Audit Information |
12 Months Ended |
|---|---|
Dec. 31, 2022 | |
| Audit Information [Abstract] | |
| Auditor Firm ID | 42 |
| Auditor Name | Ernst & Young LLP |
| Auditor Location | San Jose, California |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Common stock, par value (USD per share) | $ 0.000005 | $ 0.000005 |
| Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
| Common stock, issued (in shares) | 374,243,000 | 292,592,000 |
| Common stock, outstanding (in shares) | 374,243,000 | 292,592,000 |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands |
Total |
Cumulative Effect, Period of Adoption, Adjustment |
Convertible Series E Preferred Stock |
Non-IPO |
IPO |
Charitable Contribution, IPO |
Total Unity Stockholders' Equity |
Total Unity Stockholders' Equity
Cumulative Effect, Period of Adoption, Adjustment
|
Total Unity Stockholders' Equity
Convertible Series E Preferred Stock
|
Total Unity Stockholders' Equity
Non-IPO
|
Total Unity Stockholders' Equity
IPO
|
Total Unity Stockholders' Equity
Charitable Contribution, IPO
|
Convertible Preferred Stock |
Convertible Preferred Stock
Convertible Series E Preferred Stock
|
Common Stock |
Common Stock
Non-IPO
|
Common Stock
IPO
|
Common Stock
Charitable Contribution, IPO
|
Additional Paid-In Capital |
Additional Paid-In Capital
Non-IPO
|
Additional Paid-In Capital
IPO
|
Additional Paid-In Capital
Charitable Contribution, IPO
|
Accumulated Other Comprehensive Loss |
Accumulated Deficit |
Accumulated Deficit
Cumulative Effect, Period of Adoption, Adjustment
|
Noncontrolling Interest |
[1] | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Beginning balance (in shares) at Dec. 31, 2019 | 95,899,214 | ||||||||||||||||||||||||||||
| Beginning balance at Dec. 31, 2019 | $ 393,911 | $ 393,911 | $ 686,559 | $ 1 | $ 226,173 | $ (3,632) | $ (515,190) | $ 0 | |||||||||||||||||||||
| Beginning balance (in shares) at Dec. 31, 2019 | 123,261,024 | ||||||||||||||||||||||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
| Issuance of stock (in shares) | 6,818,182 | 4,545,455 | 28,750,000 | 750,000 | |||||||||||||||||||||||||
| Issuance of stock | $ 149,970 | $ 100,000 | $ 1,417,582 | $ 63,615 | $ 149,970 | $ 100,000 | $ 1,417,582 | $ 63,615 | $ 149,970 | $ 100,000 | $ 1,417,582 | $ 63,615 | |||||||||||||||||
| Issuance of common stock from employee equity plans (in shares) | 12,415,153 | ||||||||||||||||||||||||||||
| Issuance of common stock from employee equity plans | 34,260 | 34,260 | 34,260 | ||||||||||||||||||||||||||
| Common stock issued in connection with acquisitions (in shares) | 1,103,190 | ||||||||||||||||||||||||||||
| Common stock issued in connection with acquisitions | 25,380 | 25,380 | 25,380 | ||||||||||||||||||||||||||
| Purchase and retirement of stock (in shares) | (5,000) | ||||||||||||||||||||||||||||
| Purchase and retirement of common stock | (110) | (110) | (110) | ||||||||||||||||||||||||||
| Conversion of convertible preferred stock to common stock upon initial public offering (in shares) | (102,717,396) | 102,717,396 | |||||||||||||||||||||||||||
| Conversion of convertible preferred stock to common stock upon initial public offering | 0 | $ (836,529) | $ 1 | 836,528 | |||||||||||||||||||||||||
| Stock‑based compensation expense | 134,629 | 134,629 | 134,629 | ||||||||||||||||||||||||||
| Net loss | (282,308) | (282,308) | (282,308) | ||||||||||||||||||||||||||
| Other comprehensive income (loss) | 214 | 214 | 214 | ||||||||||||||||||||||||||
| Ending balance (in shares) at Dec. 31, 2020 | 0 | ||||||||||||||||||||||||||||
| Ending balance at Dec. 31, 2020 | $ 2,037,143 | $ (1,522) | 2,037,143 | $ (1,522) | $ 0 | $ 2 | 2,838,057 | (3,418) | (797,498) | $ (1,522) | 0 | ||||||||||||||||||
| Ending balance (in shares) at Dec. 31, 2020 | 273,537,218 | ||||||||||||||||||||||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
| Issuance of common stock from employee equity plans (in shares) | 11,650,963 | 11,650,963 | |||||||||||||||||||||||||||
| Issuance of common stock from employee equity plans | $ 66,704 | 66,704 | 66,704 | ||||||||||||||||||||||||||
| Issuance of common stock for settlement of RSUs (in shares) | 3,935,813 | ||||||||||||||||||||||||||||
| Common stock issued in connection with acquisitions (in shares) | 3,468,362 | ||||||||||||||||||||||||||||
| Common stock issued in connection with acquisitions | 526,081 | 526,081 | 526,081 | ||||||||||||||||||||||||||
| Purchase of capped calls | (48,127) | (48,127) | (48,127) | ||||||||||||||||||||||||||
| Stock‑based compensation expense | 347,159 | 347,159 | 347,159 | ||||||||||||||||||||||||||
| Net loss | (532,607) | (532,607) | (532,607) | ||||||||||||||||||||||||||
| Other comprehensive income (loss) | (440) | (440) | (440) | ||||||||||||||||||||||||||
| Ending balance (in shares) at Dec. 31, 2021 | 0 | ||||||||||||||||||||||||||||
| Ending balance at Dec. 31, 2021 | $ 2,394,391 | 2,394,391 | $ 0 | $ 2 | 3,729,874 | (3,858) | (1,331,627) | 0 | |||||||||||||||||||||
| Ending balance (in shares) at Dec. 31, 2021 | 292,592,000 | 292,592,356 | |||||||||||||||||||||||||||
| Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||||||
| Issuance of common stock from employee equity plans (in shares) | 4,512,850 | 5,119,859 | |||||||||||||||||||||||||||
| Issuance of common stock from employee equity plans | $ 63,493 | 63,493 | 63,493 | ||||||||||||||||||||||||||
| Issuance of common stock for settlement of RSUs (in shares) | 6,545,464 | ||||||||||||||||||||||||||||
| Common stock issued in connection with acquisitions (in shares) | 112,716,696 | ||||||||||||||||||||||||||||
| Common stock issued in connection with acquisitions | 2,932,228 | 2,932,228 | 2,932,228 | ||||||||||||||||||||||||||
| Purchase and retirement of stock (in shares) | (42,731,179) | ||||||||||||||||||||||||||||
| Purchase and retirement of common stock | (1,500,000) | (1,500,000) | (1,500,000) | ||||||||||||||||||||||||||
| Stock‑based compensation expense | 549,671 | 549,671 | 549,671 | ||||||||||||||||||||||||||
| Capital contribution from minority interest holder | 13,767 | 7,380 | 7,380 | 6,387 | |||||||||||||||||||||||||
| Net loss | (919,488) | ||||||||||||||||||||||||||||
| Net loss, including adjustment to redeemable noncontrolling interests | (921,151) | (921,062) | (2,870) | (918,192) | (89) | ||||||||||||||||||||||||
| Other comprehensive income (loss) | 2,167 | 2,167 | 2,167 | ||||||||||||||||||||||||||
| Ending balance (in shares) at Dec. 31, 2022 | 0 | ||||||||||||||||||||||||||||
| Ending balance at Dec. 31, 2022 | $ 3,534,566 | $ 3,528,268 | $ 0 | $ 2 | $ 5,779,776 | $ (1,691) | $ (2,249,819) | $ 6,298 | |||||||||||||||||||||
| Ending balance (in shares) at Dec. 31, 2022 | 374,243,000 | 374,243,196 | |||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|---|---|---|---|
| Statement of Cash Flows [Abstract] | |||
| Cash and cash equivalents | $ 1,485,084 | $ 1,055,776 | $ 1,272,578 |
| Restricted cash, included in other assets | 20,604 | 10,823 | 21,369 |
| Total cash, cash equivalents, and restricted cash | $ 1,505,688 | $ 1,066,599 | $ 1,293,947 |
Accounting Policies |
12 Months Ended |
|---|---|
Dec. 31, 2022 | |
| Accounting Policies [Abstract] | |
| Accounting Policies | Accounting Policies Description of Business We provide a comprehensive set of software solutions to create, run and monetize interactive, real-time 2D and 3D content for mobile phones, tablets, PCs, consoles, and augmented and virtual reality devices, among others. We are headquartered in San Francisco, California and have operations in the United States, Denmark, Israel, Belgium, Canada, China, Colombia, Czech Republic, Finland, France, Germany, Ireland, Japan, Lithuania, Portugal, Singapore, South Korea, Spain, Sweden, Switzerland, the U.K., and the United Arab Emirates. We market our solutions directly through our online store and field sales operations in North America, Denmark, China, Finland, the U.K., Germany, Israel, Japan, Singapore, South Korea, and Spain, and indirectly through independent distributors and resellers worldwide. Basis of Presentation and Consolidation We prepared the accompanying consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements include the accounts of Unity Software Inc., its wholly owned subsidiaries, and entities consolidated under the voting interest model. We have eliminated all intercompany balances and transactions. In our opinion, the information contained herein reflects all adjustments necessary for a fair presentation of our results of operations, financial position, cash flows, and stockholders’ equity. All such adjustments are of a normal, recurring nature. Use of Estimates The preparation of 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 reporting period. For us, these estimates include, but are not limited to, revenue recognition, the measurement of liabilities for uncertain tax positions and deferred tax assets and liabilities, the fair value of tangible and intangible assets acquired and liabilities assumed through business combinations, the fair value of redeemable noncontrolling interests, the fair value of equity awards assumed and replaced in connection with the acquisition of ironSource, and customer life for capitalized commissions. Actual results could differ from those estimates, and such differences could be material to our financial position and results of operations. Revenue Recognition Revenue is measured based on the amount of consideration that we expect to receive from our customers. Revenue excludes sales and indirect taxes. In arrangements where we have multiple performance obligations, the transaction price is allocated to each performance obligation using the relative stand-alone selling price ("SSP"). We generally determine SSP based on observable pricing. When observable pricing is not available, we use cost plus margin analysis to determine SSP. During the fourth quarter of 2022, we completed our acquisition of ironSource. This resulted in adjustments to our internal reporting structure to focus on two complementary and interconnected solutions: (1) Create Solutions and (2) Grow Solutions. Create Solutions Create Solutions are a combination of software and services that enable customers to edit, run, and iterate real-time 2D and 3D experiences. Revenue is primarily derived from Create Solution Subscriptions, Enterprise Support, Professional Services, and Cloud and Hosting services. Create Solutions subscriptions provide customers with software, embedded cloud functionality, and software updates. As the software and software updates are highly interdependent and interrelated and these services have the same pattern of performance as the embedded cloud functionality, we combine these promises and account for them as a single performance obligation that is recognized over time. Enterprise customers may purchase an enhanced support offering ("Enterprise Support") that is sold separately and is considered its own performance obligation. Create Solutions subscriptions and enterprise support typically have a term of to five years and are billed in monthly, quarterly and annual installments, and recognized ratably over the service period. Professional services revenue is primarily composed of consulting, platform integration, training, and custom application and workflow development. Revenue is recognized as services are rendered. We typically invoice our customers on a milestone basis or when promised services are delivered. Our Cloud and Hosting service arrangements are based on a fixed fee or consumption-based model. For fixed fee arrangements revenue is recognized ratably over the contractual service term as our obligations are generally fulfilled evenly throughout the hosting period. For consumption-based arrangements, we recognize revenue as services are provided. Grow Solutions Grow Solutions revenue primarily consists of advertising services provided through our monetization solutions that allow publishers, which include mobile application developers, original equipment manufacturers ("OEM") and mobile carriers to sell available advertising inventory on their mobile applications or hardware devices to advertisers for in-app or on-device placements. We present revenue on a net basis for sales where we are facilitating the transaction between advertisers and publishers and do not have control over in-app or on-device placement and on a gross basis for advertising sales where we are the publisher and have control of the in-app or on-device placement. Advertising revenue is recognized at a point in time when the agreed upon action is completed or when the advertisement is displayed to users. Cost of Revenue Cost of revenue for the delivery of software services, professional services, and advertising consists primarily of hosting expenses, personnel costs (including salaries, stock-based compensation, and benefits) for employees associated with our product support and professional services organizations, credit card fees, third-party license fees, and allocated shared costs, including facilities, IT, and security costs, as well as amortization of related capitalized software costs and depreciation of related property and equipment and amortization if acquired intangible assets. Stock-Based Compensation Stock-based compensation expense related to our employees and non-employee directors is calculated based on the fair value on the grant date. For restricted stock units ("RSUs"), fair value is based on the closing price of our common stock on the grant date. The fair value of stock options and purchases made under the 2020 Employee Stock Purchase Plan ("2020 ESPP") is estimated using the Black-Scholes pricing model. This model requires certain assumptions be used as inputs, such as the fair value of the underlying common stock, expected term of the option before exercise, expected volatility of our common stock, expected dividend yield, and a risk-free interest rate. Options granted during the year have a maximum contractual term of ten years. We have limited historical stock option activity and therefore estimate the expected term of stock options granted using the simplified method, which represents the average of the contractual term of the stock option and its weighted-average vesting period. The expected volatility of stock options and employee stock purchase plan ("ESPP") purchases are based upon our historical volatility and the historical volatility of a number of publicly traded companies in similar industries over similar durations. We have historically not declared or paid any dividends and do not currently expect to do so in the foreseeable future. The risk-free interest rates used are based on the U.S. Department of Treasury ("U.S. Treasury") yield in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the expected term of the stock options and ESPP purchases. The fair value of price-vested units ("PVUs"), which are RSUs that contain both service-based and market-based vesting conditions, is estimated using the Monte Carlo simulation model and is based on the closing stock price of our common stock on the grant date modified to reflect the impact of the market-based vesting condition, including the estimated payout level based on that condition. We do not adjust compensation cost for subsequent changes in the expected outcome of the market-based vesting conditions. In connection with the acquisition of ironSource, we estimated the fair value of the assumed equity awards using a binomial lattice model. The assumed equity awards relating to future services is being recognized over the remaining service period. We recognize stock-based compensation expense for RSUs, stock options, and PVUs, on a straight-line basis, over the requisite service period, generally, a vesting period of one year to four years. We recognize stock-based compensation expense related to the 2020 ESPP on a straight-line basis over the offering period. We do not estimate forfeitures but instead account for them as they occur. Cash, Cash Equivalents, and Restricted Cash We consider all highly liquid investments with original maturities of three months or less at date of purchase to be cash equivalents. Our cash equivalents include money market funds, time deposits, and commercial