UNITY SOFTWARE INC., 10-K filed on 2/22/2022
Annual Report
v3.22.0.1
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2021
Feb. 15, 2022
Jun. 30, 2021
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2021    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-39497    
Entity Registrant Name UNITY SOFTWARE INC.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 27-0334803    
Entity Address, Address Line One 30 3rd Street    
Entity Address, City or Town San Francisco    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 94103‑3104    
City Area Code 415    
Local Phone Number 539‑3162    
Title of 12(b) Security Common stock, $0.000005 par value    
Trading Symbol U    
Security Exchange Name NYSE    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 10.3
Entity Common Stock, Shares Outstanding   294,095,327  
Documents Incorporated by Reference Portions of the registrant’s definitive proxy statement for the 2022 Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission within 120 days after the registrant's fiscal year ended December 31, 2021, are incorporated by reference into Part III of this Annual Report on Form 10-K where indicated.    
Amendment Flag false    
Document Fiscal Year Focus 2021    
Document Fiscal Period Focus FY    
Entity Central Index Key 0001810806    
v3.22.0.1
Audit Information
 12 Months Ended
Dec. 31, 2021
Audit Information [Abstract]  
Auditor Firm ID 42
Auditor Name Ernst & Young LLP
Auditor Location San Jose, California
v3.22.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Current assets:    
Cash and cash equivalents $ 1,055,776 $ 1,272,578
Marketable securities 681,323 479,406
Accounts receivable, net of allowances of $5,447 and $2,714 as of December 31, 2021 and 2020, respectively 340,491 274,255
Prepaid expenses 39,097 32,025
Other current assets 34,423 22,396
Total current assets 2,151,110 2,080,660
Property and equipment, net 106,106 95,544
Operating lease right‑of‑use assets 98,393 103,609
Goodwill 1,620,127 286,251
Intangible assets, net 814,386 57,459
Restricted cash 10,823 21,369
Other assets 40,401 26,333
Total assets 4,841,346 2,671,225
Current liabilities:    
Accounts payable 14,009 11,303
Accrued expenses and other current liabilities 144,873 106,306
Publisher payables 237,637 182,269
Income and other taxes payable 64,759 64,116
Deferred revenue 140,528 113,853
Operating lease liabilities 23,729 25,375
Total current liabilities 625,535 503,222
Convertible notes 1,703,035 0
Long-term deferred revenue 15,945 20,523
Long-term operating lease liabilities 92,539 98,532
Other long-term liabilities 9,901 11,805
Total liabilities 2,446,955 634,082
Commitments and contingencies
Stockholders’ equity:    
Convertible preferred stock and preferred stock 0 0
Common stock, $0.000005 par value; 1,000,000 and 1,000,000 shares authorized as of December 31, 2021 and 2020, respectively; 292,592 and 273,537 shares issued and outstanding as of December 31, 2021 and 2020, respectively 2 2
Additional paid-in capital 3,729,874 2,838,057
Accumulated other comprehensive loss (3,858) (3,418)
Accumulated deficit (1,331,627) (797,498)
Total stockholders’ equity 2,394,391 2,037,143
Total liabilities and stockholders’ equity $ 4,841,346 $ 2,671,225
v3.22.0.1
Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Accounts receivable, allowances $ 5,447 $ 2,714
Preferred stock, par value (USD per share) $ 0.000005 $ 0.000005
Preferred stock, authorized (in shares) 100,000,000 100,000,000
Preferred stock, issued (in shares) 0 100,000,000
Preferred stock, outstanding (in shares) 0 100,000,000
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) 292,592,000 273,537,000
Common stock, outstanding (in shares) 292,592,000 273,537,000
v3.22.0.1
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Statement [Abstract]      
Revenue $ 1,110,526 $ 772,445 $ 541,779
Cost of revenue 253,630 172,347 118,597
Gross profit 856,896 600,098 423,182
Operating expenses      
Research and development 695,710 403,515 255,928
Sales and marketing 344,939 216,416 174,135
General and administrative 347,912 254,979 143,788
Total operating expenses 1,388,561 874,910 573,851
Loss from operations (531,665) (274,812) (150,669)
Interest expense (1,131) (1,520) 0
Interest income and other expense, net 1,566 (3,885) (2,573)
Loss before provision for income taxes (531,230) (280,217) (153,242)
Provision for income taxes 1,377 2,091 9,948
Net loss $ (532,607) $ (282,308) $ (163,190)
Basic and diluted net loss per share:      
Net loss per share attributable to our common stockholders, basic (USD per share) $ (1.89) $ (1.66) $ (2.39)
Net loss per share attributable to our common stockholders, diluted (USD per share) $ (1.89) $ (1.66) $ (2.39)
Weighted-average shares used in per share calculation attributable to our common stockholders, basic (in shares) 282,195 169,973 114,442
Weighted-average shares used in per share calculation attributable to our common stockholders, diluted (in shares) 282,195 169,973 114,442
v3.22.0.1
Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Statement of Comprehensive Income [Abstract]      
Net loss $ (532,607) $ (282,308) $ (163,190)
Other comprehensive loss, net of taxes:      
Change in foreign currency translation adjustment 583 161 (155)
Change in unrealized gains (losses) on marketable securities (1,023) 53 0
Other comprehensive gain (loss) (440) 214 (155)
Comprehensive loss $ (533,047) $ (282,094) $ (163,345)
v3.22.0.1
Condensed Consolidated Statements of Shareholders' Equity - USD ($)
$ in Thousands
Total
Adjustment
Treasury Stock
Convertible Series E Preferred Stock
Convertible preferred stock
Non Chief Executive Officer Related
Chief Executive Officer
Non-IPO
IPO
Charitable Contribution, IPO
Convertible Preferred Stock
Convertible Preferred Stock
Convertible Series E Preferred Stock
Convertible Preferred Stock
Convertible preferred stock
Common Stock
Common Stock
Treasury Stock
Common Stock
Non Chief Executive Officer Related
Common Stock
Chief Executive Officer
Common Stock
Non-IPO
Common Stock
IPO
Common Stock
Charitable Contribution, IPO
Additional Paid-In Capital
Additional Paid-In Capital
Treasury Stock
Additional Paid-In Capital
Convertible preferred stock
Additional Paid-In Capital
Non Chief Executive Officer Related
Additional Paid-In Capital
Chief Executive Officer
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
Adjustment
Treasury Stock
Treasury Stock
Treasury Stock
Beginning balance (in shares) at Dec. 31, 2018                     96,992,575     107,068,886                                      
Beginning balance at Dec. 31, 2018 $ 316,127                   $ 600,114     $ 1             $ 173,214               $ (3,477) $ (352,000)   $ (101,725)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                                                  
Issuance of stock (in shares)                       5,681,818           22,297,024                              
Issuance of stock       $ 124,918       $ 460,200       $ 124,918                           $ 460,200              
Issuance of common stock from exercise of stock options (in shares)                               6,427,160                                  
Issuance of common stock from exercise of stock options           $ 11,813                                   $ 11,813                  
Common stock issued in connection with acquisitions (in shares)                           1,734,737                                      
Common stock issued in connection with acquisitions 34,807                                       34,807                        
Purchase and retirement of stock (in shares)                         (6,775,179)   (14,266,783)                                    
Purchase and retirement of stock     $ (286,375)   $ (148,714)               $ (38,473)                 $ (388,100) $ (110,241)                   $ 101,725
Stock‑based compensation expense 30,959                                       30,959                        
Stock-based compensation expense in connection with modified awards for certain employees 13,521                                       13,521                        
Net loss (163,190)                                                         (163,190)      
Change in foreign currency translation adjustment (155)                                                       (155)        
Unrealized gain on marketable securities 0                                                                
Ending balance (in shares) at Dec. 31, 2019                     95,899,214     123,261,024                                      
Ending balance at Dec. 31, 2019 $ 393,911                   $ 686,559     $ 1             226,173               (3,632) (515,190)   0  
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          
Issuance of common stock from exercise of stock options (in shares) 6,758,226                             6,758,226 5,656,927                                
Issuance of common stock from exercise of stock options           25,404 $ 8,856                                 25,404 $ 8,856                
Common stock issued in connection with acquisitions (in shares)                           1,103,190                                      
Common stock issued in connection with acquisitions $ 25,380                                       25,380                        
Purchase and retirement of stock (in shares)                           (5,000)                                      
Purchase and retirement of stock (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 134,554                                       134,554                        
Stock-based compensation expense in connection with modified awards for certain employees 75                                       75                        
Net loss (282,308)                                                         (282,308)      
Change in foreign currency translation adjustment 161                                                       161        
Unrealized gain on marketable securities 53                                                       53        
Ending balance (in shares) at Dec. 31, 2020                     0     273,537,218                                      
Ending balance at Dec. 31, 2020 $ 2,037,143 $ (1,522)                 $ 0     $ 2             2,838,057               (3,418) (797,498) $ (1,522) 0  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                                                                  
Issuance of common stock from exercise of stock options (in shares) 11,650,963                             11,650,963                                  
Issuance of common stock from exercise of stock options           $ 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                        
Purchase of capped calls (48,127)                                       (48,127)                        
Stock‑based compensation expense 334,529                                       334,529                        
Stock-based compensation expense in connection with modified awards for certain employees 12,630                                       12,630                        
Net loss (532,607)                                                         (532,607)      
Change in foreign currency translation adjustment 583                                                       583        
Unrealized gain on marketable securities (1,023)                                                       (1,023)        
Ending balance (in shares) at Dec. 31, 2021                     0     292,592,356                                      
Ending balance at Dec. 31, 2021 $ 2,394,391                   $ 0     $ 2             $ 3,729,874               $ (3,858) $ (1,331,627)   $ 0  
v3.22.0.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Operating activities      
Net loss $ (532,607) $ (282,308) $ (163,190)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:      
Depreciation and amortization 64,567 42,974 31,113
Common stock charitable donation expense 0 63,615 0
Stock-based compensation expense 334,529 134,554 30,959
Stock-based compensation expense in connection with modified awards for certain employees 12,630 75 13,521
Other 13,843 3,246 133
Changes in assets and liabilities, net of effects of acquisitions:      
Accounts receivable, net (65,151) (63,294) (49,420)
Prepaid expenses (6,831) (9,131) (9,269)
Other current assets (13,170) (12,985) 4,457
Operating lease right-of-use ("ROU") assets 23,739 23,923 0
Deferred tax, net (13,033) (213) (4,466)
Other assets (6,628) (1,867) (7,657)
Accounts payable 2,022 (2,526) 473
Accrued expenses and other current liabilities 34,571 41,618 12,432
Publisher payables 55,368 44,605 20,174
Income and other taxes payable (1,296) 19,525 13,166
Operating lease liabilities (26,473) (20,204) 0
Other long-term liabilities (3,282) 898 8,587
Deferred revenue 15,753 37,408 31,051
Net cash provided by (used in) operating activities (111,449) 19,913 (67,936)
Investing activities      
Purchase of marketable securities (519,698) (482,453) 0
Proceeds from principal repayments on marketable securities 18,572 1,644 0
Maturities of marketable securities 290,385 0 0
Purchase of non-marketable investments (4,600) (1,000) 0
Purchase of property and equipment (41,938) (40,156) (27,035)
Acquisition of intangible assets 0 (750) 0
Business acquisitions, net of cash acquired (1,580,081) (52,475) (192,506)
Net cash used in investing activities (1,837,360) (575,190) (219,541)
Financing activities      
Proceeds from issuance of convertible notes 1,725,000 0 0
Purchase of capped calls (48,127) 0 0
Proceeds from revolving loan facility 0 125,000 0
Payment of principal related to revolving loan facility 0 (125,000) 0
Payment of debt issuance costs (22,575) (247) (370)
Proceeds from initial public offering, net of underwriting discounts, commissions, and offering costs 0 1,417,582 0
Proceeds from issuance of convertible preferred stock, net of issuance costs 0 149,970 124,918
Proceeds from issuance of common stock 0 100,000 460,200
Repurchase and extinguishment of convertible preferred stock 0 0 (148,714)
Purchase and retirement of treasury stock 0 (110) (286,375)
Proceeds from exercise of stock options 66,704 25,404 11,813
Proceeds from exercise of stock options in connection with nonrecourse promissory note 0 8,856 0
Net cash provided by financing activities 1,721,002 1,701,455 161,472
Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash 459 673 (172)
Increase (decrease) in cash, cash equivalents, and restricted cash (227,348) 1,146,851 (126,177)
Cash and restricted cash, beginning of period 1,293,947 147,096 273,273
Cash, cash equivalents, and restricted cash, end of period 1,066,599 1,293,947 147,096
Supplemental disclosure of cash flow information:      
Cash paid for interest 110 1,393 0
Cash paid for income taxes, net of refunds 5,651 19,956 1,187
Supplemental disclosures of non‑cash investing and financing activities:      
Fair value of common stock issued as consideration for business acquisitions 526,081 25,144 34,807
Fair value of common stock issued as consideration for acquisition of intangible assets 0 236 0
Accrued property and equipment $ 8,329 $ 4,665 $ 3,572
v3.22.0.1
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Statement of Cash Flows [Abstract]        
Cash and cash equivalents $ 1,055,776 $ 1,272,578 $ 129,959  
Restricted cash 10,823 21,369 17,137  
Total cash, cash equivalents, and restricted cash $ 1,066,599 $ 1,293,947 $ 147,096 $ 273,273
v3.22.0.1
Description of Business and Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Description of Business and Summary of Significant Accounting Policies Description of Business and Summary of Significant Accounting Policies
Description of Business
We were founded as Over the Edge Entertainment in Denmark in 2004. We reorganized as a Delaware corporation on May 28, 2009 as Unity Software Inc. (collectively referred to with its wholly owned subsidiaries as “we,” “our” or “us”). 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, Belgium, Canada, China, Colombia, Finland, France, Germany, Ireland, Israel, Japan, Lithuania, Portugal, Singapore, South Korea, Spain, Sweden, Switzerland, and the U.K.
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. and its wholly owned subsidiaries. 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, allowances for doubtful accounts, fair values of financial instruments, useful lives of fixed assets, the incremental borrowing rate ("IBR") we use to determine our operating lease liabilities, income taxes, valuation of deferred tax assets and liabilities, valuation of intangible assets, useful lives of intangible assets, assets acquired and liabilities assumed through business combinations, valuation of stock-based compensation, capitalization of software costs and software implementation costs, customer life for capitalized commissions, and other contingencies, among others. 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 recognized upon the transfer of control of promised products and services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services.
We evaluate and recognize revenue by:
•identifying the contract(s) with the customer;
•identifying the performance obligation(s) in the contract(s);
•determining the transaction price;
•allocating the transaction price to performance obligation(s) in the contract(s); and
•recognizing revenue as each performance obligation is satisfied through the transfer of a promised good or service to a customer (“transfer of control”).
The five-step model requires us to make significant estimates in situations where we are unable to establish stand-alone selling price based on various observable prices using all information that is reasonably available. Observable inputs and information we use to make these estimates include historical internal pricing data and cost plus margin analysis.
We generate revenue through three sources: (1) Create Solutions, which consists primarily of our subscription offerings and professional services; (2) Operate Solutions, which includes our monetization services, hosting, and multiplayer services, and voice services; and (3) Strategic Partnerships and Other, which are primarily arrangements with strategic hardware, operating system, device, game console, and other technology providers for the customization and development of our software to enable interoperability with these platforms. We recognize revenue as our contractual performance obligations are satisfied. When contracts with our customers contain multiple performance obligations, we allocate the overall transaction price, which is the amount of consideration to which we expect to receive in exchange for promised goods or services, to each of the distinct performance obligations based on their estimated relative standalone selling prices.
Create Solutions
    Create Solutions Subscriptions
Our subscriptions, mainly consisting of Unity Pro and Unity Plus (collectively, the “Create Solutions subscriptions”) are fully integrated content development solutions that enable customers to build interactive real-time 2D and 3D applications. These Create Solutions subscriptions provide customers with the rights to a software license with embedded cloud functionality and multi-platform support. Significant judgment is required to determine the level of integration and interdependency between individual promises of the Create Solutions subscriptions. This determination influences whether the software is considered distinct and accounted for separately as a license performance obligation recognized at a point in time, or not distinct and accounted for together with other promises in the Create Solutions subscriptions as a single performance obligation recognized over time. Under FASB ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”), we have concluded that the software license is not distinct from the multi-platform support as they are highly interdependent and interrelated considering the significant two-way dependency between the promises. Although the promise to the embedded cloud functionality represents separate performance obligations under Topic 606, we have accounted for these obligations as if they are a single performance obligation that includes the software license and the multi-platform support because the cloud functionality has the same pattern of transfer to the customer over the duration of the subscription term.
The transaction price is determined based on the consideration that we will be entitled to receive in exchange for transferring our Create Solutions subscriptions to the customer, and we do not have material variable consideration. We recognize the single performance obligation ratably over the contract term beginning when the license key is delivered.
Enterprise customers may purchase an enhanced support offering (“Enterprise Support”) that is sold separately from the Create Solutions subscriptions, and is capable of being distinct, and is distinct within the context of the contract due to its separate utility. Enterprise Support is generally billed in advance and is recognized ratably over the support term as we have a stand-ready performance obligation over the support term. When an arrangement includes Enterprise Support and Create Solutions subscriptions, which have the same pattern of transfer to the customer (the services transfer to the customer over the same period), we account for those performance obligations as if they are a single performance obligation. If an arrangement includes Enterprise Support and Create Solutions subscriptions that do not have the same pattern of transfer, we allocate the transaction price to the distinct performance obligations and recognize them ratably over their respective terms.
Create Solutions subscriptions typically have a term of one to three years and are generally billed in advance and recognized ratably over the term.
    Professional Services
Our professional services revenue is primarily composed of consulting, integration, training, and custom application and workflow development. Professional services may be billed in advance or on a time and materials basis and we recognize the related revenue as services are rendered.
We typically invoice our customers up front or when promised services are delivered, and the payment terms vary by customer type and location. The term between billing and payment due dates is not significant. As a result, we have determined that our contracts do not include significant financing component.
Customer billings related to taxes imposed by and remitted to governmental authorities on revenue-producing transactions are reported on a net basis.
Operate Solutions
    Monetization
We generate advertising revenue through our monetization solutions, including the Unified Auction, which allows publishers to sell the available advertising inventory from their mobile applications to advertisers. We enter into contracts with both advertisers and publishers to participate in the Unified Auction. For advertisements placed through the Unified Auction, we evaluate whether we are the principal (in which case revenue is reported on a gross basis) or the agent (in which case revenue is reported on a net basis). The evaluation to present revenue on a gross basis versus net basis requires significant judgment. We have concluded that the publisher is our customer and we are the agent in facilitating the fulfillment of the advertising inventory in the Unified Auction primarily because we do not control the advertising inventory prior to the placement of an advertisement. As the operator of the Unified Auction, our role is to enable the publisher to monetize its advertising inventory with the advertiser based on the bid/ask price from the auction. We do not control the outcome of the bids and do not have pricing latitude in the transaction. Based on these and other factors, we report advertising revenue based on the net amount retained from the transaction which is our revenue share. Advertising revenue is recognized at a point in time when control is transferred to the customer. This occurs when a user installs an application after seeing an advertisement contracted on a cost-per-install basis or when an advertisement starts on a cost-per-impression basis. Typically, we do not retain a share of the revenue generated through Unity IAP (“In-App Purchases”). Publisher payables represent amounts earned by publishers in the Unified Auction and are presented as a reduction of revenue in our consolidated statements of operations. Payment terms are contractually defined and vary by publisher and location.
