ZENDESK, INC., 10-Q filed on 7/29/2022
Quarterly Report
v3.22.2
Cover Page - shares
 6 Months Ended
Jun. 30, 2022
Jul. 28, 2022
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2022  
Document Transition Report false  
Entity File Number 001-36456  
Entity Registrant Name ZENDESK, INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 26-4411091  
Entity Address, Address Line One 989 Market Street  
Entity Address, City or Town San Francisco  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 94103  
City Area Code 415  
Local Phone Number 418-7506  
Title of 12(b) Security Common Stock, par value $0.01 per share  
Trading Symbol ZEN  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Smaller Reporting Company false  
Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   123,434,222
Amendment Flag false  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q2  
Entity Central Index Key 0001463172  
Current Fiscal Year End Date --12-31  
v3.22.2
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 567,980 $ 476,103
Marketable securities 590,263 539,780
Accounts receivable, net of allowance for credit losses of $5,742 and $6,190 as of June 30, 2022 and December 31, 2021, respectively 258,127 273,898
Deferred costs 82,497 72,042
Prepaid expenses and other current assets 71,514 56,809
Total current assets 1,570,381 1,418,632
Marketable securities, noncurrent 473,949 559,652
Property and equipment, net 90,955 97,815
Deferred costs, noncurrent 78,266 72,553
Lease right-of-use assets 48,259 69,936
Goodwill and intangible assets, net 193,610 197,098
Other assets 36,689 35,593
Total assets 2,492,109 2,451,279
Current liabilities:    
Accounts payable 70,682 49,213
Accrued liabilities 56,562 50,075
Accrued compensation and related benefits 105,297 138,127
Deferred revenue 563,873 512,933
Lease liabilities 21,977 21,253
Current portion of convertible senior notes, net 148,687 139,738
Total current liabilities 967,078 911,339
Convertible senior notes, net 1,137,424 979,350
Deferred revenue, noncurrent 6,326 4,277
Lease liabilities, noncurrent 51,727 63,212
Other liabilities 2,733 3,883
Total liabilities 2,165,288 1,962,061
Commitments and contingencies (Note 9)
Stockholders’ equity:    
Preferred stock 0 0
Common stock 1,232 1,215
Additional paid-in capital 1,568,922 1,637,157
Accumulated other comprehensive loss (22,176) (8,911)
Accumulated deficit (1,221,157) (1,140,243)
Total stockholders’ equity 326,821 489,218
Total liabilities and stockholders’ equity $ 2,492,109 $ 2,451,279
v3.22.2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 5,742 $ 6,190
v3.22.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Income Statement [Abstract]        
Revenue $ 407,208 $ 318,216 $ 795,535 $ 616,264
Cost of revenue [1] 82,790 66,743 158,468 127,637
Gross profit 324,418 251,473 637,067 488,627
Operating expenses:        
Research and development [1] 110,539 82,826 218,616 156,609
Sales and marketing [1] 209,160 165,250 410,820 322,768
General and administrative [1] 97,210 45,818 160,748 88,951
Total operating expenses [1] 416,909 293,894 790,184 568,328
Operating loss (92,491) (42,421) (153,117) (79,701)
Other income (expense), net:        
Interest expense (3,121) (14,591) (6,242) (29,006)
Interest and other income (expense), net 2,094 960 2,932 6,044
Total other income (expense), net (1,027) (13,631) (3,310) (22,962)
Loss before provision for income taxes (93,518) (56,052) (156,427) (102,663)
Provision for income taxes 1,564 2,355 5,601 4,709
Net loss $ (95,082) $ (58,407) $ (162,028) $ (107,372)
Net loss per share, basic (in usd per share) $ (0.77) $ (0.49) $ (1.32) $ (0.91)
Net loss per share, diluted (in usd per share) $ (0.77) $ (0.49) $ (1.32) $ (0.91)
Weighted-average shares used to compute net loss per share, basic (in shares) 122,841 119,050 122,404 118,484
Weighted-average shares used to compute net loss per share, diluted (in shares) 122,841 119,050 122,404 118,484
[1] Includes share-based compensation expense as follows:
 
 Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
Cost of revenue$6,982 $5,218 $13,159 $9,704 
Research and development20,482 17,024 39,769 32,697 
Sales and marketing31,120 24,501 57,920 47,733 
General and administrative14,775 9,951 26,449 18,934 
v3.22.2
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Share-based compensation     $ 137,297 $ 109,068
Cost of revenue        
Share-based compensation $ 6,982 $ 5,218 13,159 9,704
Research and development        
Share-based compensation 20,482 17,024 39,769 32,697
Sales and marketing        
Share-based compensation 31,120 24,501 57,920 47,733
General and administrative        
Share-based compensation $ 14,775 $ 9,951 $ 26,449 $ 18,934
v3.22.2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Statement of Comprehensive Income [Abstract]        
Net loss $ (95,082) $ (58,407) $ (162,028) $ (107,372)
Other comprehensive loss:        
Net unrealized loss on available-for-sale investments (5,140) (826) (17,045) (2,801)
Net unrealized (loss) gain on derivative instruments (3,499) (61) 3,828 (5,618)
Other comprehensive loss (8,639) (887) (13,217) (8,419)
Comprehensive loss $ (103,721) $ (59,294) $ (175,245) $ (115,791)
v3.22.2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
shares in Thousands, $ in Thousands
Total
Cumulative effect, period of adoption, adjustment
Common Stock
Additional Paid-In Capital
Additional Paid-In Capital
Cumulative effect, period of adoption, adjustment
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Accumulated Deficit
Cumulative effect, period of adoption, adjustment
Balances at beginning of period (in shares) at Dec. 31, 2020     117,489          
Balances at beginning of period at Dec. 31, 2020 $ 431,831   $ 1,174 $ 1,344,337   $ 3,203 $ (916,883)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock upon exercise of stock options (in shares)     608          
Issuance of common stock upon exercise of stock options 15,135   $ 6 15,129        
Issuance of common stock for settlement of RSUs and PRSUs (in shares)     1,312          
Issuance of common stock for settlement of RSUs and PRSUs (6,303)   $ 13 (6,316)        
Issuance of common stock in connection with employee stock purchase plan (in shares)     380          
Issuance of common stock in connection with employee stock purchase plan 27,655   $ 4 27,651        
Share-based compensation 111,316     111,316        
Other comprehensive loss (8,419)         (8,419)    
Net loss (107,372)           (107,372)  
Other 284           284  
Balances at end of period (in shares) at Jun. 30, 2021     119,789          
Balances at end of period at Jun. 30, 2021 464,127   $ 1,197 1,492,117   (5,216) (1,023,971)  
Balances at beginning of period (in shares) at Dec. 31, 2020     117,489          
Balances at beginning of period at Dec. 31, 2020 $ 431,831   $ 1,174 1,344,337   3,203 (916,883)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Accounting standards update Accounting Standards Update 2020-06              
Balances at end of period (in shares) at Dec. 31, 2021     121,598          
Balances at end of period at Dec. 31, 2021 $ 489,218 $ (164,576) $ 1,215 1,637,157 $ (245,690) (8,911) (1,140,243) $ 81,114
Balances at beginning of period (in shares) at Mar. 31, 2021     118,358          
Balances at beginning of period at Mar. 31, 2021 430,243   $ 1,183 1,399,014   (4,329) (965,625)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock upon exercise of stock options (in shares)     400          
Issuance of common stock upon exercise of stock options 11,204   $ 4 11,200        
Issuance of common stock for settlement of RSUs and PRSUs (in shares)     651          
Issuance of common stock for settlement of RSUs and PRSUs (3,504)   $ 6 (3,510)        
Issuance of common stock in connection with employee stock purchase plan (in shares)     380          
Issuance of common stock in connection with employee stock purchase plan 27,655   $ 4 27,651        
Share-based compensation 57,762     57,762        
Other comprehensive loss (887)         (887)    
Net loss (58,407)           (58,407)  
Other 61           61  
Balances at end of period (in shares) at Jun. 30, 2021     119,789          
Balances at end of period at Jun. 30, 2021 464,127   $ 1,197 1,492,117   (5,216) (1,023,971)  
Balances at beginning of period (in shares) at Dec. 31, 2021     121,598          
Balances at beginning of period at Dec. 31, 2021 $ 489,218 $ (164,576) $ 1,215 1,637,157 $ (245,690) (8,911) (1,140,243) $ 81,114
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock upon exercise of stock options (in shares) 378   378          
Issuance of common stock upon exercise of stock options $ 12,232   $ 4 12,228        
Issuance of common stock for settlement of RSUs and PRSUs (in shares)     958          
Issuance of common stock for settlement of RSUs and PRSUs (3,956)   $ 10 (3,966)        
Issuance of common stock in connection with employee stock purchase plan (in shares)     344          
Issuance of common stock in connection with employee stock purchase plan 29,837   $ 3 29,834        
Share-based compensation 139,359     139,359        
Other comprehensive loss (13,217)         (13,217)    
Net loss (162,028)           (162,028)  
Other (48)         (48)    
Balances at end of period (in shares) at Jun. 30, 2022     123,278          
Balances at end of period at Jun. 30, 2022 326,821   $ 1,232 1,568,922   (22,176) (1,221,157)  
Balances at beginning of period (in shares) at Mar. 31, 2022     122,369          
Balances at beginning of period at Mar. 31, 2022 327,100   $ 1,223 1,465,489   (13,537) (1,126,075)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Issuance of common stock upon exercise of stock options (in shares)     43          
Issuance of common stock upon exercise of stock options 1,416   $ 1 1,415        
Issuance of common stock for settlement of RSUs and PRSUs (in shares)     522          
Issuance of common stock for settlement of RSUs and PRSUs (2,261)   $ 6 (2,267)        
Issuance of common stock in connection with employee stock purchase plan (in shares)     344          
Issuance of common stock in connection with employee stock purchase plan 29,837   $ 3 29,834        
Share-based compensation 74,451     74,451        
Other comprehensive loss (8,639)         (8,639)    
Net loss (95,082)           (95,082)  
Balances at end of period (in shares) at Jun. 30, 2022     123,278          
Balances at end of period at Jun. 30, 2022 $ 326,821   $ 1,232 $ 1,568,922   $ (22,176) $ (1,221,157)  
v3.22.2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Cash flows from operating activities    
Net loss $ (162,028) $ (107,372)
Adjustments to reconcile net loss to net cash provided by operating activities    
Depreciation and amortization 19,657 18,623
Share-based compensation 137,297 109,068
Amortization of deferred costs 42,044 30,942
Amortization of debt discount and issuance costs 2,446 25,219
Real estate impairments 24,908 0
Allowance for credit losses on accounts receivable 3,977 4,495
Other, net 4,565 123
Changes in operating assets and liabilities:    
Accounts receivable 8,680 (11,498)
Prepaid expenses and other current assets (8,998) (1,739)
Deferred costs (56,963) (53,251)
Lease right-of-use assets 8,588 8,818
Other assets and liabilities (979) (1,850)
Accounts payable 22,156 5,377
Accrued liabilities 1,327 (2,561)
Accrued compensation and related benefits (28,905) (5,961)
Deferred revenue 52,183 59,139
Lease liabilities (9,718) (17,099)
Net cash provided by operating activities 60,237 60,473
Cash flows from investing activities    
Purchases of property and equipment (12,850) (5,957)
Internal-use software development costs (5,896) (7,538)
Purchases of marketable securities (364,788) (504,850)
Proceeds from maturities of marketable securities 265,659 380,608
Proceeds from sales of marketable securities 114,610 57,061
Purchases of strategic investments (1,000) 0
Net cash used in investing activities (4,265) (80,676)
Cash flows from financing activities    
Proceeds from exercises of employee stock options 12,231 15,135
Proceeds from employee stock purchase plan 28,035 26,778
Taxes paid related to net share settlement of share-based awards (3,957) (6,302)
Net cash provided by financing activities 36,309 35,611
Effect of exchange rate changes on cash, cash equivalents and restricted cash 63 (19)
Net increase in cash, cash equivalents and restricted cash 92,344 15,389
Cash, cash equivalents and restricted cash at beginning of period 477,350 407,859
Cash, cash equivalents and restricted cash at end of period 569,694 423,248
Reconciliation of cash, cash equivalents and restricted cash to condensed consolidated balance sheets    
Cash and cash equivalents 567,980 422,810
Restricted cash included in prepaid expenses and other current assets 1,714 433
Restricted cash included in other assets 0 5
Total cash, cash equivalents and restricted cash 569,694 423,248
Supplemental cash flow data    
Cash paid for interest 3,780 3,780
Cash paid for taxes 6,125 5,496
Non-cash investing and financing activities    
Balance of property and equipment in accounts payable and accrued expenses 3,098 1,315
Property and equipment acquired through tenant improvement allowances 1,208 0
Internal-use software development costs    
Non-cash investing and financing activities    
Share-based compensation capitalized in internal-use software development costs and in deferred costs 815 916
Deferred costs    
Non-cash investing and financing activities    
Share-based compensation capitalized in internal-use software development costs and in deferred costs $ 1,247 $ 1,329
v3.22.2
Overview and Basis of Presentation
 6 Months Ended
Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Overview and Basis of Presentation Overview and Basis of Presentation
Company and Background
Zendesk was founded in Denmark in 2007 and reincorporated in Delaware in April 2009.
Founded in 2007, Zendesk is a service-first customer relationship management company, built to give organizations of all sizes, in every industry, the ability to deliver a transparent, responsive and empowering customer experience. With solutions designed to address an increasingly broad set of customer interactions, Zendesk allows organizations to deliver omnichannel customer service and customize and build apps across the customer journey. Zendesk has evolved its offerings over time to product and platform solutions that work together to help organizations understand the broader customer journey, improve communications across all channels and engage where and when it’s needed most.
References to Zendesk, the “Company,” “our,” or “we” refer to Zendesk, Inc. and its subsidiaries on a consolidated basis.
Proposed Merger
On June 24, 2022, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) to be acquired by an investor group led by Permira Advisers LLC (“Permira”) and Hellman & Friedman Advisors LLC (“H&F”) in an all-cash transaction valued at approximately $10.2 billion. Under the terms of the Merger Agreement, our stockholders will receive $77.50 per share. The transaction is expected to close in the fourth quarter of 2022, and is subject to customary closing conditions, including approval by our stockholders. Upon closing of the transaction, Zendesk will operate as a privately-held company.