paper. As of December 31, 2022 and 2021, restricted cash was $20.6 million and $10.8 million, respectively. Restricted cash consists of secured letters of credit issued in connection with our operating leases and other amounts held in escrow. Restrictions typically lapse at the end of the lease term, and restricted cash is classified as current or non-current based on the remaining term of the restriction. Short-term Investments Our short-term investments consist of investments in short-term deposits, U.S. treasury securities, asset-backed securities, corporate bonds, commercial paper, and supranational bonds. We classify our investments in debt securities as available-for-sale at the time of purchase. We consider all debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classify these securities as current assets in the consolidated balance sheets. Unrealized gains and losses, net of taxes, are included in accumulated other comprehensive loss, which is reflected as a separate component of stockholders’ equity in our consolidated balance sheets. During the year ended December 31, 2022, we sold the entirety of our available-for-sale debt securities portfolio. Accounts Receivable Accounts receivable are recorded at the original amount, net of allowances for uncollectible amounts. We estimate losses on uncollectible amounts based on expected losses, including our historical experience of actual losses. The estimated losses on uncollectible amounts are recorded in general and administrative expense on our consolidated statements of operations. As of December 31, 2022 and 2021, the allowance for uncollectible amounts was $9.4 million and $5.4 million, respectively. Credit Risk and Concentrations Financial instruments that potentially subject us to a concentration of credit risk consist primarily of cash and cash equivalents, short-term investments, and accounts receivable. We place our domestic and foreign cash and cash equivalents, as well as our short-term investments, with large, creditworthy financial institutions. Balances in these accounts may exceed federally insured limits at times. In general, we do not require our customers to provide collateral or other security to support accounts receivable. To reduce credit risk, management performs credit evaluations of our customers’ financial condition, as warranted, and continually analyzes the allowance for doubtful accounts, which we maintain based upon the expected collectability of accounts receivable. As of December 31, 2022 and 2021, no individual customer represented 10% or more of the aggregate receivables. For the years ended December 31, 2022, 2021, and 2020, no individual customer represented 10% or more of total revenue. Fair Value of Financial Instruments We define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which to transact and the market-based risk. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash and cash equivalents, short-term investments, accounts receivable, accounts payable, and accrued liabilities, due to their short-term nature. Comprehensive Loss Comprehensive loss is comprised of net loss and other comprehensive loss. Our other comprehensive loss includes unrealized gains and losses on available-for-sale investments, derivative instruments, and foreign currency translation adjustment. Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation and amortization, computed using the straight-line method based on the estimated useful lives of the assets, which is generally three years for computer and other hardware and five years for furniture. Leasehold improvements are amortized over the shorter of their estimated useful life or the remaining term of the lease. Software licenses are amortized over the shorter of their estimated useful life or license term, which is generally to five years. The costs of repairs and maintenance are expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is credited or charged to the consolidated statement of operations. Leases Primarily all of our leases have been categorized as operating leases at inception. On certain of our lease agreements, we may receive rent holidays and other incentives provided by the landlord. We recognize lease costs on a straight-line basis without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Additionally, incentives we receive are treated as a reduction of our costs over the term of the agreement. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the non-cancellable term of the lease. We establish assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are depreciated over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated retirement costs. Convertible Senior Notes and Capped Call Transactions We account for each issuance of our Convertible Senior Notes as single liabilities measured at their amortized cost. Interest expense related to the amortization of debt issuance costs are recorded in other income and expense. We record the cost of capped call transactions as a reduction of our additional paid-in capital on our consolidated balance sheets. Capped call transactions will not be remeasured as long as they continue to meet the conditions for equity classification. Goodwill and Intangible Assets We allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values as of the acquisition date. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Intangible assets, with the exception of certain contractual relationships, that have a finite life are amortized on a straight-line basis over their estimated useful lives, which typically range from to six years. Certain contractual relationships are amortized using an accelerated method of amortization, which reflects the pattern in which the economic benefits from the intangible assets are expected to be recognized. On an annual basis, we evaluate the estimated remaining useful life of acquired intangible assets and whether events or changes in circumstances warrant a revision to the remaining amortization period. No changes to the useful lives of our intangible assets were deemed necessary during the years ended December 31, 2022, 2021, and 2020 based on management's evaluation. Segments We operate as a single operating segment. The chief operating decision maker is our Chief Executive Officer, who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis, accompanied by disaggregated information of our revenue. Accordingly, we have determined that we have a single reportable segment and operating segment structure. Capitalized Software Costs and Software Implementation Costs We capitalize implementation costs incurred in our cloud computing service arrangements related to enterprise software solutions (“capitalized implementation costs”) and costs associated with customized internal‑use software systems that have reached the application development stage. Such capitalized costs include external direct costs utilized in developing or obtaining the applications and payroll and payroll‑related expenses for employees, who are directly associated with the development of the applications. We capitalize such costs during the application development stage, which begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Capitalized software costs are amortized on a straight-line basis over their estimated useful life, which is generally to three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Capitalized implementation costs are expensed over the term of the hosting arrangement, which is the fixed, non-cancellable term of the arrangement, plus any reasonably certain renewal periods. The amount of capitalized software costs and capitalized implementation costs was $5.7 million and $5.9 million, respectively, during the year ended December 31, 2022 and $1.2 million and $4.7 million, respectively, during the year ended December 31, 2021. Capitalized software costs are included in property and equipment, net, on the consolidated balance sheets. The current portion of capitalized implementation costs are included in prepaid expenses on the consolidated balance sheets, and the non-current portion of capitalized implementation costs are included in other assets on the consolidated balance sheets. Research and development costs related to internally developed software, which consist primarily of software development costs, are expensed as incurred. Based upon our product development process, technological feasibility is established upon completion of a working model. Costs incurred between completion of the working model and the point at which the product is ready for general release have not been significant. Therefore, all product development costs have been charged to research and development expense. Impairment Analysis We evaluate intangible assets and long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes but is not limited to significant adverse changes in business climate, market conditions, or other events that indicate an asset’s carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value. We evaluate and test the recoverability of our goodwill for impairment at least annually during our fourth quarter of each calendar year or more often if and when circumstances indicate that goodwill may not be recoverable. There were no material impairments of capitalized software costs, capitalized implementation costs, intangible assets, long-lived assets, or goodwill during the years ended December 31, 2022, 2021, and 2020. Income Taxes We are subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment is required in determining our provision for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws. We record an income tax expense (or benefit) for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, we recognize deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for NOL and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We recognize the deferred income tax effects of a change in tax rates in the period of the enactment. We record a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized. We consider all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income, and ongoing tax planning strategies in assessing the need for a valuation allowance. We recognize tax benefits from uncertain tax positions only if we believe that the position is more likely than not to be sustained on examination by the taxing authorities based on the technical merits of the position. Although we believe that we have adequately reserved for our uncertain tax positions (including net interest and penalties), we can provide no assurance that the final tax outcome of these matters will not be materially different. We make adjustments to these reserves in accordance with the income tax accounting guidance when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect our income tax expense (or benefit) in the period in which such determination is made, and could have a material impact on our financial condition and operating results. We recognize interest and penalties related to unrecognized tax benefits within income tax expense in the accompanying consolidated statement of operations. Accrued interest and penalties are included in income and other taxes payable on the consolidated balance sheets. Translation of Foreign Currencies The functional currency of the majority of our foreign subsidiaries is the U.S. dollar. Foreign currency transaction gains and losses are included in interest and other income (expense), net, on the consolidated statements of operations for the period. For U.S. dollar functional currency subsidiaries, all assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. For a foreign subsidiary where the local currency is the functional currency, adjustments to translate those statements into U.S. dollars are recorded in accumulated other comprehensive loss in stockholders’ equity. Warranties and Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, investors, directors, officers, employees and other parties with respect to certain matters. Indemnification may include losses from our breach of such agreements, services we provide, or third-party intellectual property infringement claims. These indemnifications may survive termination of the underlying agreement and the maximum potential amount of future indemnification payments may not be subject to a cap. As of December 31, 2022 and 2021, there were no known events or circumstances that have resulted in a material indemnification liability to us and we did not incur material costs to defend lawsuits or settle claims related to these indemnifications. We generally do not offer warranties for our software products. With certain customers, we will warrant that our software products will operate without material error and/or substantially in conformity with product documentation. We have not experienced any warranty claims to date, and no liabilities have been recorded as of December 31, 2022 and 2021. Advertising Costs Advertising costs are expensed as incurred as a component of sales and marketing expense in the consolidated statements of operations. Advertising expense was approximately $18.8 million, $24.2 million, and $12.3 million for the years ended December 31, 2022, 2021, and 2020, respectively.
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| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue | Revenue The table below presents our revenue (in thousands) disaggregated by source, which also have similar economic characteristics. Our results for the years ended December 31, 2022, 2021, and 2020 have been adjusted to align with our focus on Create and Grow Solutions by including annual revenue of approximately $82.7 million, $74.8 million, and $70.0 million, respectively, related to Strategic Partnerships and Other in Create Solutions and moving annual revenue of approximately $125.6 million, $105.5 million, and $71.4 million, respectively, related to Unity Games Services from Operate Solutions to Create Solutions.
The following table presents our revenue disaggregated by geography, based on the invoice address of our customers (in thousands):
(1) Greater China includes China, Hong Kong, and Taiwan. (2) Europe, the Middle East, and Africa ("EMEA"). (3) Asia-Pacific, excluding Greater China ("APAC"). (4) Canada and Latin America ("Other Americas"). Sales Commissions Sales commissions that have a benefit beyond one year are capitalized and amortized on a straight line method over the expected period of benefit, which is generally three years. As of December 31, 2022, capitalized commissions, net of amortization, included in prepaid expenses and other and other assets were $8.8 million and $5.3 million, respectively. As of December 31, 2021, capitalized commissions, net of amortization, included in prepaid expenses and other and other assets were $7.9 million and $8.7 million, respectively. For the years ended December 31, 2022 and 2021, we recorded amortization costs of $9.4 million and $5.6 million, respectively, in sales and marketing expenses. We did not incur any impairment losses for the years ended December 31, 2022 and 2021. Contract Balances and Remaining Performance Obligations Contract assets (unbilled receivables) included in accounts receivable, net, are recorded when revenue is earned in advance of customer billing schedules. Unbilled receivables totaled $37.5 million and $28.3 million as of December 31, 2022 and 2021, respectively. Contract liabilities (deferred revenue) relate to payments received in advance of performance under the contract. Revenue recognized during the year ended December 31, 2022 that was included in the deferred revenue balances at January 1, 2022 was $137.4 million. Additionally, we have performance obligations associated with commitments in customer contracts to perform in the future that had not yet been recognized in our consolidated financial statements. For contracts with original terms that exceed one year, those commitments not yet recognized were $620.0 million and relate primarily to Create Solutions subscriptions, Enterprise Support, and Strategic Partnerships. These commitments generally extend over the next to five years and we expect to recognize approximately $266.5 million or 43% of this revenue during the next 12 months.
