ZENDESK, INC., 10-Q filed on 5/3/2021
Quarterly Report
v3.21.1
Cover Page - shares
 3 Months Ended
Mar. 31, 2021
Apr. 30, 2021
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2021  
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 $0.01 per share  
Trading Symbol ZEN  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Smaller Reporting Company false  
Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   118,649,749
Amendment Flag false  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q1  
Entity Central Index Key 0001463172  
Current Fiscal Year End Date --12-31  
v3.21.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Current assets:    
Cash and cash equivalents $ 378,363 $ 405,430
Marketable securities 575,993 565,593
Accounts receivable, net of allowance for credit losses of $7,316 and $5,787 as of March 31, 2021 and December 31, 2020, respectively 178,156 199,243
Deferred costs 55,506 51,878
Prepaid expenses and other current assets 50,642 53,829
Total current assets 1,238,660 1,275,973
Marketable securities, noncurrent 485,285 428,678
Property and equipment, net 94,611 94,208
Deferred costs, noncurrent 55,946 52,731
Lease right-of-use assets 80,963 84,013
Goodwill and intangible assets, net 194,357 196,218
Other assets 25,286 25,458
Total assets 2,175,108 2,157,279
Current liabilities:    
Accounts payable 21,282 15,428
Accrued liabilities 37,943 38,921
Accrued compensation and related benefits 97,922 103,437
Deferred revenue 393,457 378,935
Lease liabilities 24,734 23,533
Current portion of convertible senior notes, net 134,187 132,388
Total current liabilities 709,525 692,642
Convertible senior notes, net 946,302 935,576
Deferred revenue, noncurrent 3,065 4,423
Lease liabilities, noncurrent 78,141 85,275
Other liabilities 7,832 7,532
Total liabilities 1,744,865 1,725,448
Commitments and contingencies (Note 8)
Stockholders’ equity:    
Preferred stock 0 0
Common stock 1,183 1,174
Additional paid-in capital 1,399,014 1,344,337
Accumulated other comprehensive (loss) income (4,329) 3,203
Accumulated deficit (965,625) (916,883)
Total stockholders’ equity 430,243 431,831
Total liabilities and stockholders’ equity $ 2,175,108 $ 2,157,279
v3.21.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 7,316 $ 5,787
v3.21.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Income Statement [Abstract]    
Revenue $ 298,048 $ 237,475
Cost of revenue [1] 60,894 59,702
Gross profit 237,154 177,773
Operating expenses:    
Research and development [1] 73,783 60,421
Sales and marketing [1] 157,518 124,310
General and administrative [1] 43,133 34,326
Total operating expenses [1] 274,434 219,057
Operating loss (37,280) (41,284)
Other income (expense), net:    
Interest expense (14,415) (6,887)
Interest and other income (expense), net 5,084 6,904
Total other income (expense), net (9,331) 17
Loss before provision for income taxes (46,611) (41,267)
Provision for income taxes 2,354 1,516
Net loss $ (48,965) $ (42,783)
Net loss per share, basic and diluted (in usd per share) $ (0.42) $ (0.38)
Weighted-average shares used to compute net loss per share, basic and diluted (in shares) 117,912 113,538
[1] Includes share-based compensation expense as follows:
 
 Three Months Ended
March 31,
20212020
Cost of revenue$4,486 $5,059 
Research and development15,673 12,626 
Sales and marketing23,232 16,559 
General and administrative8,983 7,838 
v3.21.1
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Share-based compensation $ 52,374 $ 42,082
Cost of revenue    
Share-based compensation 4,486 5,059
Research and development    
Share-based compensation 15,673 12,626
Sales and marketing    
Share-based compensation 23,232 16,559
General and administrative    
Share-based compensation $ 8,983 $ 7,838
v3.21.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Statement of Comprehensive Income [Abstract]    
Net loss $ (48,965) $ (42,783)
Other comprehensive loss:    
Net unrealized loss on available-for-sale investments (1,975) (3,395)
Net unrealized loss on derivative instruments (5,557) (7,348)
Other comprehensive loss (7,532) (10,743)
Comprehensive loss $ (56,497) $ (53,526)
v3.21.1
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Accumulated Deficit
Balances at beginning of period (in shares) at Dec. 31, 2019   113,081      
Balances at beginning of period at Dec. 31, 2019 $ 457,984 $ 1,130 $ 1,155,044 $ 591 $ (698,781)
Increase (Decrease) in Stockholders' Equity [Roll Forward]          
Issuance of common stock upon exercise of stock options (in shares)   175      
Issuance of common stock upon exercise of stock options 4,001 $ 2 3,999    
Issuance of common stock for settlement of RSUs and PRSUs (in shares)   720      
Issuance of common stock for settlement of RSUs and PRSUs (1,897) $ 7 (1,904)    
Share-based compensation 43,382   43,382    
Other comprehensive loss (10,743)     (10,743)  
Net loss (42,783)       (42,783)
Balances at end of period (in shares) at Mar. 31, 2020   113,976      
Balances at end of period at Mar. 31, 2020 449,943 $ 1,139 1,200,521 (10,152) (741,565)
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) 208 208      
Issuance of common stock upon exercise of stock options $ 3,931 $ 2 3,929    
Issuance of common stock for settlement of RSUs and PRSUs (in shares)   661      
Issuance of common stock for settlement of RSUs and PRSUs (2,799) $ 7 (2,806)    
Share-based compensation 53,554   53,554    
Other comprehensive loss (7,532)     (7,532)  
Net loss (48,965)       (48,965)
Other 223       223
Balances at end of period (in shares) at Mar. 31, 2021   118,358      
Balances at end of period at Mar. 31, 2021 $ 430,243 $ 1,183 $ 1,399,014 $ (4,329) $ (965,625)
v3.21.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Cash flows from operating activities    
Net loss $ (48,965) $ (42,783)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities    
Depreciation and amortization 9,515 11,240
Share-based compensation 52,374 42,082
Amortization of deferred costs 14,757 9,965
Amortization of debt discount and issuance costs 12,525 6,549
Allowance for credit losses on accounts receivable 3,168 2,265
Other, net (965) (204)
Changes in operating assets and liabilities:    
Accounts receivable 16,370 26,023
Prepaid expenses and other current assets (467) 1,743
Deferred costs (20,984) (13,448)
Lease right-of-use assets 4,464 4,975
Other assets and liabilities 316 (232)
Accounts payable 5,797 (10,323)
Accrued liabilities (2,078) (662)
Accrued compensation and related benefits (20,113) (9,541)
Deferred revenue 13,419 (21,464)
Lease liabilities (5,538) (8,794)
Net cash provided by (used in) operating activities 33,595 (2,609)
Cash flows from investing activities    
Purchases of property and equipment (3,061) (9,938)
Internal-use software development costs (4,468) (3,058)
Purchases of marketable securities (305,310) (121,430)
Proceeds from maturities of marketable securities 198,564 74,231
Proceeds from sales of marketable securities 36,599 54,784
Purchases of strategic investments 0 (1,500)
Net cash used in investing activities (77,676) (6,911)
Cash flows from financing activities    
Proceeds from exercises of employee stock options 3,931 4,001
Proceeds from employee stock purchase plan 15,184 10,115
Taxes paid related to net share settlement of share-based awards (2,800) (1,897)
Net cash provided by financing activities 16,315 12,219
Effect of exchange rate changes on cash, cash equivalents and restricted cash (8) 16
Net (decrease) increase in cash, cash equivalents and restricted cash (27,774) 2,715
Cash, cash equivalents and restricted cash at beginning of period 407,859 199,897
Cash, cash equivalents and restricted cash at end of period 380,085 202,612
Reconciliation of cash, cash equivalents and restricted cash to condensed consolidated balance sheets    
Total cash, cash equivalents and restricted cash 380,085 202,612
Supplemental cash flow data    
Cash paid for interest 186 719
Cash paid for taxes 2,416 657
Non-cash investing and financing activities    
Balance of property and equipment in accounts payable and accrued expenses 1,078 4,801
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 562 850
Deferred costs    
Non-cash investing and financing activities    
Share-based compensation capitalized in internal-use software development costs and in deferred costs $ 616 $ 404
v3.21.1
Overview and Basis of Presentation
 3 Months Ended
Mar. 31, 2021
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.
We are a software development company that provides software as a service, or SaaS, solutions that are intended to help organizations and their customers build better experiences. Our customer experience solutions are built upon a modern architecture that enables us and our customers to rapidly innovate, adapt our technology in novel ways, and easily integrate with other products and applications. With our origins in customer service, we have evolved our 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” in these notes refer to Zendesk, Inc. and its subsidiaries on a consolidated basis.
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, 2020, filed with the SEC on February 12, 2021. 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.
The consolidated balance sheet as of December 31, 2020 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, 2021.
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.