See Note 15 of the Notes to our Condensed Consolidated Financial Statements for further details.
Basis of Presentation
These unaudited condensed consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles, or GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K, for the year ended December 31, 2021, filed with the SEC on February 15, 2022. There have been no changes to our significant accounting policies described in the Annual Report on Form 10-K that have had a material impact on our condensed consolidated financial statements and related notes, except for the methodology to value market-based stock awards described in Note 10 of the Notes to our Condensed Consolidated Financial Statements and the accounting for convertible debt instruments described below.
The consolidated balance sheet as of December 31, 2021 included herein was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly our financial position, results of operations, comprehensive loss, stockholders’ equity, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2022.
Use of Estimates
The preparation of our consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported periods.
Significant items subject to such estimates and assumptions include:
•the estimate of variable consideration related to revenue recognition;
•the estimate of credit losses for accounts receivable and marketable securities;
•the fair value and useful lives of acquired intangible assets;
•the capitalization and useful life of capitalized costs to obtain customer contracts;
•the valuation of strategic investments;
•the fair value and useful lives of property and equipment;
•the capitalization and useful lives of internal-use software;
•the lease term and incremental borrowing rate for lease liabilities;
•the fair value of our convertible senior notes;
•the fair value of asset retirement obligations;
•the fair value and expense recognition for certain share-based awards;
•the preparation of financial forecasts used in currency hedging;
•the recognition and measurement of legal contingencies; and
•the recognition of tax benefits and forecasts used to determine our effective tax rate.

As of the date of issuance of the financial statements, we are not aware of any material specific events or circumstances that would require us to update our estimates, judgments, or to revise the carrying values of our assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to our financial statements.
Concentrations of Risk
As of June 30, 2022 and December 31, 2021, no customers represented 10% or greater of our total accounts receivable balance. There were no customers that individually exceeded 10% of our revenue during the three and six months ended June 30, 2022 and 2021.
Recently Adopted Accounting Pronouncements
In August 2020, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2020-06 (“ASU 2020-06”), regarding Accounting Standards Codification, or ASC, Topic 470 “Debt” and ASC Topic 815 “Derivatives and Hedging,” which reduces the number of accounting models for convertible instruments, including amending the calculation of diluted earnings per share and the balance sheet presentation of those instruments, as well as the resulting recognition of interest expense, among other changes. We adopted this standard as of January 1, 2022 using the modified retrospective method.
Adoption under the modified retrospective method impacted the 2023 Notes and 2025 Notes (as each is defined below) outstanding as of January 1, 2022, and resulted in the re-combination of the liability and equity components of each instrument into a single liability instrument measured at amortized cost. As a result, at transition the Company recorded a $246 million decrease to additional paid-in-capital, net of income tax effects, to remove the equity component separately recorded for the conversion features associated with the Notes (as defined below), a $165 million increase to the total carrying value of the Notes, to reflect the full principal amount of the Notes outstanding net of issuance costs, and a $81 million cumulative effect decrease to the beginning balance of accumulated deficit, net of income tax effects. Interest expense recognized in future periods will be reduced as a result of accounting for each instrument as a single liability measured at amortized cost. In addition, ASU 2020-06 also requires the use of the if-converted method in calculating diluted earnings per share for convertible instruments. Since the Company had a net loss for the three and six months ended June 30, 2022, the convertible senior notes were determined to be anti-dilutive and therefore had no impact to basic or diluted net loss per share for the periods as a result of adopting ASU 2020-06.
v3.22.2
Business Combinations
 6 Months Ended
Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]  
Business Combinations Business CombinationsCleverly, Lda.In the third quarter of 2021, we completed the acquisition of Cleverly, Lda., or Cleverly, resulting in increases of $7 million and $1 million to goodwill and developed technology, respectively.From the date of the acquisition, the financial results of Cleverly have been included in and are immaterial to our condensed consolidated financial statements. Pro forma revenue and results of operations have not been presented because the historical results are not material to our condensed consolidated financial statements in any period presented.
v3.22.2
Financial Instruments
 6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
Financial Instruments Financial Instruments
Investments
The following tables present information about our financial assets measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):
Fair Value Measurement at
June 30, 2022
Level 1Level 2Total
Description   
U.S. Treasury securities$— $473,780 $473,780 
Corporate bonds— 407,259 407,259 
Money market funds296,670 — 296,670 
Asset-backed securities— 92,019 92,019 
Agency securities— 52,012 52,012 
Commercial paper— 49,286 49,286 
Certificates of deposit and time deposits— 10,841 10,841 
Total$296,670 $1,085,197 $1,381,867 
Included in cash and cash equivalents  $317,655 
Included in marketable securities  $1,064,212 
 Fair Value Measurement at
December 31, 2021
Level 1Level 2Total
Description   
U.S. Treasury securities$— $480,726 $480,726 
Corporate bonds— 430,018 430,018 
Money market funds234,123 — 234,123 
Asset-backed securities— 93,620 93,620 
Agency securities— 50,057 50,057 
Commercial paper— 48,950 48,950 
Certificates of deposit and time deposits— 1,488 1,488 
Total$234,123 $1,104,859 $1,338,982 
Included in cash and cash equivalents  $239,550 
Included in marketable securities  $1,099,432 
 
As of June 30, 2022 and December 31, 2021, there were no securities within Level 3 of the fair value hierarchy. There were no transfers between fair value measurement levels during the three and six months ended June 30, 2022 or 2021.
As of June 30, 2022, gross unrealized gains and gross unrealized losses for marketable securities were not material and $19 million, respectively. The aggregate amortized cost basis for cash equivalents and marketable securities was $1,401 million and excludes accrued interest of $3 million. The aggregate fair value of securities with unrealized losses was $989 million.
As of December 31, 2021, gross unrealized gains and gross unrealized losses for marketable securities were $1 million and $3 million, respectively. The aggregate amortized cost basis for cash equivalents and marketable securities was $1,341 million and excludes accrued interest of $3 million. The aggregate fair value of securities with unrealized losses was $795 million.
Unrealized losses for securities that have been in an unrealized loss position for more than 12 months as of June 30, 2022 and December 31, 2021 were $1 million and not material, respectively. We have not recorded an allowance for credit losses, as we believe any such losses would be immaterial based on the high-grade credit rating for each of our marketable securities as of the end of each period. We intend to hold our marketable securities to maturity and it is unlikely that they would be sold before their cost bases are recovered.
The following table classifies our marketable securities by contractual maturity (in thousands):
 
 June 30,
2022		December 31,
2021
Due in one year or less$590,263 $539,780 
Due after one year and within five years473,949 559,652 
Total$1,064,212 $1,099,432 
 
As of June 30, 2022 and December 31, 2021, the balance of strategic investments without readily determinable fair values was $17 million and $16 million, respectively. There have been no adjustments to the carrying values of strategic investments resulting from impairments or observable price changes.
For our other financial instruments, including accounts receivable, accounts payable, and other current liabilities, the carrying amounts approximate their fair values due to the relatively short maturity of these balances.
Derivative Instruments and Hedging
Our foreign currency exposures typically arise from expenditures associated with foreign operations and sales in foreign currencies of our products. To mitigate the effect of foreign currency fluctuations on our future cash flows and earnings, we enter into foreign currency forward contracts with certain financial institutions and designate those contracts as cash flow hedges. Our foreign currency forward contracts generally have maturities of 15 months or less.
We include time value related to our cash flow hedges for effectiveness testing purposes and the entire change in the unrecognized value of our hedge contracts is recorded in accumulated other comprehensive income (loss), or AOCI. As of June 30, 2022, the balance of AOCI included an unrecognized net gain of $1 million related to the changes in the fair value of foreign currency forward contracts designated as cash flow hedges. We expect to reclassify a net loss of $1 million into earnings over the next 12 months associated with our cash flow hedges.
The following tables present information about our derivative instruments on our consolidated balance sheets (in thousands):
 
 June 30, 2022
Asset DerivativesLiability Derivatives
Derivative InstrumentBalance Sheet LocationFair Value
(Level 2)		Balance Sheet LocationFair Value
(Level 2)
Foreign currency forward contractsOther current assets$13,110 Accrued liabilities$15,944 
Total$13,110  $15,944 
 December 31, 2021
Asset DerivativesLiability Derivatives
Derivative InstrumentBalance Sheet LocationFair Value
(Level 2)		Balance Sheet LocationFair Value
(Level 2)
Foreign currency forward contractsOther current assets$6,439 Accrued liabilities$9,422 
Total $6,439  $9,422 
 
Our foreign currency forward contracts had a total notional value of $537 million and $488 million as of June 30, 2022 and December 31, 2021, respectively. We have a master netting arrangement with each of our counterparties, which permit net settlement of multiple, separate derivative contracts with a single payment. We do not have collateral requirements with any of our counterparties. GAAP permits companies to present the fair value of derivative instruments on a net basis according to master netting arrangements. We have elected to present our derivative instruments on a gross basis in our consolidated
financial statements. We do not enter into any derivative contracts for trading or speculative purposes. All derivatives have been designated as hedging instruments.
The following table presents information about our foreign currency forward contracts on our consolidated statements of operations for the three and six months ended June 30, 2022 and 2021 (in thousands):
 
Gain (Loss) Reclassified from AOCI into Earnings
Three Months Ended June 30,Six Months Ended June 30,
Classification2022202120222021
Revenue$2,392 $(1,373)$3,186 $(2,081)
Cost of revenue(901)400 (1,406)890 
Research and development(1,272)488 (1,946)1,003 
Sales and marketing(2,384)1,044 (3,620)2,073 
General and administrative(742)290 (1,135)707 
 Total$(2,907)$849 $(4,921)$2,592 
The loss recognized in AOCI related to foreign currency forward contracts was $6 million for the three months ended June 30, 2022. The gain recognized in AOCI related to foreign currency forward contracts was $1 million for the three months ended June 30, 2021. The loss recognized in AOCI related to foreign currency forward contracts was $1 million and $3 million for the six months ended June 30, 2022 and 2021, respectively.

The cash flow effects related to foreign currency forward contracts are included within operating activities on our consolidated statements of cash flows.
Convertible Senior Notes
As of June 30, 2022, the fair values of our 0.25% convertible senior notes due 2023 and our 0.625% convertible senior notes due 2025 were $177 million and $973 million, respectively. We estimate the fair value of our convertible senior notes based on their last traded prices or market observable inputs, resulting in a Level 2 classification in the fair value hierarchy. Based on the closing price of our common stock of $74.07 on the last trading day of the quarter, the if-converted value of the 2025 convertible senior notes did not exceed the principal amount of $1,150 million, and the if-converted value of the 2023 convertible senior notes exceeded the remaining principal amount by $26 million as of June 30, 2022.
v3.22.2
Costs to Obtain Customer Contracts
 6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
Costs to Obtain Customer Contracts Costs to Obtain Customer ContractsThe balance of deferred costs to obtain customer contracts was $161 million and $145 million as of June 30, 2022 and December 31, 2021, respectively. Amortization expense for deferred costs was $22 million and $16 million for the three months ended June 30, 2022 and 2021, respectively, and $42 million and $31 million for the six months ended June 30, 2022 and 2021, respectively. There were no impairment losses related to deferred costs for the periods presented.Deferred Revenue and Performance Obligations
The changes in the balances of deferred revenue are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Balance, beginning of period$526,520 $396,522 $517,210 $383,358 
Billings450,887 364,157 848,524 675,369 
Subscription and services revenue(382,250)(302,014)(746,626)(584,853)
Other revenue*(24,958)(16,202)(48,909)(31,411)
Balance, end of period$570,199 $442,463 $570,199 $442,463 
*Other revenue primarily includes implementation and training services, usage-based revenue, and amounts from contract assets.

For the three months ended June 30, 2022 and June 30, 2021, the majority of revenue recognized was from the deferred revenue balances at the beginning of each period. For the six months ended June 30, 2022 and 2021, approximately half of revenue recognized was from the deferred revenue balances at the beginning of each period. When revenue is recognized in advance of invoicing we record contract assets, which are included in prepaid expenses and other current assets on our consolidated balance sheets. As of June 30, 2022 and December 31, 2021, the balance of contract assets was $3 million and $4 million, respectively.