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Financial Instruments |
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| Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial Instruments | Financial Instruments Restricted cash, cash equivalents, and short-term investments are recorded at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, the following hierarchy prioritizes the inputs to valuation methodologies used to measure fair value: •Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities. •Level 2—Valuations based on quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration. •Level 3—Valuations based on unobservable inputs reflecting our own assumptions used to measure assets and liabilities at fair value. These valuations require significant judgment. The following table summarizes, by major security type, our restricted cash, cash equivalents, and short-term investments that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as of December 31, 2022 (in thousands):
Cash equivalents and short-term investments consisted of the following as of December 31, 2021 (in thousands):
We did not recognize any credit losses related to our available-for-sale debt securities during the years ended December 31, 2022 and 2021. There were no material realized or unrealized gains or losses, either individually or in the aggregate, during the years ended December 31, 2022 and 2021. During the year ended December 31, 2022, we sold the entirety of our available-for-sale debt securities portfolio. Nonrecurring Fair Value Measurements We hold equity investments in certain unconsolidated entities without a readily determinable fair value. These strategic investments represent less than a 20% ownership interest in each of the entities, and we do not have significant influence over or control of the entities. At December 31, 2022, equity investments totaled $31.1 million. Approximately $15.6 million of these equity investments were measured at cost. As part of the merger with ironSource, $15.5 million of these equity investments were measured at fair value using the market approach.
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Investment in Unity China |
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| Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
| Investment in Unity China | Investment in Unity China In August 2022, we formed a company in China ("Unity China") to perform research and development activities and to facilitate commercialization in the Greater China region. Upon formation, we agreed to sell to third-party investors an ownership interest of approximately 20.5% in Unity China for cash consideration of $196.5 million. Under the agreement and pursuant to certain conditions that include successfully completing an initial public offering of Unity China at a valuation greater than $3.6 billion, the investors have the option to require us to repurchase their interest at a redemption value based on the greater of Unity China's then current equity fair value or a guaranteed floor value in the aggregate amount of $278.0 million. The redeemable noncontrolling interests are initially measured at its issuance date fair value and then adjusted for its proportionate net income or loss and accreted to its estimated redemption value through the applicable redemption date, which is August 2027. We valued the combination of the investors' equity interest in Unity China and their redemption right at approximately $217.9 million. The investors' equity interest was valued using a discounted cash flow analysis and market approach. The redemption right was valued using the Black-Scholes option-pricing model adjusted for probabilities of successfully completing an initial public offering. The difference between the fair value of the redeemable noncontrolling interests and cash consideration received was recognized as a customer incentive, as the equity interest holders are also customers. The customer incentive will be amortized against revenue over the five-year term of the redemption right. Subsequent and contingent to the initial investment from third-party investors, a management investor contributed $14.4 million for an ownership interest of 1.5% with no redemption rights. The results of Unity China are included in our consolidated financial statements and were not material for the year ended December 31, 2022, and the redeemable noncontrolling interests are recorded as temporary equity on our consolidated balance sheet. The following table presents the changes in redeemable noncontrolling interests (in thousands):
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Acquisitions |
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| Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisitions | Acquisitions The revenue and earnings of the acquired businesses have been included in our results from the respective dates of the acquisitions and, other than the ironSource Merger, were not material to our consolidated financial statements in the year of acquisition. The total purchase price allocated to the net assets acquired is assigned based on the fair values as of the date of acquisition. The fair value assigned to identifiable intangible assets acquired was determined using the income approach and the cost approach. The identifiable intangible assets are subject to amortization on a straight-line basis over their estimated useful lives, as this best approximates the benefit period related to these assets. The excess of the purchase price over the identified tangible and intangible assets, less liabilities assumed, is recorded as goodwill. Goodwill is not subject to amortization and it typically is not deductible for U.S. income tax purposes. For 2022, the fair values of assets acquired and liabilities assumed, including current income taxes payable and deferred taxes, may change over the measurement period as additional information is received and certain tax returns are finalized. Accordingly, the provisional measurements of fair value of the current income taxes payable and deferred taxes are subject to change. We expect to finalize the valuation as soon as practicable, but not later than one year from the respective acquisition dates. 2022 Acquisitions ironSource Ltd. On November 7, 2022, we completed the acquisition of ironSource, a leading business platform for the app economy. The purchase consideration was payable through the issuance of 112,547,375 shares of our common stock valued at approximately $2.8 billion, and assumed 17,326,341 equity awards valued at approximately $126.7 million for services rendered through the acquisition date. Total purchase consideration transferred was approximately $2.9 billion. We recorded $33.0 million in transaction costs associated with the acquisition for the year ended December 31, 2022. These costs were recorded within general and administrative expenses. The revenue and earnings of the acquired business have been included in our results since the acquisition date.The revenue and income related to ironSource were $120.3 million and $5.4 million, respectively, for the year ended December 31, 2022.The following table summarizes the consideration paid for ironSource and the estimated fair values of the assets acquired at the acquisition date (in thousands):
(1) Goodwill reflects the expected future benefits of certain synergies and acquired assembled workforce, which does not qualify for separate recognition as an identifiable intangible asset. The goodwill balance is not subject to amortization and is not deductible for U.S. income tax purposes. MindKick, Inc. On January 28, 2022, we completed the purchase of MindKick, Inc. ("MindKick") for a total purchase consideration of approximately $46.6 million. This consideration included a combination of approximately $26.7 million in cash and the issuance of 169,321 shares of our common stock valued at approximately $16.1 million. An additional 42,330 shares of our common stock subject to a service-based vesting condition were granted to certain employees of Mindkick; these shares of common stock are accounted for outside of the business combination and will be recognized as post-combination expense. MindKick provides 2D game creation tools and game templates with the goal of providing consumers the ability to create, play, and share their own 2D games on mobile. Prior to the completion of the acquisition, we held a minority investment in MindKick that we accounted for using the equity method of accounting. In circumstances where a business combination is achieved in stages, previously-held equity interests are remeasured at fair value. The remeasured fair value assigned to the previously-held equity interest in MindKick of $3.7 million approximates cost, and therefore, no gain or loss was recognized. The identifiable assets and liabilities acquired are primarily $37.0 million in goodwill, $7.5 million in intangible assets, $2.8 million in cash, and ($0.7 million) in other net assets and liabilities. The transaction costs associated with the acquisition are not material. The revenue and earnings of the acquired business have been included in our results since the acquisition date and are not material to our consolidated results. Unaudited Pro Forma Financial Information The following unaudited pro forma financial information presents the consolidated results of ironSource for the years ended December 31, 2022 and 2021, giving effect to the acquisition as if it had occurred on January 1, 2021, and combines the historical financial results of ironSource. The unaudited pro forma financial information includes adjustments to give effect to pro forma events that are directly attributable to the acquisition. The pro forma financial information includes adjustments to amortization for intangible assets acquired and acquisition costs. The unaudited pro forma financial information is presented for illustrative purposes only and is not necessarily indicative of the results of operations of future periods. The unaudited pro forma financial information does not give effect to the potential impact of current financial conditions, future revenues, regulatory matters, or any anticipated synergies, operating efficiencies, or cost savings that may be associated with the acquisition. Consequently, actual results will differ from the unaudited pro forma financial information presented below (in thousands):
Pro forma results of operations for the other acquisitions have not been presented because they are not material to the consolidated statements of operations and comprehensive loss, either individually or in the aggregate. 2021 Acquisitions During the year ended December 31, 2021, we completed the acquisitions of certain companies for a total purchase consideration of approximately $2.1 billion payable in cash and stock. The purchase consideration was primarily allocated to goodwill of approximately $1.3 billion and intangible assets of approximately $790.2 million. These acquisitions were strategic in nature as they enhanced our product offerings. The revenue and earnings of the acquired businesses have been included in our results since the acquisition date. Pro forma results of operations for these acquisitions have not been presented because they are not material to the consolidated statements of operations.
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Goodwill and Intangible Assets |
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Goodwill represents the excess of purchase price and related costs over the value assigned to net tangible and identifiable intangible assets acquired in business combinations. The following table presents the changes in the carrying amount of goodwill for the years ended December 31, 2022 and 2021 (in thousands):
Intangible Assets, Net The following tables present details of our intangible assets, excluding goodwill (in thousands, except for weighted-average useful life):
(1) Based on weighted-average useful life established as of the acquisition date. The following table presents the amortization of finite-lived intangible assets included on our consolidated statements of operations (in thousands):
As of December 31, 2022, the estimated future amortization of finite-lived intangible assets for each of the next five years and thereafter was as follows (in thousands):
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Balance Sheet Components |
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| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance Sheet Components | Balance Sheet Components The following tables provide details of selected balance sheet items (in thousands):
(1) The following table presents the depreciation and amortization of property and equipment included on our consolidated statements of operations (in thousands):
Long-lived Assets, Net, by Geographic Area The following table presents our long-lived assets, net, disaggregated by geography, which consists of our property and equipment, net, but excludes internally developed software and purchased software (in thousands):
(1) No individual country, other than those disclosed above, exceeded 10% of our total long-lived assets, net, for any period presented.
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Leases |
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| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases | Leases We have operating leases for offices which have remaining lease terms of up to nine years, some of which include options to extend the lease with renewal terms from to five years. Some leases include an option to terminate the lease for up to five years from the lease commencement date. Components of lease expense were as follows (in thousands):
Supplemental balance sheet information related to leases was as follows (in thousands, except weighted-average figures):
As of December 31, 2022, our operating leases had a weighted-average remaining lease term of 5.0 years and a weighted-average discount rate of 4.0%. As of December 31, 2021, our operating leases had a weighted-average remaining lease term of 5.9 years and a weighted-average discount rate of 4.3%. As of December 31, 2022, our lease liabilities were as follows (in thousands):
(1) Excludes future minimum payments for leases which have not yet commenced as of December 31, 2022. As of December 31, 2022, we had entered into leases that have not yet commenced with future minimum lease payments of $40.1 million that are not yet reflected on our consolidated balance sheets. These operating leases will commence in 2023 with lease terms of approximately to ten years.
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Borrowings |
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| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Borrowings | Borrowings Convertible Notes 2027 Notes In November 2022, we issued the 2027 Notes. The closing of the issuance and sale of the 2027 Notes (the "PIPE") occurred promptly following the closing of the ironSource Merger, pursuant to an indenture dated November 8, 2022 (the “Indenture”). Proceeds from the issuance of the 2027 Notes were approximately $1.0 billion, net of debt issuance costs. The debt issuance costs are amortized to interest expense using the straight-line method, which approximates the effective interest method. The 2027 Notes are general unsecured obligations which bear regular interest of 2.0%. We may elect for additional interest to accrue on the 2027 Notes as the sole remedy for any failure by us to comply with certain reporting requirements under the Indenture. Holders of the 2027 Notes may receive additional interest under specified circumstances as outlined in the Indenture. Additional interest, if any, will be payable in the same manner as the regular interest, which is semiannually in arrears on May 15 and November 15 of each year, beginning on May 15, 2023. The 2027 Notes will mature on November 15, 2027 unless earlier converted, redeemed, or repurchased. The 2027 Notes are convertible into cash, shares of our common stock, or a combination of cash and shares of our common stock, at our election, at an initial conversion rate of 20.4526 shares of common stock per $1,000 principal amount of 2027 Notes, which is equivalent to an initial conversion price of approximately $48.89 per share of our common stock. The conversion rate is subject to customary adjustments for certain events as described in the Indenture governing the 2027 Notes. In connection with a make-whole fundamental change, as defined in the Indenture, or in connection with certain corporate events that occur prior to the maturity date or a notice of redemption, in each case as described in the Indentures, we will increase the conversion rate for a holder of the 2027 Notes who elects to convert its 2027 Notes in connection with such a corporate event or during the related redemption period in certain circumstances. Additionally, in the event of a fundamental change, subject to certain limitations described in the Indenture, holders of the 2027 Notes may require us to repurchase all or a portion of the 2027 Notes at a price equal to 100% of the principal amount of 2027 Notes to be repurchased, plus any accrued and unpaid additional interest, if any, to, but excluding, the fundamental change repurchase date. We accounted for the issuance of the 2027 Notes as a single liability measured at its amortized cost, as no other embedded features require bifurcation and recognition as derivatives. The table below summarizes the principal and unamortized debt issuance cost for the 2027 Notes (in thousands):
Interest expense on the 2027 Notes related to regular interest was $2.9 million and interest expense related to the amortization of debt issuance costs was immaterial for the year ended December 31, 2022. As of December 31, 2022, no holders of the 2027 Note have exercised the conversion rights, and the if-converted value of the 2027 Notes did not exceed the principal amount. 2026 Notes In November 2021, we issued an aggregate of $1.7 billion principal amount of 0% Convertible Senior Notes due 2026 (the "2026 Notes"). Proceeds from the issuance of the 2026 Notes were $1.7 billion, net of debt issuance costs and cash used to purchase the capped call transactions ("Capped Call Transactions") discussed below. The debt issuance costs are amortized to interest expense using the straight-line method, which approximates the effective interest method. The 2026 Notes are general unsecured obligations which do not bear regular interest and for which the principal balance will not accrete. The 2026 Notes will mature on November 15, 2026 unless earlier converted, redeemed, or repurchased. The 2026 Notes are convertible into cash, shares of our common stock, or a combination of cash and shares of our common stock, at our election, at an initial conversion rate of 3.2392 shares of common stock per $1,000 principal amount of 2026 Notes, which is equivalent to an initial conversion price of approximately $308.72 per share of our common stock. The conversion rate is subject to customary adjustments for certain events as described in the indenture governing the 2026 Notes. The table below summarizes the principal and unamortized debt issuance cost for the 2026 Notes (in thousands):
Interest expense related to the amortization of debt issuance costs was $4.5 million for the year ended December 31, 2022 and $0.5 million for the year ended December 31, 2021. Capped Call Transactions In connection with the pricing of the 2026 Notes, we entered into the Capped Call Transactions with certain counterparties at a net cost of $48.1 million with call options totaling approximately 5.6 million of our common shares, and expiration dates beginning on September 18, 2026 and ending on November 12, 2026. The strike price of the Capped Call Transactions is $308.72, and the cap price is initially $343.02 per share of our common stock and is subject to certain adjustments under the terms of the Capped Call Transactions. The Capped Call Transactions are freestanding and are considered separately exercisable from the 2026 Notes. The Capped Call Transactions are intended to reduce potential dilution to our common stock upon any conversion of the 2026 Notes and/or offset any cash payments we are required to make in excess of the principal amount of converted 2026 Notes, as the case may be, with such reduction and/or offset subject to a cap based on the cap price described above. The cost of the Capped Call Transactions was recorded as a reduction of our additional paid-in capital on our consolidated balance sheets. The Capped Call Transactions will not be remeasured as long as they continue to meet the conditions for equity classification. As of December 31, 2022, the Capped Call Transactions were not in the money and met the conditions for equity classification.
