CHEGG, INC, 10-Q filed on 8/3/2020
Quarterly Report
v3.20.2
Cover Page - shares
 6 Months Ended
Jun. 30, 2020
Jul. 31, 2020
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2020  
Document Transition Report false  
Entity File Number 001-36180  
Entity Registrant Name CHEGG, INC  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 20-3237489  
Entity Address, Address Line One 3990 Freedom Circle  
Entity Address, City or Town Santa Clara  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 95054  
City Area Code 408  
Local Phone Number 855-5700  
Title of 12(b) Security Common stock, $0.001 par value per share  
Trading Symbol CHGG  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Emerging Growth Company false  
Entity Small Business false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   124,314,241
Entity Central Index Key 0001364954  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Current assets    
Cash and cash equivalents $ 285,064 $ 387,520
Short-term investments 417,530 381,074
Accounts receivable, net of allowance of $134 and $56 at June 30, 2020 and December 31, 2019, respectively 8,834 11,529
Prepaid expenses 16,060 10,538
Other current assets 14,650 16,606
Total current assets 742,138 807,267
Long-term investments 280,492 310,483
Textbook library, net 27,129 0
Property and equipment, net 105,640 87,359
Goodwill 284,682 214,513
Intangible assets, net 59,522 34,667
Right of use assets 15,207 15,931
Other assets 25,068 18,778
Total assets 1,539,878 1,488,998
Current liabilities    
Accounts payable 6,421 7,362
Deferred revenue 28,320 18,780
Current operating lease liabilities 5,685 5,283
Accrued liabilities 50,067 39,964
Total current liabilities 90,493 71,389
Long-term liabilities    
Convertible senior notes, net 926,193 900,303
Long-term operating lease liabilities 12,947 14,513
Other long-term liabilities 11,867 3,964
Total long-term liabilities 951,007 918,780
Total liabilities 1,041,500 990,169
Commitments and contingencies
Stockholders' equity:    
Preferred stock, 0.001 par value – 10,000,000 shares authorized, no shares issued and outstanding 0 0
Common stock, 0.001 par value 400,000,000 shares authorized; 124,122,675 and 121,583,501 shares issued and outstanding at June 30, 2020 and December 31, 2019, respectively 124 122
Additional paid-in capital 907,908 916,095
Accumulated other comprehensive income (loss) 1,850 (1,096)
Accumulated deficit (411,504) (416,292)
Total stockholders' equity 498,378 498,829
Total liabilities and stockholders' equity $ 1,539,878 $ 1,488,998
v3.20.2
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts receivable, current $ 134 $ 56
Preferred stock, par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized 400,000,000 400,000,000
Common stock, shares issued 124,122,675 121,583,501
Common stock, shares outstanding 124,122,675 121,583,501
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Income Statement [Abstract]        
Net revenues $ 153,009 $ 93,862 $ 284,599 $ 191,271
Cost of revenues 43,524 20,518 85,914 43,853
Gross profit 109,485 73,344 198,685 147,418
Operating expenses:        
Research and development 40,374 32,065 79,915 64,757
Sales and marketing 15,758 11,795 35,996 30,512
General and administrative 31,292 22,622 57,437 46,292
Restructuring charges 0 47 0 69
Total operating expenses 87,424 66,529 173,348 141,630
Income from operations 22,061 6,815 25,337 5,788
Interest expense, net and other income, net:        
Interest expense, net (13,425) (13,514) (26,852) (17,746)
Other income, net 3,240 5,253 8,200 6,820
Total interest expense, net and other income, net (10,185) (8,261) (18,652) (10,926)
Income (loss) before provision for income taxes 11,876 (1,446) 6,685 (5,138)
Provision for income taxes 1,287 583 1,809 1,209
Net income (loss) $ 10,589 $ (2,029) $ 4,876 $ (6,347)
Net income (loss) per share:        
Basic (in dollars per share) $ 0.09 $ (0.02) $ 0.04 $ (0.05)
Diluted (in dollars per share) $ 0.08 $ (0.02) $ 0.04 $ (0.05)
Weighted average shares used to compute net income (loss) per share:        
Basic (in shares) 123,842 118,790 123,135 117,766
Diluted (in shares) 133,851 118,790 132,674 117,766
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (unaudited) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Statement of Comprehensive Income [Abstract]        
Net income $ 10,589 $ (2,029) $ 4,876 $ (6,347)
Other comprehensive income:        
Change in net unrealized gain on available for sale investments, net of tax 6,831 333 3,564 452
Change in foreign currency translation adjustments, net of tax 381 (51) (618) (51)
Other comprehensive income 7,212 282 2,946 401
Total comprehensive income (loss) $ 17,801 $ (1,747) $ 7,822 $ (5,946)
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (unaudited) - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Accumulated Deficit
Cumulative Effect, Period of Adoption, Adjustment
Common stock, beginning balance (in shares) at Dec. 31, 2018     115,500,000        
Beginning balance at Dec. 31, 2018 $ 410,634 $ (111) $ 116 $ 818,113 $ (1,019) $ (406,576) $ (111)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Accounting Standards Update [Extensible List] us-gaap:AccountingStandardsUpdate201602Member            
Equity component of convertible senior notes, net of issuance costs $ 206,747     206,747      
Purchase of convertible senior notes capped call (97,200)     (97,200)      
Repurchase of common stock (in shares)     (504,000)        
Repurchase of common stock (20,000)   $ (1) (19,999)      
Issuance of common stock upon exercise of stock options and ESPP (in shares)     1,554,000        
Issuance of common stock upon exercise of stock options and ESPP 16,046   $ 2 16,044      
Net issuance of common stock for settlement of RSUs (in shares)     2,745,000        
Net issuance of common stock for settlement of RSUs (82,249)   $ 2 (82,251)      
Issuance of common stock in connection with prior acquisition (in shares)     41,000        
Issuance of common stock in connection with prior acquisition 1,160     1,160      
Share-based compensation expense 30,490     30,490      
Other comprehensive income (loss) 401       401    
Net income (6,347)         (6,347)  
Common stock, ending balance (in shares) at Jun. 30, 2019     119,336,000        
Beginning balance at Jun. 30, 2019 459,571   $ 119 873,104 (618) (413,034)  
Common stock, beginning balance (in shares) at Mar. 31, 2019     118,197,000        
Beginning balance at Mar. 31, 2019 428,137   $ 118 839,924 (900) (411,005)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Equity component of convertible senior notes, net of issuance costs 25,860     25,860      
Purchase of convertible senior notes capped call (12,150)     (12,150)      
Issuance of common stock upon exercise of stock options and ESPP (in shares)     845,000        
Issuance of common stock upon exercise of stock options and ESPP 10,226   $ 1 10,225      
Net issuance of common stock for settlement of RSUs (in shares)     294,000        
Net issuance of common stock for settlement of RSUs (6,207)   $ 0 (6,207)      
Share-based compensation expense 15,452     15,452      
Other comprehensive income (loss) 282       282    
Net income (2,029)         (2,029)  
Common stock, ending balance (in shares) at Jun. 30, 2019     119,336,000        
Beginning balance at Jun. 30, 2019 $ 459,571   $ 119 873,104 (618) (413,034)  
Common stock, beginning balance (in shares) at Dec. 31, 2019 121,583,501   121,584,000        
Beginning balance at Dec. 31, 2019 $ 498,829 $ (88) $ 122 916,095 (1,096) (416,292) $ (88)
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Accounting Standards Update [Extensible List] us-gaap:AccountingStandardsUpdate201613Member            
Issuance of common stock upon exercise of stock options and ESPP (in shares)     672,000        
Issuance of common stock upon exercise of stock options and ESPP $ 8,037   $ 0 8,037      
Net issuance of common stock for settlement of RSUs (in shares)     1,867,000        
Net issuance of common stock for settlement of RSUs (54,102)   $ 2 (54,104)      
Share-based compensation expense 37,880     37,880      
Other comprehensive income (loss) 2,946       2,946    
Net income $ 4,876         4,876  
Common stock, ending balance (in shares) at Jun. 30, 2020 124,122,675   124,123,000        
Beginning balance at Jun. 30, 2020 $ 498,378   $ 124 907,908 1,850 (411,504)  
Common stock, beginning balance (in shares) at Mar. 31, 2020     123,543,000        
Beginning balance at Mar. 31, 2020 462,927   $ 124 890,258 (5,362) (422,093)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuance of common stock upon exercise of stock options and ESPP (in shares)     312,000        
Issuance of common stock upon exercise of stock options and ESPP 5,372   $ 0 5,372      
Net issuance of common stock for settlement of RSUs (in shares)     268,000        
Net issuance of common stock for settlement of RSUs (7,268)   $ 0 (7,268)      
Share-based compensation expense 19,546     19,546      
Other comprehensive income (loss) 7,212       7,212    
Net income $ 10,589         10,589  
Common stock, ending balance (in shares) at Jun. 30, 2020 124,122,675   124,123,000        
Beginning balance at Jun. 30, 2020 $ 498,378   $ 124 $ 907,908 $ 1,850 $ (411,504)  
v3.20.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Cash flows from operating activities    
Net income $ 4,876 $ (6,347)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Print textbook depreciation expense 7,062 0
Other depreciation and amortization expense 19,834 13,934
Share-based compensation expense 37,880 30,490
Amortization of debt discount and issuance costs 25,892 17,025
Loss from write-off of property and equipment 851 0
Gain on textbook library, net (1,371) 0
Deferred income taxes (238) 39
Operating lease expense, net of accretion 2,185 2,168
Other non-cash items (189) (115)
Change in assets and liabilities:    
Accounts receivable 3,961 6,944
Prepaid expenses and other current assets (1,812) (12,942)
Other assets (712) 2,334
Accounts payable (574) (5,417)
Deferred revenue 8,117 1,403
Accrued liabilities 17,389 2,397
Other liabilities (946) (4,067)
Net cash provided by operating activities 122,205 47,846
Cash flows from investing activities    
Purchases of property and equipment (43,111) (23,491)
Purchases of textbooks (38,668) 0
Proceeds from disposition of textbooks 3,415 0
Purchases of investments (277,033) (527,363)
Maturities of investments 271,711 86,105
Purchase of strategic equity investment (2,000) 0
Acquisition of business, net of cash acquired (92,796) 0
Net cash used in investing activities (178,482) (464,749)
Cash flows from financing activities    
Common stock issued under stock plans, net 8,039 17,208
Payment of taxes related to the net share settlement of equity awards (54,104) (82,251)
Proceeds from issuance of convertible senior notes, net of issuance costs 0 780,180
Purchase of convertible senior notes capped call 0 (97,200)
Repurchase of common stock 0 (20,000)
Net cash (used in) provided by financing activities (46,065) 597,937
Net (decrease) increase in cash, cash equivalents and restricted cash (102,342) 181,034
Cash, cash equivalents and restricted cash, beginning of period 389,432 375,945
Cash, cash equivalents and restricted cash, end of period 287,090 556,979
Supplemental cash flow data:    
Interest 931 431
Income taxes 1,247 912
Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows from operating leases 3,350 2,325
Right of use assets obtained in exchange for operating lease obligations 1,713 0
Non-cash investing and financing activities:    
Accrued purchases of long-lived assets 754 5,170
Accrued escrow related to acquisition 7,451 0
Reconciliation of cash, cash equivalents and restricted cash:    
Total cash, cash equivalents and restricted cash $ 287,090 $ 556,979
v3.20.2
Background and Basis of Presentation
 6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Background and Basis of Presentation Background and Basis of Presentation
Company and Background

Chegg, Inc. (Chegg, the Company, we, us, or our), headquartered in Santa Clara, California, was incorporated as a Delaware corporation in July 2005. Chegg is a Smarter Way to Student. As the leading direct-to-student learning platform, we strive to improve educational outcomes by putting the student first in all our decisions. We support students on their journey from high school to college and into their career with tools designed to help them pass their test, pass their class, and save money on required materials. Our services are available online, anytime and anywhere, so we can reach students when they need us most.

Basis of Presentation

The accompanying condensed consolidated balance sheet as of June 30, 2020, the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive income (loss), and the condensed consolidated statements of stockholder's equity for the three and six months ended June 30, 2020 and 2019, and the condensed consolidated statements of cash flows for the six months ended June 30, 2020 and 2019, and the related footnote disclosures are unaudited. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position as of June 30, 2020, our results of operations, results of comprehensive income (loss), and stockholder's equity for the three and six months ended June 30, 2020 and 2019, and cash flows for the six months ended June 30, 2020 and 2019. Our results of operations, results of comprehensive income (loss), stockholder's equity, and cash flows for the six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the full year.

We operate in a single segment. Our fiscal year ends on December 31 and in this report we refer to the year ended December 31, 2019 as 2019.

The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2019 (the Annual Report on Form 10-K) filed with the U.S. Securities and Exchange Commission (SEC).

Except for our policies on investments, textbook library, revenue recognition and deferred revenue, and cost of revenues, there have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Annual Report on Form 10-K.

