SQUARE, INC., 10-Q filed on 5/6/2020
Quarterly Report
v3.20.1
Cover Page - shares
3 Months Ended
Mar. 31, 2020
May 01, 2020
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2020  
Document Transition Report false  
Entity File Number 001-37622  
Entity Registrant Name Square, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 80-0429876  
Entity Address, Address Line One 1455 Market Street  
Entity Address, Address Line Two Suite 600  
Entity Address, City or Town San Francisco  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 94103  
City Area Code 415  
Local Phone Number 375-3176  
Title of 12(b) Security Class A common stock, $0.0000001 par value per share  
Trading Symbol SQ  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Class of Stock [Line Items]    
Entity Central Index Key 0001512673  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q1  
Amendment Flag false  
Class A    
Class of Stock [Line Items]    
Entity Common Stock, Shares Outstanding (in shares)   362,988,307
Class B    
Class of Stock [Line Items]    
Entity Common Stock, Shares Outstanding (in shares)   76,362,944
v3.20.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Current assets:    
Cash and cash equivalents $ 1,962,316 $ 1,047,118
Investments in short-term debt securities 521,840 492,456
Settlements receivable 521,629 588,692
Customer funds 944,811 676,292
Loans held for sale 160,709 164,834
Other current assets 278,670 250,409
Total current assets 4,389,975 3,219,801
Property and equipment, net 150,659 149,194
Goodwill 288,533 266,345
Acquired intangible assets, net 81,936 69,079
Investments in long-term debt securities 529,460 537,303
Operating lease right-of-use assets 413,458 113,148
Other non-current assets 149,852 196,388
Total assets 6,003,873 4,551,258
Current liabilities:    
Customers payable 1,485,439 1,273,135
Settlements payable 89,150 95,834
Accrued expenses and other current liabilities 392,734 297,841
Operating lease liabilities, current 37,335 27,275
Total current liabilities 2,004,658 1,694,085
Long-term debt 1,760,847 938,832
Operating lease liabilities, non-current 349,562 108,830
Other non-current liabilities 80,861 94,461
Total liabilities 4,195,928 2,836,208
Commitments and contingencies (Note 17)
Stockholders’ equity:    
Preferred stock, $0.0000001 par value: 100,000,000 shares authorized at March 31, 2020 and December 31, 2019. None issued and outstanding at March 31, 2020 and December 31, 2019. 0 0
Additional paid-in capital 2,427,596 2,223,749
Accumulated other comprehensive income (loss) (3,432) 1,629
Accumulated deficit (616,219) (510,328)
Total stockholders’ equity 1,807,945 1,715,050
Total liabilities and stockholders’ equity 6,003,873 4,551,258
Class A    
Stockholders’ equity:    
Common stock 0 0
Class B    
Stockholders’ equity:    
Common stock $ 0 $ 0
v3.20.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares
Mar. 31, 2020
Dec. 31, 2019
Class of Stock [Line Items]    
Preferred stock, par value (in USD per share) $ 0.0000001 $ 0.0000001
Preferred stock, shares authorized (in shares) 100,000,000 100,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Class A    
Class of Stock [Line Items]    
Common stock, par value (in USD per share) $ 0.0000001 $ 0.0000001
Common stock, shares authorized (in shares) 1,000,000,000 1,000,000,000
Common stock, shares issued (in shares) 359,142,301 352,386,562
Common stock, shares outstanding (in shares) 359,142,301 352,386,562
Class B    
Class of Stock [Line Items]    
Common stock, par value (in USD per share) $ 0.0000001 $ 0.0000001
Common stock, shares authorized (in shares) 500,000,000 500,000,000
Common stock, shares issued (in shares) 79,621,335 80,410,158
Common stock, shares outstanding (in shares) 79,621,335 80,410,158
v3.20.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Revenue:    
Revenue $ 1,381,109 $ 959,359
Cost of revenue:    
Total cost of revenue 842,608 562,605
Gross profit 538,501 396,754
Operating expenses:    
Product development 194,986 154,350
Sales and marketing 194,535 133,713
General and administrative 129,495 101,598
Transaction and loan losses 108,883 27,841
Amortization of acquired customer assets 4,152 3,487
Total operating expenses 628,789 418,796
Operating loss (90,288) (22,042)
Interest expense, net 9,206 4,681
Other expense, net 5,862 11,299
Loss before income tax (105,356) (38,022)
Provision for income taxes 535 129
Net loss $ (105,891) $ (38,151)
Net loss per share    
Basic (in USD per share) $ (0.24) $ (0.09)
Diluted (in USD per share) $ (0.24) $ (0.09)
Weighted-average shares used to compute net loss per share    
Basic (in shares) 434,940 419,289
Diluted (in shares) 434,940 419,289
Technology assets    
Cost of revenue:    
Amortization of acquired technology $ 2,320 $ 1,376
Customer assets    
Operating expenses:    
Amortization of acquired customer assets 890 1,294
Transaction-based revenue    
Revenue:    
Revenue 758,101 656,762
Cost of revenue:    
Cost of revenue 465,779 409,069
Subscription and services-based revenue    
Revenue:    
Revenue 255,883 190,307
Revenue 296,235 218,857
Cost of revenue:    
Cost of revenue 40,711 60,523
Hardware revenue    
Revenue:    
Revenue 20,675 18,212
Cost of revenue:    
Cost of revenue 34,372 26,941
Bitcoin revenue    
Revenue:    
Revenue 306,098 65,528
Cost of revenue:    
Cost of revenue $ 299,426 $ 64,696
v3.20.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Statement of Comprehensive Income [Abstract]    
Net loss $ (105,891) $ (38,151)
Net foreign currency translation adjustments (8,388) 266
Net unrealized gain on revaluation of intercompany loans 0 75
Net unrealized gain on marketable debt securities 3,327 2,288
Total comprehensive loss $ (110,952) $ (35,522)
v3.20.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Cash flows from operating activities:    
Net loss $ (105,891) $ (38,151)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation and amortization 20,061 18,971
Non-cash interest and other 12,411 8,224
Loss on extinguishment of long-term debt 990 0
Share-based compensation 77,303 61,088
Loss on revaluation of equity investment 0 14,087
Non-cash lease expense 15,125 6,690
Recovery of common stock in connection with indemnification settlement agreement 0 (789)
Transaction and loan losses 108,883 27,841
Change in deferred income taxes (984) (754)
Changes in operating assets and liabilities:    
Settlements receivable 60,248 (1,027,472)
Customer funds (210,201) (109,439)
Purchase of loans held for sale (573,502) (507,755)
Sales and principal payments of loans held for sale 555,584 467,518
Customers payable 212,929 912,749
Settlements payable (6,684) 211,984
Charge-offs to accrued transaction losses (17,413) (17,443)
Other assets and liabilities (27,563) 5,095
Net cash provided by operating activities 121,296 32,444
Cash flows from investing activities:    
Purchase of marketable debt securities (363,874) (193,673)
Proceeds from maturities of marketable debt securities 98,146 111,505
Proceeds from sale of marketable debt securities 247,027 44,810
Purchase of marketable debt securities from customer funds (144,494) (34,613)
Proceeds from maturities of marketable debt securities from customer funds 65,000 33,000
Proceeds from sale of marketable debt securities from customer funds 22,457 0
Purchase of property and equipment (26,137) (18,168)
Payments for other investments 0 (2,000)
Business combinations, net of cash acquired (12,742) (11,248)
Net cash used in investing activities (114,617) (70,387)
Cash flows from financing activities:    
Proceeds from issuance of convertible senior notes, net 986,241 0
Purchase of convertible senior note hedges (149,200) 0
Proceeds from issuance of warrants 99,500 0
Payments for tax withholding related to vesting of restricted stock units (48,772) (50,801)
Proceeds from the exercise of stock options, net 31,406 25,328
Other financing activities (1,055) (1,379)
Net cash provided by (used in) financing activities 918,120 (26,852)
Effect of foreign exchange rate on cash and cash equivalents (13,588) 1,277
Net increase (decrease) in cash, cash equivalents, and restricted cash 911,211 (63,518)
Cash, cash equivalents, and restricted cash, beginning of period 1,098,706 632,847
Cash, cash equivalents, and restricted cash, end of period $ 2,009,917 $ 569,329
v3.20.1
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)
$ in Thousands
Total
Class A and B common stock
Additional paid-in capital
Accumulated other comprehensive loss
Accumulated deficit
Beginning balance (in shares) at Dec. 31, 2018   417,048,006      
Beginning balance at Dec. 31, 2018 $ 1,120,501 $ 0 $ 2,012,328 $ (6,053) $ (885,774)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net loss (38,151)       (38,151)
Shares issued in connection with employee stock plans (in shares)   5,582,633      
Shares issued in connection with employee stock plans 25,364   25,364    
Change in other comprehensive loss 2,629     2,629  
Share-based compensation 62,835   62,835    
Tax withholding related to vesting of restricted stock units (in shares)   (741,324)      
Tax withholding related to vesting of restricted stock units (50,801)   (50,801)    
Issuance of common stock in conjunction with the conversion of senior notes, due 2022 (in shares)   43      
Issuance of common stock in conjunction with the conversion of senior notes, due 2022 1   1    
Exercise of bond hedges in conjunction with the conversion of senior notes, due 2022 (in shares)   (250,614)      
Recovery of common stock in connection with indemnification settlement agreement (in shares)   (14,798)      
Recovery of common stock in connection with indemnification settlement agreement (789)   (789)    
Ending balance (in shares) at Mar. 31, 2019   421,623,946      
Ending balance at Mar. 31, 2019 1,121,589 $ 0 2,048,938 (3,424) (923,925)
Beginning balance (in shares) at Dec. 31, 2019   432,796,720      
Beginning balance at Dec. 31, 2019 1,715,050 $ 0 2,223,749 1,629 (510,328)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Net loss (105,891)       (105,891)
Shares issued in connection with employee stock plans (in shares)   5,222,525      
Shares issued in connection with employee stock plans 31,406   31,406    
Issuance of common stock in connection with business combination (in shares)   357,017      
Issuance of common stock in connection with business combination 14,999   14,999    
Change in other comprehensive loss (5,061)     (5,061)  
Share-based compensation 79,562   79,562    
Tax withholding related to vesting of restricted stock units (in shares)   (722,606)      
Tax withholding related to vesting of restricted stock units (48,772)   (48,772)    
Conversion feature of convertible senior notes, due 2025, net of allocated costs 152,258   152,258    
Purchase of bond hedges in conjunction with issuance of convertible senior notes, due 2025 (149,200)   (149,200)    
Sale of warrants in conjunction with issuance of convertible senior notes, due 2025 99,500   99,500    
Issuance of common stock in conjunction with the conversion of senior notes, due 2022 (in shares)   1,109,980      
Issuance of common stock in conjunction with the conversion of senior notes, due 2022 24,094   24,094    
Ending balance (in shares) at Mar. 31, 2020   438,763,636      
Ending balance at Mar. 31, 2020 $ 1,807,945 $ 0 $ 2,427,596 $ (3,432) $ (616,219)
v3.20.1
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Business
        
Square, Inc. (together with its subsidiaries, Square or the Company) creates tools that empower businesses, sellers and individuals to participate in the economy. Square enables sellers to accept card payments and also provides reporting and analytics, and next-day settlement. Square’s point-of-sale software and other business services help sellers manage inventory, locations, and employees; access financing; engage buyers; build a website or online store; and grow sales. Cash App is an easy way to send, spend, and store money. Square was founded in 2009 and is headquartered in San Francisco, with offices in the United States, Canada, Japan, Australia, Ireland, and the United Kingdom.

Basis of Presentation
        
The accompanying interim condensed consolidated financial statements of the Company are unaudited. These interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP) and the applicable rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The December 31, 2019 condensed consolidated balance sheet was derived from the audited financial statements as of that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company's consolidated financial position, results of operations, comprehensive loss, and cash flows for the interim periods. All intercompany transactions and balances have been eliminated in consolidation. The interim results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020, or for any other future annual or interim period.

The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and related notes in the Company's Annual Report on Form 10-K for the year ended December 31, 2019.

Use of Estimates 

The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, as well as related disclosure of contingent assets and liabilities. Actual results could differ from the Company’s estimates. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or operating results will be materially affected. Generally, the Company's estimates and assumptions consider current and past experience, to the extent that historical experience is predictive of future performance.

Estimates, judgments, and assumptions in these consolidated financial statements include, but are not limited to, those related to revenue recognition, accrued transaction losses, credit loss allowances from marketable debt securities, contingencies, valuation of the debt component of convertible senior notes, valuation of loans held for sale, goodwill, acquired intangible assets, income and other taxes, operating and financing lease right-of-use assets and related liabilities, assessing the likelihood of adverse outcomes from claims and disputes, and share-based compensation.

In March 2020, the World Health Organization declared the COVID-19 outbreak a global pandemic. The Company operates in geographic locations that have been impacted by COVID-19 and that are subject to various mandated public health ordinances, which have negatively impacted the business operations of the Company and its customers. As a consequence of the pandemic and related public health orders, the Company’s customers are now exposed to a variety of uncertainties that could negatively impact their ability to repay outstanding amounts, or even continue in business. As of the date of issuance of the financial statements, the Company has revised or updated the carrying values of its assets or liabilities based on estimates, judgments and circumstances we are aware of, particularly, the expected impact of COVID-19. Due to the impact of the COVID-19 outbreak, the Company’s estimates of accrued transaction losses and valuation of loans held for sale were subject to greater uncertainty. The Company's estimates were based on historical experience, adjusted for market
data relevant to the current economic environment. Additionally, the Company incorporated market data for similar historical periods of recessionary economic conditions and uncertainty in developing such estimates and assumptions. The Company evaluates these estimates and assumptions on an ongoing basis and will make adjustments as appropriate. In the three months ended March 31, 2020, the provision for transaction losses increased to $79.3 million, compared to $19.8 million for the three months ended March 31, 2019 — See Note 10, Other Consolidated Balance Sheet Components (Current), for further details on transaction losses. In the three months ended March 31, 2020, the charge for the excess of amortized costs over the fair value of loans increased to $22.0 million, compared to $6.7 million for the three months ended March 31, 2019 — See Note 5, Fair Value of Financial Instruments, for further details on amortized cost over fair value of the loans. These estimates may change, as new events develop and additional information is obtained. Actual results could differ from these estimates, and such differences may be material to the Company's financial statements.

The extent of the impact of COVID-19 on the Company's operational and financial performance will depend on certain developments, including, but not limited to, the duration and spread of the outbreak, duration of local, state and federal issued public health orders, impact on our customers and our sales cycles, impact on our employees, and impact on regional and worldwide economies and financial markets in general, all of which are uncertain and cannot be predicted.

Concentration of Credit Risk
        
For the three months ended March 31, 2020 and March 31, 2019, the Company had no customer that accounted for greater than 10% of total net revenue.

The Company had two third-party payment processors that represented approximately 45% and 28% of settlements receivable as of March 31, 2020. As of December 31, 2019, the Company had three parties that represented approximately 48%, 29%, and 9% of settlements receivable. All other third-party processors were insignificant.

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, marketable debt securities, settlements receivables, customer funds, and loans held for sale. The associated risk of concentration for cash and cash equivalents and restricted cash is mitigated by banking with creditworthy institutions. At certain times, amounts on deposit exceed federal deposit insurance limits. The associated risk of concentration for marketable debt securities is mitigated by holding a diversified portfolio of highly rated investments. Settlements receivable are amounts due from well-established payment processing companies and normally take one or two business days to settle which mitigates the associated risk of concentration. The associated risk of concentration for loans held for sale is partially mitigated by credit evaluations that are performed prior to facilitating the offering of loans and ongoing performance monitoring of the Company’s loan customers.

Recent Accounting Pronouncements

Recently adopted accounting pronouncements

In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses, which requires the measurement and recognition of expected credit losses for financial assets held. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available for sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted this guidance effective January 1, 2020 and has applied the guidance prospectively. The Company has concluded that the adoption of the guidance did not have a material impact on the balances reported in its consolidated financial statements and has included disclosures under the guidance.

In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The new guidance eliminates the requirement to calculate the implied fair value of goodwill assuming a hypothetical purchase price allocation (i.e., Step 2 of the goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value, not to exceed the carrying amount of goodwill. This standard should be adopted when the Company performs its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The amendments should be applied on a
prospective basis. The Company adopted this guidance effective January 1, 2020 and will apply the guidance during its annual goodwill impairment test for the year ending December 31, 2020. The adoption of this guidance did not have a material impact on the consolidated financial statements and related disclosures.

In July 2018, the FASB issued ASU 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement, which will remove, modify, and add disclosure requirements for fair value measurements to improve the overall usefulness of such disclosures. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for any removed or modified disclosure requirements. Transition is on a prospective basis for the new and modified disclosures, and on a retrospective basis for disclosures that have been eliminated. The Company adopted this guidance effective January 1, 2020 and has applied the guidance prospectively, and included additional disclosures required by the new guidance relating to significant unobservable inputs used to develop Level 3 fair value measurements.

In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which is intended to align the requirements for capitalization of implementation costs incurred in a cloud computing arrangement that is a service contract with the existing guidance for internal-use software. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The guidance provides flexibility in adoption, allowing for either retrospective adjustment or prospective adjustment for all implementation costs incurred after the date of adoption. The Company adopted this guidance effective January 1, 2020 and has applied the guidance prospectively. The adoption of this guidance did not have a material impact on the consolidated financial statements and related disclosures.

In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendments clarify the scope of the credit losses standard and hedge accounting among other things. The Company adopted ASC 326 on January 1, 2020 for credit losses. With respect to hedge accounting, the amendments address partial-term fair value hedges and fair value hedge basis adjustments, among other things. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted as long an entity has also adopted the amendments in ASU 2016-13. The adoption of this guidance did not have a material impact on the consolidated financial statements and related disclosures. For entities which have already adopted ASU 2017-12, they are permitted to elect either retrospectively or prospectively adopt the amendments. The Company had previously adopted ASU 2017-12 on January 1, 2019 and therefore is eligible to and has prospectively adopted the amendments.