    Cloud and Hosting Services
We provide cloud-based services as well as enterprise hosting (“Hosting Services”) to developers that develop and operate multiuser/multiplayer games and applications through a combination of hardware server and cloud-based infrastructure and services. The Hosting Services facilitate the connection of end users, and allow content game and application operators to monitor network traffic. Our cloud-based services provide our customers with tools and services to develop and operate live games and applications, including voice chat services. We primarily sell these services on a fixed fee or consumption-based model with fixed fees billed monthly in advance and consumption fees billed monthly in arrears. We recognize revenue ratably over the contractual service term for fixed fee arrangements as we have a stand-ready performance obligation that is generally fulfilled evenly throughout the hosting period. We recognize revenue for consumption-based arrangements as services are provided.
Strategic Partnerships and Other
We enter into strategic contracts with owners of hardware, operating system, device, game console and other technology providers to customize our software licenses to enable interoperability with these platforms (“Strategic Partnerships”). This allows customers using our Create Solutions subscriptions to build and publish content to more than one platform without having to write platform-specific code. We consider these strategic partners as our customers and generally provide them with the following promises in our contracts: (i) development and customization of our software to integrate with the customer’s platform and (ii) post-integration ongoing support and updates.
We generally view these promises as one single performance obligation as they are not distinct within the context of the contract. This is because the customized software license that is integrated with the customer’s platform requires continuous updates that are critical to the utility of the customized software.
The transaction price is determined based on the consideration that we will be entitled to receive in exchange for transferring our goods and services to the customer. We do not have material variable consideration. When Strategic Partnerships contain non-monetary consideration, we measure and record the transaction price at the estimated fair value of the non-cash consideration received from the customer. Typically, we recognize revenue for these contracts over time as service is performed using the input method to measure progress of the satisfaction of the performance obligation.
Certain Strategic Partnerships also require the customer to pay sales-based royalties based on the sales of games on the Strategic Partner platform that incorporate our customized software. Since customized software intellectual property is the predominant item to which royalty relates, we recognize revenue for sales-based royalties when the later of the subsequent sale or usage occurs, or the performance to which some or all of the sales-based royalty has been allocated has been satisfied. We record revenue under these arrangements for the amounts due to us based on estimates of the sales of these customers and pursuant to the terms of the contracts.
The Strategic Partnerships are typically multi-year arrangements where customers make payments commensurate with milestones accomplished with respect to the development and integration service or pay in advance on a quarterly basis.
Cost of Revenue
Cost of revenue for the delivery of software tools, support, updates 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.
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 estimates 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 is based upon the historical volatility of a number of publicly traded companies in similar industry. We have historically not declared or paid any dividends and does 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.
We recognize stock-based compensation expense for stock options and RSUs, 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 have elected to account for forfeitures 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 and commercial paper.
As of December 31, 2021 and 2020, restricted cash was $10.8 million and $21.4 million, respectively. Restricted cash consists of secured letters of credit issued in connection with our operating leases. 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.
Marketable Securities
Our marketable securities consist of investments in 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.
These investments are considered impaired when a decline in fair value is judged to be other-than-temporary. We consider available quantitative and qualitative evidence in evaluating potential impairment of our investments on a quarterly basis. If the cost of an individual investment exceeds its fair value, we evaluate, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and our intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established.
Accounts Receivable
We record accounts receivable at the invoiced amount. We maintain an allowance for doubtful accounts for any receivables we may be unable to collect, based on historical loss patterns, the number of days that billings are past due, and an evaluation of the potential risk of loss associated with delinquent accounts. In addition, we review the accounts receivable amounts due from customers that are past due to identify specific customers with known disputes or collectability issues. In determining the amount of the reserve, we make judgments about the creditworthiness of customers based on ongoing credit evaluations. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of December 31, 2021 and 2020, the allowance for doubtful accounts was $5.4 million and $2.7 million, respectively. We include the allowances for doubtful accounts in accounts receivable, net, on the consolidated balance sheets.
Credit Risk and Concentrations
Financial instruments that potentially subject us to a concentration of credit risk consist primarily of cash and cash equivalents, marketable securities, and accounts receivable. We place our domestic and foreign cash and cash equivalents, as well as our marketable securities, 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, 2021 and 2020, no individual customer represented 10% or more of the aggregate receivables. For the years ended December 31, 2021, 2020, and 2019, 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. We apply fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Goodwill, intangible assets, and other long-lived assets are measured at fair value on a nonrecurring basis, only if impairment is indicated. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash and cash equivalents, 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 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. Depreciation commences upon placing the asset in service. An estimated useful life of three years is used for computer and other hardware and five years is used for furniture. Leasehold improvements are amortized over the shorter of the estimated useful life or the remaining term of the lease. Software is amortized over the estimated useful life or license term, generally either three 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
We determine if a contract contains a lease based on whether we have the right to obtain substantially all of the economic benefits from the use of an identified asset and whether we have the right to direct the use of an identified asset in exchange for consideration, which relates to an asset which we do not own. Right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets are recognized as the lease liability, adjusted for lease incentives received and prepayments made. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is our IBR because the interest rate implicit in most of our leases is not readily determinable. The IBR is a hypothetical rate based on our understanding of what our credit rating would be. Lease payments may be fixed or variable; however, only fixed payments or in-substance fixed payments are included in our lease liability calculation. Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments are incurred.
Convertible Senior Notes and Capped Call Transactions
We account for the issuance of convertible senior notes as a single liability measured at its 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.
Business Combinations
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.
Accounting for business combinations requires us to make significant estimates and assumptions, especially with respect to intangible assets. Although we believe the assumptions and estimates we have made are reasonable, they are based in part on historical experience and information obtained from the management of the acquired companies and are inherently uncertain. Examples of critical estimates used in valuing certain of the intangible assets we have acquired or may acquire in the future include but are not limited to:
•future expected revenues and cash flows from acquired intangible assets;
•the economic life used on acquired company’s trade name, trademark, existing customer relationship, and contractual relationship, as well as assumptions about the period of time the acquired trade name and trademark will continue to be used in our product portfolio;
•the expected use of the acquired intangible assets; and
•discount rates.
These estimates are inherently uncertain and unpredictable. Unanticipated events and circumstances may occur which may affect the accuracy or validity of such assumptions, estimates or actual results.
Goodwill and Intangible Assets
Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Intangible assets, with the exception of certain contractual relationships, that are not considered to have an indefinite useful life are amortized on a straight-line basis over their estimated useful lives, which typically range from three 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 purchased 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, 2021, 2020, and 2019 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. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Capitalized software costs are amortized on a straight-line basis over their estimated useful life, which is generally two 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 $1.2 million and $4.7 million, respectively, during the year ended December 31, 2021 and $0.8 million and $7.0 million, respectively, during the year ended December 31, 2020. 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.
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, 2021, 2020, and 2019.
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
From time to time, we enter into certain types of contracts that contingently require us to indemnify parties against third‑party claims. These contracts primarily relate to agreements under which we indemnify customers and partners for claims arising from intellectual property infringement. The terms of such obligations vary, and the overall maximum amount of the obligations cannot be reasonably estimated. Historically, we have not been obligated to make any payments for these obligations, and no liabilities have been recorded for these obligations as of December 31, 2021 and 2020.
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, 2021 and 2020.
Research and Development
Research and development costs, which consist primarily of software development costs, are expensed as incurred. FASB ASC Topic 985‑20, Costs of Software to Be Sold, Leased or Marketed, requires development costs incurred subsequent to establishment of technological feasibility related to software incorporated in our products to be capitalized and amortized over the estimated useful lives of the related products. 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 in the accompanying consolidated statements of operations.
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 $24.2 million, $12.3 million, and $4.5 million for the years ended December 31, 2021, 2020, and 2019, respectively.
v3.22.0.1
Summary of Accounting Pronouncements
 12 Months Ended
Dec. 31, 2021
Accounting Policies [Abstract]  
Summary of Accounting Pronouncements Summary of Accounting Pronouncements
Accounting Pronouncements Recently Adopted
In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent amendments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including trade receivables. This update replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. The new impairment methodology eliminates the probable initial recognition threshold and, instead, estimates the expected credit losses in consideration of past events, current conditions and forecasted information. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities.
We adopted this new standard effective January 1, 2021, using the modified-retrospective approach, which resulted in a cumulative-effect adjustment of $1.5 million to accumulated deficit. We updated the following accounting policies as a result of the adoption of this guidance.
Accounts Receivable
We record accounts receivable at the original invoiced amount, net of allowances for credit losses for any potential uncollectible amounts. We make estimates of expected credit losses for the allowance for doubtful accounts based upon our assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect our ability to collect from customers. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. The estimated credit loss allowance is recorded as a general and administrative expense on our consolidated statement of operations. As of December 31, 2021, the allowance for credit losses was $5.4 million.
Marketable Securities
Our marketable securities consist of investments in 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. When the fair value of a security is below its amortized cost, the amortized cost will be reduced to its fair value if it is more likely than not that we are required to sell the impaired security before recovery of its amortized cost basis, or we have the intention to sell the security. If neither of these conditions is met, we determine whether the impairment is due to credit losses by comparing the present value of the expected cash flows of the security with its amortized cost basis. The amount of impairment recognized is limited to the excess of the amortized cost over the fair value of the security. An allowance for credit losses for the excess of amortized cost over the expected cash flows is recorded in interest income and other expense, net in our consolidated statements of operations. Impairment losses that are not credit-related are included in accumulated other comprehensive loss in stockholders’ equity.
In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The new guidance simplifies the accounting for convertible instruments by eliminating the cash conversion and beneficial conversion feature models used to separately account for embedded conversion features as a component of equity. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. The new guidance also requires the if-converted method to be applied for all convertible instruments in the diluted earnings per share calculated and include the effect of potential share settlement for instruments that may be settled in cash or shares. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2021 with early adoption permitted, but only at the beginning of the fiscal year. We early adopted ASU 2020-06 as of January 1, 2021 with no cumulative effect upon adoption. There was no impact to the number of potentially dilutive shares in each of the periods presented.
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The new guidance creates an exception to the general recognition and measurement principle for contract assets and contract liabilities from contracts with customers acquired in a business combination. Under this exception, an acquirer applies Topic 606 to recognize and measure contract assets and contract liabilities on the acquisition date. Topic 805 generally requires the acquirer in a business combination to recognize and measure the assets it acquires and liabilities it assumes at fair value on the acquisition date. This generally will result in companies recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date. The ASU is effective for fiscal years beginning December 15, 2022. Early adoption is permitted for all entities, including adoption in an interim period. We early adopted this new standard effective January 1, 2021. The adoption resulted in immaterial changes in contract liabilities and total revenue recognized for the year ended December 31, 2021.
Recent Accounting Pronouncements Not Yet Adopted
There were no other significant updates to the recently issued accounting standards other than as disclosed herein. Although there are several other new accounting pronouncements issued or proposed by the FASB, we do not believe any of those accounting pronouncements have had or will have a material impact on its financial position or operating results.
v3.22.0.1
Revenue
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Revenue Revenue
Disaggregation of Revenue
Revenue by Source
The following table presents our revenue disaggregated by source (in thousands):
Year Ended December 31,
202120202019
Create Solutions$326,636 $231,314 $168,626 
Operate Solutions709,140 471,161 293,317 
Strategic Partnerships and Other74,750 69,970 79,836 
Total revenue$1,110,526 $772,445 $541,779 
Additional information regarding our revenue by source is discussed under the heading “Revenue Recognition” in Note 1, “Description of Business and Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements.
Revenue by Geographic Area
The following table presents our revenue disaggregated by geography, based on the invoice address of our customers (in thousands):
Year Ended December 31,
202120202019
United States$266,825 $197,343 $151,383 
Greater China (1)(2)
169,330 111,037 64,784 
EMEA (1)(3)
414,902 279,344 184,064 
APAC (1)(4)
222,348 149,527 113,938 
Other Americas (1)(5)
37,121 35,194 27,610 
Total revenue$1,110,526 $772,445 $541,779 
(1)    No individual country, other than those disclosed above, exceeded 10% of our total revenue for any period presented.
(2)    Greater China includes China, Hong Kong, and Taiwan.
(3)    Europe, the Middle East, and Africa (“EMEA”)
(4)    Asia-Pacific, excluding Greater China (“APAC”)
(5)    Canada and Latin America (“Other Americas”)
Contract Balances
Timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets relate to performance completed in advance of scheduled billings. The primary changes in our contract assets and contract liabilities are due to our performance under the contracts and billings.
Contract assets (unbilled receivables) included in accounts receivable are recorded when revenue is recognized in advance of customer invoicing. Unbilled receivables totaled $28.3 million and $26.3 million as of December 31, 2021 and 2020, respectively. Contract liabilities (deferred revenue) relate to payments received in advance of performance under the contract. Revenue recognized during the year ended December 31, 2021 that was included in the deferred revenue balances at January 1, 2021 was $108.6 million. The satisfaction of performance obligations typically lags behind payments received under contract from customers, which may lead to an increase in our deferred revenue balance over time.
Remaining Performance Obligations
As of December 31, 2021, we had total remaining performance obligations of $581.5 million, which represents the total contract transaction price allocated to undelivered performance obligations primarily for Create Solutions subscriptions, Enterprise Support, and Strategic Partnership contracts, which are generally recognized over the next one year to three years. Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and unbilled amounts that will be recognized as revenue in future periods. This amount excludes contracts with an original expected term of one year or less and contracts for which we recognize revenue in the amount and in the same period in which we invoice for services performed. We expect to recognize $204.6 million or 35% of this revenue during the next 12 months. We expect to recognize the remaining $376.8 million or 65% of this revenue thereafter.
v3.22.0.1
Cash Equivalents and Marketable Securities
 12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Cash Equivalents and Marketable Securities Cash Equivalents and Marketable Securities
Restricted cash, cash equivalents, and marketable securities consisted of the following as of December 31, 2021 (in thousands):
Amortized CostUnrealized GainsUnrealized LossesFair Value
Restricted cash:
Restricted cash$10,823 $— $— $10,823 
    Total restricted cash$10,823 $— $— $10,823 
Cash equivalents:
Money market funds$73,138 $— $— $73,138 
Total cash equivalents$73,138 $— $— $73,138 
Marketable securities:
Commercial paper$59,792 $— $— $59,792 
Asset-backed securities40,965 — (23)40,942 
Corporate bonds237,735 20 (353)237,402 
U.S. treasury securities272,678 1 (379)272,300 
Supranational bonds71,121 1 (235)70,887 
Total marketable securities$682,291 $22 $(990)$681,323 
Cash equivalents and marketable securities consisted of the following as of December 31, 2020 (in thousands):
Amortized CostUnrealized GainsUnrealized LossesFair Value
Restricted cash:
Restricted cash$21,369 $— $— $21,369 
Total restricted cash$21,369 $— $— $21,369 
Cash equivalents:
Money market funds$660,086 $— $— $660,086 
Commercial paper75,726 — — 75,726 
Total cash equivalents$735,812 $— $— $735,812 
Marketable securities:
Asset-backed securities49,950 54 (39)49,965 
Corporate bonds92,312 31 (21)92,322 
U.S. treasury securities327,025 81 (56)327,050 
Supranational bonds10,066 4 (1)10,069 
Total marketable securities$479,353 $170 $(117)$479,406 
We do not intend to sell any of the securities in an unrealized loss position and we expect to realize the full value of all these investments which may be upon maturity. We did not recognize any credit losses related to our available-for-sale debt securities during the years ended December 31, 2021,and 2020.
The following table summarizes the amortized cost and fair value of our marketable securities as of December 31, 2021, by contractual years to maturity (in thousands):
Amortized CostFair Value
Due within one year$381,269 $381,133 
Due between one and three years301,022 300,190 
Total$682,291 $681,323 
There were no material realized or unrealized gains or losses, either individually or in the aggregate during the year ended December 31, 2021, 2020, and 2019 for the years ended December 31, 2021 and 2020.
v3.22.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
We categorize assets and liabilities recorded or disclosed at fair value on our consolidated balance sheets based upon the level of judgment associated with inputs used to measure their fair value. The categories are as follows:
•Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.
•Level 2—Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments.
•Level 3—Inputs are unobservable inputs based on our own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation.
The following table presents the fair value of our financial assets and liabilities measured at fair value on a recurring basis using the above input categories as of December 31, 2021 (in thousands):
Level 1Level 2Level 3Total
Restricted cash:
Restricted cash$10,823 $— $— $10,823 
Total restricted cash$10,823 $— $— $10,823 
Cash equivalents:
Money market funds$73,138 $— $— $73,138 
Total cash equivalents$73,138 $— $— $73,138 
Marketable securities:
Commercial paper$— $59,792 $— $59,792 
Asset-backed securities— 40,942 — 40,942 
Corporate bonds— 237,402 — 237,402 
U.S. treasury securities— 272,300 — 272,300 
Supranational bonds— 70,887 — 70,887 
Total marketable securities$— $681,323 $— $681,323 
The following table presents the fair value of our financial assets and liabilities measured at fair value on a recurring basis using the above input categories as of December 31, 2020 (in thousands):
Level 1Level 2Level 3Total
Restricted cash:
Restricted cash$21,369 $— $— 21,369 
Total restricted cash$21,369 $— $— $21,369 
Cash equivalents:
Money market funds$660,086 $— $— $660,086 
Commercial paper— 75,726 — 75,726 
Total cash equivalents$660,086 $75,726 $— $735,812 
Marketable securities:
Asset-backed securities$— $49,965 $— $49,965 
Corporate bonds— 92,322 — 92,322 
U.S. treasury securities— 327,050 — 327,050 
Supranational bonds— 10,069 — 10,069 
Total marketable securities$— $479,406 $— $479,406 
v3.22.0.1
Acquisitions
 12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
Acquisitions AcquisitionsAcquisitions are accounted for in accordance with FASB ASC Topic 805, Business Combinations, and the revenue and earnings of the acquired businesses have been included in our results from the respective dates of the acquisitions and were not material to our consolidated financial statements.
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. We believe that these identified intangible assets will have no residual value after their estimated economic useful lives. The identifiable intangible assets are subject to amortization on a straight-line basis, 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 2021 and certain 2020 acquisitions, 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.
2021 Acquisitions
Weta Digital
In December 2021, we completed the purchase of certain assets and assembled workforce from Weta Digital,for a total consideration of approximately $1.5 billion. This amount was payable in a combination of approximately $1.0 billion in cash and the issuance of 3,468,362 shares of common stock valued at approximately $526.1 million. Weta Digital researches and develops sophisticated visual effects tools.
The following table summarizes the consideration paid for Weta Digital and the estimated fair values of the assets acquired at the acquisition date (in thousands):
Consideration:
Cash$1,000,001 
Common stock issued526,081 
Fair value of total consideration transferred$1,526,082 
Recognized amounts of identifiable assets acquired and liabilities assumed:
Intangible assets$668,400 
Total identifiable net assets assumed668,400 
Goodwill (1)
857,682 
Total$1,526,082 
(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 because it was acquired in a taxable asset purchase it is deductible for U.S. income tax purposes over a period of 15 years.