Investments

We hold investments in commercial paper, corporate debt securities, U.S. treasury securities, and agency bonds. We classify our investments as available-for-sale based on the nature of each security that are either short or long-term based on the remaining contractual maturity of the investment. Our available-for-sale investments are carried at estimated fair value with any unrealized gains and losses unrelated to credit loss factors, net of taxes, included in other comprehensive income in our condensed consolidated statements of stockholders’ equity. Beginning in 2020, unrealized losses related to credit loss factors are now recorded through an allowance for credit losses in other income, net in our condensed consolidated statements of operations, rather than as a reduction to the amortized cost basis in other comprehensive income, when a decline in fair value has resulted from a credit loss. We determine realized gains or losses on the sale of investments on a specific identification method, and record such gains or losses as other income, net in our condensed consolidated statements of operations.

Textbook Library

Beginning in January 2020, we began our transition back to print textbook ownership by purchasing print textbooks to establish our textbook library. We consider our print textbook library to be a long-term productive asset and, as such, classify it as a non-current asset in our condensed consolidated balance sheets. All print textbooks in our textbook library are stated at cost, which includes the purchase price less accumulated depreciation. We write down textbooks on a book-by-book basis for lost, damaged, or excess print textbooks.
We depreciate our print textbooks, less an estimated salvage value, over an estimated useful life of four years using an accelerated method of depreciation, as we estimate this method most accurately reflects the actual pattern of decline in their economic value. The salvage value considers the historical trend and projected proceeds for print textbooks. The useful life is determined based on the estimated time period in which the print textbooks are held and rented. We review the estimated salvage value and useful life of our print textbook library on an ongoing basis.
Write-downs for print textbooks, print textbook depreciation expense, the gain or loss on print textbooks liquidated, and the net book value of print textbooks purchased by students at the end of the term are recorded in cost of revenues in our condensed consolidated statements of operations and classified as adjustments to cash flows from operating activities. Cash outflows for the acquisition of print textbooks net of changes in related accounts payable and accrued liabilities, and cash inflows received from the proceeds from the disposition of print textbooks net of changes in related accounts receivable, are classified as cash flows from investing activities in our condensed consolidated statements of cash flows.

As of June 30, 2020, our net print textbook library of $27.1 million consisted of gross print textbook library of approximately $33.7 million net of accumulated depreciation and write-downs of approximately $6.4 million and $0.1 million, respectively.

During the three and six months ended June 30, 2020, print textbook depreciation expense was approximately $3.6 million and $7.1 million, respectively, and our net gain on textbook library was approximately $0.2 million and $1.4 million, respectively.

Revenue Recognition and Deferred Revenue

We recognize revenues when the control of goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenues are presented net of sales tax collected from customers to be remitted to governmental authorities and net of allowances for estimated cancellations and customer returns, which are based on historical data. Customer refunds from cancellations and returns are recorded as a reduction to revenues.

We determine revenue recognition through the following steps:

•Identification of the contract, or contracts, with a customer
•Identification of the performance obligations in the contract
•Determination of the transaction price
•Allocation of the transaction price to the performance obligations in the contract
•Recognition of revenue when, or as, we satisfy a performance obligation

We generate revenues from our Chegg Services product line which primarily includes Chegg Study, Chegg Writing, Chegg Tutors, Chegg Math Solver, Thinkful, and Mathway. Revenues from Chegg Study, Chegg Writing, Chegg Tutors, Chegg Math Solver, and Mathway are primarily recognized ratably over the respective weekly or monthly subscription period. Revenues from Thinkful, our skills-based learning platform, are recognized either ratably over the term of the course, generally six months, or upon completion of the lessons, depending on the instruction type of the course.

        Revenues from our Required Materials product line includes revenues from print textbooks that we own or that are owned by a partner as well as revenues from eTextbooks. Beginning in 2020, our Required Materials product line includes operating leases with students for the rental of print textbooks that we own. Operating lease income is recognized as the total transaction amount, paid upon commencement of the lease, ratably over the lease term which is generally a two- to five-month lease period. Students generally have the option to extend the term of their rental or purchase the print textbook at the end of the term otherwise the print textbook is returned to our print textbook library for future rental. Revenues from print textbooks owned by a partner are recognized as a revenue share on the total transactional amount of a rental or sale transaction immediately when a print textbook ships to a student. Shipping and handling activities are expensed as incurred. Revenues from eTextbooks are recognized ratably over the contractual period, generally a two- to five-month period.

Some of our customer arrangements include multiple performance obligations. We have determined these performance obligations qualify as distinct performance obligations, as the customer can benefit from the service on its own or together with other resources that are readily available to the customer, and our promise to transfer the service is separately identifiable from other promises in the contract. For these arrangements that contain multiple performance obligations, we allocate the transaction price based on the relative standalone selling price (SSP) method by comparing the SSP of each distinct performance obligation to the total value of the contract. We determine the SSP based on our historical pricing and discounting
practices for the distinct performance obligation when sold separately. If the SSP is not directly observable, we estimate the SSP by considering information such as market conditions, and information about the customer. Additionally, we limit the amount of revenues recognized for delivered promises to the amount that is not contingent on future delivery of services or other future performance obligations.

Some of our customer arrangements may include an amount of variable consideration in addition to a fixed revenue share that we earn. This variable consideration can either increase or decrease the total transaction price depending on the nature of the variable consideration. We estimate the amount of variable consideration that we will earn at the inception of the contract, adjusted during each period, and include an estimated amount each period.

For sales of third-party products, we evaluate whether we are acting as a principal or an agent, and therefore would record the gross sales amount as revenues and related costs or the net amount earned as a revenue share from the sale of third-party products. Our determination is based on our evaluation of whether we control the specified goods or services prior to transferring them to the customer. In relation to print textbooks owned by a partner, we recognize revenues on a net basis based on our role in the transaction as an agent as we have concluded that we do not control the use of the print textbooks, and therefore record only the net revenue share we earn. We have concluded that we control our Chegg Service, print textbooks that we own, and eTextbook service and therefore we recognize revenues and cost of revenues on a gross basis.

Contract assets are contained within other current assets and other assets on our condensed consolidated balance sheets. Contract assets represent the goods or services that we have transferred to a customer before invoicing the customer. Contract receivables are contained within accounts receivable, net on our condensed consolidated balance sheets and represent unconditional consideration that will be received solely due to the passage of time. Contract liabilities are contained within deferred revenue on our condensed consolidated balance sheets. Deferred revenue primarily consists of advanced payments from students related to rental and subscription performance obligations that have not been satisfied and estimated variable consideration. Deferred revenue related to rental and subscription performance obligations is recognized as revenues ratably over the term for subscriptions or when the services are provided and all other revenue recognition criteria have been met. Deferred revenue related to variable consideration is recognized as revenues during each reporting period based on the estimated amount we believe we will earn over the life of the contract.

        We have elected a practical expedient to record incremental costs to obtain or fulfill a contract when the amortization period would have been one year or less as incurred. These incremental costs primarily relate to sales commissions costs and are recorded in sales and marketing expense in our condensed consolidated statements of operations.

Cost of Revenues

Our cost of revenues consists primarily of expenses associated with the delivery and distribution of our products and services. Cost of revenues primarily consists of publisher content fees for eTextbooks, content amortization expense related to content that we develop, licenses from publishers for which we pay one-time license fees, or acquire through acquisitions, write-downs for print textbooks, the gain or loss on print textbooks liquidated, the net book value of print textbooks purchased by students at the end of the term, print textbook depreciation expense, payment processing costs, the payments made to tutors through our Chegg Tutors service, personnel costs and other direct costs related to providing products or services. In addition, cost of revenues includes allocated information technology and facilities costs.

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities; the disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, assumptions, and judgments are used for, but not limited to: revenue recognition, recoverability of accounts receivable, share-based compensation expense including estimated forfeitures, accounting for income taxes, textbook library, useful lives assigned to long-lived assets for depreciation and amortization, impairment of goodwill and long-lived assets, the valuation of acquired intangible assets, the valuation of our convertible senior notes, internal-use software and website development costs, operating lease right of use (ROU) assets, and operating lease liabilities. We base our estimates on historical experience, knowledge of current business conditions, and various other factors we believe to be reasonable under the circumstances. These estimates are based on management’s knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ from these estimates, and such differences could be material to our financial position and results of operations.
Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides temporary optional expedients and exceptions for applying reference rate reform to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The guidance can be applied immediately and only applies to contract modifications made or hedging relationships entered into or evaluated before December 31, 2022. While we do not have any hedging relationships and currently do not believe we have material contracts impacted by reference rate reform, we are in the process of evaluating the impact of this guidance.

Recently Adopted Accounting Pronouncements

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 key changes include hybrid tax regimes, intraperiod tax allocation exception, and interim-period accounting for enacted changes in tax law. We early adopted ASU 2019-12 during the second quarter of 2020 under the prospective method of adoption. As a result of adoption, there was no modification required to the first quarter of 2020 results of operations as previously presented.

The FASB issued four ASUs related to Accounting Standards Codification (ASC) 326, Financial Instruments - Credit Losses. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. 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. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. On January 1, 2020, we adopted ASC 326, which replaces the existing incurred loss impairment model for financial assets, including trade receivables, with an expected loss model which requires the use of forward-looking information to calculate expected credit loss estimates. Additionally, the concept of other-than-temporary impairment for available-for-sale investments is eliminated and instead requires us to focus on determining whether any unrealized loss is a result of a credit loss or other factors. We adopted ASC 326 under the modified retrospective method for all financial assets measured at amortized cost. Results for reporting periods beginning after adoption are presented under ASC 326 while we have not changed previously disclosed amounts or provided additional disclosures for comparative periods. We recorded an immaterial cumulative-effect adjustment to trade receivables to the opening balance of accumulated deficit in our condensed consolidated balance sheet. We adopted ASC 326 under the prospective transition approach for available-for-sale investments which resulted in no change to amortized cost basis before and after adoption. Credit losses related to available-for-sale investments will now be recorded through an allowance for credit losses with immediate recognition to our condensed consolidated statement of operations rather than as a reduction to the amortized cost basis and recognition to our condensed consolidated statements of comprehensive income (loss). See above within Note 1, “Background and Basis of Presentation”, for updates to our significant accounting policies impacted by our adoption of ASC 326 as well as Note 4, “Cash and Cash Equivalents, and Investments” for more information.

In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with existing guidance contained within subtopic 350-40 to develop or obtain internal-use software. We adopted ASU 2018-15 on January 1, 2020 under the prospective method of adoption.
v3.20.2
Revenues
 6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
Revenue Recognition

Revenues are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. The majority of our revenues are recognized over time as services are performed, with certain revenues, most significantly the revenue share we earn from our print textbook partners, being recognized at the point in time when print textbooks are shipped to students.
The following tables set forth our total net revenues for the periods shown disaggregated for our Chegg Services and Required Materials product lines (in thousands, except percentages):
 Three Months Ended June 30,Change
 20202019$%
Chegg Services$126,004  $80,307  $45,697  57 %
Required Materials27,005  13,555  13,450  99  
Total net revenues$153,009  $93,862  $59,147  63  

 Six Months Ended June 30,Change
 20202019$%
Chegg Services$226,363  $155,599  $70,764  45 %
Required Materials58,236  35,672  22,564  63  
Total net revenues$284,599  $191,271  $93,328  49  

During the three and six months ended June 30, 2020, we recognized $33.4 million and $17.8 million, respectively, of revenues that were included in our deferred revenue balance at the beginning of each reporting period. During the three and six months ended June 30, 2019, we recognized $19.9 million and $13.6 million, respectively, of revenues that were included in our deferred revenue balance at the beginning of each reporting period. During the three and six months ended June 30, 2020, we recognized an immaterial amount of previously deferred revenues recognized from performance obligations satisfied in previous periods. During the three and six months ended June 30, 2019, we recognized $0.7 million of previously deferred revenues recognized from performance obligations satisfied in previous periods related to variable consideration recognized from our agreement with our Required Materials print textbook partner. During the three and six months ended June 30, 2020, we recognized $11.1 million and $23.4 million, respectively, of operating lease income from print textbook rentals that we own. The aggregate amount of unsatisfied performance obligations is approximately $28.3 million as of June 30, 2020, which are expected to be recognized as revenues over the next year.