In December 2019, the FASB issued ASU 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes, as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Among other things, the new guidance simplifies intraperiod tax allocation and reduces the complexity in accounting for income taxes with year-to-date losses in interim periods. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years, with early adoption permitted. The Company early adopted this guidance effective January 1, 2020 and has applied the guidance prospectively. The adoption did not have a material impact on the consolidated financial statements and related disclosures.
v3.20.1
REVENUE
3 Months Ended
Mar. 31, 2020
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
The following table presents the Company's revenue disaggregated by revenue source (in thousands):

Three Months Ended
March 31,
20202019
Revenue from Contracts with Customers:
Transaction-based revenue$758,101  $656,762  
Subscription and services-based revenue255,883  190,307  
Hardware revenue20,675  18,212  
Bitcoin revenue306,098  65,528  
Revenue from other sources:
Subscription and services-based revenue$40,352  $28,550  

The deferred revenue balances were as follows (in thousands):

Three Months Ended
March 31,
20202019
Deferred revenue, beginning of the period$44,331  $36,451  
Deferred revenue, end of the period47,046  42,160  
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period$15,570  $12,306  
v3.20.1
INVESTMENTS IN DEBT SECURITIES
3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
INVESTMENTS IN DEBT SECURITIES INVESTMENTS IN DEBT SECURITIES
The Company's short-term and long-term investments as of March 31, 2020 are as follows (in thousands):

Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$173,424  $912  $(208) $174,128  
Corporate bonds75,440  50  (627) 74,863  
Commercial paper2,996  —  —  2,996  
Municipal securities8,837  44  (5) 8,876  
U.S. government securities238,012  1,722  (114) 239,620  
Foreign securities21,308  52  (3) 21,357  
Total$520,017  $2,780  $(957) $521,840  
Long-term debt securities:
U.S. agency securities$166,075  $704  $(466) $166,313  
Corporate bonds141,920  216  (2,161) 139,975  
Municipal securities8,464  32  (40) 8,456  
U.S. government securities177,308  2,648  (587) 179,369  
Foreign securities35,031  334  (18) 35,347  
Total$528,798  $3,934  $(3,272) $529,460  

The Company's short-term and long-term investments as of December 31, 2019 are as follows (in thousands):

Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$131,124  $409  $(11) $131,522  
Corporate bonds67,169  580  (28) 67,721  
Municipal securities6,667  109  —  6,776  
U.S. government securities264,069  1,083  (17) 265,135  
Foreign securities21,270  48  (16) 21,302  
Total$490,299  $2,229  $(72) $492,456  
Long-term debt securities:
U.S. agency securities$63,645  $612  $(189) $64,068  
Corporate bonds141,307  1,832  (61) 143,078  
Municipal securities9,594  151  (39) 9,706  
U.S. government securities294,682  1,287  (190) 295,779  
Foreign securities24,625  86  (39) 24,672  
Total$533,853  $3,968  $(518) $537,303  


The amortized cost of investments classified as cash equivalents approximated the fair value due to the short-term nature of the investments.
The Company's gross unrealized losses and fair values for those investments that were in an unrealized loss position as of March 31, 2020 and December 31, 2019, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):

March 31, 2020
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$26,172  $(208) $—  $—  $26,172  $(208) 
Corporate bonds61,012  (627) —  —  61,012  (627) 
Municipal securities5,342  (5) —  —  5,342  (5) 
U.S. government securities24,028  (114) —  —  24,028  (114) 
Foreign securities4,209  (3) —  —  4,209  (3) 
Total$120,763  $(957) $—  $—  $120,763  $(957) 
Long-term debt securities:
U.S. agency securities$23,037  $(466) $—  $—  $23,037  $(466) 
Corporate bonds106,455  (2,161) —  —  106,455  (2,161) 
Municipal securities489  (40) —  —  489  (40) 
U.S. government securities9,061  (587) —  —  9,061  (587) 
Foreign securities2,003  (18) —  —  2,003  (18) 
Total$141,045  $(3,272) $—  $—  $141,045  $(3,272) 


December 31, 2019
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$23,896  $(9) $4,996  $(2) $28,892  $(11) 
Corporate bonds5,507  (27) 2,502  (1) 8,009  (28) 
U.S. government securities21,481  (8) 14,984  (9) 36,465  (17) 
Foreign securities13,499  (16) —  —  13,499  (16) 
Total$64,383  $(60) $22,482  $(12) $86,865  $(72) 
Long-term debt securities:
U.S. agency securities$16,740  $(189) $—  $—  $16,740  $(189) 
Corporate bonds16,708  (61) —  —  16,708  (61) 
Municipal securities1,005  (39) —  —  1,005  (39) 
U.S. government securities42,210  (162) —  (28) 42,210  (190) 
Foreign securities16,383  (39) —  —  16,383  (39) 
Total$93,046  $(490) $—  $(28) $93,046  $(518) 
The unrealized losses above were as a consequence of interest rate changes. The U.S. government and U.S. agency securities are either explicitly or implicitly guaranteed by the U.S. government and are highly rated by major rating agencies. The corporate bonds are issued by highly rated entities. The non-US government securities are issued by highly rated international entities. The Company has the ability and intent to hold these investments with unrealized losses for a reasonable period of time sufficient for the recovery of their amortized cost bases, which may be at maturity. The Company determines any realized gains or losses on the sale of marketable debt securities on a specific identification method, and records such gains and losses as a component of other expense, net.

The Company does not have any available for sale debt securities for which the Company has recorded credit related losses.  

The contractual maturities of the Company's short-term and long-term investments as of March 31, 2020 are as follows (in thousands):

Amortized CostFair Value
Due in one year or less$520,017  $521,840  
Due in one to five years528,798  529,460  
Total$1,048,815  $1,051,300  
CUSTOMER FUNDS
The following table presents the assets underlying customer funds (in thousands):

March 31, 2020December 31, 2019
Cash$132,908  $422,459  
Cash Equivalents:
Money market funds505,553  233  
U.S. agency securities9,999  8,585  
U.S. government securities—  6,984  
Short-term debt securities:
U.S. agency securities118,835  —  
U.S. government securities177,516  238,031  
Total$944,811  $676,292  

The Company's investments within customer funds as of March 31, 2020 are as follows (in thousands):

Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$118,750  $100  $(15) $118,835  
U.S. government securities176,750  821  (55) 177,516  
Total$295,500  $921  $(70) $296,351  
The Company's investments within customer funds as of December 31, 2019 are as follows (in thousands):

Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. government securities$237,909  $144  $(22) $238,031  
Total$237,909  $144  $(22) $238,031  

The amortized cost of investments classified as cash equivalents approximated the fair value due to the short-term nature of the investments.

The gross unrealized losses and fair values for those investments that were in an unrealized loss position as of March 31, 2020 and December 31, 2019, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):

March 31, 2020
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$39,934  $(15) $—  $—  $39,934  $(15) 
U.S. government securities3,999  (55) —  —  3,999  (55) 
Total$43,933  $(70) $—  $—  $43,933  $(70) 


December 31, 2019
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. government securities$56,984  $(22) $—  $—  $56,984  $(22) 
Total$56,984  $(22) $—  $—  $56,984  $(22) 

The unrealized losses above were caused by interest rate changes. The U.S. government securities are either explicitly or implicitly guaranteed by the U.S. government and are highly rated by major rating agencies. The Company has the ability and intent to hold these investments with unrealized losses for a reasonable period of time sufficient for the recovery of their amortized cost bases, which may be at maturity. The Company determines any realized gains or losses on the sale of marketable debt securities on a specific identification method, and records such gains and losses as a component of other expense, net.

The Company does not have any available for sale debt securities for which the Company has recorded credit related losses.  

The contractual maturities of the Company's investments within customer funds as of March 31, 2020 are as follows (in thousands):

Amortized CostFair Value
Due in one year or less$295,500  $296,351  
Due in one to five years—  —  
Total$295,500  $296,351  
v3.20.1
CUSTOMER FUNDS
3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
CUSTOMER FUNDS INVESTMENTS IN DEBT SECURITIES
The Company's short-term and long-term investments as of March 31, 2020 are as follows (in thousands):

Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$173,424  $912  $(208) $174,128  
Corporate bonds75,440  50  (627) 74,863  
Commercial paper2,996  —  —  2,996  
Municipal securities8,837  44  (5) 8,876  
U.S. government securities238,012  1,722  (114) 239,620  
Foreign securities21,308  52  (3) 21,357  
Total$520,017  $2,780  $(957) $521,840  
Long-term debt securities:
U.S. agency securities$166,075  $704  $(466) $166,313  
Corporate bonds141,920  216  (2,161) 139,975  
Municipal securities8,464  32  (40) 8,456  
U.S. government securities177,308  2,648  (587) 179,369  
Foreign securities35,031  334  (18) 35,347  
Total$528,798  $3,934  $(3,272) $529,460  

The Company's short-term and long-term investments as of December 31, 2019 are as follows (in thousands):

Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$131,124  $409  $(11) $131,522  
Corporate bonds67,169  580  (28) 67,721  
Municipal securities6,667  109  —  6,776  
U.S. government securities264,069  1,083  (17) 265,135  
Foreign securities21,270  48  (16) 21,302  
Total$490,299  $2,229  $(72) $492,456  
Long-term debt securities:
U.S. agency securities$63,645  $612  $(189) $64,068  
Corporate bonds141,307  1,832  (61) 143,078  
Municipal securities9,594  151  (39) 9,706  
U.S. government securities294,682  1,287  (190) 295,779  
Foreign securities24,625  86  (39) 24,672  
Total$533,853  $3,968  $(518) $537,303  


The amortized cost of investments classified as cash equivalents approximated the fair value due to the short-term nature of the investments.
The Company's gross unrealized losses and fair values for those investments that were in an unrealized loss position as of March 31, 2020 and December 31, 2019, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):

March 31, 2020
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$26,172  $(208) $—  $—  $26,172  $(208) 
Corporate bonds61,012  (627) —  —  61,012  (627) 
Municipal securities5,342  (5) —  —  5,342  (5) 
U.S. government securities24,028  (114) —  —  24,028  (114) 
Foreign securities4,209  (3) —  —  4,209  (3) 
Total$120,763  $(957) $—  $—  $120,763  $(957) 
Long-term debt securities:
U.S. agency securities$23,037  $(466) $—  $—  $23,037  $(466) 
Corporate bonds106,455  (2,161) —  —  106,455  (2,161) 
Municipal securities489  (40) —  —  489  (40) 
U.S. government securities9,061  (587) —  —  9,061  (587) 
Foreign securities2,003  (18) —  —  2,003  (18) 
Total$141,045  $(3,272) $—  $—  $141,045  $(3,272) 


December 31, 2019
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$23,896  $(9) $4,996  $(2) $28,892  $(11) 
Corporate bonds5,507  (27) 2,502  (1) 8,009  (28) 
U.S. government securities21,481  (8) 14,984  (9) 36,465  (17) 
Foreign securities13,499  (16) —  —  13,499  (16) 
Total$64,383  $(60) $22,482  $(12) $86,865  $(72) 
Long-term debt securities:
U.S. agency securities$16,740  $(189) $—  $—  $16,740  $(189) 
Corporate bonds16,708  (61) —  —  16,708  (61) 
Municipal securities1,005  (39) —  —  1,005  (39) 
U.S. government securities42,210  (162) —  (28) 42,210  (190) 
Foreign securities16,383  (39) —  —  16,383  (39) 
Total$93,046  $(490) $—  $(28) $93,046  $(518) 
The unrealized losses above were as a consequence of interest rate changes. The U.S. government and U.S. agency securities are either explicitly or implicitly guaranteed by the U.S. government and are highly rated by major rating agencies. The corporate bonds are issued by highly rated entities. The non-US government securities are issued by highly rated international entities. The Company has the ability and intent to hold these investments with unrealized losses for a reasonable period of time sufficient for the recovery of their amortized cost bases, which may be at maturity. The Company determines any realized gains or losses on the sale of marketable debt securities on a specific identification method, and records such gains and losses as a component of other expense, net.

The Company does not have any available for sale debt securities for which the Company has recorded credit related losses.  

The contractual maturities of the Company's short-term and long-term investments as of March 31, 2020 are as follows (in thousands):

Amortized CostFair Value
Due in one year or less$520,017  $521,840  
Due in one to five years528,798  529,460  
Total$1,048,815  $1,051,300  
CUSTOMER FUNDS
The following table presents the assets underlying customer funds (in thousands):

March 31, 2020December 31, 2019
Cash$132,908  $422,459  
Cash Equivalents:
Money market funds505,553  233  
U.S. agency securities9,999  8,585  
U.S. government securities—  6,984  
Short-term debt securities:
U.S. agency securities118,835  —  
U.S. government securities177,516  238,031  
Total$944,811  $676,292  

The Company's investments within customer funds as of March 31, 2020 are as follows (in thousands):

Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$118,750  $100  $(15) $118,835  
U.S. government securities176,750  821  (55) 177,516  
Total$295,500  $921  $(70) $296,351  
The Company's investments within customer funds as of December 31, 2019 are as follows (in thousands):

Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. government securities$237,909  $144  $(22) $238,031  
Total$237,909  $144  $(22) $238,031  

The amortized cost of investments classified as cash equivalents approximated the fair value due to the short-term nature of the investments.

The gross unrealized losses and fair values for those investments that were in an unrealized loss position as of March 31, 2020 and December 31, 2019, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):

March 31, 2020
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$39,934  $(15) $—  $—  $39,934  $(15) 
U.S. government securities3,999  (55) —  —  3,999  (55) 
Total$43,933  $(70) $—  $—  $43,933  $(70) 


December 31, 2019
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. government securities$56,984  $(22) $—  $—  $56,984  $(22) 
Total$56,984  $(22) $—  $—  $56,984  $(22) 

The unrealized losses above were caused by interest rate changes. The U.S. government securities are either explicitly or implicitly guaranteed by the U.S. government and are highly rated by major rating agencies. The Company has the ability and intent to hold these investments with unrealized losses for a reasonable period of time sufficient for the recovery of their amortized cost bases, which may be at maturity. The Company determines any realized gains or losses on the sale of marketable debt securities on a specific identification method, and records such gains and losses as a component of other expense, net.

The Company does not have any available for sale debt securities for which the Company has recorded credit related losses.  

The contractual maturities of the Company's investments within customer funds as of March 31, 2020 are as follows (in thousands):

Amortized CostFair Value
Due in one year or less$295,500  $296,351  
Due in one to five years—  —  
Total$295,500  $296,351  
v3.20.1
FAIR VALUE OF FINANCIAL INSTRUMENTS
3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS
The Company measures its cash equivalents, customer funds, short-term and long-term marketable debt securities, and marketable equity investments at fair value. The Company classifies these investments within Level 1 or Level 2 of the fair value hierarchy because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs.
The Company’s financial assets and liabilities that are measured at fair value on a recurring basis are classified as follows (in thousands):
March 31, 2020December 31, 2019
Level 1Level 2Level 3Level 1Level 2Level 3
Cash Equivalents:
Money market funds$696,587  $—  $—  $213,576  $—  $—  
U.S. agency securities—  14,999  —  —  19,976  —  
Commercial paper—  12,999  —  —  —  —  
Time deposits100,296  —  —  —  —  —  
U.S. government securities5,637  —  —  46,914  —  —  
Foreign securities—  5,000  —  —  —  —  
Customer funds:
Money market funds505,553  —  —  233  —  —  
U.S. agency securities—  128,834  —  —  8,585  —  
U.S. government securities177,516  —  —  245,015  —  —  
Short-term debt securities:
U.S. agency securities—  174,128  —  —  131,522  —  
Corporate bonds—  74,863  —  —  67,721  —  
Commercial paper—  2,996  —  —  —  —  
Municipal securities—  8,876  —  —  6,776  —  
U.S. government securities239,620  —  —  265,135  —  —  
Foreign securities—  21,357  —  —  21,302  —  
Long-term debt securities:
U.S. agency securities—  166,313  —  —  64,068  —  
Corporate bonds—  139,975  —  —  143,078  —  
Municipal securities—  8,456  —  —  9,706  —  
U.S. government securities179,369  —  —  295,779  —  —  
Foreign securities—  35,347  —  —  24,672  —  
Total$1,904,578  $794,143  $—  $1,066,652  $497,406  $—  

The carrying amounts of certain financial instruments, including settlements receivable, accounts payable, customers payable, accrued expenses and settlements payable, approximate their fair values due to their short-term nature.
The Company estimates the fair value of its convertible senior notes based on their last actively traded prices (Level 1) or market observable inputs (Level 2). The estimated fair value and carrying value of the convertible senior notes were as follows (in thousands):
March 31, 2020December 31, 2019
Carrying ValueFair Value (Level 2)Carrying ValueFair Value (Level 2)
2025 Notes
$835,130  $866,330  $—  $—  
2023 Notes756,298  890,143  748,564  962,516  
2022 Notes169,419  427,335  190,268  578,817  
Total$1,760,847  $2,183,808  $938,832  $1,541,333  

The estimated fair value and carrying value of loans held for sale is as follows (in thousands):

March 31, 2020December 31, 2019
Carrying ValueFair Value (Level 3)Carrying ValueFair Value (Level 3)
Loans held for sale$160,709  $165,572  $164,834  $173,360  
Total$160,709  $165,572  $164,834  $173,360  

For the three months ended March 31, 2020 and 2019, the Company recorded a charge for the excess of amortized cost over fair value of the loans of $22.0 million and $6.7 million, respectively. To determine the fair value of the loans held for sale, the Company utilizes industry-standard valuation modeling, such as discounted cash flow models, taking into account the estimated timing and amounts of periodic repayments. In estimating the expected timing and amounts of the future periodic repayments for the loans outstanding as of March 31, 2020, the Company considered other relevant market data in developing such estimates and assumptions, including the impact of the COVID-19 outbreak, as well as the conditions and uncertainty experienced during similar historical periods of recessionary economic conditions.

If applicable, the Company will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs. During the three months ended March 31, 2020 and 2019, the Company did not have any transfers in or out of Level 1, Level 2, or Level 3 assets or liabilities.
v3.20.1
PROPERTY AND EQUIPMENT, NET
3 Months Ended
Mar. 31, 2020
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET PROPERTY AND EQUIPMENT, NET
The following is a summary of property and equipment, less accumulated depreciation and amortization (in thousands): 
March 31, 2020December 31, 2019
Leasehold improvements$116,407  $111,942  
Computer equipment111,010  106,469  
Capitalized software89,218  81,984  
Office furniture and equipment27,846  27,328  
Total344,481  327,723  
Less: Accumulated depreciation and amortization(193,822) (178,529) 
Property and equipment, net$150,659  $149,194  

Depreciation and amortization expense on property and equipment was $15.9 million and $15.5 million for the three months ended March 31, 2020 and 2019, respectively.
v3.20.1
ACQUISITIONS
3 Months Ended
Mar. 31, 2020
Business Combinations [Abstract]  
ACQUISITIONS ACQUISITIONSIn the quarter ended March 31, 2020, the Company acquired 100% of the outstanding shares of a technology company for $36.6 million comprised of $21.6 million in cash and $15.0 million in common stock. Of the total purchase consideration, $22.2 million was allocated to goodwill which was primarily attributable to the value of expected synergies created by incorporating the acquired technology into the Company's technology platform and the value of the assembled workforce, while $17.0 million was allocated to intangible assets. None of the goodwill generated from the acquisition or the acquired intangible assets are expected to be deductible for tax purposes.
v3.20.1
GOODWILL
3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL GOODWILL
Goodwill is recorded when the consideration paid for an acquisition of a business exceeds the fair value of identifiable net tangible and intangible assets acquired.

The change in carrying value of goodwill in the period was as follows (in thousands):
Balance at December 31, 2019$266,345  
Acquisitions22,188  
Balance at March 31, 2020$288,533  

The Company performs an annual goodwill impairment test on December 31 and more frequently if events and circumstances indicate that the asset might be impaired. As a result of the COVID-19 pandemic, the Company performed a goodwill impairment assessment as of March 31, 2020 and concluded that no impairment charges were required. The Company recorded no impairment charges for the periods presented.
v3.20.1
ACQUIRED INTANGIBLE ASSETS
3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
ACQUIRED INTANGIBLE ASSETS ACQUIRED INTANGIBLE ASSETS
        
The following table presents the detail of acquired intangible assets as of the periods presented (in thousands):
Balance at March 31, 2020
Estimated Useful LifeCostAccumulated AmortizationNet
Technology assets5 years$70,081  $(34,193) $35,888  
Customer assets12 years44,000  (7,824) 36,176  
Trade name4 years12,128  (5,248) 6,880  
Other5,299  (2,307) 2,992  
Total$131,508  $(49,572) $81,936  

Balance at December 31, 2019
Estimated Useful LifeCostAccumulated AmortizationNet
Technology assets5 years$53,900  $(31,873) $22,027  
Customer assets12 years44,000  (6,934) 37,066  
Trade name4 years11,300  (4,473) 6,827  
Other5,299  (2,140) 3,159  
Total$114,499  $(45,420) $69,079  
All intangible assets are amortized over their estimated useful lives. As a result of the COVID-19 pandemic, the Company performed an impairment assessment of its intangible assets as of March 31, 2020, and concluded that no impairment charges were required.