We recorded $5.9 million in transaction costs associated with the asset purchase for the year ended December 31, 2021. 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 and are not material to our consolidated financial results.
Ziva Dynamics
In December 2021, we completed the acquisition of Ziva Dynamics for total consideration of approximately $127.7 million in cash. Ziva Dynamics provides services and simulation software specializing in the development of characters to film, gaming, virtual, and augmented reality industries.
The following table summarizes the consideration paid for Ziva Dynamics and the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):
Consideration:
Cash$127,653 
Fair value of total consideration transferred$127,653 
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash$2,288 
Accounts receivable, net297 
Other current assets642 
Property and equipment, net457 
Intangible assets23,200 
Other assets and liabilities, net74 
Accrued expenses and other current liabilities(547)
Deferred revenue(493)
Deferred tax liability(2,534)
Total identifiable net assets assumed23,384 
Goodwill (1)
104,269 
Total$127,653 
(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 it is not typically deductible for Canadian income tax purposes. However, we will make an election, for Canadian tax purposes, to step-up the tax basis of Ziva Dynamics' intangibles and a portion of goodwill, offsetting the current tax implications of the step-up by using Ziva Dynamics' tax attributes (e.g. NOL). The estimated amount of goodwill that will be amortizable after the step-up election is approximately $3 million.
We recorded $1.3 million in transaction costs associated with the Ziva Dynamics acquisition for the year ended December 31, 2021. These costs were recorded within general and administrative expenses.
Pro forma results of operations for the Ziva Dynamics acquisition have not been presented because the acquisition is not material to the consolidated statements of operations and comprehensive loss.
Parsec
In September 2021, we completed the acquisition of Parsec for a total consideration of approximately $332.7 million in cash. Parsec designs and develops remote access streaming technology. Parsec offers a proprietary desktop capturing application primarily used for playing games through video streaming.
The following table summarizes the consideration paid for Parsec and the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):
Consideration:
Cash$332,729 
Fair value of total consideration transferred$332,729 
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash$23,402 
Accounts receivable, net1,349 
Intangible assets43,200 
Other assets and liabilities, net(124)
Deferred revenue(3,121)
Deferred tax liability(4,570)
Total identifiable net assets assumed60,136 
Goodwill (1)
272,593 
Total$332,729 
(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 it is not deductible for U.S. income tax purposes.
We recorded $1.3 million in transaction costs associated with the Parsec acquisition for the year ended December 31, 2021. These costs were recorded within general and administrative expenses.
Pro forma results of operations for the Parsec acquisition have not been presented because the acquisition is not material to the consolidated statements of operations and comprehensive loss.
Metaverse Technologies Limited
In June 2021, we completed the acquisition of Metaverse Technologies Limited ("Metaverse") for consideration of $45.7 million in cash.
Metaverse develops first class software and solutions to prepare and optimize computer-aided design ("CAD") data, reducing time and efforts and maximizing visualization performance. Metaverse bridges the gap between complex models that are made for design or engineering and the RT3D world.
The following table summarizes the consideration paid for Metaverse and the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):
Consideration:
Cash$45,721 
Fair value of total consideration transferred$45,721 
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash$1,093 
Intangible assets12,340 
Other assets and liabilities, net194 
Income and other taxes payable(1,470)
Other payable(345)
Deferred revenue(507)
Deferred tax liability(2,210)
Total identifiable net assets assumed9,095 
Goodwill (1)
36,626 
Total$45,721 
(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 it is not deductible for French income tax purposes.
We recorded $0.8 million in transaction costs associated with the Metaverse acquisition for the year ended December 31, 2021. These costs were recorded within general and administrative expenses.
Pro forma results of operations for the Metaverse acquisition have not been presented because the acquisition is not material to the consolidated statements of operations and comprehensive loss.
Other 2021 Acquisitions
In March 2021, we completed the acquisition of Visual Live 3D LLC ("Visual Live") for total consideration of approximately $24.8 million in cash. In aggregate, $5.1 million was attributed to intangible assets and represents acquired developed technology, customer relationships, and trademarks, $0.6 million was attributed to other assets, $19.8 million was attributed to goodwill and $0.6 million was attributed to other liabilities assumed.
In November 2021, we completed the acquisition of SyncSketch for total consideration of approximately $30.4 million in cash. In aggregate, $7.8 million was attributed to intangible assets and represents acquired developed technology, customer relationships, and trademarks, $0.8 million was attributed to other assets, $23.2 million was attributed to goodwill and $1.4 million was attributed to other liabilities assumed.
During the year ended December 31, 2021, we completed other acquisitions for total consideration of approximately $47.1 million payable in cash. In aggregate, $1.0 million represented cash acquired, $30.2 million was attributed to intangible assets and represented acquired developed technology, customer relationships and trademarks, $20.1 million was attributed to goodwill and $4.2 million was attributed to net liabilities assumed.
These acquisitions were strategic in nature as they enhanced our product offerings. We recorded $3.8 million in transaction costs associated with these acquisitions for the year ended December 31, 2021. These costs were recorded within general and administrative expenses.
Unaudited Pro Forma Financial Information
The following unaudited pro forma financial information presents the consolidated results of Weta Digital for the years ended December 31, 2021 and 2020, giving effect to the acquisition as if it had occurred on January 1, 2020, and combines the historical financial results of Weta Digital. 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):
Year Ended December 31,
20212020
Unaudited pro forma financial information
Pro forma revenue$1,110,526 $772,445 
Pro forma net loss$(640,134)$(408,291)
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.
2020 Acquisitions
Finger Food
In April 2020, we completed the acquisition of 100% of the issued share capital of Finger Food for consideration of $46.8 million payable in a combination of $23.6 million in cash and the issuance of 1,030,711 shares of common stock valued at $23.1 million.
Finger Food creates developer applications on top of our solutions for a variety of industries, such as automotive, construction, gaming and retail. The acquisition of Finger Food was strategic in nature as we look to create repeatable solutions from Finger Food’s projects and apply the know-how of customer engagement to our offerings.
The following table summarizes the consideration paid for Finger Food and the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):
Consideration:
Cash$23,626 
Common stock issued23,126 
Fair value of total consideration transferred$46,752 
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash$288 
Accounts receivable, net5,758 
Property and equipment, net1,307 
Operating lease ROU assets4,972 
Deferred tax assets1,327 
Customer relationships2,900 
Trademark200 
Income and other taxes payable(8,109)
Operating lease liabilities(4,972)
Other assets and liabilities, net(293)
Deferred tax liability(1,436)
Total identifiable net assets assumed1,942 
Goodwill44,810 
Total$46,752 
The acquired customer relationships and trademark intangible assets have useful lives of two years and six months, respectively. Goodwill of $44.8 million reflects the expected future benefits of certain synergies and acquired assembled workforce, which does not qualify for separate recognition as an identifiable intangible asset.
Other 2020 Acquisitions
During the year ended December 31, 2020, we completed other acquisitions for total consideration of approximately $31.6 million payable in a combination of $29.6 million in cash and the issuance of 72,479 shares of common stock valued at $2.0 million. In aggregate, $0.4 million represented cash acquired, $9.1 million was attributed to intangible assets and represents acquired developed technology, customer relationships and trademarks, $2.6 million was attributed to other assets, $23.3 million was attributed to goodwill, and $3.8 million was attributed to other liabilities assumed. These acquisitions were strategic in nature as they enhanced our product offerings.
We recorded approximately $4.1 million in transaction costs associated with acquisitions for the year ended December 31, 2020. These costs were recorded within general and administrative expenses.
Pro forma results of operations for these acquisitions have not been presented because they are not material to the consolidated statements of operations.
2019 Acquisitions
Vivox
In January 2019, we completed the acquisition of 100% of the issued share capital of Mercer Road Corporation ("Vivox") for consideration of $123.4 million payable in a combination of $119.0 million in cash and the issuance of 348,739 shares of common stock valued at $4.4 million.
Vivox provides cross-platform voice and text communication tools for social experiences where players can communicate regardless of location in game play, on any platform, whether it is mobile, personal computer or console. The acquisition of Vivox was strategic in nature as we look to deliver more services for connected games and other use cases.
The acquired developed technology has an estimated useful life of six years. The acquired customer relationships and trademark intangible assets have useful lives of two years and four years, respectively. Goodwill of $94.2 million reflects the expected future benefits of certain synergies and acquired assembled workforce, which does not qualify for separate recognition as an identifiable intangible asset.
deltaDNA
In September 2019, we completed the acquisition of 100% of the issued share capital of deltaDNA Limited ("deltaDNA") for consideration of $53.1 million payable in a combination of $32.8 million in cash and $20.3 million of our common stock. The total purchase price includes 928,123 common shares issued by us.
deltaDNA provides analytics, messaging and ad campaign management tools to enable real-time player life-cycle management. The acquisition of deltaDNA was strategic in nature as we look to integrate deltaDNA’s engagement tools and services to support our monetization products.
The acquired developed technology has an estimated useful life of six years. The acquired customer relationships and trademark intangible assets have useful lives of two years and three years, respectively. Goodwill of $35.2 million reflects the expected future benefits of certain synergies and acquired assembled workforce, which does not qualify for separate recognition as an identifiable intangible asset.
Artomatix
In December 2019, we completed the acquisition of 100% of the issued share capital of Artomatix Limited (“Artomatix”) for consideration of $48.8 million payable in a combination of $38.7 million in cash and $10.1 million of our common stock. The total purchase price includes 457,875 common shares issued by us.
Artomatix offers artificial intelligence (“AI”) and machine learning powered tools to simplify and automate parts of the 3D art creation process. The acquisition of Artomatix was strategic in nature as we look to expand our offering for 3D artists in addition to developers.
The acquired developed technology has an estimated useful life of six years. Goodwill of $39.0 million reflects the expected future benefits of certain synergies and acquired assembled workforce, which does not qualify for separate recognition as an identifiable intangible asset.
Other 2019 Acquisitions
During the year ended December 31, 2019, we completed other acquisitions and purchases of intangible assets for total consideration of approximately $8.2 million. In aggregate, $0.4 million represented cash acquired, $3.5 million was attributed to intangible assets and represents acquired developed technology, $0.4 million was attributed to other assets, $4.5 million was attributed to goodwill and $0.7 million was attributed to other liabilities assumed. These acquisitions generally enhance the breadth and depth of our offerings and expand our expertise in different functional areas.
We recorded $3.6 million in transaction costs associated with these acquisitions for the year ended December 31, 2019. These costs were recorded within general and administrative expenses.
v3.22.0.1
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2021
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, 2021 and 2020 (in thousands):
Balance as of December 31, 2019$218,305 
Goodwill acquired68,011 
Measurement period adjustment(65)
Balance as of December 31, 2020286,251 
Goodwill acquired1,334,074 
Measurement period adjustment(198)
Balance as of December 31, 2021$1,620,127 
Intangible Assets, Net
The following tables present details of our intangible assets, excluding goodwill (in thousands, except for weighted-average useful life):
As of December 31, 2021
Weighted-Average
Useful Life (1)
(In Years)
Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Developed technology8.8$580,204 $(52,811)$527,393 
Customer relationships2.950,171 (16,980)33,191 
Trademark5.760,557 (3,937)56,620 
Contractual relationship8.0200,000 (2,818)197,182 
Total intangible assets$890,932 $(76,546)$814,386 
As of December 31, 2020
Weighted-Average
Useful Life (1)
(In Years)
Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Developed technology5.8$83,688 $(32,342)$51,346 
Customer relationships2.213,327 (8,682)4,645 
Trademark3.33,507 (2,039)1,468 
Total intangible assets$100,522 $(43,063)$57,459 
(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):
Year Ended December 31,
202120202019
Amortization expense$33,483 $17,755 $11,570 
As of December 31, 2021, the estimated future amortization of finite-lived intangible assets for each of the next five years and thereafter was as follows (in thousands):
2022$130,074 
2023124,813 
2024120,314 
2025108,355 
202676,918 
Thereafter253,912 
Total$814,386 
v3.22.0.1
Balance Sheet Components
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Balance Sheet Components Balance Sheet Components
The following tables provide details of selected balance sheet items (in thousands):
As of
December 31,
2021		December 31,
2020
Property and equipment, net:
Gross property and equipment
Leasehold improvements$84,006 $65,669 
Computer and other hardware74,953 58,568 
Furniture27,916 23,685 
Internally developed software3,508 3,301 
Purchased software1,449 1,436 
Construction in progress12,075 13,343 
Total gross property and equipment203,907 166,002 
Accumulated depreciation and amortization (1)
(97,801)(70,458)
Property and equipment, net$106,106 $95,544 
(1)    The following table presents the depreciation and amortization of property and equipment included on our consolidated statements of operations (in thousands):
Year Ended December 31,
202120202019
Depreciation and amortization expense$31,084 $25,219 $19,543 
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):
As of
December 31,
2021		December 31,
2020
United States$36,718 $35,494 
Canada31,498 20,063 
United Kingdom15,011 17,846 
Greater China4,300 5,653 
EMEA, excluding United Kingdom (1)
12,587 11,181 
APAC (1)
3,052 3,546 
Other Americas, excluding Canada (1)
945 809 
Total long-lived assets, net$104,111 $94,592 
(1)    No individual country, other than those disclosed above, exceeded 10% of our total long-lived assets, net, for any period presented.
As of
December 31,
2021		December 31,
2020
Accrued expenses and other current liabilities:
Accrued expenses$60,937 $53,535 
Accrued compensation83,936 52,771 
Accrued expenses and other current liabilities$144,873 $106,306 
Sales Commissions
We consider internal sales commissions as incremental costs of obtaining the contract with a customer. We apply a practical expedient to expense incremental costs incurred if the period of the benefit is one year or less. Incremental costs that have a period of benefit greater than one year are capitalized and amortized over the estimated period of benefit. Capitalized commissions, net of amortization, are included in other current assets and other assets on our consolidated balance sheets. We capitalized $14.8 million and $8.8 million of sales commissions for the years ended December 31, 2021 and 2020, respectively.
As of December 31, 2021, capitalized commissions, net of amortization, included in other current assets and other assets were $7.9 million and $8.7 million, respectively. As of December 31, 2020, capitalized commissions, net of amortization, included in other current assets and other assets were $2.9 million and $4.4 million, respectively.
Capitalized commissions are amortized over the expected period of benefit, which we have determined, based on analysis, to be three years. Amortization of capitalized commissions are included in sales and marketing expenses on our consolidated statements of operations. For the years ended December 31, 2021 and 2020, we amortized $5.6 million and $1.5 million of capitalized commissions, respectively. We did not incur any impairment losses for the years ended December 31, 2021 and 2020.
v3.22.0.1
Leases
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Leases Leases
We have operating leases for offices which have remaining lease terms of less than one year to 10 years, some of which include options to extend the lease with renewal terms from one to five years. Some leases include an option to terminate the lease from less than one year up to five years from the lease commencement date.
Components of lease expense were as follows (in thousands):
Year Ended
December 31, 2021December 31,
2020
Operating lease expense, excluding ROU asset impairment$29,153 $29,265 
Short-term lease expense728 953 
Variable lease expense5,048 5,013 
Sublease income(325)(130)
Total lease expense$34,604 $35,101 
Other information related to operating leases was as follows (in thousands):
Year Ended
December 31, 2021December 31, 2020
Cash paid for amounts included in the measurement of operating lease liabilities$29,811 $29,336 
Operating lease ROU assets obtained in exchange for new operating lease liabilities$18,507 $24,647 
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, 2020, our operating leases had a weighted-average remaining lease term of 6.0 years and a weighted-average discount rate of 4.5%.
As of December 31, 2021, future minimum lease payments under our non-cancellable operating leases were as follows (in thousands):
Operating Leases (1)
2022$28,193 
202324,968 
202421,409 
202516,242 
202610,174 
Thereafter31,547 
Total future minimum lease payments132,533 
Less: imputed interest(16,265)
Present value of lease liabilities$116,268 
(1)    Excludes future minimum payments for leases which have not yet commenced as of December 31, 2021.
As of December 31, 2021, we had entered into leases that have not yet commenced with future minimum lease payments of $8.8 million that are not yet reflected on our consolidated balance sheets. These operating leases will commence in 2022 with lease terms of 2.1 years to 5.4 years.
In August 2018, we entered into a lease agreement for approximately 150,000 square feet of office space in San Francisco, California. In June 2021, we entered into an agreement to terminate the lease, which involved a one-time payment of $43.5 million, all of which was recorded in general and administrative expense on our consolidated statement of operations.
v3.22.0.1
Borrowings
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Borrowings Borrowings
Credit Agreement
On December 20, 2019, we entered into a revolving credit agreement (the “Credit Agreement”), which provided for a committed revolving loan facility of up to $125.0 million (the “Revolving Facility”) and included a $20.0 million letter of credit subfacility (the “LC Capacity” and together with the Revolving Facility, the “Credit Facility”). Borrowings under the Credit Facility were available for working capital and general corporate purposes. The Credit Facility had a maturity date of December 20, 2024.
At our option, we were to specify whether the loans made under the Revolving Facility were an Alternate Base Rate (“ABR”) borrowing or a Eurodollar borrowing, which then determined the annual interest rate. ABR borrowings bore interest at the ABR plus 0.50%. Eurodollar borrowings bore interest at the adjusted LIBO Rate plus 1.50%.
The ABR equaled the greatest of (i) the prime rate, (ii) the federal funds rate plus 0.50%, and (iii) the sum of the adjusted one-month LIBO Rate for a Eurodollar borrowing plus 1.00%. The ABR was subject to a floor of 1.00%.
For ABR borrowings, interest was payable on the last day of March, June, September, and December of each year. For Eurodollar borrowings, interest was payable on the last day of each interest period for the applicable borrowing, and if such interest period extended over three months, each day prior to the last day of each three-month interval during such interest period.
Commitments under the Revolving Facility are subject to a commitment fee of 0.25% on the difference between the total committed amount of the Revolving Facility on the one hand, and the amount drawn thereunder plus the aggregate amount of LC Capacity used on the other. An annual letter of credit fee of 1.50% of the average daily undrawn amount of the letters of credit issued thereunder was also payable quarterly. Letters of credit issued under the letter of credit subfacility were subject to a fronting fee of 0.125% on the average daily undrawn amount on such letters of credit.
In March 2020, we borrowed the full $125.0 million amount as a Eurodollar borrowing under the Revolving Facility. In September 2020, we repaid the $125.0 million of indebtedness under the Credit Facility using a portion of the net proceeds we received from our IPO.
In connection with this borrowing, we recognized $1.1 million and $1.5 million in expense primarily related to the interest cost associated with this borrowing, commitment fees on the undrawn portion, and amortization of debt issuance costs during the years ended December 31, 2021 and 2020, respectively. This amount is reported within "Interest expense" on our consolidated statements of operations and comprehensive loss.