Contract Balances

The following table presents our accounts receivable, net, deferred revenue, and contract assets balances (in thousands, except percentages):
 Change
 June 30, 2020December 31, 2019$%
Accounts receivable, net$8,834  $11,529  $(2,695) (23)%
Deferred revenue28,320  18,780  9,540  51  
Contract assets4,742  3,531  1,211  34  

During the six months ended June 30, 2020, our accounts receivable, net balance decreased by $2.7 million, or 23%, primarily due to timing of billings and seasonality of our business. During the six months ended June 30, 2020, our deferred revenue balance increased by $9.5 million, or 51%, primarily due to increased bookings driven by the seasonality of our business as well as from print textbooks that we own that are recognized ratably rather than immediately. During the six months ended June 30, 2020, our contract assets balance increased by $1.2 million, or 34%, primarily due to payment arrangements for Thinkful.
v3.20.2
Net Income (Loss) Per Share
 6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share Net Income (Loss) Per ShareBasic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potential shares of common stock, including stock options, restricted stock units (RSUs), performance-based restricted stock units (PSUs), and shares related to convertible senior notes, to the extent dilutive.
The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Numerator:
Net income (loss)$10,589  $(2,029) $4,876  $(6,347) 
Denominator:
Weighted average shares used to compute net income (loss) per share, basic123,842  118,790  123,135  117,766  
Options to purchase common stock958  —  1,013  —  
RSUs and PSUs2,707  —  3,175  —  
Shares related to convertible senior notes6,344  —  5,351  —  
Weighted average shares used to compute net income (loss) per share, diluted133,851  118,790  132,674  117,766  
Net income (loss) per share, basic$0.09  $(0.02) $0.04  $(0.05) 
Net income (loss) per share, diluted$0.08  $(0.02) $0.04  $(0.05) 

The following potential weighted-average shares of common stock outstanding were excluded from the computation of diluted net income (loss) per share because including them would have been anti-dilutive (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Options to purchase common stock—  2,753  —  3,006  
RSUs and PSUs103  3,787  52  5,394  
Shares related to convertible senior notes—  3,646  —  3,494  
Employee stock purchase plan 10  —  10  —  
Total common stock equivalents113  10,186  62  11,894  
Shares related to convertible senior notes represents the dilutive and anti-dilutive impact of our issuance of $345 million in aggregate principal amount of our 2023 notes as the average price of our common stock was higher than the conversion price of $26.95 and the conditions for conversion had been met. These shares were dilutive during the three and six months ended June 30, 2020 as we were in a net income position and anti-dilutive during the three and six months ended June 30, 2019 as we were in a net loss position. However, as a result of the capped call transactions, there will be no economic dilution from the 2023 notes up to $40.68, as exercise of the capped call instruments will reduce dilution from the 2023 notes that would have otherwise occurred when the average price of our common stock exceeds the conversion price. None of the shares related to our issuance of $800 million in aggregate principal amount of our 2025 notes were dilutive or anti-dilutive during the three and six months ended June 30, 2020 and 2019
v3.20.2
Cash and Cash Equivalents, and Investments
 6 Months Ended
Jun. 30, 2020
Cash and Cash Equivalents [Abstract]  
Cash and Cash Equivalents, and Investment Cash and Cash Equivalents, and Investments
 
The following tables show our cash and cash equivalents, and investments’ adjusted cost, unrealized gain, unrealized loss, and fair value as of June 30, 2020 and December 31, 2019 (in thousands):
 June 30, 2020
 Adjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$17,660  $—  $—  $17,660  
U.S. treasury securities117,402  —  —  117,402  
Money market funds150,002  —  —  150,002  
Total cash and cash equivalents$285,064  $—  $—  $285,064  
Short-term investments:   
Corporate securities$399,894  $2,581  $(41) $402,434  
U.S. treasury securities15,042  54  —  15,096  
Total short-term investments$414,936  $2,635  $(41) $417,530  
Long-term investments:   
Corporate securities$218,099  $1,851  $(214) $219,736  
Agency bonds60,752  9  (5) 60,756  
Total long-term investments$278,851  $1,860  $(219) $280,492  

 December 31, 2019
 Adjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$241,355  $—  $—  $241,355  
Money market funds146,165  —  —  146,165  
Total cash and cash equivalents$387,520  $—  $—  $387,520  
Short-term investments:   
Commercial paper$7,489  $—  $—  $7,489  
Corporate securities318,946  425  (78) 319,293  
U.S. treasury securities44,251  39  (4) 44,286  
Agency bonds10,000  6  —  10,006  
Total short-term investments$380,686  $470  $(82) $381,074  
Long-term investments:   
Corporate securities$295,103  $533  $(158) $295,478  
Agency bonds14,999  6  —  15,005  
Total long-term investments$310,102  $539  $(158) $310,483  

The following table shows our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of June 30, 2020 (in thousands):
 Adjusted CostFair Value
Due in 1 year or less$532,338  $534,932  
Due in 1-2 years278,851  280,492  
Investments not due at a single maturity date150,002  150,002  
Total$961,191  $965,426  

Investments not due at a single maturity date in the preceding table consisted of money market funds.
As of June 30, 2020, we did not consider the declines in market value of our investment portfolio to be driven by credit related factors. When evaluating whether an investment's unrealized losses are related to credit factors, we review factors such as the extent to which fair value is below its cost basis, any changes to the credit rating of the security, adverse conditions specifically related to the security, changes in market interest rates and our intent to sell, or whether it is more likely than not we will be required to sell, before recovery of cost basis. We typically invest in highly-rated securities with a minimum credit rating of A-, a weighted average maturity of 9 months, and our investment policy limits the amount of credit exposure to any one issuer or industry sector. The policy requires investments generally to be investment grade, with the primary objective of preserving capital and maintaining liquidity. Fair values were determined for each individual security in the investment portfolio. During the three and six months ended June 30, 2020, we did not recognize any losses on our investments due to credit related factors. During the three and six months ended June 30, 2019, we did not recognize any impairment charges.

Restricted Cash

As of June 30, 2020 and December 31, 2019, we had approximately $2.0 million and $1.9 million, respectively, of restricted cash that primarily consists of security deposits for our corporate offices. These amounts are classified in either other current assets or other assets on our condensed consolidated balance sheets based upon the term of the remaining restrictions.

Strategic Investments

In March 2020, we completed an investment of $2.0 million in TAPD, Inc., also known as Frank, a U.S.-based service that helps students access financial aid. In October 2018, we completed an investment of $10.0 million in WayUp, Inc., a U.S.-based job site and mobile application for college students and recent graduates. Additionally, we previously invested $3.0 million in a foreign entity to explore expanding our reach internationally. We did not record any impairment charges on our strategic investments during the three and six months ended June 30, 2020 and 2019, as there were no significant identified events or changes in circumstances that would be considered an indicator for impairment. We considered general market conditions as a result of the COVID-19 pandemic in our impairment analysis. There were no observable price changes in orderly transactions for the identical or similar investments of the same issuers during the three and six months ended June 30, 2020 and 2019.
v3.20.2
Fair Value Measurement
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurement Fair Value Measurement
We have established a fair value hierarchy used to determine the fair value of our financial instruments as follows:

Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments.

Level 3—Inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value; the inputs require significant management judgment or estimation.

A financial instrument’s classification within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.
Financial instruments measured and recorded at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 are classified based on the valuation technique level in the tables below (in thousands):
 June 30, 2020
 TotalLevel 1Level 2
Assets:   
Cash equivalents:   
U.S. treasury securities$117,402  $117,402  $—  
Money market funds150,002  150,002  —  
Short-term investments: 
Corporate securities402,434  —  402,434  
U.S. treasury securities15,096  15,096  —  
Long-term investments:
Corporate securities219,736  —  219,736  
Agency bonds60,756  —  60,756  
Total assets measured and recorded at fair value$965,426  $282,500  $682,926  

 December 31, 2019
 TotalLevel 1Level 2
Assets:   
Cash equivalents:   
Money market funds$146,165  $146,165  $—  
Short-term investments:
Commercial paper7,489  —  7,489  
Corporate securities319,293  —  319,293  
U.S. treasury securities44,286  44,286  —  
Agency bonds10,006  —  10,006  
Long-term investments:
Corporate securities295,478  —  295,478  
Agency bonds15,005  —  15,005  
Total assets measured and recorded at fair value$837,722  $190,451  $647,271  
 
We value our investments based on quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. Other than our money market funds and U.S. treasury securities, we classify our fixed income available-for-sale investments as having Level 2 inputs. The valuation techniques used to measure the fair value of our financial instruments having Level 2 inputs were derived from non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models such as discounted cash flow techniques. We do not hold any investments valued with a Level 3 input.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
 
Financial Instruments Not Recorded at Fair Value on a Recurring Basis

We report our financial instruments at fair value with the exception of the notes. The estimated fair value of the notes was determined based on the trading price of the notes as of the last day of trading for the period. We consider the fair value of the notes to be a Level 2 measurement due to the limited trading activity. For further information on the notes see Note 8, “Convertible Senior Notes.”
The carrying amounts and estimated fair values of the notes as of June 30, 2020 and December 31, 2019 are as follows (in thousands):
June 30, 2020December 31, 2019
 Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair Value
2025 notes$621,508  $1,135,320  $602,611  $831,000  
2023 notes304,685  862,840  297,692  523,538  
Convertible senior notes, net$926,193  $1,998,160  $900,303  $1,354,538  
The carrying amount of the 2025 notes and 2023 notes as of June 30, 2020 was net of unamortized debt discount of $167.0 million and $36.0 million, respectively, and unamortized issuance costs of $11.5 million and $4.3 million, respectively. The carrying amount of the 2025 notes and 2023 notes as of December 31, 2019 was net of unamortized debt discount of $184.7 million and $42.3 million, respectively, and unamortized issuance costs of $12.7 million and $5.0 million, respectively.
v3.20.2
Acquisitions
 6 Months Ended
Jun. 30, 2020
Business Combinations [Abstract]  
Acquisitions Acquisitions
On June 4, 2020, we completed our acquisition of Mathway, LLC (Mathway), an online, on-demand math problem solving company that provides a vast range of subject areas in mathematics, including pre-algebra, algebra, trigonometry, pre-calculus, calculus, and linear algebra, and related disciplines. This acquisition helps to strengthen our existing Chegg Math Solver service with the addition of new subjects, languages, and international reach. The total fair value of the purchase consideration was $101.0 million, of which $93.5 million was paid in cash on the acquisition date and $7.5 million, included within other long-term liabilities, was held in escrow as security for general representations and warranties and potential post-closing adjustments. Any remaining escrow amount will be released 15 months after the acquisition date.

The Mathway purchase agreement provides for additional payments of up to $15.0 million subject to the achievement of specified milestones and continued employment of the sellers. These payments are not included in the fair value of the purchase consideration but rather are expensed ratably as acquisition-related compensation costs classified as research and development and general and administrative expenses, based on the seller's job function, on our condensed consolidated statement of operations. We have recorded approximately $0.4 million as of June 30, 2020, included within accrued liabilities on our condensed consolidated balance sheet for these payments.

The following table presents the preliminary total allocation of purchase consideration recorded on our condensed consolidated balance sheet as of the acquisition date (in thousands):
 Mathway
Cash$712  
Accounts receivable1,132  
Other acquired assets779  
Acquired intangible assets30,320  
Total identifiable assets acquired32,943  
Deferred revenue(1,423) 
Liabilities assumed(727) 
Net identifiable assets acquired30,793  
Goodwill70,167  
Total fair value of purchase consideration$100,960  

Goodwill is primarily attributable to the potential for enhancing our existing offerings and expanding our reach by providing additional mathematics support for students and helping them through their academic journey. The amounts recorded for intangible assets and goodwill are deductible for tax purposes.
The following table presents the details of the allocation of purchase consideration to the acquired intangible assets (in thousands, except weighted-average amortization period):
Mathway
AmountWeighted-Average Amortization Period (in months)
Domain names$220  18
Trade name520  18
Customer lists6,220  48
Developed technology23,360  84
Total acquired intangible assets$30,320  75

During the three months ended June 30, 2020, we incurred $3.1 million of acquisition-related expenses associated with our acquisition of Mathway, which have been included in general and administrative expense on our condensed consolidated statement of operations. We have recorded immaterial amounts of revenue and earnings from Mathway since the acquisition date.

The following unaudited supplemental pro forma net income (loss) is for informational purposes only and presents our combined results as if the acquisition of Mathway had occurred on January 1, 2019. The unaudited supplemental pro forma information includes the historical combined operating results adjusted for acquisition-related compensation costs, amortization of intangible assets, share-based compensation expense and acquisition-related expenses and does not necessarily reflect the actual results that would have been achieved, nor is it necessarily indicative of our future consolidated results. During the three and six months ended June 30, 2020, our supplemental pro forma net income would have been $12.7 million and $4.8 million, respectively. During the three and six months ended June 30, 2019, our supplemental pro forma net loss would have been $12.6 million and $19.2 million, respectively. Revenues from Mathway were immaterial during the three and six months ended June 30, 2020 and 2019 and therefore we have not presented pro forma revenues.
v3.20.2
Goodwill and Intangible Assets
 6 Months Ended
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill consists of the following (in thousands):
 Six Months Ended June 30, 2020Year Ended December 31, 2019
Beginning balance$214,513  $149,524  
Additions due to acquisitions70,167  65,181  
Foreign currency translation adjustment2  (192) 
Ending balance$284,682  $214,513  

Intangible assets consist of the following (in thousands, except weighted-average amortization period):
 June 30, 2020
 Weighted-Average Amortization Period (in months)Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Developed technologies and content library72$66,628  $(22,147) $44,481  
Customer lists4716,190  (9,000) 7,190  
Trade and domain names4411,613  (7,046) 4,567  
Non-compete agreements312,018  (1,938) 80  
Indefinite-lived trade name—  3,600  —  3,600  
Foreign currency translation adjustment—  (396) —  (396) 
Total intangible assets64$99,653  $(40,131) $59,522  
 
 December 31, 2019
 Weighted-Average Amortization Period (in months)Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Developed technologies and content library66$43,268  $(18,395) $24,873  
Customer lists479,970  (8,210) 1,760  
Trade and domain names4610,873  (6,169) 4,704  
Non-compete agreements312,018  (1,890) 128  
Indefinite-lived trade name—  3,600  —  3,600  
Foreign currency translation adjustment—  (398) —  (398) 
Total intangible assets58$69,331  $(34,664) $34,667  

During the three and six months ended June 30, 2020, amortization expense related to our finite-lived intangible assets totaled approximately $3.0 million and $5.5 million, respectively. During the three and six months ended June 30, 2019, amortization expense related to our finite-lived intangible assets totaled approximately $1.7 million and $3.5 million, respectively.