The changes to the carrying value of intangible assets were as follows (in thousands):

Three Months Ended
March 31,
20202019
Acquired intangible assets, net, beginning of the period$69,079  $77,102  
Acquisitions17,009  6,082  
Amortization expense(4,152) (3,487) 
Acquired intangible assets, net, end of the period$81,936  $79,697  

The estimated future amortization expense of intangible assets in future periods as of March 31, 2020 is as follows (in thousands):
Remainder of 2020$11,994  
202115,479  
202213,405  
202312,153  
20249,176  
Thereafter19,729  
Total$81,936  
v3.20.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT)
3 Months Ended
Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT)
Other Current Assets
The following table presents the detail of other current assets (in thousands):
        
March 31, 2020December 31, 2019
Inventory, net$54,719  $47,683  
Restricted cash34,315  38,873  
Processing costs receivable84,045  67,281  
Prepaid expenses31,433  22,758  
Accounts receivable, net31,515  33,863  
Other42,643  39,951  
Total$278,670  $250,409  
Accrued Expenses and Other Current Liabilities
The following table presents the detail of accrued expenses and other current liabilities (in thousands): 
March 31, 2020December 31, 2019
Accrued expenses$126,911  $128,387  
Accrued transaction losses (i)96,661  34,771  
Accounts payable29,831  42,116  
Deferred revenue, current40,392  38,104  
Square Payroll payable (ii)29,618  27,969  
Other69,321  26,494  
Total$392,734  $297,841  

(i) The Company is exposed to potential credit losses related to transactions processed by sellers that are subsequently subject to chargebacks when the Company is unable to collect from the sellers primarily due to insolvency. Generally, the Company estimates the potential loss rates based on historical experience that is continuously adjusted for new information and incorporates, where applicable, reasonable and supportable forecasts about future expectations. In estimating the accrued transaction losses as of March 31, 2020, the Company has revised its estimates to reflect expected increased chargebacks from non-delivery of goods and services as well as increased failure rates of its sellers due to the COVID-19 outbreak. Additionally, the Company has also incorporated market related data to credit losses for similar historical periods of recessionary economic conditions and uncertainty in developing such estimates and assumptions. Given that substantially all the chargebacks are reported within a short time period after the transaction is processed, a reversion method was not considered to be necessary.

The following table summarizes the activities of the Company’s reserve for transaction losses (in thousands):
Three Months Ended
March 31,
20202019
Accrued transaction losses, beginning of the period$34,771  $33,682  
Provision for transaction losses79,303  19,808  
Charge-offs to accrued transaction losses(17,413) (17,443) 
Accrued transaction losses, end of the period$96,661  $36,047  

(ii) Square Payroll payable represents amounts received from Square Payroll product customers that will be utilized to settle the customers' employee payroll and related obligations.
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT)
Other Non-Current Assets

The following table presents the detail of other non-current assets (in thousands):

March 31, 2020December 31, 2019
Investment in non-marketable equity securities$110,000  $110,000  
Non-current lease prepayments (i)—  45,738  
Restricted cash13,286  12,715  
Other26,566  27,935  
Total$149,852  $196,388  

(i) The non-current lease prepayments as of December 31, 2019, have been reclassified to the operating lease right-of-use assets upon lease commencement during the quarter ended March 31, 2020.

Other Non-Current Liabilities
The following table presents the detail of other non-current liabilities (in thousands):
March 31, 2020December 31, 2019
Statutory liabilities (i)$56,371  $54,762  
Deferred revenue, non-current6,654  6,227  
Other17,836  33,472  
Total$80,861  $94,461  

(i) Statutory liabilities represent loss contingencies that may arise from the Company's interpretation and application of certain guidelines and rules issued by various federal, state, local, and foreign regulatory authorities.
v3.20.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT)
3 Months Ended
Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT) OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT)
Other Current Assets
The following table presents the detail of other current assets (in thousands):
        
March 31, 2020December 31, 2019
Inventory, net$54,719  $47,683  
Restricted cash34,315  38,873  
Processing costs receivable84,045  67,281  
Prepaid expenses31,433  22,758  
Accounts receivable, net31,515  33,863  
Other42,643  39,951  
Total$278,670  $250,409  
Accrued Expenses and Other Current Liabilities
The following table presents the detail of accrued expenses and other current liabilities (in thousands): 
March 31, 2020December 31, 2019
Accrued expenses$126,911  $128,387  
Accrued transaction losses (i)96,661  34,771  
Accounts payable29,831  42,116  
Deferred revenue, current40,392  38,104  
Square Payroll payable (ii)29,618  27,969  
Other69,321  26,494  
Total$392,734  $297,841  

(i) The Company is exposed to potential credit losses related to transactions processed by sellers that are subsequently subject to chargebacks when the Company is unable to collect from the sellers primarily due to insolvency. Generally, the Company estimates the potential loss rates based on historical experience that is continuously adjusted for new information and incorporates, where applicable, reasonable and supportable forecasts about future expectations. In estimating the accrued transaction losses as of March 31, 2020, the Company has revised its estimates to reflect expected increased chargebacks from non-delivery of goods and services as well as increased failure rates of its sellers due to the COVID-19 outbreak. Additionally, the Company has also incorporated market related data to credit losses for similar historical periods of recessionary economic conditions and uncertainty in developing such estimates and assumptions. Given that substantially all the chargebacks are reported within a short time period after the transaction is processed, a reversion method was not considered to be necessary.

The following table summarizes the activities of the Company’s reserve for transaction losses (in thousands):
Three Months Ended
March 31,
20202019
Accrued transaction losses, beginning of the period$34,771  $33,682  
Provision for transaction losses79,303  19,808  
Charge-offs to accrued transaction losses(17,413) (17,443) 
Accrued transaction losses, end of the period$96,661  $36,047  

(ii) Square Payroll payable represents amounts received from Square Payroll product customers that will be utilized to settle the customers' employee payroll and related obligations.
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT)
Other Non-Current Assets

The following table presents the detail of other non-current assets (in thousands):

March 31, 2020December 31, 2019
Investment in non-marketable equity securities$110,000  $110,000  
Non-current lease prepayments (i)—  45,738  
Restricted cash13,286  12,715  
Other26,566  27,935  
Total$149,852  $196,388  

(i) The non-current lease prepayments as of December 31, 2019, have been reclassified to the operating lease right-of-use assets upon lease commencement during the quarter ended March 31, 2020.

Other Non-Current Liabilities
The following table presents the detail of other non-current liabilities (in thousands):
March 31, 2020December 31, 2019
Statutory liabilities (i)$56,371  $54,762  
Deferred revenue, non-current6,654  6,227  
Other17,836  33,472  
Total$80,861  $94,461  

(i) Statutory liabilities represent loss contingencies that may arise from the Company's interpretation and application of certain guidelines and rules issued by various federal, state, local, and foreign regulatory authorities.
v3.20.1
INDEBTEDNESS
3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
INDEBTEDNESS INDEBTEDNESS
Revolving Credit Facility

In November 2015, the Company entered into a revolving credit agreement with certain lenders, which provided for a $375.0 million revolving credit facility maturing in November 2020 (the "2015 Credit Facility"). In May 2020, the Company entered into a new revolving credit agreement with certain lenders, which extinguished the 2015 Credit Facility and provides a $500.0 million senior unsecured revolving credit facility (the "2020 Credit Facility") maturing in May 2023. To date, no funds have been drawn and no letters of credit have been issued under the 2020 Credit Facility.

Loans under the 2015 Credit Facility bear interest at the Company’s option of (i) a base rate based on the highest of the prime rate, the federal funds rate plus 0.50%, and an adjusted LIBOR rate for a one-month interest period, in each case plus a margin ranging from 0.00% to 1.00%, or (ii) an adjusted LIBOR rate plus a margin ranging from 1.00% to 2.00%. This margin is determined based on the Company’s total net leverage ratio, as defined in the agreement, for the preceding four fiscal quarters. The Company is obligated to pay other customary fees for a credit facility of this size and type including an annual administrative agent fee of $0.1 million and an unused commitment fee of 0.15%. To date no funds have been drawn under the 2015 Credit Facility. The Company incurred $0.1 million in unused commitment fees for both the three months ended March 31, 2020 and March 31, 2019, respectively. As of March 31, 2020, the Company was in compliance with all financial covenants associated with the 2015 Credit Facility.
Loans under the 2020 Credit Facility bear interest at the Company's option of (i) a base rate based on the highest of the prime rate, the federal funds rate plus 0.50%, and the adjusted LIBOR rate plus 1.00%, in each case, plus a margin ranging from 0.25% to 0.75% or (ii) an adjusted LIBOR rate plus a margin ranging from 1.25% to 1.75%. The margin is determined based on the Company’s total net leverage ratio, as defined in the agreement. The Company is obligated to pay other customary fees for a credit facility of this size and type including an unused commitment fee of 0.15%.

Convertible Senior Notes due in 2025

On March 5, 2020, the Company issued an aggregate principal amount of $1.0 billion of convertible senior notes (2025 Notes). The 2025 Notes mature on March 1, 2025, unless earlier converted or repurchased, and bear interest at a rate of 0.1250% payable semi-annually on March 1 and September 1 of each year. The 2025 Notes are convertible at an initial conversion rate of 8.2641 shares of the Company's Class A common stock per $1,000 principal amount of 2025 Notes, which is equivalent to an initial conversion price of approximately $121.01 per share of Class A common stock. Holders may convert their 2025 Notes at any time prior to the close of business on the business day immediately preceding December 1, 2024 only under the following circumstances: (1) during any calendar quarter, commencing after the calendar quarter ending on June 30, 2020 (and only during such calendar quarter), if the last reported sale price of the Company’s Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the measurement period) in which the trading price (as defined in the indenture governing the 2025 Notes) per $1,000 principal amount of 2025 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate on each such trading day; (3) if the Company calls any or all of the 2025 Notes for redemption, such 2025 Notes called for redemption may be converted at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events, including certain distributions, the occurrence of a fundamental change (as defined in the indenture governing the 2025 Notes) or a transaction resulting in the Company’s Class A common stock converting into other securities or property or assets. In addition, upon occurrence of the specified corporate events prior to the maturity date, the Company would increase the conversion rate for a holder who elects to convert their notes in connection with such an event in certain circumstances. On or after December 1, 2024, up until the close of business on the second scheduled trading day immediately preceding the maturity date, a holder may convert all or any portion of its 2025 Notes regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its Class A common stock, or a combination of cash and shares of its Class A common stock, at the Company’s election. The circumstances required to allow the holders to convert their 2025 Notes were not met during the three months ended March 31, 2020. The Company may redeem for cash all or any part of the 2025 notes, at its option, on or after March 5, 2023, if the last reported sale price of the Company's Class A common stock has been at least 130% of the conversion price for the 2025 notes then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the 2025 notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date.

In accounting for the issuance of the 2025 Notes, the Company separated the 2025 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $154.6 million and was determined by deducting the fair value of the liability component from the par value of the 2025 Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount ("debt discount") is amortized to interest expense over the term of the 2025 Notes at an effective interest rate of 3.81% over the contractual terms of the 2025 Notes.

Debt issuance costs related to the 2025 Notes were comprised of discounts and commissions payable to the initial purchasers of $14.3 million and third party offering costs of $0.9 million. The Company allocated the total amount incurred to the liability and equity components of the 2025 Notes based on their relative values. Issuance costs attributable to the liability component were $12.8 million and will be amortized to interest expense using the effective interest method over the contractual term. Issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity.
As of March 31, 2020, the if-converted value of the 2025 Notes did not exceed the outstanding principal amount.

Convertible Senior Notes due in 2023

On May 25, 2018, the Company issued an aggregate principal amount of $862.5 million of convertible senior notes (2023 Notes). The 2023 Notes mature on May 15, 2023, unless earlier converted or repurchased, and bear interest at a rate of 0.50% payable semi-annually on May 15 and November 15 of each year. The 2023 Notes are convertible at an initial conversion rate of 12.8456 shares of the Company's Class A common stock per $1,000 principal amount of 2023 Notes, which is equivalent to an initial conversion price of approximately $77.85 per share of Class A common stock. Holders may convert their 2023 Notes at any time prior to the close of business on the business day immediately preceding February 15, 2023 only under the following circumstances: (1) during any calendar quarter (and only during such calendar quarter), if the last reported sale price of the Company’s Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the measurement period) in which the trading price (as defined in the indenture governing the 2023 Notes) per $1,000 principal amount of 2023 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events, including certain distributions, the occurrence of a fundamental change (as defined in the indenture governing the 2023 Notes) or a transaction resulting in the Company’s Class A common stock converting into other securities or property or assets. In addition, following specified corporate events that occur prior to the maturity date, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert their notes in connection with such an event. On or after February 15, 2023, up until the close of business on the second scheduled trading day immediately preceding the maturity date, a holder may convert all or any portion of its 2023 Notes regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its Class A common stock, or a combination of cash and shares of its Class A common stock, at the Company’s election. The Company's current policy is to settle conversions entirely in shares of the Company's Class A common stock. The Company will reevaluate this policy from time to time as conversion notices are received from holders of the 2023 Notes. The circumstances required to allow the holders to convert their 2023 Notes were not met during the three months ended March 31, 2020.

In accounting for the issuance of the 2023 Notes, the Company separated the 2023 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $155.3 million and was determined by deducting the fair value of the liability component from the par value of the 2023 Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount ("debt discount") is amortized to interest expense over the term of the 2023 Notes at an effective interest rate of 4.69% over the contractual terms of the 2023 Notes.

Debt issuance costs related to the 2023 Notes were comprised of discounts and commissions payable to the initial purchasers of $6.0 million and third party offering costs of $0.8 million. The Company allocated the total amount incurred to the liability and equity components of the 2023 Notes based on their relative values. Issuance costs attributable to the liability component were $5.6 million and will be amortized to interest expense using the effective interest method over the contractual term. Issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity.

As of March 31, 2020, the if-converted value of the 2023 Notes did not exceed the outstanding principal amount.
Convertible Senior Notes due in 2022

On March 6, 2017, the Company issued an aggregate principal amount of $440.0 million of convertible senior notes (2022 Notes). The 2022 Notes mature on March 1, 2022, unless earlier converted or repurchased, and bear interest at a rate of 0.375% payable semi-annually on March 1 and September 1 of each year. The 2022 Notes are convertible at an initial conversion rate of 43.5749 shares of the Company's Class A common stock per $1,000 principal amount of 2022 Notes, which is equivalent to an initial conversion price of approximately $22.95 per share of Class A common stock. Holders may convert their 2022 Notes at any time prior to the close of business on the business day immediately preceding December 1, 2021 only under the following circumstances: (1) during any calendar quarter (and only during such calendar quarter), if the last reported sale price of the Company’s Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the measurement period) in which the trading price (as defined in the indenture governing the 2022 Notes) per $1,000 principal amount of 2022 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s Class A common stock and the conversion rate on each such trading day; or (3) upon the occurrence of specified corporate events, including certain distributions, the occurrence of a fundamental change (as defined in the indenture governing the 2022 Notes) or a transaction resulting in the Company’s Class A common stock converting into other securities or property or assets. In addition, upon occurrence of the specified corporate events prior to the maturity date, the Company would increase the conversion rate for a holder who elects to convert their notes in connection with such an event in certain circumstances. On or after December 1, 2021, up until the close of business on the second scheduled trading day immediately preceding the maturity date, a holder may convert all or any portion of its 2022 Notes regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver, as the case may be, cash, shares of its Class A common stock, or a combination of cash and shares of its Class A common stock, at the Company’s election. The circumstances required to allow the holders to convert their 2022 Notes were met starting January 1, 2018 and continued to be met through March 31, 2020. As of March 31, 2020, certain holders of the 2022 Notes have converted an aggregate principal amount of $253.7 million of their Notes, of which $25.5 million was converted during the quarter ended March 31, 2020. The Company has settled the conversions through a combination of $219.4 million in cash and issuance of 8.4 million shares of the Company's Class A common stock. The conversions during the quarter ended March 31, 2020 were settled entirely in shares of the Company's Class A common stock. The Company currently expects to settle future conversions entirely in shares of the Company's Class A common stock. The Company will reevaluate this policy from time to time as conversion notices are received from holders of the 2022 Notes.

In accounting for the issuance of the 2022 Notes, the Company separated the 2022 Notes into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was $86.2 million and was determined by deducting the fair value of the liability component from the par value of the 2022 Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The debt discount is amortized to interest expense over the term of the 2022 Notes at an effective interest rate of 5.34% over the contractual terms of the 2022 Notes.

Debt issuance costs related to the 2022 Notes were comprised of discounts and commissions payable to the initial purchasers of $11.0 million and third party offering costs of $0.8 million. The Company allocated the total amount incurred to the liability and equity components of the 2022 Notes based on their relative values. Issuance costs attributable to the liability component were $9.4 million and will be amortized to interest expense using the effective interest method over the contractual term. Issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity.

The debt component associated with the 2022 Notes that were converted was accounted for as an extinguishment of debt, with the Company recording loss on extinguishment of $6.0 million, of which $1.0 million was recorded during the three months ended March 31, 2020, as the difference between the estimated fair value and the carrying value of such 2022 Notes. The equity component associated with the 2022 Notes that were converted was accounted for as a reacquisition of equity upon the conversion of such 2022 Notes.

As of March 31, 2020, the if-converted value of the 2022 Notes exceeded the outstanding principal amount by $238.9 million.
The net carrying amount of the Notes were as follows (in thousands):

Principal outstandingUnamortized debt discountUnamortized debt issuance costsNet carrying value
March 31, 2020
2025 Notes$1,000,000  $(151,680) $(13,190) $835,130  
2023 Notes862,500  (103,016) (3,186) 756,298  
2022 Notes186,251  (15,149) (1,683) 169,419  
Total$2,048,751  $(269,845) $(18,059) $1,760,847  
December 31, 2019
2023 Notes$862,500  $(110,518) $(3,418) $748,564  
2022 Notes211,726  (19,312) (2,146) 190,268  
Total$1,074,226  $(129,830) $(5,564) $938,832  


The net carrying amount of the equity component of the Notes were as follows (in thousands):

Amount allocated to conversion optionLess: allocated issuance costsEquity component, net
March 31, 2020
2025 Notes$154,600  $(2,342) $152,258  
2023 Notes155,250  (1,231) 154,019  
2022 Notes36,490  (974) 35,516  
Total$346,340  $(4,547) $341,793  
December 31, 2019
2023 Notes$155,250  $(1,231) $154,019  
2022 Notes41,481  (1,108) 40,373  
Total$196,731  $(2,339) $194,392  


The Company recognized interest expense on the Notes as follows (in thousands, except for percentages):

Three Months Ended
March 31,
20202019
Contractual interest expense$1,373  $1,277  
Amortization of debt discount and issuance costs12,528  9,608  
Total$13,901  $10,885  

The effective interest rate of the liability component is 3.81%, 4.69%, and 5.34% for the 2025 Notes, 2023 Notes, and 2022 Notes, respectively.
Convertible Note Hedge and Warrant Transactions

In connection with the offering of the 2025 Notes, the Company entered into convertible note hedge transactions (2025 convertible note hedges) with certain financial institution counterparties (2020 Counterparties) whereby the Company has the option to purchase a total of approximately 8.26 million shares of its Class A common stock at a price of approximately $121.01 per share. The total cost of the 2025 convertible note hedge transactions was $149.2 million. In addition, the Company sold warrants (2025 warrants) to the 2020 Counterparties whereby the 2020 Counterparties have the option to purchase a total of 8.26 million shares of the Company’s Class A common stock at a price of approximately $161.34 per share. The Company received $99.5 million in cash proceeds from the sale of the 2025 warrants. Taken together, the purchase of the 2025 convertible note hedges and sale of the 2025 warrants are intended to reduce dilution from the conversion of the 2025 Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of the converted 2025 Notes, as the case may be, and to effectively increase the overall conversion price from approximately $121.01 per share to approximately $161.34 per share. As these instruments are considered indexed to the Company's own stock and are considered equity classified, the 2025 convertible note hedges and 2025 warrants are recorded in stockholders’ equity, are not accounted for as derivatives and are not remeasured each reporting period. The net costs incurred in connection with the 2025 convertible note hedge and 2025 warrant transactions were recorded as a reduction to additional paid-in capital on the condensed consolidated balance sheets.