Under the Credit Agreement, we were to maintain a minimum liquidity balance of $75.0 million as of the last day of the most recently completed four consecutive fiscal quarters, which commenced on June 30, 2020. The Credit Agreement contained customary conditions to borrowing, representations and warranties, events of default and covenants, including covenants that restrict our ability to incur indebtedness, grant liens, make investments, undergo corporate changes, make dispositions, prepay other indebtedness, pay dividends or other distributions and engage in transactions with our affiliates. The obligations under the Credit Agreement are secured by a perfected security interest in (i) all of our tangible and intangible assets, except for certain customary excluded assets, and (ii) all of our ownership in capital stock of restricted subsidiaries (limited, in the case of the stock of non-U.S. subsidiaries and U.S. subsidiaries that have no material assets other than equity interests and/or indebtedness in foreign subsidiaries that are controlled foreign corporations, to 65% of the capital stock of such subsidiaries). The obligations under the Credit Agreement are also guaranteed by our existing and subsequently acquired or formed material domestic subsidiaries.
In April 2021, we terminated without penalty our Credit Agreement. There was no outstanding indebtedness under the Credit Facility, and we determined that the Credit Facility was no longer necessary. We were in compliance in all material respects with the covenants in the Credit Agreement through April 2021, when the Credit Agreement was terminated.
Convertible Notes
In November 2021, we issued an aggregate of $1.7 billion principal amount of 0% Convertible Senior Notes due 2026, including the exercise in full by the initial purchasers of their option to purchase up to an additional $225.0 million aggregate principal amount of the 2026 Notes, pursuant to an Indenture dated as of November 19, 2021 (the “Indenture”), between us and U.S. Bank National Association, as trustee. The net 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. We may elect for special interest to accrue on the 2026 Notes as the sole remedy for any failure by us to comply with certain reporting requirements for the first 365 days after the occurrence of such failure under the Indenture. Special interest will accrue for any failure by us to comply with certain reporting requirements during the six-month period beginning on, and including, the date that is six months after the last date of original issuance of the 2026 Notes. Special interest will also accrue if, and for so long as, the restrictive legend on the 2026 Notes has not been removed, the 2026 Notes are assigned a restricted CUSIP number or the 2026 Notes are not otherwise freely tradeable by holders other than our affiliates as of the de-legending deadline date set forth in the Indenture until the restrictive legend has been removed from the 2026 Notes, the 2026 Notes are assigned an unrestricted CUSIP number and the 2026 Notes are freely tradable. Holders of the 2026 Notes may receive special interest under specified circumstances as outlined in the Indenture. Special interest, if any, will be payable semiannually in arrears on November 15 and May 15 of each year, beginning on May 15, 2022 (if and to the extent that special interest is then payable on the 2026 Notes). 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.
We may not redeem the Notes prior to November 20, 2024. We may redeem for cash all or any portion of the 2026 Notes, at our option, on or after November 20, 2024 if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30-consecutive-trading-day period (including the last day of such period), ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid special interest, if any, to, but excluding, the redemption date. If we redeem less than all the outstanding 2026 Notes, at least $150.0 million aggregate principal amount of 2026 Notes must be outstanding and not subject to redemption as of, and after giving effect to, delivery of the relevant notice of redemption. No sinking fund is provided for the convertible notes, which means that we are not required to redeem or retire them periodically.

Holders of the 2026 Notes may convert all or a portion of their 2026 Notes at their option at any time prior to the close of business on the business day immediately preceding August 15, 2026, in multiples of $1,000 principal amounts, only under the following circumstances:
•during any calendar quarter commencing after the calendar quarter ending on March 31, 2022 (and only during such calendar quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the preceding calendar quarter is greater than or equal to 130% of the applicable conversion price of the 2026 Notes on each such trading day;
•during the five business day period after any ten consecutive trading day period in which the trading price per $1,000 principal amount of the 2026 Notes for each trading day of that ten consecutive trading day period was less than 98% of the product of the last reported sale price of our common stock and the applicable conversion rate of the 2026 Notes on each such trading day;
•if we call such 2026 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date, but only with respect to the 2026 Notes called (or deemed called) for redemption; or
•on the occurrence of specified corporate events set forth in the Indenture.
On or after August 15, 2026, the 2026 Notes are convertible at any time until the close of business on the second scheduled trading day immediately preceding the maturity date, regardless of the foregoing circumstances.

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 following our issuance of a notice of redemption, in each case as described in the Indentures, we will increase the conversion rate for a holder of the 2026 Notes who elects to convert its 2026 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 2026 Notes may require us to repurchase all or a portion of the 2026 Notes at a price equal to 100% of the principal amount of 2026 Notes to be repurchased, plus any accrued and unpaid special interest, if any, to, but excluding, the fundamental change repurchase date.

We accounted for the issuance of the 2026 Notes as a single liability measured at its amortized cost, as no other embedded features require bifurcation and recognition as derivatives.
As of
December 31, 2021
Convertible note:
Principal$1,725,000 
Unamortized debt issuance cost(21,965)
Net carrying amount$1,703,035 
Interest expense related to the amortization of debt issuance costs was $0.5 million for the year ended December 31, 2021.
As of December 31, 2021, the if-converted value of the 2026 Notes did not exceed the principal amount. The sale price for conversion was not satisfied as of December 31, 2021 for the 2026 Notes. The 2026 Notes were not eligible for conversion as of 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, 2021, the Capped Call Transactions were not in the money.
v3.22.0.1
Commitment and Contingencies
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
The following table summarizes our non-cancelable contractual commitments as of December 31, 2021 (in thousands):
Total20222023-20242025-2026Thereafter
Purchase commitments (1)
$692,215 $116,865 $279,744 $295,606 $— 
(1)    The substantial majority of our purchase commitments are related to agreements with our data center hosting providers.
Data Center Hosting Commitments
In September 2021, we entered into an amended cloud service agreement with an additional term of five years beginning on the amendment date. In December 2021, we entered into an amended commitment agreement to increase the annual commitments over the contract term. Under the agreement and amendment, we were granted access to use certain cloud services. Minimum annual commitments increase annually over the term of the agreement. The aggregate value of all annual minimum commitments over the contract term is $700.0 million over five years. Total spend under the original and amended cloud service agreements for the years ended December 31, 2021, 2020, and 2019 was approximately $117.7 million, $63.2 million, and $32.7 million, respectively. The total spend under the amended cloud service agreement for the year ended December 31, 2021 was $32.9 million. 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 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.
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, 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.
Letters of Credit
We had $10.8 million and $21.4 million of secured letters of credit outstanding as of December 31, 2021 and 2020, 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 based on the term of the remaining restriction.
v3.22.0.1
Stockholders' Equity and Employee Compensation Plans
 12 Months Ended
Dec. 31, 2021
Equity [Abstract]  
Stockholders' Equity and Employee Compensation Plans Stockholders’ Equity and Employee Compensation Plans
Stockholders' Equity
Employee Compensation Plans
2009 Stock Plan, 2019 Stock Incentive Plan, and 2020 Equity Incentive Plan
The Company adopted the 2009 Stock Plan, 2019 Stock Incentive Plan ("2019 Stock Plan") and the 2020 Equity Incentive Plan ("2020 Plan"), primarily for the purpose of granting stock-based awards to employees and non-employee directors. Upon the effectiveness of the 2020 Plan in August 2020, no further grants may be made under the Company's 2009 Stock Plan and 2019 Stock Plan. Any options or awards outstanding under the 2009 Stock Plan and 2019 Stock Plan remained outstanding and effective. Any shares under 2009 Stock Plan and 2019 Stock Plan that expire, or are forfeited, cancelled, withheld, or reacquired will become available for new grant under the 2020 Plan.
The 2020 Plan provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, and other forms of awards to employees, directors, and consultants, including employees and consultants of our affiliates.
The exercise price of stock options granted under the 2020 Plan must be at least equal to the fair market value of a share of our common stock on grant date and the exercise price of incentive stock options granted to any participant, who owns more than 10% of the total voting power of all classes of our outstanding stock, must be at least 110% of the fair market value on the grant date.
The term of a stock option and stock appreciation right may not exceed 10 years, except with respect to any participant who owns 10% of the voting power of all classes of our outstanding stock, the term of an incentive stock option may not exceed five years.
As of December 31, 2021, we had reserved a total of 77.1 million shares of common stock under the 2020 Plan, of which 34.2 million were available for grant.
2020 Employee Stock Purchase Plan
Our board of directors adopted the 2020 ESPP in August 2020 and our stockholders approved the 2020 ESPP in September 2020. The 2020 ESPP permits participants 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 8.0 million shares, all of which were available for issuance as of December 31, 2021. The number of shares reserved and available for issuance under the 2020 ESPP will automatically increase on January 1 of each year, beginning on January 1, 2021 through January 31, 2030, by 1.0% of the total number of shares of common stock outstanding on December 31 of the preceding calendar year.
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, 2021, 2020, and 2019, we contributed and expensed $9.1 million, $6.8 million, and $5.9 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, 2021, 2020, and 2019, we contributed and expensed $18.3 million, $10.6 million, and $7.1 million, respectively, to the plan.
v3.22.0.1
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock‑Based Compensation
We recorded stock-based compensation expense related to grants to employees, including those in connection with modified awards, on our consolidated statements of operations as follows (in thousands):
Year Ended December 31,
202120202019
Cost of revenue$24,811 $10,626 $3,198 
Research and development165,604 66,038 13,521 
Sales and marketing70,663 23,769 6,124 
General and administrative86,081 34,196 21,637 
Total stock-based compensation expense$347,159 $134,629 $44,480 
As of December 31, 2021, there was unrecognized compensation expense related to outstanding stock options of $103.6 million to be recognized over the weighted-average remaining vesting period of 2.15 years. As of December 31, 2021, there was unrecognized compensation expense related to unvested restricted stock units of $1.0 billion to be recognized over the weighted-average remaining vesting period of 2.95 years. As of December 31, 2021, there was unrecognized compensation expense related to our 2020 ESPP of $1.7 million to be recognized over the weighted-average vesting period of 0.17 years. In future periods, stock-based compensation expense may increase as we issue additional equity-based awards to continue to attract and retain employees.
In March 2021, we entered into a separation agreement with our former Chief Financial Officer. The agreement provided for payment of a one-time lump-sum severance benefit of $0.3 million, payment for coverage under COBRA and modification of her equity awards. Incremental stock-based compensation expense of $12.6 million in connection with the modified equity awards was recorded in general and administrative expense in the year ended December 31, 2021. The one-time lump-sum severance benefit of $0.3 million was paid in full as of December 31, 2021 and was recorded in general and administrative expense.
In November 2019, we entered into a separation agreement with our former Chief People Officer. Our Board of Directors (excluding the CEO) approved the agreement providing for payment of her earned bonus, payment for coverage under COBRA and modification of her equity awards. Incremental stock-based compensation expense of $13.5 million in connection with the modified equity awards was recorded in general and administrative expense in the year ended December 31, 2019.
Stock Options
A summary of our stock option activity under the 2009 Stock Plan, 2019 Stock Plan, and 2020 Plan is as follows:
Options Outstanding
Stock
Options
Outstanding		Weighted-Average
Exercise
Price		Weighted-Average
Remaining
Contractual
Term
(In Years)
Balance as of December 31, 201942,728,180 $5.77 7.35
Granted5,348,737 $21.03 
Exercised(6,758,226)$3.76 
Forfeited, cancelled, or expired(860,816)$10.35 
Balance as of December 31, 202040,457,875 $8.03 6.87
Granted1,325,352 $107.10 
Exercised(11,650,963)$5.72 
Forfeited, cancelled, or expired(906,223)$13.23 
Balance as of December 31, 202129,226,041 $13.28 6.26
Exercisable as of December 31, 202120,056,867 $6.15 5.46
In 2014, we issued nonplan options to purchase 4,250,000 shares of common stock, 8,500,000 when taking into account the 2:1 forward stock split we effected in 2017, to our CEO with an exercise price of $2.85 per share. These options vested over four years and were immediately exercisable. We accepted a promissory note receivable from our CEO in consideration for the early exercise of these nonplan options. The note receivable, totaling $12.1 million, bore interest at a rate of 1.72% and had a term of seven years. The promissory note receivable was considered nonrecourse. Due to the nonrecourse nature of the note, the resulting exercise of the nonplan options was determined to not be substantive. Therefore, we did not reflect the exercise of the stock options or the note receivable for accounting purposes on our consolidated balance sheets at the time the promissory note was executed. The shares issued were considered restricted until the note was repaid.
During 2016, $4.2 million of the note was partially repaid and an amended promissory note was put in place for an amount of $8.0 million bearing interest at a rate of 1.72% and with a remaining term of five years. For accounting and reporting purposes, the repayment of the note was considered to be a $4.2 million exercise of stock options during the year ended December 31, 2016. In June 2020, our CEO fully repaid the $8.0 million principal balance and $0.9 million in related interest of the nonrecourse promissory note that we issued in 2016. For accounting and reporting purposes, the repayment of the note was considered to be an $8.9 million exercise of stock options during the year ended December 31, 2020.
The aggregate pretax intrinsic value of stock options exercised during the years ended December 31, 2021, 2020, and 2019, was $1,394.7 million, $441.0 million, and $92.0 million respectively. 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 weighted-average grant-date fair value of stock options granted during the years ended December 31, 2021, 2020, and 2019, was $39.05, $10.66, and $8.39 per share, respectively. The fair value of stock options vested during the years ended December 31, 2021, 2020, and 2019, was $48.9 million, $44.1 million, and $27.8 million, respectively.
The calculated grant-date fair value of stock options granted was estimated using the Black-Scholes option-pricing model with the following assumptions:
Year Ended
December 31, 2021December 31, 2020December 31, 2019
Expected dividend yield———
Risk-free interest rate
0.9% - 1.3%
0.4% - 0.6%
1.6% - 2.5%
Expected volatility
32.9% - 36.2%
33.8% - 36.3%
34.0% - 34.7%
Expected term (in years)6.256.006.25
Fair value of underlying common stock
$100.60 - $152.34
$22.00 - $152.00
$12.66 - $22.09
Restricted Stock Units
A summary of our RSU activity under the 2019 Stock Plan and 2020 Plan is as follows:
Unvested Restricted Stock Units
Number of
Shares		Weighted-Average
Grant-Date
Fair Value
Unvested as of December 31, 20192,849,378 $22.06 
Granted7,706,961 $62.26 
Vested(804,312)$28.55 
Forfeited(190,236)$28.47 
Unvested as of December 31, 20209,561,791 $53.79 
Granted8,060,505 $112.11 
Vested(3,131,986)$58.23 
Forfeited(793,474)$73.36 
Unvested as of December 31, 202113,696,836 $85.96 
The total fair value of RSUs vested as of the vesting dates during the years ended December 31, 2021 and 2020 was $442.1 million and $85.9 million, respectively. No RSUs vested during the year ended December 31, 2019.
The RSUs granted prior to our IPO are subject to both a service-based vesting condition, which is satisfied over one to four years, and a liquidity event vesting condition, which was satisfied upon the completion of our IPO in September 2020. In the third quarter of 2020, we recorded cumulative stock-based compensation expense of $47.8 million related to all then-outstanding RSUs as the liquidity event vesting condition was satisfied upon the completion of our IPO.
Employee Stock Purchase Plan
The first offering period under the 2020 ESPP began on September 1, 2021 and ends on February 28, 2022. The fair value of stock purchase rights granted under the 2020 ESPP was estimated using the following assumptions:
Year Ended
December 31, 2021
Expected dividend yield—
Risk-free interest rate0.1%
Expected volatility27.2%
Expected term (in years)0.50
Estimated fair value$28.64
v3.22.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Loss before provision for income taxes consisted of the following for the years ended December 31, 2021, 2020, and 2019 (in thousands):
Year Ended December 31,
202120202019
United States$(318,907)$(185,580)$(120,135)
Foreign(212,323)(94,637)(33,107)
Total$(531,230)$(280,217)$(153,242)
The components of the provision for income taxes consists of the following for the years ended December 31, 2021, 2020, and 2019 (in thousands):
Year Ended December 31,
202120202019
Current:
U.S. federal$(111)$183 $331 
State219 155 108 
Foreign13,594 4,412 14,186 
Total current tax expense (benefit)13,702 4,750 14,625 
Deferred:
U.S. federal(4,874)— (6,746)
State(851)(156)(1,147)
Foreign(6,600)(2,503)3,216 
Total deferred tax expense (benefit)(12,325)(2,659)(4,677)
Total tax provision$1,377 $2,091 $9,948 
Reconciliations of the income tax provision at the U.S. federal statutory tax rate to the provision for income taxes are as follows (in thousands):
Year Ended December 31,
2021
2020 (1)
2019
U.S. federal statutory tax rate$(111,558)$(58,846)$(32,181)
Changes in income taxes resulting from:
State tax expense, net of federal benefit(36,984)(12,698)(4,865)
Foreign income taxed at different rates(30,114)(29,958)7,695 
Federal Research and development credits(31,088)(12,338)(5,756)
Stock-based compensation(91,623)(22,624)(5,305)
Change in valuation allowance301,330 139,219 49,477 
Other1,414 (664)883 
Total tax provision$1,377 $2,091 $9,948 
(1)    Certain prior year amounts have been reclassified to conform to current year presentation.
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 United Kingdom 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. Our income tax provision for the year ended December 31, 2020 was primarily driven by earnings of our foreign subsidiaries which are taxed at rates that differ from the U.S. statutory tax rate and losses that cannot be benefited due to the valuation allowance on United States and Denmark entities. Our income tax provision for the year ended December 31, 2019 was primarily driven by $8.5 million tax expense related to an intercompany transaction with a subsidiary.
The types of temporary differences that give rise to significant portions of our deferred tax assets and liabilities as of December 31, 2021 and 2020 are set forth below (in thousands):
As of December 31,
2021
2020 (1)
Deferred tax assets:
Net operating losses$332,622 $118,244 
Tax credits81,847 35,630 
Accruals and reserves9,261 8,537 
Deferred revenue5,683 4,960 
Stock-based compensation29,647 20,394 
Charitable contribution13,707 13,834 
Capitalized R&D expenditures94,686 56,596 
Depreciation and amortization— 4,300 
Operating lease liabilities24,137 22,477 
Other1,134 150 
Gross deferred tax assets592,724 285,122 
Valuation allowance(568,124)(265,781)
Total deferred tax assets24,600 19,341 
Deferred tax liabilities:
Depreciation and amortization(4,469)— 
Operating lease right-of-use assets(20,467)(19,341)
Other— (260)
Total deferred tax liabilities(24,936)(19,601)
Net deferred tax assets$(336)$(260)
(1)    Certain prior year amounts have been reclassified to conform to current year presentation.
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, 2021 and 2020, and as such, we have maintained a full valuation allowance against such deferred tax assets. For the period ended December 31, 2021, we determined that due to the weight of objectively verifiable negative evidence, our U.K. deferred tax assets are no longer more likely than not to be realized in the future and a full valuation allowance was recorded.
The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. 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 $302.3 million and $142.4 million in the years ended December 31, 2021 and 2020, respectively. The increase in the valuation allowance in the years ended December 31, 2021 and 2020 was primarily related to deferred tax assets for which insufficient positive evidence exists to support their realizability.
In the tax year ended December 31, 2021, we capitalized certain research and development costs incurred by our foreign subsidiary, which resulted in a deferred tax asset of $38.1 million. This deferred tax asset for the capitalized research and development costs is offset by a valuation allowance.
Our NOL carryforwards for U.S. federal, state, and foreign purposes were $1.0 billion, $392.2 million, and $449.8 million, 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 $69.2 million, $28.4 million and $6.2 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, 2021, 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, 2021.