As of June 30, 2020, the estimated future amortization expense related to our finite-lived intangible assets is as follows (in thousands):
Remaining six months of 2020$7,331  
202113,691  
202212,000  
20238,760  
20245,707  
Thereafter8,433  
Total$55,922  
v3.20.2
Convertible Senior Notes
 6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Convertible Senior Notes Convertible Senior Notes
In March 2019, we issued $700 million in aggregate principal amount of 0.125% convertible senior notes due in 2025 (2025 notes) and in April 2019, the initial purchasers fully exercised their option to purchase $100 million of additional 2025 notes for aggregate total principal amount of $800 million. In April 2018, we issued $345 million in aggregate principal amount of 0.25% convertible senior notes due in 2023 (2023 notes). The aggregate principal amount of the 2023 notes includes $45 million from the initial purchasers fully exercising their option to purchase additional notes. Collectively, the 2025 notes and 2023 notes are referred to as the “notes.” The notes were issued in private placements to qualified institutional buyers pursuant to Rule 144A of the Securities Act of 1933, as amended. Concurrently with the offering of the 2025 notes and 2023 notes, we used $97.2 million and $39.2 million, respectively, of the net proceeds to enter into privately negotiated capped call transactions.

The total net proceeds from the notes are as follows (in thousands):
2025 Notes2023 Notes
Principal amount$800,000  $345,000  
Less initial purchasers’ discount(18,998) (8,625) 
Less other issuance costs(822) (757) 
Net proceeds$780,180  $335,618  

The notes are our senior, unsecured obligations and are governed by indenture agreements by and between us and Wells Fargo Bank, National Association, as Trustee (the indentures). The 2025 notes bear interest of 0.125% per year which is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2019. The 2025 notes will mature on March 15, 2025 (the 2025 notes maturity date), unless repurchased, redeemed or converted in accordance with their terms prior to such date. The 2023 notes bear interest of 0.25% per year which is payable semi-annually in arrears on
May 15 and November 15 of each year, beginning on November 15, 2018. The 2023 notes will mature on May 15, 2023 (the 2023 notes maturity date), unless repurchased, redeemed or converted in accordance with their terms prior to such date.

Each $1,000 principal amount of the 2025 notes will initially be convertible into 19.3956 shares of our common stock. This is equivalent to an initial conversion price of approximately $51.56 per share, which is subject to adjustment in certain circumstances. Each $1,000 principal amount of the 2023 notes will initially be convertible into 37.1051 shares of our common stock. This is equivalent to an initial conversion price of approximately $26.95 per share, which is subject to adjustment in certain circumstances.

Prior to the close of business on the business day immediately preceding December 15, 2024 for the 2025 notes and February 15, 2023 for the 2023 notes, the notes are convertible at the option of holders only upon satisfaction of the following circumstances:

•during any calendar quarter commencing after the calendar quarter ending on June 30, 2019 for the 2025 notes and June 30, 2018 for the 2023 notes, if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the respective conversion price for the notes on each applicable trading day;
•during the five-business day period after any 10 consecutive trading day period (the measurement period) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day;
•if we call any or all of the notes for redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the redemption date; or
•upon the occurrence of certain specified corporate events described in the indentures.

On or after December 15, 2024 for the 2025 notes and February 15, 2023 for the 2023 notes until the close of business on the second scheduled trading day immediately preceding the respective maturity dates, holders may convert their notes at any time, regardless of the foregoing circumstances. Upon conversion, the notes may be settled in shares of our common stock, cash or a combination of cash and shares of our common stock, at our election.

The conditions allowing holders of the 2025 notes to convert were not met and therefore the 2025 notes are not convertible. The first circumstance allowing holders of the 2023 notes to convert was met during the three months ended June 30, 2020, March 31, 2020, December 31, 2019, June 30, 2019, and March 31, 2019. Therefore, the 2023 notes were and are convertible starting April 1, 2019 through September 30, 2019 and from January 1, 2020 through September 30, 2020. During the three and six months ended June 30, 2020, we received immaterial requests for conversion of the 2023 notes which we either settled in cash during the three months ended June 30, 2020 or expect to settle in cash during the three months ended September 30, 2020.

The net carrying amount of the liability component of the notes is as follows (in thousands):
June 30, 2020December 31, 2019
2025 Notes2023 Notes2025 Notes2023 Notes
Principal$800,000  $344,998  $800,000  $345,000  
Unamortized debt discount(167,016) (36,029) (184,698) (42,280) 
Unamortized issuance costs(11,476) (4,284) (12,691) (5,028) 
Net carrying amount (liability)$621,508  $304,685  $602,611  $297,692  
        
The net carrying amount of the equity component of the notes is as follows (in thousands):
June 30, 2020December 31, 2019
2025 Notes2023 Notes2025 Notes2023 Notes
Debt discount for conversion option$212,000  $64,192  $212,000  $64,193  
Issuance costs(5,253) (1,749) (5,253) (1,749) 
Net carrying amount (equity)$206,747  $62,443  $206,747  $62,444  
        
As of June 30, 2020, the remaining lives of the 2025 notes and 2023 notes are approximately 4.7 years and 2.9 years, respectively. Based on the closing price of our common stock of $67.26 on June 30, 2020, the if-converted value of the 2025
notes was approximately $1,043.6 million which exceeds the principal amount of $800 million by approximately $243.6 million and the if-converted value of the 2023 notes was approximately $861.0 million which exceeds the principal amount of $345 million by approximately $516.0 million.

The effective interest rates of the liability components for the 2025 notes and 2023 notes are 5.40% and 4.34%, respectively, and each is based on the interest rate of similar debt instruments, at the time of our offering, that do not have associated convertible features. The following tables set forth the total interest expense recognized related to the notes (in thousands):
Three Months Ended June 30,
20202019
2025 Notes2023 Notes2025 Notes2023 Notes
Contractual interest expense$249  $215  $251  $215  
Amortization of debt discount8,842  3,126  8,914  3,125  
Amortization of issuance costs607  371  613  368  
Total interest expense$9,698  $3,712  $9,778  $3,708  

Six Months Ended June 30,
20202019
2025 Notes2023 Notes2025 Notes2023 Notes
Contractual interest expense$498  $430  $265  $428  
Amortization of debt discount17,683  6,251  9,424  6,216  
Amortization of issuance costs1,215  743  648  737  
Total interest expense$19,396  $7,424  $10,337  $7,381  

Capped Call Transactions

Concurrently with the offering of the 2025 notes and 2023 notes, we used $97.2 million and $39.2 million, respectively, of the net proceeds to enter into privately negotiated capped call transactions which are expected to generally reduce or offset potential dilution to holders of our common stock upon conversion of the notes and/or offset the potential cash payments we would be required to make in excess of the principal amount of any converted notes. The capped call transactions automatically exercise upon conversion of the notes and cover 15,516,480 and 12,801,185 shares of our common stock for the 2025 notes and 2023 notes, respectively, and are intended to effectively increase the overall conversion price from $51.56 to $79.32 per share for the 2025 notes and $26.95 to $40.68 per share for the 2023 notes. The effective increase in conversion price as a result of the capped call transactions serves to reduce potential dilution to holders of our common stock and/or offset the cash payments we are required to make in excess of the principal amount of any converted notes. As these transactions meet certain accounting criteria, they are recorded in stockholders’ equity as a reduction of additional paid-in capital on our condensed consolidated balance sheets and are not accounted for as derivatives. The fair value of the capped call instrument is not remeasured each reporting period. The cost of the capped call is not expected to be deductible for tax purposes.
v3.20.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
From time to time, third parties may assert patent infringement claims against us in the form of letters, litigation, or other forms of communication. In addition, we may from time to time be subject to other legal proceedings and claims in the ordinary course of business, including claims of alleged infringement of trademarks, copyrights, and other intellectual property rights; employment claims; and general contract or other claims. We may also, from time to time, be subject to various legal or government claims, disputes, or investigations. Such matters may include, but not be limited to, claims, disputes, or investigations related to warranty, refund, breach of contract, employment, intellectual property, government regulation, or compliance or other matters.

On June 18, 2020, we received a Civil Investigative Demand (CID) from the Federal Trade Commission (FTC) to determine whether we may have violated Section 5 of the FTC Act or the Children's Online Privacy Protection Act (COPPA), as they relate to deceptive or unfair acts or practices related to consumer privacy and/or data security. Pursuant to the CID, the FTC has requested responses to interrogatories and the production of documents pertaining to data breach incidents and our data security and privacy practices generally. Efforts are currently underway to collect the documents and information requested. We are also in dialogue with the FTC to reach agreement on the order and timing of our responses.
On May 12, 2020, we received notice that 15,107 arbitration demands were filed against us by individuals represented by the same legal counsel, each alleging to have suffered more than $25,000 in damages as a result of the 2018 Data Incident. On July 1, 2020, an additional 1,007 arbitration demands were filed by the same counsel. We dispute that these claimants have a valid basis for seeking arbitration and assert that they have acted in bad faith. We are currently discussing these issues with the arbitrator and with claimants’ counsel.

On March 3, 2020, Ingram Hosting Holdings LLC (IHH) filed a complaint in the U.S. District Court for the Middle District of Tennessee alleging that Chegg breached its various contracts with IHH and other Ingram group entities, seeking damages in the amount of $17 million. An answer was filed on March 31, 2020. Chegg and Ingram have now dismissed the litigation after reaching an amicable settlement of the dispute which includes an immaterial undisclosed payment from Ingram.

On November 5, 2018, NetSoc, LLC (NetSoc) filed a complaint against us in the U.S. District Court for the Southern District of New York for patent infringement alleging that the Chegg Tutors service infringes U.S. Patent No. 9.978,107 and seeking unspecified compensatory damages. A responsive pleading was filed on February 19, 2019. On January 13, 2020, the Court issued an order dismissing the case as to Chegg. On January 30, 2020, NetSoc appealed the dismissal. On April 21, 2020, the Court granted Chegg's motion to hold the appeal in abeyance pending outcome of an appeal in the litigation above.
We have not recorded any amounts related to the above matters, as we do not believe that a loss is probable in these matters. We are not aware of any other pending legal matters or claims, individually or in the aggregate, that are expected to have a material adverse impact on our condensed consolidated financial position, results of operations, or cash flows. However, our analysis of whether a claim may proceed to litigation cannot be predicted with certainty, nor can the results of litigation be predicted with certainty. Nevertheless, defending any of these actions, regardless of the outcome, may be costly, time consuming, distract management personnel and have a negative effect on our business. An adverse outcome in any of these actions, including a judgment or settlement, may cause a material adverse effect on our future business, operating results and/or financial condition.
v3.20.2
Guarantees and Indemnifications
 6 Months Ended
Jun. 30, 2020
Guarantees And Indemnifications [Abstract]  
Guarantees and Indemnifications Guarantees and Indemnifications
We have agreed to indemnify our directors and officers for certain events or occurrences, subject to certain limits, while such persons are or were serving at our request in such capacity. We may terminate the indemnification agreements with these persons upon termination of employment, but termination will not affect claims for indemnification related to events occurring prior to the effective date of termination. We have a directors’ and officers’ insurance policy that limits our potential exposure up to the limits of our insurance coverage. In addition, we also have other indemnification agreements with various vendors against certain claims, liabilities, losses, and damages. The maximum amount of potential future indemnification is unlimited.

We believe the fair value of these indemnification agreements is minimal. We have not recorded any liabilities for these agreements as of June 30, 2020.
v3.20.2
Stockholders' Equity
 6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
Stockholders' Equity Stockholders' Equity
Securities Repurchase Program

In June 2020, our board of directors approved a securities repurchase program pursuant to which we may, from time to time, repurchase up to $500.0 million of our common stock and/or convertible notes, through open market purchases, block trades, and/or privately negotiated transactions or pursuant to Rule 10b5-1 plans, in compliance with applicable securities laws and other legal requirements. The timing, volume, and nature of the repurchases will be determined by management based on the capital needs of the business, market conditions, applicable legal requirements, and other factors. The repurchase program will end on December 31, 2021. There were no securities repurchased during the three months ended June 30, 2020.
Share-based Compensation Expense

Total share-based compensation expense recorded for employees and non-employees is as follows (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Cost of revenues$213  $74  $382  $199  
Research and development7,620  5,218  14,611  10,135  
Sales and marketing2,436  1,754  4,622  3,562  
General and administrative9,277  8,406  18,265  16,594  
Total share-based compensation expense$19,546  $15,452  $37,880  $30,490  

RSU and PSU Activity

Activity for RSUs and PSUs is as follows:
 RSUs and PSUs Outstanding
 Shares OutstandingWeighted Average Grant Date Fair Value
Balance at December 31, 20196,909,530  $24.04  
Granted2,298,799  41.67  
Released(3,197,978) 17.99  
Canceled(351,049) 30.00  
Balance at June 30, 20205,659,302  $34.24  

As of June 30, 2020, our total unrecognized share-based compensation expense related to RSUs and PSUs was approximately $130.7 million, which will be recognized over the remaining weighted-average vesting period of approximately 2.2 years.
v3.20.2
Income Taxes
 6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes Income TaxesWe recorded an income tax provision of approximately $1.3 million and $1.8 million during the three and six months ended June 30, 2020, respectively, primarily due to state and foreign income tax expense. We recorded an income tax provision of approximately $0.6 million and $1.2 million during the three and six months ended June 30, 2019, respectively, primarily due to state and foreign income tax expense.
v3.20.2
Related-Party Transactions
 6 Months Ended
Jun. 30, 2020
Related Party Transactions [Abstract]  
Related-Party Transactions Related-Party Transactions
Our Chief Executive Officer is a member of the Board of Directors of Adobe Systems Incorporated (Adobe). During the three and six months ended June 30, 2020, we purchased $0.4 million and $0.8 million, respectively, and during the three and six months ended June 30, 2019, we purchased $0.4 million and $1.4 million, respectively, of services from Adobe. We had no revenues during the three months ended June 30, 2020 and $0.1 million of revenues during the six months ended June 30, 2020 from Adobe. We had no revenues during the three and six months ended June 30, 2019 from Adobe. We had an immaterial amount and $0.2 million of payables as of June 30, 2020 and December 31, 2019, respectively, to Adobe. We had $0.1 million of outstanding receivables and no outstanding receivables as of June 30, 2020 and December 31, 2019 from Adobe.