The aggregate balance of remaining performance obligations as of June 30, 2022 was $1,406 million. We expect to recognize $951 million of the balance as revenue in the next 12 months and the substantial majority of the remainder in the next 13-36 months. The aggregate balance of remaining performance obligations represents contracted revenue that has not yet been recognized, including contracted revenue from renewals, and does not include contract amounts which are cancellable by the customer and amounts associated with optional renewal periods.
v3.22.2
Property and Equipment
 6 Months Ended
Jun. 30, 2022
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment, net consists of the following (in thousands): 
 June 30,
2022		December 31,
2021
Leasehold improvements$61,219 $79,661 
Capitalized internal-use software61,013 58,135 
Computer equipment and licensed software and patents42,447 41,512 
Furniture and fixtures11,595 14,627 
Construction in progress19,458 20,927 
Total195,732 214,862 
Less: accumulated depreciation and amortization(104,777)(117,047)
Property and equipment, net$90,955 $97,815 
 
Depreciation expense was $5 million and $6 million for the three months ended June 30, 2022 and 2021, respectively, and $11 million and $12 million for the six months ended June 30, 2022 and 2021, respectively.
Amortization expense of capitalized internal-use software was $2 million for each of the three months ended June 30, 2022 and 2021 and $4 million for each of the six months ended June 30, 2022 and 2021. The carrying values of capitalized internal-use software as of June 30, 2022 and December 31, 2021 were $42 million and $40 million, respectively, including $19 million and $15 million in construction in progress, respectively. These balances included $9 million and $7 million, respectively, of implementation costs incurred in hosting arrangements that are service contracts, all of which is included in construction in progress.
v3.22.2
Leases
 6 Months Ended
Jun. 30, 2022
Leases [Abstract]  
Leases Leases
The following table presents information about leases on our consolidated balance sheets (in thousands):
June 30, 2022December 31, 2021
Assets
Lease right-of-use assets$48,259 $69,936 
Liabilities
Lease liabilities21,977 21,253 
Lease liabilities, noncurrent51,727 63,212 

As of June 30, 2022, the weighted average remaining lease term was 5.5 years and the weighted average discount rate was 4.9%.
The following table presents information about leases on our consolidated statements of operations (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Operating lease expense$4,842 $5,506 $10,423 $11,128 
Short-term lease expense83 128 203 256 
Variable lease expense1,079 1,244 2,511 2,462 
Sublease income(634)(434)(995)(874)

The following table presents supplemental cash flow information about our leases (in thousands):
Six Months Ended June 30,
20222021
Cash paid for amounts included in the measurement of lease liabilities$11,240 $13,903 
Operating lease assets obtained in exchange for new lease liabilities2,754 1,397 
In April 2022, our board of directors approved a plan to cease use or sublease certain leased premises across our real estate portfolio. As a result, we recorded an aggregate impairment charge of $25 million, which is the amount that the carrying value of the asset groups exceeded their estimated fair values. The asset groups primarily include lease right-of-use assets and leasehold improvements. The estimated fair values were based on the present value of the estimated cash flows that could be generated from subleasing each property for the remaining lease term, if applicable. The impairment charge was recorded in general and administrative expenses on our consolidated statement of operations. Further, in July 2022, our board of directors approved a plan to cease use of additional leased premises for which we expect to record an impairment charge in the third quarter of 2022 of approximately $3 million.
v3.22.2
Goodwill and Acquired Intangible Assets
 6 Months Ended
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Acquired Intangible Assets Goodwill and Acquired Intangible Assets
Acquired intangible assets subject to amortization consist of the following (in thousands):
 
 As of June 30, 2022
CostAccumulated
Amortization		NetWeighted Average Remaining Useful Life
   (In years)
Developed technology$28,000 $(16,089)$11,911 2.5
Customer relationships14,300 (9,517)4,783 3.0
 $42,300 $(25,606)$16,694  
 
 As of December 31, 2021
CostAccumulated
Amortization		NetWeighted Average Remaining Useful Life
   (In years)
Developed technology$28,000 $(13,734)$14,266 3.0
Customer relationships14,300 (8,233)6,067 3.2
 $42,300 $(21,967)$20,333  
 
Amortization expense of acquired intangible assets was $2 million for each of the three months ended June 30, 2022 and 2021, and $4 million for each of the six months ended June 30, 2022 and 2021.
Estimated future amortization expense as of June 30, 2022 is as follows (in thousands):
Remainder of 2022$3,658 
20236,579 
20244,837 
2025972 
2026488 
Thereafter160 
$16,694 
 
As of June 30, 2022 and December 31, 2021, the carrying amount of goodwill was $177 million. There was no material change to the carrying amount of goodwill for the six months ended June 30, 2022.
v3.22.2
Convertible Senior Notes
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Convertible Senior Notes Convertible Senior Notes
2025 Convertible Senior Notes

In June 2020, we issued $1,150 million aggregate principal amount of 0.625% convertible senior notes due June 15, 2025 in a private offering (the “2025 Notes”). The 2025 Notes are senior unsecured obligations and bear interest at a fixed rate of 0.625% per annum, payable semi-annually in arrears on June 15 and December 15 of each year, commencing on December 15, 2020. The total net proceeds from the offering, after deducting initial purchase discounts and estimated debt issuance costs, were approximately $1,129 million.

Each $1,000 principal amount of the 2025 Notes will initially be convertible into 9.1944 shares of our common stock, which is equivalent to an initial conversion price of approximately $108.76 per share, subject to adjustment upon the occurrence of specified events.

The 2025 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding March 15, 2025, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2020 (and only during such calendar quarter), 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 conversion price on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period in which, for each trading day of that period, the trading price per $1,000 principal amount of 2025 Notes for such trading day 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; (3) if we call any or all of the 2025 Notes for redemption, at any time prior to the close of business on the second business day immediately prior to the redemption date as discussed further below, but only with respect to the 2025 Notes called (or deemed called) for redemption; or (4) upon the occurrence of specified corporate events (as set forth in the indenture).

On or after March 15, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their 2025 Notes, in minimum denominations of $1,000 or an integral multiple in excess thereof, at the option of the holders regardless of the foregoing circumstances. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election.

If certain specified fundamental changes occur (as set forth in the indenture) prior to the maturity date, holders of the 2025 Notes may require us to repurchase for cash all or any portion of their notes at a repurchase price equal to 100% of the principal amount of the 2025 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if specific corporate events occur prior to the applicable maturity date or if we deliver a notice of redemption, we will increase the conversion rate for a holder who elects to convert their notes in connection with such a corporate event or converts its notes called (or deemed called) for redemption in connection with such notice of redemption in certain circumstances.

During the three months ended June 30, 2022, the conditions allowing holders of the 2025 Notes to convert were not met. As the criteria for conversion were not met, the 2025 Notes are classified as a long-term liability as of June 30, 2022.

We may not redeem the 2025 Notes prior to June 20, 2023. We may redeem for cash all or any portion of the 2025 Notes, at our option, on or after June 20, 2023 and on or prior to the 41st scheduled trading day immediately preceding the maturity date, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption, at a redemption price equal to 100% of the principal amount of the 2025 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the 2025 Notes.

As described in Note 1, we adopted ASU 2020-06 effective January 1, 2022 on a modified retrospective basis, under which prior-period information was not retrospectively adjusted.

Prior to the adoption of ASU 2020-06, in accounting for the transaction, the 2025 Notes were separated into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated convertible feature. The fair value of the liability component was estimated by calculating the present value of expected cash flows using an interest rate that reflects our incremental borrowing rate, with an estimated adjustment for our credit standing on nonconvertible debt with similar maturity. The carrying amount of the equity component representing the conversion option was $220 million and was determined by deducting the fair value of the liability component from the par value of the 2025 Notes. The equity component was recorded in additional paid-in capital upon issuance. The excess of the principal amount of the liability component over its carrying amount was amortized to interest expense over the contractual term of the 2025 Notes at an effective interest rate of 5.00%.

Additionally, in accounting for the debt issuance costs of $21 million related to the 2025 Notes, we allocated the total amount incurred to the liability and equity components of the 2025 Notes based on their relative values. Issuance costs attributable to the liability component were $17 million and were amortized to interest expense using the effective interest method over the contractual term of the 2025 Notes. Issuance costs attributable to the equity component were netted with the equity component in additional paid-in capital.

Upon adoption of ASU 2020-06 on January 1, 2022, we recombined the liability and equity components of the 2025 Notes, assuming that the instrument was accounted for as a single liability from inception to the date of adoption. We similarly recombined the liability and equity components of the issuance costs. The issuance costs are amortized to interest expense using the effective interest method over the contractual term of the 2025 Notes at an effective interest rate of 1.00%.
The net carrying amount of the liability component of the 2025 Notes is as follows (in thousands):
June 30,
2022		December 31,
2021
Principal$1,150,000 $1,150,000 
Unamortized debt discount— (157,983)
Unamortized issuance costs(12,576)(12,667)
Net carrying amount$1,137,424 $979,350 


The net carrying amount of the equity component of the 2025 Notes is as follows (in thousands):
June 30,
2022		December 31,
2021
Debt discount for conversion option$— $220,061 
Issuance costs— (4,035)
Net carrying amount$— $216,026 

The interest expense related to the 2025 Notes is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Contractual interest expense$1,797 $1,797 $3,594 $3,594 
Amortization of debt discount— 10,155 — 20,184 
Amortization of issuance costs1,046 715 2,089 1,412 
Total interest expense$2,843 $12,667 $5,683 $25,190 

Prior to the adoption of ASU 2020-06, the difference between the book and tax treatment of the debt discount and debt issuance costs of the 2025 Notes resulted in a difference between the carrying amount and tax basis of the 2025 Notes. This taxable temporary difference resulted in the recognition of a $51 million net deferred tax liability which was recorded as an adjustment to additional paid-in capital. The creation of the deferred tax liability represented a source of future taxable income which supported the realization of deferred tax assets. As we continued to maintain a full valuation allowance against these deferred tax assets, this additional source of income resulted in the release of a portion of the valuation allowance. Consistent with the adoption of ASU 2019-12 in the second quarter of 2020, the release of the valuation allowance of $51 million was recorded as an adjustment to additional paid-in capital. As of January 1, 2022, the unamortized balance of this net deferred tax liability was $36 million, which was derecognized upon adoption of ASU 2020-06. Both the reduction to the net deferred tax liability and the offsetting increase to our valuation allowance were recorded to additional paid-in capital.

2025 Capped Calls

In connection with the pricing of the 2025 Notes, we entered into privately negotiated capped call transactions with certain counterparties (the “2025 Capped Calls”). The 2025 Capped Calls each have an initial strike price of approximately $108.76 per share, subject to certain adjustments, which correspond to the initial conversion price of the 2025 Notes. The 2025 Capped Calls have initial cap prices of $164.17 per share, subject to certain adjustments. The 2025 Capped Calls cover, subject to anti-dilution adjustments, approximately 10.6 million shares of our common stock. Conditions that cause adjustments to the initial strike price of the 2025 Capped Calls are similar to the conditions that result in corresponding adjustments for the 2025 Notes. The 2025 Capped Calls are generally intended to reduce or offset the potential dilution to our common stock upon any conversion of the 2025 Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. For accounting purposes, the 2025 Capped Calls are separate transactions, and not part of the terms of the 2025 Notes. As these transactions meet certain accounting criteria, the 2025 Capped Calls are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of $130 million incurred in connection with the 2025 Capped Calls was recorded as a reduction to additional paid-in capital.

2023 Convertible Senior Notes

In March 2018, we issued $575 million aggregate principal amount of 0.25% convertible senior notes due March 15, 2023 in a private offering (the “2023 Notes”). The 2023 Notes are unsecured obligations and bear interest at a fixed rate of 0.25% per annum, payable semi-annually in arrears on March 15 and September 15 of each year, commencing on September
15, 2018. The total net proceeds from the offering, after deducting initial purchase discounts and estimated debt issuance costs, were approximately $561 million.

In connection with the offering of the 2025 Notes, we used $618 million of the net proceeds from the offering of the 2025 Notes to repurchase $426 million aggregate principal amount of the 2023 Notes in cash through individual privately negotiated transactions, or the “2023 Notes Partial Repurchase.” Pursuant to ASC 470-20, Debt with Conversion and Other Options ("ASC Subtopic 470-20") under existing accounting rules prior to adoption of ASU 2020-06, total consideration for the repurchase was separated into liability and equity components. Of the $618 million consideration, $393 million and $225 million were allocated to the debt and equity components on our consolidated balance sheets, respectively, utilizing an effective interest rate to determine the fair value of the liability component. The fair value of the liability component was estimated by calculating the present value of expected cash flows using an interest rate that reflects our incremental borrowing rate, with an estimated adjustment for our credit standing on nonconvertible debt with similar maturity. As of the repurchase date, the carrying value of the 2023 Notes subject to the 2023 Notes Partial Repurchase, net of unamortized debt discount and issuance costs, was $367 million. The 2023 Notes Partial Repurchase resulted in a $26 million loss on early debt extinguishment. Additionally, $39 million of the total consideration was related to repayment of the debt discount and reflected as a cash outflow from operating activities. As of June 30, 2022, $149 million of principal remains outstanding on the 2023 Notes.

Each $1,000 principal amount of the 2023 Notes will initially be convertible into 15.8554 shares of our common stock (the “Conversion Option”), which is equivalent to an initial conversion price of approximately $63.07 per share, subject to adjustment upon the occurrence of specified events.

The 2023 Notes will be convertible at the option of the holders at any time prior to the close of business on the business day immediately preceding December 15, 2022, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2018 (and only during such calendar quarter), 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 the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any five consecutive trading day period (the “Measurement Period”), in which the trading price 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; or (3) upon the occurrence of specified corporate events (as set forth in the indenture). On or after December 15, 2022 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2023 Notes at any time, regardless of the foregoing circumstances. Upon conversion, we will pay or deliver, as the case may be, cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. If certain specified fundamental changes occur (as set forth in the indenture governing the 2023 Notes) prior to the maturity date, holders of the 2023 Notes may require us to repurchase for cash all or any portion of their notes at a repurchase price equal to 100% of the principal amount of the 2023 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In addition, if specific corporate events occur prior to the applicable maturity date, we will increase the conversion rate for a holder who elects to convert their notes in connection with such a corporate event in certain circumstances. 

During the three months ended June 30, 2022, the conditions allowing holders of the 2023 Notes to convert were not met. To date, we have received one request for conversion for an immaterial amount of 2023 Notes. Prior to the adoption of ASU 2020-06 on January 1, 2022, in accounting for the issuance of the 2023 Notes, the 2023 Notes were separated into liability and equity components. The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument that does not have an associated conversion feature. The carrying amount of the equity component representing the Conversion Option was $125 million and was determined by deducting the fair value of the liability component from the par value of the 2023 Notes. The equity component was recorded in additional paid-in capital. The excess of the principal amount of the liability component over its carrying amount was amortized to interest expense over the contractual term of the 2023 Notes at an effective interest rate of 5.26%. The 2023 Notes are within one year of maturity and are therefore classified as a current liability as of June 30, 2022.

Additionally, in accounting for the debt issuance costs of $14 million related to the 2023 Notes, we allocated the total amount incurred to the liability and equity components of the 2023 Notes based on their relative values. Issuance costs attributable to the equity component were $3 million and were netted with the equity component in additional paid-in capital. Issuance costs attributable to the liability component were amortized to interest expense using the effective interest method over the contractual term of the 2023 Notes.
Upon adoption of ASU 2020-06, we recombined the liability and equity components of the outstanding 2023 Notes, assuming the instrument was accounted for as a single liability from inception to the date of adoption. We similarly recombined the liability and equity components of the issuance costs. The issuance costs are amortized to interest expense using the effective interest method over the contractual term of the 2023 Notes at an effective interest rate of 0.73%.

