 | )% | (2.1 | )% | (1.0 | )% |
Balance at December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Deferred tax assets: | |||||||||||
Capitalized costs | $ | 61,897 | $ | 67,051 | $ | 28,102 | |||||
Accrued expenses | 29,421 | 27,964 | 19,714 | ||||||||
Net operating loss carryforwards | 65,507 | 36,633 | 54,528 | ||||||||
Tax credit carryforwards | 38,927 | 25,349 | 11,662 | ||||||||
Property, equipment and intangible assets | 5,721 | — | — | ||||||||
Share-based compensation | 52,091 | 36,689 | 13,153 | ||||||||
Other | 1,640 | 1,469 | 542 | ||||||||
Total deferred tax assets | 255,204 | 195,155 | 127,701 | ||||||||
Valuation allowance | (254,898 | ) | (195,103 | ) | (125,368 | ) | |||||
Total deferred tax assets, net of valuation allowance | 306 | 52 | 2,333 | ||||||||
Deferred tax liabilities: | |||||||||||
Property, equipment and intangible assets | (476 | ) | (163 | ) | (2,333 | ) | |||||
Total deferred tax liabilities | (476 | ) | (163 | ) | (2,333 | ) | |||||
Net deferred tax liabilities | $ | (170 | ) | $ | (111 | ) | $ | — |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Balance at the beginning of the year | $ | 90,372 | $ | 78,031 | $ | 14,152 | |||||
Gross increases and decreases related to prior period tax positions | 5,190 | — | 26,690 | ||||||||
Gross increases and decreases related to current period tax positions | (3,428 | ) | 12,341 | 37,189 | |||||||
Balance at the end of the year | $ | 92,134 | $ | 90,372 | $ | 78,031 |
|
Number of stock options outstanding | Weighted average exercise price | Weighted average remaining contractual term (in years) | Aggregate intrinsic value | |||||||||
Balance at December 31, 2015 | 107,515,554 | $ | 6.99 | 7.87 | $ | 656,194 | ||||||
Granted | 1,767,320 | 13.49 | ||||||||||
Exercised | (24,328,414 | ) | 3.39 | |||||||||
Forfeited and canceled | (11,692,898 | ) | 10.98 | |||||||||
Balance at December 31, 2016 | 73,261,562 | $ | 7.70 | 7.28 | $ | 443,711 | ||||||
Options vested and expected to vest at | ||||||||||||
December 31, 2016 | 69,467,073 | $ | 7.51 | 6.95 | $ | 433,756 | ||||||
Options exercisable at | ||||||||||||
December 31, 2016 | 69,936,089 | $ | 7.54 | 7.19 | $ | 434,962 |
Number of RSUs | Weighted average grant date fair value | |||||
Unvested at December 31, 2015 | 3,632,765 | $ | 13.14 | |||
Granted | 17,060,055 | 12.08 | ||||
Vested | (3,392,726 | ) | 12.58 | |||
Forfeited | (1,856,703 | ) | 13.15 | |||
Unvested at December 31, 2016 | 15,443,391 | $ | 12.09 |
Year Ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Fair value of common stock | $8.37 - $15.48 | $10.06 - $15.39 | $7.25 - $10.06 | |||||
Dividend yield | — | % | — | % | — | % | ||
Risk-free interest rate | 1.54 | % | 1.73 | % | 1.85 | % | ||
Expected volatility | 42.74 | % | 47.68 | % | 46.95 | % | ||
Expected term (years) | 6.08 | 6.02 | 6.06 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Product development | $ | 91,404 | $ | 54,738 | $ | 24,758 | |||||
Sales and marketing | 14,122 | 7,360 | 3,738 | ||||||||
General and administrative | 33,260 | 20,194 | 7,604 | ||||||||
Total | $ | 138,786 | $ | 82,292 | $ | 36,100 |
|
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net loss | $ | (171,590 | ) | $ | (179,817 | ) | $ | (154,093 | ) | ||
Deemed dividend on Series E preferred stock | — | (32,200 | ) | — | |||||||
Net loss attributable to common stockholders | $ | (171,590 | ) | $ | (212,017 | ) | $ | (154,093 | ) | ||