The immediate family of one of our board members is a member of the Board of Directors of PayPal Holdings, Inc. (PayPal). During the three and six months ended June 30, 2020, we incurred payment processing fees of $0.5 million and $1.0 million, respectively, and during the three and six months ended June 30, 2019, we incurred payment processing fees of $0.4 million and $0.8 million, respectively, to PayPal.

One of our board members is also a member of the Board of Directors of Synack, Inc. (Synack). We had no purchases of services from Synack during the three months ended June 30, 2020 and 2019. During the six months ended June 30, 2020 and 2019, we purchased $0.1 million and $0.3 million, respectively, of services from Synack.
v3.20.2
Background and Basis of Presentation (Policies)
 6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
Basis of Presentation

The accompanying condensed consolidated balance sheet as of June 30, 2020, the condensed consolidated statements of operations, the condensed consolidated statements of comprehensive income (loss), and the condensed consolidated statements of stockholder's equity for the three and six months ended June 30, 2020 and 2019, and the condensed consolidated statements of cash flows for the six months ended June 30, 2020 and 2019, and the related footnote disclosures are unaudited. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring adjustments, necessary to present fairly our financial position as of June 30, 2020, our results of operations, results of comprehensive income (loss), and stockholder's equity for the three and six months ended June 30, 2020 and 2019, and cash flows for the six months ended June 30, 2020 and 2019. Our results of operations, results of comprehensive income (loss), stockholder's equity, and cash flows for the six months ended June 30, 2020 are not necessarily indicative of the results to be expected for the full year.

We operate in a single segment. Our fiscal year ends on December 31 and in this report we refer to the year ended December 31, 2019 as 2019.

The condensed consolidated financial statements and related financial information should be read in conjunction with the audited consolidated financial statements and the related notes thereto that are included in our Annual Report on Form 10-K for the year ended December 31, 2019 (the Annual Report on Form 10-K) filed with the U.S. Securities and Exchange Commission (SEC).

Except for our policies on investments, textbook library, revenue recognition and deferred revenue, and cost of revenues, there have been no material changes to our significant accounting policies as compared to the significant accounting policies described in our Annual Report on Form 10-K.
Investments InvestmentsWe hold investments in commercial paper, corporate debt securities, U.S. treasury securities, and agency bonds. We classify our investments as available-for-sale based on the nature of each security that are either short or long-term based on the remaining contractual maturity of the investment. Our available-for-sale investments are carried at estimated fair value with any unrealized gains and losses unrelated to credit loss factors, net of taxes, included in other comprehensive income in our condensed consolidated statements of stockholders’ equity. Beginning in 2020, unrealized losses related to credit loss factors are now recorded through an allowance for credit losses in other income, net in our condensed consolidated statements of operations, rather than as a reduction to the amortized cost basis in other comprehensive income, when a decline in fair value has resulted from a credit loss. We determine realized gains or losses on the sale of investments on a specific identification method, and record such gains or losses as other income, net in our condensed consolidated statements of operations.
Textbook Library
Textbook Library

Beginning in January 2020, we began our transition back to print textbook ownership by purchasing print textbooks to establish our textbook library. We consider our print textbook library to be a long-term productive asset and, as such, classify it as a non-current asset in our condensed consolidated balance sheets. All print textbooks in our textbook library are stated at cost, which includes the purchase price less accumulated depreciation. We write down textbooks on a book-by-book basis for lost, damaged, or excess print textbooks.
We depreciate our print textbooks, less an estimated salvage value, over an estimated useful life of four years using an accelerated method of depreciation, as we estimate this method most accurately reflects the actual pattern of decline in their economic value. The salvage value considers the historical trend and projected proceeds for print textbooks. The useful life is determined based on the estimated time period in which the print textbooks are held and rented. We review the estimated salvage value and useful life of our print textbook library on an ongoing basis.
Write-downs for print textbooks, print textbook depreciation expense, the gain or loss on print textbooks liquidated, and the net book value of print textbooks purchased by students at the end of the term are recorded in cost of revenues in our condensed consolidated statements of operations and classified as adjustments to cash flows from operating activities. Cash outflows for the acquisition of print textbooks net of changes in related accounts payable and accrued liabilities, and cash inflows received from the proceeds from the disposition of print textbooks net of changes in related accounts receivable, are classified as cash flows from investing activities in our condensed consolidated statements of cash flows.
Revenue Recognition and Deferred Revenue
Revenue Recognition and Deferred Revenue

We recognize revenues when the control of goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenues are presented net of sales tax collected from customers to be remitted to governmental authorities and net of allowances for estimated cancellations and customer returns, which are based on historical data. Customer refunds from cancellations and returns are recorded as a reduction to revenues.

We determine revenue recognition through the following steps:

•Identification of the contract, or contracts, with a customer
•Identification of the performance obligations in the contract
•Determination of the transaction price
•Allocation of the transaction price to the performance obligations in the contract
•Recognition of revenue when, or as, we satisfy a performance obligation

We generate revenues from our Chegg Services product line which primarily includes Chegg Study, Chegg Writing, Chegg Tutors, Chegg Math Solver, Thinkful, and Mathway. Revenues from Chegg Study, Chegg Writing, Chegg Tutors, Chegg Math Solver, and Mathway are primarily recognized ratably over the respective weekly or monthly subscription period. Revenues from Thinkful, our skills-based learning platform, are recognized either ratably over the term of the course, generally six months, or upon completion of the lessons, depending on the instruction type of the course.

        Revenues from our Required Materials product line includes revenues from print textbooks that we own or that are owned by a partner as well as revenues from eTextbooks. Beginning in 2020, our Required Materials product line includes operating leases with students for the rental of print textbooks that we own. Operating lease income is recognized as the total transaction amount, paid upon commencement of the lease, ratably over the lease term which is generally a two- to five-month lease period. Students generally have the option to extend the term of their rental or purchase the print textbook at the end of the term otherwise the print textbook is returned to our print textbook library for future rental. Revenues from print textbooks owned by a partner are recognized as a revenue share on the total transactional amount of a rental or sale transaction immediately when a print textbook ships to a student. Shipping and handling activities are expensed as incurred. Revenues from eTextbooks are recognized ratably over the contractual period, generally a two- to five-month period.

Some of our customer arrangements include multiple performance obligations. We have determined these performance obligations qualify as distinct performance obligations, as the customer can benefit from the service on its own or together with other resources that are readily available to the customer, and our promise to transfer the service is separately identifiable from other promises in the contract. For these arrangements that contain multiple performance obligations, we allocate the transaction price based on the relative standalone selling price (SSP) method by comparing the SSP of each distinct performance obligation to the total value of the contract. We determine the SSP based on our historical pricing and discounting
practices for the distinct performance obligation when sold separately. If the SSP is not directly observable, we estimate the SSP by considering information such as market conditions, and information about the customer. Additionally, we limit the amount of revenues recognized for delivered promises to the amount that is not contingent on future delivery of services or other future performance obligations.

Some of our customer arrangements may include an amount of variable consideration in addition to a fixed revenue share that we earn. This variable consideration can either increase or decrease the total transaction price depending on the nature of the variable consideration. We estimate the amount of variable consideration that we will earn at the inception of the contract, adjusted during each period, and include an estimated amount each period.

For sales of third-party products, we evaluate whether we are acting as a principal or an agent, and therefore would record the gross sales amount as revenues and related costs or the net amount earned as a revenue share from the sale of third-party products. Our determination is based on our evaluation of whether we control the specified goods or services prior to transferring them to the customer. In relation to print textbooks owned by a partner, we recognize revenues on a net basis based on our role in the transaction as an agent as we have concluded that we do not control the use of the print textbooks, and therefore record only the net revenue share we earn. We have concluded that we control our Chegg Service, print textbooks that we own, and eTextbook service and therefore we recognize revenues and cost of revenues on a gross basis.

Contract assets are contained within other current assets and other assets on our condensed consolidated balance sheets. Contract assets represent the goods or services that we have transferred to a customer before invoicing the customer. Contract receivables are contained within accounts receivable, net on our condensed consolidated balance sheets and represent unconditional consideration that will be received solely due to the passage of time. Contract liabilities are contained within deferred revenue on our condensed consolidated balance sheets. Deferred revenue primarily consists of advanced payments from students related to rental and subscription performance obligations that have not been satisfied and estimated variable consideration. Deferred revenue related to rental and subscription performance obligations is recognized as revenues ratably over the term for subscriptions or when the services are provided and all other revenue recognition criteria have been met. Deferred revenue related to variable consideration is recognized as revenues during each reporting period based on the estimated amount we believe we will earn over the life of the contract.

        We have elected a practical expedient to record incremental costs to obtain or fulfill a contract when the amortization period would have been one year or less as incurred. These incremental costs primarily relate to sales commissions costs and are recorded in sales and marketing expense in our condensed consolidated statements of operations.
Lessor, Leases Beginning in 2020, our Required Materials product line includes operating leases with students for the rental of print textbooks that we own. Operating lease income is recognized as the total transaction amount, paid upon commencement of the lease, ratably over the lease term which is generally a two- to five-month lease period. Students generally have the option to extend the term of their rental or purchase the print textbook at the end of the term otherwise the print textbook is returned to our print textbook library for future rental.
Cost of Revenues
Cost of Revenues

Our cost of revenues consists primarily of expenses associated with the delivery and distribution of our products and services. Cost of revenues primarily consists of publisher content fees for eTextbooks, content amortization expense related to content that we develop, licenses from publishers for which we pay one-time license fees, or acquire through acquisitions, write-downs for print textbooks, the gain or loss on print textbooks liquidated, the net book value of print textbooks purchased by students at the end of the term, print textbook depreciation expense, payment processing costs, the payments made to tutors through our Chegg Tutors service, personnel costs and other direct costs related to providing products or services. In addition, cost of revenues includes allocated information technology and facilities costs.
Use of Estimates
Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles in the United States requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities; the disclosure of contingent liabilities at the date of the financial statements; and the reported amounts of revenues and expenses during the reporting periods. Significant estimates, assumptions, and judgments are used for, but not limited to: revenue recognition, recoverability of accounts receivable, share-based compensation expense including estimated forfeitures, accounting for income taxes, textbook library, useful lives assigned to long-lived assets for depreciation and amortization, impairment of goodwill and long-lived assets, the valuation of acquired intangible assets, the valuation of our convertible senior notes, internal-use software and website development costs, operating lease right of use (ROU) assets, and operating lease liabilities. We base our estimates on historical experience, knowledge of current business conditions, and various other factors we believe to be reasonable under the circumstances. These estimates are based on management’s knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ from these estimates, and such differences could be material to our financial position and results of operations.
Recent Accounting Pronouncements
Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting. ASU 2020-04 provides temporary optional expedients and exceptions for applying reference rate reform to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The guidance can be applied immediately and only applies to contract modifications made or hedging relationships entered into or evaluated before December 31, 2022. While we do not have any hedging relationships and currently do not believe we have material contracts impacted by reference rate reform, we are in the process of evaluating the impact of this guidance.

Recently Adopted Accounting Pronouncements

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 key changes include hybrid tax regimes, intraperiod tax allocation exception, and interim-period accounting for enacted changes in tax law. We early adopted ASU 2019-12 during the second quarter of 2020 under the prospective method of adoption. As a result of adoption, there was no modification required to the first quarter of 2020 results of operations as previously presented.