The effects of the COVID-19 pandemic continue to generate higher levels of judgment related to our estimates and assumptions concerning variable consideration for revenue recognition, the estimate of credit losses for accounts receivable, and the valuation of strategic investments. For example, the uncertainty around our customers who have faced continued cash flow pressure and decreased demand for their products and services has had a variable impact on our revenue from variable consideration and the allowance for credit losses.

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 March 31, 2021 and December 31, 2020, 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 months ended March 31, 2021 or 2020.
Recently Issued Accounting Pronouncements
In August 2020, the Financial Accounting Standards Board, or FASB, issued ASU 2020-06, regarding 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. The guidance is effective for annual reporting periods beginning after December 15, 2021, including interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements.
v3.21.1
Financial Instruments
 3 Months Ended
Mar. 31, 2021
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
March 31, 2021
Level 1Level 2Total
Description   
U.S. Treasury securities$— $445,563 $445,563 
Corporate bonds— 387,069 387,069 
Money market funds220,842 — 220,842 
Asset-backed securities— 107,239 107,239 
Agency securities— 95,543 95,543 
Commercial paper— 22,474 22,474 
Certificates of deposit and time deposits— 10,357 10,357 
Total$220,842 $1,068,245 $1,289,087 
Included in cash and cash equivalents  $227,809 
Included in marketable securities  $1,061,278 
 Fair Value Measurement at
December 31, 2020
Level 1Level 2Total
Description   
U.S. Treasury securities$— $431,087 $431,087 
Corporate bonds— 366,638 366,638 
Money market funds162,156 — 162,156 
Asset-backed securities— 101,239 101,239 
Agency securities— 80,394 80,394 
Commercial paper— 36,954 36,954 
Certificates of deposit and time deposits— 10,657 10,657 
Total$162,156 $1,026,969 $1,189,125 
Included in cash and cash equivalents  $194,854 
Included in marketable securities  $994,271 
 
As of March 31, 2021 and December 31, 2020, there were no securities within Level 3 of the fair value hierarchy. There were no transfers between fair value measurement levels during the three months ended March 31, 2021 or 2020.
As of March 31, 2021, gross unrealized gains and losses for marketable securities were $4 million and not material respectively. The aggregate amortized cost basis for cash equivalents and marketable securities was $1,285 million and excludes accrued interest of $3 million. The aggregate fair value of securities with unrealized losses was $230 million.
As of December 31, 2020, gross unrealized gains and losses for marketable securities were $6 million and not material, respectively. The aggregate amortized cost basis for cash equivalents and marketable securities was $1,183 million and excludes accrued interest of $3 million. The aggregate fair value of securities with unrealized losses was $107 million.
As of March 31, 2021 and December 31, 2020, there were no securities that were in an unrealized loss position for more than twelve months. 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):
 
 March 31,
2021		December 31,
2020
Due in one year or less$575,993 $565,593 
Due after one year and within five years485,285 428,678 
Total$1,061,278 $994,271 
 
As of March 31, 2021 and December 31, 2020, the balance of strategic investments without readily determinable fair values was $11 million. 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 March 31, 2021, the balance of AOCI included an unrecognized net loss of $4 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 $4 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):
 
 March 31, 2021
Asset DerivativesLiability Derivatives
Derivative InstrumentBalance Sheet LocationFair Value
(Level 2)		Balance Sheet LocationFair Value
(Level 2)
Foreign currency forward contractsOther current assets$4,423 Accrued liabilities$6,759 
Total$4,423  $6,759 
 December 31, 2020
Asset DerivativesLiability Derivatives
Derivative InstrumentBalance Sheet LocationFair Value
(Level 2)		Balance Sheet LocationFair Value
(Level 2)
Foreign currency forward contractsOther current assets$7,922 Accrued liabilities$5,768 
Total $7,922  $5,768 
 
Our foreign currency forward contracts had a total notional value of $396 million and $345 million as of March 31, 2021 and December 31, 2020, 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 months ended March 31, 2021 and 2020 (in thousands):
 
Gain (Loss) Reclassified from AOCI into Earnings
Three Months Ended March 31,
Classification20212020
Revenue$(708)$397 
Cost of revenue490 (321)
Research and development515 (281)
Sales and marketing1,029 (562)
General and administrative417 (174)
 Total$1,743 $(941)
The loss recognized in AOCI related to foreign currency forward contracts was $4 million and $8 million for the three months ended March 31, 2021 and 2020, 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 March 31, 2021, the fair values of our 0.25% convertible senior notes due 2023 and our 0.625% convertible senior notes due 2025 were $316 million and $1,600 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 $132.62 on the last trading day of the quarter, the if-converted values of the 2023 and 2025 convertible senior notes exceeded the remaining principal amounts by $165 million and $252 million, respectively, as of March 31, 2021.
v3.21.1
Costs to Obtain Customer Contracts
 3 Months Ended
Mar. 31, 2021
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 $111 million and $105 million as of March 31, 2021 and December 31, 2020, respectively. Amortization expense for deferred costs was $15 million and $10 million for the three months ended March 31, 2021 and 2020, 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 March 31,
20212020
Balance, beginning of period$383,358 $323,962 
Billings311,212 216,856 
Subscription and services revenue(282,839)(224,059)
Other revenue*(15,209)(13,416)
Balance, end of period$396,522 $303,343 
*Other revenue primarily includes implementation and training services, Talk usage, and amounts from contract assets.
For the three months ended March 31, 2021 and 2020, the majority of revenue recognized was from the deferred revenue balances at the beginning of each period.
The aggregate balance of remaining performance obligations as of March 31, 2021 was $1,002 million. We expect to recognize $680 million of the balance as revenue in the next 12 months and the remainder thereafter. 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.
v3.21.1
Property and Equipment
 3 Months Ended
Mar. 31, 2021
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment, net consists of the following (in thousands): 
 March 31,
2021		December 31,
2020
Leasehold improvements$91,242 $91,205 
Capitalized internal-use software53,904 48,730 
Computer equipment and licensed software and patents32,543 30,725 
Furniture and fixtures13,890 13,759 
Construction in progress13,297 13,222 
Total204,876 197,641 
Less: accumulated depreciation and amortization(110,265)(103,433)
Property and equipment, net$94,611 $94,208 
 
Depreciation expense was $6 million and $7 million for the three months ended March 31, 2021 and 2020, respectively.
Amortization expense of capitalized internal-use software was $2 million for each of the three months ended March 31, 2021 and 2020. The carrying values of capitalized internal-use software as of March 31, 2021 and December 31, 2020 were $35 million and $32 million, respectively, including $12 million and $13 million in construction in progress, respectively.
v3.21.1
Leases
 3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Leases Leases
The following tables present information about leases on our consolidated balance sheets (in thousands):
March 31, 2021December 31, 2020
Assets
Lease right-of-use assets$80,963 $84,013 
Liabilities
Lease liabilities24,734 23,533 
Lease liabilities, noncurrent78,141 85,275 