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Commitment and Contingencies |
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| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies | Commitments and Contingencies The following table summarizes our non-cancelable contractual commitments as of December 31, 2022 (in thousands):
(1) The operating lease obligation consists of obligations for real estate (2) The substantial majority of our purchase commitments are related to agreements with our data center hosting providers. (3) Convertible notes due 2026 and 2027. See Note 9, "Borrowings," of the Notes to Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K for further discussion. We expect to meet our remaining commitment. Legal Matters In the normal course of business, we are subject to various legal matters. We accrue a liability when management believes that it is both probable that a liability has been incurred and that the amount of loss can be reasonably estimated. We also disclose material contingencies when we believe a loss is not probable but reasonably possible. Legal costs related to such potential losses are expensed as incurred. In addition, recoveries are shown as a reduction in legal costs in the period in which they are realized. With respect to our outstanding matters, based on our current knowledge, we believe that the resolution of such matters will not, either individually or in aggregate, have a material adverse effect on our business or our consolidated financial statements. However, litigation is inherently uncertain, and the outcome of these matters cannot be predicted with certainty. Accordingly, cash flows or results of operations could be materially affected in any particular period by the resolution of one or more of these matters. We are currently subject to a putative class action complaint and related derivative claims, which we believe is without merit and intend to vigorously defend against. See Part I, Item 3. "Legal Proceedings" for additional information regarding the class action complaint. Letters of Credit We had $20.6 million and $10.8 million of secured letters of credit outstanding as of December 31, 2022 and 2021, respectively. These primarily relate to our office space leases and are fully collateralized by certificates of deposit which we record in restricted cash on our consolidated balance sheets
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Stockholders' Equity and Employee Compensation Plans |
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Dec. 31, 2022 | |
| Equity [Abstract] | |
| Stockholders' Equity and Employee Compensation Plans | Stockholders’ Equity and Employee Compensation Plans Stockholders' Equity Employee Compensation Plans Stock Award Plans Our stock compensation plans allow us to grant or assume through acquisition stock options and RSUs, including PVUs, to employees and non-employee directors. As of December 31, 2022, we had reserved a total of 99.3 million shares of common stock under our collective compensation plans, of which 25.5 million were available for future grant. Employee Stock Purchase Plan We offer an ESPP that permits employees to purchase shares of our common stock through payroll deductions of up to 15% of their earnings. Unless otherwise determined by the administrator, the purchase price of the shares will be 85% of the lower of the fair market value of our common stock on (i) the first day of an offering or (ii) on the date of purchase. No participant may purchase more than 1,000 shares of common stock in any one offering period. Participants may end their participation at any time during an offering and will be paid their accrued contributions that have not yet been used to purchase shares. Participation ends automatically upon termination of employment with us. The maximum number of shares of our common stock that may be issued under our 2020 ESPP is 10.9 million shares, of which 10.3 million were available for issuance as of December 31, 2022. Share Repurchase Program In July 2022, our board of directors approved our Share Repurchase Program, which authorized the repurchase of up to $2.5 billion of shares of our common stock through November 2024. Under the Share Repurchase Program, share repurchases may be made by us from time to time in privately negotiated transactions or in open market transactions. The Share Repurchase Program does not require us to purchase a minimum number of shares, and may be suspended, modified, or discontinued at any time without prior notice. In 2022, we repurchased 42.7 million shares of common stock under our Share Repurchase Program in open market transactions for an aggregate purchase price of $1.5 billion. As of December 31, 2022, $1.0 billion remained available for future share repurchases under the Share Repurchase Program. Employee 401(k) Plan We have a qualified defined contribution plan under Section 401(k) of the Internal Revenue Code. U.S. full-time employees qualify for participation in the plan. Contribution to the plan is under our discretion. For the years ended December 31, 2022, 2021, and 2020, we contributed and expensed $10.8 million, $9.1 million, and $6.8 million, respectively, to the plan. Defined Contribution Pension Plan For other operations outside the United States, we have a defined contribution pension plan. We contribute up to 10% of total salary into the plan annually when employees contribute to the plan. For the years ended December 31, 2022, 2021, and 2020, we contributed and expensed $24.7 million, $18.3 million, and $10.6 million, respectively, to the plan.
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| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation | Stock‑Based Compensation We recorded stock-based compensation expense related to grants to employees on our consolidated statements of operations as follows (in thousands):
Unrecognized compensation expense is as follows (in thousands, except for weighted-average remaining vesting period):
In future periods, stock-based compensation expense may increase as we issue additional equity-based awards to continue to attract and retain employees. Stock Options A summary of our stock option activity is as follows:
(1) Includes assumed equity awards from the ironSource Merger. A summary of intrinsic and fair values of our stock options is as follows (in thousands, except fair value amounts):
(1) The intrinsic value is the difference between the estimated fair value of our common stock on the date of exercise and the exercise price for in-the-money options. The calculated grant-date fair value of stock options granted was estimated using the Black-Scholes option-pricing model with the following assumptions:
Restricted Stock Units A summary of our RSU, including PVU, activity is as follows:
(1) Includes assumed equity awards from the ironSource Merger. The total fair value of RSUs vested as of the vesting dates during the years ended December 31, 2022, 2021, and 2020 was $322.5 million, $442.1 million, and $85.9 million, respectively. No PVUs have vested during the year ended December 31, 2022. Price-Vested Units In October 2022, our board of directors granted to certain of our executive officers a total of 989,880 PVUs for which vesting is subject to the fulfillment of both a service period that extends up to four years and the achievement of a stock price hurdle during the relevant performance period that extends up to seven years. The fair value of each PVU award is estimated using a Monte Carlo stimulation that uses assumptions determined on the date of grant. The following table summarizes the weighted-average assumptions relating to our PVUs:
Employee Stock Purchase Plan The fair value of shares offered under our ESPP was determined using the Black-Scholes option pricing model with the following weighted-average assumptions:
Additional information related to the ESPP is provided below (in thousands, except per share amounts):
No shares were issued under the ESPP during the year ended December 31, 2021.
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Income Taxes |
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| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Taxes | Income Taxes Loss before provision for income taxes consisted of the following for the years ended December 31, 2022, 2021, and 2020 (in thousands):
The components of the provision for income taxes consists of the following for the years ended December 31, 2022, 2021, and 2020 (in thousands):
Reconciliations of the income tax provision at the U.S. federal statutory tax rate to the provision for income taxes are as follows (in thousands):
Our income tax provision for the year ended December 31, 2022 was primarily driven by the earnings of our foreign subsidiaries, which are taxed at rates that differ from the U.S. statutory rate, losses that cannot be benefited due to the valuation allowance against the net deferred tax assets of our United States, Denmark, U.K., and China entities, base-erosion and anti-abuse tax ("BEAT") mainly arising as a result of the U.S. mandatory research and development capitalization rules. Following our acquisition of ironSource, the Company undertook certain tax restructuring efforts as part of the integration of the acquired business. As a result of the restructuring, we recognized $192.2 million of US federal and state deferred tax liabilities, which reduce our need for a valuation allowance in the U.S., except for timing differences that resulted in $11.6 million of income tax expense. Our income tax provision for the year ended December 31, 2021 was primarily driven by the earnings of our foreign subsidiaries, which are taxed at rates that differ from the U.S. statutory rate, losses that cannot be benefited due to the valuation allowance against the net deferred tax assets of our United States, Denmark, and U.K. entities, gain recognized from an intercompany transaction with our subsidiary in Israel, and an income tax benefit recognized as a result of a partial release of our valuation allowance against our deferred tax assets in connection with business combinations. The types of temporary differences that give rise to significant portions of our deferred tax assets and liabilities as of December 31, 2022 and 2021 are set forth below (in thousands):
(1) Certain prior year amounts have been reclassified to conform to current year presentation. In the tax year ended December 31, 2022, we capitalized certain research and development costs incurred by our U.S. and foreign subsidiaries, which resulted in a deferred tax asset of $255.1 million. This deferred tax asset associated with capitalized research and development costs is offset by a valuation allowance and future taxable temporary differences. The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods. We regularly assess the ability to realize our deferred tax assets and establish a valuation allowance if it is more-likely-than-not that some portion of the deferred tax assets will not be realized. We weigh all available positive and negative evidence, including our earnings history and results of recent operations, scheduled reversals of deferred tax liabilities, projected future taxable income, and tax planning strategies. Due to the weight of objectively verifiable negative evidence, including our history of losses, we believe that it is more likely than not that our U.S. federal, state, and certain foreign deferred tax assets will not be realized as of December 31, 2022 and 2021, and as such, we have maintained a full valuation allowance against such deferred tax assets. In the event we determine that we will be able to realize all or part of our net deferred tax assets in the future, the valuation allowance against deferred tax assets will be reversed in the period in which we make such determination. The release of a valuation allowance against deferred tax assets may cause greater volatility in the effective tax rate in the periods in which the valuation allowance is released. The valuation allowance against our U.S. federal, state and foreign deferred tax assets increased by $64.5 million and $302.3 million in the years ended December 31, 2022 and 2021, respectively. The increase in the valuation allowance in the years ended December 31, 2022 and 2021 was primarily related to deferred tax assets for which insufficient positive evidence exists to support their realizability, including NOL carryforwards, capitalized research and development expenses, and credits for research and development. Our NOL carryforwards for U.S. federal, state, and foreign purposes were $785.8 million, $415.0 million, and $1.1 billion, respectively, with most of our foreign NOL carryforward balances arising from Denmark and the U.K. jurisdictions. The NOL carryforwards, if not utilized, will begin to expire in 2032, 2024, and 2039, respectively. Our U.S. federal, state, and foreign research and development credit carryforwards were $90.0 million, $44.4 million and $10.4 million, respectively. The U.S. federal credit carryforwards, if not utilized, will begin to expire in 2032, while the California credit carryforwards have no expiration. The foreign credit carryforwards, if not utilized, will begin to expire in 2041. Federal and state tax laws impose restrictions on the utilization of NOL and research and development credit carryforwards in the event of a change in ownership of our business as defined by the Internal Revenue Code, Sections 382 and 383. Under Section 382 and 383 of the Code, substantial changes in our ownership may limit the amount of NOL and research and development credit carryforwards that are available to offset taxable income. The annual limitation would not automatically result in the loss of NOL or research and development credit carryforwards but may limit the amount available in any given future period. We are maintaining our reinvestment assertion with respect to foreign earnings for the period ended December 31, 2022, which is that all earnings are permanently reinvested for all jurisdictions. Based on our reinvestment assertion and losses from our foreign entities, we have not recorded a liability for the period ended December 31, 2022. A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits, excluding accrued net interest and penalties, is as follows (in thousands):
(1) Certain prior year amounts have been reclassified to conform to current year presentation. As of December 31, 2022 and 2021, we had unrecognized tax benefits of $176.6 million and $110.3 million, respectively, of which $24.3 million and $11.9 million would affect the effective tax rate if recognized. We recognize interest and penalties related to our unrecognized tax benefits within our provision for income taxes. The amount of interest and penalties accrued as of December 31, 2022 and 2021 were $3.0 million and $2.5 million. We are subject to taxation in the United States and various other state and foreign jurisdictions. The material jurisdictions in which we are subject to potential examination include the United States, Denmark, and Israel. Our 2012 and subsequent tax years remain open to examination by the Internal Revenue Service. Our 2018 and subsequent tax years remain open to examination in Israel and Denmark. We believe that adequate amounts have been reserved in accordance with ASC 740 for any adjustments to the provision for income taxes or other tax items that may ultimately result from examinations. The timing of the resolution, settlement, and closure of any audits is highly uncertain, and it is reasonably possible that the balance of gross unrecognized tax benefits could significantly change in the next 12 months. Given the number of years remaining that are subject to examination, we are unable to estimate the full range of possible adjustments to the balance of gross unrecognized tax benefits. If the taxing authorities prevail in the assessment of additional tax due, the assessed tax, interest, and penalties, if any, could have a material adverse impact on our financial position, results of operations, or cash flows.