The FASB issued four ASUs related to Accounting Standards Codification (ASC) 326, Financial Instruments - Credit Losses. In November 2019, the FASB issued ASU 2019-11, Codification Improvements to Topic 326, Financial Instruments - Credit Losses. In May 2019, the FASB issued ASU 2019-05, Financial Instruments—Credit Losses (Topic 326): Targeted Transition Relief. 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. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. On January 1, 2020, we adopted ASC 326, which replaces the existing incurred loss impairment model for financial assets, including trade receivables, with an expected loss model which requires the use of forward-looking information to calculate expected credit loss estimates. Additionally, the concept of other-than-temporary impairment for available-for-sale investments is eliminated and instead requires us to focus on determining whether any unrealized loss is a result of a credit loss or other factors. We adopted ASC 326 under the modified retrospective method for all financial assets measured at amortized cost. Results for reporting periods beginning after adoption are presented under ASC 326 while we have not changed previously disclosed amounts or provided additional disclosures for comparative periods. We recorded an immaterial cumulative-effect adjustment to trade receivables to the opening balance of accumulated deficit in our condensed consolidated balance sheet. We adopted ASC 326 under the prospective transition approach for available-for-sale investments which resulted in no change to amortized cost basis before and after adoption. Credit losses related to available-for-sale investments will now be recorded through an allowance for credit losses with immediate recognition to our condensed consolidated statement of operations rather than as a reduction to the amortized cost basis and recognition to our condensed consolidated statements of comprehensive income (loss). See above within Note 1, “Background and Basis of Presentation”, for updates to our significant accounting policies impacted by our adoption of ASC 326 as well as Note 4, “Cash and Cash Equivalents, and Investments” for more information.

In August 2018, the FASB issued ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with existing guidance contained within subtopic 350-40 to develop or obtain internal-use software. We adopted ASU 2018-15 on January 1, 2020 under the prospective method of adoption.
Net Loss Per Share Net Income (Loss) Per ShareBasic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potential shares of common stock, including stock options, restricted stock units (RSUs), performance-based restricted stock units (PSUs), and shares related to convertible senior notes, to the extent dilutive.
v3.20.2
Revenues (Tables)
 6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
The following tables set forth our total net revenues for the periods shown disaggregated for our Chegg Services and Required Materials product lines (in thousands, except percentages):
 Three Months Ended June 30,Change
 20202019$%
Chegg Services$126,004  $80,307  $45,697  57 %
Required Materials27,005  13,555  13,450  99  
Total net revenues$153,009  $93,862  $59,147  63  

 Six Months Ended June 30,Change
 20202019$%
Chegg Services$226,363  $155,599  $70,764  45 %
Required Materials58,236  35,672  22,564  63  
Total net revenues$284,599  $191,271  $93,328  49  
Schedule of Accounts Receivable
The following table presents our accounts receivable, net, deferred revenue, and contract assets balances (in thousands, except percentages):
 Change
 June 30, 2020December 31, 2019$%
Accounts receivable, net$8,834  $11,529  $(2,695) (23)%
Deferred revenue28,320  18,780  9,540  51  
Contract assets4,742  3,531  1,211  34  
v3.20.2
Net Income (Loss) Per Share (Tables)
 6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share amounts):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Numerator:
Net income (loss)$10,589  $(2,029) $4,876  $(6,347) 
Denominator:
Weighted average shares used to compute net income (loss) per share, basic123,842  118,790  123,135  117,766  
Options to purchase common stock958  —  1,013  —  
RSUs and PSUs2,707  —  3,175  —  
Shares related to convertible senior notes6,344  —  5,351  —  
Weighted average shares used to compute net income (loss) per share, diluted133,851  118,790  132,674  117,766  
Net income (loss) per share, basic$0.09  $(0.02) $0.04  $(0.05) 
Net income (loss) per share, diluted$0.08  $(0.02) $0.04  $(0.05) 
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
The following potential weighted-average shares of common stock outstanding were excluded from the computation of diluted net income (loss) per share because including them would have been anti-dilutive (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
Options to purchase common stock—  2,753  —  3,006  
RSUs and PSUs103  3,787  52  5,394  
Shares related to convertible senior notes—  3,646  —  3,494  
Employee stock purchase plan 10  —  10  —  
Total common stock equivalents113  10,186  62  11,894  
v3.20.2
Cash and Cash Equivalents, and Investments (Tables)
 6 Months Ended
Jun. 30, 2020
Cash and Cash Equivalents [Abstract]  
Cash, Cash Equivalents and Investments
The following tables show our cash and cash equivalents, and investments’ adjusted cost, unrealized gain, unrealized loss, and fair value as of June 30, 2020 and December 31, 2019 (in thousands):
 June 30, 2020
 Adjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$17,660  $—  $—  $17,660  
U.S. treasury securities117,402  —  —  117,402  
Money market funds150,002  —  —  150,002  
Total cash and cash equivalents$285,064  $—  $—  $285,064  
Short-term investments:   
Corporate securities$399,894  $2,581  $(41) $402,434  
U.S. treasury securities15,042  54  —  15,096  
Total short-term investments$414,936  $2,635  $(41) $417,530  
Long-term investments:   
Corporate securities$218,099  $1,851  $(214) $219,736  
Agency bonds60,752  9  (5) 60,756  
Total long-term investments$278,851  $1,860  $(219) $280,492  

 December 31, 2019
 Adjusted CostUnrealized GainUnrealized LossFair Value
Cash and cash equivalents:   
Cash$241,355  $—  $—  $241,355  
Money market funds146,165  —  —  146,165  
Total cash and cash equivalents$387,520  $—  $—  $387,520  
Short-term investments:   
Commercial paper$7,489  $—  $—  $7,489  
Corporate securities318,946  425  (78) 319,293  
U.S. treasury securities44,251  39  (4) 44,286  
Agency bonds10,000  6  —  10,006  
Total short-term investments$380,686  $470  $(82) $381,074  
Long-term investments:   
Corporate securities$295,103  $533  $(158) $295,478  
Agency bonds14,999  6  —  15,005  
Total long-term investments$310,102  $539  $(158) $310,483  
Schedule of Available-for-sale Securities Reconciliation
The following table shows our cash equivalents and investments' adjusted cost and fair value by contractual maturity as of June 30, 2020 (in thousands):
 Adjusted CostFair Value
Due in 1 year or less$532,338  $534,932  
Due in 1-2 years278,851  280,492  
Investments not due at a single maturity date150,002  150,002  
Total$961,191  $965,426  
v3.20.2
Fair Value Measurement (Tables)
 6 Months Ended
Jun. 30, 2020
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Financial instruments measured and recorded at fair value on a recurring basis as of June 30, 2020 and December 31, 2019 are classified based on the valuation technique level in the tables below (in thousands):
 June 30, 2020
 TotalLevel 1Level 2
Assets:   
Cash equivalents:   
U.S. treasury securities$117,402  $117,402  $—  
Money market funds150,002  150,002  —  
Short-term investments: 
Corporate securities402,434  —  402,434  
U.S. treasury securities15,096  15,096  —  
Long-term investments:
Corporate securities219,736  —  219,736  
Agency bonds60,756  —  60,756  
Total assets measured and recorded at fair value$965,426  $282,500  $682,926  

 December 31, 2019
 TotalLevel 1Level 2
Assets:   
Cash equivalents:   
Money market funds$146,165  $146,165  $—  
Short-term investments:
Commercial paper7,489  —  7,489  
Corporate securities319,293  —  319,293  
U.S. treasury securities44,286  44,286  —  
Agency bonds10,006  —  10,006  
Long-term investments:
Corporate securities295,478  —  295,478  
Agency bonds15,005  —  15,005  
Total assets measured and recorded at fair value$837,722  $190,451  $647,271  
Fair Value Measurements, Nonrecurring
The carrying amounts and estimated fair values of the notes as of June 30, 2020 and December 31, 2019 are as follows (in thousands):
June 30, 2020December 31, 2019
 Carrying AmountEstimated Fair ValueCarrying AmountEstimated Fair Value
2025 notes$621,508  $1,135,320  $602,611  $831,000  
2023 notes304,685  862,840  297,692  523,538  
Convertible senior notes, net$926,193  $1,998,160  $900,303  $1,354,538  
v3.20.2
Acquisitions (Tables)
 6 Months Ended
Jun. 30, 2020
Business Combinations [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The following table presents the preliminary total allocation of purchase consideration recorded on our condensed consolidated balance sheet as of the acquisition date (in thousands):
 Mathway
Cash$712  
Accounts receivable1,132  
Other acquired assets779  
Acquired intangible assets30,320  
Total identifiable assets acquired32,943  
Deferred revenue(1,423) 
Liabilities assumed(727) 
Net identifiable assets acquired30,793  
Goodwill70,167  
Total fair value of purchase consideration$100,960  
Schedule Of Allocation Of Purchase Consideration To Acquired Intangible Assets
The following table presents the details of the allocation of purchase consideration to the acquired intangible assets (in thousands, except weighted-average amortization period):
Mathway
AmountWeighted-Average Amortization Period (in months)
Domain names$220  18
Trade name520  18
Customer lists6,220  48
Developed technology23,360  84
Total acquired intangible assets$30,320  75
v3.20.2
Goodwill and Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill
Goodwill consists of the following (in thousands):
 Six Months Ended June 30, 2020Year Ended December 31, 2019
Beginning balance$214,513  $149,524  
Additions due to acquisitions70,167  65,181  
Foreign currency translation adjustment2  (192) 
Ending balance$284,682  $214,513  
Finite-Lived Intangible Assets
Intangible assets consist of the following (in thousands, except weighted-average amortization period):
 June 30, 2020
 Weighted-Average Amortization Period (in months)Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Developed technologies and content library72$66,628  $(22,147) $44,481  
Customer lists4716,190  (9,000) 7,190  
Trade and domain names4411,613  (7,046) 4,567  
Non-compete agreements312,018  (1,938) 80  
Indefinite-lived trade name—  3,600  —  3,600  
Foreign currency translation adjustment—  (396) —  (396) 
Total intangible assets64$99,653  $(40,131) $59,522  
 
 December 31, 2019
 Weighted-Average Amortization Period (in months)Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Developed technologies and content library66$43,268  $(18,395) $24,873  
Customer lists479,970  (8,210) 1,760  
Trade and domain names4610,873  (6,169) 4,704  
Non-compete agreements312,018  (1,890) 128  
Indefinite-lived trade name—  3,600  —  3,600  
Foreign currency translation adjustment—  (398) —  (398) 
Total intangible assets58$69,331  $(34,664) $34,667  
Indefinite-lived Intangible Assets
Intangible assets consist of the following (in thousands, except weighted-average amortization period):
 June 30, 2020
 Weighted-Average Amortization Period (in months)Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Developed technologies and content library72$66,628  $(22,147) $44,481  
Customer lists4716,190  (9,000) 7,190  
Trade and domain names4411,613  (7,046) 4,567  
Non-compete agreements312,018  (1,938) 80  
Indefinite-lived trade name—  3,600  —  3,600  
Foreign currency translation adjustment—  (396) —  (396) 
Total intangible assets64$99,653  $(40,131) $59,522  
 
 December 31, 2019
 Weighted-Average Amortization Period (in months)Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Developed technologies and content library66$43,268  $(18,395) $24,873  
Customer lists479,970  (8,210) 1,760  
Trade and domain names4610,873  (6,169) 4,704  
Non-compete agreements312,018  (1,890) 128  
Indefinite-lived trade name—  3,600  —  3,600  
Foreign currency translation adjustment—  (398) —  (398) 
Total intangible assets58$69,331  $(34,664) $34,667  
Estimated Future Amortization Expense Related to Intangible Assets
As of June 30, 2020, the estimated future amortization expense related to our finite-lived intangible assets is as follows (in thousands):
Remaining six months of 2020$7,331  
202113,691  
202212,000  
20238,760  
20245,707  
Thereafter8,433  
Total$55,922  
v3.20.2
Convertible Senior Notes (Tables)
 6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
The total net proceeds from the notes are as follows (in thousands):
2025 Notes2023 Notes
Principal amount$800,000  $345,000  
Less initial purchasers’ discount(18,998) (8,625) 
Less other issuance costs(822) (757) 
Net proceeds$780,180  $335,618  
Schedule of Debt
The net carrying amount of the liability component of the notes is as follows (in thousands):
June 30, 2020December 31, 2019
2025 Notes2023 Notes2025 Notes2023 Notes
Principal$800,000  $344,998  $800,000  $345,000  
Unamortized debt discount(167,016) (36,029) (184,698) (42,280) 
Unamortized issuance costs(11,476) (4,284) (12,691) (5,028) 
Net carrying amount (liability)$621,508  $304,685  $602,611  $297,692  
        
The net carrying amount of the equity component of the notes is as follows (in thousands):
June 30, 2020December 31, 2019
2025 Notes2023 Notes2025 Notes2023 Notes
Debt discount for conversion option$212,000  $64,192  $212,000  $64,193  
Issuance costs(5,253) (1,749) (5,253) (1,749) 
Net carrying amount (equity)$206,747  $62,443  $206,747  $62,444  
Schedule Of Interest Expense Recognized The following tables set forth the total interest expense recognized related to the notes (in thousands):
Three Months Ended June 30,
20202019
2025 Notes2023 Notes2025 Notes2023 Notes
Contractual interest expense$249  $215  $251  $215  
Amortization of debt discount8,842  3,126  8,914  3,125  
Amortization of issuance costs607  371  613  368  
Total interest expense$9,698  $3,712  $9,778  $3,708  