As of March 31, 2021, the weighted average remaining lease term was 5.8 years and the weighted average discount rate was 4.7%.
The following table presents information about leases on our consolidated statements of operations (in thousands):
Three Months Ended March 31,
20212020
Operating lease expense$5,622 $6,343 
Short-term lease expense128 185 
Variable lease expense1,218 1,543 
Sublease income(440)(464)

The following table presents supplemental cash flow information about our leases (in thousands):
Three Months Ended March 31,
20212020
Cash paid for amounts included in the measurement of lease liabilities$6,953 $9,552 
Operating lease assets obtained in exchange for new lease liabilities1,397 11,316 

In the fourth quarter of 2020, we determined that we would no longer occupy the leased premises located at 1019 Market Street and 988 Market Street, San Francisco, California 94103 and recorded an aggregate impairment charge of $15 million related to lease right-of-use assets and leasehold improvements. In April 2021, we executed a termination agreement for the leased premises located at 1019 Market Street, which includes a termination payment of $7 million to be paid in the second quarter of 2021.
v3.21.1
Goodwill and Acquired Intangible Assets
 3 Months Ended
Mar. 31, 2021
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 March 31, 2021
CostAccumulated
Amortization		NetWeighted Average Remaining Useful Life
   (In years)
Developed technology$30,200 $(13,539)$16,661 3.8
Customer relationships14,710 (6,718)7,992 3.8
Backlog3,200 (3,158)42 0.1
 $48,110 $(23,415)$24,695  
 
 As of December 31, 2020
CostAccumulated
Amortization		NetWeighted Average Remaining Useful Life
   (In years)
Developed technology$30,200 $(12,445)$17,755 4.1
Customer relationships14,710 (6,076)8,634 4.0
Backlog3,200 (3,033)167 0.3
 $48,110 $(21,554)$26,556  
 
Amortization expense of acquired intangible assets was $2 million and $3 million for the three months ended March 31, 2021 and 2020, respectively.
Estimated future amortization expense as of March 31, 2021 is as follows (in thousands):
Remainder of 2021$5,272 
20226,942 
20236,247 
20244,615 
2025972 
Thereafter647 
$24,695 
 
As of March 31, 2021 and December 31, 2020, the carrying amount of goodwill was $170 million. There was no change to the carrying amount of goodwill for the three months ended March 31, 2021.
v3.21.1
Convertible Senior Notes
 3 Months Ended
Mar. 31, 2021
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. It is our current intent and policy to settle conversions through combination settlement with a specified dollar amount of $1,000 per $1,000 principal amount of 2025 Notes.
During the three months ended March 31, 2021, the conditions allowing holders of the 2025 Notes to convert were not met.

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.

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 and is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount is amortized to interest expense over the contractual term of the 2025 Notes at an effective interest rate of 5.00%.

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 will be 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.

The net carrying amount of the liability component of the 2025 Notes is as follows (in thousands):
March 31,
2021		December 31,
2020
Principal$1,150,000 $1,150,000 
Unamortized Debt Discount(188,828)(198,857)
Unamortized issuance costs(14,870)(15,567)
Net carrying amount$946,302 $935,576 

The net carrying amount of the equity component of the 2025 Notes is as follows (in thousands):

March 31,
2021		December 31,
2020
Debt Discount for Conversion Option$220,061 $220,061 
Issuance costs(4,035)(4,035)
Net carrying amount$216,026 $216,026 


The interest expense related to the 2025 Notes is as follows (in thousands):
Three Months Ended March 31,
2021
Contractual interest expense$1,797 
Amortization of Debt Discount10,029 
Amortization of issuance costs697 
Total interest expense$12,523 
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 represents a source of future taxable income which supports realization of deferred tax assets. As we continue to maintain a full valuation allowance against its deferred tax assets, this additional source of income resulted in the release of a portion of its valuation allowance. Consistent with the adoption of ASU 2019-12, the release of the valuation allowance of $51 million was recorded as an adjustment 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 (the “2023 Notes Partial Repurchase”). 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 is 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 March 31, 2021, $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. It is our current intent and policy to settle conversions through combination settlement with a specified dollar amount of $1,000 per $1,000 principal amount of 2023 Notes.

During the three months ended March 31, 2021, the conditions allowing holders of the 2023 Notes to convert were met. The 2023 Notes are therefore convertible during the three months ending June 30, 2021, and are classified as a current liability as of March 31, 2021. To date, we have received one request for conversion for an immaterial amount of 2023 Notes.

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 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 and is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount is amortized to interest expense over the contractual term of the 2023 Notes at an effective interest rate of 5.26%.

In accounting for the debt issuance costs 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 liability component are amortized to interest expense using the effective interest method over the contractual term of the 2023 Notes. Issuance costs attributable to the equity component were netted with the equity component in additional paid-in capital.

The net carrying amount of the liability component of the 2023 Notes is as follows (in thousands):
March 31,
2021		December 31,
2020
Principal$149,194 $149,194 
Unamortized Debt Discount(13,738)(15,394)
Unamortized issuance costs(1,269)(1,412)
Net carrying amount$134,187 $132,388 

The net carrying amount of the equity component of the 2023 Notes is as follows (in thousands):
March 31,
2021		December 31,
2020
Debt Discount for Conversion Option$32,427 $32,427 
Issuance costs(765)(765)
Net carrying amount$31,662 $31,662 

The interest expense related to the 2023 Notes is as follows (in thousands):
Three Months Ended March 31,
20212020
Contractual interest expense$93 $359 
Amortization of Debt Discount1,656 6,057 
Amortization of issuance costs143 492 
Total interest expense$1,892 $6,908 

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 March 31, 2021, there remains outstanding 2023 Capped Calls giving the Company the option to purchase approximately 2.4 million shares (subject to adjustment).

The net impact to our stockholders’ equity, included in additional paid-in capital, of the above components of the 2023 Notes is as follows (in thousands):
At Issuance
Conversion Option$124,976 
Purchase of Capped Calls (63,940)
Issuance Costs(2,948)
Net deferred tax liability (13,784)
Total$44,304 
v3.21.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2021
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, 2020.

In April 2021, we renewed an agreement with a cloud services provider for which we have a total obligation of $64 million over a three-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, 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 has 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 U.S. Court of Appeals for the Ninth Circuit.

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 alleges breaches of fiduciary duty against all defendants, and an insider trading claim and violations of Section 10(b) of the Securities Exchange Act of 1934 against the officer defendants, purportedly on behalf of the Company itself. The claims are 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. The derivative action had been stayed pending resolution of the class action. That stay was automatically lifted on March 23, 2021. Zendesk and the other defendants have until June 21, 2021 to respond to the complaint.

It is not possible for the Company to quantify the extent of potential liability to the individual defendants, if any. Management believes that the lawsuits lack merit and intends to vigorously defend the actions. We cannot predict the outcome of or estimate the possible loss or range of loss from the above described matter.