In connection with the offering of the 2023 Notes, the Company entered into convertible note hedge transactions (2023 convertible note hedges) with certain financial institution counterparties (2018 Counterparties) whereby the Company has the option to purchase a total of approximately 11.1 million shares of its Class A common stock at a price of approximately $77.85 per share. The total cost of the 2023 convertible note hedge transactions was $172.6 million. In addition, the Company sold warrants (2023 warrants) to the 2018 Counterparties whereby the 2018 Counterparties have the option to purchase a total of 11.1 million shares of the Company’s Class A common stock at a price of approximately $109.26 per share. The Company received $112.1 million in cash proceeds from the sale of the 2023 warrants. Taken together, the purchase of the 2023 convertible note hedges and sale of the 2023 warrants are intended to reduce dilution from the conversion of the 2023 Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of the converted 2023 Notes, as the case may be, and to effectively increase the overall conversion price from approximately $77.85 per share to approximately $109.26 per share. As these instruments are considered indexed to the Company's own stock and are considered equity classified, the 2023 convertible note hedges and 2023 warrants are recorded in stockholders’ equity, are not accounted for as derivatives and are not remeasured each reporting period. The net costs incurred in connection with the 2023 convertible note hedge and 2023 warrant transactions were recorded as a reduction to additional paid-in capital on the condensed consolidated balance sheets.

In connection with the offering of the 2022 Notes, the Company entered into convertible note hedge transactions (2022 convertible note hedges) with certain financial institution counterparties (2017 Counterparties) whereby the Company has the option to purchase a total of approximately 19.2 million shares of its Class A common stock at a price of approximately $22.95 per share. The total cost of the 2022 convertible note hedge transactions was $92.1 million. In addition, the Company sold warrants (2022 warrants) to the 2017 Counterparties whereby the 2017 Counterparties have the option to purchase a total of 19.2 million shares of the Company’s Class A common stock at a price of approximately $31.18 per share. The Company received $57.2 million in cash proceeds from the sale of the 2022 warrants. Taken together, the purchase of the 2022 convertible note hedges and sale of the 2022 warrants are intended to reduce dilution from the conversion of the 2022 Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of the converted 2022 Notes, as the case may be, and to effectively increase the overall conversion price from approximately $22.95 per share to approximately $31.18 per share. As these instruments are considered indexed to the Company's own stock and are considered equity classified, the 2022 convertible note hedges and 2022 warrants are recorded in stockholders’ equity, are not accounted for as derivatives and are not remeasured each reporting period. The net costs incurred in connection with the 2022 convertible note hedge and 2022 warrant transactions were recorded as a reduction to additional paid-in capital on the condensed consolidated balance sheets. The Company exercised a pro-rata portion of the 2022 convertible note hedges to offset the shares of the Company's Class A common stock issued to settle the conversion of the 2022 Notes discussed above. The 2022 convertible note hedges were net share settled, and the Company received 7.2 million shares of the Company's Class A common stock from the 2017 Counterparties as of March 31, 2020.
v3.20.1
INCOME TAXES
3 Months Ended
Mar. 31, 2020
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company recorded an income tax expense of $0.5 million for the three months ended March 31, 2020 compared to an income tax expense of $0.1 million for the three months ended March 31, 2019. The income tax expense recorded for the three months ended March 31, 2020 is primarily due to income taxes from profitable foreign jurisdictions.

The Company’s effective tax rate is (0.5)% for the three months ended March 31, 2020 compared to an effective tax rate of (0.3)% for the three months ended March 31, 2019. The difference between the effective tax rate and the U.S. federal statutory tax rate of 21% for the three months ended March 31, 2020 and March 31, 2019 primarily relates to changes in the valuation allowance for tax losses in the U.S. and certain foreign jurisdictions for which no benefit can be taken.

The Company’s effective tax rate may be subject to fluctuation during the year as new information is obtained, which may affect the assumptions used to estimate the annual effective tax rate, including factors such as the mix of forecasted pre-tax earnings in the various jurisdictions in which the Company operates, valuation allowances against deferred tax assets, the recognition and de-recognition of tax benefits related to uncertain tax positions, and changes in or the interpretation of tax laws in jurisdictions where the Company conducts business.

As of March 31, 2020, the Company retains a full valuation allowance on its deferred tax assets in the U.S. and certain foreign jurisdictions. The realization of the Company’s deferred tax assets depends primarily on its ability to generate taxable income in future periods. The amount of deferred tax assets considered realizable in future periods may change as management continues to reassess the underlying factors it uses in estimating future taxable income.

The tax provision for the three months ended March 31, 2020 and March 31, 2019, is calculated on a jurisdictional basis. The Company estimated the foreign income tax provision using the effective income tax rate expected to be applicable for the full year.

The Company also considered recent tax law changes in response to the COVID-19 pandemic, including the Coronavirus Aid, Relief, and Economic Security (CARES) Act that was enacted in the U.S. on March 27, 2020. The tax benefits and other changes provided under the CARES Act do not materially impact the Company’s income tax provision, and does not change the Company’s evaluation of the need for a valuation allowance against deferred tax assets in the U.S. or expectations on the permanent reinvestment of undistributed earnings for certain foreign subsidiaries.
v3.20.1
STOCKHOLDERS' EQUITY
3 Months Ended
Mar. 31, 2020
Share-based Payment Arrangement [Abstract]  
STOCKHOLDERS' EQUITY STOCKHOLDERS’ EQUITY
Common Stock

The Company has authorized the issuance of Class A common stock and Class B common stock. Holders of shares of Class A common stock are entitled to one vote per share, while holders of shares of Class B common stock are entitled to ten votes per share. Shares of the Company's Class B common stock are convertible into an equivalent number of shares of its Class A common stock and generally convert into shares of its Class A common stock upon transfer. The holders of Class A common stock and Class B common stock have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares. Class A common stock and Class B common stock are referred to as "common stock" throughout these Notes to the Condensed Consolidated Financial Statements, unless otherwise noted. As of March 31, 2020, the Company was authorized to issue 1,000,000,000 shares of Class A common stock and 500,000,000 shares of Class B common stock, each with a par value of $0.0000001 per share. As of March 31, 2020, there were 359,142,301 shares of Class A common stock and 79,621,335 shares of Class B common stock outstanding. Options and awards granted following the Company's initial public offering are related to underlying Class A common stock. 

Warrants

In conjunction with the 2025 Notes offering, the Company sold the 2025 warrants whereby the 2020 Counterparties have the option to purchase a total of approximately 8.26 million shares of the Company’s Class A common stock at a price of $161.34 per share. None of the 2025 warrants were exercised as of March 31, 2020 and expire on June 1, 2025.

In conjunction with the 2023 Notes offering, the Company sold the 2023 warrants whereby the 2018 Counterparties have the option to purchase a total of approximately 11.1 million shares of the Company’s Class A common stock at a price of $109.26 per share. None of the 2023 warrants were exercised as of March 31, 2020 and expire on August 15, 2023.

In conjunction with the 2022 Notes offering, the Company sold the 2022 warrants whereby the 2017 Counterparties have the option to purchase a total of approximately 19.2 million shares of the Company’s Class A common stock at a price of $31.18 per share. None of the 2022 warrants were exercised as of March 31, 2020 and expire on June 1, 2022.

Conversion of 2022 Notes

In connection with the conversion of certain of the 2022 Notes, the Company issued 1.1 million shares of Class A common stock in the three months ended March 31, 2020.

Stock Plans

The Company maintains two share-based employee compensation plans: the 2009 Stock Plan (2009 Plan) and the 2015 Equity Incentive Plan (2015 Plan). The 2015 Plan serves as the successor to the 2009 Plan. The 2015 Plan became effective as of November 17, 2015. Outstanding awards under the 2009 Plan continue to be subject to the terms and conditions of the 2009 Plan. Since November 17, 2015, no additional awards have been nor will be granted in the future under the 2009 Plan.
Under the 2015 Plan, shares of the Company's Class A common stock are reserved for the issuance of incentive and nonstatutory stock options (ISOs and NSOs, respectively), restricted stock awards (RSAs), restricted stock units (RSUs), performance shares, and stock bonuses to qualified employees, directors, and consultants. The awards must be granted at a price per share not less than the fair market value at the date of grant. Initially, 30,000,000 shares were reserved under the 2015 Plan and any shares subject to options or other similar awards granted under the 2009 Plan that expire, are forfeited, are repurchased by the Company or otherwise terminate unexercised, will become available under the 2015 Plan. The number of shares available for issuance under the 2015 Plan will be increased on the first day of each fiscal year, in an amount equal to the least of (i) 40,000,000 shares, (ii) 5% of the outstanding shares on the last day of the immediately preceding fiscal year, or (iii) such number of shares determined by the administrator of the Plan. The administrator consists of the Board of Directors who then assigns the responsibilities to the Compensation Committee. As of March 31, 2020, the total number of shares subject to stock options, RSAs and RSUs outstanding under the 2015 Plan was 17,632,872, and 105,944,646 shares were available for future issuance. As of March 31, 2020, the total number of shares subject to stock options, RSAs and RSUs outstanding under the 2009 Plan was 15,171,723.

A summary of stock option activity for the three months ended March 31, 2020 is as follows (in thousands, except share and per share data):
Number of Stock Options Outstanding
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term
(in years)
Aggregate
Intrinsic
Value
Balance at December 31, 201923,619,804  $12.66  4.89$1,191,746  
Exercised(3,396,568) 9.09  
Forfeited(20,135) 71.99  
Balance at March 31, 202020,203,101  $10.25  4.88$811,454  
Options exercisable as of March 31, 202018,862,499  $10.25  4.40$799,553  

Restricted Stock Activity
Activity related to RSAs and RSUs during the three months ended March 31, 2020 is set forth below:
Number of
shares
Weighted
Average Grant
Date Fair Value
Unvested as of December 31, 201913,917,461  $49.90  
Granted863,415  69.78  
Vested(1,829,201) 35.56  
Forfeited(350,181) 46.05  
Unvested as of March 31, 202012,601,494  $53.43  

Share-Based Compensation
The fair value of stock options and employee stock purchase plan rights are estimated on the date of grant using the Black-Scholes-Merton option valuation model. The fair value of RSAs and RSUs is determined by the closing price of the Company’s common stock on each grant date. 
The following table summarizes the effects of share-based compensation on the Company's condensed consolidated statements of operations (in thousands):
Three Months Ended
March 31,
20202019
Cost of revenue$76  $21  
Product development57,400  42,649  
Sales and marketing6,407  6,202  
General and administrative13,420  12,216  
Total$77,303  $61,088  
        
The Company recorded $4.7 million and $4.3 million of share-based compensation expense related to the Company's 2015 Employee Stock Purchase Plan during the three months ended March 31, 2020 and 2019, respectively, which are included in the table above.

The Company capitalized $2.3 million and $1.7 million of share-based compensation expense related to capitalized software costs during the three months ended March 31, 2020 and 2019, respectively.

As of March 31, 2020, there was $657.3 million of total unrecognized compensation cost related to outstanding stock options and restricted stock awards that are expected to be recognized over a weighted-average period of 2.7 years.
v3.20.1
NET LOSS PER SHARE
3 Months Ended
Mar. 31, 2020
Earnings Per Share [Abstract]  
NET LOSS PER SHARE NET LOSS PER SHARE
Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is the same as basic net loss per share because the effects of potentially dilutive items were anti-dilutive.
The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data):
Three Months Ended
March 31,
20202019
Numerator:
Net loss$(105,891) $(38,151) 
Denominator:
Weighted-average shares used to compute basic and diluted net loss per share434,940  419,289  
Net loss per share:
Basic$(0.24) $(0.09) 
Diluted$(0.24) $(0.09) 


The following potential common shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands):

Three Months Ended
March 31,
20202019
Stock options and restricted stock units35,033  47,833  
Common stock warrants32,613  30,252  
Convertible senior notes22,478  20,305  
Unvested shares740  571  
Employee stock purchase plan269  212  
Total anti-dilutive securities91,133  99,173  
v3.20.1
RELATED PARTY TRANSACTIONS
3 Months Ended
Mar. 31, 2020
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONSIn July 2019, the Company entered into a lease agreement to lease certain office space located in St. Louis, Missouri, from an affiliate of one of the Company’s co-founders and current member of its board and directors, Mr. Jim McKelvey, under an operating lease agreement as discussed in Note 17, Commitments and Contingencies. The lease commencement date is expected to be in July 2020. The term of the agreement is 15.5 years with total future minimum lease payments over the term of approximately $42.7 million. The Company has not yet recognized a right-of-use asset and lease obligation under this agreement as of March 31, 2020.
v3.20.1
COMMITMENTS AND CONTINGENCIES
3 Months Ended
Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Operating and Finance Leases

The Company’s operating leases are primarily comprised of office facilities, with the most significant leases relating to corporate headquarters in San Francisco, and offices in Oakland and New York. The Company's leases have remaining lease terms of 1 to 12 years, some of which include options to extend for 5 year terms, or include options to terminate the leases within 1 year. None of the options to extend the leases have been included in the measurement of the right-of-use asset or the associated lease liability. The Company elected to apply the short-term lease measurement and recognition exemption to its leases where applicable. Generally, operating lease right-of-use assets and operating lease liabilities are recognized at the present value of the future lease payments, generally for the base non-cancellable lease term on the lease commencement date of each lease. The interest rate used to determine the present value of the future lease payments is the Company's incremental borrowing rate because the interest rate implicit in most of the Company's leases is not readily determinable. The Company's incremental borrowing rate is estimated to approximate the interest rate that the Company would pay to borrow on a collateralized basis with similar terms and payments as the lease, and in economic environments where the leased asset is located. Operating lease right-of-use assets also include any prepaid lease payments and lease incentives. The Company's lease agreements generally contain lease and non-lease components. Non-lease components, which primarily include payments for maintenance and utilities, are combined with lease payments and accounted for as a single lease component. The Company includes the fixed non-lease components in the determination of the right-of-use assets and operating lease liabilities. The Company records the amortization of the right-of-use asset and the accretion of lease liability as a component of rent expense in the consolidated statement of operations.

In December 2018, the Company entered into a lease arrangement for 355,762 square feet of office space in Oakland, California for a term of 12 years with options to extend the lease term for two 5 year terms. The lease commencement date was January 15, 2020. In July 2019, the Company entered into a lease arrangement for 226,158 square feet of office space in St Louis, Missouri, with an affiliate of one of the Company’s co-founders, Mr. Jim McKelvey, who is also a Company stockholder and a member of its board of directors, for a term of 15.5 years with options to extend the lease term for two 5 year terms. The Company also has an option to terminate the lease for up to 50% of the leased space any time between January 1, 2024 and December 31, 2026, as well as an option to terminate the lease for the entire property on January 1, 2034. Termination penalties specified in the lease agreement will apply if the Company exercises any of the options to terminate the lease. The lease commencement date is expected to be in July 2020 with total future minimum lease payments over the term of approximately $42.7 million.

Additionally, the Company has finance leases for data center equipment, with remaining lease terms of approximately 0.8 years.
 
The components of lease expense for the periods presented are follows (in thousands):

Three Months Ended
March 31,
20202019
Fixed operating lease costs$15,125  $6,690  
Variable operating lease costs5,724  637  
Short term lease costs1,856  441  
Sublease income(1,437) —  
Finance lease costs
Amortization of finance right-of-use assets1,054  1,293  
Interest on finance lease liabilities—  —  
Total lease costs$22,322  $9,061  


        
Other information related to leases was as follows:

March 31, 2020
Weighted Average Remaining Lease Term:
Operating leases8.8 years
Finance leases0.5 years
Weighted Average Discount Rate:
Operating leases%
Finance leases— %


Cash flows related to leases were as follows (in thousands):
Three Months Ended
March 31,
20202019
Cash flows from operating activities:
Payments for operating lease liabilities$(9,570) $(9,293) 
Cash flows from financing activities:
Principal payments on finance lease obligation$(1,054) $(1,284) 
Supplemental Cash Flow Data:
Right-of-use assets obtained in exchange for operating lease obligations$255,553  $19,918  

Future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) and future minimum finance lease payments as of March 31, 2020 are as follows (in thousands):

FinanceOperating
Year:
Remainder of 2020$1,391  $39,616  
2021—  67,683  
2022—  70,409  
2023—  65,056  
2024—  45,520  
Thereafter—  269,229  
Total$1,391  $557,513  
Less: amount representing interest—  78,640  
Less: leases executed but not yet commenced—  82,692  
Less: lease incentives—  9,284  
Total$1,391  $386,897  

The current portion of the finance lease liability is included within other current liabilities while the non-current portion is included within other non-current liabilities on the condensed consolidated balance sheets. The associated finance lease assets are included in property and equipment, net on the condensed consolidated balance sheets.
Litigation
The Company is currently subject to, and may in the future be involved in, various litigation matters, legal claims, and investigations.

The Treasurer & Tax Collector of the City and County of San Francisco (Tax Collector) has issued decisions for fiscal years 2014, 2015, 2016, and 2017 that the Tax Collector believes the Company’s primary business activity is financial services rather than information, and accordingly, the Company would be liable for the Gross Receipts Tax and Payroll Expense Tax under the rules for financial services business activities. The Company is required to pay tax assessments prior to contesting any such assessments. This requirement is commonly referred to as “pay-to-play.” In connection with the tax audits, the Company paid an additional $1.3 million for fiscal years 2014 and 2015 in the first quarter of 2018, and an additional $8.4 million for fiscal years 2016 and 2017 in the fourth quarter of 2019, as assessed by the Tax Collector, even though the Company strongly disagrees with the Tax Collector’s assessment of the Company’s primary business activity. On September 6, 2019, the Company filed a lawsuit against the Tax Collector and the City and County of San Francisco in the San Francisco County Superior Court for a refund of the $1.3 million paid for the fiscal years of 2014 and 2015. On November 14, 2019, the Company also filed a petition for redetermination with the Tax Collector for fiscal years 2016 and 2017. The Company has been in discussions with the City and County of San Francisco to resolve the matter and on May 4, 2020, entered into a settlement agreement that is subject to approval by the Mayor, Controller, and the Board of Supervisors of the City and County of San Francisco. Should the agreement not be approved or should the Company not prevail in its legal challenge against the application of San Francisco’s Gross Receipts Tax to its business, the Company estimates that it could incur additional losses associated with taxes, interest, and penalties in the range of approximately $0 to $66 million in the aggregate for the fiscal years 2016, 2017, 2018, 2019, and for the three months ended on March 31, 2020, over and above the taxes the Company has already paid under the information classification. Additional taxes, interest, and penalties for future periods could be material as well. The Company regularly assesses the likelihood of adverse outcomes resulting from tax disputes such as this and examinations for all open years to determine the necessity and adequacy of any tax reserves. The eventual outcome could differ materially from the estimates we have made in the financial statements.

From time to time, the Company is also subject to various legal matters and disputes arising in the ordinary course of business. The Company cannot at this time fairly estimate a reasonable range of exposure, if any, of the potential liability with respect to these other matters. Although occasional adverse decisions or settlements may occur, the Company does not believe that the final disposition of any of these matters will have a material adverse effect on its results of operations, financial position, or liquidity. The Company cannot give any assurance regarding the ultimate outcome of these other matters, and their resolution could be material to the Company's operating results for any particular period.
v3.20.1
SEGMENT AND GEOGRAPHICAL INFORMATION
3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
SEGMENT AND GEOGRAPHIC INFORMATION SEGMENT AND GEOGRAPHICAL INFORMATION
Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the chief operating decision maker (CODM) for purposes of allocating resources and evaluating financial performance. The Company’s CODM is the chief executive officer who reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. As such, the Company’s operations constitute a single operating segment and one reportable segment.

The Company anticipates changing its operating and reportable segments from one segment to two segments in subsequent quarters of 2020. These two segments will represent the Seller and Cash App businesses and will reflect the way the Company anticipates evaluating its business performance and managing its operations.
Revenue
Revenue by geography is based on the billing addresses of the sellers or customers. The following table sets forth revenue by geographic area (in thousands):
Three Months Ended
March 31,
20202019
Revenue
United States$1,313,586  $914,656  
International67,523  44,703  
Total net revenue$1,381,109  $959,359  

No individual country from the international markets contributed in excess of 10% of total revenue for the three months ended March 31, 2020 and March 31, 2019.