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):
As of December 31,
2021
2020 (1)
2019 (1)
Unrecognized tax benefits, beginning balance$74,670 $37,392 $23,980 
Gross increases for tax positions taken in prior years1,729 1,689 1,565 
Gross decreases for tax positions taken in prior years(2,507)(694)(6,239)
Gross increases for tax positions taken in current year38,406 38,829 19,398 
Gross decreases for tax positions taken in current year— — — 
Reductions resulting from lapses of statues of limitations(1,700)(2,952)(1,258)
Foreign exchange gains and losses(283)406 (54)
Unrecognized tax benefits, ending balance$110,315 $74,670 $37,392 
(1)    Certain prior year amounts have been reclassified to conform to current year presentation.
As of December 31, 2021 and 2020, we had unrecognized tax benefits of $110.3 million and $74.7 million, respectively, of which $11.9 million and $9.0 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, 2021 and 2020 were $2.5 million and $2.2 million, respectively, of which $0.3 million and $(0.2) million was accrued in the period ended December 31, 2021 and 2020, respectively.
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 and Denmark. 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 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.
v3.22.0.1
Net Loss per Share of Common Stock
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Net Loss per Share of Common Stock Net Loss per Share of Common Stock
Basic net loss per share attributable to our common stockholders is computed using the weighted-average number of common shares outstanding during the period, less shares subject to repurchase.
Diluted net loss per share is computed by giving effect to all potentially dilutive common stock outstanding for the period, including stock options and RSUs, using the treasury stock method, and the 2026 Notes, using the if-converted method.
Diluted net loss per share is the same as basic net loss per share for all periods presented because the effects of potentially dilutive items were antidilutive given our net loss in each period presented.
The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data):
Year Ended December 31,
202120202019
Basic and diluted net loss per share
Numerator:
Net loss$(532,607)$(282,308)$(163,190)
Add: Deemed dividends representing excess paid over initial issuance price to repurchase convertible preferred stock— — (110,241)
Net loss attributable to our common stockholders$(532,607)$(282,308)$(273,431)
Denominator:
Weighted-average common shares used in per share computation, basic and diluted282,195 169,973 114,442 
Net loss per share, basic and diluted$(1.89)$(1.66)$(2.39)
The following table presents the forms of antidilutive potential common shares excluded from the computation of diluted net loss per share for the following periods (in thousands):
Year Ended December 31,
202120202019
Convertible preferred stock— — 95,899 
Convertible notes9,091 — — 
Stock options29,226 40,458 42,728 
Unvested RSUs13,697 10,366 2,849 
v3.22.0.1
Subsequent Events
 12 Months Ended
Dec. 31, 2021
Subsequent Events [Abstract]  
Subsequent Events Subsequent EventsIn January 2022, we completed the acquisition of a company that provides 2D art creation tools and game templates with the goal of providing consumers the ability to create, play, and share their own 2D games. The purchase consideration for this acquisition was approximately $50.0 million, payable with a combination of cash and common stock. Prior to the completion of the acquisition, we held a minority investment in the acquired company that we accounted for using the equity method of accounting.
v3.22.0.1
Description of Business and Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2021
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. and its wholly owned subsidiaries. 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, allowances for doubtful accounts, fair values of financial instruments, useful lives of fixed assets, the incremental borrowing rate ("IBR") we use to determine our operating lease liabilities, income taxes, valuation of deferred tax assets and liabilities, valuation of intangible assets, useful lives of intangible assets, assets acquired and liabilities assumed through business combinations, valuation of stock-based compensation, capitalization of software costs and software implementation costs, customer life for capitalized commissions, and other contingencies, among others. Actual results could differ from those estimates, and such differences could be material to our financial position and results of operations.
Revenue Recognition
Revenue Recognition
Revenue is recognized upon the transfer of control of promised products and services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services.
We evaluate and recognize revenue by:
•identifying the contract(s) with the customer;
•identifying the performance obligation(s) in the contract(s);
•determining the transaction price;
•allocating the transaction price to performance obligation(s) in the contract(s); and
•recognizing revenue as each performance obligation is satisfied through the transfer of a promised good or service to a customer (“transfer of control”).
The five-step model requires us to make significant estimates in situations where we are unable to establish stand-alone selling price based on various observable prices using all information that is reasonably available. Observable inputs and information we use to make these estimates include historical internal pricing data and cost plus margin analysis.
We generate revenue through three sources: (1) Create Solutions, which consists primarily of our subscription offerings and professional services; (2) Operate Solutions, which includes our monetization services, hosting, and multiplayer services, and voice services; and (3) Strategic Partnerships and Other, which are primarily arrangements with strategic hardware, operating system, device, game console, and other technology providers for the customization and development of our software to enable interoperability with these platforms. We recognize revenue as our contractual performance obligations are satisfied. When contracts with our customers contain multiple performance obligations, we allocate the overall transaction price, which is the amount of consideration to which we expect to receive in exchange for promised goods or services, to each of the distinct performance obligations based on their estimated relative standalone selling prices.
Create Solutions
    Create Solutions Subscriptions
Our subscriptions, mainly consisting of Unity Pro and Unity Plus (collectively, the “Create Solutions subscriptions”) are fully integrated content development solutions that enable customers to build interactive real-time 2D and 3D applications. These Create Solutions subscriptions provide customers with the rights to a software license with embedded cloud functionality and multi-platform support. Significant judgment is required to determine the level of integration and interdependency between individual promises of the Create Solutions subscriptions. This determination influences whether the software is considered distinct and accounted for separately as a license performance obligation recognized at a point in time, or not distinct and accounted for together with other promises in the Create Solutions subscriptions as a single performance obligation recognized over time. Under FASB ASC Topic 606, Revenue from Contracts with Customers (“Topic 606”), we have concluded that the software license is not distinct from the multi-platform support as they are highly interdependent and interrelated considering the significant two-way dependency between the promises. Although the promise to the embedded cloud functionality represents separate performance obligations under Topic 606, we have accounted for these obligations as if they are a single performance obligation that includes the software license and the multi-platform support because the cloud functionality has the same pattern of transfer to the customer over the duration of the subscription term.
The transaction price is determined based on the consideration that we will be entitled to receive in exchange for transferring our Create Solutions subscriptions to the customer, and we do not have material variable consideration. We recognize the single performance obligation ratably over the contract term beginning when the license key is delivered.
Enterprise customers may purchase an enhanced support offering (“Enterprise Support”) that is sold separately from the Create Solutions subscriptions, and is capable of being distinct, and is distinct within the context of the contract due to its separate utility. Enterprise Support is generally billed in advance and is recognized ratably over the support term as we have a stand-ready performance obligation over the support term. When an arrangement includes Enterprise Support and Create Solutions subscriptions, which have the same pattern of transfer to the customer (the services transfer to the customer over the same period), we account for those performance obligations as if they are a single performance obligation. If an arrangement includes Enterprise Support and Create Solutions subscriptions that do not have the same pattern of transfer, we allocate the transaction price to the distinct performance obligations and recognize them ratably over their respective terms.
Create Solutions subscriptions typically have a term of one to three years and are generally billed in advance and recognized ratably over the term.
    Professional Services
Our professional services revenue is primarily composed of consulting, integration, training, and custom application and workflow development. Professional services may be billed in advance or on a time and materials basis and we recognize the related revenue as services are rendered.
We typically invoice our customers up front or when promised services are delivered, and the payment terms vary by customer type and location. The term between billing and payment due dates is not significant. As a result, we have determined that our contracts do not include significant financing component.
Customer billings related to taxes imposed by and remitted to governmental authorities on revenue-producing transactions are reported on a net basis.
Operate Solutions
    Monetization
We generate advertising revenue through our monetization solutions, including the Unified Auction, which allows publishers to sell the available advertising inventory from their mobile applications to advertisers. We enter into contracts with both advertisers and publishers to participate in the Unified Auction. For advertisements placed through the Unified Auction, we evaluate whether we are the principal (in which case revenue is reported on a gross basis) or the agent (in which case revenue is reported on a net basis). The evaluation to present revenue on a gross basis versus net basis requires significant judgment. We have concluded that the publisher is our customer and we are the agent in facilitating the fulfillment of the advertising inventory in the Unified Auction primarily because we do not control the advertising inventory prior to the placement of an advertisement. As the operator of the Unified Auction, our role is to enable the publisher to monetize its advertising inventory with the advertiser based on the bid/ask price from the auction. We do not control the outcome of the bids and do not have pricing latitude in the transaction. Based on these and other factors, we report advertising revenue based on the net amount retained from the transaction which is our revenue share. Advertising revenue is recognized at a point in time when control is transferred to the customer. This occurs when a user installs an application after seeing an advertisement contracted on a cost-per-install basis or when an advertisement starts on a cost-per-impression basis. Typically, we do not retain a share of the revenue generated through Unity IAP (“In-App Purchases”). Publisher payables represent amounts earned by publishers in the Unified Auction and are presented as a reduction of revenue in our consolidated statements of operations. Payment terms are contractually defined and vary by publisher and location.
    Cloud and Hosting Services
We provide cloud-based services as well as enterprise hosting (“Hosting Services”) to developers that develop and operate multiuser/multiplayer games and applications through a combination of hardware server and cloud-based infrastructure and services. The Hosting Services facilitate the connection of end users, and allow content game and application operators to monitor network traffic. Our cloud-based services provide our customers with tools and services to develop and operate live games and applications, including voice chat services. We primarily sell these services on a fixed fee or consumption-based model with fixed fees billed monthly in advance and consumption fees billed monthly in arrears. We recognize revenue ratably over the contractual service term for fixed fee arrangements as we have a stand-ready performance obligation that is generally fulfilled evenly throughout the hosting period. We recognize revenue for consumption-based arrangements as services are provided.
Strategic Partnerships and Other
We enter into strategic contracts with owners of hardware, operating system, device, game console and other technology providers to customize our software licenses to enable interoperability with these platforms (“Strategic Partnerships”). This allows customers using our Create Solutions subscriptions to build and publish content to more than one platform without having to write platform-specific code. We consider these strategic partners as our customers and generally provide them with the following promises in our contracts: (i) development and customization of our software to integrate with the customer’s platform and (ii) post-integration ongoing support and updates.
We generally view these promises as one single performance obligation as they are not distinct within the context of the contract. This is because the customized software license that is integrated with the customer’s platform requires continuous updates that are critical to the utility of the customized software.
The transaction price is determined based on the consideration that we will be entitled to receive in exchange for transferring our goods and services to the customer. We do not have material variable consideration. When Strategic Partnerships contain non-monetary consideration, we measure and record the transaction price at the estimated fair value of the non-cash consideration received from the customer. Typically, we recognize revenue for these contracts over time as service is performed using the input method to measure progress of the satisfaction of the performance obligation.
Certain Strategic Partnerships also require the customer to pay sales-based royalties based on the sales of games on the Strategic Partner platform that incorporate our customized software. Since customized software intellectual property is the predominant item to which royalty relates, we recognize revenue for sales-based royalties when the later of the subsequent sale or usage occurs, or the performance to which some or all of the sales-based royalty has been allocated has been satisfied. We record revenue under these arrangements for the amounts due to us based on estimates of the sales of these customers and pursuant to the terms of the contracts.
The Strategic Partnerships are typically multi-year arrangements where customers make payments commensurate with milestones accomplished with respect to the development and integration service or pay in advance on a quarterly basis.
Cost of Revenue
Cost of revenue for the delivery of software tools, support, updates 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.
Contract Balances
Timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets relate to performance completed in advance of scheduled billings. The primary changes in our contract assets and contract liabilities are due to our performance under the contracts and billings.
Remaining Performance Obligations
As of December 31, 2021, we had total remaining performance obligations of $581.5 million, which represents the total contract transaction price allocated to undelivered performance obligations primarily for Create Solutions subscriptions, Enterprise Support, and Strategic Partnership contracts, which are generally recognized over the next one year to three years. Transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized, which includes deferred revenue and unbilled amounts that will be recognized as revenue in future periods. This amount excludes contracts with an original expected term of one year or less and contracts for which we recognize revenue in the amount and in the same period in which we invoice for services performed. We expect to recognize $204.6 million or 35% of this revenue during the next 12 months. We expect to recognize the remaining $376.8 million or 65% of this revenue thereafter.
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 estimates 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 is based upon the historical volatility of a number of publicly traded companies in similar industry. We have historically not declared or paid any dividends and does 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.
We recognize stock-based compensation expense for stock options and RSUs, 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 have elected to account for forfeitures as they occur.
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 and commercial paper.
Restricted cash consists of secured letters of credit issued in connection with our operating leases. 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.
Marketable Securities
Marketable Securities
Our marketable securities consist of investments in 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.
These investments are considered impaired when a decline in fair value is judged to be other-than-temporary. We consider available quantitative and qualitative evidence in evaluating potential impairment of our investments on a quarterly basis. If the cost of an individual investment exceeds its fair value, we evaluate, among other factors, general market conditions, the duration and extent to which the fair value is less than cost, and our intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded and a new cost basis in the investment is established.
Accounts Receivable Accounts ReceivableWe record accounts receivable at the invoiced amount. We maintain an allowance for doubtful accounts for any receivables we may be unable to collect, based on historical loss patterns, the number of days that billings are past due, and an evaluation of the potential risk of loss associated with delinquent accounts. In addition, we review the accounts receivable amounts due from customers that are past due to identify specific customers with known disputes or collectability issues. In determining the amount of the reserve, we make judgments about the creditworthiness of customers based on ongoing credit evaluations. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.
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, marketable securities, and accounts receivable. We place our domestic and foreign cash and cash equivalents, as well as our marketable securities, 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.
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. We apply fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Goodwill, intangible assets, and other long-lived assets are measured at fair value on a nonrecurring basis, only if impairment is indicated. The carrying amounts reported in the consolidated financial statements approximate the fair value for cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities, due to their short-term nature.
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 and foreign currency translation adjustment.
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. Depreciation commences upon placing the asset in service. An estimated useful life of three years is used for computer and other hardware and five years is used for furniture. Leasehold improvements are amortized over the shorter of the estimated useful life or the remaining term of the lease. Software is amortized over the estimated useful life or license term, generally either three 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
Leases
We determine if a contract contains a lease based on whether we have the right to obtain substantially all of the economic benefits from the use of an identified asset and whether we have the right to direct the use of an identified asset in exchange for consideration, which relates to an asset which we do not own. Right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets are recognized as the lease liability, adjusted for lease incentives received and prepayments made. Lease liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is our IBR because the interest rate implicit in most of our leases is not readily determinable. The IBR is a hypothetical rate based on our understanding of what our credit rating would be. Lease payments may be fixed or variable; however, only fixed payments or in-substance fixed payments are included in our lease liability calculation. Variable lease payments are recognized in operating expenses in the period in which the obligation for those payments are incurred.
Convertible Senior Notes and Capped Call Transactions
Convertible Senior Notes and Capped Call Transactions
We account for the issuance of convertible senior notes as a single liability measured at its 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.
Business Combinations
Business Combinations
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.
Accounting for business combinations requires us to make significant estimates and assumptions, especially with respect to intangible assets. Although we believe the assumptions and estimates we have made are reasonable, they are based in part on historical experience and information obtained from the management of the acquired companies and are inherently uncertain. Examples of critical estimates used in valuing certain of the intangible assets we have acquired or may acquire in the future include but are not limited to:
•future expected revenues and cash flows from acquired intangible assets;
•the economic life used on acquired company’s trade name, trademark, existing customer relationship, and contractual relationship, as well as assumptions about the period of time the acquired trade name and trademark will continue to be used in our product portfolio;
•the expected use of the acquired intangible assets; and
•discount rates.
These estimates are inherently uncertain and unpredictable. Unanticipated events and circumstances may occur which may affect the accuracy or validity of such assumptions, estimates or actual results.
Goodwill and Intangible Assets Goodwill and Intangible AssetsGoodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. Intangible assets, with the exception of certain contractual relationships, that are not considered to have an indefinite useful life are amortized on a straight-line basis over their estimated useful lives, which typically range from three 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 purchased intangible assets and whether events or changes in circumstances warrant a revision to the remaining amortization period.
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.
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. Costs related to preliminary project activities and post implementation activities are expensed as incurred. Capitalized software costs are amortized on a straight-line basis over their estimated useful life, which is generally two 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.
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.
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.
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.
Warranties and Indemnifications
Warranties and Indemnifications
From time to time, we enter into certain types of contracts that contingently require us to indemnify parties against third‑party claims. These contracts primarily relate to agreements under which we indemnify customers and partners for claims arising from intellectual property infringement. The terms of such obligations vary, and the overall maximum amount of the obligations cannot be reasonably estimated. Historically, we have not been obligated to make any payments for these obligations, and no liabilities have been recorded for these obligations as of December 31, 2021 and 2020.
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, 2021 and 2020.
Research and Development
Research and Development
Research and development costs, which consist primarily of software development costs, are expensed as incurred. FASB ASC Topic 985‑20, Costs of Software to Be Sold, Leased or Marketed, requires development costs incurred subsequent to establishment of technological feasibility related to software incorporated in our products to be capitalized and amortized over the estimated useful lives of the related products. 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 in the accompanying consolidated statements of operations.
Advertising Costs Advertising CostsAdvertising costs are expensed as incurred as a component of sales and marketing expense in the consolidated statements of operations.
Accounting Pronouncements Recently Adopted And Recent Accounting Pronouncements Not Yet Adopted
Accounting Pronouncements Recently Adopted
In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, and subsequent amendments, which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost, including trade receivables. This update replaces the existing incurred loss impairment model with an expected loss methodology, which will result in more timely recognition of credit losses. The new impairment methodology eliminates the probable initial recognition threshold and, instead, estimates the expected credit losses in consideration of past events, current conditions and forecasted information. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities.
We adopted this new standard effective January 1, 2021, using the modified-retrospective approach, which resulted in a cumulative-effect adjustment of $1.5 million to accumulated deficit. We updated the following accounting policies as a result of the adoption of this guidance.
Accounts Receivable
We record accounts receivable at the original invoiced amount, net of allowances for credit losses for any potential uncollectible amounts. We make estimates of expected credit losses for the allowance for doubtful accounts based upon our assessment of various factors, including historical experience, the age of the accounts receivable balances, credit quality of our customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect our ability to collect from customers. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. The estimated credit loss allowance is recorded as a general and administrative expense on our consolidated statement of operations. As of December 31, 2021, the allowance for credit losses was $5.4 million.
Marketable Securities
Our marketable securities consist of investments in 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. When the fair value of a security is below its amortized cost, the amortized cost will be reduced to its fair value if it is more likely than not that we are required to sell the impaired security before recovery of its amortized cost basis, or we have the intention to sell the security. If neither of these conditions is met, we determine whether the impairment is due to credit losses by comparing the present value of the expected cash flows of the security with its amortized cost basis. The amount of impairment recognized is limited to the excess of the amortized cost over the fair value of the security. An allowance for credit losses for the excess of amortized cost over the expected cash flows is recorded in interest income and other expense, net in our consolidated statements of operations. Impairment losses that are not credit-related are included in accumulated other comprehensive loss in stockholders’ equity.