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Net Loss per Share of Common Stock |
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| Net Loss per Share of Common Stock | Net Loss per Share of Common Stock Basic and diluted net loss per share is the same for all periods presented because the effects of potentially dilutive items were antidilutive given our net loss in each period. The following table presents potentially dilutive items excluded from the computation of diluted net loss per share for the following periods (in thousands) because the impact of including them would have been antidilutive:
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Accounting Policies (Policies) |
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| Accounting Policies [Abstract] | |
| Basis of Presentation | Basis of Presentation and ConsolidationWe prepared the accompanying consolidated financial statements in accordance with U.S. generally accepted accounting principles ("GAAP"). |
| Consolidation | The consolidated financial statements include the accounts of Unity Software Inc., its wholly owned subsidiaries, and entities consolidated under the voting interest model. We have eliminated all intercompany balances and transactions. In our opinion, the information contained herein reflects all adjustments necessary for a fair presentation of our results of operations, financial position, cash flows, and stockholders’ equity. All such adjustments are of a normal, recurring nature. |
| Use of Estimates | Use of Estimates The preparation of 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 reporting period. For us, these estimates include, but are not limited to, revenue recognition, the measurement of liabilities for uncertain tax positions and deferred tax assets and liabilities, the fair value of tangible and intangible assets acquired and liabilities assumed through business combinations, the fair value of redeemable noncontrolling interests, the fair value of equity awards assumed and replaced in connection with the acquisition of ironSource, and customer life for capitalized commissions. Actual results could differ from those estimates, and such differences could be material to our financial position and results of operations.
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| Revenue Recognition | Revenue Recognition Revenue is measured based on the amount of consideration that we expect to receive from our customers. Revenue excludes sales and indirect taxes. In arrangements where we have multiple performance obligations, the transaction price is allocated to each performance obligation using the relative stand-alone selling price ("SSP"). We generally determine SSP based on observable pricing. When observable pricing is not available, we use cost plus margin analysis to determine SSP. During the fourth quarter of 2022, we completed our acquisition of ironSource. This resulted in adjustments to our internal reporting structure to focus on two complementary and interconnected solutions: (1) Create Solutions and (2) Grow Solutions. Create Solutions Create Solutions are a combination of software and services that enable customers to edit, run, and iterate real-time 2D and 3D experiences. Revenue is primarily derived from Create Solution Subscriptions, Enterprise Support, Professional Services, and Cloud and Hosting services. Create Solutions subscriptions provide customers with software, embedded cloud functionality, and software updates. As the software and software updates are highly interdependent and interrelated and these services have the same pattern of performance as the embedded cloud functionality, we combine these promises and account for them as a single performance obligation that is recognized over time. Enterprise customers may purchase an enhanced support offering ("Enterprise Support") that is sold separately and is considered its own performance obligation. Create Solutions subscriptions and enterprise support typically have a term of to five years and are billed in monthly, quarterly and annual installments, and recognized ratably over the service period. Professional services revenue is primarily composed of consulting, platform integration, training, and custom application and workflow development. Revenue is recognized as services are rendered. We typically invoice our customers on a milestone basis or when promised services are delivered. Our Cloud and Hosting service arrangements are based on a fixed fee or consumption-based model. For fixed fee arrangements revenue is recognized ratably over the contractual service term as our obligations are generally fulfilled evenly throughout the hosting period. For consumption-based arrangements, we recognize revenue as services are provided. Grow Solutions Grow Solutions revenue primarily consists of advertising services provided through our monetization solutions that allow publishers, which include mobile application developers, original equipment manufacturers ("OEM") and mobile carriers to sell available advertising inventory on their mobile applications or hardware devices to advertisers for in-app or on-device placements. We present revenue on a net basis for sales where we are facilitating the transaction between advertisers and publishers and do not have control over in-app or on-device placement and on a gross basis for advertising sales where we are the publisher and have control of the in-app or on-device placement. Advertising revenue is recognized at a point in time when the agreed upon action is completed or when the advertisement is displayed to users. Cost of Revenue Cost of revenue for the delivery of software services, professional services, and advertising consists primarily of hosting expenses, personnel costs (including salaries, stock-based compensation, and benefits) for employees associated with our product support and professional services organizations, credit card fees, third-party license fees, and allocated shared costs, including facilities, IT, and security costs, as well as amortization of related capitalized software costs and depreciation of related property and equipment and amortization if acquired intangible assets. Sales CommissionsSales commissions that have a benefit beyond one year are capitalized and amortized on a straight line method over the expected period of benefit, which is generally three years. Additionally, we have performance obligations associated with commitments in customer contracts to perform in the future that had not yet been recognized in our consolidated financial statements. For contracts with original terms that exceed one year, those commitments not yet recognized were $620.0 million and relate primarily to Create Solutions subscriptions, Enterprise Support, and Strategic Partnerships. These commitments generally extend over the next to five years and we expect to recognize approximately $266.5 million or 43% of this revenue during the next 12 months.
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| Stock-Based Compensation | Stock-Based Compensation Stock-based compensation expense related to our employees and non-employee directors is calculated based on the fair value on the grant date. For restricted stock units ("RSUs"), fair value is based on the closing price of our common stock on the grant date. The fair value of stock options and purchases made under the 2020 Employee Stock Purchase Plan ("2020 ESPP") is estimated using the Black-Scholes pricing model. This model requires certain assumptions be used as inputs, such as the fair value of the underlying common stock, expected term of the option before exercise, expected volatility of our common stock, expected dividend yield, and a risk-free interest rate. Options granted during the year have a maximum contractual term of ten years. We have limited historical stock option activity and therefore estimate the expected term of stock options granted using the simplified method, which represents the average of the contractual term of the stock option and its weighted-average vesting period. The expected volatility of stock options and employee stock purchase plan ("ESPP") purchases are based upon our historical volatility and the historical volatility of a number of publicly traded companies in similar industries over similar durations. We have historically not declared or paid any dividends and do not currently expect to do so in the foreseeable future. The risk-free interest rates used are based on the U.S. Department of Treasury ("U.S. Treasury") yield in effect at the time of grant for zero-coupon U.S. Treasury notes with maturities approximately equal to the expected term of the stock options and ESPP purchases. The fair value of price-vested units ("PVUs"), which are RSUs that contain both service-based and market-based vesting conditions, is estimated using the Monte Carlo simulation model and is based on the closing stock price of our common stock on the grant date modified to reflect the impact of the market-based vesting condition, including the estimated payout level based on that condition. We do not adjust compensation cost for subsequent changes in the expected outcome of the market-based vesting conditions. In connection with the acquisition of ironSource, we estimated the fair value of the assumed equity awards using a binomial lattice model. The assumed equity awards relating to future services is being recognized over the remaining service period. We recognize stock-based compensation expense for RSUs, stock options, and PVUs, on a straight-line basis, over the requisite service period, generally, a vesting period of one year to four years. We recognize stock-based compensation expense related to the 2020 ESPP on a straight-line basis over the offering period. We do not estimate forfeitures but instead account for them as they occur.
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| Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash We consider all highly liquid investments with original maturities of three months or less at date of purchase to be cash equivalents. Our cash equivalents include money market funds, time deposits, and commercial paper. Restricted cash consists of secured letters of credit issued in connection with our operating leases and other amounts held in escrow. Restrictions typically lapse at the end of the lease term, and restricted cash is classified as current or non-current based on the remaining term of the restriction.
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| Short-Term Investments | Short-term InvestmentsOur short-term investments consist of investments in short-term deposits, U.S. treasury securities, asset-backed securities, corporate bonds, commercial paper, and supranational bonds. We classify our investments in debt securities as available-for-sale at the time of purchase. We consider all debt securities as available for use in current operations, including those with maturity dates beyond one year, and therefore classify these securities as current assets in the consolidated balance sheets. Unrealized gains and losses, net of taxes, are included in accumulated other comprehensive loss, which is reflected as a separate component of stockholders’ equity in our consolidated balance sheets. During the year ended December 31, 2022, we sold the entirety of our available-for-sale debt securities portfolio |
| Accounts Receivable | Accounts ReceivableAccounts receivable are recorded at the original amount, net of allowances for uncollectible amounts. We estimate losses on uncollectible amounts based on expected losses, including our historical experience of actual losses. The estimated losses on uncollectible amounts are recorded in general and administrative expense on our consolidated statements of operations. |
| Credit Risk and Concentrations | Credit Risk and Concentrations Financial instruments that potentially subject us to a concentration of credit risk consist primarily of cash and cash equivalents, short-term investments, and accounts receivable. We place our domestic and foreign cash and cash equivalents, as well as our short-term investments, with large, creditworthy financial institutions. Balances in these accounts may exceed federally insured limits at times. In general, we do not require our customers to provide collateral or other security to support accounts receivable. To reduce credit risk, management performs credit evaluations of our customers’ financial condition, as warranted, and continually analyzes the allowance for doubtful accounts, which we maintain based upon the expected collectability of accounts receivable.
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| Fair Value of Financial Instruments | Fair Value of Financial Instruments We define fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, we consider the principal or most advantageous market in which to transact and the market-based risk. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash and cash equivalents, short-term investments, accounts receivable, accounts payable, and accrued liabilities, due to their short-term nature.
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| Comprehensive Loss | Comprehensive Loss Comprehensive loss is comprised of net loss and other comprehensive loss. Our other comprehensive loss includes unrealized gains and losses on available-for-sale investments, derivative instruments, and foreign currency translation adjustment.
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| Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost less accumulated depreciation and amortization, computed using the straight-line method based on the estimated useful lives of the assets, which is generally three years for computer and other hardware and five years for furniture. Leasehold improvements are amortized over the shorter of their estimated useful life or the remaining term of the lease. Software licenses are amortized over the shorter of their estimated useful life or license term, which is generally to five years. The costs of repairs and maintenance are expensed when incurred, while expenditures for refurbishments and improvements that significantly add to the productive capacity or extend the useful life of an asset are capitalized. Upon retirement or sale, the cost of assets disposed of and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is credited or charged to the consolidated statement of operations.
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| Leases | Leases Primarily all of our leases have been categorized as operating leases at inception. On certain of our lease agreements, we may receive rent holidays and other incentives provided by the landlord. We recognize lease costs on a straight-line basis without regard to deferred payment terms, such as rent holidays, that defer the commencement date of required payments. Additionally, incentives we receive are treated as a reduction of our costs over the term of the agreement. Leasehold improvements are capitalized at cost and amortized over the lesser of their expected useful life or the non-cancellable term of the lease. We establish assets and liabilities for the present value of estimated future costs to retire long-lived assets at the termination or expiration of a lease. Such assets are depreciated over the lease period into operating expense, and the recorded liabilities are accreted to the future value of the estimated retirement costs.
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| Convertible Senior Notes and Capped Call Transactions | Convertible Senior Notes and Capped Call Transactions We account for each issuance of our Convertible Senior Notes as single liabilities measured at their amortized cost. Interest expense related to the amortization of debt issuance costs are recorded in other income and expense. We record the cost of capped call transactions as a reduction of our additional paid-in capital on our consolidated balance sheets. Capped call transactions will not be remeasured as long as they continue to meet the conditions for equity classification.
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| Goodwill and Intangible Assets | Goodwill and Intangible Assets We allocate the fair value of purchase consideration to the tangible assets acquired, liabilities assumed, and intangible assets acquired based on their estimated fair values as of the acquisition date. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Intangible assets, with the exception of certain contractual relationships, that have a finite life are amortized on a straight-line basis over their estimated useful lives, which typically range from to six years. Certain contractual relationships are amortized using an accelerated method of amortization, which reflects the pattern in which the economic benefits from the intangible assets are expected to be recognized. On an annual basis, we evaluate the estimated remaining useful life of acquired intangible assets and whether events or changes in circumstances warrant a revision to the remaining amortization period.
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| Segments | Segments We operate as a single operating segment. The chief operating decision maker is our Chief Executive Officer, who makes resource allocation decisions and assesses performance based on financial information presented on a consolidated basis, accompanied by disaggregated information of our revenue. Accordingly, we have determined that we have a single reportable segment and operating segment structure.
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| Capitalized Software Costs and Software Implementation Costs | Capitalized Software Costs and Software Implementation Costs We capitalize implementation costs incurred in our cloud computing service arrangements related to enterprise software solutions (“capitalized implementation costs”) and costs associated with customized internal‑use software systems that have reached the application development stage. Such capitalized costs include external direct costs utilized in developing or obtaining the applications and payroll and payroll‑related expenses for employees, who are directly associated with the development of the applications. We capitalize such costs during the application development stage, which begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. Capitalized software costs are amortized on a straight-line basis over their estimated useful life, which is generally to three years. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. Capitalized implementation costs are expensed over the term of the hosting arrangement, which is the fixed, non-cancellable term of the arrangement, plus any reasonably certain renewal periods. The current portion of capitalized implementation costs are included in prepaid expenses on the consolidated balance sheets, and the non-current portion of capitalized implementation costs are included in other assets on the consolidated balance sheets.Research and development costs related to internally developed software, which consist primarily of software development costs, are expensed as incurred. Based upon our product development process, technological feasibility is established upon completion of a working model. Costs incurred between completion of the working model and the point at which the product is ready for general release have not been significant. Therefore, all product development costs have been charged to research and development expense.