The net carrying amount of the liability component of the 2023 Notes is as follows (in thousands):
June 30,
2022		December 31,
2021
Principal$149,194 $149,194 
Unamortized debt discount— (8,641)
Unamortized issuance costs(507)(815)
Net carrying amount$148,687 $139,738 

The net carrying amount of the equity component of the 2023 Notes is as follows (in thousands):
June 30,
2022		December 31,
2021
Debt discount for conversion option$— $32,427 
Issuance costs— (765)
Net carrying amount$— $31,662 

The interest expense related to the 2023 Notes is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Contractual interest expense$93 $93 $186 $186 
Amortization of debt discount— 1,677 — 3,333 
Amortization of issuance costs179 147 357 290 
Total interest expense$272 $1,917 $543 $3,809 


2023 Capped Calls

In connection with the pricing of the 2023 Notes, we entered into privately negotiated capped call transactions with certain counterparties (the “2023 Capped Calls”). The 2023 Capped Calls each have an initial strike price of approximately $63.07 per share, subject to certain adjustments, which correspond to the initial conversion price of the 2023 Notes. The 2023 Capped Calls have initial cap prices of $95.20 per share, subject to certain adjustments. The 2023 Capped Calls covered, subject to anti-dilution adjustments, approximately 9.1 million shares of our common stock. Conditions that cause adjustments to the initial strike price of the 2023 Capped Calls mirror conditions that result in corresponding adjustments for the 2023 Notes. The 2023 Capped Calls are generally intended to reduce or offset the potential dilution to our common stock upon any conversion of the 2023 Notes with such reduction or offset, as the case may be, subject to a cap based on the cap price. For accounting purposes, the 2023 Capped Calls are separate transactions, and not part of the terms of the 2023 Notes. As these transactions meet certain accounting criteria, the 2023 Capped Calls are recorded in stockholders’ equity and are not accounted for as derivatives. The cost of $64 million incurred in connection with the 2023 Capped Calls was recorded as a reduction to additional paid-in capital.

In June 2020, and in connection with the 2023 Notes Partial Repurchase, we terminated the 2023 Capped Calls corresponding to approximately 6.7 million shares for cash proceeds of $83 million. The proceeds were recorded as an increase to additional paid-in capital in the consolidated balance sheets. As of June 30, 2022, there remains outstanding 2023 Capped Calls giving the Company the option to purchase approximately 2.4 million shares (subject to adjustment).

The difference between the book and tax treatment of the debt discount, debt issuance costs, and the cost of the capped call on the 2023 Notes resulted in a difference between the carrying amount and tax basis of the 2023 Notes. This taxable temporary difference resulted in the recognition of a $14 million net deferred tax liability which was recorded as an adjustment to additional paid-in capital. The creation of the deferred tax liability represented a source of future taxable income which supported the realization of deferred tax assets. As we continued to maintain a full valuation allowance against these deferred tax assets, this additional source of income resulted in the release of a portion of the valuation allowance and was recorded as a
net income tax benefit. As of January 1, 2022, the unamortized balance of this net deferred tax liability was $2 million, which was derecognized upon adoption of ASU 2020-06. The reduction of the net deferred tax liability was recorded to additional paid-in capital and the offsetting increase to our valuation allowance was recorded to accumulated deficit under the modified retrospective approach.
v3.22.2
Commitments and Contingencies
 6 Months Ended
Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Commitments
Except as discussed below, there were no material changes in our commitments under contractual obligations as disclosed in our audited consolidated financial statements for the year ended December 31, 2021.

In February 2022, we terminated and entered into a new agreement with a cloud services provider for which we have a total obligation of $400 million over a five-year period.
Litigation and Loss Contingencies
We accrue estimates for resolution of legal and other contingencies when losses are probable and estimable. These estimates are reviewed at least quarterly and adjusted to reflect the impacts of negotiations, estimated settlements, legal rulings, advice of legal counsel, and other information and events pertaining to a particular matter.

On October 24, 2019 and November 7, 2019, purported stockholders of the Company filed two putative class action complaints in the United States District Court for the Northern District of California, entitled Charles Reidinger v. Zendesk, Inc., et al., 3:19-cv-06968-CRB and Ho v. Zendesk, Inc., et al., No. 3:19-cv-07361-WHA, respectively, against the Company and certain of the Company’s executive officers. The complaints are nearly identical and allege violations of Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), purportedly on behalf of all persons who purchased Zendesk, Inc. common stock between February 6, 2019 and October 1, 2019, inclusive. The claims are based upon allegations that the defendants misrepresented and/or omitted material information in certain of our prior public filings. To this point, no discovery has occurred in these cases. The court appointed a lead plaintiff and consolidated the various lawsuits into a single action (Case No. 3:19-cv-06968-CRB), and the lead plaintiff filed its amended complaint on April 14, 2020 asserting the same alleged violations of securities laws as the initial complaints. On June 29, 2020, Zendesk and the executive officer defendants moved to dismiss the amended complaint. On November 9, 2020, the court granted Zendesk's motion to dismiss and granted plaintiff leave to amend its complaint. On January 8, 2021, plaintiff filed its second amended complaint and on January 22, 2021, Zendesk and the executive officer defendants moved to dismiss the second amended complaint. On March 2, 2021, the court granted Zendesk's motion to dismiss the second amended complaint. On March 23, 2021, judgment was entered in favor of Zendesk and the executive officer defendants. On April 20, 2021, plaintiff filed a notice of appeal with the United States Court of Appeals for the Ninth Circuit (the "Ninth Circuit"). On July 29, 2021, plaintiff filed its opening brief in the appeal, and on October 13, 2021, the Company and the executive officer defendants filed their answering brief. On March 2, 2022, the Ninth Circuit affirmed dismissal. In May 2022, the deadline to file a writ of certiorari to the United States Supreme Court lapsed.

On June 2, 2020, a purported stockholder of the Company filed a derivative complaint in the United States District Court for the Northern District of California, entitled Anderson v. Svane, et al., 3:20-cv-03671, against certain of the Company’s executive officers and directors. The derivative complaint alleged breaches of fiduciary duty against all defendants, and an insider trading claim and violations of Section 10(b) of the Exchange Act against the officer defendants, purportedly on behalf of the Company itself. The claims were based on nearly identical allegations as the two putative class action complaints described above, namely that the defendants misrepresented and/or omitted material information in certain of our prior public filings. On July 27, 2020, the court ordered the derivative action related to the class action, and the derivative action was stayed pending resolution of the class action. On May 6, 2021, the court approved a joint stipulation to extend the stay pending the outcome of the appeal of the class action. On April 18, 2022, following the Ninth Circuit's affirmation of the dismissal of the class action, plaintiff filed a stipulation to dismiss the derivative action, which was granted by the court on May 20, 2022.

On May 27, 2022, Zendesk was named as a defendant in an employment-related putative class action captioned Roe, et al. v. Zendesk, No. 22-599855 (S.F. Super. Ct.). The complaint, filed by one current employee and three former employees, alleges violations of the California Equal Pay Act and Unfair Competition Law. Plaintiffs seek to represent a class consisting of all women who worked for Zendesk in California at any time during the four years preceding the filing of the complaint. Zendesk has a deadline of August 1, 2022, to respond. No damages were specified, and no settlement demands or offers have been made.
From time to time, we may be subject to other legal proceedings, claims, investigations, and government inquiries in the ordinary course of business. We have received, and may in the future continue to receive, claims from third parties asserting, among other things, infringement of their intellectual property rights, defamation, labor and employment rights, privacy, and contractual rights. In general, the resolution of a legal matter could prevent the Company from offering its service to others, could be material to the Company’s financial condition or cash flows, or both, or could otherwise adversely affect the Company’s operating results.

The outcomes of legal proceedings and other contingencies are inherently unpredictable and subject to significant uncertainties. As a result, the Company is not able to reasonably estimate the amount or range of possible losses in excess of any amounts accrued, including losses that could arise as a result of application of non-monetary remedies, with respect to the contingencies it faces. In management’s opinion, resolution of all current matters is not expected to have a material adverse impact on business, consolidated balance sheets, results of operations, comprehensive loss, or cash flows.
Indemnifications
In the ordinary course of business, we enter into contractual arrangements under which we agree to provide indemnification of varying scope and terms to customers, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of the breach of such agreements, intellectual property infringement claims made by third parties, and other liabilities relating to or arising from our products or our acts or omissions. In these circumstances, payment may be conditional on the other party making a claim pursuant to the procedures specified in the particular contract. Further, our obligations under these agreements may be limited in terms of time and/or amount, and in some instances, we may have recourse against third parties for certain payments. In addition, we have indemnification agreements with our directors and executive officers that require us, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors or officers. The terms of such obligations may vary. To date, we have not incurred any material costs, and we have not accrued any liabilities in our consolidated financial statements, as a result of these obligations.
Certain of our product offerings include service-level agreements warranting defined levels of uptime reliability and performance, which permit those customers to receive credits for future services in the event that we fail to meet those levels. To date, we have not accrued for any significant liabilities in our consolidated financial statements as a result of these service-level agreements.
v3.22.2
Common Stock and Stockholders' Equity
 6 Months Ended
Jun. 30, 2022
Equity [Abstract]  
Common Stock and Stockholders' Equity Common Stock and Stockholders’ Equity
Common Stock
As of June 30, 2022 and December 31, 2021, there were 400 million shares of common stock authorized for issuance with a par value of $0.01 per share, and 123.3 million and 121.6 million shares were issued and outstanding as of June 30, 2022 and December 31, 2021, respectively.
Preferred Stock
As of June 30, 2022 and December 31, 2021, there were 10 million shares of preferred stock authorized for issuance with a par value of $0.01 per share and no shares of preferred stock were issued or outstanding.
Employee Equity Plans
Employee Stock Purchase Plan
Under the Employee Stock Purchase Plan (the “ESPP”), eligible employees are granted options to purchase shares of our common stock through payroll deductions. The ESPP provides for 18-month offering periods, which include three six-month purchase periods. At the end of each purchase period, employees are able to purchase shares at 85% of the lower of the fair market value of our common stock at the beginning of the offering period or the fair market value of our common stock at the end of the purchase period. During the three and six months ended June 30, 2022, 0.3 million shares of common stock were purchased under the ESPP. During the three and six months ended June 30, 2021, 0.4 million shares of common stock were purchased under the ESPP. Pursuant to the terms of the ESPP, the number of shares reserved under the ESPP increased by 1.2 million shares on January 1, 2022. As of June 30, 2022, 6.2 million shares of common stock were available for issuance under the ESPP.
Stock Option and Grant Plans
Our board of directors adopted the 2009 Stock Option and Grant Plan (the “2009 Plan”), in July 2009. The 2009 Plan was terminated in connection with our initial public offering in May 2014, and accordingly, no shares are available for issuance under this plan. The 2009 Plan continues to govern outstanding awards granted thereunder.
Our 2014 Stock Option and Incentive Plan (the “2014 Plan”), serves as the successor to our 2009 Plan. Pursuant to the terms of the 2014 Plan, the number of shares reserved for issuance under the 2014 Plan increased by 6.1 million shares on January 1, 2022. As of June 30, 2022, we had 20.9 million shares of common stock available for future grants under the 2014 Plan.
A summary of restricted stock unit, or “RSU”, activity for the six months ended June 30, 2022 is as follows (in thousands, except per share information):
Restricted Stock Units
Number of SharesWeighted Average Grant Date Fair Value
Unvested — January 1, 20224,402 $113.97 
Granted3,634 106.86 
Vested(958)103.15 
Forfeited or canceled(619)112.60 
Unvested — June 30, 20226,459 $111.71 

The total fair value of RSUs vested during the six months ended June 30, 2022 and 2021 was $97 million and $183 million, respectively. The fair value of RSUs vested represents market value on the vesting date.
A summary of stock option activity for the six months ended June 30, 2022 is as follows (in thousands, except per share information):
 
 Stock Options
Number of
Shares		Weighted
Average
Exercise Price		Weighted
Average
Remaining
Contractual
Term		Aggregate
Intrinsic
Value
  (In years) 
Outstanding — January 1, 20223,457 $44.71 4.4$222,460 
Granted492 116.56 
Exercised(378)32.37 
Forfeited or canceled(71)119.08 
Outstanding — June 30, 20223,500 $54.63 5.0$119,138 
 
The aggregate intrinsic value for options outstanding represents the difference between the closing market price of our common stock on the last trading day of the reporting period and the exercise price of outstanding, in-the-money options.