In August 2020, the FASB issued ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. The new guidance simplifies the accounting for convertible instruments by eliminating the cash conversion and beneficial conversion feature models used to separately account for embedded conversion features as a component of equity. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. The new guidance also requires the if-converted method to be applied for all convertible instruments in the diluted earnings per share calculated and include the effect of potential share settlement for instruments that may be settled in cash or shares. The new guidance is effective for financial statements issued for fiscal years beginning after December 15, 2021 with early adoption permitted, but only at the beginning of the fiscal year. We early adopted ASU 2020-06 as of January 1, 2021 with no cumulative effect upon adoption. There was no impact to the number of potentially dilutive shares in each of the periods presented.
In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The new guidance creates an exception to the general recognition and measurement principle for contract assets and contract liabilities from contracts with customers acquired in a business combination. Under this exception, an acquirer applies Topic 606 to recognize and measure contract assets and contract liabilities on the acquisition date. Topic 805 generally requires the acquirer in a business combination to recognize and measure the assets it acquires and liabilities it assumes at fair value on the acquisition date. This generally will result in companies recognizing contract assets and contract liabilities at amounts consistent with those recorded by the acquiree immediately before the acquisition date. The ASU is effective for fiscal years beginning December 15, 2022. Early adoption is permitted for all entities, including adoption in an interim period. We early adopted this new standard effective January 1, 2021. The adoption resulted in immaterial changes in contract liabilities and total revenue recognized for the year ended December 31, 2021.
Recent Accounting Pronouncements Not Yet Adopted
There were no other significant updates to the recently issued accounting standards other than as disclosed herein. Although there are several other new accounting pronouncements issued or proposed by the FASB, we do not believe any of those accounting pronouncements have had or will have a material impact on its financial position or operating results.
v3.22.0.1
Revenue (Tables)
 12 Months Ended
Dec. 31, 2021
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue by Source
The following table presents our revenue disaggregated by source (in thousands):
Year Ended December 31,
202120202019
Create Solutions$326,636 $231,314 $168,626 
Operate Solutions709,140 471,161 293,317 
Strategic Partnerships and Other74,750 69,970 79,836 
Total revenue$1,110,526 $772,445 $541,779 
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):
Year Ended December 31,
202120202019
United States$266,825 $197,343 $151,383 
Greater China (1)(2)
169,330 111,037 64,784 
EMEA (1)(3)
414,902 279,344 184,064 
APAC (1)(4)
222,348 149,527 113,938 
Other Americas (1)(5)
37,121 35,194 27,610 
Total revenue$1,110,526 $772,445 $541,779 
(1)    No individual country, other than those disclosed above, exceeded 10% of our total revenue for any period presented.
(2)    Greater China includes China, Hong Kong, and Taiwan.
(3)    Europe, the Middle East, and Africa (“EMEA”)
(4)    Asia-Pacific, excluding Greater China (“APAC”)
(5)    Canada and Latin America (“Other Americas”)
v3.22.0.1
Cash Equivalents and Marketable Securities (Tables)
 12 Months Ended
Dec. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Schedule of Cash Equivalents and Marketable Securities
Restricted cash, cash equivalents, and marketable securities consisted of the following as of December 31, 2021 (in thousands):
Amortized CostUnrealized GainsUnrealized LossesFair Value
Restricted cash:
Restricted cash$10,823 $— $— $10,823 
    Total restricted cash$10,823 $— $— $10,823 
Cash equivalents:
Money market funds$73,138 $— $— $73,138 
Total cash equivalents$73,138 $— $— $73,138 
Marketable securities:
Commercial paper$59,792 $— $— $59,792 
Asset-backed securities40,965 — (23)40,942 
Corporate bonds237,735 20 (353)237,402 
U.S. treasury securities272,678 1 (379)272,300 
Supranational bonds71,121 1 (235)70,887 
Total marketable securities$682,291 $22 $(990)$681,323 
Cash equivalents and marketable securities consisted of the following as of December 31, 2020 (in thousands):
Amortized CostUnrealized GainsUnrealized LossesFair Value
Restricted cash:
Restricted cash$21,369 $— $— $21,369 
Total restricted cash$21,369 $— $— $21,369 
Cash equivalents:
Money market funds$660,086 $— $— $660,086 
Commercial paper75,726 — — 75,726 
Total cash equivalents$735,812 $— $— $735,812 
Marketable securities:
Asset-backed securities49,950 54 (39)49,965 
Corporate bonds92,312 31 (21)92,322 
U.S. treasury securities327,025 81 (56)327,050 
Supranational bonds10,066 4 (1)10,069 
Total marketable securities$479,353 $170 $(117)$479,406 
Schedule of Cash Equivalents
Restricted cash, cash equivalents, and marketable securities consisted of the following as of December 31, 2021 (in thousands):
Amortized CostUnrealized GainsUnrealized LossesFair Value
Restricted cash:
Restricted cash$10,823 $— $— $10,823 
    Total restricted cash$10,823 $— $— $10,823 
Cash equivalents:
Money market funds$73,138 $— $— $73,138 
Total cash equivalents$73,138 $— $— $73,138 
Marketable securities:
Commercial paper$59,792 $— $— $59,792 
Asset-backed securities40,965 — (23)40,942 
Corporate bonds237,735 20 (353)237,402 
U.S. treasury securities272,678 1 (379)272,300 
Supranational bonds71,121 1 (235)70,887 
Total marketable securities$682,291 $22 $(990)$681,323 
Cash equivalents and marketable securities consisted of the following as of December 31, 2020 (in thousands):
Amortized CostUnrealized GainsUnrealized LossesFair Value
Restricted cash:
Restricted cash$21,369 $— $— $21,369 
Total restricted cash$21,369 $— $— $21,369 
Cash equivalents:
Money market funds$660,086 $— $— $660,086 
Commercial paper75,726 — — 75,726 
Total cash equivalents$735,812 $— $— $735,812 
Marketable securities:
Asset-backed securities49,950 54 (39)49,965 
Corporate bonds92,312 31 (21)92,322 
U.S. treasury securities327,025 81 (56)327,050 
Supranational bonds10,066 4 (1)10,069 
Total marketable securities$479,353 $170 $(117)$479,406 
Schedule of Maturities for Marketable Securities
The following table summarizes the amortized cost and fair value of our marketable securities as of December 31, 2021, by contractual years to maturity (in thousands):
Amortized CostFair Value
Due within one year$381,269 $381,133 
Due between one and three years301,022 300,190 
Total$682,291 $681,323 
v3.22.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Schedule of Fair Value of Assets Measured on Recurring Basis
The following table presents the fair value of our financial assets and liabilities measured at fair value on a recurring basis using the above input categories as of December 31, 2021 (in thousands):
Level 1Level 2Level 3Total
Restricted cash:
Restricted cash$10,823 $— $— $10,823 
Total restricted cash$10,823 $— $— $10,823 
Cash equivalents:
Money market funds$73,138 $— $— $73,138 
Total cash equivalents$73,138 $— $— $73,138 
Marketable securities:
Commercial paper$— $59,792 $— $59,792 
Asset-backed securities— 40,942 — 40,942 
Corporate bonds— 237,402 — 237,402 
U.S. treasury securities— 272,300 — 272,300 
Supranational bonds— 70,887 — 70,887 
Total marketable securities$— $681,323 $— $681,323 
The following table presents the fair value of our financial assets and liabilities measured at fair value on a recurring basis using the above input categories as of December 31, 2020 (in thousands):
Level 1Level 2Level 3Total
Restricted cash:
Restricted cash$21,369 $— $— 21,369 
Total restricted cash$21,369 $— $— $21,369 
Cash equivalents:
Money market funds$660,086 $— $— $660,086 
Commercial paper— 75,726 — 75,726 
Total cash equivalents$660,086 $75,726 $— $735,812 
Marketable securities:
Asset-backed securities$— $49,965 $— $49,965 
Corporate bonds— 92,322 — 92,322 
U.S. treasury securities— 327,050 — 327,050 
Supranational bonds— 10,069 — 10,069 
Total marketable securities$— $479,406 $— $479,406 
v3.22.0.1
Acquisitions (Tables)
 12 Months Ended
Dec. 31, 2021
Business Combination and Asset Acquisition [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed
The following table summarizes the consideration paid for Weta Digital and the estimated fair values of the assets acquired at the acquisition date (in thousands):
Consideration:
Cash$1,000,001 
Common stock issued526,081 
Fair value of total consideration transferred$1,526,082 
Recognized amounts of identifiable assets acquired and liabilities assumed:
Intangible assets$668,400 
Total identifiable net assets assumed668,400 
Goodwill (1)
857,682 
Total$1,526,082 
(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 because it was acquired in a taxable asset purchase it is deductible for U.S. income tax purposes over a period of 15 years.
The following table summarizes the consideration paid for Ziva Dynamics and the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):
Consideration:
Cash$127,653 
Fair value of total consideration transferred$127,653 
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash$2,288 
Accounts receivable, net297 
Other current assets642 
Property and equipment, net457 
Intangible assets23,200 
Other assets and liabilities, net74 
Accrued expenses and other current liabilities(547)
Deferred revenue(493)
Deferred tax liability(2,534)
Total identifiable net assets assumed23,384 
Goodwill (1)
104,269 
Total$127,653 
(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 it is not typically deductible for Canadian income tax purposes. However, we will make an election, for Canadian tax purposes, to step-up the tax basis of Ziva Dynamics' intangibles and a portion of goodwill, offsetting the current tax implications of the step-up by using Ziva Dynamics' tax attributes (e.g. NOL). The estimated amount of goodwill that will be amortizable after the step-up election is approximately $3 million.
The following table summarizes the consideration paid for Parsec and the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):
Consideration:
Cash$332,729 
Fair value of total consideration transferred$332,729 
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash$23,402 
Accounts receivable, net1,349 
Intangible assets43,200 
Other assets and liabilities, net(124)
Deferred revenue(3,121)
Deferred tax liability(4,570)
Total identifiable net assets assumed60,136 
Goodwill (1)
272,593 
Total$332,729 
(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 it is not deductible for U.S. income tax purposes.
The following table summarizes the consideration paid for Metaverse and the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):
Consideration:
Cash$45,721 
Fair value of total consideration transferred$45,721 
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash$1,093 
Intangible assets12,340 
Other assets and liabilities, net194 
Income and other taxes payable(1,470)
Other payable(345)
Deferred revenue(507)
Deferred tax liability(2,210)
Total identifiable net assets assumed9,095 
Goodwill (1)
36,626 
Total$45,721 
(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 it is not deductible for French income tax purposes.
The following table summarizes the consideration paid for Finger Food and the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):
Consideration:
Cash$23,626 
Common stock issued23,126 
Fair value of total consideration transferred$46,752 
Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash$288 
Accounts receivable, net5,758 
Property and equipment, net1,307 
Operating lease ROU assets4,972 
Deferred tax assets1,327 
Customer relationships2,900 
Trademark200 
Income and other taxes payable(8,109)
Operating lease liabilities(4,972)
Other assets and liabilities, net(293)
Deferred tax liability(1,436)
Total identifiable net assets assumed1,942 
Goodwill44,810 
Total$46,752 
Summary of Unaudited Pro Forma Financial Information Consequently, actual results will differ from the unaudited pro forma financial information presented below (in thousands):
Year Ended December 31,
20212020
Unaudited pro forma financial information
Pro forma revenue$1,110,526 $772,445 
Pro forma net loss$(640,134)$(408,291)
v3.22.0.1
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2021
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, 2021 and 2020 (in thousands):
Balance as of December 31, 2019$218,305 
Goodwill acquired68,011 
Measurement period adjustment(65)
Balance as of December 31, 2020286,251 
Goodwill acquired1,334,074 
Measurement period adjustment(198)
Balance as of December 31, 2021$1,620,127 
Schedule of Intangible Assets
The following tables present details of our intangible assets, excluding goodwill (in thousands, except for weighted-average useful life):
As of December 31, 2021
Weighted-Average
Useful Life (1)
(In Years)
Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Developed technology8.8$580,204 $(52,811)$527,393 
Customer relationships2.950,171 (16,980)33,191 
Trademark5.760,557 (3,937)56,620 
Contractual relationship8.0200,000 (2,818)197,182 
Total intangible assets$890,932 $(76,546)$814,386 
As of December 31, 2020
Weighted-Average
Useful Life (1)
(In Years)
Gross
Carrying
Amount		Accumulated
Amortization		Net
Carrying
Amount
Developed technology5.8$83,688 $(32,342)$51,346 
Customer relationships2.213,327 (8,682)4,645 
Trademark3.33,507 (2,039)1,468 
Total intangible assets$100,522 $(43,063)$57,459 
(1)    Based on weighted-average useful life established as of the acquisition date.
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):
Year Ended December 31,
202120202019
Amortization expense$33,483 $17,755 $11,570 
Schedule of Finite-Lived Intangible Assets Future Amortization Expense
As of December 31, 2021, the estimated future amortization of finite-lived intangible assets for each of the next five years and thereafter was as follows (in thousands):
2022$130,074 
2023124,813 
2024120,314 
2025108,355 
202676,918 
Thereafter253,912 
Total$814,386 
v3.22.0.1
Balance Sheet Components (Tables)
 12 Months Ended
Dec. 31, 2021
Property, Plant and Equipment [Abstract]  
Schedule of Property and Equipment
The following tables provide details of selected balance sheet items (in thousands):
As of
December 31,
2021		December 31,
2020
Property and equipment, net:
Gross property and equipment
Leasehold improvements$84,006 $65,669 
Computer and other hardware74,953 58,568 
Furniture27,916 23,685 
Internally developed software3,508 3,301 
Purchased software1,449 1,436 
Construction in progress12,075 13,343 
Total gross property and equipment203,907 166,002 
Accumulated depreciation and amortization (1)
(97,801)(70,458)
Property and equipment, net$106,106 $95,544 
(1)    The following table presents the depreciation and amortization of property and equipment included on our consolidated statements of operations (in thousands):
Year Ended December 31,
202120202019
Depreciation and amortization expense$31,084 $25,219 $19,543 
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):
As of
December 31,
2021		December 31,
2020
United States$36,718 $35,494 
Canada31,498 20,063 
United Kingdom15,011 17,846 
Greater China4,300 5,653 
EMEA, excluding United Kingdom (1)
12,587 11,181 
APAC (1)
3,052 3,546 
Other Americas, excluding Canada (1)
945 809 
Total long-lived assets, net$104,111 $94,592 
(1)    No individual country, other than those disclosed above, exceeded 10% of our total long-lived assets, net, for any period presented.
Schedule of Accrued Expenses and Current Liabilities
As of
December 31,
2021		December 31,
2020
Accrued expenses and other current liabilities:
Accrued expenses$60,937 $53,535 
Accrued compensation83,936 52,771 
Accrued expenses and other current liabilities$144,873 $106,306 
v3.22.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Schedule of Lease Cost
Components of lease expense were as follows (in thousands):
Year Ended
December 31, 2021December 31,
2020
Operating lease expense, excluding ROU asset impairment$29,153 $29,265 
Short-term lease expense728 953 
Variable lease expense5,048 5,013 
Sublease income(325)(130)
Total lease expense$34,604 $35,101 
Other information related to operating leases was as follows (in thousands):
Year Ended
December 31, 2021December 31, 2020
Cash paid for amounts included in the measurement of operating lease liabilities$29,811 $29,336 
Operating lease ROU assets obtained in exchange for new operating lease liabilities$18,507 $24,647 
Schedule of Future Minimum Lease Payments
As of December 31, 2021, future minimum lease payments under our non-cancellable operating leases were as follows (in thousands):
Operating Leases (1)
2022$28,193 
202324,968 
202421,409 
202516,242 
202610,174 
Thereafter31,547 
Total future minimum lease payments132,533 
Less: imputed interest(16,265)
Present value of lease liabilities$116,268 
(1)    Excludes future minimum payments for leases which have not yet commenced as of December 31, 2021.
v3.22.0.1
Borrowings (Tables)
 12 Months Ended
Dec. 31, 2021
Debt Disclosure [Abstract]  
Summary of Convertible Note
As of
December 31, 2021
Convertible note:
Principal$1,725,000 
Unamortized debt issuance cost(21,965)
Net carrying amount$1,703,035 
v3.22.0.1
Commitment and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Maturities of Future Purchase Obligations
The following table summarizes our non-cancelable contractual commitments as of December 31, 2021 (in thousands):
Total20222023-20242025-2026Thereafter
Purchase commitments (1)
$692,215 $116,865 $279,744 $295,606 $— 
(1)    The substantial majority of our purchase commitments are related to agreements with our data center hosting providers.
v3.22.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2021
Share-based Payment Arrangement [Abstract]  
Schedule of Stock-Based Compensation Expense
We recorded stock-based compensation expense related to grants to employees, including those in connection with modified awards, on our consolidated statements of operations as follows (in thousands):
Year Ended December 31,
202120202019
Cost of revenue$24,811 $10,626 $3,198 
Research and development165,604 66,038 13,521 
Sales and marketing70,663 23,769 6,124 
General and administrative86,081 34,196 21,637 
Total stock-based compensation expense$347,159 $134,629 $44,480 
Schedule of Stock Options
A summary of our stock option activity under the 2009 Stock Plan, 2019 Stock Plan, and 2020 Plan is as follows:
Options Outstanding
Stock
Options
Outstanding		Weighted-Average
Exercise
Price		Weighted-Average
Remaining
Contractual
Term
(In Years)
Balance as of December 31, 201942,728,180 $5.77 7.35
Granted5,348,737 $21.03 
Exercised(6,758,226)$3.76 
Forfeited, cancelled, or expired(860,816)$10.35 
Balance as of December 31, 202040,457,875 $8.03 6.87
Granted1,325,352 $107.10 
Exercised(11,650,963)$5.72 
Forfeited, cancelled, or expired(906,223)$13.23 
Balance as of December 31, 202129,226,041 $13.28 6.26
Exercisable as of December 31, 202120,056,867 $6.15 5.46
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:
Year Ended
December 31, 2021December 31, 2020December 31, 2019
Expected dividend yield———
Risk-free interest rate
0.9% - 1.3%
0.4% - 0.6%
1.6% - 2.5%
Expected volatility
32.9% - 36.2%
33.8% - 36.3%
34.0% - 34.7%
Expected term (in years)6.256.006.25
Fair value of underlying common stock
$100.60 - $152.34
$22.00 - $152.00
$12.66 - $22.09
Summary of Restricted Stock Unit Activity
A summary of our RSU activity under the 2019 Stock Plan and 2020 Plan is as follows:
Unvested Restricted Stock Units
Number of
Shares		Weighted-Average
Grant-Date
Fair Value
Unvested as of December 31, 20192,849,378 $22.06 
Granted7,706,961 $62.26 
Vested(804,312)$28.55 
Forfeited(190,236)$28.47 
Unvested as of December 31, 20209,561,791 $53.79 
Granted8,060,505 $112.11 
Vested(3,131,986)$58.23 
Forfeited(793,474)$73.36 
Unvested as of December 31, 202113,696,836 $85.96 
Summary of Valuation Assumptions of Employee Stock Purchase Plan The fair value of stock purchase rights granted under the 2020 ESPP was estimated using the following assumptions:
Year Ended
December 31, 2021
Expected dividend yield—
Risk-free interest rate0.1%
Expected volatility27.2%
Expected term (in years)0.50
Estimated fair value$28.64
v3.22.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2021
Income Tax Disclosure [Abstract]  
Schedule of Loss Before Provision for Income Taxes
Loss before provision for income taxes consisted of the following for the years ended December 31, 2021, 2020, and 2019 (in thousands):
Year Ended December 31,
202120202019
United States$(318,907)$(185,580)$(120,135)
Foreign(212,323)(94,637)(33,107)
Total$(531,230)$(280,217)$(153,242)
Schedule of Components of Income Tax Expense (Benefit)
The components of the provision for income taxes consists of the following for the years ended December 31, 2021, 2020, and 2019 (in thousands):
Year Ended December 31,
202120202019
Current:
U.S. federal$(111)$183 $331 
State219 155 108 
Foreign13,594 4,412 14,186 
Total current tax expense (benefit)13,702 4,750 14,625 
Deferred:
U.S. federal(4,874)— (6,746)
State(851)(156)(1,147)
Foreign(6,600)(2,503)3,216 
Total deferred tax expense (benefit)(12,325)(2,659)(4,677)
Total tax provision$1,377 $2,091 $9,948 
Schedule of Income Tax Provision Reconciliation
Reconciliations of the income tax provision at the U.S. federal statutory tax rate to the provision for income taxes are as follows (in thousands):
Year Ended December 31,
2021
2020 (1)
2019
U.S. federal statutory tax rate$(111,558)$(58,846)$(32,181)
Changes in income taxes resulting from:
State tax expense, net of federal benefit(36,984)(12,698)(4,865)
Foreign income taxed at different rates(30,114)(29,958)7,695 
Federal Research and development credits(31,088)(12,338)(5,756)
Stock-based compensation(91,623)(22,624)(5,305)
Change in valuation allowance301,330 139,219 49,477 
Other1,414 (664)883 
Total tax provision$1,377 $2,091 $9,948 
(1)    Certain prior year amounts have been reclassified to conform to current year presentation.