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
v3.21.1
Common Stock and Stockholders' Equity
 3 Months Ended
Mar. 31, 2021
Equity [Abstract]  
Common Stock and Stockholders' Equity Common Stock and Stockholders’ Equity
Common Stock
As of March 31, 2021 and December 31, 2020, there were 400 million shares of common stock authorized for issuance with a par value of $0.01 per share and 118.4 million and 117.5 million shares were issued and outstanding as of March 31, 2021 and December 31, 2020, respectively.
Preferred Stock
As of March 31, 2021 and December 31, 2020, 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, or 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 months ended March 31, 2021 and March 31, 2020, no 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, 2021. As of March 31, 2021, 6.0 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, or 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, or 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 5.9 million shares on January 1, 2021. As of March 31, 2021, we had 19.2 million shares of common stock available for future grants under the 2014 Plan.
On May 6, 2016, the compensation committee of our board of directors granted equity awards representing 1.2 million shares of common stock. These awards were granted outside of the 2014 Plan pursuant to an exemption provided for “employment inducement awards” within the meaning of Section 303A.08 of the New York Stock Exchange Listed Company Manual and accordingly did not require approval from our stockholders.
A summary of restricted stock unit (“RSU”) activity for the three months ended March 31, 2021 is as follows (in thousands, except per share information):

Restricted Stock Units
Number of SharesWeighted Average Grant Date Fair Value
Unvested — January 1, 20215,141 $75.93 
Granted1,081 146.79 
Vested(624)59.72 
Forfeited or canceled(228)77.55 
Unvested — March 31, 20215,370 $92.00 

The total fair value of RSUs vested during the three months ended March 31, 2021 and 2020 was $91 million and $55 million, respectively. The fair value of RSUs vested represents market value on the vesting date.
A summary of stock option activity for the three months ended March 31, 2021 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, 20214,235 $31.42 5.2$473,358 
Granted276 154.05 
Exercised(208)18.91 
Forfeited or canceled(13)123.26 
Outstanding — March 31, 20214,290 $39.65 5.3$405,061 
 
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 three months ended March 31, 2021 and 2020 was $26 million and $10 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 three months ended March 31, 2021 and 2020 was $54.55 and $31.63, respectively.
As of March 31, 2021, we had a total of $509 million in future expense related to all equity awards to be recognized over a weighted average period of 2.9 years.
Performance Restricted Stock Units
In 2018, performance-based restricted stock units, or PRSUs, representing 0.2 million shares of common stock were granted in connection with the acquisition of FutureSimple Inc. The PRSUs vested in four semi-annual tranches through March 2021 and were subject to service and performance conditions. For each of the three months ended March 31, 2021 and March 31, 2020, we recorded $1 million of share-based compensation expense related to the PRSUs. For the three months ended March 31, 2021 and March 31, 2020, 37 thousand and 26 thousand PRSUs were vested, respectively.
v3.21.1
Deferred Revenue and Performance Obligations
 3 Months Ended
Mar. 31, 2021
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 $111 million and $105 million as of March 31, 2021 and December 31, 2020, respectively. Amortization expense for deferred costs was $15 million and $10 million for the three months ended March 31, 2021 and 2020, 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 March 31,
20212020
Balance, beginning of period$383,358 $323,962 
Billings311,212 216,856 
Subscription and services revenue(282,839)(224,059)
Other revenue*(15,209)(13,416)
Balance, end of period$396,522 $303,343 
*Other revenue primarily includes implementation and training services, Talk usage, and amounts from contract assets.
For the three months ended March 31, 2021 and 2020, the majority of revenue recognized was from the deferred revenue balances at the beginning of each period.
The aggregate balance of remaining performance obligations as of March 31, 2021 was $1,002 million. We expect to recognize $680 million of the balance as revenue in the next 12 months and the remainder thereafter. The aggregate balance of remaining performance obligations represents contracted revenue that has not yet been recognized, including contracted revenue from renewals, and does not include contract amounts which are cancellable by the customer and amounts associated with optional renewal periods.
v3.21.1
Net Loss Per Share
 3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Net Loss Per Share Net Loss Per Share
Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potential shares of common stock, including those related to outstanding share-based awards and our convertible senior notes, to the extent dilutive. Basic and diluted net loss per share were the same for each period presented as the inclusion of all potential common stock outstanding would have been anti-dilutive.
The following table presents the calculation of basic and diluted net loss per share for the periods presented (in thousands, except per share data):
 Three Months Ended
March 31,
20212020
Net loss$(48,965)$(42,783)
Weighted-average shares used to compute basic and diluted net loss per share117,912 113,538 
Net loss per share, basic and diluted$(0.42)$(0.38)
 
The anti-dilutive securities excluded from the shares used to calculate diluted net loss per share are as follows (in thousands):
 As of March 31,
20212020
Shares subject to outstanding common stock options and employee stock purchase plan4,601 5,429 
Restricted stock units5,370 5,846 
Shares related to convertible senior notes3,871 1,749 
 13,842 13,024 

The shares related to convertible senior notes in the table above are calculated based on the average market price of our common stock for the three months ended March 31, 2021 and 2020, respectively.
We expect to settle the principal amount of both the 2023 Notes and 2025 Notes in cash and therefore use the treasury stock method for calculating any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread has a dilutive impact on diluted net income per share when the average market price of our common stock for a given reporting period exceeds the initial conversion prices of $63.07 and $108.76 per share for the 2023 Notes and 2025 Notes, respectively. 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.
v3.21.1
Income Taxes
 3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income TaxesWe reported income tax expense of $2 million for each of the three months ended March 31, 2021 and March 31, 2020, The effective tax rate for each period differs from the statutory rate primarily as a result of not recognizing a deferred tax asset for U.S. losses due to having a full valuation allowance against U.S. deferred tax assets.
v3.21.1
Geographic Information
 3 Months Ended
Mar. 31, 2021
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
March 31,
20212020
United States$152,824 $124,037 
EMEA86,417 67,919 
APAC31,130 25,575 
Other27,677 19,944 
Total$298,048 $237,475 
Long-Lived Assets
The following table presents our long-lived assets by geographic area (in thousands):
 
As of
March 31, 2021		As of
December 31, 2020
United States$72,330 $76,383 
EMEA:
Republic of Ireland36,974 38,010 
Other EMEA5,743 5,784 
Total EMEA42,717 43,794 
APAC:
Singapore17,942 19,560 
Other APAC7,138 6,466 
Total APAC25,080 26,026 
Other465 344 
Total$140,592 $146,547 
 
The table above includes property and equipment and lease right-of-use assets and excludes capitalized internal-use software and intangible assets.
v3.21.1
Overview and Basis of Presentation (Policies)
 3 Months Ended
Mar. 31, 2021
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, 2020, filed with the SEC on February 12, 2021. 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.
The consolidated balance sheet as of December 31, 2020 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, 2021.
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.

The effects of the COVID-19 pandemic continue to generate higher levels of judgment related to our estimates and assumptions concerning variable consideration for revenue recognition, the estimate of credit losses for accounts receivable, and the valuation of strategic investments. For example, the uncertainty around our customers who have faced continued cash flow pressure and decreased demand for their products and services has had a variable impact on our revenue from variable consideration and the allowance for credit losses.

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 March 31, 2021 and December 31, 2020, 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 months ended March 31, 2021 or 2020.
Recently Issued Accounting Pronouncements
Recently Issued Accounting Pronouncements
In August 2020, the Financial Accounting Standards Board, or FASB, issued ASU 2020-06, regarding 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. The guidance is effective for annual reporting periods beginning after December 15, 2021, including interim periods within that reporting period. Early adoption is permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements.
v3.21.1
Financial Instruments (Tables)
 3 Months Ended
Mar. 31, 2021
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
March 31, 2021
Level 1Level 2Total
Description   
U.S. Treasury securities$— $445,563 $445,563 
Corporate bonds— 387,069 387,069 
Money market funds220,842 — 220,842 
Asset-backed securities— 107,239 107,239 
Agency securities— 95,543 95,543 
Commercial paper— 22,474 22,474 
Certificates of deposit and time deposits— 10,357 10,357 
Total$220,842 $1,068,245 $1,289,087 
Included in cash and cash equivalents  $227,809 
Included in marketable securities  $1,061,278 
 Fair Value Measurement at
December 31, 2020
Level 1Level 2Total
Description   
U.S. Treasury securities$— $431,087 $431,087 
Corporate bonds— 366,638 366,638 
Money market funds162,156 — 162,156 
Asset-backed securities— 101,239 101,239 
Agency securities— 80,394 80,394 
Commercial paper— 36,954 36,954 
Certificates of deposit and time deposits— 10,657 10,657 
Total$162,156 $1,026,969 $1,189,125 
Included in cash and cash equivalents  $194,854 
Included in marketable securities  $994,271 
Schedule of Marketable Securities Classified by Contractual Maturity
The following table classifies our marketable securities by contractual maturity (in thousands):
 