Six Months Ended June 30,
20202019
2025 Notes2023 Notes2025 Notes2023 Notes
Contractual interest expense$498  $430  $265  $428  
Amortization of debt discount17,683  6,251  9,424  6,216  
Amortization of issuance costs1,215  743  648  737  
Total interest expense$19,396  $7,424  $10,337  $7,381  
v3.20.2
Stockholders' Equity (Tables)
 6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Expense for Employees and Non-Employees
Total share-based compensation expense recorded for employees and non-employees is as follows (in thousands):
 Three Months Ended June 30,Six Months Ended June 30,
 2020201920202019
Cost of revenues$213  $74  $382  $199  
Research and development7,620  5,218  14,611  10,135  
Sales and marketing2,436  1,754  4,622  3,562  
General and administrative9,277  8,406  18,265  16,594  
Total share-based compensation expense$19,546  $15,452  $37,880  $30,490  
Summary of Restricted Stock Unit Activity
Activity for RSUs and PSUs is as follows:
 RSUs and PSUs Outstanding
 Shares OutstandingWeighted Average Grant Date Fair Value
Balance at December 31, 20196,909,530  $24.04  
Granted2,298,799  41.67  
Released(3,197,978) 17.99  
Canceled(351,049) 30.00  
Balance at June 30, 20205,659,302  $34.24  
v3.20.2
Background and Basis of Presentation (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Textbook library, net $ 27,129 $ 27,129   $ 0
Print textbook depreciation expense   7,062 $ 0  
Gain on textbook library, net   $ (1,371) $ 0  
Textbook Library        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Estimated useful life   4 years    
Textbook library, net 27,100 $ 27,100    
Property, plant and equipment, gross 33,700 33,700    
Accumulated depreciation (6,400) (6,400)    
Write down   (100)    
Print textbook depreciation expense 3,600 7,100    
Gain on textbook library, net $ (200) $ (1,400)    
Textbook Library | Minimum        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Contractual period   2 months    
Textbook Library | Maximum        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Contractual period   5 months    
eTextbooks | Minimum        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Contractual period   2 months    
eTextbooks | Maximum        
Error Corrections and Prior Period Adjustments Restatement [Line Items]        
Contractual period   5 months    
v3.20.2
Revenues (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Disaggregation of Revenue [Line Items]          
Total net revenues $ 153,009 $ 93,862 $ 284,599 $ 191,271  
Change in total net revenues $ 59,147   $ 93,328    
Change in total net revenues, percent 63.00%   49.00%    
Contract with customer, liability, revenue recognized $ 33,400 19,900 $ 17,800 13,600  
Contract with customer, liability, revenue recognized, prior period   700   700  
Accounts receivable, net 8,834   8,834   $ 11,529
Change in accounts receivable     $ (2,695)    
Change in accounts receivable, percent     (23.00%)    
Deferred revenue 28,320   $ 28,320   18,780
Change in deferred revenue     $ 9,540    
Change in deferred revenue, percent     51.00%    
Contract assets 4,742   $ 4,742   $ 3,531
Change in contract assets     $ 1,211    
Change in contract assets, percent     34.00%    
Textbook Library          
Disaggregation of Revenue [Line Items]          
Operating lease income 11,100   $ 23,400    
Chegg Services          
Disaggregation of Revenue [Line Items]          
Total net revenues 126,004 80,307 226,363 155,599  
Change in total net revenues $ 45,697   $ 70,764    
Change in total net revenues, percent 57.00%   45.00%    
Required Materials          
Disaggregation of Revenue [Line Items]          
Total net revenues $ 27,005 $ 13,555 $ 58,236 $ 35,672  
Change in total net revenues $ 13,450   $ 22,564    
Change in total net revenues, percent 99.00%   63.00%    
v3.20.2
Net Income (Loss) Per Share - Computation of Basic and Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Numerator:        
Net income $ 10,589 $ (2,029) $ 4,876 $ (6,347)
Denominator:        
Weighted average shares used to compute net income (loss) per share, basic (in shares) 123,842 118,790 123,135 117,766
Shares related to convertible senior notes 6,344 0 5,351 0
Weighted average shares used to compute net income (loss) per share, diluted (in shares) 133,851 118,790 132,674 117,766
Basic (in dollars per share) $ 0.09 $ (0.02) $ 0.04 $ (0.05)
Diluted (in dollars per share) $ 0.08 $ (0.02) $ 0.04 $ (0.05)
Options to purchase common stock        
Denominator:        
Incremental common shares attributable to dilutive effect 958 0 1,013 0
RSUs and PSUs        
Denominator:        
Incremental common shares attributable to dilutive effect 2,707 0 3,175 0
v3.20.2
Net Income (Loss) Per Share - Shares Excluded From Computation Of Diluted Net Loss Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Dec. 31, 2019
Apr. 30, 2019
Mar. 31, 2019
Apr. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]                
Total common stock equivalents (in shares) 113 10,186 62 11,894        
0.25% Convertible Senior Notes Due 2023 | Senior Notes                
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]                
Face value $ 344,998,000   $ 344,998,000   $ 345,000,000     $ 345,000,000
Conversion price               $ 26.95
0.25% Convertible Senior Notes Due 2023 | Senior Notes | Capped Call                
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]                
Conversion price               $ 40.68
0.125% Convertible Senior Notes Due 2025 | Senior Notes                
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]                
Face value $ 800,000,000   $ 800,000,000   $ 800,000,000 $ 100,000,000 $ 700,000,000  
Conversion price           $ 51.56    
0.125% Convertible Senior Notes Due 2025 | Senior Notes | Capped Call                
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]                
Conversion price           $ 79.32    
Options to purchase common stock                
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]                
Total common stock equivalents (in shares) 0 2,753 0 3,006        
RSUs and PSUs                
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]                
Total common stock equivalents (in shares) 103 3,787 52 5,394        
Senior Notes                
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]                
Total common stock equivalents (in shares) 0 3,646 0 3,494        
Employee stock purchase plan                
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]                
Total common stock equivalents (in shares) 10 0 10 0        
v3.20.2
Cash and Cash Equivalents, and Investments - Schedule of Available For Sale Securities (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost $ 961,191  
Fair Value 965,426  
Cash and cash equivalents:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 285,064 $ 387,520
Unrealized Gain 0 0
Unrealized Loss 0 0
Fair Value 285,064 387,520
Short-term investments:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 414,936 380,686
Unrealized Gain 2,635 470
Unrealized Loss (41) (82)
Fair Value 417,530 381,074
Long-term investments:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 278,851 310,102
Unrealized Gain 1,860 539
Unrealized Loss (219) (158)
Fair Value 280,492 310,483
Commercial paper | Short-term investments:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost   7,489
Unrealized Gain   0
Unrealized Loss   0
Fair Value   7,489
Corporate securities | Short-term investments:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 399,894 318,946
Unrealized Gain 2,581 425
Unrealized Loss (41) (78)
Fair Value 402,434 319,293
Corporate securities | Long-term investments:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 218,099 295,103
Unrealized Gain 1,851 533
Unrealized Loss (214) (158)
Fair Value 219,736 295,478
U.S. treasury securities | Short-term investments:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 15,042 44,251
Unrealized Gain 54 39
Unrealized Loss 0 (4)
Fair Value 15,096 44,286
Agency bonds | Short-term investments:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost   10,000
Unrealized Gain   6
Unrealized Loss   0
Fair Value   10,006
Agency bonds | Long-term investments:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 60,752 14,999
Unrealized Gain 9 6
Unrealized Loss (5) 0
Fair Value 60,756 15,005
Cash | Cash and cash equivalents:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 17,660 241,355
Unrealized Gain 0 0
Unrealized Loss 0 0
Fair Value 17,660 241,355
Money market funds | Cash and cash equivalents:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 150,002 146,165
Unrealized Gain 0 0
Unrealized Loss 0 0
Fair Value 150,002 $ 146,165
U.S. treasury securities | Cash and cash equivalents:    
Debt Securities, Available-for-sale [Line Items]    
Adjusted Cost 117,402  
Unrealized Gain 0  
Unrealized Loss 0  
Fair Value $ 117,402  
v3.20.2
Cash and Cash Equivalents, and Investments - Contractual Maturity (Details)
$ in Thousands
 6 Months Ended
Jun. 30, 2020
USD ($)
Cash and Cash Equivalents [Abstract]  
Due in 1 year or less, Cost $ 532,338
Due in 1-2 years, Cost 278,851
Investments not due at a single maturity date, Cost 150,002
Adjusted Cost 961,191
Due in 1 year or less, Fair Value 534,932
Due in 1-2 years, Fair Value 280,492
Investments not due at a single maturity date, Fair Value 150,002
Total, Fair Value $ 965,426
Weighted average maturity 9 months
v3.20.2
Cash and Cash Equivalents, and Investments - Restricted Cash (Details) - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Security Deposit For Office    
Restricted Cash and Cash Equivalents Items [Line Items]    
Restricted cash $ 2.0 $ 1.9
v3.20.2
Cash and Cash Equivalents, and Investments - Strategic Investment (Details) - USD ($)
$ in Millions
Mar. 31, 2020
Oct. 31, 2018
Dec. 31, 2016
TAPD, Inc.      
Schedule of Investments [Line Items]      
Cost method investment $ 2.0    
WayUp, Inc.      
Schedule of Investments [Line Items]      
Cost method investment   $ 10.0  
Foreign Entity      
Schedule of Investments [Line Items]      
Cost method investment     $ 3.0
v3.20.2
Fair Value Measurement - Financial Instruments (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments $ 417,530 $ 381,074
Long-term investments 280,492 310,483
Fair Value, Measurements, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets measured and recorded at fair value 965,426 837,722
Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets measured and recorded at fair value 282,500 190,451
Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets measured and recorded at fair value 682,926 647,271
Commercial paper | Fair Value, Measurements, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments   7,489
Commercial paper | Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments   0
Commercial paper | Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments   7,489
Corporate securities | Fair Value, Measurements, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 402,434 319,293
Long-term investments 219,736 295,478
Corporate securities | Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 0 0
Long-term investments 0 0
Corporate securities | Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 402,434 319,293
Long-term investments 219,736 295,478
U.S. treasury securities | Fair Value, Measurements, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 15,096 44,286
U.S. treasury securities | Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 15,096 44,286
U.S. treasury securities | Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments 0 0
Agency bonds | Fair Value, Measurements, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments   10,006
Long-term investments 60,756 15,005
Agency bonds | Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments   0
Long-term investments 0 0
Agency bonds | Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Short-term investments   10,006
Long-term investments 60,756 15,005
Money market funds | Fair Value, Measurements, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 150,002 146,165
Money market funds | Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 150,002 146,165
Money market funds | Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 0 $ 0
U.S. treasury securities | Fair Value, Measurements, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 117,402  
U.S. treasury securities | Fair Value, Measurements, Recurring | Level 1    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents 117,402  
U.S. treasury securities | Fair Value, Measurements, Recurring | Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents $ 0  
v3.20.2
Fair Value Measurement - Debt (Details) - Senior Notes - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Carrying Amount | Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes $ 926,193 $ 900,303
Estimated Fair Value | Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes 1,998,160 1,354,538
0.125% Convertible Senior Notes Due 2025    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Unamortized debt discount 167,016 184,698
Unamortized issuance costs 11,476 12,691
0.125% Convertible Senior Notes Due 2025 | Carrying Amount | Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes 621,508 602,611
0.125% Convertible Senior Notes Due 2025 | Estimated Fair Value | Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes 1,135,320 831,000
0.25% Convertible Senior Notes Due 2023    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Unamortized debt discount 36,029 42,280
Unamortized issuance costs 4,284 5,028
0.25% Convertible Senior Notes Due 2023 | Carrying Amount | Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes 304,685 297,692
0.25% Convertible Senior Notes Due 2023 | Estimated Fair Value | Fair Value, Measurements, Nonrecurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Convertible senior notes $ 862,840 $ 523,538
v3.20.2
Acquisitions (Details) - Mathway, LLC - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 04, 2020
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Business Acquisition [Line Items]          