Basic shares: | |||||||||||
Weighted-average common shares outstanding | 344,393 | 175,139 | 148,876 | ||||||||
Weighted-average unvested shares | (2,838 | ) | (4,641 | ) | (6,834 | ) | |||||
Weighted-average shares used to compute basic net loss per share | 341,555 | 170,498 | 142,042 | ||||||||
Diluted shares: | |||||||||||
Weighted-average shares used to compute diluted net loss per share | 341,555 | 170,498 | 142,042 | ||||||||
Loss per share attributable to common stockholders: | |||||||||||
Basic | $ | (0.50 | ) | $ | (1.24 | ) | $ | (1.08 | ) | ||
Diluted | $ | (0.50 | ) | $ | (1.24 | ) | $ | (1.08 | ) |
Year Ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Stock options and restricted stock units | 88,705 | 111,148 | 87,471 | |||||
Common stock warrants | 9,457 | 9,544 | 15,762 | |||||
Preferred stock warrants | — | — | 87 | |||||
Convertible preferred stock | — | — | 135,253 | |||||
Unvested shares | 1,892 | 3,420 | 6,443 | |||||
Employee stock purchase plan | 216 | 172 | — | |||||
Total anti-dilutive securities | 100,270 | 124,284 | 245,016 |
|
Capital | Operating | ||||||
Year: | |||||||
2017 | $ | 694 | $ | 16,639 | |||
2018 | 651 | 16,519 | |||||
2019 | 536 | 15,673 | |||||
2020 | 1 | 15,757 | |||||
2021 | — | 16,172 | |||||
Thereafter | — | 35,943 | |||||
Total | $ | 1,882 | $ | 116,703 | |||
Less amount representing interest | (4 | ) | |||||
Present value of capital lease obligations | 1,878 | ||||||
Less current portion of capital lease obligation | (691 | ) | |||||
Non-current portion of capital lease obligation | $ | 1,187 |
|
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Revenue | |||||||||||
United States | $ | 1,643,852 | $ | 1,224,566 | $ | 825,578 | |||||
International | 64,869 | 42,552 | 24,614 | ||||||||
Total net revenue | $ | 1,708,721 | $ | 1,267,118 | $ | 850,192 |
December 31, | |||||||
2016 | 2015 | ||||||
Long-lived assets | |||||||
United States | $ | 162,118 | $ | 168,583 | |||
International | 2,675 | 2,114 | |||||
Total long-lived assets | $ | 164,793 | $ | 170,697 |
|
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Supplemental Cash Flow Data: | |||||||||||
Cash paid for interest | $ | 570 | $ | 981 | $ | 940 | |||||
Cash paid for income taxes | 395 | 1,916 | 2,442 | ||||||||
Supplemental disclosures of non-cash investing and financing activities: | |||||||||||
Purchases of property and equipment in accounts payable and accrued expenses | 2,554 | 5,593 | — | ||||||||
Unpaid business acquisition purchase price | 240 | — | — | ||||||||
Conversion of Series A, B, C, D & E preferred stock upon initial public offering to common stock | — | 544,897 | — | ||||||||
Unpaid offering costs related to initial public offering | — | 5,530 | — | ||||||||
Deemed dividend on Series E preferred stock | — | 32,200 | — | ||||||||
Fair value of shares issued related to acquisitions | — | 35,776 | 59,576 |
|
|
• | 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. |
Property and Equipment | Useful Life | |
Capitalized software | 18 months | |
Computer and data center equipment | Three years | |
Furniture and fixtures | Seven years | |
Leasehold improvements | Lesser of estimated useful life or remaining lease term |
|
Property and Equipment | Useful Life | |
Capitalized software | 18 months | |
Computer and data center equipment | Three years | |
Furniture and fixtures | Seven years | |