The total intrinsic value of stock options exercised during the six months ended June 30, 2022 and 2021 was $30 million and $72 million, respectively. The intrinsic value for options exercised represents the difference between the exercise price and the market value on the date of exercise. The weighted-average grant date fair value of stock options granted during the six months ended June 30, 2022 and 2021 was $43.72 and $52.60, respectively.
As of June 30, 2022, we had a total of $728 million in future expense related to our stock options, RSUs, and ESPP to be recognized over a weighted average period of 2.9 years.
Performance Restricted Stock Units
In the first quarter of 2022, the compensation committee of our board of directors granted performance-based restricted stock units, or PRSUs, representing a target of 0.1 million shares of common stock to certain senior executives. The PRSUs vest over a four-year service period. The PRSUs include a performance condition, based on company-wide revenue growth, and a market condition, based on our total Zendesk stockholder return as compared to the total stockholder return of the Russell 3000
Index, each measured over a one-year performance period. The PRSUs will vest in a percentage of the target number of shares depending on the extent the conditions are achieved and subject to the required service. The fair value of those PRSUs subject to the market condition was estimated on the date of grant using a Monte Carlo simulation, which incorporates various assumptions including the expected stock price volatility over the performance period and the stock price at the grant date.
The compensation cost is recognized under the accelerated attribution method. During the three and six months ended June 30, 2022, we recorded $2 million and $3 million of share-based compensation expense related to the PRSUs, respectively. The total future expense related to the PRSUs that are expected to vest as of June 30, 2022 is $11 million.
v3.22.2
Deferred Revenue and Performance Obligations
 6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
Deferred Revenue and Performance Obligations Costs to Obtain Customer ContractsThe balance of deferred costs to obtain customer contracts was $161 million and $145 million as of June 30, 2022 and December 31, 2021, respectively. Amortization expense for deferred costs was $22 million and $16 million for the three months ended June 30, 2022 and 2021, respectively, and $42 million and $31 million for the six months ended June 30, 2022 and 2021, respectively. There were no impairment losses related to deferred costs for the periods presented.Deferred Revenue and Performance Obligations
The changes in the balances of deferred revenue are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Balance, beginning of period$526,520 $396,522 $517,210 $383,358 
Billings450,887 364,157 848,524 675,369 
Subscription and services revenue(382,250)(302,014)(746,626)(584,853)
Other revenue*(24,958)(16,202)(48,909)(31,411)
Balance, end of period$570,199 $442,463 $570,199 $442,463 
*Other revenue primarily includes implementation and training services, usage-based revenue, and amounts from contract assets.

For the three months ended June 30, 2022 and June 30, 2021, the majority of revenue recognized was from the deferred revenue balances at the beginning of each period. For the six months ended June 30, 2022 and 2021, approximately half of revenue recognized was from the deferred revenue balances at the beginning of each period. When revenue is recognized in advance of invoicing we record contract assets, which are included in prepaid expenses and other current assets on our consolidated balance sheets. As of June 30, 2022 and December 31, 2021, the balance of contract assets was $3 million and $4 million, respectively.

The aggregate balance of remaining performance obligations as of June 30, 2022 was $1,406 million. We expect to recognize $951 million of the balance as revenue in the next 12 months and the substantial majority of the remainder in the next 13-36 months. The aggregate balance of remaining performance obligations represents contracted revenue that has not yet been recognized, including contracted revenue from renewals, and does not include contract amounts which are cancellable by the customer and amounts associated with optional renewal periods.
v3.22.2
Net Loss Per Share
 6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Net Loss Per Share Net Loss Per Share
Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including those related to outstanding share-based awards and our convertible senior notes, to the extent dilutive. Basic and diluted net loss per share were the same for each period presented as the inclusion of all potential common stock outstanding would have been anti-dilutive.
The following table presents the calculation of basic and diluted net loss per share for the periods presented (in thousands, except per share data):
 Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
Net loss$(95,082)$(58,407)$(162,028)$(107,372)
Weighted-average shares used to compute basic and diluted net loss per share122,841 119,050 122,404 118,484 
Net loss per share, basic and diluted$(0.77)$(0.49)$(1.32)$(0.91)
 
The anti-dilutive securities excluded from the shares used to calculate diluted net loss per share are as follows (in thousands):
 As of June 30,
20222021
Shares subject to outstanding common stock options and employee stock purchase plan3,623 4,013 
RSUs and PRSUs6,589 4,801 
Shares related to convertible senior notes12,939 3,739 
 23,151 12,553 

Prior to the adoption of ASU 2020-06, we used the treasury stock method for calculating any potential dilutive effect of the conversion spread of our convertible senior notes on diluted net income per share, if applicable. The conversion spread had a dilutive impact on diluted net income per share when the average market price of our common stock for a given reporting period exceeded the initial conversion prices of $63.07 and $108.76 per share for the 2023 Notes and 2025 Notes, respectively.
After the adoption of ASU 2020-06, we use the if-converted method for calculating any potential dilutive effect of our convertible senior notes. Under this method, we calculate diluted net income per share assuming that all the convertible senior notes were converted solely into shares of common stock at the beginning of the reporting period. Based on the initial conversion price, potential dilution related to the 2023 Notes and 2025 Notes is approximately 2.4 million and 10.6 million shares, respectively. The potential impact upon the conversion of the convertible senior notes was excluded from the calculation of diluted net loss per share for the three and six months ended June 30, 2022 because the effect would have been anti-dilutive.
v3.22.2
Income Taxes
 6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income TaxesWe reported income tax expense of $2 million for each of the three months ended June 30, 2022 and 2021. We reported income tax expense of $6 million and $5 million for the six months ended June 30, 2022 and 2021, respectively. The effective tax rate for each period differs from the statutory rate primarily as a result of not recognizing a deferred tax asset for United States (“U.S.”) losses due to having a full valuation allowance against U.S. deferred tax assets.
v3.22.2
Geographic Information
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Geographic Information Geographic Information
Our chief operating decision maker reviews the financial information presented on a consolidated basis for purposes of allocating resources and evaluating our financial performance. Accordingly, we have determined that we operate in a single reporting segment.
Revenue
The following table presents our revenue by geographic area, as determined based on the billing address of our customers (in thousands):
 
 Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
United States$210,310 $162,388 $407,448 $315,212 
EMEA116,212 93,017 228,335 179,434 
APAC40,662 31,840 80,550 62,970 
Other40,024 30,971 79,202 58,648 
Total$407,208 $318,216 $795,535 $616,264 
Long-Lived Assets
The following table presents our long-lived assets by geographic area (in thousands):
 
As of
June 30, 2022		As of
December 31, 2021
United States$33,792 $59,776 
EMEA:
Republic of Ireland28,647 34,728 
Other EMEA12,265 8,261 
Total EMEA40,912 42,989 
APAC:
Singapore9,673 13,145 
Other APAC4,858 5,948 
Total APAC14,531 19,093 
Other7,500 5,883 
Total$96,735 $127,741 
 
The table above includes property and equipment and lease right-of-use assets and excludes capitalized internal-use software and intangible assets.
v3.22.2
Agreement and Plan of Merger
 6 Months Ended
Jun. 30, 2022
Business Combination and Asset Acquisition [Abstract]  
Agreement and Plan of Merger Agreement and Plan of Merger
On June 24, 2022, we entered into the Merger Agreement with Zoro BidCo, Inc. (“Parent”) and Zoro Merger Sub, Inc. (“Merger Sub”), affiliates of funds advised by private equity firms H&F and Permira.

The Merger Agreement provides that, among other things and on the terms and subject to the conditions of the Merger Agreement, (a) Merger Sub will merge with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly owned subsidiary of Parent, and (b) at the effective time of the Merger (the “Effective Time”), each issued and outstanding share of common stock of the Company, par value $0.01 per share (other than certain shares as specified in the Merger Agreement) and outstanding equity awards will be converted into the right to receive $77.50 in cash, without interest, subject to any required tax withholding as provided in the Merger Agreement (and, for stock options, less the per share exercise price and, for unvested equity awards, subject to vesting terms and conditions).

The transaction, which has been unanimously approved by Zendesk’s Board of Directors, is expected to close in the fourth quarter of this year. If the Merger is consummated, the Company common stock will be delisted from the New York Stock Exchange and deregistered under the Securities Exchange Act of 1934 at or after the Effective Time.

The completion of the Merger is subject to the satisfaction or waiver of certain customary mutual closing conditions, including the affirmative vote of holders of a majority of the outstanding shares of Company's common stock having approved adoption of the Merger Agreement (the “Company Stockholder Approval”), the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the receipt of certain other regulatory approvals, and the absence of any law or order by a court or other governmental entity of competent jurisdiction restraining, enjoining or otherwise prohibiting the consummation of the Merger.
The Merger Agreement contains termination rights for each of the Company and Parent. The Company is required to pay Parent a termination fee of $254 million in cash upon termination of the Merger Agreement under specified
circumstances, including, among others, the termination by Parent in the event of an adverse recommendation change by the Board of Directors of the Company or the termination by the Company to enter into an agreement in connection with a Superior Proposal (as defined in the Merger Agreement).

The Merger Agreement also provides that a reverse termination fee of $610 million will be payable by Parent to the Company under specified circumstances, including, among others, if (a) Parent fails to consummate the Merger following satisfaction or waiver of certain closing conditions and the Company’s irrevocable confirmation that it is ready to consummate the closing or (b) Parent otherwise breaches its obligations under the Merger Agreement such that there is a failure of certain conditions to the Merger that cannot be cured by March 24, 2023. The Merger Agreement also provides that, in certain circumstances, either party may seek to compel the other party to specifically perform its obligations under the Merger Agreement.
The foregoing summary of the Merger Agreement and the transactions contemplated thereby does not purport to be complete and is subject to and qualified in its entirety by the full text of the Merger Agreement
v3.22.2
Overview and Basis of Presentation (Policies)
 6 Months Ended
Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation
These unaudited condensed consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles, or GAAP, and applicable rules and regulations of the Securities and Exchange Commission, or SEC, regarding interim financial reporting. Certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. Therefore, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in our Annual Report on Form 10-K, for the year ended December 31, 2021, filed with the SEC on February 15, 2022. There have been no changes to our significant accounting policies described in the Annual Report on Form 10-K that have had a material impact on our condensed consolidated financial statements and related notes, except for the methodology to value market-based stock awards described in Note 10 of the Notes to our Condensed Consolidated Financial Statements and the accounting for convertible debt instruments described below.
The consolidated balance sheet as of December 31, 2021 included herein was derived from the audited financial statements as of that date. The unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly our financial position, results of operations, comprehensive loss, stockholders’ equity, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full year ending December 31, 2022.
Use of Estimates
The preparation of our consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reported periods.
Significant items subject to such estimates and assumptions include:
•the estimate of variable consideration related to revenue recognition;
•the estimate of credit losses for accounts receivable and marketable securities;
•the fair value and useful lives of acquired intangible assets;
•the capitalization and useful life of capitalized costs to obtain customer contracts;
•the valuation of strategic investments;
•the fair value and useful lives of property and equipment;
•the capitalization and useful lives of internal-use software;
•the lease term and incremental borrowing rate for lease liabilities;
•the fair value of our convertible senior notes;
•the fair value of asset retirement obligations;
•the fair value and expense recognition for certain share-based awards;
•the preparation of financial forecasts used in currency hedging;
•the recognition and measurement of legal contingencies; and
•the recognition of tax benefits and forecasts used to determine our effective tax rate.

As of the date of issuance of the financial statements, we are not aware of any material specific events or circumstances that would require us to update our estimates, judgments, or to revise the carrying values of our assets or liabilities. These estimates may change, as new events occur and additional information is obtained, and are recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates and any such differences may be material to our financial statements.
Concentrations of Risk
As of June 30, 2022 and December 31, 2021, no customers represented 10% or greater of our total accounts receivable balance. There were no customers that individually exceeded 10% of our revenue during the three and six months ended June 30, 2022 and 2021.
Recently Adopted Accounting Pronouncements
In August 2020, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2020-06 (“ASU 2020-06”), regarding Accounting Standards Codification, or ASC, Topic 470 “Debt” and ASC Topic 815 “Derivatives and Hedging,” which reduces the number of accounting models for convertible instruments, including amending the calculation of diluted earnings per share and the balance sheet presentation of those instruments, as well as the resulting recognition of interest expense, among other changes. We adopted this standard as of January 1, 2022 using the modified retrospective method.
Adoption under the modified retrospective method impacted the 2023 Notes and 2025 Notes (as each is defined below) outstanding as of January 1, 2022, and resulted in the re-combination of the liability and equity components of each instrument into a single liability instrument measured at amortized cost. As a result, at transition the Company recorded a $246 million decrease to additional paid-in-capital, net of income tax effects, to remove the equity component separately recorded for the conversion features associated with the Notes (as defined below), a $165 million increase to the total carrying value of the Notes, to reflect the full principal amount of the Notes outstanding net of issuance costs, and a $81 million cumulative effect decrease to the beginning balance of accumulated deficit, net of income tax effects. Interest expense recognized in future periods will be reduced as a result of accounting for each instrument as a single liability measured at amortized cost. In addition, ASU 2020-06 also requires the use of the if-converted method in calculating diluted earnings per share for convertible instruments. Since the Company had a net loss for the three and six months ended June 30, 2022, the convertible senior notes were determined to be anti-dilutive and therefore had no impact to basic or diluted net loss per share for the periods as a result of adopting ASU 2020-06.
Recently Adopted Accounting Pronouncements
Recently Adopted Accounting Pronouncements
In August 2020, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update No. 2020-06 (“ASU 2020-06”), regarding Accounting Standards Codification, or ASC, Topic 470 “Debt” and ASC Topic 815 “Derivatives and Hedging,” which reduces the number of accounting models for convertible instruments, including amending the calculation of diluted earnings per share and the balance sheet presentation of those instruments, as well as the resulting recognition of interest expense, among other changes. We adopted this standard as of January 1, 2022 using the modified retrospective method.
Adoption under the modified retrospective method impacted the 2023 Notes and 2025 Notes (as each is defined below) outstanding as of January 1, 2022, and resulted in the re-combination of the liability and equity components of each instrument into a single liability instrument measured at amortized cost. As a result, at transition the Company recorded a $246 million decrease to additional paid-in-capital, net of income tax effects, to remove the equity component separately recorded for the conversion features associated with the Notes (as defined below), a $165 million increase to the total carrying value of the Notes, to reflect the full principal amount of the Notes outstanding net of issuance costs, and a $81 million cumulative effect decrease to the beginning balance of accumulated deficit, net of income tax effects. Interest expense recognized in future periods will be reduced as a result of accounting for each instrument as a single liability measured at amortized cost. In addition, ASU 2020-06 also requires the use of the if-converted method in calculating diluted earnings per share for convertible instruments. Since the Company had a net loss for the three and six months ended June 30, 2022, the convertible senior notes were determined to be anti-dilutive and therefore had no impact to basic or diluted net loss per share for the periods as a result of adopting ASU 2020-06.
v3.22.2
Financial Instruments (Tables)
 6 Months Ended
Jun. 30, 2022
Fair Value Disclosures [Abstract]  
Schedule of Assets Measured at Fair Value on Recurring Basis
The following tables present information about our financial assets measured at fair value on a recurring basis based on the three-tier fair value hierarchy (in thousands):
Fair Value Measurement at
June 30, 2022
Level 1Level 2Total
Description   
U.S. Treasury securities$— $473,780 $473,780 
Corporate bonds— 407,259 407,259 
Money market funds296,670 — 296,670 
Asset-backed securities— 92,019 92,019 
Agency securities— 52,012 52,012 
Commercial paper— 49,286 49,286 
Certificates of deposit and time deposits— 10,841 10,841 
Total$296,670 $1,085,197 $1,381,867 
Included in cash and cash equivalents  $317,655 
Included in marketable securities  $1,064,212 
 Fair Value Measurement at
December 31, 2021
Level 1Level 2Total
Description   
U.S. Treasury securities$— $480,726 $480,726 
Corporate bonds— 430,018 430,018 
Money market funds234,123 — 234,123 
Asset-backed securities— 93,620 93,620 
Agency securities— 50,057 50,057 
Commercial paper— 48,950 48,950 
Certificates of deposit and time deposits— 1,488 1,488 
Total$234,123 $1,104,859 $1,338,982 
Included in cash and cash equivalents  $239,550 
Included in marketable securities  $1,099,432 
Schedule of Marketable Securities Classified by Contractual Maturity
The following table classifies our marketable securities by contractual maturity (in thousands):
 