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, 2021 and 2020 are set forth below (in thousands):
As of December 31,
2021
2020 (1)
Deferred tax assets:
Net operating losses$332,622 $118,244 
Tax credits81,847 35,630 
Accruals and reserves9,261 8,537 
Deferred revenue5,683 4,960 
Stock-based compensation29,647 20,394 
Charitable contribution13,707 13,834 
Capitalized R&D expenditures94,686 56,596 
Depreciation and amortization— 4,300 
Operating lease liabilities24,137 22,477 
Other1,134 150 
Gross deferred tax assets592,724 285,122 
Valuation allowance(568,124)(265,781)
Total deferred tax assets24,600 19,341 
Deferred tax liabilities:
Depreciation and amortization(4,469)— 
Operating lease right-of-use assets(20,467)(19,341)
Other— (260)
Total deferred tax liabilities(24,936)(19,601)
Net deferred tax assets$(336)$(260)
(1)    Certain prior year amounts have been reclassified to conform to current year presentation.
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):
As of December 31,
2021
2020 (1)
2019 (1)
Unrecognized tax benefits, beginning balance$74,670 $37,392 $23,980 
Gross increases for tax positions taken in prior years1,729 1,689 1,565 
Gross decreases for tax positions taken in prior years(2,507)(694)(6,239)
Gross increases for tax positions taken in current year38,406 38,829 19,398 
Gross decreases for tax positions taken in current year— — — 
Reductions resulting from lapses of statues of limitations(1,700)(2,952)(1,258)
Foreign exchange gains and losses(283)406 (54)
Unrecognized tax benefits, ending balance$110,315 $74,670 $37,392 
(1)    Certain prior year amounts have been reclassified to conform to current year presentation.
v3.22.0.1
Net Loss per Share of Common Stock (Tables)
 12 Months Ended
Dec. 31, 2021
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Earnings Per Share
The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data):
Year Ended December 31,
202120202019
Basic and diluted net loss per share
Numerator:
Net loss$(532,607)$(282,308)$(163,190)
Add: Deemed dividends representing excess paid over initial issuance price to repurchase convertible preferred stock— — (110,241)
Net loss attributable to our common stockholders$(532,607)$(282,308)$(273,431)
Denominator:
Weighted-average common shares used in per share computation, basic and diluted282,195 169,973 114,442 
Net loss per share, basic and diluted$(1.89)$(1.66)$(2.39)
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share
The following table presents the forms of antidilutive potential common shares excluded from the computation of diluted net loss per share for the following periods (in thousands):
Year Ended December 31,
202120202019
Convertible preferred stock— — 95,899 
Convertible notes9,091 — — 
Stock options29,226 40,458 42,728 
Unvested RSUs13,697 10,366 2,849 
v3.22.0.1
Description of Business and Summary of Significant Accounting Policies - Revenue Recognition (Details)
 12 Months Ended
Dec. 31, 2021
source
Accounting Policies [Abstract]  
Number of revenue sources 3
Revenue, performance obligation, description of timing one to three years
v3.22.0.1
Description of Business and Summary of Significant Accounting Policies - Remaining Performance Obligations (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Class of Stock [Line Items]  
Revenue, remaining performance obligation, amount $ 581.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01  
Class of Stock [Line Items]  
Revenue, remaining performance obligation, amount $ 204.6
Recognition period 12 months
Revenue, remaining performance obligation, percentage 35.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01  
Class of Stock [Line Items]  
Revenue, remaining performance obligation, amount $ 376.8
Recognition period
Revenue, remaining performance obligation, percentage 65.00%
v3.22.0.1
Description of Business and Summary of Significant Accounting Policies - Stock-Based Compensation (Details)
 12 Months Ended
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Maximum contractual term 10 years
Stock options | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options vesting period 1 year
Stock options | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options vesting period 4 years
Unvested RSUs | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options vesting period 1 year
Unvested RSUs | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Options vesting period 4 years
v3.22.0.1
Description of Business and Summary of Significant Accounting Policies - Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($)
$ in Millions
Dec. 31, 2021
Dec. 31, 2020
Accounting Policies [Abstract]    
Restricted cash $ 10.8 $ 21.4
v3.22.0.1
Description of Business and Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Accounting Policies [Abstract]    
Accounts receivable, allowances $ 5,447 $ 2,714
v3.22.0.1
Description of Business and Summary of Significant Accounting Policies - Property and Equipment, Net (Details)
 12 Months Ended
Dec. 31, 2021
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
Purchased software | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
Purchased software | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life 5 years
v3.22.0.1
Description of Business and Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details)
 12 Months Ended
Dec. 31, 2021
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
v3.22.0.1
Description of Business and Summary of Significant Accounting Policies - Segments (Details)
 12 Months Ended
Dec. 31, 2021
segment
Accounting Policies [Abstract]  
Number of operating segments 1
v3.22.0.1
Description of Business and Summary of Significant Accounting Policies - Capitalized Software Costs and Software Implementation Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]    
Capitalized software costs $ 1.2 $ 0.8
Capitalized implementation costs $ 4.7 $ 7.0
Minimum | Internally developed software    
Property, Plant and Equipment [Line Items]    
Useful life 2 years  
Maximum | Internally developed software    
Property, Plant and Equipment [Line Items]    
Useful life 3 years  
v3.22.0.1
Description of Business and Summary of Significant Accounting Policies - Advertising Costs (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Accounting Policies [Abstract]      
Advertising expense $ 24.2 $ 12.3 $ 4.5
v3.22.0.1
Summary of Accounting Pronouncements (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Jan. 01, 2021
Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Accumulated deficit $ 1,331,627   $ 797,498
Accounts receivable, allowances $ 5,447   $ 2,714
Adjustment      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Accumulated deficit   $ 1,500  
v3.22.0.1
Revenue - Disaggregation of Revenue By Source (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Disaggregation of Revenue [Line Items]      
Revenue $ 1,110,526 $ 772,445 $ 541,779
Create Solutions      
Disaggregation of Revenue [Line Items]      
Revenue 326,636 231,314 168,626
Operate Solutions      
Disaggregation of Revenue [Line Items]      
Revenue 709,140 471,161 293,317
Strategic Partnerships and Other      
Disaggregation of Revenue [Line Items]      
Revenue $ 74,750 $ 69,970 $ 79,836
v3.22.0.1
Revenue - Disaggregation of Revenue by Geographic Area (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Disaggregation of Revenue [Line Items]      
Revenue $ 1,110,526 $ 772,445 $ 541,779
United States      
Disaggregation of Revenue [Line Items]      
Revenue 266,825 197,343 151,383
Greater China      
Disaggregation of Revenue [Line Items]      
Revenue 169,330 111,037 64,784
EMEA      
Disaggregation of Revenue [Line Items]      
Revenue 414,902 279,344 184,064
APAC      
Disaggregation of Revenue [Line Items]      
Revenue 222,348 149,527 113,938
Other Americas      
Disaggregation of Revenue [Line Items]      
Revenue $ 37,121 $ 35,194 $ 27,610
v3.22.0.1
Revenue - Contract Balances (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]    
Unbilled receivables $ 28.3 $ 26.3
Revenue recognized $ 108.6  
v3.22.0.1
Revenue - Remaining Performance Obligations (Details)
$ in Millions
Dec. 31, 2021
USD ($)
Disaggregation of Revenue [Line Items]  
Revenue, remaining performance obligation, amount $ 581.5
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01  
Disaggregation of Revenue [Line Items]  
Revenue, remaining performance obligation, amount $ 204.6
Revenue, remaining performance obligation, percentage 35.00%
Recognition period 12 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01  
Disaggregation of Revenue [Line Items]  
Revenue, remaining performance obligation, amount $ 376.8
Revenue, remaining performance obligation, percentage 65.00%
Recognition period
v3.22.0.1
Cash Equivalents and Marketable Securities - Schedule of Cash Equivalents and Marketable Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]    
Restricted cash $ 10,823 $ 21,369
Restricted cash, fair value 10,823 21,369
Cash equivalents, amortized cost 73,138 735,812
Cash equivalents 73,138 735,812
Amortized Cost 682,291 479,353
Unrealized Gains 22 170
Unrealized Losses (990) (117)
Marketable securities 681,323 479,406
Money market funds    
Debt Securities, Available-for-sale [Line Items]    
Cash equivalents, amortized cost 73,138 660,086
Cash equivalents 73,138 660,086
Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Cash equivalents, amortized cost   75,726
Cash equivalents   75,726
Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 59,792  
Unrealized Gains 0  
Unrealized Losses 0  
Marketable securities 59,792  
Asset-backed securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 40,965 49,950
Unrealized Gains 0 54
Unrealized Losses (23) (39)
Marketable securities 40,942 49,965
Corporate bonds    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 237,735 92,312
Unrealized Gains 20 31
Unrealized Losses (353) (21)
Marketable securities 237,402 92,322
U.S. treasury securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 272,678 327,025
Unrealized Gains 1 81
Unrealized Losses (379) (56)
Marketable securities 272,300 327,050
Supranational bonds    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 71,121 10,066
Unrealized Gains 1 4
Unrealized Losses (235) (1)
Marketable securities $ 70,887 $ 10,069
v3.22.0.1
Cash Equivalents and Marketable Securities - Maturity of Marketable Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Amortized Cost    
Due within one year $ 381,269  
Due between one and three years 301,022  
Amortized Cost 682,291 $ 479,353
Fair Value    
Due within one year 381,133  
Due between one and three years 300,190  
Fair Value $ 681,323 $ 479,406
v3.22.0.1
Fair Value Measurements (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Restricted cash, fair value $ 10,823 $ 21,369
Cash equivalents, fair value 73,138 735,812
Marketable securities 681,323 479,406
Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Restricted cash, fair value 10,823 21,369
Cash equivalents, fair value 73,138 735,812
Marketable securities 681,323 479,406
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 59,792  
Commercial paper | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 59,792  
Asset-backed securities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 40,942 49,965
Asset-backed securities | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 40,942 49,965
Corporate bonds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 237,402 92,322
U.S. treasury securities | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 272,300 327,050
Supranational bonds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 70,887 10,069
Supranational bonds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 70,887 10,069
Money market funds    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents, fair value 73,138 660,086
Money market funds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents, fair value 73,138 660,086
Commercial paper    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents, fair value   75,726
Commercial paper | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents, fair value   75,726
Level 1 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Restricted cash, fair value 10,823 21,369
Cash equivalents, fair value 73,138 660,086
Marketable securities 0 0
Level 1 | Commercial paper | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0  
Level 1 | Asset-backed securities | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 1 | Corporate bonds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 1 | U.S. treasury securities | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 1 | Supranational bonds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 1 | Money market funds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents, fair value 73,138 660,086
Level 1 | Commercial paper | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents, fair value   0
Level 2 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Restricted cash, fair value 0 0
Cash equivalents, fair value 0 75,726
Marketable securities 681,323 479,406
Level 2 | Commercial paper | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 59,792  
Level 2 | Asset-backed securities | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 40,942 49,965
Level 2 | Corporate bonds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 237,402 92,322
Level 2 | U.S. treasury securities | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 272,300 327,050
Level 2 | Supranational bonds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 70,887 10,069
Level 2 | Money market funds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents, fair value 0 0
Level 2 | Commercial paper | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents, fair value   75,726
Level 3 | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Restricted cash, fair value 0 0
Cash equivalents, fair value 0 0
Marketable securities 0 0
Level 3 | Commercial paper | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0  
Level 3 | Asset-backed securities | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 3 | Corporate bonds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 3 | U.S. treasury securities | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 3 | Supranational bonds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Marketable securities 0 0
Level 3 | Money market funds | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents, fair value $ 0 0
Level 3 | Commercial paper | Fair Value, Recurring    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cash equivalents, fair value   $ 0
v3.22.0.1
Acquisitions - 2021 Acquisitions (Details) - USD ($)
$ in Thousands
 1 Months Ended 9 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Sep. 30, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Business Acquisition [Line Items]              
Fair value of common stock issued as consideration for business acquisitions         $ 526,081 $ 25,144 $ 34,807
Weta Digital              
Business Acquisition [Line Items]              
Consideration transferred $ 1,526,082            
Cash consideration transferred $ 1,000,001            
Shares issued as consideration (in shares) 3,468,362            
Fair value of common stock issued as consideration for business acquisitions $ 526,081            
Transaction costs         5,900    
Ziva Dynamics              
Business Acquisition [Line Items]              
Consideration transferred 127,653            
Cash consideration transferred $ 127,653            
Transaction costs         1,300    
Parsec              
Business Acquisition [Line Items]              
Consideration transferred   $ 332,729          
Cash consideration transferred   $ 332,729          
Transaction costs         $ 1,300    
Metaverse              
Business Acquisition [Line Items]              
Consideration transferred     $ 45,721        
Cash consideration transferred     $ 45,721        
Transaction costs       $ 800      
v3.22.0.1
Acquisitions - Summary of Acquisitions (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Dec. 31, 2021
Sep. 30, 2021
Jun. 30, 2021
Apr. 30, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Business Acquisition [Line Items]              
Common stock issued         $ 526,081 $ 25,144 $ 34,807
Recognized amounts of identifiable assets acquired and liabilities assumed:              
Goodwill $ 1,620,127       1,620,127 $ 286,251 $ 218,305
Weta Digital              
Business Acquisition [Line Items]              
Cash consideration transferred 1,000,001            
Common stock issued 526,081            
Consideration transferred 1,526,082            
Recognized amounts of identifiable assets acquired and liabilities assumed:              
Intangible assets 668,400       668,400    
Total identifiable net assets assumed 668,400       668,400    
Goodwill 857,682       857,682    
Total $ 1,526,082       1,526,082    
Tax deductible period 15 years            
Ziva Dynamics              
Business Acquisition [Line Items]              
Cash consideration transferred $ 127,653            
Consideration transferred 127,653            
Recognized amounts of identifiable assets acquired and liabilities assumed:              
Cash 2,288       2,288    
Accounts receivable, net 297       297    
Other current assets 642       642    
Property and equipment, net 457       457    
Intangible assets 23,200       23,200    
Other assets and liabilities, net 74       74    
Accrued expenses and other current liabilities (547)       (547)    
Deferred revenue (493)       (493)    
Deferred tax liability (2,534)       (2,534)    
Total identifiable net assets assumed 23,384       23,384    
Goodwill 104,269       104,269    
Total 127,653       127,653    
Amortizable goodwill amount $ 3,000       $ 3,000    
Parsec              
Business Acquisition [Line Items]              
Cash consideration transferred   $ 332,729          
Consideration transferred   332,729          
Recognized amounts of identifiable assets acquired and liabilities assumed:              
Cash   23,402          
Accounts receivable, net   1,349          
Intangible assets   43,200          
Other assets and liabilities, net   124          
Deferred revenue   (3,121)          
Deferred tax liability   (4,570)          
Total identifiable net assets assumed   60,136          
Goodwill   272,593          
Total   $ 332,729          
Metaverse              
Business Acquisition [Line Items]              
Cash consideration transferred     $ 45,721        
Consideration transferred     45,721        
Recognized amounts of identifiable assets acquired and liabilities assumed:              
Cash     1,093        
Intangible assets     12,340        
Income and other taxes payable     (1,470)        
Other assets and liabilities, net     194        
Other payable     (345)        
Deferred revenue     (507)        
Deferred tax liability     (2,210)        
Total identifiable net assets assumed     9,095        
Goodwill     36,626        
Total     $ 45,721        
Finger Food              
Business Acquisition [Line Items]              
Cash consideration transferred       $ 23,626      
Common stock issued       23,126      
Consideration transferred       46,752      
Recognized amounts of identifiable assets acquired and liabilities assumed:              
Cash       288      
Accounts receivable, net       5,758      
Property and equipment, net       1,307      
Operating lease ROU assets       4,972      
Deferred tax assets       1,327      
Income and other taxes payable       (8,109)      
Operating lease liabilities       (4,972)      
Other assets and liabilities, net       (293)      
Deferred tax liability       (1,436)      
Total identifiable net assets assumed       1,942      
Goodwill       44,810      
Total       46,752      
Finger Food | Customer relationships              
Recognized amounts of identifiable assets acquired and liabilities assumed:              
Intangible assets       2,900      
Finger Food | Trademark              
Recognized amounts of identifiable assets acquired and liabilities assumed:              
Intangible assets       $ 200      
v3.22.0.1
Acquisitions - Other 2021 Acquisitions (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Nov. 30, 2021
Mar. 31, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Business Acquisition [Line Items]          
Goodwill     $ 1,620,127 $ 286,251 $ 218,305
Visual Live          
Business Acquisition [Line Items]          
Consideration transferred   $ 24,800      
Intangible assets other than goodwill   5,100      
Other assets   600      
Goodwill   19,800      
Other liabilities assumed   $ 600      
SyncSketch          
Business Acquisition [Line Items]          
Consideration transferred $ 30,400        
Intangible assets other than goodwill 7,800        