 March 31,
2021		December 31,
2020
Due in one year or less$575,993 $565,593 
Due after one year and within five years485,285 428,678 
Total$1,061,278 $994,271 
Schedule of Derivative Instruments on Consolidated Balance Sheets
The following tables present information about our derivative instruments on our consolidated balance sheets (in thousands):
 
 March 31, 2021
Asset DerivativesLiability Derivatives
Derivative InstrumentBalance Sheet LocationFair Value
(Level 2)		Balance Sheet LocationFair Value
(Level 2)
Foreign currency forward contractsOther current assets$4,423 Accrued liabilities$6,759 
Total$4,423  $6,759 
 December 31, 2020
Asset DerivativesLiability Derivatives
Derivative InstrumentBalance Sheet LocationFair Value
(Level 2)		Balance Sheet LocationFair Value
(Level 2)
Foreign currency forward contractsOther current assets$7,922 Accrued liabilities$5,768 
Total $7,922  $5,768 
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 months ended March 31, 2021 and 2020 (in thousands):
 
Gain (Loss) Reclassified from AOCI into Earnings
Three Months Ended March 31,
Classification20212020
Revenue$(708)$397 
Cost of revenue490 (321)
Research and development515 (281)
Sales and marketing1,029 (562)
General and administrative417 (174)
 Total$1,743 $(941)
v3.21.1
Property and Equipment (Tables)
 3 Months Ended
Mar. 31, 2021
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment, Net
Property and equipment, net consists of the following (in thousands): 
 March 31,
2021		December 31,
2020
Leasehold improvements$91,242 $91,205 
Capitalized internal-use software53,904 48,730 
Computer equipment and licensed software and patents32,543 30,725 
Furniture and fixtures13,890 13,759 
Construction in progress13,297 13,222 
Total204,876 197,641 
Less: accumulated depreciation and amortization(110,265)(103,433)
Property and equipment, net$94,611 $94,208 
v3.21.1
Leases (Tables)
 3 Months Ended
Mar. 31, 2021
Leases [Abstract]  
Schedule of Lease Impact on Balance Sheet
The following tables present information about leases on our consolidated balance sheets (in thousands):
March 31, 2021December 31, 2020
Assets
Lease right-of-use assets$80,963 $84,013 
Liabilities
Lease liabilities24,734 23,533 
Lease liabilities, noncurrent78,141 85,275 
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 March 31,
20212020
Operating lease expense$5,622 $6,343 
Short-term lease expense128 185 
Variable lease expense1,218 1,543 
Sublease income(440)(464)

The following table presents supplemental cash flow information about our leases (in thousands):
Three Months Ended March 31,
20212020
Cash paid for amounts included in the measurement of lease liabilities$6,953 $9,552 
Operating lease assets obtained in exchange for new lease liabilities1,397 11,316 
v3.21.1
Goodwill and Acquired Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2021
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 March 31, 2021
CostAccumulated
Amortization		NetWeighted Average Remaining Useful Life
   (In years)
Developed technology$30,200 $(13,539)$16,661 3.8
Customer relationships14,710 (6,718)7,992 3.8
Backlog3,200 (3,158)42 0.1
 $48,110 $(23,415)$24,695  
 
 As of December 31, 2020
CostAccumulated
Amortization		NetWeighted Average Remaining Useful Life
   (In years)
Developed technology$30,200 $(12,445)$17,755 4.1
Customer relationships14,710 (6,076)8,634 4.0
Backlog3,200 (3,033)167 0.3
 $48,110 $(21,554)$26,556  
Summary of Estimated Future Amortization Expense Estimated future amortization expense as of March 31, 2021 is as follows (in thousands):
Remainder of 2021$5,272 
20226,942 
20236,247 
20244,615 
2025972 
Thereafter647 
$24,695 
v3.21.1
Convertible Senior Notes (Tables)
 3 Months Ended
Mar. 31, 2021
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):
March 31,
2021		December 31,
2020
Principal$1,150,000 $1,150,000 
Unamortized Debt Discount(188,828)(198,857)
Unamortized issuance costs(14,870)(15,567)
Net carrying amount$946,302 $935,576 

The net carrying amount of the equity component of the 2025 Notes is as follows (in thousands):

March 31,
2021		December 31,
2020
Debt Discount for Conversion Option$220,061 $220,061 
Issuance costs(4,035)(4,035)
Net carrying amount$216,026 $216,026 
The net carrying amount of the liability component of the 2023 Notes is as follows (in thousands):
March 31,
2021		December 31,
2020
Principal$149,194 $149,194 
Unamortized Debt Discount(13,738)(15,394)
Unamortized issuance costs(1,269)(1,412)
Net carrying amount$134,187 $132,388 

The net carrying amount of the equity component of the 2023 Notes is as follows (in thousands):
March 31,
2021		December 31,
2020
Debt Discount for Conversion Option$32,427 $32,427 
Issuance costs(765)(765)
Net carrying amount$31,662 $31,662 
The net impact to our stockholders’ equity, included in additional paid-in capital, of the above components of the 2023 Notes is as follows (in thousands):
At Issuance
Conversion Option$124,976 
Purchase of Capped Calls (63,940)
Issuance Costs(2,948)
Net deferred tax liability (13,784)
Total$44,304 
Schedule of Interest Expense nterest expense related to the 2025 Notes is as follows (in thousands):
Three Months Ended March 31,
2021
Contractual interest expense$1,797 
Amortization of Debt Discount10,029 
Amortization of issuance costs697 
Total interest expense$12,523 
nterest expense related to the 2023 Notes is as follows (in thousands):
Three Months Ended March 31,
20212020
Contractual interest expense$93 $359 
Amortization of Debt Discount1,656 6,057 
Amortization of issuance costs143 492 
Total interest expense$1,892 $6,908 
v3.21.1
Common Stock and Stockholders' Equity (Tables)
 3 Months Ended
Mar. 31, 2021
Equity [Abstract]  
Summary of Stock Option and RSU Award Activity
A summary of restricted stock unit (“RSU”) activity for the three months ended March 31, 2021 is as follows (in thousands, except per share information):

Restricted Stock Units
Number of SharesWeighted Average Grant Date Fair Value
Unvested — January 1, 20215,141 $75.93 
Granted1,081 146.79 
Vested(624)59.72 
Forfeited or canceled(228)77.55 
Unvested — March 31, 20215,370 $92.00 
A summary of stock option activity for the three months ended March 31, 2021 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, 20214,235 $31.42 5.2$473,358 
Granted276 154.05 
Exercised(208)18.91 
Forfeited or canceled(13)123.26 
Outstanding — March 31, 20214,290 $39.65 5.3$405,061 
v3.21.1
Deferred Revenue and Performance Obligations (Tables)
 3 Months Ended
Mar. 31, 2021
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 March 31,
20212020
Balance, beginning of period$383,358 $323,962 
Billings311,212 216,856 
Subscription and services revenue(282,839)(224,059)
Other revenue*(15,209)(13,416)
Balance, end of period$396,522 $303,343 
*Other revenue primarily includes implementation and training services, Talk usage, and amounts from contract assets.
v3.21.1
Net Loss Per Share (Tables)
 3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Schedule of Computation of Basic and Diluted Net Loss per Share
The following table presents the calculation of basic and diluted net loss per share for the periods presented (in thousands, except per share data):
 Three Months Ended
March 31,
20212020
Net loss$(48,965)$(42,783)
Weighted-average shares used to compute basic and diluted net loss per share117,912 113,538 
Net loss per share, basic and diluted$(0.42)$(0.38)
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 March 31,
20212020
Shares subject to outstanding common stock options and employee stock purchase plan4,601 5,429 
Restricted stock units5,370 5,846 
Shares related to convertible senior notes3,871 1,749 
 13,842 13,024 
v3.21.1
Geographic Information (Tables)
 3 Months Ended
Mar. 31, 2021
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
March 31,
20212020
United States$152,824 $124,037 
EMEA86,417 67,919 
APAC31,130 25,575 
Other27,677 19,944 
Total$298,048 $237,475 
Schedule of Long-Lived Assets by Geographic Areas
The following table presents our long-lived assets by geographic area (in thousands):
 