 June 30,
2022		December 31,
2021
Due in one year or less$590,263 $539,780 
Due after one year and within five years473,949 559,652 
Total$1,064,212 $1,099,432 
Schedule of Derivative Instruments on Consolidated Balance Sheets
The following tables present information about our derivative instruments on our consolidated balance sheets (in thousands):
 
 June 30, 2022
Asset DerivativesLiability Derivatives
Derivative InstrumentBalance Sheet LocationFair Value
(Level 2)		Balance Sheet LocationFair Value
(Level 2)
Foreign currency forward contractsOther current assets$13,110 Accrued liabilities$15,944 
Total$13,110  $15,944 
 December 31, 2021
Asset DerivativesLiability Derivatives
Derivative InstrumentBalance Sheet LocationFair Value
(Level 2)		Balance Sheet LocationFair Value
(Level 2)
Foreign currency forward contractsOther current assets$6,439 Accrued liabilities$9,422 
Total $6,439  $9,422 
Schedule of Derivative Instruments on Statement of Operations
The following table presents information about our foreign currency forward contracts on our consolidated statements of operations for the three and six months ended June 30, 2022 and 2021 (in thousands):
 
Gain (Loss) Reclassified from AOCI into Earnings
Three Months Ended June 30,Six Months Ended June 30,
Classification2022202120222021
Revenue$2,392 $(1,373)$3,186 $(2,081)
Cost of revenue(901)400 (1,406)890 
Research and development(1,272)488 (1,946)1,003 
Sales and marketing(2,384)1,044 (3,620)2,073 
General and administrative(742)290 (1,135)707 
 Total$(2,907)$849 $(4,921)$2,592 
v3.22.2
Property and Equipment (Tables)
 6 Months Ended
Jun. 30, 2022
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment, Net
Property and equipment, net consists of the following (in thousands): 
 June 30,
2022		December 31,
2021
Leasehold improvements$61,219 $79,661 
Capitalized internal-use software61,013 58,135 
Computer equipment and licensed software and patents42,447 41,512 
Furniture and fixtures11,595 14,627 
Construction in progress19,458 20,927 
Total195,732 214,862 
Less: accumulated depreciation and amortization(104,777)(117,047)
Property and equipment, net$90,955 $97,815 
v3.22.2
Leases (Tables)
 6 Months Ended
Jun. 30, 2022
Leases [Abstract]  
Schedule of Lease Impact on Balance Sheet
The following table presents information about leases on our consolidated balance sheets (in thousands):
June 30, 2022December 31, 2021
Assets
Lease right-of-use assets$48,259 $69,936 
Liabilities
Lease liabilities21,977 21,253 
Lease liabilities, noncurrent51,727 63,212 
Schedule of Lease Cost and Supplemental Cash Flow Information
The following table presents information about leases on our consolidated statements of operations (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Operating lease expense$4,842 $5,506 $10,423 $11,128 
Short-term lease expense83 128 203 256 
Variable lease expense1,079 1,244 2,511 2,462 
Sublease income(634)(434)(995)(874)

The following table presents supplemental cash flow information about our leases (in thousands):
Six Months Ended June 30,
20222021
Cash paid for amounts included in the measurement of lease liabilities$11,240 $13,903 
Operating lease assets obtained in exchange for new lease liabilities2,754 1,397 
v3.22.2
Goodwill and Acquired Intangible Assets (Tables)
 6 Months Ended
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of Intangible Assets Acquired
Acquired intangible assets subject to amortization consist of the following (in thousands):
 
 As of June 30, 2022
CostAccumulated
Amortization		NetWeighted Average Remaining Useful Life
   (In years)
Developed technology$28,000 $(16,089)$11,911 2.5
Customer relationships14,300 (9,517)4,783 3.0
 $42,300 $(25,606)$16,694  
 
 As of December 31, 2021
CostAccumulated
Amortization		NetWeighted Average Remaining Useful Life
   (In years)
Developed technology$28,000 $(13,734)$14,266 3.0
Customer relationships14,300 (8,233)6,067 3.2
 $42,300 $(21,967)$20,333  
Summary of Estimated Future Amortization Expense
Estimated future amortization expense as of June 30, 2022 is as follows (in thousands):
Remainder of 2022$3,658 
20236,579 
20244,837 
2025972 
2026488 
Thereafter160 
$16,694 
v3.22.2
Convertible Senior Notes (Tables)
 6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Net Carrying Amount of Liability and Equity Component of Convertible Notes
The net carrying amount of the liability component of the 2025 Notes is as follows (in thousands):
June 30,
2022		December 31,
2021
Principal$1,150,000 $1,150,000 
Unamortized debt discount— (157,983)
Unamortized issuance costs(12,576)(12,667)
Net carrying amount$1,137,424 $979,350 


The net carrying amount of the equity component of the 2025 Notes is as follows (in thousands):
June 30,
2022		December 31,
2021
Debt discount for conversion option$— $220,061 
Issuance costs— (4,035)
Net carrying amount$— $216,026 
The net carrying amount of the liability component of the 2023 Notes is as follows (in thousands):
June 30,
2022		December 31,
2021
Principal$149,194 $149,194 
Unamortized debt discount— (8,641)
Unamortized issuance costs(507)(815)
Net carrying amount$148,687 $139,738 

The net carrying amount of the equity component of the 2023 Notes is as follows (in thousands):
June 30,
2022		December 31,
2021
Debt discount for conversion option$— $32,427 
Issuance costs— (765)
Net carrying amount$— $31,662 
Schedule of Interest Expense
The interest expense related to the 2025 Notes is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Contractual interest expense$1,797 $1,797 $3,594 $3,594 
Amortization of debt discount— 10,155 — 20,184 
Amortization of issuance costs1,046 715 2,089 1,412 
Total interest expense$2,843 $12,667 $5,683 $25,190 
The interest expense related to the 2023 Notes is as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Contractual interest expense$93 $93 $186 $186 
Amortization of debt discount— 1,677 — 3,333 
Amortization of issuance costs179 147 357 290 
Total interest expense$272 $1,917 $543 $3,809 
v3.22.2
Common Stock and Stockholders' Equity (Tables)
 6 Months Ended
Jun. 30, 2022
Equity [Abstract]  
Summary of Stock Option and RSU Award Activity A summary of restricted stock unit, or “RSU”, activity for the six months ended June 30, 2022 is as follows (in thousands, except per share information):
Restricted Stock Units
Number of SharesWeighted Average Grant Date Fair Value
Unvested — January 1, 20224,402 $113.97 
Granted3,634 106.86 
Vested(958)103.15 
Forfeited or canceled(619)112.60 
Unvested — June 30, 20226,459 $111.71 
A summary of stock option activity for the six months ended June 30, 2022 is as follows (in thousands, except per share information):
 
 Stock Options
Number of
Shares		Weighted
Average
Exercise Price		Weighted
Average
Remaining
Contractual
Term		Aggregate
Intrinsic
Value
  (In years) 
Outstanding — January 1, 20223,457 $44.71 4.4$222,460 
Granted492 116.56 
Exercised(378)32.37 
Forfeited or canceled(71)119.08 
Outstanding — June 30, 20223,500 $54.63 5.0$119,138 
v3.22.2
Deferred Revenue and Performance Obligations (Tables)
 6 Months Ended
Jun. 30, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of Changes in Balance of Deferred Revenue
The changes in the balances of deferred revenue are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2022202120222021
Balance, beginning of period$526,520 $396,522 $517,210 $383,358 
Billings450,887 364,157 848,524 675,369 
Subscription and services revenue(382,250)(302,014)(746,626)(584,853)
Other revenue*(24,958)(16,202)(48,909)(31,411)
Balance, end of period$570,199 $442,463 $570,199 $442,463 
*Other revenue primarily includes implementation and training services, usage-based revenue, and amounts from contract assets.
v3.22.2
Net Loss Per Share (Tables)
 6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Schedule of Computation of Basic and Diluted Net Loss per Share The following table presents the calculation of basic and diluted net loss per share for the periods presented (in thousands, except per share data):
 Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
Net loss$(95,082)$(58,407)$(162,028)$(107,372)
Weighted-average shares used to compute basic and diluted net loss per share122,841 119,050 122,404 118,484 
Net loss per share, basic and diluted$(0.77)$(0.49)$(1.32)$(0.91)
Schedule of Anti-Dilutive Securities Excluded from the Diluted per Share Calculation
The anti-dilutive securities excluded from the shares used to calculate diluted net loss per share are as follows (in thousands):
 As of June 30,
20222021
Shares subject to outstanding common stock options and employee stock purchase plan3,623 4,013 
RSUs and PRSUs6,589 4,801 
Shares related to convertible senior notes12,939 3,739 
 23,151 12,553 
v3.22.2
Geographic Information (Tables)
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Schedule of Revenue by Geographic Areas
The following table presents our revenue by geographic area, as determined based on the billing address of our customers (in thousands):
 
 Three Months Ended
June 30,		Six Months Ended
June 30,
2022202120222021
United States$210,310 $162,388 $407,448 $315,212 
EMEA116,212 93,017 228,335 179,434 
APAC40,662 31,840 80,550 62,970 
Other40,024 30,971 79,202 58,648 
Total$407,208 $318,216 $795,535 $616,264 
Schedule of Long-Lived Assets by Geographic Areas
The following table presents our long-lived assets by geographic area (in thousands):
 