Fair value of purchase consideration $ 101.0        
Initial cash consideration 93.5        
Escrow $ 7.5        
Remaining escrow release period 15 months        
Contingent payments $ 15.0        
Contingent consideration, liability   $ 0.4   $ 0.4  
Acquisition related costs   3.1      
Pro forma net income (loss)   $ 12.7 $ (12.6) $ 4.8 $ (19.2)
v3.20.2
Acquisitions - Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Jun. 04, 2020
Dec. 31, 2019
Dec. 31, 2018
Business Acquisition [Line Items]        
Goodwill $ 284,682   $ 214,513 $ 149,524
Mathway, LLC        
Business Acquisition [Line Items]        
Cash   $ 712    
Accounts receivable   1,132    
Other acquired assets   779    
Acquired intangible assets   30,320    
Total identifiable assets acquired   32,943    
Deferred revenue   (1,423)    
Liabilities assumed   (727)    
Net identifiable assets acquired   30,793    
Goodwill   70,167    
Total fair value of purchase consideration   $ 100,960    
v3.20.2
Acquisitions - Intangible Assets (Details)
$ in Thousands
Jun. 04, 2020
USD ($)
Business Acquisition [Line Items]  
Weighted-Average Amortization Period (in months) 75 months
Mathway, LLC  
Business Acquisition [Line Items]  
Total acquired intangible assets $ 30,320
Domain names  
Business Acquisition [Line Items]  
Total acquired intangible assets $ 220
Weighted-Average Amortization Period (in months) 18 months
Trade and domain names  
Business Acquisition [Line Items]  
Total acquired intangible assets $ 520
Weighted-Average Amortization Period (in months) 18 months
Customer lists  
Business Acquisition [Line Items]  
Total acquired intangible assets $ 6,220
Weighted-Average Amortization Period (in months) 48 months
Developed technology  
Business Acquisition [Line Items]  
Total acquired intangible assets $ 23,360
Weighted-Average Amortization Period (in months) 84 months
v3.20.2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Goodwill [Roll Forward]    
Beginning balance $ 214,513 $ 149,524
Additions due to acquisitions 70,167 65,181
Foreign currency translation adjustment 2 (192)
Ending balance $ 284,682 $ 214,513
v3.20.2
Goodwill and Intangible Assets - Finite-lived and Indefinite-lived Intangibe Assets (Details) - USD ($)
$ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Finite Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in months) 64 months 58 months
Accumulated Amortization $ (40,131) $ (34,664)
Net Carrying Amount 55,922  
Indefinite-lived trade name 3,600 3,600
Foreign currency translation adjustment (396) (398)
Total intangible assets, gross carrying amount 99,653 69,331
Intangible assets, net $ 59,522 $ 34,667
Developed technologies and content library    
Finite Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in months) 72 months 66 months
Gross Carrying Amount $ 66,628 $ 43,268
Accumulated Amortization (22,147) (18,395)
Net Carrying Amount $ 44,481 $ 24,873
Customer lists    
Finite Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in months) 47 months 47 months
Gross Carrying Amount $ 16,190 $ 9,970
Accumulated Amortization (9,000) (8,210)
Net Carrying Amount $ 7,190 $ 1,760
Trade and domain names    
Finite Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in months) 44 months 46 months
Gross Carrying Amount $ 11,613 $ 10,873
Accumulated Amortization (7,046) (6,169)
Net Carrying Amount $ 4,567 $ 4,704
Non-compete agreements    
Finite Lived Intangible Assets [Line Items]    
Weighted-Average Amortization Period (in months) 31 months 31 months
Gross Carrying Amount $ 2,018 $ 2,018
Accumulated Amortization (1,938) (1,890)
Net Carrying Amount $ 80 $ 128
v3.20.2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Acquisition-Related Intangible Assets        
Finite Lived Intangible Assets [Line Items]        
Amortization expense of acquisition related to acquired intangible assets $ 3.0 $ 1.7 $ 5.5 $ 3.5
v3.20.2
Goodwill and Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets (Details)
$ in Thousands
Jun. 30, 2020
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
Remaining six months of 2020 $ 7,331
2021 13,691
2022 12,000
2023 8,760
2024 5,707
Thereafter 8,433
Net Carrying Amount $ 55,922
v3.20.2
Convertible Senior Notes (Details)
 1 Months Ended 6 Months Ended
Apr. 30, 2019
USD ($)
$ / shares
shares
Mar. 31, 2019
USD ($)
Apr. 30, 2018
USD ($)
day
$ / shares
shares
Jun. 30, 2020
USD ($)
$ / shares
Jun. 30, 2019
USD ($)
Dec. 31, 2019
USD ($)
Debt Instrument [Line Items]            
Net proceeds       $ 0 $ 780,180,000  
Senior Notes | 0.125% Convertible Senior Notes Due 2025            
Debt Instrument [Line Items]            
Face value $ 100,000,000 $ 700,000,000   $ 800,000,000   $ 800,000,000
Interest rate, stated percentage   0.125%        
Proceeds from issuance of debt 800,000,000          
Less initial purchasers’ discount (18,998,000)          
Less other issuance costs (822,000)          
Net proceeds $ 780,180,000          
Conversion price | $ / shares $ 51.56          
Debt instrument, remaining useful life       4 years 8 months 12 days    
Share price (in dollars per share) | $ / shares       $ 67.26    
Debt conversion, converted instrument, amount       $ 1,043,600,000    
Debt instrument, if-converted value less than principal       243,600,000    
Interest rate, effective percentage 5.40%          
Senior Notes | 0.125% Convertible Senior Notes Due 2025 | Capped Call            
Debt Instrument [Line Items]            
Net proceeds $ 97,200,000          
Conversion price | $ / shares $ 79.32          
Debt instrument, convertible (in shares) | shares 15,516,480          
Senior Notes | 0.25% Convertible Senior Notes Due 2023            
Debt Instrument [Line Items]            
Face value     $ 345,000,000 $ 344,998,000   $ 345,000,000
Interest rate, stated percentage     0.25%      
Proceeds from issuance of debt     $ 345,000,000      
Less initial purchasers’ discount     (8,625,000)      
Less other issuance costs     (757,000)      
Net proceeds     335,618,000      
Option to purchase additional notes     $ 45,000,000      
Conversion ratio   0.0193956 0.0371051      
Conversion price | $ / shares     $ 26.95      
Debt instrument, remaining useful life       2 years 10 months 24 days    
Debt conversion, converted instrument, amount       $ 861,000,000.0    
Debt instrument, if-converted value in excess of principal       $ 516,000,000.0    
Interest rate, effective percentage     4.34%      
Senior Notes | 0.25% Convertible Senior Notes Due 2023 | Sale Price Is Greater Or Equal 130%            
Debt Instrument [Line Items]            
Threshold trading days | day     20      
Threshold consecutive trading days | day     30      
Threshold percentage of stock price trigger     130.00%      
Senior Notes | 0.25% Convertible Senior Notes Due 2023 | Trading Price Per $1,000 Principal Amount Less Than 98%            
Debt Instrument [Line Items]            
Threshold trading days | day     5      
Threshold consecutive trading days | day     10      
Senior Notes | 0.25% Convertible Senior Notes Due 2023 | Trading Price Per $1,000 Principal Amount Less Than 98% | Maximum            
Debt Instrument [Line Items]            
Threshold percentage of stock price trigger     98.00%      
Senior Notes | 0.25% Convertible Senior Notes Due 2023 | Capped Call            
Debt Instrument [Line Items]            
Net proceeds     $ 39,200,000      
Conversion price | $ / shares     $ 40.68      
Debt instrument, convertible (in shares) | shares     12,801,185      
v3.20.2
Convertible Senior Notes - Net Carrying Amount (Details) - Senior Notes - USD ($)
Jun. 30, 2020
Dec. 31, 2019
Apr. 30, 2019
Mar. 31, 2019
Apr. 30, 2018
0.125% Convertible Senior Notes Due 2025          
Debt Instrument [Line Items]          
Principal $ 800,000,000 $ 800,000,000 $ 100,000,000 $ 700,000,000  
Unamortized debt discount (167,016,000) (184,698,000)      
Unamortized issuance costs (11,476,000) (12,691,000)      
Debt discount for conversion option 212,000,000 212,000,000      
Issuance costs (5,253,000) (5,253,000)      
Net carrying amount (equity) 206,747,000 206,747,000      
0.25% Convertible Senior Notes Due 2023          
Debt Instrument [Line Items]          
Principal 344,998,000 345,000,000     $ 345,000,000
Unamortized debt discount (36,029,000) (42,280,000)      
Unamortized issuance costs (4,284,000) (5,028,000)      
Debt discount for conversion option 64,192,000 64,193,000      
Issuance costs (1,749,000) (1,749,000)      
Net carrying amount (equity) 62,443,000 62,444,000      
Carrying Amount | Fair Value, Measurements, Nonrecurring          
Debt Instrument [Line Items]          
Net carrying amount (liability) 926,193,000 900,303,000      
Carrying Amount | Fair Value, Measurements, Nonrecurring | 0.125% Convertible Senior Notes Due 2025          
Debt Instrument [Line Items]          
Net carrying amount (liability) 621,508,000 602,611,000      
Carrying Amount | Fair Value, Measurements, Nonrecurring | 0.25% Convertible Senior Notes Due 2023          
Debt Instrument [Line Items]          
Net carrying amount (liability) $ 304,685,000 $ 297,692,000      
v3.20.2
Convertible Senior Notes - Interest Expense Recognized (Details) - Senior Notes - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
0.125% Convertible Senior Notes Due 2025        
Debt Instrument [Line Items]        
Contractual interest expense $ 249 $ 251 $ 498 $ 265
Amortization of debt discount 8,842 8,914 17,683 9,424
Amortization of issuance costs 607 613 1,215 648
Total interest expense 9,698 9,778 19,396 10,337
0.25% Convertible Senior Notes Due 2023        
Debt Instrument [Line Items]        
Contractual interest expense 215 215 430 428
Amortization of debt discount 3,126 3,125 6,251 6,216
Amortization of issuance costs 371 368 743 737
Total interest expense $ 3,712 $ 3,708 $ 7,424 $ 7,381
v3.20.2
Commitments and Contingencies (Details) - Pending Litigation
$ in Thousands
Jul. 01, 2020
numberOfPlaintiffs
May 12, 2020
USD ($)
numberOfPlaintiffs
Mar. 03, 2020
USD ($)
Ingram Hosting Holdings LLC vs. Chegg      
Loss Contingencies [Line Items]      
Loss contingency, damages sought, value | $     $ 17,000
2018 Data Incident, Arbitration Demands      
Loss Contingencies [Line Items]      
Loss contingency, damages sought, value | $   $ 25  
Loss contingency, number of plaintiffs | numberOfPlaintiffs   15,107  
2018 Data Incident, Arbitration Demands | Subsequent Event      
Loss Contingencies [Line Items]      
Loss contingency, number of plaintiffs | numberOfPlaintiffs 1,007    
v3.20.2
Stockholders' Equity - Share-based Compensation Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense $ 19,546 $ 15,452 $ 37,880 $ 30,490
Cost of revenues        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense 213 74 382 199
Research and development        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense 7,620 5,218 14,611 10,135
Sales and marketing        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense 2,436 1,754 4,622 3,562
General and administrative        
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]        
Share-based compensation expense $ 9,277 $ 8,406 $ 18,265 $ 16,594
v3.20.2
Stockholders' Equity - Summary of Restricted Stock Unit Activity (Details) - RSUs and PSUs
 6 Months Ended
Jun. 30, 2020
$ / shares
shares
Shares Outstanding  
Number of RSUs and PSUs Outstanding, Beginning (shares) | shares 6,909,530
Number of RSUs and PSUs, Granted (shares) | shares 2,298,799
Number of RSUs and PSUs, Released (shares) | shares (3,197,978)
Number of RSUs and PSUs, Canceled (shares) | shares (351,049)
Number of RSUs and PSUs Outstanding, Ending (shares) | shares 5,659,302
Weighted Average Grant Date Fair Value  
Weighted Average Grant Date Fair Value, Beginning balance (in dollars per share) | $ / shares $ 24.04
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | $ / shares 41.67
Weighted Average Grant Date Fair Value, Released (in dollars per share) | $ / shares 17.99
Weighted Average Grant Date Fair Value, Canceled (in dollars per share) | $ / shares 30.00
Weighted Average Grant Date Fair Value, Ending balance (in dollars per share) | $ / shares $ 34.24
v3.20.2
Stockholders' Equity - Additional Information (Details)
 6 Months Ended
Jun. 30, 2020
USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Stock Repurchase Program, Authorized Amount $ 500,000,000.0
RSUs and PSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation costs related to restricted stock units $ 130,700,000
Weighted average vesting period for recognition of compensation expense 2 years 2 months 12 days
v3.20.2
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Income Tax Disclosure [Abstract]        
Provision for income taxes $ 1,287 $ 583 $ 1,809 $ 1,209
v3.20.2
Related-Party Transactions (Details)
 3 Months Ended 6 Months Ended
Jun. 30, 2020
USD ($)
Jun. 30, 2019
USD ($)
Jun. 30, 2020
USD ($)
board_member
Jun. 30, 2019
USD ($)
Dec. 31, 2019
USD ($)
Adobe Systems | Chief Executive Officer          
Related Party Transaction [Line Items]          
Purchases from related party $ 400,000 $ 400,000 $ 800,000 $ 1,400,000  
Revenue from related parties 100,000 0 100,000 0  
Due to related parties         $ 200,000
Receivables from related party 100,000   100,000   $ 0
PayPal | Board Of Directors Member          
Related Party Transaction [Line Items]          
Expenses from transactions with related party 500,000 400,000 1,000,000.0 800,000  
Synack, Inc. | Board Of Directors Member          
Related Party Transaction [Line Items]          
Purchases from related party $ 0 $ 0 $ 100,000 $ 300,000  
Number of board members appointed to board of directors of related party | board_member     1    
v3.20.2
Label Element Value
Restricted Cash and Cash Equivalents, Current us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue $ 308,000
Restricted Cash and Cash Equivalents, Current us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue 121,000
Restricted Cash and Cash Equivalents, Noncurrent us-gaap_RestrictedCashAndCashEquivalentsNoncurrent 1,066,000
Restricted Cash and Cash Equivalents, Noncurrent us-gaap_RestrictedCashAndCashEquivalentsNoncurrent $ 1,718,000