As of
March 31, 2021		As of
December 31, 2020
United States$72,330 $76,383 
EMEA:
Republic of Ireland36,974 38,010 
Other EMEA5,743 5,784 
Total EMEA42,717 43,794 
APAC:
Singapore17,942 19,560 
Other APAC7,138 6,466 
Total APAC25,080 26,026 
Other465 344 
Total$140,592 $146,547 
v3.21.1
Financial Instruments - Financial Assets Measured at Fair Value on Recurring Basis (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Included in marketable securities $ 1,061,278 $ 994,271
Fair value measurements, recurring    
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]    
Total fair value of financial assets 1,289,087 1,189,125
Included in cash and cash equivalents 227,809 194,854
Included in marketable securities 1,061,278 994,271
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 445,563 431,087
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 387,069 366,638
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 220,842 162,156
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 107,239 101,239
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 95,543 80,394
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 22,474 36,954
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 10,357 10,657
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 220,842 162,156
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 220,842 162,156
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 1,068,245 1,026,969
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 445,563 431,087
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 387,069 366,638
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 107,239 101,239
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 95,543 80,394
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 22,474 36,954
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 $ 10,357 $ 10,657
v3.21.1
Financial Instruments - Narrative (Details) - USD ($)
 3 Months Ended 12 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Jun. 30, 2020
Dec. 31, 2019
Mar. 31, 2018
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]            
Gross unrealized gains $ 4,000,000   $ 6,000,000      
Gross unrealized losses 0   0      
Amortized cost of cash equivalents and marketable securities 1,285,000,000   1,183,000,000      
Accrued interest 3,000,000   3,000,000      
Aggregate fair value of securities with unrealized losses 230,000,000   107,000,000      
Unrealized losses recognized by securities in continuous loss position for twelve months or longer 0   0      
Allowance for credit losses 0   0      
Balance of strategic investment 11,000,000   11,000,000      
Adjustments to carrying value of strategic investments 0          
Unrecognized loss related to effective portion of changes in fair value of foreign currency forward contracts $ 430,243,000 $ 449,943,000 431,831,000   $ 457,984,000  
Closing price of common stock (in usd per share) $ 132.62          
Level 3            
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]            
Fair value of financial assets $ 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%
Aggregate principal amount $ 165,000,000         $ 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%    
Aggregate principal amount $ 252,000,000     $ 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 1,600,000,000          
Convertible debt | Level 2 | Convertible senior notes due 2025            
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]            
Fair value 316,000,000          
Foreign currency forward contracts            
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]            
Reclassification of net gain into earnings over next 12 months (4,000,000)          
Notional value 396,000,000   $ 345,000,000      
Loss recognized in AOCI (4,000,000) $ (8,000,000)        
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 loss related to effective portion of changes in fair value of foreign currency forward contracts $ (4,000,000)          
Foreign currency forward contracts | Maximum            
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]            
Derivative, maturity 15 months          
v3.21.1
Financial Instruments - Marketable Securities by Contractual Maturity (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Fair Value Disclosures [Abstract]    
Due in one year or less $ 575,993 $ 565,593
Due after one year and within five years 485,285 428,678
Total $ 1,061,278 $ 994,271
v3.21.1
Financial Instruments - Schedule of Derivative Instruments on Consolidated Balance Sheets (Details) - Designated as hedging instrument - Level 2 - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Derivatives Fair Value [Line Items]    
Asset Derivatives $ 4,423 $ 7,922
Liability Derivatives 6,759 5,768
Foreign currency forward contracts | Other current assets    
Derivatives Fair Value [Line Items]    
Asset Derivatives 4,423 7,922
Foreign currency forward contracts | Accrued liabilities    
Derivatives Fair Value [Line Items]    
Liability Derivatives $ 6,759 $ 5,768
v3.21.1
Financial Instruments - Schedule of Derivative Instruments on Statement of Operations (Details) - Foreign currency forward contracts - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Derivative Instruments Gain Loss [Line Items]    
Gain (Loss) Reclassified from AOCI into Earnings $ 1,743 $ (941)
Revenue    
Derivative Instruments Gain Loss [Line Items]    
Gain (Loss) Reclassified from AOCI into Earnings (708) 397
Cost of revenue    
Derivative Instruments Gain Loss [Line Items]    
Gain (Loss) Reclassified from AOCI into Earnings 490 (321)
Research and development    
Derivative Instruments Gain Loss [Line Items]    
Gain (Loss) Reclassified from AOCI into Earnings 515 (281)
Sales and marketing    
Derivative Instruments Gain Loss [Line Items]    
Gain (Loss) Reclassified from AOCI into Earnings 1,029 (562)
General and administrative    
Derivative Instruments Gain Loss [Line Items]    
Gain (Loss) Reclassified from AOCI into Earnings $ 417 $ (174)
v3.21.1
Costs to Obtain Customer Contracts (Details) - USD ($)
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]      
Deferred costs to obtain customer contracts $ 111,000,000   $ 105,000,000
Amortization of deferred costs 14,757,000 $ 9,965,000  
Impairment related to deferred costs $ 0 $ 0  
v3.21.1
Property and Equipment - Components of Property and Equipment (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]    
Total $ 204,876 $ 197,641
Less: accumulated depreciation and amortization (110,265) (103,433)
Property and equipment, net 94,611 94,208
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total 91,242 91,205
Capitalized internal-use software    
Property, Plant and Equipment [Line Items]    
Total 53,904 48,730
Computer equipment and licensed software and patents    
Property, Plant and Equipment [Line Items]    
Total 32,543 30,725
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Total 13,890 13,759
Construction in progress    
Property, Plant and Equipment [Line Items]    
Total $ 13,297 $ 13,222
v3.21.1
Property and Equipment - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Property, Plant and Equipment [Abstract]      
Depreciation expense $ 6 $ 7  
Amortization expense of capitalized internal-use software 2 $ 2  
Carrying value of capitalized internal-use software 35   $ 32
Capitalized internal-use software included in construction in progress $ 12   $ 13
v3.21.1
Leases - Schedule of Lease Impact on Balance Sheet (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Assets    
Lease right-of-use assets $ 80,963 $ 84,013
Liabilities    
Lease liabilities 24,734 23,533
Lease liabilities, noncurrent $ 78,141 $ 85,275
v3.21.1
Leases - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 3 Months Ended
Apr. 30, 2021
Dec. 31, 2020
Mar. 31, 2021
Subsequent Event [Line Items]      
Weighted average remaining lease term     5 years 9 months 18 days
Weighted average discount rate     4.70%
General and administrative      
Subsequent Event [Line Items]      
Aggregate impairment charge   $ 15  
Subsequent Event      
Subsequent Event [Line Items]      
Termination payment $ 7    
v3.21.1
Leases - Schedule of Lease Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Leases [Abstract]    