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| Impairment Analysis | Impairment Analysis We evaluate intangible assets and long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes but is not limited to significant adverse changes in business climate, market conditions, or other events that indicate an asset’s carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value. We evaluate and test the recoverability of our goodwill for impairment at least annually during our fourth quarter of each calendar year or more often if and when circumstances indicate that goodwill may not be recoverable.
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| Income Taxes | Income Taxes We are subject to income taxes in the United States and numerous foreign jurisdictions. Significant judgment is required in determining our provision for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws. We record an income tax expense (or benefit) for the anticipated tax consequences of the reported results of operations using the asset and liability method. Under this method, we recognize deferred income tax assets and liabilities for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as for NOL and tax credit carryforwards. Deferred tax assets and liabilities are measured using the tax rates that are expected to apply to taxable income for the years in which those tax assets and liabilities are expected to be realized or settled. We recognize the deferred income tax effects of a change in tax rates in the period of the enactment. We record a valuation allowance to reduce our deferred tax assets to the net amount that we believe is more likely than not to be realized. We consider all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income, and ongoing tax planning strategies in assessing the need for a valuation allowance. We recognize tax benefits from uncertain tax positions only if we believe that the position is more likely than not to be sustained on examination by the taxing authorities based on the technical merits of the position. Although we believe that we have adequately reserved for our uncertain tax positions (including net interest and penalties), we can provide no assurance that the final tax outcome of these matters will not be materially different. We make adjustments to these reserves in accordance with the income tax accounting guidance when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect our income tax expense (or benefit) in the period in which such determination is made, and could have a material impact on our financial condition and operating results. We recognize interest and penalties related to unrecognized tax benefits within income tax expense in the accompanying consolidated statement of operations. Accrued interest and penalties are included in income and other taxes payable on the consolidated balance sheets.
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| Translation of Foreign Currencies | Translation of Foreign Currencies The functional currency of the majority of our foreign subsidiaries is the U.S. dollar. Foreign currency transaction gains and losses are included in interest and other income (expense), net, on the consolidated statements of operations for the period. For U.S. dollar functional currency subsidiaries, all assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenue and expenses are translated at the average exchange rate during the period. Equity transactions are translated using historical exchange rates. For a foreign subsidiary where the local currency is the functional currency, adjustments to translate those statements into U.S. dollars are recorded in accumulated other comprehensive loss in stockholders’ equity.
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| Warranties and Indemnifications | Warranties and Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to customers, vendors, lessors, investors, directors, officers, employees and other parties with respect to certain matters. Indemnification may include losses from our breach of such agreements, services we provide, or third-party intellectual property infringement claims. These indemnifications may survive termination of the underlying agreement and the maximum potential amount of future indemnification payments may not be subject to a cap. As of December 31, 2022 and 2021, there were no known events or circumstances that have resulted in a material indemnification liability to us and we did not incur material costs to defend lawsuits or settle claims related to these indemnifications. We generally do not offer warranties for our software products. With certain customers, we will warrant that our software products will operate without material error and/or substantially in conformity with product documentation. We have not experienced any warranty claims to date, and no liabilities have been recorded as of December 31, 2022 and 2021.
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| Advertising Costs | Advertising CostsAdvertising costs are expensed as incurred as a component of sales and marketing expense in the consolidated statements of operations. |
Revenue (Tables) |
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| Schedule of Revenue by Source | The table below presents our revenue (in thousands) disaggregated by source, which also have similar economic characteristics. Our results for the years ended December 31, 2022, 2021, and 2020 have been adjusted to align with our focus on Create and Grow Solutions by including annual revenue of approximately $82.7 million, $74.8 million, and $70.0 million, respectively, related to Strategic Partnerships and Other in Create Solutions and moving annual revenue of approximately $125.6 million, $105.5 million, and $71.4 million, respectively, related to Unity Games Services from Operate Solutions to Create Solutions.
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| Schedule of Revenue by Geographic Area | The following table presents our revenue disaggregated by geography, based on the invoice address of our customers (in thousands):
(1) Greater China includes China, Hong Kong, and Taiwan. (2) Europe, the Middle East, and Africa ("EMEA"). (3) Asia-Pacific, excluding Greater China ("APAC"). (4) Canada and Latin America ("Other Americas").
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Financial Instruments (Tables) |
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| Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Cash Equivalents and Marketable Securities | The following table summarizes, by major security type, our restricted cash, cash equivalents, and short-term investments that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as of December 31, 2022 (in thousands):
Cash equivalents and short-term investments consisted of the following as of December 31, 2021 (in thousands):
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| Schedule of Cash Equivalents | The following table summarizes, by major security type, our restricted cash, cash equivalents, and short-term investments that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy as of December 31, 2022 (in thousands):
Cash equivalents and short-term investments consisted of the following as of December 31, 2021 (in thousands):
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Investment in Unity China (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||
| Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
| Schedule of Redeemable Noncontrolling Interest | The following table presents the changes in redeemable noncontrolling interests (in thousands):
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Acquisitions (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combination and Asset Acquisition [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid for ironSource and the estimated fair values of the assets acquired at the acquisition date (in thousands):
(1) Goodwill reflects the expected future benefits of certain synergies and acquired assembled workforce, which does not qualify for separate recognition as an identifiable intangible asset. The goodwill balance is not subject to amortization and is not deductible for U.S. income tax purposes.
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| Summary of Unaudited Pro Forma Financial Information | Consequently, actual results will differ from the unaudited pro forma financial information presented below (in thousands):
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Goodwill and Intangible Assets (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Goodwill | The following table presents the changes in the carrying amount of goodwill for the years ended December 31, 2022 and 2021 (in thousands):
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| Schedule of Intangible Assets | The following tables present details of our intangible assets, excluding goodwill (in thousands, except for weighted-average useful life):
(1) Based on weighted-average useful life established as of the acquisition date.
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| Schedule of Finite-lived Intangible Assets Amortization Expense | The following table presents the amortization of finite-lived intangible assets included on our consolidated statements of operations (in thousands):
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| Schedule of Finite-Lived Intangible Assets Future Amortization Expense | As of December 31, 2022, the estimated future amortization of finite-lived intangible assets for each of the next five years and thereafter was as follows (in thousands):
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Balance Sheet Components (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Property and Equipment | The following tables provide details of selected balance sheet items (in thousands):
(1) The following table presents the depreciation and amortization of property and equipment included on our consolidated statements of operations (in thousands):
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| Schedule of Long-lived Assets by Geographic Areas | The following table presents our long-lived assets, net, disaggregated by geography, which consists of our property and equipment, net, but excludes internally developed software and purchased software (in thousands):
(1) No individual country, other than those disclosed above, exceeded 10% of our total long-lived assets, net, for any period presented.
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| Schedule of Accrued Expenses and Current Liabilities |
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Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Lease Cost | Components of lease expense were as follows (in thousands):
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| Schedule of Lessee Assets and Liabilities | Supplemental balance sheet information related to leases was as follows (in thousands, except weighted-average figures):
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| Schedule of Future Minimum Lease Payments | As of December 31, 2022, our lease liabilities were as follows (in thousands):
(1) Excludes future minimum payments for leases which have not yet commenced as of December 31, 2022.
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Borrowings (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Convertible Note | The table below summarizes the principal and unamortized debt issuance cost for the 2027 Notes (in thousands):
The table below summarizes the principal and unamortized debt issuance cost for the 2026 Notes (in thousands):
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Commitment and Contingencies (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Maturities of Future Purchase Obligations | The following table summarizes our non-cancelable contractual commitments as of December 31, 2022 (in thousands):
(1) The operating lease obligation consists of obligations for real estate (2) The substantial majority of our purchase commitments are related to agreements with our data center hosting providers. (3) Convertible notes due 2026 and 2027. See Note 9, "Borrowings," of the Notes to Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K for further discussion.
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Stock-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Stock-Based Compensation Expense | We recorded stock-based compensation expense related to grants to employees on our consolidated statements of operations as follows (in thousands):
Unrecognized compensation expense is as follows (in thousands, except for weighted-average remaining vesting period):
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| Schedule of Stock Options | A summary of our stock option activity is as follows:
(1) Includes assumed equity awards from the ironSource Merger.
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| Summary of Intrinsic and Fair Values of Stock Options | A summary of intrinsic and fair values of our stock options is as follows (in thousands, except fair value amounts):
(1) The intrinsic value is the difference between the estimated fair value of our common stock on the date of exercise and the exercise price for in-the-money options.
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| Summary of Valuation Assumptions of Stock Options | The calculated grant-date fair value of stock options granted was estimated using the Black-Scholes option-pricing model with the following assumptions:
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| Summary of Restricted Stock Unit Activity | A summary of our RSU, including PVU, activity is as follows:
(1) Includes assumed equity awards from the ironSource Merger.
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| Summary of PVU Valuation Assumptions | The following table summarizes the weighted-average assumptions relating to our PVUs:
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| Summary of Valuation Assumptions of Employee Stock Purchase Plan | The fair value of shares offered under our ESPP was determined using the Black-Scholes option pricing model with the following weighted-average assumptions:
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| Summary of Employee Stock Purchase Plan | Additional information related to the ESPP is provided below (in thousands, except per share amounts):
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Loss Before Provision for Income Taxes | Loss before provision for income taxes consisted of the following for the years ended December 31, 2022, 2021, and 2020 (in thousands):
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| Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for income taxes consists of the following for the years ended December 31, 2022, 2021, and 2020 (in thousands):
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| Schedule of Income Tax Provision Reconciliation | Reconciliations of the income tax provision at the U.S. federal statutory tax rate to the provision for income taxes are as follows (in thousands):
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| Summary of Deferred Tax Assets and Liabilities | The types of temporary differences that give rise to significant portions of our deferred tax assets and liabilities as of December 31, 2022 and 2021 are set forth below (in thousands):
(1) Certain prior year amounts have been reclassified to conform to current year presentation.
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| Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits, excluding accrued net interest and penalties, is as follows (in thousands):
(1) Certain prior year amounts have been reclassified to conform to current year presentation.