Leasehold improvements | Lesser of estimated useful life or remaining lease term |
December 31, 2016 | December 31, 2015 | ||||||
Computer equipment | $ | 52,915 | $ | 43,531 | |||
Office furniture and equipment | 10,737 | 9,339 | |||||
Leasehold improvements | 73,366 | 65,298 | |||||
Capitalized software | 24,642 | 14,533 | |||||
Construction in process | — | 490 | |||||
Total | 161,660 | 133,191 | |||||
Less: Accumulated depreciation and amortization | (73,332 | ) | (45,969 | ) | |||
Property and equipment, net | $ | 88,328 | $ | 87,222 |
|
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Cash and cash equivalents: | |||||||||||||||||||||||
Money market funds | $ | 207,168 | $ | — | $ | — | $ | 337,234 | $ | — | $ | — | |||||||||||
Commercial paper | — | 7,496 | — | — | — | — | |||||||||||||||||
Municipal securities | — | 1,000 | — | — | — | — | |||||||||||||||||
Short-term securities: | |||||||||||||||||||||||
U.S. agency securities | — | 9,055 | — | — | — | — | |||||||||||||||||
Corporate bonds | — | 6,980 | — | — | — | — | |||||||||||||||||
Commercial paper | — | 17,298 | — | — | — | — | |||||||||||||||||
Municipal securities | — | 8,028 | — | ||||||||||||||||||||
U.S. government securities | 18,540 | — | — | — | — | — | |||||||||||||||||
Long-term securities: | |||||||||||||||||||||||
U.S. agency securities | — | 3,502 | — | — | — | — | |||||||||||||||||
Corporate bonds | — | 12,914 | — | — | — | — | |||||||||||||||||
Municipal securities | — | 2,492 | — | — | — | — | |||||||||||||||||
U.S. government securities | 8,458 | — | — | — | — | — | |||||||||||||||||
Total | $ | 234,166 | $ | 68,765 | $ | — | $ | 337,234 | $ | — | $ | — |
December 31, 2016 | |||||||
Carrying Value | Fair Value (Level 3) | ||||||
Loans held for sale | $ | 42,144 | $ | 42,633 | |||
Total | $ | 42,144 | $ | 42,633 |
|
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 | $ | 59,920 | $ | 59,901 | |||
Due in one to five years | 27,424 | 27,366 | |||||
Total | $ | 87,344 | $ | 87,267 |
|
Year Ended December 31, | Year Ended December 31, | ||||||
2016 | 2015 | ||||||
Allowance for uncollectible MCA receivables, beginning of the period | $ | 7,443 | $ | 2,431 | |||
Provision for uncollectible MCA receivables | 1,159 | 6,240 | |||||
MCA receivables charged off | (4,039 | ) | (1,228 | ) | |||
Allowance for uncollectible MCA receivables, end of the period | $ | 4,563 | $ | 7,443 |
|
Property and Equipment | Useful Life | |
Capitalized software | 18 months | |
Computer and data center equipment | Three years | |
Furniture and fixtures | Seven years | |
Leasehold improvements | Lesser of estimated useful life or remaining lease term |
December 31, 2016 | December 31, 2015 | ||||||
Computer equipment | $ | 52,915 | $ | 43,531 | |||
Office furniture and equipment | 10,737 | 9,339 | |||||
Leasehold improvements | 73,366 | 65,298 | |||||
Capitalized software | 24,642 | 14,533 | |||||
Construction in process | — | 490 | |||||
Total | 161,660 | 133,191 | |||||
Less: Accumulated depreciation and amortization | (73,332 | ) | (45,969 | ) | |||
Property and equipment, net | $ | 88,328 | $ | 87,222 |
|
Balance at December 31, 2014 | 40,267 | ||
Acquisitions completed during the year ended December 31, 2015 | $ | 16,432 | |
Balance at December 31, 2015 | $ | 56,699 | |
Acquisitions completed during the year ended December 31, 2016 | $ | 474 | |
Balance at December 31, 2016 | $ | 57,173 |
|
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 |