Operating lease expense $ 5,622 $ 6,343
Short-term lease expense 128 185
Variable lease expense 1,218 1,543
Sublease income $ (440) $ (464)
v3.21.1
Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Leases [Abstract]    
Cash paid for amounts included in the measurement of lease liabilities $ 6,953 $ 9,552
Operating lease assets obtained in exchange for new lease liabilities $ 1,397 $ 11,316
v3.21.1
Goodwill and Acquired Intangible Assets - Acquired Intangible Assets Subject to Amortization (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Finite Lived Intangible Assets [Line Items]      
Cost $ 48,110   $ 48,110
Accumulated Amortization (23,415)   (21,554)
Net 24,695   26,556
Developed technology      
Finite Lived Intangible Assets [Line Items]      
Cost 30,200   30,200
Accumulated Amortization (13,539)   (12,445)
Net $ 16,661   17,755
Weighted Average Remaining Useful Life 3 years 9 months 18 days 4 years 1 month 6 days  
Customer relationships      
Finite Lived Intangible Assets [Line Items]      
Cost $ 14,710   14,710
Accumulated Amortization (6,718)   (6,076)
Net $ 7,992   8,634
Weighted Average Remaining Useful Life 3 years 9 months 18 days 4 years  
Backlog      
Finite Lived Intangible Assets [Line Items]      
Cost $ 3,200   3,200
Accumulated Amortization (3,158)   (3,033)
Net $ 42   $ 167
Weighted Average Remaining Useful Life 1 month 6 days 3 months 18 days  
v3.21.1
Goodwill and Acquired Intangible Assets - Narrative (Details) - USD ($)
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense $ 2,000,000 $ 3,000,000  
Carrying amount of goodwill 170,000,000   $ 170,000,000
Change to carrying amount of goodwill $ 0    
v3.21.1
Goodwill and Acquired Intangible Assets - Estimated Future Amortization Expense (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]    
Remainder of 2021 $ 5,272  
2022 6,942  
2023 6,247  
2024 4,615  
2025 972  
Thereafter 647  
Net $ 24,695 $ 26,556
v3.21.1
Convertible Senior Notes - Narrative (Details)
$ / shares in Units, shares in Millions
 1 Months Ended
Mar. 31, 2018
USD ($)
$ / shares
shares
Jun. 30, 2020
USD ($)
day
$ / shares
shares
Mar. 31, 2018
USD ($)
day
$ / shares
shares
Mar. 31, 2021
USD ($)
shares
Dec. 31, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Debt Instrument [Line Items]              
Release of valuation allowance       $ 430,243,000 $ 431,831,000 $ 449,943,000 $ 457,984,000
Cumulative effect, period of adoption, adjustment              
Debt Instrument [Line Items]              
Release of valuation allowance         51,000,000    
Convertible debt              
Debt Instrument [Line Items]              
Conversion Option $ 124,976,000   $ 124,976,000        
Net deferred tax liability related to cap call 13,784,000   13,784,000        
Cost incurred related to capped calls 44,304,000            
Convertible debt | Convertible senior notes due 2023              
Debt Instrument [Line Items]              
Aggregate principal amount $ 575,000,000   $ 575,000,000 $ 165,000,000      
Interest rate 0.25%   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   $ 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%        
Conversion Option       $ 32,427,000 32,427,000    
Issuance costs attributable to the liability component       1,269,000 1,412,000    
Net carrying amount of liability component $ 367,000,000   $ 367,000,000 134,187,000 132,388,000    
Loss on early extinguishment of debt     $ 26,000,000        
Principal outstanding       $ 149,194,000 149,194,000    
Effective interest rate       5.26%      
Capped calls, initial cap price (in usd per share) | $ / shares $ 95.20   $ 95.20        
Number of shares covered by cap call (in shares) | shares 9.1   9.1 2.4      
Cost incurred related to capped calls     $ 64,000,000        
Number of shares terminated (in shares) | shares   6.7          
Proceeds from shares terminated   $ 83,000,000          
Convertible debt | Convertible senior notes due 2025              
Debt Instrument [Line Items]              
Aggregate principal amount   $ 1,150,000,000   $ 252,000,000      
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%          
Conversion Option   $ 220,000,000   $ 220,061,000 220,061,000    
Debt issuance costs, gross   21,000,000          
Issuance costs attributable to the liability component   17,000,000   14,870,000 15,567,000    
Net deferred tax liability related to cap call       51,000,000      
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       946,302,000 935,576,000    
Repayment of debt discount   $ 39,000,000          
Principal outstanding       $ 1,150,000,000 $ 1,150,000,000    
Effective interest rate       5.00%      
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          
v3.21.1
Convertible Senior Notes - Schedule of Net Carrying Amount of Liability and Equity Component of Convertible Notes (Details) - Convertible debt - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Jun. 30, 2020
Mar. 31, 2018
Net Carrying Amount of Equity Component of Convertible Notes [Abstract]        
Debt Discount for Conversion Option       $ 124,976
Issuance costs       (2,948)
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 (188,828) (198,857)    
Unamortized issuance costs (14,870) (15,567) $ (17,000)  
Net carrying amount 946,302 935,576    
Net Carrying Amount of Equity Component of Convertible Notes [Abstract]        
Debt Discount for Conversion Option 220,061 220,061 $ 220,000  
Issuance costs (4,035) (4,035)    
Net carrying amount 216,026 216,026    
Convertible senior notes due 2023        
Net Carrying Amount of Liability Component of Convertible Notes [Abstract]        
Principal 149,194 149,194    
Unamortized Debt Discount (13,738) (15,394)    
Unamortized issuance costs (1,269) (1,412)    
Net carrying amount 134,187 132,388   $ 367,000
Net Carrying Amount of Equity Component of Convertible Notes [Abstract]        
Debt Discount for Conversion Option 32,427 32,427    
Issuance costs (765) (765)    
Net carrying amount $ 31,662 $ 31,662    
v3.21.1
Convertible Senior Notes - Schedule of Interest Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Debt Instrument [Line Items]    
Total interest expense $ 14,415 $ 6,887
Convertible debt | Convertible senior notes due 2025    
Debt Instrument [Line Items]    
Contractual interest expense 1,797  
Amortization of Debt Discount 10,029  
Amortization of issuance costs 697  
Total interest expense 12,523  
Convertible debt | Convertible senior notes due 2023    
Debt Instrument [Line Items]    
Contractual interest expense 93 359
Amortization of Debt Discount 1,656 6,057
Amortization of issuance costs 143 492
Total interest expense $ 1,892 $ 6,908
v3.21.1
Convertible Senior Notes - Summary of Impact to Stockholder's Equity (Details) - Convertible debt - USD ($)
$ in Thousands
 1 Months Ended
Mar. 31, 2018
Mar. 31, 2018
Mar. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]        
Conversion Option $ 124,976 $ 124,976    
Purchase of Capped Calls (63,940)      
Issuance Costs (2,948) (2,948)    
Net deferred tax liability (13,784) (13,784)    
Net impact to stockholder's equity $ 44,304      
Convertible senior notes due 2023        
Debt Instrument [Line Items]        
Conversion Option     $ 32,427 $ 32,427
Issuance Costs     $ (765) $ (765)
Net impact to stockholder's equity   $ 64,000    
v3.21.1
Commitments and Contingencies (Details)
$ in Millions
 1 Months Ended
Apr. 30, 2021
USD ($)
Nov. 07, 2019
complaint
Oct. 24, 2019
complaint
Other Commitments [Line Items]      
Putative class action complaints | complaint   2 2
Cloud Infrastructure | Subsequent Event      
Other Commitments [Line Items]      
Total obligation | $ $ 64    
Obligation period 3 years    
v3.21.1
Common Stock and Stockholders' Equity - Narrative (Details)
$ / shares in Units, $ in Millions
 3 Months Ended 12 Months Ended
Jan. 01, 2021
shares
May 06, 2016
shares
Mar. 31, 2021
USD ($)
offeringPeriod
semi-annualTranche
$ / shares
shares
Mar. 31, 2020
USD ($)
$ / shares
shares
Dec. 31, 2018
shares
Dec. 31, 2020
$ / shares
shares
Class Of Stock [Line Items]            
Common stock, shares authorized (in shares)     400,000,000     400,000,000