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Net Loss per Share of Common Stock (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share | The following table presents potentially dilutive items excluded from the computation of diluted net loss per share for the following periods (in thousands) because the impact of including them would have been antidilutive:
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Accounting Policies - Revenue Recognition (Details) |
12 Months Ended |
|---|---|
|
Dec. 31, 2022
source
| |
| Revenue, Major Customer [Line Items] | |
| Number of revenue sources | 2 |
| Minimum | |
| Revenue, Major Customer [Line Items] | |
| Revenue term | 1 year |
| Maximum | |
| Revenue, Major Customer [Line Items] | |
| Revenue term | 5 years |
Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Accounting Policies [Abstract] | ||
| Restricted cash | $ 20.6 | $ 10.8 |
Accounting Policies - Accounts Receivable, Net (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Accounting Policies [Abstract] | ||
| Accounts receivable, allowances | $ 9.4 | $ 5.4 |
Accounting Policies - Property and Equipment, Net (Details) |
12 Months Ended |
|---|---|
Dec. 31, 2022 | |
| Computer and other hardware | |
| Property, Plant and Equipment [Line Items] | |
| Useful life | 3 years |
| Furniture | |
| Property, Plant and Equipment [Line Items] | |
| Useful life | 5 years |
| Software and Software Development | Minimum | |
| Property, Plant and Equipment [Line Items] | |
| Useful life | 3 years |
| Software and Software Development | Maximum | |
| Property, Plant and Equipment [Line Items] | |
| Useful life | 5 years |
Accounting Policies - Goodwill and Intangible Assets (Details) |
12 Months Ended |
|---|---|
Dec. 31, 2022 | |
| Minimum | |
| Finite-Lived Intangible Assets [Line Items] | |
| Intangible assets useful life | 3 years |
| Maximum | |
| Finite-Lived Intangible Assets [Line Items] | |
| Intangible assets useful life | 6 years |
Accounting Policies - Segments (Details) |
12 Months Ended |
|---|---|
|
Dec. 31, 2022
segment
| |
| Accounting Policies [Abstract] | |
| Number of operating segments | 1 |
Accounting Policies - Capitalized Software Costs and Software Implementation Costs (Details) - USD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Property, Plant and Equipment [Line Items] | ||
| Capitalized software costs | $ 5.7 | $ 1.2 |
| Capitalized implementation costs | $ 5.9 | $ 4.7 |
| Minimum | Internally developed and purchased software | ||
| Property, Plant and Equipment [Line Items] | ||
| Useful life | 2 years | |
| Maximum | Internally developed and purchased software | ||
| Property, Plant and Equipment [Line Items] | ||
| Useful life | 3 years | |
Accounting Policies - Advertising Costs (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Accounting Policies [Abstract] | |||
| Advertising expense | $ 18.8 | $ 24.2 | $ 12.3 |
Revenue - Narrative (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Disaggregation of Revenue [Line Items] | |||
| Revenue | $ 1,391,024 | $ 1,110,526 | $ 772,445 |
| Create Solutions | |||
| Disaggregation of Revenue [Line Items] | |||
| Revenue | 716,078 | 506,920 | 372,717 |
| Create Solutions | Reclassification from Strategic Partner Ships and Other to Create Solutions | |||
| Disaggregation of Revenue [Line Items] | |||
| Revenue | 82,700 | 74,800 | 70,000 |
| Create Solutions | Reclassification from Operate Solutions to Create Solutions | |||
| Disaggregation of Revenue [Line Items] | |||
| Revenue | 125,600 | 105,500 | 71,400 |
| Strategic Partnerships and Other | Reclassification from Strategic Partner Ships and Other to Create Solutions | |||
| Disaggregation of Revenue [Line Items] | |||
| Revenue | (82,700) | (74,800) | (70,000) |
| Operate Solutions | Reclassification from Operate Solutions to Create Solutions | |||
| Disaggregation of Revenue [Line Items] | |||
| Revenue | $ (125,600) | $ (105,500) | $ (71,400) |
Revenue - Disaggregation of Revenue By Source (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Disaggregation of Revenue [Line Items] | |||
| Revenue | $ 1,391,024 | $ 1,110,526 | $ 772,445 |
| Create Solutions | |||
| Disaggregation of Revenue [Line Items] | |||
| Revenue | 716,078 | 506,920 | 372,717 |
| Grow Solutions | |||
| Disaggregation of Revenue [Line Items] | |||
| Revenue | $ 674,946 | $ 603,606 | $ 399,728 |
Revenue - Disaggregation of Revenue by Geographic Area (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Disaggregation of Revenue [Line Items] | |||
| Revenue | $ 1,391,024 | $ 1,110,526 | $ 772,445 |
| United States | |||
| Disaggregation of Revenue [Line Items] | |||
| Revenue | 348,238 | 266,825 | 197,343 |
| Greater China | |||
| Disaggregation of Revenue [Line Items] | |||
| Revenue | 185,758 | 169,330 | 111,037 |
| EMEA | |||
| Disaggregation of Revenue [Line Items] | |||
| Revenue | 488,761 | 414,902 | 279,344 |
| APAC | |||
| Disaggregation of Revenue [Line Items] | |||
| Revenue | 327,433 | 222,348 | 149,527 |
| Other Americas | |||
| Disaggregation of Revenue [Line Items] | |||
| Revenue | $ 40,834 | $ 37,121 | $ 35,194 |
Revenue - Sales Commissions (Details) - USD ($) |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Disaggregation of Revenue [Line Items] | ||
| Amortization period | 3 years | |
| Capitalized contract cost, amortization | $ 9,400,000 | $ 5,600,000 |
| Capitalized contract cost, impairment loss | 0 | 0 |
| Prepaid Expenses and Other Current Assets | ||
| Disaggregation of Revenue [Line Items] | ||
| Capitalized contract costs | 8,800,000 | 7,900,000 |
| Other Assets | ||
| Disaggregation of Revenue [Line Items] | ||
| Capitalized contract costs | $ 5,300,000 | $ 8,700,000 |
Revenue - Contract Balances (Details) - USD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Revenue from Contract with Customer [Abstract] | ||
| Unbilled receivables | $ 37.5 | $ 28.3 |
| Revenue recognized | $ 137.4 |
Revenue - Remaining Performance Obligations (Details) $ in Millions |
12 Months Ended |
|---|---|
|
Dec. 31, 2022
USD ($)
| |
| Disaggregation of Revenue [Line Items] | |
| Revenue, remaining performance obligation, amount | $ 620.0 |
| Minimum | |
| Disaggregation of Revenue [Line Items] | |
| Commitment term | 1 year |
| Maximum | |
| Disaggregation of Revenue [Line Items] | |
| Commitment term | 5 years |
| Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
| Disaggregation of Revenue [Line Items] | |
| Revenue, remaining performance obligation, amount | $ 266.5 |
| Revenue, remaining performance obligation, percentage | 43.00% |
| Recognition period | 12 months |
Financial Instruments - Narrative (Details) $ in Millions |
12 Months Ended |
|---|---|
|
Dec. 31, 2022
USD ($)
| |
| Debt Securities, Available-for-sale [Line Items] | |
| Equity investments | $ 31.1 |
| Equity method investment | 15.6 |
| Fair value, market approach | $ 15.5 |
| Maximum | |
| Debt Securities, Available-for-sale [Line Items] | |
| Ownership interest less than | 20.00% |
Investment in Unity China (Details) $ in Millions |
1 Months Ended |
|---|---|
|
Aug. 31, 2022
USD ($)
| |
| Third Party Investors | |
| Noncontrolling Interest [Line Items] | |
| Redemption value | $ 217.9 |
| Unity China | Third Party Investors | |
| Noncontrolling Interest [Line Items] | |
| Noncontrolling interest, percentage sold | 20.50% |
| Proceeds from sale of ownership | $ 196.5 |
| Initial public offering threshold value | 3,600.0 |
| Guaranteed floor amount | $ 278.0 |
| Redemption right term | 5 years |
| Unity China | Management Investor | |
| Noncontrolling Interest [Line Items] | |
| Noncontrolling interest, percentage sold | 1.50% |
| Proceeds from sale of ownership | $ 14.4 |
Investment in Unity China - Noncontrolling Interests (Details) $ in Thousands |
12 Months Ended |
|---|---|
|
Dec. 31, 2022
USD ($)
| |
| Increase (Decrease) in Temporary Equity [Roll Forward] | |
| Balance at beginning of period | $ 0 |
| Initial fair value measurement of investors' equity interest and redemption right | 217,900 |
| Net loss attributable to redeemable noncontrolling interests | (1,207) |
| Adjustments for redeemable noncontrolling interests | 2,870 |
| Balance at end of period | $ 219,563 |
Acquisitions - ironSource Acquisition (Details) - Iron Source Ltd - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Nov. 07, 2022 |
Dec. 31, 2022 |
|
| Business Acquisition [Line Items] | ||
| Shares issued as consideration (in shares) | 112,547,375 | |
| Fair value of common stock issued as consideration for business and asset acquisitions | $ 2,788,924 | |
| Equity awards rendered for services (in shares) | 17,326,341 | |
| Assumed equity awards | $ 126,700 | |
| Fair value of total consideration transferred | 2,915,624 | |
| Transaction costs | $ 33,000 | |
| Revenue | $ 120,300 | |
| Earnings | $ 5,400 |
Acquisitions - Summary of Iron Source Acquisitions (Details) - USD ($) $ in Thousands |
Nov. 07, 2022 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|---|---|---|---|---|
| Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
| Goodwill | $ 3,200,955 | $ 1,620,127 | $ 286,251 | |
| Iron Source Ltd | ||||
| Business Acquisition [Line Items] | ||||
| Common stock issued | $ 2,788,924 | |||
| Assumed equity awards | 126,700 | |||
| Fair value of total consideration transferred | 2,915,624 | |||
| Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||
| Cash and cash equivalents | 138,216 | |||
| Accounts receivable | 292,670 | |||
| Prepaid expenses and other | 44,457 | |||
| Property, plant, and equipment | 7,063 | |||
| Intangible assets, net | 1,270,000 | |||
| Short term investments | 103,831 | |||
| Other assets | 66,951 | |||
| Accounts payable | (25,681) | |||
| Accrued expenses and other | (99,419) | |||
| Publisher payables | (258,227) | |||
| Deferred revenue | (1,325) | |||
| Other long-term liabilities | (165,996) | |||
| Total identifiable net assets assumed | 1,372,540 | |||
| Goodwill | 1,543,084 | |||
| Total | $ 2,915,624 |
Acquisitions -MindKick, Inc. Acquisitions & Pending Acquisition (Details) - USD ($) $ in Thousands |
Jan. 28, 2022 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|---|---|---|---|---|
| Business Acquisition [Line Items] | ||||
| Goodwill | $ 3,200,955 | $ 1,620,127 | $ 286,251 | |
| MindKick, Inc. | ||||
| Business Acquisition [Line Items] | ||||
| Fair value of total consideration transferred | $ 46,600 | |||
| Cash consideration transferred | $ 26,700 | |||
| Shares issued as consideration (in shares) | 169,321 | |||
| Fair value of common stock issued as consideration for business and asset acquisitions | $ 16,100 | |||
| Additional shares (in shares) | 42,330 | |||
| Fair value of previously held interest | $ 3,700 | |||
| Goodwill | 37,000 | |||
| Intangible assets | 7,500 | |||
| Cash and cash equivalents | 2,800 | |||
| Net assets and liabilities | $ 700 |
Acquisitions - Pro Forma Information (Details) - Iron Source Ltd - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Unaudited pro forma financial information | ||
| Pro forma revenue | $ 2,016,557 | $ 1,660,432 |
| Pro forma net loss | $ (983,563) | $ (804,318) |
Acquisitions - 2021 Acquisitions (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2022 |
Dec. 31, 2020 |
|
| Business Acquisition [Line Items] | |||
| Goodwill | $ 1,620,127 | $ 3,200,955 | $ 286,251 |
| 2021 Acquisitions | |||
| Business Acquisition [Line Items] | |||
| Fair value of total consideration transferred | 2,100,000 | ||
| Goodwill | 1,300,000 | ||
| Intangible assets, net | $ 790,200 |
Goodwill and Intangible Assets - Changes in Goodwill (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Goodwill [Roll Forward] | ||
| Beginning balance | $ 1,620,127 | $ 286,251 |
| Goodwill acquired | 1,579,936 | 1,334,074 |
| Measurement period adjustment | 892 | (198) |
| Ending balance | $ 3,200,955 | $ 1,620,127 |
Goodwill and Intangible Assets - Amortization of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Goodwill and Intangible Assets Disclosure [Abstract] | |||
| Amortization expense | $ 172,551 | $ 33,483 | $ 17,755 |
Goodwill and Intangible Assets - Expected Amortization of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Goodwill and Intangible Assets Disclosure [Abstract] | ||
| 2023 | $ 394,582 | |
| 2024 | 404,639 | |
| 2025 | 360,835 | |
| 2026 | 307,580 | |
| 2027 | 454,598 | |
| Thereafter | 0 | |
| Intangible assets, net | $ 1,922,234 | $ 814,386 |
Balance Sheet Components - Schedule of Long Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Property, Plant and Equipment [Line Items] | ||
| Total long-lived assets, net | $ 113,334 | $ 104,111 |
| United States | ||
| Property, Plant and Equipment [Line Items] | ||
| Total long-lived assets, net | 32,172 | 36,718 |
| Canada | ||
| Property, Plant and Equipment [Line Items] | ||
| Total long-lived assets, net | 33,639 | 31,498 |
| United Kingdom | ||
| Property, Plant and Equipment [Line Items] | ||
| Total long-lived assets, net | 12,944 | 15,011 |
| EMEA, excluding United Kingdom | ||
| Property, Plant and Equipment [Line Items] | ||
| Total long-lived assets, net | 22,336 | 12,587 |
| Other | ||
| Property, Plant and Equipment [Line Items] | ||
| Total long-lived assets, net | $ 12,243 | $ 8,297 |
Balance Sheet Components - Schedule of Accrued Expenses and Current Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Property, Plant and Equipment [Abstract] | ||
| Accrued expenses | $ 107,075 | $ 85,281 |
| Accrued compensation | 121,654 | 83,936 |
| Income and other taxes payable | 97,610 | 64,759 |
| Accrued expenses and other | $ 326,339 | $ 233,976 |
Leases - Narrative (Details) - USD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Lessee, Lease, Description [Line Items] | ||
| Operating lease, weighted average remaining lease term | 5 years | 5 years 10 months 24 days |
| Operating lease, weighted average discount rate, percent | 4.00% | 4.30% |
| Lessee, operating lease, lease not yet commenced, undiscounted amount | $ 40.1 | |
| Minimum | ||
| Lessee, Lease, Description [Line Items] | ||
| Operating lease renewal term | 1 year | |