As of
June 30, 2022		As of
December 31, 2021
United States$33,792 $59,776 
EMEA:
Republic of Ireland28,647 34,728 
Other EMEA12,265 8,261 
Total EMEA40,912 42,989 
APAC:
Singapore9,673 13,145 
Other APAC4,858 5,948 
Total APAC14,531 19,093 
Other7,500 5,883 
Total$96,735 $127,741 
v3.22.2
Overview and Basis of Presentation (Details) - USD ($)
$ / shares in Units, $ in Thousands
Jun. 24, 2022
Jun. 30, 2022
Jan. 01, 2022
Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Additional paid-in capital   $ (1,568,922)   $ (1,637,157)
Accumulated deficit   $ (1,221,157)   $ (1,140,243)
Zoro BidCo, Inc and Zoro Merger Sub, Inc        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Business acquisition, share price (in usd per share) $ 77.50      
Permira Advisers LLC and Hellman & Friedman Advisors LLC        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Consideration transferred $ 10,200,000      
Business acquisition, share price (in usd per share) $ 77.50      
Accounting Standards Update 2020-06 | Cumulative effect, period of adoption, adjustment        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Additional paid-in capital     $ 246,000  
Total carrying value of notes     165,000  
Accounting Standards Update 2020-06 | Cumulative effect, period of adoption, adjustment | Accumulated Deficit        
New Accounting Pronouncements or Change in Accounting Principle [Line Items]        
Accumulated deficit     $ 81,000  
v3.22.2
Business Combinations - Narrative (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Sep. 30, 2021
Business Acquisition [Line Items]      
Increase in goodwill $ 177 $ 177  
Cleverly Lda.      
Business Acquisition [Line Items]      
Increase in goodwill     $ 7
Cleverly Lda. | Developed technology      
Business Acquisition [Line Items]      
Increase in developed technology     $ 1
v3.22.2
Financial Instruments - Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Included in marketable securities $ 1,064,212 $ 1,099,432
Fair value measurements, recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 1,381,867 1,338,982
Included in cash and cash equivalents 317,655 239,550
Included in marketable securities 1,064,212 1,099,432
Fair value measurements, recurring | U.S. Treasury securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 473,780 480,726
Fair value measurements, recurring | Corporate bonds    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 407,259 430,018
Fair value measurements, recurring | Money market funds    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 296,670 234,123
Fair value measurements, recurring | Asset-backed securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 92,019 93,620
Fair value measurements, recurring | Agency securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 52,012 50,057
Fair value measurements, recurring | Commercial paper    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 49,286 48,950
Fair value measurements, recurring | Certificates of deposit and time deposits    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 10,841 1,488
Fair value measurements, recurring | Level 1    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 296,670 234,123
Fair value measurements, recurring | Level 1 | U.S. Treasury securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 0 0
Fair value measurements, recurring | Level 1 | Corporate bonds    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 0 0
Fair value measurements, recurring | Level 1 | Money market funds    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 296,670 234,123
Fair value measurements, recurring | Level 1 | Asset-backed securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 0 0
Fair value measurements, recurring | Level 1 | Agency securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 0 0
Fair value measurements, recurring | Level 1 | Commercial paper    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 0 0
Fair value measurements, recurring | Level 1 | Certificates of deposit and time deposits    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 0 0
Fair value measurements, recurring | Level 2    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 1,085,197 1,104,859
Fair value measurements, recurring | Level 2 | U.S. Treasury securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 473,780 480,726
Fair value measurements, recurring | Level 2 | Corporate bonds    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 407,259 430,018
Fair value measurements, recurring | Level 2 | Money market funds    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 0 0
Fair value measurements, recurring | Level 2 | Asset-backed securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 92,019 93,620
Fair value measurements, recurring | Level 2 | Agency securities    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 52,012 50,057
Fair value measurements, recurring | Level 2 | Commercial paper    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 49,286 48,950
Fair value measurements, recurring | Level 2 | Certificates of deposit and time deposits    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets $ 10,841 $ 1,488
v3.22.2
Financial Instruments - Narrative (Details) - USD ($)
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Mar. 31, 2022
Mar. 31, 2021
Dec. 31, 2020
Jun. 30, 2020
Mar. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]                    
Gross unrealized losses     $ (19,000,000)   $ (3,000,000)          
Amortized cost of cash equivalents and marketable securities $ 1,401,000,000   1,401,000,000   1,341,000,000          
Accrued interest 3,000,000   3,000,000   3,000,000          
Aggregate fair value of securities with unrealized losses 989,000,000   989,000,000   795,000,000          
Gross unrealized gains         1,000,000          
Allowance for credit losses 0   0   0          
Balance of strategic investment 17,000,000   17,000,000   16,000,000          
Adjustments to carrying value of strategic investments     0   0          
Unrecognized gain related to effective portion of changes in fair value of foreign currency forward contracts $ 326,821,000 $ 464,127,000 $ 326,821,000 $ 464,127,000 489,218,000 $ 327,100,000 $ 430,243,000 $ 431,831,000    
Closing price of common stock (in usd per share) $ 74.07   $ 74.07              
Level 3                    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]                    
Fair value of financial assets $ 0   $ 0   0          
Convertible debt | Convertible senior notes due 2023                    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]                    
Interest rate 0.25%   0.25%             0.25%
Aggregate principal amount $ 26,000,000   $ 26,000,000             $ 575,000,000
Convertible debt | Convertible senior notes due 2025                    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]                    
Interest rate 0.625%   0.625%           0.625%  
Aggregate principal amount $ 1,150,000,000   $ 1,150,000,000           $ 1,150,000,000  
Convertible debt | Level 2 | Convertible senior notes due 2023                    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]                    
Fair value 973,000,000   973,000,000              
Convertible debt | Level 2 | Convertible senior notes due 2025                    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]                    
Fair value 177,000,000   $ 177,000,000              
Foreign currency forward contracts                    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]                    
Derivative, maximum maturity     15 months              
Reclassification of net loss into earnings over next 12 months 1,000,000   $ 1,000,000              
Notional value 537,000,000   537,000,000   $ 488,000,000          
Loss recognized in AOCI 6,000,000 $ 1,000,000 (1,000,000) $ (3,000,000)            
Foreign currency forward contracts | AOCI, Derivative Qualifying as Hedge, Excluded Component, Parent                    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]                    
Unrecognized gain related to effective portion of changes in fair value of foreign currency forward contracts $ 1,000,000   $ 1,000,000              
v3.22.2
Financial Instruments - Marketable Securities by Contractual Maturity (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Fair Value Disclosures [Abstract]    
Due in one year or less $ 590,263 $ 539,780
Due after one year and within five years 473,949 559,652
Total $ 1,064,212 $ 1,099,432
v3.22.2
Financial Instruments - Schedule of Derivative Instruments on Consolidated Balance Sheets (Details) - Designated as hedging instrument - Level 2 - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Derivatives Fair Value [Line Items]    
Asset Derivatives $ 13,110 $ 6,439
Liability Derivatives 15,944 9,422
Foreign currency forward contracts | Other current assets    
Derivatives Fair Value [Line Items]    
Asset Derivatives 13,110 6,439
Foreign currency forward contracts | Accrued liabilities    
Derivatives Fair Value [Line Items]    
Liability Derivatives $ 15,944 $ 9,422
v3.22.2
Financial Instruments - Schedule of Derivative Instruments on Statement of Operations (Details) - Foreign currency forward contracts - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Derivative Instruments Gain Loss [Line Items]        
Gain (Loss) Reclassified from AOCI into Earnings $ (2,907) $ 849 $ (4,921) $ 2,592
Revenue        
Derivative Instruments Gain Loss [Line Items]        
Gain (Loss) Reclassified from AOCI into Earnings 2,392 (1,373) 3,186 (2,081)
Cost of revenue        
Derivative Instruments Gain Loss [Line Items]        
Gain (Loss) Reclassified from AOCI into Earnings (901) 400 (1,406) 890
Research and development        
Derivative Instruments Gain Loss [Line Items]        
Gain (Loss) Reclassified from AOCI into Earnings (1,272) 488 (1,946) 1,003
Sales and marketing        
Derivative Instruments Gain Loss [Line Items]        
Gain (Loss) Reclassified from AOCI into Earnings (2,384) 1,044 (3,620) 2,073
General and administrative        
Derivative Instruments Gain Loss [Line Items]        
Gain (Loss) Reclassified from AOCI into Earnings $ (742) $ 290 $ (1,135) $ 707
v3.22.2
Costs to Obtain Customer Contracts (Details) - USD ($)
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]          
Deferred costs to obtain customer contracts $ 161,000,000   $ 161,000,000   $ 145,000,000
Amortization of deferred costs $ 22,000,000 $ 16,000,000 42,044,000 $ 30,942,000  
Impairment related to deferred costs     $ 0 $ 0  
v3.22.2
Property and Equipment - Components of Property and Equipment (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Total $ 195,732 $ 214,862
Less: accumulated depreciation and amortization (104,777) (117,047)
Property and equipment, net 90,955 97,815
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total 61,219 79,661
Capitalized internal-use software    
Property, Plant and Equipment [Line Items]    
Total 61,013 58,135
Computer equipment and licensed software and patents    
Property, Plant and Equipment [Line Items]    
Total 42,447 41,512
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Total 11,595 14,627
Construction in progress    
Property, Plant and Equipment [Line Items]    
Total $ 19,458 $ 20,927
v3.22.2
Property and Equipment - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Property, Plant and Equipment [Line Items]          
Depreciation expense $ 5 $ 6 $ 11 $ 12  
Amortization expense of capitalized internal-use software 2 $ 2 4 $ 4  
Carrying value of capitalized internal-use software 42   42   $ 40
Capitalized internal-use software included in construction in progress 19   19   15
Implementation Costs          
Property, Plant and Equipment [Line Items]          
Implementation costs $ 9   $ 9   $ 7
v3.22.2
Leases - Schedule of Lease Impact on Balance Sheet (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Assets    
Lease right-of-use assets $ 48,259 $ 69,936
Liabilities    
Lease liabilities 21,977 21,253
Lease liabilities, noncurrent $ 51,727 $ 63,212
v3.22.2
Leases - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended
Apr. 30, 2022
Sep. 30, 2022
Jun. 30, 2022
Lessee, Lease, Description [Line Items]      
Weighted average remaining lease term     5 years 6 months
Weighted average discount rate     4.90%
Impairment of operating lease, right-of-use assets $ 25    
Subsequent Event      
Lessee, Lease, Description [Line Items]      
Impairment of operating lease, right-of-use assets   $ 3  
v3.22.2
Leases - Schedule of Lease Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Leases [Abstract]        
Operating lease expense $ 4,842 $ 5,506 $ 10,423 $ 11,128
Short-term lease expense 83 128 203 256
Variable lease expense 1,079 1,244 2,511 2,462
Sublease income $ (634) $ (434) $ (995) $ (874)
v3.22.2
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Leases [Abstract]    
Cash paid for amounts included in the measurement of lease liabilities $ 11,240 $ 13,903
Operating lease assets obtained in exchange for new lease liabilities $ 2,754 $ 1,397
v3.22.2
Goodwill and Acquired Intangible Assets - Acquired Intangible Assets Subject to Amortization (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Mar. 31, 2022
Jun. 30, 2022
Dec. 31, 2021
Finite Lived Intangible Assets [Line Items]      
Cost   $ 42,300 $ 42,300
Accumulated Amortization   (25,606) (21,967)
Net   16,694 20,333
Developed technology      
Finite Lived Intangible Assets [Line Items]      
Cost   28,000 28,000
Accumulated Amortization   (16,089) (13,734)
Net   $ 11,911 14,266
Weighted Average Remaining Useful Life 3 years 2 years 6 months  
Customer relationships      
Finite Lived Intangible Assets [Line Items]      
Cost   $ 14,300 14,300
Accumulated Amortization   (9,517) (8,233)
Net   $ 4,783 $ 6,067
Weighted Average Remaining Useful Life 3 years 2 months 12 days 3 years  
v3.22.2
Goodwill and Acquired Intangible Assets - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]          
Amortization expense $ 2 $ 2 $ 4 $ 4  
Goodwill $ 177   $ 177   $ 177
v3.22.2
Goodwill and Acquired Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]    
Remainder of 2022 $ 3,658  
2023 6,579  
2024 4,837  
2025 972  
2026 488  
Thereafter 160  
Net $ 16,694 $ 20,333
v3.22.2
Convertible Senior Notes - Narrative (Details)
$ / shares in Units, shares in Millions
 1 Months Ended 6 Months Ended
Jun. 30, 2020
USD ($)
day
$ / shares
shares
Mar. 31, 2018
USD ($)
day
$ / shares
shares
Jun. 30, 2022
USD ($)
shares
Mar. 31, 2022
USD ($)
Jan. 01, 2022
USD ($)
Dec. 31, 2021
USD ($)
Jun. 30, 2021
USD ($)
Mar. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Debt Instrument [Line Items]                  
Release of valuation allowance     $ 326,821,000 $ 327,100,000   $ 489,218,000 $ 464,127,000 $ 430,243,000 $ 431,831,000
Deferred tax liabilities, net     14,000,000            
Additional Paid-In Capital                  
Debt Instrument [Line Items]                  
Release of valuation allowance     1,568,922,000 $ 1,465,489,000   1,637,157,000 $ 1,492,117,000 $ 1,399,014,000 $ 1,344,337,000
Cumulative effect, period of adoption, adjustment                  
Debt Instrument [Line Items]                  
Release of valuation allowance           (164,576,000)      
Cumulative effect, period of adoption, adjustment | Additional Paid-In Capital                  
Debt Instrument [Line Items]                  
Release of valuation allowance           (245,690,000)      
Cumulative effect, period of adoption, adjustment | Additional Paid-In Capital | Accounting Standards Update 2019-12                  
Debt Instrument [Line Items]                  
Release of valuation allowance           51,000,000      
Convertible senior notes due 2025 | Cumulative effect, period of adoption, adjustment | Additional Paid-In Capital | Accounting Standards Update 2020-06                  
Debt Instrument [Line Items]                  
Release of valuation allowance         $ 36,000,000        
Convertible senior notes due 2023                  
Debt Instrument [Line Items]                  
Debt discount for conversion option     $ 125,000,000            
Effective interest rate     5.26%            
Debt instrument, term     1 year            
Debt issuance costs, gross     $ 14,000,000            
Convertible senior notes due 2023 | Cumulative effect, period of adoption, adjustment | Additional Paid-In Capital | Accounting Standards Update 2020-06                  
Debt Instrument [Line Items]                  
Release of valuation allowance         $ 2,000,000        
Convertible debt | Convertible senior notes due 2025                  
Debt Instrument [Line Items]                  
Aggregate principal amount $ 1,150,000,000   $ 1,150,000,000            
Interest rate 0.625%   0.625%            
Proceeds from issuance of convertible senior notes, net of issuance costs $ 1,129,000,000                
Initial conversion rate of common stock 0.0091944                
Conversion price (in usd per share) | $ / shares $ 108.76                
Limitation on sale of common stock, sale price threshold, number of trading days | day 20                
Limitation on sale of common stock, sale price threshold, trading period | day 30                
Threshold percentage of stock price trigger 130.00%                
Number of consecutive business days 5 days                
Percentage of closing sale price in excess of convertible notes 98.00%                
Redemption price percentage 100.00%                