Long-Lived Assets
The following table sets forth long-lived assets by geographic area (in thousands):
March 31, 2020December 31, 2019
Long-lived assets
United States$918,351  $586,702  
International16,235  11,064  
Total long-lived assets$934,586  $597,766  
v3.20.1
SUPPLEMENTAL CASH FLOW INFORMATION
3 Months Ended
Mar. 31, 2020
Supplemental Cash Flow Elements [Abstract]  
SUPPLEMENTAL CASH FLOW INFORMATION SUPPLEMENTAL CASH FLOW INFORMATION
The supplemental disclosures of cash flow information consist of the following (in thousands):

Three Months Ended
March 31,
20202019
Analysis of cash, cash equivalents, and restricted cash
Cash and cash equivalents$1,962,316  $521,676  
Short-term restricted cash34,315  33,220  
Long-term restricted cash13,286  14,433  
Cash, cash equivalents, and restricted cash$2,009,917  $569,329  


Three Months Ended
March 31,
20202019
Supplemental Cash Flow Data:
Cash paid for interest$397  $538  
Cash paid for income taxes2,599  1,342  
Supplemental disclosures of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for operating lease obligations255,553  19,918  
Change in purchases of property and equipment in accounts payable and accrued expenses10,354  13,114  
Unpaid business combination purchase price7,338  6,447  
Fair value of common stock issued related to business combination(14,999) —  
Recovery of common stock in connection with indemnification settlement agreement—  789  
Fair value of common stock issued to settle the conversion of senior notes, due 2022(77,614) —  
v3.20.1
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
3 Months Ended
Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation
        
The accompanying interim condensed consolidated financial statements of the Company are unaudited. These interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (U.S. GAAP) and the applicable rules and regulations of the Securities and Exchange Commission (SEC) for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The December 31, 2019 condensed consolidated balance sheet was derived from the audited financial statements as of that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.

The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company's consolidated financial position, results of operations, comprehensive loss, and cash flows for the interim periods. All intercompany transactions and balances have been eliminated in consolidation. The interim results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020, or for any other future annual or interim period.

The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and related notes in the Company's Annual Report on Form 10-K for the year ended December 31, 2019.
Use of Estimates
Use of Estimates 

The preparation of the Company’s consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, as well as related disclosure of contingent assets and liabilities. Actual results could differ from the Company’s estimates. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or operating results will be materially affected. Generally, the Company's estimates and assumptions consider current and past experience, to the extent that historical experience is predictive of future performance.

Estimates, judgments, and assumptions in these consolidated financial statements include, but are not limited to, those related to revenue recognition, accrued transaction losses, credit loss allowances from marketable debt securities, contingencies, valuation of the debt component of convertible senior notes, valuation of loans held for sale, goodwill, acquired intangible assets, income and other taxes, operating and financing lease right-of-use assets and related liabilities, assessing the likelihood of adverse outcomes from claims and disputes, and share-based compensation.
Concentration of Credit Risk
Concentration of Credit Risk
        
For the three months ended March 31, 2020 and March 31, 2019, the Company had no customer that accounted for greater than 10% of total net revenue.

The Company had two third-party payment processors that represented approximately 45% and 28% of settlements receivable as of March 31, 2020. As of December 31, 2019, the Company had three parties that represented approximately 48%, 29%, and 9% of settlements receivable. All other third-party processors were insignificant.
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, marketable debt securities, settlements receivables, customer funds, and loans held for sale. The associated risk of concentration for cash and cash equivalents and restricted cash is mitigated by banking with creditworthy institutions. At certain times, amounts on deposit exceed federal deposit insurance limits. The associated risk of concentration for marketable debt securities is mitigated by holding a diversified portfolio of highly rated investments. Settlements receivable are amounts due from well-established payment processing companies and normally take one or two business days to settle which mitigates the associated risk of concentration. The associated risk of concentration for loans held for sale is partially mitigated by credit evaluations that are performed prior to facilitating the offering of loans and ongoing performance monitoring of the Company’s loan customers.
Recent Accounting Pronouncements
Recent Accounting Pronouncements

Recently adopted accounting pronouncements

In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses, which requires the measurement and recognition of expected credit losses for financial assets held. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available for sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The Company adopted this guidance effective January 1, 2020 and has applied the guidance prospectively. The Company has concluded that the adoption of the guidance did not have a material impact on the balances reported in its consolidated financial statements and has included disclosures under the guidance.

In January 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The new guidance eliminates the requirement to calculate the implied fair value of goodwill assuming a hypothetical purchase price allocation (i.e., Step 2 of the goodwill impairment test) to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value, not to exceed the carrying amount of goodwill. This standard should be adopted when the Company performs its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The amendments should be applied on a
prospective basis. The Company adopted this guidance effective January 1, 2020 and will apply the guidance during its annual goodwill impairment test for the year ending December 31, 2020. The adoption of this guidance did not have a material impact on the consolidated financial statements and related disclosures.

In July 2018, the FASB issued ASU 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement, which will remove, modify, and add disclosure requirements for fair value measurements to improve the overall usefulness of such disclosures. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted for any removed or modified disclosure requirements. Transition is on a prospective basis for the new and modified disclosures, and on a retrospective basis for disclosures that have been eliminated. The Company adopted this guidance effective January 1, 2020 and has applied the guidance prospectively, and included additional disclosures required by the new guidance relating to significant unobservable inputs used to develop Level 3 fair value measurements.

In August 2018, the FASB issued ASU 2018-15, Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which is intended to align the requirements for capitalization of implementation costs incurred in a cloud computing arrangement that is a service contract with the existing guidance for internal-use software. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted. The guidance provides flexibility in adoption, allowing for either retrospective adjustment or prospective adjustment for all implementation costs incurred after the date of adoption. The Company adopted this guidance effective January 1, 2020 and has applied the guidance prospectively. The adoption of this guidance did not have a material impact on the consolidated financial statements and related disclosures.

In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments — Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments. The amendments clarify the scope of the credit losses standard and hedge accounting among other things. The Company adopted ASC 326 on January 1, 2020 for credit losses. With respect to hedge accounting, the amendments address partial-term fair value hedges and fair value hedge basis adjustments, among other things. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years, with early adoption permitted as long an entity has also adopted the amendments in ASU 2016-13. The adoption of this guidance did not have a material impact on the consolidated financial statements and related disclosures. For entities which have already adopted ASU 2017-12, they are permitted to elect either retrospectively or prospectively adopt the amendments. The Company had previously adopted ASU 2017-12 on January 1, 2019 and therefore is eligible to and has prospectively adopted the amendments.

In December 2019, the FASB issued ASU 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes, as part of its overall simplification initiative to reduce costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Among other things, the new guidance simplifies intraperiod tax allocation and reduces the complexity in accounting for income taxes with year-to-date losses in interim periods. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years, with early adoption permitted. The Company early adopted this guidance effective January 1, 2020 and has applied the guidance prospectively. The adoption did not have a material impact on the consolidated financial statements and related disclosures.
v3.20.1
REVENUE (Tables)
3 Months Ended
Mar. 31, 2020
Revenue from Contract with Customer [Abstract]  
Schedule of Disaggregation of Revenue
The following table presents the Company's revenue disaggregated by revenue source (in thousands):

Three Months Ended
March 31,
20202019
Revenue from Contracts with Customers:
Transaction-based revenue$758,101  $656,762  
Subscription and services-based revenue255,883  190,307  
Hardware revenue20,675  18,212  
Bitcoin revenue306,098  65,528  
Revenue from other sources:
Subscription and services-based revenue$40,352  $28,550  
Schedule of Deferred Revenue
The deferred revenue balances were as follows (in thousands):

Three Months Ended
March 31,
20202019
Deferred revenue, beginning of the period$44,331  $36,451  
Deferred revenue, end of the period47,046  42,160  
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period$15,570  $12,306  
v3.20.1
INVESTMENTS IN DEBT SECURITIES (Tables)
3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Short-term and Long-term Investments
The Company's short-term and long-term investments as of March 31, 2020 are as follows (in thousands):

Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$173,424  $912  $(208) $174,128  
Corporate bonds75,440  50  (627) 74,863  
Commercial paper2,996  —  —  2,996  
Municipal securities8,837  44  (5) 8,876  
U.S. government securities238,012  1,722  (114) 239,620  
Foreign securities21,308  52  (3) 21,357  
Total$520,017  $2,780  $(957) $521,840  
Long-term debt securities:
U.S. agency securities$166,075  $704  $(466) $166,313  
Corporate bonds141,920  216  (2,161) 139,975  
Municipal securities8,464  32  (40) 8,456  
U.S. government securities177,308  2,648  (587) 179,369  
Foreign securities35,031  334  (18) 35,347  
Total$528,798  $3,934  $(3,272) $529,460  

The Company's short-term and long-term investments as of December 31, 2019 are as follows (in thousands):

Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$131,124  $409  $(11) $131,522  
Corporate bonds67,169  580  (28) 67,721  
Municipal securities6,667  109  —  6,776  
U.S. government securities264,069  1,083  (17) 265,135  
Foreign securities21,270  48  (16) 21,302  
Total$490,299  $2,229  $(72) $492,456  
Long-term debt securities:
U.S. agency securities$63,645  $612  $(189) $64,068  
Corporate bonds141,307  1,832  (61) 143,078  
Municipal securities9,594  151  (39) 9,706  
U.S. government securities294,682  1,287  (190) 295,779  
Foreign securities24,625  86  (39) 24,672  
Total$533,853  $3,968  $(518) $537,303  
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value
The Company's gross unrealized losses and fair values for those investments that were in an unrealized loss position as of March 31, 2020 and December 31, 2019, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):

March 31, 2020
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$26,172  $(208) $—  $—  $26,172  $(208) 
Corporate bonds61,012  (627) —  —  61,012  (627) 
Municipal securities5,342  (5) —  —  5,342  (5) 
U.S. government securities24,028  (114) —  —  24,028  (114) 
Foreign securities4,209  (3) —  —  4,209  (3) 
Total$120,763  $(957) $—  $—  $120,763  $(957) 
Long-term debt securities:
U.S. agency securities$23,037  $(466) $—  $—  $23,037  $(466) 
Corporate bonds106,455  (2,161) —  —  106,455  (2,161) 
Municipal securities489  (40) —  —  489  (40) 
U.S. government securities9,061  (587) —  —  9,061  (587) 
Foreign securities2,003  (18) —  —  2,003  (18) 
Total$141,045  $(3,272) $—  $—  $141,045  $(3,272) 


December 31, 2019
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$23,896  $(9) $4,996  $(2) $28,892  $(11) 
Corporate bonds5,507  (27) 2,502  (1) 8,009  (28) 
U.S. government securities21,481  (8) 14,984  (9) 36,465  (17) 
Foreign securities13,499  (16) —  —  13,499  (16) 
Total$64,383  $(60) $22,482  $(12) $86,865  $(72) 
Long-term debt securities:
U.S. agency securities$16,740  $(189) $—  $—  $16,740  $(189) 
Corporate bonds16,708  (61) —  —  16,708  (61) 
Municipal securities1,005  (39) —  —  1,005  (39) 
U.S. government securities42,210  (162) —  (28) 42,210  (190) 
Foreign securities16,383  (39) —  —  16,383  (39) 
Total$93,046  $(490) $—  $(28) $93,046  $(518) 
The gross unrealized losses and fair values for those investments that were in an unrealized loss position as of March 31, 2020 and December 31, 2019, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):

March 31, 2020
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$39,934  $(15) $—  $—  $39,934  $(15) 
U.S. government securities3,999  (55) —  —  3,999  (55) 
Total$43,933  $(70) $—  $—  $43,933  $(70) 


December 31, 2019
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. government securities$56,984  $(22) $—  $—  $56,984  $(22) 
Total$56,984  $(22) $—  $—  $56,984  $(22) 
Contractual Maturities of Short-Term and Long-Term Investments
The contractual maturities of the Company's short-term and long-term investments as of March 31, 2020 are as follows (in thousands):

Amortized CostFair Value
Due in one year or less$520,017  $521,840  
Due in one to five years528,798  529,460  
Total$1,048,815  $1,051,300  
The contractual maturities of the Company's investments within customer funds as of March 31, 2020 are as follows (in thousands):

Amortized CostFair Value
Due in one year or less$295,500  $296,351  
Due in one to five years—  —  
Total$295,500  $296,351  
v3.20.1
CUSTOMER FUNDS (Tables)
3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Assets Underlying Customer Funds
The following table presents the assets underlying customer funds (in thousands):

March 31, 2020December 31, 2019
Cash$132,908  $422,459  
Cash Equivalents:
Money market funds505,553  233  
U.S. agency securities9,999  8,585  
U.S. government securities—  6,984  
Short-term debt securities:
U.S. agency securities118,835  —  
U.S. government securities177,516  238,031  
Total$944,811  $676,292  
Investments within Customer Funds
The Company's investments within customer funds as of March 31, 2020 are as follows (in thousands):

Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. agency securities$118,750  $100  $(15) $118,835  
U.S. government securities176,750  821  (55) 177,516  
Total$295,500  $921  $(70) $296,351  
The Company's investments within customer funds as of December 31, 2019 are as follows (in thousands):

Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Short-term debt securities:
U.S. government securities$237,909  $144  $(22) $238,031  
Total$237,909  $144  $(22) $238,031  
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value
The Company's gross unrealized losses and fair values for those investments that were in an unrealized loss position as of March 31, 2020 and December 31, 2019, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):

March 31, 2020
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$26,172  $(208) $—  $—  $26,172  $(208) 
Corporate bonds61,012  (627) —  —  61,012  (627) 
Municipal securities5,342  (5) —  —  5,342  (5) 
U.S. government securities24,028  (114) —  —  24,028  (114) 
Foreign securities4,209  (3) —  —  4,209  (3) 
Total$120,763  $(957) $—  $—  $120,763  $(957) 
Long-term debt securities:
U.S. agency securities$23,037  $(466) $—  $—  $23,037  $(466) 
Corporate bonds106,455  (2,161) —  —  106,455  (2,161) 
Municipal securities489  (40) —  —  489  (40) 
U.S. government securities9,061  (587) —  —  9,061  (587) 
Foreign securities2,003  (18) —  —  2,003  (18) 
Total$141,045  $(3,272) $—  $—  $141,045  $(3,272) 


December 31, 2019
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$23,896  $(9) $4,996  $(2) $28,892  $(11) 
Corporate bonds5,507  (27) 2,502  (1) 8,009  (28) 
U.S. government securities21,481  (8) 14,984  (9) 36,465  (17) 
Foreign securities13,499  (16) —  —  13,499  (16) 
Total$64,383  $(60) $22,482  $(12) $86,865  $(72) 
Long-term debt securities:
U.S. agency securities$16,740  $(189) $—  $—  $16,740  $(189) 
Corporate bonds16,708  (61) —  —  16,708  (61) 
Municipal securities1,005  (39) —  —  1,005  (39) 
U.S. government securities42,210  (162) —  (28) 42,210  (190) 
Foreign securities16,383  (39) —  —  16,383  (39) 
Total$93,046  $(490) $—  $(28) $93,046  $(518) 
The gross unrealized losses and fair values for those investments that were in an unrealized loss position as of March 31, 2020 and December 31, 2019, aggregated by investment category and the length of time that individual securities have been in a continuous loss position are as follows (in thousands):

March 31, 2020
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. agency securities$39,934  $(15) $—  $—  $39,934  $(15) 
U.S. government securities3,999  (55) —  —  3,999  (55) 
Total$43,933  $(70) $—  $—  $43,933  $(70) 


December 31, 2019
Less than 12 monthsGreater than 12 monthsTotal
Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
Short-term debt securities:
U.S. government securities$56,984  $(22) $—  $—  $56,984  $(22) 
Total$56,984  $(22) $—  $—  $56,984  $(22) 
Contractual Maturities of Investments within Customer Funds
The contractual maturities of the Company's short-term and long-term investments as of March 31, 2020 are as follows (in thousands):

Amortized CostFair Value
Due in one year or less$520,017  $521,840  
Due in one to five years528,798  529,460  
Total$1,048,815  $1,051,300  
The contractual maturities of the Company's investments within customer funds as of March 31, 2020 are as follows (in thousands):

Amortized CostFair Value
Due in one year or less$295,500  $296,351  
Due in one to five years—  —  
Total$295,500  $296,351  
v3.20.1
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
3 Months Ended
Mar. 31, 2020
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
The Company’s financial assets and liabilities that are measured at fair value on a recurring basis are classified as follows (in thousands):
March 31, 2020December 31, 2019
Level 1Level 2Level 3Level 1Level 2Level 3
Cash Equivalents:
Money market funds$696,587  $—  $—  $213,576  $—  $—  
U.S. agency securities—  14,999  —  —  19,976  —  
Commercial paper—  12,999  —  —  —  —  
Time deposits100,296  —  —  —  —  —  
U.S. government securities5,637  —  —  46,914  —  —  
Foreign securities—  5,000  —  —  —  —  
Customer funds:
Money market funds505,553  —  —  233  —  —  
U.S. agency securities—  128,834  —  —  8,585  —  
U.S. government securities177,516  —  —  245,015  —  —  
Short-term debt securities:
U.S. agency securities—  174,128  —  —  131,522  —  
Corporate bonds—  74,863  —  —  67,721  —  
Commercial paper—  2,996  —  —  —  —  
Municipal securities—  8,876  —  —  6,776  —  
U.S. government securities239,620  —  —  265,135  —  —  
Foreign securities—  21,357  —  —  21,302  —  
Long-term debt securities:
U.S. agency securities—  166,313  —  —  64,068  —  
Corporate bonds—  139,975  —  —  143,078  —  
Municipal securities—  8,456  —  —  9,706  —  
U.S. government securities179,369  —  —  295,779  —  —  
Foreign securities—  35,347  —  —  24,672  —  
Total$1,904,578  $794,143  $—  $1,066,652  $497,406  $—  
The estimated fair value and carrying value of the convertible senior notes were as follows (in thousands):
March 31, 2020December 31, 2019
Carrying ValueFair Value (Level 2)Carrying ValueFair Value (Level 2)
2025 Notes
$835,130  $866,330  $—  $—  
2023 Notes756,298  890,143  748,564  962,516  
2022 Notes169,419  427,335  190,268  578,817  
Total$1,760,847  $2,183,808  $938,832  $1,541,333  

The estimated fair value and carrying value of loans held for sale is as follows (in thousands):

March 31, 2020December 31, 2019
Carrying ValueFair Value (Level 3)Carrying ValueFair Value (Level 3)
Loans held for sale$160,709  $165,572  $164,834  $173,360  
Total$160,709  $165,572  $164,834  $173,360  
v3.20.1
PROPERTY AND EQUIPMENT, NET (Tables)
3 Months Ended
Mar. 31, 2020
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment
The following is a summary of property and equipment, less accumulated depreciation and amortization (in thousands): 
March 31, 2020December 31, 2019
Leasehold improvements$116,407  $111,942  
Computer equipment111,010  106,469  
Capitalized software89,218  81,984  
Office furniture and equipment27,846  27,328  
Total344,481  327,723  
Less: Accumulated depreciation and amortization(193,822) (178,529) 
Property and equipment, net$150,659  $149,194  
v3.20.1
GOODWILL (Tables)
3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Change in Carrying Value of Goodwill
The change in carrying value of goodwill in the period was as follows (in thousands):
Balance at December 31, 2019$266,345  
Acquisitions22,188  
Balance at March 31, 2020$288,533  
v3.20.1
ACQUIRED INTANGIBLE ASSETS (Tables)
3 Months Ended
Mar. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Finite Lived Intangible Assets
The following table presents the detail of acquired intangible assets as of the periods presented (in thousands):
Balance at March 31, 2020
Estimated Useful LifeCostAccumulated AmortizationNet
Technology assets5 years$70,081  $(34,193) $35,888  
Customer assets12 years44,000  (7,824) 36,176  
Trade name4 years12,128  (5,248) 6,880  
Other5,299  (2,307) 2,992  
Total$131,508  $(49,572) $81,936  

Balance at December 31, 2019
Estimated Useful LifeCostAccumulated AmortizationNet
Technology assets5 years$53,900  $(31,873) $22,027  
Customer assets12 years44,000  (6,934) 37,066  
Trade name4 years11,300  (4,473) 6,827  
Other5,299  (2,140) 3,159  
Total$114,499  $(45,420) $69,079  
The changes to the carrying value of intangible assets were as follows (in thousands):

Three Months Ended
March 31,
20202019
Acquired intangible assets, net, beginning of the period$69,079  $77,102  
Acquisitions17,009  6,082  
Amortization expense(4,152) (3,487) 
Acquired intangible assets, net, end of the period$81,936  $79,697  
Schedule of Future Amortization Expense of Intangible Assets
The estimated future amortization expense of intangible assets in future periods as of March 31, 2020 is as follows (in thousands):
Remainder of 2020$11,994  
202115,479  
202213,405  
202312,153  
20249,176  
Thereafter19,729  
Total$81,936  
v3.20.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) (Tables)
3 Months Ended
Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Other Current Assets
The following table presents the detail of other current assets (in thousands):
        
March 31, 2020December 31, 2019
Inventory, net$54,719  $47,683  
Restricted cash34,315  38,873  
Processing costs receivable84,045  67,281  
Prepaid expenses31,433  22,758  
Accounts receivable, net31,515  33,863  
Other42,643  39,951  
Total$278,670  $250,409  
Schedule of Accrued Expenses and Other Current Liabilities
The following table presents the detail of accrued expenses and other current liabilities (in thousands): 
March 31, 2020December 31, 2019
Accrued expenses$126,911  $128,387  
Accrued transaction losses (i)96,661  34,771  
Accounts payable29,831  42,116  
Deferred revenue, current40,392  38,104  
Square Payroll payable (ii)29,618  27,969  
Other69,321  26,494  
Total$392,734  $297,841  

(i) The Company is exposed to potential credit losses related to transactions processed by sellers that are subsequently subject to chargebacks when the Company is unable to collect from the sellers primarily due to insolvency. Generally, the Company estimates the potential loss rates based on historical experience that is continuously adjusted for new information and incorporates, where applicable, reasonable and supportable forecasts about future expectations. In estimating the accrued transaction losses as of March 31, 2020, the Company has revised its estimates to reflect expected increased chargebacks from non-delivery of goods and services as well as increased failure rates of its sellers due to the COVID-19 outbreak. Additionally, the Company has also incorporated market related data to credit losses for similar historical periods of recessionary economic conditions and uncertainty in developing such estimates and assumptions. Given that substantially all the chargebacks are reported within a short time period after the transaction is processed, a reversion method was not considered to be necessary.