| Lessee, operating lease, lease not yet commenced, term | 5 years | |
| Maximum | ||
| Lessee, Lease, Description [Line Items] | ||
| Operating lease term | 9 years | |
| Operating lease renewal term | 5 years | |
| Operating lease termination period | 5 years | |
| Lessee, operating lease, lease not yet commenced, term | 10 years |
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Leases [Abstract] | ||
| Operating lease expense | $ 31,707 | $ 29,153 |
| Short-term lease expense | 1,317 | 728 |
| Variable lease expense | 5,528 | 5,048 |
| Sublease income | (221) | (325) |
| Total lease expense | $ 38,331 | $ 34,604 |
Leases - Schedule of Assets And Liabilities, Lessee (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Leases [Abstract] | ||
| Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
| Operating lease assets | $ 120,535 | $ 98,393 |
| Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other | Accrued expenses and other |
| Current operating lease liabilities | $ 34,469 | $ 23,729 |
| Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
| Long-term operating lease liabilities | $ 107,776 | $ 92,539 |
| Total operating lease liabilities | $ 142,245 | $ 116,268 |
Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Operating Leases | ||
| Gross lease liabilities | $ 157,097 | |
| Less: imputed interest | (14,852) | |
| Present value of lease liabilities | $ 142,245 | $ 116,268 |
Borrowings - Convertible Notes (Details) - Convertible Debt $ / shares in Units, $ in Millions |
1 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|
|
Nov. 30, 2022
USD ($)
$ / shares
|
Nov. 30, 2021
USD ($)
$ / shares
|
Dec. 31, 2022
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
| 2% Convertible Senior Notes Due 2027 | ||||
| Debt Instrument [Line Items] | ||||
| Proceeds from issuance of notes | $ 1,000.0 | |||
| Debt interest rate | 2.00% | |||
| Conversion ratio | 0.0204526 | |||
| Conversion price (USD per share) | $ / shares | $ 48.89 | |||
| Redemption price percentage | 100.00% | |||
| Interest expense related to amortization of debt | $ 2.9 | |||
| 0% Convertible Senior Notes Due 2026 | ||||
| Debt Instrument [Line Items] | ||||
| Proceeds from issuance of notes | $ 1,700.0 | |||
| Debt interest rate | 0.00% | |||
| Conversion ratio | 0.0032392 | |||
| Conversion price (USD per share) | $ / shares | $ 308.72 | |||
| Interest expense related to amortization of debt | $ 4.5 | $ 0.5 | ||
| Debt face amount | $ 1,700.0 | |||
Borrowings - Summary of Convertible Note (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Debt Instrument [Line Items] | ||
| Net carrying amount | $ 2,707,171 | $ 1,703,035 |
| 2% Convertible Senior Notes Due 2027 | Convertible Debt | ||
| Debt Instrument [Line Items] | ||
| Principal | 1,000,000 | |
| Unamortized debt issuance cost | (368) | |
| Net carrying amount | 999,632 | |
| 0% Convertible Senior Notes Due 2026 | Convertible Debt | ||
| Debt Instrument [Line Items] | ||
| Principal | 1,725,000 | |
| Unamortized debt issuance cost | (17,461) | |
| Net carrying amount | $ 1,707,539 |
Borrowings - Capped Call Transaction (Details) - 0% Convertible Senior Notes Due 2026 $ / shares in Units, shares in Millions, $ in Millions |
1 Months Ended |
|---|---|
|
Nov. 30, 2021
USD ($)
$ / shares
shares
| |
| Debt Instrument [Line Items] | |
| Net cost incurred | $ | $ 48.1 |
| Number of common shares (in shares) | shares | 5.6 |
| Strike price (USD per share) | $ 308.72 |
| Cap price (USD per share) | $ 343.02 |
Commitment and Contingencies - Future Purchase Obligations (Details) $ in Thousands |
Dec. 31, 2022
USD ($)
|
|---|---|
| Operating leases | |
| Total | $ 157,097 |
| 2023 | 39,272 |
| 2024-2025 | 63,226 |
| 2026-2027 | 32,806 |
| Thereafter | 21,793 |
| Purchase commitments | |
| Total | 947,953 |
| 2023 | 234,317 |
| 2024-2025 | 494,759 |
| 2026-2027 | 218,877 |
| Thereafter | 0 |
| Convertible notes | |
| Total | 2,725,000 |
| 2023 | 0 |
| 2024-2025 | 0 |
| 2026-2027 | 2,725,000 |
| Thereafter | 0 |
| Total | |
| Total | 3,830,050 |
| 2023 | 273,589 |
| 2024-2025 | 557,985 |
| 2026-2027 | 2,976,683 |
| Thereafter | $ 21,793 |
Commitment and Contingencies - Narrative (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Letter of Credit | ||
| Long-term Purchase Commitment [Line Items] | ||
| Letter of credit outstanding | $ 20.6 | $ 10.8 |
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
| Total stock-based compensation expense | $ 550,065 | $ 347,159 | $ 134,629 |
| Cost of revenue | |||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
| Total stock-based compensation expense | 57,309 | 24,811 | 10,626 |
| Research and development | |||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
| Total stock-based compensation expense | 283,312 | 165,604 | 66,038 |
| Sales and marketing | |||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
| Total stock-based compensation expense | 118,173 | 70,663 | 23,769 |
| General and administrative | |||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
| Total stock-based compensation expense | $ 91,271 | $ 86,081 | $ 34,196 |
Stock-Based Compensation - Unrecognized Compensation Expense (Details) $ in Thousands |
12 Months Ended |
|---|---|
|
Dec. 31, 2022
USD ($)
| |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Unrecognized compensation expense, options | $ 124,265 |
| Stock options | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Weighted-Average Remaining Vesting Period (In Years) | 1 year 11 months 4 days |
| Unvested RSUs and PVUs | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Unrecognized Compensation Expense | $ 1,671,647 |
| Weighted-Average Remaining Vesting Period (In Years) | 3 years 25 days |
| Employee Stock | 2020 Employee Stock Purchase Plan | |
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
| Unrecognized Compensation Expense | $ 1,542 |
| Weighted-Average Remaining Vesting Period (In Years) | 2 months 1 day |
Stock-Based Compensation - Summary of Intrinsic and Fair Values (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Share-Based Payment Arrangement [Abstract] | |||
| Aggregate pretax intrinsic value of stock options exercised | $ 274,956 | $ 1,394,721 | $ 441,000 |
| Weighted average grant date fair value of stock options granted (USD per share) | $ 7.54 | $ 39.05 | $ 10.66 |
| Fair value of stock options vested | $ 51,962 | $ 48,918 | $ 44,100 |
Stock-Based Compensation - Summary of Valuation Assumptions of Stock Options (Details) - Stock options - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
| Expected dividend yield | $ 0 | $ 0 | $ 0 |
| Risk-free interest rate minimum | 1.70% | 0.90% | 0.40% |
| Risk-free interest rate maximum | 3.80% | 1.30% | 0.60% |
| Expected minimum volatility | 33.30% | 32.90% | 33.80% |
| Expected maximum volatility | 52.20% | 36.20% | 36.30% |
| Expected term (in years) | 6 years 3 months | 6 years 3 months | 6 years |
| Minimum | |||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
| Fair value of underlying common stock (USD per share) | $ 36.17 | $ 100.60 | $ 22.00 |
| Maximum | |||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
| Fair value of underlying common stock (USD per share) | $ 89.01 | $ 152.34 | $ 152.00 |
Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units - $ / shares |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Unvested Restricted Stock Units | ||
| Unvested at beginning of period (in shares) | 13,696,836 | 9,561,791 |
| Granted (in shares) | 33,548,745 | 8,060,505 |
| Vested (in shares) | (6,549,420) | (3,131,986) |
| Forfeited (in shares) | (2,590,699) | (793,474) |
| Unvested at end of period (in shares) | 38,105,462 | 13,696,836 |
| Weighted-Average Grant-Date Fair Value | ||
| Unvested at beginning of period (USD per share) | $ 85.96 | $ 53.79 |
| Granted (USD per share) | 39.12 | 112.11 |
| Vested (USD per share) | 70.54 | 58.23 |
| Forfeited (USD per share) | 71.35 | 73.36 |
| Unvested at end of period (USD per share) | $ 48.37 | $ 85.96 |
Stock-Based Compensation - Narrative (Details) - USD ($) |
1 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|
Oct. 31, 2022 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Restricted Stock Units | ||||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Fair value of vested instruments in period | $ 322,500,000 | $ 442,100,000 | $ 85,900,000 | |
| Granted (in shares) | 33,548,745 | 8,060,505 | ||
| Price-Vested Units | ||||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Fair value of vested instruments in period | $ 0 | |||
| Granted (in shares) | 989,880 | |||
| Award requisite service period | 4 years | |||
| Award performance period | 7 years | |||
| Employee Stock | ||||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
| Shares issued under the ESPP (in shares) | 607,009 | 0 | ||
Stock-Based Compensation - Performance-Based Restricted Stock Unit (Details) - Price-Vested Units |
12 Months Ended |
|---|---|
|
Dec. 31, 2022
$ / shares
| |
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |
| Share price on grant date (USD per share) | $ 27.88 |
| Risk-free interest rate | 4.01% |
| Expected volatility | 50.00% |
| Expected dividend yield | 0.00% |
Stock-Based Compensation - Summary of ESPP Valuation Assumptions (Details) - Employee Stock - $ / shares |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
| Expected dividend yield | 0.00% | 0.00% |
| Risk-free interest rate minimum | 0.60% | |
| Risk-free interest rate maximum | 3.30% | |
| Risk-free interest rate | 0.10% | |
| Expected minimum volatility | 35.50% | |
| Expected maximum volatility | 40.00% | |
| Expected volatility | 27.20% | |
| Expected term (in years) | 6 months | 6 months |
| Estimated fair value (USD per share) | $ 28.64 | |
| Minimum | ||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
| Estimated fair value (USD per share) | $ 10.51 | |
| Maximum | ||
| Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
| Estimated fair value (USD per share) | $ 27.42 | |
Stock-Based Compensation - Summary of ESPP (Details) - Employee Stock - $ / shares |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
| Shares issued under the ESPP (in shares) | 607,009 | 0 |
| Weighted-average price per share issued (USD per share) | $ 54.87 | |
Income Taxes - Loss Before Provision for Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Income Tax Disclosure [Abstract] | |||
| United States | $ (483,914) | $ (318,907) | $ (185,580) |
| Foreign | (398,511) | (212,323) | (94,637) |
| Loss before income taxes | $ (882,425) | $ (531,230) | $ (280,217) |
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Current: | |||
| Federal | $ 12,258 | $ (111) | $ 183 |
| State | 1,605 | 219 | 155 |
| Foreign | 26,255 | 13,594 | 4,412 |
| Total current tax expense (benefit) | 40,118 | 13,702 | 4,750 |
| Deferred: | |||
| Federal | 4,347 | (4,874) | 0 |
| State | (3,167) | (851) | (156) |
| Foreign | (4,235) | (6,600) | (2,503) |
| Total deferred tax expense (benefit) | (3,055) | (12,325) | (2,659) |
| Total tax provision | $ 37,063 | $ 1,377 | $ 2,091 |
Income Taxes - Income Tax Provision Reconciliation (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Income Tax Disclosure [Abstract] | |||
| U.S. federal statutory tax rate | $ (185,399) | $ (111,558) | $ (58,846) |
| Changes in income taxes resulting from: | |||
| State tax expense, net of federal benefit | (4,466) | (36,984) | (12,698) |
| Foreign income taxed at different rates | (94,940) | (30,114) | (29,958) |
| Federal research and development credits | (15,929) | (31,088) | (12,338) |
| Stock-based compensation | 89,515 | (91,623) | (22,624) |
| Tax effects of restructuring | 169,886 | 0 | 0 |
| Base-erosion and anti-abuse tax | 10,353 | 0 | 0 |
| Change in valuation allowance | 63,800 | 301,330 | 139,219 |
| Other | 4,243 | 1,414 | (664) |
| Total tax provision | $ 37,063 | $ 1,377 | $ 2,091 |
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Deferred tax assets: | ||
| Net operating losses | $ 437,382 | $ 332,622 |
| Tax credits | 110,762 | 81,847 |
| Stock-based compensation | 59,443 | 29,647 |
| Capitalized R&D expenditures | 255,123 | 94,686 |
| Operating lease liabilities | 23,287 | 24,137 |
| Other | 27,702 | 29,785 |
| Gross deferred tax assets | 913,699 | 592,724 |
| Valuation allowance | (632,580) | (568,124) |
| Total deferred tax assets | 281,119 | 24,600 |
| Deferred tax liabilities: | ||
| Intangible Asset | (404,491) | (4,469) |
| Operating lease ROU assets | (16,995) | (20,467) |
| Total deferred tax liabilities | (421,486) | (24,936) |
| Net deferred tax assets | $ (140,367) | $ (336) |
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
| Unrecognized tax benefits, beginning balance | $ 110,315 | $ 74,670 | $ 37,392 |
| Gross increases for tax positions taken in prior years | 1,232 | 1,729 | 1,689 |
| Gross decreases for tax positions taken in prior years | (613) | (2,507) | (694) |
| Gross increases for tax positions taken in current year | 55,931 | 38,406 | 38,829 |
| Acquired tax positions | 11,989 | 0 | 0 |
| Reductions resulting from lapses of statues of limitations | (2,000) | (1,700) | (2,952) |
| Foreign exchange gains and losses | (270) | (283) | |
| Foreign exchange gains and losses | 406 | ||
| Unrecognized tax benefits, ending balance | $ 176,584 | $ 110,315 | $ 74,670 |
Net Loss per Share of Common Stock - Antidilutive Securities Excluded From Computation (Details) - shares shares in Thousands |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Convertible notes | |||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
| Antidilutive securities excluded from computation of earnings per share (in shares) | 26,042 | 5,588 | 0 |
| Stock options | |||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
| Antidilutive securities excluded from computation of earnings per share (in shares) | 35,719 | 29,226 | 40,458 |
| Unvested RSUs and PVUs | |||
| Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
| Antidilutive securities excluded from computation of earnings per share (in shares) | 38,105 | 13,697 | 10,366 |