Balance at December 31, 2015 | |||||||||||
Cost | Accumulated Amortization | Net | |||||||||
Patents | $ | 1,285 | $ | (348 | ) | $ | 937 | ||||
Technology Assets | 28,645 | (6,644 | ) | 22,001 | |||||||
Customer Assets | 6,645 | (2,807 | ) | 3,838 | |||||||
Total | $ | 36,575 | $ | (9,799 | ) | $ | 26,776 |
2017 | $ | 7,380 | ||
2018 | 5,881 | |||
2019 | 3,097 | |||
2020 | 1,140 | |||
2021 | 696 | |||
Thereafter | 1,098 | |||
Total | $ | 19,292 |
|
December 31, 2016 | December 31, 2015 | ||||||
Inventory | $ | 13,724 | $ | 11,864 | |||
Accounts receivable | 6,191 | 4,808 | |||||
Prepaid expenses | 7,365 | 7,101 | |||||
Deferred magstripe reader costs | 3,911 | 4,018 | |||||
Tenant improvement reimbursement receivable | 1,189 | 1,788 | |||||
Deferred hardware costs | 4,546 | 1,709 | |||||
Processing costs receivable | 8,593 | 7,847 | |||||
Other | 10,812 | 2,312 | |||||
Total | $ | 56,331 | $ | 41,447 |
December 31, 2016 | December 31, 2015 | ||||||
Accrued hardware costs | $ | 3,148 | $ | 11,622 | |||
Processing costs payable | 9,655 | 11,417 | |||||
Accrued professional fees | 5,788 | 7,642 | |||||
Accrued payroll | 5,799 | 2,660 | |||||
Accrued marketing | 3,972 | 2,443 | |||||
Other accrued liabilities | 11,181 | 8,617 | |||||
Total | $ | 39,543 | $ | 44,401 |
December 31, 2016 | December 31, 2015 | ||||||
Settlements payable | $ | 51,151 | $ | 13,105 | |||
Employee early exercised stock options | 674 | 2,141 | |||||
Accrued redemptions | 1,628 | 1,066 | |||||
Current portion of deferred rent | 2,862 | 2,393 | |||||
Deferred revenue | 5,407 | 6,623 | |||||
Other | 11,901 | 3,617 | |||||
Total | $ | 73,623 | $ | 28,945 |
|
December 31, 2016 | December 31, 2015 | ||||||
Deposits | $ | 1,775 | $ | 1,993 | |||
Deferred tax assets | 306 | 188 | |||||
Other | 1,113 | 1,645 | |||||
Total | $ | 3,194 | $ | 3,826 |
December 31, 2016 | December 31, 2015 | ||||||
Deferred rent | $ | 23,119 | $ | 25,543 | |||
Employee early exercised stock options | 66 | 1,128 | |||||
Deferred tax liabilities | 476 | 299 | |||||
Statutory liabilities | 29,497 | 25,492 | |||||
Other | 4,587 | 60 | |||||
Total | $ | 57,745 | $ | 52,522 |
|
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Accrued transaction losses, beginning of the year | $ | 17,176 | $ | 8,452 | $ | 7,488 | |||||
Provision for transaction losses | 50,819 | 43,379 | 18,478 | ||||||||
Charge-offs and recoveries to accrued transaction losses | (47,931 | ) | (34,655 | ) | (17,514 | ) | |||||
Accrued transaction losses, end of the year | $ | 20,064 | $ | 17,176 | $ | 8,452 |
|
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Domestic | $ | (145,499 | ) | $ | (157,229 | ) | $ | (139,675 | ) | ||
Foreign | (24,174 | ) | (18,842 | ) | (12,978 | ) | |||||
Loss before income taxes | $ | (169,673 | ) | $ | (176,071 | ) | $ | (152,653 | ) |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Current: | |||||||||||
Federal | $ | 63 | $ | 1,662 | $ | 2,746 | |||||
State | 527 | 836 | 531 | ||||||||
Foreign | 1,269 | 1,222 | 827 | ||||||||
Total current provision for income taxes | 1,859 | 3,720 | 4,104 | ||||||||
Deferred: | |||||||||||
Federal | 173 | 67 | (2,503 | ) | |||||||
State | 18 | 11 | (161 | ) | |||||||
Foreign | (133 | ) | (52 | ) | — | ||||||
Total deferred provision for income taxes | 58 | 26 | (2,664 | ) | |||||||
Total provision for income taxes | $ | 1,917 | $ | 3,746 | $ | 1,440 |