Common stock, par value (usd per share) | $ / shares     $ 0.01     $ 0.01
Common stock, shares issued (in shares)     118,400,000     117,500,000
Common stock, shares outstanding (in shares)     118,400,000     117,500,000
Preferred stock, shares authorized (in shares)     10,000,000     10,000,000
Preferred stock, par value (usd per share) | $ / shares     $ 0.01     $ 0.01
Preferred stock, shares issued (in shares)     0     0
Preferred stock, shares outstanding (in shares)     0     0
Stock options granted (in shares)   1,200,000 276,000      
Intrinsic value of options exercised (usd per share) | $     $ 26 $ 10    
Weighted-average grant date fair value of stock options (usd per share) | $ / shares     $ 54.55 $ 31.63    
Future period share-based compensation expense | $     $ 509      
Future period share-based compensation expense, period to recognized     2 years 10 months 24 days      
Employee stock option            
Class Of Stock [Line Items]            
Offering period     18 months      
Number of offering periods | offeringPeriod     3      
Length of purchase period     6 months      
Restricted stock units            
Class Of Stock [Line Items]            
Intrinsic value of shares vested | $     $ 91 $ 55    
Weighted average grant date fair value (in usd per share) | $ / shares     $ 146.79      
Shares granted (in shares)     1,081,000      
Number of shares vested (in shares)     624,000      
Performance restricted stock units            
Class Of Stock [Line Items]            
Number of vesting periods | semi-annualTranche     4      
2009 Stock Option and Grant Plan            
Class Of Stock [Line Items]            
Shares of common stock available for issuance (in shares)     0      
2014 Plan | Employee stock option            
Class Of Stock [Line Items]            
Increase in authorized shares (in shares) 5,900,000          
Shares of common stock available for issuance (in shares)     19,200,000      
PSU Retention Plan | Performance restricted stock units            
Class Of Stock [Line Items]            
Shares granted (in shares)         200,000  
Share-based compensation expense | $     $ 1      
Number of shares vested (in shares)     37,000 26,000    
Employee stock purchase plan            
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)     0      
Increase in authorized shares (in shares) 1,200,000          
Shares of common stock available for issuance (in shares)     6,000,000.0      
v3.21.1
Common Stock and Stockholders' Equity - Summary of Stock Option and RSU Award Activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
May 06, 2016
Mar. 31, 2021
Dec. 31, 2020
Number of Shares      
Balance at the beginning of the period (in shares)   4,235  
Stock options granted (in shares) 1,200 276  
Stock options exercised (in shares)   (208)  
Stock options forfeited or canceled (in shares)   (13)  
Balance at the end of the period (in shares)   4,290 4,235
Weighted Average Exercise Price      
Balance at the beginning of the period (usd per share)   $ 31.42  
Stock options granted (usd per share)   154.05  
Stock options exercised (usd per share)   18.91  
Stock options forfeited or canceled (usd per share)   123.26  
Balance at the end of the period (usd per share)   $ 39.65 $ 31.42
Weighted Average Remaining Contractual Term      
Weighted average remaining contractual term   5 years 3 months 18 days 5 years 2 months 12 days
Aggregate Intrinsic Value      
Aggregate intrinsic value, options   $ 405,061 $ 473,358
Restricted stock units      
Outstanding RSUs      
Balance at the beginning of the period (in shares)   5,141  
RSUs granted (in shares)   1,081  
RSUs vested (in shares)   (624)  
RSUs forfeited or canceled (in shares)   (228)  
Balance at the end of the period (in shares)   5,370 5,141
Weighted Average Grant Date Fair Value      
Balance at the beginning of the period (usd per share)   $ 75.93  
Weighted average grant date fair value, RSUs granted (usd per share)   146.79  
Weighted average grant date fair value, RSUs vested (usd per share)   59.72  
Weighted average grant date fair value, RSUs forfeited or canceled (usd per share)   77.55  
Balance at the end of the period (usd per share)   $ 92.00 $ 75.93
v3.21.1
Deferred Revenue and Performance Obligations - Schedule of Changes in Balance of Deferred Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Change in Contract with Customer, Liability [Abstract]    
Balance, beginning of period $ 383,358 $ 323,962
Billings 311,212 216,856
Subscription and services revenue (282,839) (224,059)
Other revenue (15,209) (13,416)
Balance, end of period $ 396,522 $ 303,343
v3.21.1
Deferred Revenue and Performance Obligations - Performance Obligations (Details)
$ in Millions
Mar. 31, 2021
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Performance obligations expected to be satisfied $ 1,002
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Performance obligations expected to be satisfied $ 680
Performance obligations expected to be satisfied, expected timing 1 year
v3.21.1
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
Mar. 31, 2021
Mar. 31, 2020
Earnings Per Share [Abstract]    
Net loss $ (48,965) $ (42,783)
Weighted-average shares used to compute basic and diluted net loss per share (in shares) 117,912 113,538
Net loss per share, basic and diluted (in usd per share) $ (0.42) $ (0.38)
v3.21.1
Net Loss Per Share - Schedule of Anti-Dilutive Securities Excluded from the Diluted per Share Calculation (Details) - shares
shares in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share amount (in shares) 13,842 13,024
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) 4,601 5,429
Restricted stock units    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Antidilutive securities excluded from computation of earnings per share amount (in shares) 5,370 5,846
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) 3,871 1,749
v3.21.1
Net Loss Per Share - Narrative (Details) - $ / shares
shares in Millions
 3 Months Ended
Mar. 31, 2021
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  
v3.21.1
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Income Tax Disclosure [Abstract]    
Income tax expense $ 2,354 $ 1,516
v3.21.1
Geographic Information - Narrative (Details)
 3 Months Ended
Mar. 31, 2021
segment
Segment Reporting [Abstract]  
Number of reportable segments 1
v3.21.1
Geographic Information - Schedule of Revenue by Geographic Areas (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Revenues From External Customers And Long Lived Assets [Line Items]    
Revenue $ 298,048 $ 237,475
United States    
Revenues From External Customers And Long Lived Assets [Line Items]    
Revenue 152,824 124,037
EMEA    
Revenues From External Customers And Long Lived Assets [Line Items]    
Revenue 86,417 67,919
APAC    
Revenues From External Customers And Long Lived Assets [Line Items]    
Revenue 31,130 25,575
Other    
Revenues From External Customers And Long Lived Assets [Line Items]    
Revenue $ 27,677 $ 19,944
v3.21.1
Geographic Information - Schedule of Long-Lived Assets by Geographic Areas (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets $ 140,592 $ 146,547
United States    
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets 72,330 76,383
Republic of Ireland    
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets 36,974 38,010
Other EMEA    
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets 5,743 5,784
EMEA    
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets 42,717 43,794
Singapore    
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets 17,942 19,560
Other APAC    
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets 7,138 6,466
APAC    
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets 25,080 26,026
Other    
Revenues From External Customers And Long Lived Assets [Line Items]    
Long-lived assets $ 465 $ 344
v3.21.1
Label Element Value
Restricted Cash, Current us-gaap_RestrictedCashCurrent $ 2,797,000
Restricted Cash, Current us-gaap_RestrictedCashCurrent 1,717,000
Restricted Cash, Noncurrent us-gaap_RestrictedCashNoncurrent 723,000
Restricted Cash, Noncurrent us-gaap_RestrictedCashNoncurrent $ 5,000