The following table summarizes the activities of the Company’s reserve for transaction losses (in thousands):
Three Months Ended
March 31,
20202019
Accrued transaction losses, beginning of the period$34,771  $33,682  
Provision for transaction losses79,303  19,808  
Charge-offs to accrued transaction losses(17,413) (17,443) 
Accrued transaction losses, end of the period$96,661  $36,047  

(ii) Square Payroll payable represents amounts received from Square Payroll product customers that will be utilized to settle the customers' employee payroll and related obligations.
Schedule of Reserve for Transaction Losses
The following table summarizes the activities of the Company’s reserve for transaction losses (in thousands):
Three Months Ended
March 31,
20202019
Accrued transaction losses, beginning of the period$34,771  $33,682  
Provision for transaction losses79,303  19,808  
Charge-offs to accrued transaction losses(17,413) (17,443) 
Accrued transaction losses, end of the period$96,661  $36,047  
v3.20.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT) (Tables)
3 Months Ended
Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Other Non-Current Assets
The following table presents the detail of other non-current assets (in thousands):

March 31, 2020December 31, 2019
Investment in non-marketable equity securities$110,000  $110,000  
Non-current lease prepayments (i)—  45,738  
Restricted cash13,286  12,715  
Other26,566  27,935  
Total$149,852  $196,388  
(i) The non-current lease prepayments as of December 31, 2019, have been reclassified to the operating lease right-of-use assets upon lease commencement during the quarter ended March 31, 2020.
Schedule of Other Non-Current Liabilities
The following table presents the detail of other non-current liabilities (in thousands):
March 31, 2020December 31, 2019
Statutory liabilities (i)$56,371  $54,762  
Deferred revenue, non-current6,654  6,227  
Other17,836  33,472  
Total$80,861  $94,461  

(i) Statutory liabilities represent loss contingencies that may arise from the Company's interpretation and application of certain guidelines and rules issued by various federal, state, local, and foreign regulatory authorities.
v3.20.1
INDEBTEDNESS (Tables)
3 Months Ended
Mar. 31, 2020
Debt Disclosure [Abstract]  
Net Carrying Amount of Convertible Notes
The net carrying amount of the Notes were as follows (in thousands):

Principal outstandingUnamortized debt discountUnamortized debt issuance costsNet carrying value
March 31, 2020
2025 Notes$1,000,000  $(151,680) $(13,190) $835,130  
2023 Notes862,500  (103,016) (3,186) 756,298  
2022 Notes186,251  (15,149) (1,683) 169,419  
Total$2,048,751  $(269,845) $(18,059) $1,760,847  
December 31, 2019
2023 Notes$862,500  $(110,518) $(3,418) $748,564  
2022 Notes211,726  (19,312) (2,146) 190,268  
Total$1,074,226  $(129,830) $(5,564) $938,832  


The net carrying amount of the equity component of the Notes were as follows (in thousands):

Amount allocated to conversion optionLess: allocated issuance costsEquity component, net
March 31, 2020
2025 Notes$154,600  $(2,342) $152,258  
2023 Notes155,250  (1,231) 154,019  
2022 Notes36,490  (974) 35,516  
Total$346,340  $(4,547) $341,793  
December 31, 2019
2023 Notes$155,250  $(1,231) $154,019  
2022 Notes41,481  (1,108) 40,373  
Total$196,731  $(2,339) $194,392  
Interest Expense on Convertible Notes
The Company recognized interest expense on the Notes as follows (in thousands, except for percentages):

Three Months Ended
March 31,
20202019
Contractual interest expense$1,373  $1,277  
Amortization of debt discount and issuance costs12,528  9,608  
Total$13,901  $10,885  
v3.20.1
STOCKHOLDERS' EQUITY (Tables)
3 Months Ended
Mar. 31, 2020
Share-based Payment Arrangement [Abstract]  
Summary of Stock Option Activity
A summary of stock option activity for the three months ended March 31, 2020 is as follows (in thousands, except share and per share data):
Number of Stock Options Outstanding
Weighted
Average
Exercise
Price
Weighted
Average
Remaining
Contractual
Term
(in years)
Aggregate
Intrinsic
Value
Balance at December 31, 201923,619,804  $12.66  4.89$1,191,746  
Exercised(3,396,568) 9.09  
Forfeited(20,135) 71.99  
Balance at March 31, 202020,203,101  $10.25  4.88$811,454  
Options exercisable as of March 31, 202018,862,499  $10.25  4.40$799,553  
Schedule of Restricted Stock Awards and Restricted Stock Units Activity
Activity related to RSAs and RSUs during the three months ended March 31, 2020 is set forth below:
Number of
shares
Weighted
Average Grant
Date Fair Value
Unvested as of December 31, 201913,917,461  $49.90  
Granted863,415  69.78  
Vested(1,829,201) 35.56  
Forfeited(350,181) 46.05  
Unvested as of March 31, 202012,601,494  $53.43  
Summary of the Effect of Share-Based Compensation on the Condensed Consolidated Statements of Operations
The following table summarizes the effects of share-based compensation on the Company's condensed consolidated statements of operations (in thousands):
Three Months Ended
March 31,
20202019
Cost of revenue$76  $21  
Product development57,400  42,649  
Sales and marketing6,407  6,202  
General and administrative13,420  12,216  
Total$77,303  $61,088  
v3.20.1
NET LOSS PER SHARE (Tables)
3 Months Ended
Mar. 31, 2020
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Net Loss Per Share
The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data):
Three Months Ended
March 31,
20202019
Numerator:
Net loss$(105,891) $(38,151) 
Denominator:
Weighted-average shares used to compute basic and diluted net loss per share434,940  419,289  
Net loss per share:
Basic$(0.24) $(0.09) 
Diluted$(0.24) $(0.09) 
Schedule of Antidilutive Securities Excluded from Calculation of Diluted Net Income (Loss) Per Share
The following potential common shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands):

Three Months Ended
March 31,
20202019
Stock options and restricted stock units35,033  47,833  
Common stock warrants32,613  30,252  
Convertible senior notes22,478  20,305  
Unvested shares740  571  
Employee stock purchase plan269  212  
Total anti-dilutive securities91,133  99,173  
v3.20.1
COMMITMENTS AND CONTINGENCIES (Tables)
3 Months Ended
Mar. 31, 2020
Commitments and Contingencies Disclosure [Abstract]  
Schedule of Lease Expense Components and Other Information Related to Leases
The components of lease expense for the periods presented are follows (in thousands):

Three Months Ended
March 31,
20202019
Fixed operating lease costs$15,125  $6,690  
Variable operating lease costs5,724  637  
Short term lease costs1,856  441  
Sublease income(1,437) —  
Finance lease costs
Amortization of finance right-of-use assets1,054  1,293  
Interest on finance lease liabilities—  —  
Total lease costs$22,322  $9,061  


        
Other information related to leases was as follows:

March 31, 2020
Weighted Average Remaining Lease Term:
Operating leases8.8 years
Finance leases0.5 years
Weighted Average Discount Rate:
Operating leases%
Finance leases— %


Cash flows related to leases were as follows (in thousands):
Three Months Ended
March 31,
20202019
Cash flows from operating activities:
Payments for operating lease liabilities$(9,570) $(9,293) 
Cash flows from financing activities:
Principal payments on finance lease obligation$(1,054) $(1,284) 
Supplemental Cash Flow Data:
Right-of-use assets obtained in exchange for operating lease obligations$255,553  $19,918  
Future Minimum Lease Payments under Non-Cancelable Operating Leases
Future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) and future minimum finance lease payments as of March 31, 2020 are as follows (in thousands):

FinanceOperating
Year:
Remainder of 2020$1,391  $39,616  
2021—  67,683  
2022—  70,409  
2023—  65,056  
2024—  45,520  
Thereafter—  269,229  
Total$1,391  $557,513  
Less: amount representing interest—  78,640  
Less: leases executed but not yet commenced—  82,692  
Less: lease incentives—  9,284  
Total$1,391  $386,897  
Future Minimum Finance Lease Payments
Future minimum lease payments under non-cancelable operating leases (with initial lease terms in excess of one year) and future minimum finance lease payments as of March 31, 2020 are as follows (in thousands):

FinanceOperating
Year:
Remainder of 2020$1,391  $39,616  
2021—  67,683  
2022—  70,409  
2023—  65,056  
2024—  45,520  
Thereafter—  269,229  
Total$1,391  $557,513  
Less: amount representing interest—  78,640  
Less: leases executed but not yet commenced—  82,692  
Less: lease incentives—  9,284  
Total$1,391  $386,897  
v3.20.1
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables)
3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Revenue by Geographic Area
Revenue by geography is based on the billing addresses of the sellers or customers. The following table sets forth revenue by geographic area (in thousands):
Three Months Ended
March 31,
20202019
Revenue
United States$1,313,586  $914,656  
International67,523  44,703  
Total net revenue$1,381,109  $959,359  
Long-lived Assets by Geographic Area
The following table sets forth long-lived assets by geographic area (in thousands):
March 31, 2020December 31, 2019
Long-lived assets
United States$918,351  $586,702  
International16,235  11,064  
Total long-lived assets$934,586  $597,766  
v3.20.1
SUPPLEMENTAL CASH FLOW INFORMATION (Tables)
3 Months Ended
Mar. 31, 2020
Supplemental Cash Flow Elements [Abstract]  
Schedule of Cash and Cash Equivalents
The supplemental disclosures of cash flow information consist of the following (in thousands):

Three Months Ended
March 31,
20202019
Analysis of cash, cash equivalents, and restricted cash
Cash and cash equivalents$1,962,316  $521,676  
Short-term restricted cash34,315  33,220  
Long-term restricted cash13,286  14,433  
Cash, cash equivalents, and restricted cash$2,009,917  $569,329  
Restrictions on Cash and Cash Equivalents
The supplemental disclosures of cash flow information consist of the following (in thousands):