Balance at December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Tax at federal statutory rate | 34.0 | % | 34.0 | % | 34.0 | % | ||
State taxes, net of federal benefit | (0.1 | ) | (0.2 | ) | (0.1 | ) | ||
Foreign rate differential | (2.4 | ) | (1.8 | ) | (1.5 | ) | ||
Nondeductible expenses | (3.3 | ) | (3.3 | ) | (1.8 | ) | ||
Credits | 8.5 | 8.2 | 2.7 | |||||
Other items | (0.4 | ) | (0.4 | ) | 0.7 | |||
Change in valuation allowance | (37.4 | ) | (38.6 | ) | (35.0 | ) | ||
Total | (1.1 | )% | (2.1 | )% | (1.0 | )% |
Balance at December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Deferred tax assets: | |||||||||||
Capitalized costs | $ | 61,897 | $ | 67,051 | $ | 28,102 | |||||
Accrued expenses | 29,421 | 27,964 | 19,714 | ||||||||
Net operating loss carryforwards | 65,507 | 36,633 | 54,528 | ||||||||
Tax credit carryforwards | 38,927 | 25,349 | 11,662 | ||||||||
Property, equipment and intangible assets | 5,721 | — | — | ||||||||
Share-based compensation | 52,091 | 36,689 | 13,153 | ||||||||
Other | 1,640 | 1,469 | 542 | ||||||||
Total deferred tax assets | 255,204 | 195,155 | 127,701 | ||||||||
Valuation allowance | (254,898 | ) | (195,103 | ) | (125,368 | ) | |||||
Total deferred tax assets, net of valuation allowance | 306 | 52 | 2,333 | ||||||||
Deferred tax liabilities: | |||||||||||
Property, equipment and intangible assets | (476 | ) | (163 | ) | (2,333 | ) | |||||
Total deferred tax liabilities | (476 | ) | (163 | ) | (2,333 | ) | |||||
Net deferred tax liabilities | $ | (170 | ) | $ | (111 | ) | $ | — |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Balance at the beginning of the year | $ | 90,372 | $ | 78,031 | $ | 14,152 | |||||
Gross increases and decreases related to prior period tax positions | 5,190 | — | 26,690 | ||||||||
Gross increases and decreases related to current period tax positions | (3,428 | ) | 12,341 | 37,189 | |||||||
Balance at the end of the year | $ | 92,134 | $ | 90,372 | $ | 78,031 |
|
Number of stock options outstanding | Weighted average exercise price | Weighted average remaining contractual term (in years) | Aggregate intrinsic value | |||||||||
Balance at December 31, 2015 | 107,515,554 | $ | 6.99 | 7.87 | $ | 656,194 | ||||||
Granted | 1,767,320 | 13.49 | ||||||||||
Exercised | (24,328,414 | ) | 3.39 | |||||||||
Forfeited and canceled | (11,692,898 | ) | 10.98 | |||||||||
Balance at December 31, 2016 | 73,261,562 | $ | 7.70 | 7.28 | $ | 443,711 | ||||||
Options vested and expected to vest at | ||||||||||||
December 31, 2016 | 69,467,073 | $ | 7.51 | 6.95 | $ | 433,756 | ||||||
Options exercisable at | ||||||||||||
December 31, 2016 | 69,936,089 | $ | 7.54 | 7.19 | $ | 434,962 |
Number of RSUs | Weighted average grant date fair value | |||||
Unvested at December 31, 2015 | 3,632,765 | $ | 13.14 | |||
Granted | 17,060,055 | 12.08 | ||||
Vested | (3,392,726 | ) | 12.58 | |||
Forfeited | (1,856,703 | ) | 13.15 | |||
Unvested at December 31, 2016 | 15,443,391 | $ | 12.09 |
Year Ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Fair value of common stock | $8.37 - $15.48 | $10.06 - $15.39 | $7.25 - $10.06 | |||||
Dividend yield | — | % | — | % | — | % | ||
Risk-free interest rate | 1.54 | % | 1.73 | % | 1.85 | % | ||
Expected volatility | 42.74 | % | 47.68 | % | 46.95 | % | ||
Expected term (years) | 6.08 | 6.02 | 6.06 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Product development | $ | 91,404 | $ | 54,738 | $ | 24,758 | |||||