Debt discount for conversion option $ 220,000,000   $ 0     220,061,000      
Effective interest rate     5.00%            
Debt issuance costs, gross 21,000,000                
Issuance costs attributable to the liability component 17,000,000   $ 12,576,000     12,667,000      
Net deferred tax liability related to cap call $ 51,000,000                
Capped calls, initial cap price (in usd per share) | $ / shares $ 164.17                
Number of shares covered by cap call (in shares) | shares 10.6                
Cost incurred related to capped calls $ 130,000,000                
Net proceeds used from offering to repurchase principal 618,000,000                
Payments to repurchase convertible debt 426,000,000                
Proceeds from convertible debt allocated to debt component 393,000,000                
Proceeds from convertible debt allocated to equity component 225,000,000                
Net carrying amount of liability component     1,137,424,000     979,350,000      
Repayment of debt discount $ 39,000,000                
Principal outstanding     1,150,000,000     1,150,000,000      
Convertible debt | Convertible senior notes due 2025 | Cumulative effect, period of adoption, adjustment | Accounting Standards Update 2020-06                  
Debt Instrument [Line Items]                  
Effective interest rate         1.00%        
Net deferred tax liability related to cap call         $ (36,000,000)        
Convertible debt | Convertible senior notes due 2023                  
Debt Instrument [Line Items]                  
Aggregate principal amount   $ 575,000,000 $ 26,000,000            
Interest rate   0.25% 0.25%            
Proceeds from issuance of convertible senior notes, net of issuance costs   $ 561,000,000              
Initial conversion rate of common stock   0.0158554              
Conversion price (in usd per share) | $ / shares   $ 63.07              
Limitation on sale of common stock, sale price threshold, number of trading days | day   20              
Limitation on sale of common stock, sale price threshold, trading period | day   30              
Threshold percentage of stock price trigger   130.00%              
Number of consecutive business days   5 days              
Percentage of closing sale price in excess of convertible notes   98.00%              
Redemption price percentage   100.00%              
Debt discount for conversion option     $ 0     32,427,000      
Issuance costs attributable to the liability component     $ 507,000     815,000      
Capped calls, initial cap price (in usd per share) | $ / shares   $ 95.20              
Number of shares covered by cap call (in shares) | shares   9.1 2.4            
Cost incurred related to capped calls   $ 64,000,000              
Net carrying amount of liability component   367,000,000 $ 148,687,000     139,738,000      
Loss on early extinguishment of debt   $ 26,000,000              
Principal outstanding     149,194,000     $ 149,194,000      
Debt instrument, equity, unamortized discount issuance costs     $ 3,000,000            
Number of shares terminated (in shares) | shares 6.7                
Proceeds from shares terminated $ 83,000,000                
Convertible debt | Convertible senior notes due 2023 | Cumulative effect, period of adoption, adjustment | Accounting Standards Update 2020-06                  
Debt Instrument [Line Items]                  
Effective interest rate         0.73%        
Net deferred tax liability related to cap call         $ (2,000,000)        
v3.22.2
Convertible Senior Notes - Schedule of Net Carrying Amount of Liability and Equity Component of Convertible Notes (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Jun. 30, 2020
Mar. 31, 2018
Convertible senior notes due 2023        
Net Carrying Amount of Equity Component of Convertible Notes [Abstract]        
Debt discount for conversion option $ 125,000      
Convertible debt | Convertible senior notes due 2025        
Net Carrying Amount of Liability Component of Convertible Notes [Abstract]        
Principal 1,150,000 $ 1,150,000    
Unamortized debt discount 0 (157,983)    
Unamortized issuance costs (12,576) (12,667) $ (17,000)  
Net carrying amount 1,137,424 979,350    
Net Carrying Amount of Equity Component of Convertible Notes [Abstract]        
Debt discount for conversion option 0 220,061 $ 220,000  
Issuance costs 0 (4,035)    
Net carrying amount 0 216,026    
Convertible debt | Convertible senior notes due 2023        
Net Carrying Amount of Liability Component of Convertible Notes [Abstract]        
Principal 149,194 149,194    
Unamortized debt discount 0 (8,641)    
Unamortized issuance costs (507) (815)    
Net carrying amount 148,687 139,738   $ 367,000
Net Carrying Amount of Equity Component of Convertible Notes [Abstract]        
Debt discount for conversion option 0 32,427    
Issuance costs 0 (765)    
Net carrying amount $ 0 $ 31,662    
v3.22.2
Convertible Senior Notes - Schedule of Interest Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Debt Instrument [Line Items]        
Total interest expense $ 3,121 $ 14,591 $ 6,242 $ 29,006
Convertible debt | Convertible senior notes due 2025        
Debt Instrument [Line Items]        
Contractual interest expense 1,797 1,797 3,594 3,594
Amortization of debt discount 0 10,155 0 20,184
Amortization of issuance costs 1,046 715 2,089 1,412
Total interest expense 2,843 12,667 5,683 25,190
Convertible debt | Convertible senior notes due 2023        
Debt Instrument [Line Items]        
Contractual interest expense 93 93 186 186
Amortization of debt discount 0 1,677 0 3,333
Amortization of issuance costs 179 147 357 290
Total interest expense $ 272 $ 1,917 $ 543 $ 3,809
v3.22.2
Commitments and Contingencies (Details)
$ in Millions
 1 Months Ended
Feb. 28, 2022
USD ($)
Jun. 02, 2020
complaint
Nov. 07, 2019
complaint
Ho v. Zendesk And Reidinger v. Zendesk      
Other Commitments [Line Items]      
Putative class action complaints     2
Anderson v. Svane      
Other Commitments [Line Items]      
Putative class action complaints   2  
Cloud Infrastructure      
Other Commitments [Line Items]      
Total obligation | $ $ 400    
Obligation period 5 years    
v3.22.2
Common Stock and Stockholders' Equity - Narrative (Details)
$ / shares in Units, $ in Millions
 3 Months Ended 6 Months Ended
Jan. 01, 2022
shares
Jun. 30, 2022
USD ($)
$ / shares
shares
Mar. 31, 2022
shares
Jun. 30, 2021
shares
Jun. 30, 2022
USD ($)
offeringPeriod
$ / shares
shares
Jun. 30, 2021
USD ($)
$ / shares
shares
Dec. 31, 2021
$ / shares
shares
Class Of Stock [Line Items]              
Common stock, shares authorized (in shares)   400,000,000     400,000,000   400,000,000
Common stock, par value (in usd per share) | $ / shares   $ 0.01     $ 0.01   $ 0.01
Common stock, shares outstanding (in shares)   123,300,000     123,300,000   121,600,000
Common stock, shares issued (in shares)   123,300,000     123,300,000   121,600,000
Preferred stock, shares authorized (in shares)   10,000,000     10,000,000   10,000,000
Preferred stock, par value (usd per share) | $ / shares   $ 0.01     $ 0.01   $ 0.01
Preferred stock, shares issued (in shares)   0     0   0
Preferred stock, shares outstanding (in shares)   0     0   0
Intrinsic value of options exercised (in usd per share) | $         $ 30 $ 72  
Weighted-average grant date fair value of stock options (in usd per share) | $ / shares         $ 43.72 $ 52.60  
Future period share-based compensation expense | $   $ 728     $ 728    
Future period share-based compensation expense, period to recognized         2 years 10 months 24 days    
2009 Stock Option and Grant Plan              
Class Of Stock [Line Items]              
Shares of common stock available for issuance (in shares)   0     0    
Employee stock              
Class Of Stock [Line Items]              
Percentage of purchase price of shares lower of the fair market value of common stock employees are able to purchase shares         85.00%    
Number of shares repurchased under ESPP (in shares)   300,000   400,000 300,000 400,000  
Increase in authorized shares (in shares) 1,200,000            
Shares of common stock available for issuance (in shares)   6,200,000     6,200,000    
Employee stock option              
Class Of Stock [Line Items]              
Offering period         18 months    
Number of offering periods | offeringPeriod         3    
Length of purchase period         6 months    
Employee stock option | 2014 Plan              
Class Of Stock [Line Items]              
Increase in authorized shares (in shares) 6,100,000            
Shares of common stock available for issuance (in shares)   20,900,000     20,900,000    
Restricted stock units              
Class Of Stock [Line Items]              
Intrinsic value of shares vested | $         $ 97 $ 183  
Shares granted (in shares)         3,634,000    
Performance restricted stock units              
Class Of Stock [Line Items]              
Future period share-based compensation expense | $   $ 11     $ 11    
Share-based compensation expense | $   $ 2     $ 3    
Performance restricted stock units | Chief Executive Officer and Senior Executives              
Class Of Stock [Line Items]              
Shares granted (in shares)     100,000        
Award vesting period     4 years        
Performance restricted stock units | Chief Executive Officer and Senior Executives | Share-based Payment Arrangement, Tranche Two              
Class Of Stock [Line Items]              
Award requisite service period     1 year        
v3.22.2
Common Stock and Stockholders' Equity - Summary of Stock Option and RSU Award Activity (Details)
$ / shares in Units, shares in Thousands, $ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2022
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Number of Shares    
Balance at the beginning of the period (in shares) | shares 3,457  
Stock options granted (in shares) | shares 492  
Stock options exercised (in shares) | shares (378)  
Stock options forfeited or canceled (in shares) | shares (71)  
Balance at the end of the period (in shares) | shares 3,500 3,457
Weighted Average Exercise Price    
Balance at the beginning of the period (in usd per share) | $ / shares $ 44.71  
Stock options granted (in usd per share) | $ / shares 116.56  
Stock options exercised (in usd per share) | $ / shares 32.37  
Stock options forfeited or canceled (in usd per share) | $ / shares 119.08  
Balance at the end of the period (in usd per share) | $ / shares $ 54.63 $ 44.71
Weighted Average Remaining Contractual Term    
Weighted average remaining contractual term 5 years 4 years 4 months 24 days
Aggregate Intrinsic Value    
Aggregate intrinsic value, options | $ $ 119,138 $ 222,460
Restricted stock units    
Outstanding RSUs    
Balance at the beginning of the period (in shares) | shares 4,402  
RSUs granted (in shares) | shares 3,634  
RSUs vested (in shares) | shares (958)  
RSUs forfeited or canceled (in shares) | shares (619)  
Balance at the end of the period (in shares) | shares 6,459 4,402
Weighted Average Grant Date Fair Value    
Balance at the beginning of the period (in usd per share) | $ / shares $ 113.97  
Weighted average grant date fair value, RSUs granted (in usd per share) | $ / shares 106.86  
Weighted average grant date fair value, RSUs vested (in usd per share) | $ / shares 103.15  
Weighted average grant date fair value, RSUs forfeited or canceled (in usd per share) | $ / shares 112.60  
Balance at the end of the period (in usd per share) | $ / shares $ 111.71 $ 113.97
v3.22.2
Deferred Revenue and Performance Obligations - Schedule of Changes in Balance of Deferred Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Change in Balances of Deferred Revenue [Roll Forward]        
Balance, beginning of period $ 526,520 $ 396,522 $ 517,210 $ 383,358
Billings 450,887 364,157 848,524 675,369
Balance, end of period 570,199 442,463 570,199 442,463
Subscription and Services        
Change in Balances of Deferred Revenue [Roll Forward]        
Revenue recognized (382,250) (302,014) (746,626) (584,853)
Other Revenue        
Change in Balances of Deferred Revenue [Roll Forward]        
Revenue recognized $ (24,958) $ (16,202) $ (48,909) $ (31,411)
v3.22.2
Deferred Revenue and Performance Obligations - Performance Obligations (Details) - USD ($)
$ in Millions
Jun. 30, 2022
Dec. 31, 2021
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Performance obligations expected to be satisfied $ 1,406  
Prepaid Expenses and Other Current Assets    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Commodity contract asset, current 3 $ 4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Performance obligations expected to be satisfied $ 951  
Performance obligations expected to be satisfied, expected timing 12 months  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | Minimum    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Performance obligations expected to be satisfied, expected timing 13 months  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | Maximum    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Performance obligations expected to be satisfied, expected timing 36 months  
v3.22.2
Net Loss Per Share - Computation of Basic and Diluted Net Loss per Share of Common Stock (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Earnings Per Share [Abstract]        
Net loss $ (95,082) $ (58,407) $ (162,028) $ (107,372)
Weighted-average shares used to compute net loss per share, basic (in shares) 122,841 119,050 122,404 118,484
Weighted-average shares used to compute net loss per share, diluted (in shares) 122,841 119,050 122,404 118,484
Net loss per share, basic (in usd per share) $ (0.77) $ (0.49) $ (1.32) $ (0.91)
Net loss per share, diluted (in usd per share) $ (0.77) $ (0.49) $ (1.32) $ (0.91)
v3.22.2
Net Loss Per Share - Schedule of Anti-Dilutive Securities Excluded from the Diluted per Share Calculation (Details) - shares
shares in Thousands
 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share amount (in shares) 23,151 12,553
Shares subject to outstanding common stock options and employee stock purchase plan    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share amount (in shares) 3,623 4,013
RSUs and PRSUs    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share amount (in shares) 6,589 4,801
Shares related to convertible senior notes    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share amount (in shares) 12,939 3,739
v3.22.2
Net Loss Per Share - Narrative (Details) - $ / shares
shares in Millions
 6 Months Ended
Jun. 30, 2022
Jun. 30, 2020
Mar. 31, 2018
Convertible senior notes due 2023      
Debt Instrument [Line Items]      
Potential dilution based on initial conversion price (in shares) 2.4    
Convertible senior notes due 2025      
Debt Instrument [Line Items]      
Potential dilution based on initial conversion price (in shares) 10.6    
Convertible debt | Convertible senior notes due 2023      
Debt Instrument [Line Items]      
Conversion price (in usd per share)     $ 63.07
Convertible debt | Convertible senior notes due 2025      
Debt Instrument [Line Items]      
Conversion price (in usd per share)   $ 108.76  
v3.22.2
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Income Tax Disclosure [Abstract]        
Income tax expense $ 1,564 $ 2,355 $ 5,601 $ 4,709
v3.22.2
Geographic Information - Narrative (Details)
 6 Months Ended
Jun. 30, 2022
segment
Segment Reporting [Abstract]  
Number of reportable segments 1
v3.22.2
Geographic Information - Schedule of Revenue by Geographic Areas (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Revenues From External Customers And Long Lived Assets [Line Items]        
Revenue $ 407,208 $ 318,216 $ 795,535 $ 616,264
United States        
Revenues From External Customers And Long Lived Assets [Line Items]        
Revenue 210,310 162,388 407,448 315,212
EMEA        
Revenues From External Customers And Long Lived Assets [Line Items]        
Revenue 116,212 93,017 228,335 179,434
APAC        
Revenues From External Customers And Long Lived Assets [Line Items]        
Revenue 40,662 31,840 80,550 62,970
Other        
Revenues From External Customers And Long Lived Assets [Line Items]        
Revenue $ 40,024 $ 30,971 $ 79,202 $ 58,648
v3.22.2
Geographic Information - Schedule of Long-Lived Assets by Geographic Areas (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets $ 96,735 $ 127,741
United States    
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets 33,792 59,776
EMEA    
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets 40,912 42,989
Republic of Ireland    
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets 28,647 34,728
Other EMEA    
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets 12,265 8,261
APAC    
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets 14,531 19,093
Singapore    
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets 9,673 13,145
Other APAC    
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets 4,858 5,948
Other    
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets $ 7,500 $ 5,883
v3.22.2
Agreement and Plan of Merger (Details) - USD ($)
$ / shares in Units, $ in Millions
Jun. 24, 2022
Jun. 30, 2022
Dec. 31, 2021
Business Acquisition [Line Items]      
Common stock, par value (in usd per share)   $ 0.01 $ 0.01
Potential termination fee $ 254    
Potential reserve termination fee $ 610    
Zoro BidCo, Inc and Zoro Merger Sub, Inc      
Business Acquisition [Line Items]      
Common stock, par value (in usd per share) $ 0.01    
Business acquisition, share price (in usd per share) $ 77.50