Three Months Ended
March 31,
20202019
Analysis of cash, cash equivalents, and restricted cash
Cash and cash equivalents$1,962,316  $521,676  
Short-term restricted cash34,315  33,220  
Long-term restricted cash13,286  14,433  
Cash, cash equivalents, and restricted cash$2,009,917  $569,329  
Schedule of Cash Flow, Supplemental Disclosures
Three Months Ended
March 31,
20202019
Supplemental Cash Flow Data:
Cash paid for interest$397  $538  
Cash paid for income taxes2,599  1,342  
Supplemental disclosures of non-cash investing and financing activities:
Right-of-use assets obtained in exchange for operating lease obligations255,553  19,918  
Change in purchases of property and equipment in accounts payable and accrued expenses10,354  13,114  
Unpaid business combination purchase price7,338  6,447  
Fair value of common stock issued related to business combination(14,999) —  
Recovery of common stock in connection with indemnification settlement agreement—  789  
Fair value of common stock issued to settle the conversion of senior notes, due 2022(77,614) —  
v3.20.1
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2020
USD ($)
third_party_processor
customer
Mar. 31, 2019
USD ($)
customer
Dec. 31, 2019
third_party_processor
Minimum      
Concentration Risk [Line Items]      
Settlements receivable period 1 day    
Maximum      
Concentration Risk [Line Items]      
Settlements receivable period 2 days    
Revenue Benchmark | Customer Concentration Risk      
Concentration Risk [Line Items]      
Number of customers accounting for greater than 10% of total net revenue | customer 0 0  
Settlements Receivable | Credit Concentration Risk      
Concentration Risk [Line Items]      
Number of third party processors | third_party_processor 2   3
Settlements Receivable | Credit Concentration Risk | Third Party Processor One      
Concentration Risk [Line Items]      
Concentration risk, settlements receivable 45.00%   48.00%
Settlements Receivable | Credit Concentration Risk | Third Party Processor Two      
Concentration Risk [Line Items]      
Concentration risk, settlements receivable 28.00%   29.00%
Settlements Receivable | Credit Concentration Risk | Third Party Processor Three      
Concentration Risk [Line Items]      
Concentration risk, settlements receivable     9.00%
Transaction Losses      
Concentration Risk [Line Items]      
Provision for transaction losses $ 79,303 $ 19,808  
Loans Receivable Held-For-Sale      
Concentration Risk [Line Items]      
Excess amortized cost over fair value of loans $ 22,000 $ 6,700  
v3.20.1
REVENUE - Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Transaction-based revenue    
Disaggregation of Revenue [Line Items]    
Revenue from contracts with customers $ 758,101 $ 656,762
Subscription and services-based revenue    
Disaggregation of Revenue [Line Items]    
Revenue from contracts with customers 255,883 190,307
Revenues from other sources 40,352 28,550
Hardware revenue    
Disaggregation of Revenue [Line Items]    
Revenue from contracts with customers 20,675 18,212
Bitcoin revenue    
Disaggregation of Revenue [Line Items]    
Revenue from contracts with customers $ 306,098 $ 65,528
v3.20.1
REVENUE - Deferred Revenue (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Movement in Deferred Revenue [Roll Forward]    
Deferred revenue, beginning of the period $ 44,331 $ 36,451
Deferred revenue, end of the period 47,046 42,160
Revenue recognized in the period from amounts included in deferred revenue at the beginning of the period $ 15,570 $ 12,306
v3.20.1
INVESTMENTS IN DEBT SECURITIES - Short-Term and Long-Term Investments (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 1,048,815  
Fair Value 1,051,300  
Short-term debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 520,017 $ 490,299
Gross Unrealized Gains 2,780 2,229
Gross Unrealized Losses (957) (72)
Fair Value 521,840 492,456
Long-term debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 528,798 533,853
Gross Unrealized Gains 3,934 3,968
Gross Unrealized Losses (3,272) (518)
Fair Value 529,460 537,303
U.S. agency securities | Short-term debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 173,424 131,124
Gross Unrealized Gains 912 409
Gross Unrealized Losses (208) (11)
Fair Value 174,128 131,522
U.S. agency securities | Long-term debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 166,075 63,645
Gross Unrealized Gains 704 612
Gross Unrealized Losses (466) (189)
Fair Value 166,313 64,068
Corporate bonds | Short-term debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 75,440 67,169
Gross Unrealized Gains 50 580
Gross Unrealized Losses (627) (28)
Fair Value 74,863 67,721
Corporate bonds | Long-term debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 141,920 141,307
Gross Unrealized Gains 216 1,832
Gross Unrealized Losses (2,161) (61)
Fair Value 139,975 143,078
Commercial paper | Short-term debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 2,996  
Gross Unrealized Gains 0  
Gross Unrealized Losses 0  
Fair Value 2,996  
Municipal securities | Short-term debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 8,837 6,667
Gross Unrealized Gains 44 109
Gross Unrealized Losses (5) 0
Fair Value 8,876 6,776
Municipal securities | Long-term debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 8,464 9,594
Gross Unrealized Gains 32 151
Gross Unrealized Losses (40) (39)
Fair Value 8,456 9,706
U.S. government securities | Short-term debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 238,012 264,069
Gross Unrealized Gains 1,722 1,083
Gross Unrealized Losses (114) (17)
Fair Value 239,620 265,135
U.S. government securities | Long-term debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 177,308 294,682
Gross Unrealized Gains 2,648 1,287
Gross Unrealized Losses (587) (190)
Fair Value 179,369 295,779
Foreign securities | Short-term debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 21,308 21,270
Gross Unrealized Gains 52 48
Gross Unrealized Losses (3) (16)
Fair Value 21,357 21,302
Foreign securities | Long-term debt securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 35,031 24,625
Gross Unrealized Gains 334 86
Gross Unrealized Losses (18) (39)
Fair Value $ 35,347 $ 24,672
v3.20.1
INVESTMENTS IN DEBT SECURITIES - Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Short-term debt securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value $ 120,763 $ 64,383
Less than 12 Months, Gross Unrealized Losses (957) (60)
Greater than 12 months, Fair Value 0 22,482
Greater than 12 months, Gross Unrealized Losses 0 (12)
Total, Fair Value 120,763 86,865
Total, Gross Unrealized Losses (957) (72)
Short-term debt securities | U.S. agency securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 26,172 23,896
Less than 12 Months, Gross Unrealized Losses (208) (9)
Greater than 12 months, Fair Value 0 4,996
Greater than 12 months, Gross Unrealized Losses 0 (2)
Total, Fair Value 26,172 28,892
Total, Gross Unrealized Losses (208) (11)
Short-term debt securities | Corporate bonds    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 61,012 5,507
Less than 12 Months, Gross Unrealized Losses (627) (27)
Greater than 12 months, Fair Value 0 2,502
Greater than 12 months, Gross Unrealized Losses 0 (1)
Total, Fair Value 61,012 8,009
Total, Gross Unrealized Losses (627) (28)
Short-term debt securities | Municipal securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 5,342  
Less than 12 Months, Gross Unrealized Losses (5)  
Greater than 12 months, Fair Value 0  
Greater than 12 months, Gross Unrealized Losses 0  
Total, Fair Value 5,342  
Total, Gross Unrealized Losses (5)  
Short-term debt securities | U.S. government securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 24,028 21,481
Less than 12 Months, Gross Unrealized Losses (114) (8)
Greater than 12 months, Fair Value 0 14,984
Greater than 12 months, Gross Unrealized Losses 0 (9)
Total, Fair Value 24,028 36,465
Total, Gross Unrealized Losses (114) (17)
Short-term debt securities | Foreign securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 4,209 13,499
Less than 12 Months, Gross Unrealized Losses (3) (16)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 0
Total, Fair Value 4,209 13,499
Total, Gross Unrealized Losses (3) (16)
Long-term debt securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 141,045 93,046
Less than 12 Months, Gross Unrealized Losses (3,272) (490)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 (28)
Total, Fair Value 141,045 93,046
Total, Gross Unrealized Losses (3,272) (518)
Long-term debt securities | U.S. agency securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 23,037 16,740
Less than 12 Months, Gross Unrealized Losses (466) (189)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 0
Total, Fair Value 23,037 16,740
Total, Gross Unrealized Losses (466) (189)
Long-term debt securities | Corporate bonds    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 106,455 16,708
Less than 12 Months, Gross Unrealized Losses (2,161) (61)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 0
Total, Fair Value 106,455 16,708
Total, Gross Unrealized Losses (2,161) (61)
Long-term debt securities | Municipal securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 489 1,005
Less than 12 Months, Gross Unrealized Losses (40) (39)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 0
Total, Fair Value 489 1,005
Total, Gross Unrealized Losses (40) (39)
Long-term debt securities | U.S. government securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 9,061 42,210
Less than 12 Months, Gross Unrealized Losses (587) (162)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 (28)
Total, Fair Value 9,061 42,210
Total, Gross Unrealized Losses (587) (190)
Long-term debt securities | Foreign securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 2,003 16,383
Less than 12 Months, Gross Unrealized Losses (18) (39)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 0
Total, Fair Value 2,003 16,383
Total, Gross Unrealized Losses $ (18) $ (39)
v3.20.1
INVESTMENTS IN DEBT SECURITIES - Contractual Maturities of Short-Term and Long-Term Investments (Details)
$ in Thousands
Mar. 31, 2020
USD ($)
Amortized Cost  
Due in one year or less $ 520,017
Due in one to five years 528,798
Amortized Cost 1,048,815
Fair Value  
Due in one year or less 521,840
Due in one to five years 529,460
Fair Value $ 1,051,300
v3.20.1
CUSTOMER FUNDS - Assets Underlying Customer Funds (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]    
Customer funds $ 944,811 $ 676,292
U.S. agency securities    
Debt Securities, Available-for-sale [Line Items]    
Customer funds 118,835 0
U.S. government securities    
Debt Securities, Available-for-sale [Line Items]    
Customer funds 177,516 238,031
Cash    
Debt Securities, Available-for-sale [Line Items]    
Customer funds 132,908 422,459
Cash Equivalents | Money market funds    
Debt Securities, Available-for-sale [Line Items]    
Customer funds 505,553 233
Cash Equivalents | U.S. agency securities    
Debt Securities, Available-for-sale [Line Items]    
Customer funds 9,999 8,585
Cash Equivalents | U.S. government securities    
Debt Securities, Available-for-sale [Line Items]    
Customer funds $ 0 $ 6,984
v3.20.1
CUSTOMER FUNDS - Investments within Customer Funds (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 1,048,815  
Fair Value 1,051,300  
Customer funds    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 295,500 $ 237,909
Gross Unrealized Gains 921 144
Gross Unrealized Losses (70) (22)
Fair Value 296,351 238,031
Customer funds | U.S. agency securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 118,750  
Gross Unrealized Gains 100  
Gross Unrealized Losses (15)  
Fair Value 118,835  
Customer funds | U.S. government securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 176,750 237,909
Gross Unrealized Gains 821 144
Gross Unrealized Losses (55) (22)
Fair Value $ 177,516 $ 238,031
v3.20.1
CUSTOMER FUNDS - Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value (Details) - Customer funds - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value $ 43,933 $ 56,984
Less than 12 Months, Gross Unrealized Losses (70) (22)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 0
Total, Fair Value 43,933 56,984
Total, Gross Unrealized Losses (70) (22)
U.S. agency securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 39,934  
Less than 12 Months, Gross Unrealized Losses (15)  
Greater than 12 months, Fair Value 0  
Greater than 12 months, Gross Unrealized Losses 0  
Total, Fair Value 39,934  
Total, Gross Unrealized Losses (15)  
U.S. government securities    
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]    
Less than 12 Months, Fair Value 3,999 56,984
Less than 12 Months, Gross Unrealized Losses (55) (22)
Greater than 12 months, Fair Value 0 0
Greater than 12 months, Gross Unrealized Losses 0 0
Total, Fair Value 3,999 56,984
Total, Gross Unrealized Losses $ (55) $ (22)
v3.20.1
CUSTOMER FUNDS - Contractual Maturities of Investments within Customer Funds (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Amortized Cost    
Due in one year or less $ 520,017  
Due in one to five years 528,798  
Amortized Cost 1,048,815  
Fair Value    
Due in one year or less 521,840  
Due in one to five years 529,460  
Fair Value 1,051,300  
Customer funds    
Amortized Cost    
Due in one year or less 295,500  
Due in one to five years 0  
Amortized Cost 295,500 $ 237,909
Fair Value    
Due in one year or less 296,351  
Due in one to five years 0  
Fair Value $ 296,351 $ 238,031
v3.20.1
FAIR VALUE OF FINANCIAL INSTRUMENTS - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Customer funds $ 944,811 $ 676,292
Short-term debt securities 521,840 492,456
Long-term debt securities 529,460 537,303
U.S. agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Customer funds 118,835 0
U.S. government securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Customer funds 177,516 238,031
Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 1,904,578 1,066,652
Fair Value, Measurements, Recurring | Level 1 | Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 696,587 213,576
Customer funds 505,553 233
Fair Value, Measurements, Recurring | Level 1 | U.S. agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Customer funds 0 0
Short-term debt securities 0 0
Long-term debt securities 0 0
Fair Value, Measurements, Recurring | Level 1 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Fair Value, Measurements, Recurring | Level 1 | Time deposits    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 100,296 0
Fair Value, Measurements, Recurring | Level 1 | Corporate bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 0 0
Long-term debt securities 0 0
Fair Value, Measurements, Recurring | Level 1 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 0 0
Fair Value, Measurements, Recurring | Level 1 | Municipal securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 0 0
Long-term debt securities 0 0
Fair Value, Measurements, Recurring | Level 1 | U.S. government securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 5,637 46,914
Customer funds 177,516 245,015
Short-term debt securities 239,620 265,135
Long-term debt securities 179,369 295,779
Fair Value, Measurements, Recurring | Level 1 | Foreign securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Short-term debt securities 0 0
Long-term debt securities 0 0
Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 794,143 497,406
Fair Value, Measurements, Recurring | Level 2 | Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Customer funds 0 0
Fair Value, Measurements, Recurring | Level 2 | U.S. agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 14,999 19,976
Customer funds 128,834 8,585
Short-term debt securities 174,128 131,522
Long-term debt securities 166,313 64,068
Fair Value, Measurements, Recurring | Level 2 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 12,999 0
Fair Value, Measurements, Recurring | Level 2 | Time deposits    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Fair Value, Measurements, Recurring | Level 2 | Corporate bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 74,863 67,721
Long-term debt securities 139,975 143,078
Fair Value, Measurements, Recurring | Level 2 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 2,996 0
Fair Value, Measurements, Recurring | Level 2 | Municipal securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 8,876 6,776
Long-term debt securities 8,456 9,706
Fair Value, Measurements, Recurring | Level 2 | U.S. government securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Customer funds 0 0
Short-term debt securities 0 0
Long-term debt securities 0 0
Fair Value, Measurements, Recurring | Level 2 | Foreign securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 5,000 0
Short-term debt securities 21,357 21,302
Long-term debt securities 35,347 24,672
Fair Value, Measurements, Recurring | Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total 0 0
Fair Value, Measurements, Recurring | Level 3 | Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Customer funds 0 0
Fair Value, Measurements, Recurring | Level 3 | U.S. agency securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Customer funds 0 0
Short-term debt securities 0 0
Long-term debt securities 0 0
Fair Value, Measurements, Recurring | Level 3 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Fair Value, Measurements, Recurring | Level 3 | Time deposits    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Fair Value, Measurements, Recurring | Level 3 | Corporate bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 0 0
Long-term debt securities 0 0
Fair Value, Measurements, Recurring | Level 3 | Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 0 0
Fair Value, Measurements, Recurring | Level 3 | Municipal securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term debt securities 0 0
Long-term debt securities 0 0
Fair Value, Measurements, Recurring | Level 3 | U.S. government securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Customer funds 0 0
Short-term debt securities 0 0
Long-term debt securities 0 0
Fair Value, Measurements, Recurring | Level 3 | Foreign securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 0
Short-term debt securities 0 0
Long-term debt securities $ 0 $ 0
v3.20.1
FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value of Convertible Senior Notes (Details) - Level 2 - Fair Value, Measurements, Recurring - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes $ 1,760,847 $ 938,832
Fair Value (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes 2,183,808 1,541,333
2025 Notes | Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes 835,130 0
2025 Notes | Fair Value (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes 866,330 0
2023 Notes | Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes 756,298 748,564
2023 Notes | Fair Value (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes 890,143 962,516
2022 Notes | Carrying Value    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes 169,419 190,268
2022 Notes | Fair Value (Level 2)    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes $ 427,335 $ 578,817
v3.20.1
FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair Value of Loans Held for Sale (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Carrying Value | Level 3 | Fair Value, Measurements, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for sale $ 160,709   $ 164,834
Fair Value (Level 3) | Level 3 | Fair Value, Measurements, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Loans held for sale 165,572   $ 173,360
Loans Receivable Held-For-Sale      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Excess amortized cost over fair value of loans $ 22,000 $ 6,700  
v3.20.1
PROPERTY AND EQUIPMENT, NET (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Dec. 31, 2019
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 344,481   $ 327,723
Less: Accumulated depreciation and amortization (193,822)   (178,529)
Property and equipment, net 150,659   149,194
Depreciation and amortization expense 15,900 $ 15,500  
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 116,407   111,942
Computer equipment      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 111,010   106,469
Capitalized software      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross 89,218   81,984
Office furniture and equipment      
Property, Plant and Equipment [Line Items]      
Property and equipment, gross $ 27,846   $ 27,328
v3.20.1
ACQUISITIONS - Narrative (Details) - USD ($)
3 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Business Acquisition [Line Items]    
Goodwill $ 288,533,000 $ 266,345,000
Technology Company    
Business Acquisition [Line Items]    
Percent of outstanding shares acquired 100.00%  
Fair value of consideration transferred $ 36,600,000  
Cash consideration 21,600,000  
Equity consideration 15,000,000.0  
Goodwill 22,200,000  
Intangible assets, other than goodwill 17,000,000.0  
Goodwill amount expected to be tax deductible 0  
Intangible assets (excluding goodwill) amount expected to be tax deductible $ 0  
v3.20.1
GOODWILL (Details) - USD ($)
3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Goodwill [Roll Forward]    
Goodwill, beginning balance $ 266,345,000  
Acquisitions 22,188,000  
Goodwill, ending balance 288,533,000 $ 266,345,000
Goodwill, impairment charges $ 0 $ 0
v3.20.1
ACQUIRED INTANGIBLE ASSETS - Schedule of Acquired Intangible Assets (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
Dec. 31, 2018
Acquired Finite-Lived Intangible Assets [Line Items]        
Cost $ 131,508 $ 114,499    
Accumulated Amortization (49,572) (45,420)    
Net 81,936 69,079 $ 79,697 $ 77,102
Technology assets        
Acquired Finite-Lived Intangible Assets [Line Items]        
Cost 70,081 53,900    
Accumulated Amortization (34,193) (31,873)    
Net $ 35,888 $ 22,027    
Amortization period 5 years 5 years    
Customer assets        
Acquired Finite-Lived Intangible Assets [Line Items]        
Cost $ 44,000 $ 44,000    
Accumulated Amortization (7,824) (6,934)    
Net $ 36,176 $ 37,066    
Amortization period 12 years 12 years    
Trade name        
Acquired Finite-Lived Intangible Assets [Line Items]        
Cost $ 12,128 $ 11,300    
Accumulated Amortization (5,248) (4,473)    
Net $ 6,880 $ 6,827    
Amortization period 4 years 4 years    
Other        
Acquired Finite-Lived Intangible Assets [Line Items]        
Cost $ 5,299 $ 5,299    
Accumulated Amortization (2,307) (2,140)    
Net $ 2,992 $ 3,159    
v3.20.1
ACQUIRED INTANGIBLE ASSETS - Narrative (Details)
3 Months Ended
Mar. 31, 2020
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible assets impairment $ 0
v3.20.1
ACQUIRED INTANGIBLE ASSETS - Change in Carrying Value of Intangible Assets (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Finite-lived Intangible Assets [Roll Forward]    
Acquired intangible assets, net, beginning of the period $ 69,079 $ 77,102
Acquisitions 17,009 6,082
Amortization expense (4,152) (3,487)
Acquired intangible assets, net, end of the period $ 81,936 $ 79,697
v3.20.1
ACQUIRED INTANGIBLE ASSETS - Future Amortization Expense of Intangible Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]        
Remainder of 2020 $ 11,994      
2021 15,479      
2022 13,405      
2023 12,153      
2024 9,176      
Thereafter 19,729      
Net $ 81,936 $ 69,079 $ 79,697 $ 77,102
v3.20.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) - Other Current Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Inventory, net $ 54,719 $ 47,683  
Restricted cash 34,315 38,873 $ 33,220
Processing costs receivable 84,045 67,281  
Prepaid expenses 31,433 22,758  
Accounts receivable, net 31,515 33,863  
Other 42,643 39,951  
Total $ 278,670 $ 250,409  
v3.20.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) - Accrued Expenses and Other Current Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued expenses $ 126,911 $ 128,387
Accrued transaction losses 96,661 34,771
Accounts payable 29,831 42,116
Deferred revenue, current 40,392 38,104
Square Payroll payable 29,618 27,969
Other 69,321 26,494
Total $ 392,734 $ 297,841
v3.20.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) - Schedule of Reserve for Transaction Losses (Details) - Transaction Losses - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Loss Contingency Accrual [Roll Forward]    
Accrued transaction losses, beginning of the period $ 34,771 $ 33,682
Provision for transaction losses 79,303 19,808
Charge-offs to accrued transaction losses (17,413) (17,443)
Accrued transaction losses, end of the period $ 96,661 $ 36,047
v3.20.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT) - Other Non-Current Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Investment in non-marketable equity securities $ 110,000 $ 110,000  
Non-current lease prepayments 0 45,738  
Restricted cash 13,286 12,715 $ 14,433
Other 26,566 27,935  
Total $ 149,852 $ 196,388  
v3.20.1
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT) - Other Non-Current Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Statutory liabilities $ 56,371 $ 54,762
Deferred revenue, non-current 6,654 6,227
Other 17,836 33,472
Total $ 80,861 $ 94,461
v3.20.1
INDEBTEDNESS - Revolving Credit Facility Narrative (Details) - Revolving Credit Facility - Line of Credit - USD ($)
1 Months Ended 3 Months Ended
May 06, 2020
Nov. 30, 2015
Mar. 31, 2020
Mar. 31, 2019
2015 Credit Facility        
Debt Instrument [Line Items]        
Maximum borrowing capacity   $ 375,000,000.0    
Amounts drawn to date     $ 0  
Administrative agent fee   $ 100,000    