Sales and marketing | 14,122 | 7,360 | 3,738 | ||||||||
General and administrative | 33,260 | 20,194 | 7,604 | ||||||||
Total | $ | 138,786 | $ | 82,292 | $ | 36,100 |
|
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net loss | $ | (171,590 | ) | $ | (179,817 | ) | $ | (154,093 | ) | ||
Deemed dividend on Series E preferred stock | — | (32,200 | ) | — | |||||||
Net loss attributable to common stockholders | $ | (171,590 | ) | $ | (212,017 | ) | $ | (154,093 | ) | ||
Basic shares: | |||||||||||
Weighted-average common shares outstanding | 344,393 | 175,139 | 148,876 | ||||||||
Weighted-average unvested shares | (2,838 | ) | (4,641 | ) | (6,834 | ) | |||||
Weighted-average shares used to compute basic net loss per share | 341,555 | 170,498 | 142,042 | ||||||||
Diluted shares: | |||||||||||
Weighted-average shares used to compute diluted net loss per share | 341,555 | 170,498 | 142,042 | ||||||||
Loss per share attributable to common stockholders: | |||||||||||
Basic | $ | (0.50 | ) | $ | (1.24 | ) | $ | (1.08 | ) | ||
Diluted | $ | (0.50 | ) | $ | (1.24 | ) | $ | (1.08 | ) |
Year Ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
Stock options and restricted stock units | 88,705 | 111,148 | 87,471 | |||||
Common stock warrants | 9,457 | 9,544 | 15,762 | |||||
Preferred stock warrants | — | — | 87 | |||||
Convertible preferred stock | — | — | 135,253 | |||||
Unvested shares | 1,892 | 3,420 | 6,443 | |||||
Employee stock purchase plan | 216 | 172 | — | |||||
Total anti-dilutive securities | 100,270 | 124,284 | 245,016 |
|
Capital | Operating | ||||||
Year: | |||||||
2017 | $ | 694 | $ | 16,639 | |||
2018 | 651 | 16,519 | |||||
2019 | 536 | 15,673 | |||||
2020 | 1 | 15,757 | |||||
2021 | — | 16,172 | |||||
Thereafter | — | 35,943 | |||||
Total | $ | 1,882 | $ | 116,703 | |||
Less amount representing interest | (4 | ) | |||||
Present value of capital lease obligations | 1,878 | ||||||
Less current portion of capital lease obligation | (691 | ) | |||||
Non-current portion of capital lease obligation | $ | 1,187 |
|
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Revenue | |||||||||||
United States | $ | 1,643,852 | $ | 1,224,566 | $ | 825,578 | |||||
International | 64,869 | 42,552 | 24,614 | ||||||||
Total net revenue | $ | 1,708,721 | $ | 1,267,118 | $ | 850,192 |
December 31, | |||||||
2016 | 2015 | ||||||
Long-lived assets | |||||||
United States | $ | 162,118 | $ | 168,583 | |||
International | 2,675 | 2,114 | |||||
Total long-lived assets | $ | 164,793 | $ | 170,697 |
|
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Supplemental Cash Flow Data: | |||||||||||
Cash paid for interest | $ | 570 | $ | 981 | $ | 940 | |||||
Cash paid for income taxes | 395 | 1,916 | 2,442 | ||||||||
Supplemental disclosures of non-cash investing and financing activities: | |||||||||||
Purchases of property and equipment in accounts payable and accrued expenses | 2,554 | 5,593 | — | ||||||||
Unpaid business acquisition purchase price | 240 | — | — | ||||||||
Conversion of Series A, B, C, D & E preferred stock upon initial public offering to common stock | — | 544,897 | — | ||||||||
Unpaid offering costs related to initial public offering | — | 5,530 | — | ||||||||
Deemed dividend on Series E preferred stock | — | 32,200 | — | ||||||||
Fair value of shares issued related to acquisitions | — | 35,776 | 59,576 |
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