Unused commitment fee percentage   0.15%    
Unused commitment fees     $ 100,000 $ 100,000
2020 Credit Facility | Subsequent Event        
Debt Instrument [Line Items]        
Maximum borrowing capacity $ 500,000,000.0      
Amounts drawn to date 0      
Letters of credit outstanding $ 0      
Unused commitment fee percentage 0.15%      
Federal Funds Rate | 2015 Credit Facility        
Debt Instrument [Line Items]        
Basis spread on variable rate   0.50%    
Federal Funds Rate | 2020 Credit Facility | Subsequent Event        
Debt Instrument [Line Items]        
Basis spread on variable rate 0.50%      
One Month LIBOR | Minimum | 2015 Credit Facility        
Debt Instrument [Line Items]        
Basis spread on variable rate   0.00%    
One Month LIBOR | Maximum | 2015 Credit Facility        
Debt Instrument [Line Items]        
Basis spread on variable rate   1.00%    
LIBOR | 2020 Credit Facility | Subsequent Event        
Debt Instrument [Line Items]        
Basis spread on variable rate 1.00%      
LIBOR | Minimum | 2015 Credit Facility        
Debt Instrument [Line Items]        
Basis spread on variable rate   1.00%    
LIBOR | Minimum | 2020 Credit Facility | Subsequent Event        
Debt Instrument [Line Items]        
Basis spread on variable rate 1.25%      
Additional basis spread on variable rate 0.25%      
LIBOR | Maximum | 2015 Credit Facility        
Debt Instrument [Line Items]        
Basis spread on variable rate   2.00%    
LIBOR | Maximum | 2020 Credit Facility | Subsequent Event        
Debt Instrument [Line Items]        
Basis spread on variable rate 1.75%      
Additional basis spread on variable rate 0.75%      
v3.20.1
INDEBTEDNESS - Convertible Senior Notes Narrative (Details)
$ / shares in Units, shares in Millions
3 Months Ended 27 Months Ended
Mar. 05, 2020
USD ($)
day
$ / shares
May 25, 2018
USD ($)
day
$ / shares
Mar. 06, 2017
USD ($)
day
$ / shares
Mar. 31, 2020
USD ($)
shares
Mar. 31, 2019
USD ($)
Mar. 31, 2020
USD ($)
shares
Dec. 31, 2019
USD ($)
Debt Instrument [Line Items]              
Loss on extinguishment of long-term debt       $ 990,000 $ 0    
Convertible Debt              
Debt Instrument [Line Items]              
Conversion price (in USD per share) | $ / shares $ 121.01 $ 77.85 $ 22.95        
Carrying amount of equity component       341,793,000   $ 341,793,000 $ 194,392,000
Issuance costs attributable to the liability component       18,059,000   18,059,000 5,564,000
Convertible Debt | 2025 Notes              
Debt Instrument [Line Items]              
Aggregate principal amount $ 1,000,000,000.0            
Interest rate 0.125%            
Conversion rate 0.0082641            
Conversion price (in USD per share) | $ / shares $ 121.01            
Redemption price, percentage 100.00%            
Carrying amount of equity component $ 154,600,000     $ 152,258,000   $ 152,258,000  
Effective interest rate of the liability component 3.81%     3.81%   3.81%  
Discounts and commissions payable $ 14,300,000            
Third party offering costs 900,000            
Issuance costs attributable to the liability component $ 12,800,000     $ 13,190,000   $ 13,190,000  
Amount of if-converted value in excess of outstanding principal amount       0      
Convertible Debt | 2025 Notes | Debt Instrument, Conversion Term One              
Debt Instrument [Line Items]              
Threshold trading days | day 20            
Threshold consecutive trading days | day 30            
Threshold percentage of stock price trigger 130.00%            
Convertible Debt | 2025 Notes | Debt Instrument Conversion Term Two              
Debt Instrument [Line Items]              
Threshold trading days | day 5            
Threshold consecutive trading days | day 5            
Threshold percentage of stock price trigger 98.00%            
Convertible Debt | 2023 Notes              
Debt Instrument [Line Items]              
Aggregate principal amount   $ 862,500,000          
Interest rate   0.50%          
Conversion rate   0.0128456          
Conversion price (in USD per share) | $ / shares   $ 77.85          
Carrying amount of equity component   $ 155,300,000   $ 154,019,000   $ 154,019,000 154,019,000
Effective interest rate of the liability component   4.69%   4.69%   4.69%  
Discounts and commissions payable   $ 6,000,000.0          
Third party offering costs   800,000          
Issuance costs attributable to the liability component   $ 5,600,000   $ 3,186,000   $ 3,186,000 3,418,000
Amount of if-converted value in excess of outstanding principal amount       0      
Convertible Debt | 2023 Notes | Debt Instrument, Conversion Term One              
Debt Instrument [Line Items]              
Threshold trading days | day   20          
Threshold consecutive trading days | day   30          
Threshold percentage of stock price trigger   130.00%          
Convertible Debt | 2023 Notes | Debt Instrument Conversion Term Two              
Debt Instrument [Line Items]              
Threshold trading days | day   5          
Threshold consecutive trading days | day   5          
Threshold percentage of stock price trigger   98.00%          
Convertible Debt | 2022 Notes              
Debt Instrument [Line Items]              
Aggregate principal amount     $ 440,000,000.0        
Interest rate     0.375%        
Conversion rate     0.0435749        
Conversion price (in USD per share) | $ / shares     $ 22.95        
Carrying amount of equity component     $ 86,200,000 $ 35,516,000   $ 35,516,000 40,373,000
Effective interest rate of the liability component     5.34% 5.34%   5.34%  
Discounts and commissions payable     $ 11,000,000.0        
Third party offering costs     800,000        
Issuance costs attributable to the liability component     $ 9,400,000 $ 1,683,000   $ 1,683,000 $ 2,146,000
Notes converted       $ 25,500,000   253,700,000  
Principal payment on conversion of senior notes           $ 219,400,000  
Shares issued upon conversion (in shares) | shares       1.1   8.4  
Loss on extinguishment of long-term debt       $ 1,000,000.0   $ 6,000,000.0  
Amount of if-converted value in excess of outstanding principal amount       $ 238,900,000      
Convertible Debt | 2022 Notes | Debt Instrument, Conversion Term One              
Debt Instrument [Line Items]              
Threshold trading days | day     20        
Threshold consecutive trading days | day     30        
Threshold percentage of stock price trigger     130.00%        
Convertible Debt | 2022 Notes | Debt Instrument Conversion Term Two              
Debt Instrument [Line Items]              
Threshold trading days | day     5        
Threshold consecutive trading days | day     5        
Threshold percentage of stock price trigger     98.00%        
v3.20.1
INDEBTEDNESS - Net Carrying Amount of Convertible Notes (Details) - Convertible Debt - USD ($)
$ in Thousands
Mar. 31, 2020
Mar. 05, 2020
Dec. 31, 2019
May 25, 2018
Mar. 06, 2017
Debt Instrument [Line Items]          
Principal outstanding $ 2,048,751   $ 1,074,226    
Unamortized debt discount (269,845)   (129,830)    
Unamortized debt issuance costs (18,059)   (5,564)    
Net carrying value 1,760,847   938,832    
2025 Notes          
Debt Instrument [Line Items]          
Principal outstanding 1,000,000        
Unamortized debt discount (151,680)        
Unamortized debt issuance costs (13,190) $ (12,800)      
Net carrying value 835,130        
2023 Notes          
Debt Instrument [Line Items]          
Principal outstanding 862,500   862,500    
Unamortized debt discount (103,016)   (110,518)    
Unamortized debt issuance costs (3,186)   (3,418) $ (5,600)  
Net carrying value 756,298   748,564    
2022 Notes          
Debt Instrument [Line Items]          
Principal outstanding 186,251   211,726    
Unamortized debt discount (15,149)   (19,312)    
Unamortized debt issuance costs (1,683)   (2,146)   $ (9,400)
Net carrying value $ 169,419   $ 190,268    
v3.20.1
INDEBTEDNESS - Net Carrying Amount of Equity Component of Convertible Notes (Details) - Convertible Debt - USD ($)
$ in Thousands
Mar. 31, 2020
Mar. 05, 2020
Dec. 31, 2019
May 25, 2018
Mar. 06, 2017
Debt Instrument [Line Items]          
Amount allocated to conversion option $ 346,340   $ 196,731    
Less: allocated issuance costs (4,547)   (2,339)    
Equity component, net 341,793   194,392    
2025 Notes          
Debt Instrument [Line Items]          
Amount allocated to conversion option 154,600        
Less: allocated issuance costs (2,342)        
Equity component, net 152,258 $ 154,600      
2023 Notes          
Debt Instrument [Line Items]          
Amount allocated to conversion option 155,250   155,250    
Less: allocated issuance costs (1,231)   (1,231)    
Equity component, net 154,019   154,019 $ 155,300  
2022 Notes          
Debt Instrument [Line Items]          
Amount allocated to conversion option 36,490   41,481    
Less: allocated issuance costs (974)   (1,108)    
Equity component, net $ 35,516   $ 40,373   $ 86,200
v3.20.1
INDEBTEDNESS - Interest Expense on Convertible Notes (Details) - Convertible Debt - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Debt Instrument [Line Items]    
Contractual interest expense $ 1,373 $ 1,277
Amortization of debt discount and issuance costs 12,528 9,608
Total $ 13,901 $ 10,885
v3.20.1
INDEBTEDNESS - Convertible Note Hedge and Warrant Transactions (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended
Mar. 05, 2020
May 25, 2018
Mar. 06, 2017
Mar. 31, 2020
Mar. 31, 2019
Debt Instrument [Line Items]          
Proceeds from issuance of warrants       $ 99,500 $ 0
Convertible Debt          
Debt Instrument [Line Items]          
Conversion price of convertible debt (in USD per share) $ 121.01 $ 77.85 $ 22.95    
Conversion price of convertible debt after effect of warrants and note hedge (in USD per share) $ 161.34 $ 109.26 $ 31.18    
Common Stock Warrant, 2025 Notes          
Debt Instrument [Line Items]          
Warrants to purchase aggregate shares of capital stock (in shares) 8,260        
Warrants, weighted average exercise price (in USD per share) $ 161.34        
Proceeds from issuance of warrants $ 99,500        
Common Stock Warrant, 2023 Notes          
Debt Instrument [Line Items]          
Warrants to purchase aggregate shares of capital stock (in shares)   11,100      
Warrants, weighted average exercise price (in USD per share)   $ 109.26      
Proceeds from issuance of warrants   $ 112,100      
Common Stock Warrant, 2022 Notes          
Debt Instrument [Line Items]          
Warrants to purchase aggregate shares of capital stock (in shares)     19,200    
Warrants, weighted average exercise price (in USD per share)     $ 31.18    
Proceeds from issuance of warrants     $ 57,200    
Shares of common stock received due to exercise of note hedges (in shares)       7,200  
Options          
Debt Instrument [Line Items]          
Warrants to purchase aggregate shares of capital stock (in shares) 8,260 11,100 19,200    
Convertible note hedge, option to purchase common stock, price (in USD per share) $ 121.01 $ 77.85 $ 22.95    
Cost of convertible note hedge $ 149,200 $ 172,600 $ 92,100    
v3.20.1
INCOME TAXES (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Income Tax Disclosure [Abstract]    
Income tax expense $ 535 $ 129
Effective tax rate (0.50%) (0.30%)
v3.20.1
STOCKHOLDERS' EQUITY - Common Stock, Warrants and Conversion of 2022 Notes Narrative (Details)
3 Months Ended 27 Months Ended
Mar. 31, 2020
vote
$ / shares
shares
Mar. 31, 2020
$ / shares
shares
Mar. 05, 2020
$ / shares
shares
Dec. 31, 2019
$ / shares
shares
May 25, 2018
$ / shares
shares
Mar. 06, 2017
$ / shares
shares
2022 Notes | Convertible Debt            
Class of Stock [Line Items]            
Shares issued upon conversion (in shares) 1,100,000 8,400,000        
Common Stock Warrant, 2025 Notes            
Class of Stock [Line Items]            
Warrants to purchase aggregate shares of capital stock (in shares)     8,260,000      
Warrants, weighted average exercise price (in USD per share) | $ / shares     $ 161.34      
Number of warrants exercised (in shares) 0 0        
Common Stock Warrant, 2023 Notes            
Class of Stock [Line Items]            
Warrants to purchase aggregate shares of capital stock (in shares)         11,100,000  
Warrants, weighted average exercise price (in USD per share) | $ / shares         $ 109.26  
Number of warrants exercised (in shares) 0 0        
Common Stock Warrant, 2022 Notes            
Class of Stock [Line Items]            
Warrants to purchase aggregate shares of capital stock (in shares)           19,200,000
Warrants, weighted average exercise price (in USD per share) | $ / shares           $ 31.18
Number of warrants exercised (in shares) 0 0        
Class A            
Class of Stock [Line Items]            
Common stock, number of votes entitled for each share held (in votes) | vote 1          
Common stock, shares authorized (in shares) 1,000,000,000 1,000,000,000   1,000,000,000    
Common stock, par value (in USD per share) | $ / shares $ 0.0000001 $ 0.0000001   $ 0.0000001    
Common stock, shares outstanding (in shares) 359,142,301 359,142,301   352,386,562    
Class B            
Class of Stock [Line Items]            
Common stock, number of votes entitled for each share held (in votes) | vote 10          
Common stock, shares authorized (in shares) 500,000,000 500,000,000   500,000,000    
Common stock, par value (in USD per share) | $ / shares $ 0.0000001 $ 0.0000001   $ 0.0000001    
Common stock, shares outstanding (in shares) 79,621,335 79,621,335   80,410,158    
v3.20.1
STOCKHOLDERS' EQUITY - Stock Plans and Share Based Compensation Narrative (Details)
$ in Thousands
3 Months Ended
Nov. 17, 2015
shares
Mar. 31, 2020
USD ($)
plan
shares
Mar. 31, 2019
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Number of share based compensation plans | plan   2  
Employee stock purchase plan, compensation expense | $   $ 77,303 $ 61,088
Capitalized share-based compensation expense | $   2,300 1,700
Unrecognized compensation cost, options | $   $ 657,300  
Unrecognized compensation cost, period for recognition   2 years 8 months 12 days  
Employee stock purchase plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Employee stock purchase plan, compensation expense | $   $ 4,700 $ 4,300
2009 Stock Option Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares available for future issuance (in shares)   0  
2009 Stock Option Plan | Stock options, RSAs, and RSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity instruments outstanding (in shares)   15,171,723  
2015 Equity Incentive Plan      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares available for future issuance (in shares)   105,944,646  
Shares reserved for future issuance (in shares) 30,000,000    
Shares reserved for future issuance, percentage of annual increase 5.00%    
2015 Equity Incentive Plan | Stock options, RSAs, and RSUs      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Equity instruments outstanding (in shares)   17,632,872  
2015 Equity Incentive Plan | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Shares reserved for future issuance, amount of annual increase (in shares) 40,000,000    
v3.20.1
STOCKHOLDERS' EQUITY - Stock Option Activity (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2020
Number of Stock Options Outstanding      
Beginning balance (in shares) 23,619,804    
Exercised (in shares) (3,396,568)    
Forfeited (in shares) (20,135)    
Ending balance (in shares) 20,203,101 23,619,804  
Weighted Average Exercise Price      
Beginning balance (in USD per share) $ 12.66    
Exercised (in USD per share) 9.09    
Forfeited (in USD per share) 71.99    
Ending balance (in USD per share) $ 12.66 $ 12.66 $ 10.25
Options Exercisable      
Options exercisable (in shares)     18,862,499
Options exercisable (in USD per share)     $ 10.25
Additional Disclosures      
Weighted average remaining contractual term, options outstanding 4 years 10 months 17 days 4 years 10 months 20 days  
Weighted average remaining contractual term, options exercisable 4 years 4 months 24 days    
Aggregate intrinsic value, options outstanding   $ 1,191,746 $ 811,454
Aggregate intrinsic value, options exercisable     $ 799,553
v3.20.1
STOCKHOLDERS' EQUITY - Restricted Stock Awards and Restricted Stock Units Activity (Details) - RSAs and RSUs
3 Months Ended
Mar. 31, 2020
$ / shares
shares
Number of shares  
Beginning balance (in shares) | shares 13,917,461
Granted (in shares) | shares 863,415
Vested (in shares) | shares (1,829,201)
Forfeited (in shares) | shares (350,181)
Ending balance (in shares) | shares 12,601,494
Weighted Average Grant Date Fair Value  
Beginning balance (in USD per share) | $ / shares $ 49.90
Granted (in USD per share) | $ / shares 69.78
Vested (in USD per share) | $ / shares 35.56
Forfeited (in USD per share) | $ / shares 46.05
Ending balance (in USD per share) | $ / shares $ 53.43
v3.20.1
STOCKHOLDERS' EQUITY - Effects of Share-Based Compensation on Statements of Operations (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Share-based compensation expense $ 77,303 $ 61,088
Cost of revenue    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Share-based compensation expense 76 21
Product development    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Share-based compensation expense 57,400 42,649
Sales and marketing    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Share-based compensation expense 6,407 6,202
General and administrative    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Share-based compensation expense $ 13,420 $ 12,216
v3.20.1
NET LOSS PER SHARE - Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Numerator:    
Net loss $ (105,891) $ (38,151)
Denominator:    
Weighted-average shares used to compute basic and diluted net loss per share (in shares) 434,940 419,289
Net loss per share:    
Basic (in USD per share) $ (0.24) $ (0.09)
Diluted (in USD per share) $ (0.24) $ (0.09)
v3.20.1
NET LOSS PER SHARE - Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share (Details) - shares
shares in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from calculation of diluted net income (loss) per share (in shares) 91,133 99,173
Stock options and restricted stock units    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from calculation of diluted net income (loss) per share (in shares) 35,033 47,833
Common stock warrants    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from calculation of diluted net income (loss) per share (in shares) 32,613 30,252
Convertible senior notes    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from calculation of diluted net income (loss) per share (in shares) 22,478 20,305
Unvested shares    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from calculation of diluted net income (loss) per share (in shares) 740 571
Employee stock purchase plan    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from calculation of diluted net income (loss) per share (in shares) 269 212
v3.20.1
RELATED PARTY TRANSACTIONS (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Jul. 31, 2019
Related Party Transaction [Line Items]    
Lease executed but not yet commenced, term   15 years 6 months
Lease executed but not yet commenced $ 82,692 $ 42,700
Affiliated Entity    
Related Party Transaction [Line Items]    
Lease executed but not yet commenced, term   15 years 6 months
Lease executed but not yet commenced   $ 42,700
v3.20.1
COMMITMENTS AND CONTINGENCIES - Operating and Finance Leases Narrative (Details)
$ in Thousands
1 Months Ended 3 Months Ended
Jul. 31, 2019
USD ($)
ft²
renewal_option
Dec. 31, 2018
ft²
renewal_option
Mar. 31, 2020
USD ($)
Lessee, Lease, Description [Line Items]      
Operating lease renewal term     5 years
Operating lease option to terminate term     1 year
Leased area of office space executed but not yet commenced (in sq ft) | ft² 226,158    
Lease executed but not yet commenced, term 15 years 6 months    
Lease executed but not yet commenced, number of renewal options | renewal_option 2    
Lease executed but not yet commenced renewal term 5 years    
Lease executed but not yet commenced | $ $ 42,700   $ 82,692
Minimum      
Lessee, Lease, Description [Line Items]      
Operating lease term     1 year
Maximum      
Lessee, Lease, Description [Line Items]      
Operating lease term     12 years
Lease executed but not yet commenced, option to terminate leased space (up to) 50.00%    
Equipment      
Lessee, Lease, Description [Line Items]      
Finance lease, remaining lease term     9 months 18 days
Oakland, California | Building      
Lessee, Lease, Description [Line Items]      
Operating lease term   12 years  
Operating lease renewal term   5 years  
Leased area of office space (in sq ft) | ft²   355,762  
Operating lease, number of renewal options | renewal_option   2  
v3.20.1
COMMITMENTS AND CONTINGENCIES - Schedule of Lease Expense Components (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Commitments and Contingencies Disclosure [Abstract]    
Fixed operating lease costs $ 15,125 $ 6,690
Variable operating lease costs 5,724 637
Short term lease costs 1,856 441
Sublease income (1,437) 0
Finance lease costs    
Amortization of finance right-of-use assets 1,054 1,293
Interest on finance lease liabilities 0 0
Total lease costs $ 22,322 $ 9,061
v3.20.1
COMMITMENTS AND CONTINGENCIES - Other Information Related to Leases (Details)
Mar. 31, 2020
Weighted Average Remaining Lease Term:  
Operating leases 8 years 9 months 18 days
Finance leases 6 months
Weighted Average Discount Rate:  
Operating leases 4.00%
Finance leases 0.00%
v3.20.1
COMMITMENTS AND CONTINGENCIES - Cash Flows Related to Leases (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Cash flows from operating activities:    
Payments for operating lease liabilities $ (9,570) $ (9,293)
Cash flows from financing activities:    
Principal payments on finance lease obligation (1,054) (1,284)
Supplemental Cash Flow Data:    
Right-of-use assets obtained in exchange for operating lease obligations $ 255,553 $ 19,918
v3.20.1
COMMITMENTS AND CONTINGENCIES - Schedule of Future Minimum Lease Payments Under Non-Cancelable Operating Leases and Finance Leases (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Jul. 31, 2019
Finance    
Remainder of 2020 $ 1,391  
2021 0  
2022 0  
2023 0  
2024 0  
Thereafter 0  
Total 1,391  
Less: amount representing interest 0  
Less: leases executed but not yet commenced 0  
Less: lease incentives 0  
Total 1,391  
Operating    
Remainder of 2020 39,616  
2021 67,683  
2022 70,409  
2023 65,056  
2024 45,520  
Thereafter 269,229  
Total 557,513  
Less: amount representing interest 78,640  
Less: leases executed but not yet commenced 82,692 $ 42,700
Less: lease incentives 9,284  
Total $ 386,897  
v3.20.1
COMMITMENTS AND CONTINGENCIES - Litigation (Details) - USD ($)
Sep. 06, 2019
Dec. 31, 2019
Mar. 31, 2018
Income Tax Examination [Line Items]      
Gross receipts tax and payroll expense tax paid   $ 8,400,000 $ 1,300,000
Minimum      
Income Tax Examination [Line Items]      
Estimate of possible liability for additional taxes, interest and penalties $ 0    
Maximum      
Income Tax Examination [Line Items]      
Estimate of possible liability for additional taxes, interest and penalties $ 66,000,000    
v3.20.1
SEGMENT AND GEOGRAPHICAL INFORMATION - Narrative (Details) - segment
3 Months Ended 9 Months Ended
Mar. 31, 2020
Dec. 31, 2020
Subsequent Event [Line Items]    
Number of reportable segments 1  
Number of operating segments 1  
Forecast [Member]    
Subsequent Event [Line Items]    
Number of reportable segments   2
Number of operating segments   2
v3.20.1
SEGMENT AND GEOGRAPHICAL INFORMATION - Revenue by Geographic Area (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]    
Revenue $ 1,381,109 $ 959,359
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Revenue 1,313,586 914,656
International    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Revenue $ 67,523 $ 44,703
v3.20.1
SEGMENT AND GEOGRAPHICAL INFORMATION - Long-lived Assets by Geographic Area (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 934,586 $ 597,766
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets 918,351 586,702
International    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-lived assets $ 16,235 $ 11,064
v3.20.1
SUPPLEMENTAL CASH FLOW INFORMATION - Analysis of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Mar. 31, 2020
Dec. 31, 2019
Mar. 31, 2019
Dec. 31, 2018
Supplemental Cash Flow Elements [Abstract]        
Cash and cash equivalents $ 1,962,316 $ 1,047,118 $ 521,676  
Short-term restricted cash 34,315 38,873 33,220  
Long-term restricted cash 13,286 12,715 14,433  
Cash, cash equivalents, and restricted cash $ 2,009,917 $ 1,098,706 $ 569,329 $ 632,847
v3.20.1
SUPPLEMENTAL CASH FLOW INFORMATION - Supplemental Cash Flow Data (Details) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2020
Mar. 31, 2019
Supplemental Cash Flow Data:    
Cash paid for interest $ 397 $ 538
Cash paid for income taxes 2,599 1,342
Supplemental disclosures of non-cash investing and financing activities:    
Right-of-use assets obtained in exchange for operating lease obligations 255,553 19,918
Change in purchases of property and equipment in accounts payable and accrued expenses 10,354 13,114
Unpaid business combination purchase price 7,338 6,447
Fair value of common stock issued related to business combination (14,999) 0
Recovery of common stock in connection with indemnification settlement agreement 0 789
Fair value of common stock issued to settle the conversion of senior notes, due 2022 $ (77,614) $ 0