Other assets 800        
Goodwill 23,200        
Other liabilities assumed $ 1,400        
Other Acquisitions          
Business Acquisition [Line Items]          
Consideration transferred     47,100 31,600 8,200
Intangible assets other than goodwill     30,200 9,100 3,500
Other assets       2,600 400
Goodwill     20,100 23,300 4,500
Other liabilities assumed     4,200 3,800 700
Cash     1,000 400 400
Transaction costs     $ 3,800 $ 4,100 $ 3,600
v3.22.0.1
Acquisitions - Pro Forma Information (Details) - Weta Digital - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Unaudited pro forma financial information    
Pro forma revenue $ 1,110,526 $ 772,445
Pro forma net loss $ (640,134) $ (408,291)
v3.22.0.1
Acquisitions - 2020 Acquisitions (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Apr. 30, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Business Acquisition [Line Items]        
Common stock issued   $ 526,081 $ 25,144 $ 34,807
Goodwill   1,620,127 286,251 218,305
Finger Food        
Business Acquisition [Line Items]        
Percentage of voting interests acquired 100.00%      
Consideration transferred $ 46,752      
Cash consideration transferred $ 23,626      
Shares issued as consideration (in shares) 1,030,711      
Common stock issued $ 23,126      
Goodwill 44,810      
Cash $ 288      
Finger Food | Customer relationships        
Business Acquisition [Line Items]        
Acquired intangible assets useful life 2 years      
Finger Food | Trademark        
Business Acquisition [Line Items]        
Acquired intangible assets useful life 6 months      
Other Acquisitions        
Business Acquisition [Line Items]        
Consideration transferred   47,100 31,600 8,200
Cash consideration transferred     $ 29,600  
Shares issued as consideration (in shares)     72,479  
Common stock issued     $ 2,000  
Goodwill   20,100 23,300 4,500
Cash   1,000 400 400
Intangible assets other than goodwill   30,200 9,100 3,500
Other assets     2,600 400
Other liabilities assumed   4,200 3,800 700
Transaction costs   $ 3,800 $ 4,100 $ 3,600
v3.22.0.1
Acquisitions - 2019 Acquisitions (Details) - USD ($)
$ in Thousands
 1 Months Ended 12 Months Ended
Dec. 31, 2019
Sep. 30, 2019
Jan. 31, 2019
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Business Acquisition [Line Items]            
Fair value of common stock issued as consideration for business acquisitions       $ 526,081 $ 25,144 $ 34,807
Goodwill $ 218,305     1,620,127 286,251 $ 218,305
Vivox            
Business Acquisition [Line Items]            
Percentage of voting interests acquired     100.00%      
Consideration transferred     $ 123,400      
Cash consideration transferred     $ 119,000      
Shares issued as consideration (in shares)     348,739      
Fair value of common stock issued as consideration for business acquisitions     $ 4,400      
Goodwill     $ 94,200      
Vivox | Developed technology            
Business Acquisition [Line Items]            
Acquired intangible assets useful life     6 years      
Vivox | Customer relationships            
Business Acquisition [Line Items]            
Acquired intangible assets useful life     2 years      
Vivox | Trademark            
Business Acquisition [Line Items]            
Acquired intangible assets useful life     4 years      
deltaDNA            
Business Acquisition [Line Items]            
Percentage of voting interests acquired   100.00%        
Consideration transferred   $ 53,100        
Cash consideration transferred   $ 32,800        
Shares issued as consideration (in shares)   928,123        
Fair value of common stock issued as consideration for business acquisitions   $ 20,300        
Goodwill   $ 35,200        
deltaDNA | Developed technology            
Business Acquisition [Line Items]            
Acquired intangible assets useful life   6 years        
deltaDNA | Customer relationships            
Business Acquisition [Line Items]            
Acquired intangible assets useful life   2 years        
deltaDNA | Trademark            
Business Acquisition [Line Items]            
Acquired intangible assets useful life   3 years        
Artomatix            
Business Acquisition [Line Items]            
Percentage of voting interests acquired 100.00%         100.00%
Consideration transferred $ 48,800          
Cash consideration transferred $ 38,700          
Shares issued as consideration (in shares) 457,875          
Fair value of common stock issued as consideration for business acquisitions $ 10,100          
Goodwill $ 39,000         $ 39,000
Artomatix | Developed technology            
Business Acquisition [Line Items]            
Acquired intangible assets useful life 6 years          
Other Acquisitions            
Business Acquisition [Line Items]            
Consideration transferred       47,100 31,600 8,200
Cash consideration transferred         $ 29,600  
Shares issued as consideration (in shares)         72,479  
Fair value of common stock issued as consideration for business acquisitions         $ 2,000  
Goodwill $ 4,500     20,100 23,300 4,500
Cash 400     1,000 400 400
Intangible assets other than goodwill 3,500     30,200 9,100 3,500
Other assets 400       2,600 400
Other liabilities assumed $ 700     4,200 3,800 700
Transaction costs       $ 3,800 $ 4,100 $ 3,600
v3.22.0.1
Goodwill and Intangible Assets - Changes in Goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Goodwill [Roll Forward]    
Beginning balance $ 286,251 $ 218,305
Goodwill acquired 1,334,074 68,011
Measurement period adjustment (198) (65)
Ending balance $ 1,620,127 $ 286,251
v3.22.0.1
Goodwill and Intangible Assets - Schedule of Weighted Average Remaining Life and Carrying Value of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Amount $ 890,932 $ 100,522
Accumulated Amortization (76,546) (43,063)
Intangible assets, net $ 814,386 $ 57,459
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Useful Life (in years) 8 years 9 months 18 days 5 years 9 months 18 days
Gross Carrying Amount $ 580,204 $ 83,688
Accumulated Amortization (52,811) (32,342)
Intangible assets, net $ 527,393 $ 51,346
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Useful Life (in years) 2 years 10 months 24 days 2 years 2 months 12 days
Gross Carrying Amount $ 50,171 $ 13,327
Accumulated Amortization (16,980) (8,682)
Intangible assets, net $ 33,191 $ 4,645
Trademark    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Useful Life (in years) 5 years 8 months 12 days 3 years 3 months 18 days
Gross Carrying Amount $ 60,557 $ 3,507
Accumulated Amortization (3,937) (2,039)
Intangible assets, net $ 56,620 $ 1,468
Contractual relationship    
Finite-Lived Intangible Assets [Line Items]    
Weighted-Average Useful Life (in years) 8 years  
Gross Carrying Amount $ 200,000  
Accumulated Amortization (2,818)  
Intangible assets, net $ 197,182  
v3.22.0.1
Goodwill and Intangible Assets - Amortization of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]      
Amortization expense $ 33,483 $ 17,755 $ 11,570
v3.22.0.1
Goodwill and Intangible Assets - Expected Amortization of Finite-Lived Intangible Assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]    
2022 $ 130,074  
2023 124,813  
2024 120,314  
2025 108,355  
2026 76,918  
Thereafter 253,912  
Intangible assets, net $ 814,386 $ 57,459
v3.22.0.1
Balance Sheet Components - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Property, Plant and Equipment [Line Items]      
Total gross property and equipment $ 203,907 $ 166,002  
Accumulated depreciation and amortization (97,801) (70,458)  
Property and equipment, net 106,106 95,544  
Depreciation and amortization 31,084 25,219 $ 19,543
Leasehold improvements      
Property, Plant and Equipment [Line Items]      
Total gross property and equipment 84,006 65,669  
Computer and other hardware      
Property, Plant and Equipment [Line Items]      
Total gross property and equipment 74,953 58,568  
Furniture      
Property, Plant and Equipment [Line Items]      
Total gross property and equipment 27,916 23,685  
Internally developed software      
Property, Plant and Equipment [Line Items]      
Total gross property and equipment 3,508 3,301  
Purchased software      
Property, Plant and Equipment [Line Items]      
Total gross property and equipment 1,449 1,436  
Construction in progress      
Property, Plant and Equipment [Line Items]      
Total gross property and equipment $ 12,075 $ 13,343  
v3.22.0.1
Balance Sheet Components - Schedule of Long Lived Assets by Geographic Region (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]    
Total long-lived assets, net $ 104,111 $ 94,592
United States    
Property, Plant and Equipment [Line Items]    
Total long-lived assets, net 36,718 35,494
Canada    
Property, Plant and Equipment [Line Items]    
Total long-lived assets, net 31,498 20,063
United Kingdom    
Property, Plant and Equipment [Line Items]    
Total long-lived assets, net 15,011 17,846
Greater China    
Property, Plant and Equipment [Line Items]    
Total long-lived assets, net 4,300 5,653
EMEA, excluding United Kingdom    
Property, Plant and Equipment [Line Items]    
Total long-lived assets, net 12,587 11,181
APAC    
Property, Plant and Equipment [Line Items]    
Total long-lived assets, net 3,052 3,546
Other Americas, excluding Canada    
Property, Plant and Equipment [Line Items]    
Total long-lived assets, net $ 945 $ 809
v3.22.0.1
Balance Sheet Components - Schedule of Accrued Expenses and Current Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Abstract]    
Accrued expenses $ 60,937 $ 53,535
Accrued compensation 83,936 52,771
Accrued expenses and other current liabilities $ 144,873 $ 106,306
v3.22.0.1
Balance Sheet Components - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Property, Plant and Equipment [Line Items]    
Capitalized contract cost in period $ 14,800,000 $ 8,800,000
Amortization period 3 years  
Capitalized contract cost, amortization $ 5,600,000 1,500,000
Capitalized contract cost, impairment loss 0 0
Other Current Assets    
Property, Plant and Equipment [Line Items]    
Capitalized contract costs 7,900,000 2,900,000
Other Assets    
Property, Plant and Equipment [Line Items]    
Capitalized contract costs $ 8,700,000 $ 4,400,000
v3.22.0.1
Leases - Narrative (Details)
$ in Millions
 1 Months Ended 12 Months Ended
Jun. 30, 2021
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
Aug. 31, 2018
ft²
Lessee, Lease, Description [Line Items]        
Operating lease, weighted average remaining lease term   5 years 10 months 24 days 6 years  
Operating lease, weighted average discount rate, percent   4.30% 4.50%  
Lessee, operating lease, lease not yet commenced, undiscounted amount   $ 8.8    
San Francisco, California        
Lessee, Lease, Description [Line Items]        
Lessee, operating lease, area of real estate | ft²       150,000
Exit costs $ 43.5      
Minimum        
Lessee, Lease, Description [Line Items]        
Operating lease term   1 year    
Operating lease renewal term   1 year    
Operating lease termination period   1 year    
Lessee, operating lease, lease not yet commenced, term   2 years 1 month 6 days    
Maximum        
Lessee, Lease, Description [Line Items]        
Operating lease term   10 years    
Operating lease renewal term   5 years    
Operating lease termination period   5 years    
Lessee, operating lease, lease not yet commenced, term   5 years 4 months 24 days    
v3.22.0.1
Leases - Schedule of Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
Operating lease expense, excluding ROU asset impairment $ 29,153 $ 29,265
Short-term lease expense 728 953
Variable lease expense 5,048 5,013
Sublease income (325) (130)
Total lease expense $ 34,604 $ 35,101
v3.22.0.1
Leases - Other Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Leases [Abstract]    
Cash paid for amounts included in the measurement of operating lease liabilities $ 29,811 $ 29,336
Operating lease ROU assets obtained in exchange for new operating lease liabilities $ 18,507 $ 24,647
v3.22.0.1
Leases - Schedule of Future Minimum Lease Payments (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Leases [Abstract]  
2022 $ 28,193
2023 24,968
2024 21,409
2025 16,242
2026 10,174
Thereafter 31,547
Total future minimum lease payments 132,533
Less: imputed interest (16,265)
Present value of lease liabilities $ 116,268
v3.22.0.1
Borrowings - Credit Agreement (Details) - USD ($)
 1 Months Ended 12 Months Ended
Sep. 30, 2020
Mar. 31, 2020
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 20, 2019
Debt Instrument [Line Items]            
Proceeds from revolving loan facility     $ 0 $ 125,000,000 $ 0  
Repayments of lines of credit     0 125,000,000 $ 0  
Minimum liquidity balance     75,000,000      
Credit Agreement            
Debt Instrument [Line Items]            
Debt related commitment fees     1,100,000 1,100,000    
Amortization of debt issuance costs     $ 1,500,000 $ 1,500,000    
Ownership in capital stock of restricted subsidiaries     65.00%      
Credit Agreement | Revolving Facility            
Debt Instrument [Line Items]            
Maximum borrowing capacity           $ 125,000,000
Commitment fee percentage     0.25%      
Proceeds from revolving loan facility   $ 125,000,000        
Repayments of lines of credit $ 125,000,000          
Credit Agreement | LC Capacity            
Debt Instrument [Line Items]            
Maximum borrowing capacity           $ 20,000,000
Unused capacity commitment fee     1.50%      
Unused capacity fronting fee     0.125%      
Credit Agreement | Base Rate | Revolving Facility            
Debt Instrument [Line Items]            
Debt basis spread     0.50%      
Interest rate floor     1.00%      
Credit Agreement | LIBOR | Revolving Facility            
Debt Instrument [Line Items]            
Debt basis spread     1.50%      
Credit Agreement | Federal Funds Rate | Revolving Facility            
Debt Instrument [Line Items]            
Debt basis spread     0.50%      
Credit Agreement | Eurodollar | Revolving Facility            
Debt Instrument [Line Items]            
Debt basis spread     1.00%      
v3.22.0.1
Borrowings - Convertible Notes (Details)
$ / shares in Units, $ in Millions
 1 Months Ended 12 Months Ended
Nov. 30, 2021
USD ($)
d
$ / shares
Dec. 31, 2021
USD ($)
Debt Instrument [Line Items]    
Interest expense related to amortization of debt | $   $ 0.5
Convertible Debt | 0% Convertible Senior Notes Due 2026    
Debt Instrument [Line Items]    
Debt face amount | $ $ 1,700.0  
Debt interest rate 0.00%  
Additional principal amount | $ $ 225.0  
Proceeds from issuance of notes | $ $ 1,700.0  
Reporting requirement period 365 days  
Special interest requirement 6 months  
Special interest period after issuance 6 months  
Conversion ratio 3.2392  
Conversion price (in usd per share) | $ / shares $ 308.72  
Convertible Debt | 0% Convertible Senior Notes Due 2026 | On or after November 20, 2024    
Debt Instrument [Line Items]    
Conversion price threshold 130.00%  
Number of trading days 20  
Number of consecutive trading days 30  
Redemption price percentage 100.00%  
Minimum debt outstanding | $ $ 150.0  
Convertible Debt | 0% Convertible Senior Notes Due 2026 | Immediately preceding August 15, 2026, Circumstance A    
Debt Instrument [Line Items]    
Conversion price threshold 130.00%  
Number of trading days 20  
Number of consecutive trading days 30  
Convertible Debt | 0% Convertible Senior Notes Due 2026 | Immediately preceding August 15, 2026, Circumstance B    
Debt Instrument [Line Items]    
Number of consecutive trading days 10  
Redemption price percentage 98.00%  
Number of business days 5  
Convertible Debt | 0% Convertible Senior Notes Due 2026 | On or after August 15, 2026    
Debt Instrument [Line Items]    
Redemption price percentage 100.00%  
v3.22.0.1
Borrowings - Summary of Convertible Note (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
Net carrying amount $ 1,703,035 $ 0
0% Convertible Senior Notes Due 2026    
Debt Instrument [Line Items]    
Principal 1,725,000  
Unamortized debt issuance cost (21,965)  
Net carrying amount $ 1,703,035  
v3.22.0.1
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 (in usd per share) $ 308.72
Cap price (in usd per share) $ 343.02
v3.22.0.1
Commitment and Contingencies - Future Purchase Obligations (Details)
$ in Thousands
Dec. 31, 2021
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Total $ 692,215
2022 116,865
2023-2024 279,744
2025-2026 295,606
Thereafter $ 0
v3.22.0.1
Commitment and Contingencies - Narrative (Details) - USD ($)
$ in Millions
 1 Months Ended 12 Months Ended
Sep. 30, 2021
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Letter of Credit        
Long-term Purchase Commitment [Line Items]        
Letter of credit outstanding   $ 10.8 $ 21.4  
Cloud Service        
Long-term Purchase Commitment [Line Items]        
Term of commitment 5 years 5 years    
Minimum commitment amount   $ 700.0    
Commitment amount spent   117.7 $ 63.2 $ 32.7
Amended Cloud Service        
Long-term Purchase Commitment [Line Items]        
Commitment amount spent   $ 32.9    
v3.22.0.1
Stockholders' Equity and Employee Compensation Plans - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Other Postretirement Benefits Plan      
Class of Stock [Line Items]      
Defined contribution cost $ 9.1 $ 6.8 $ 5.9
Defined Contribution Pension Plan      
Class of Stock [Line Items]      
Defined contribution cost $ 18.3 $ 10.6 $ 7.1
Employer match of total salary 10.00%    
2020 Plan      
Class of Stock [Line Items]      
Grant date fair value of owners with more than 10% of voting power 110.00%    
Options issued (in shares) 77,100,000    
Number of shares available for grant (in shares) 34,200,000    
Stock options | 2020 Plan      
Class of Stock [Line Items]      
Option expiration period 10 years    
Stock Appreciation Rights (SARs) | 2020 Plan      
Class of Stock [Line Items]      
Option expiration period 10 years    
Incentive Stock Option | 2020 Plan      
Class of Stock [Line Items]      
Option expiration period 5 years    
Employee Stock      
Class of Stock [Line Items]      
Options issued (in shares) 8,000,000    
Permitted amount of earnings used to purchase ESPP 15.00%    
Purchase price percent 85.00%    
Employee Stock | 2020 Employee Stock Purchase Plan      
Class of Stock [Line Items]      
Maximum number of shares purchased by an employee in an offering period (in shares) 1,000    
Increase rate for shares reserved and available for issuance 1.00%    
v3.22.0.1
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 347,159 $ 134,629 $ 44,480
Cost of revenue      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 24,811 10,626 3,198
Research and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 165,604 66,038 13,521
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense 70,663 23,769 6,124
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Total stock-based compensation expense $ 86,081 $ 34,196 $ 21,637
v3.22.0.1
Stock-Based Compensation - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended 12 Months Ended
Mar. 31, 2021
USD ($)
Jun. 30, 2020
USD ($)
Mar. 31, 2021
USD ($)
Sep. 30, 2020
USD ($)
Dec. 31, 2021
USD ($)
$ / shares
shares
Dec. 31, 2020
USD ($)
$ / shares
shares
Dec. 31, 2019
USD ($)
$ / shares
shares
Dec. 31, 2017
shares
Dec. 31, 2016
USD ($)
Dec. 31, 2014
USD ($)
$ / shares
shares
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]                    
Unrecognized share-based compensation cost related to unvested stock option awards         $ 103,600          
Stock-based compensation expense         $ 347,159 $ 134,629 $ 44,480      
Granted (in shares) | shares         1,325,352 5,348,737        
Stock split, ratio               2    
Exercise price (USD per share) | $ / shares         $ 107.10 $ 21.03        
Related interest income   $ 900                
Intrinsic value of stock options exercised         $ 1,394,700 $ 441,000 $ 92,000      
Weighted average grant date fair value of stock options granted (USD per share) | $ / shares         $ 39.05 $ 10.66 $ 8.39      
Fair value of stock options vested in period         $ 48,900 $ 44,100 $ 27,800      
General and administrative                    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]                    
Stock-based compensation expense         86,081 34,196 21,637      
Chief Financial Officer                    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]                    
Payments for postemployment benefits $ 300                  
Stock-based compensation expense         $ 12,600          
Chief Financial Officer | General and administrative                    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]                    
Payments for postemployment benefits     $ 300              
Chief People Officer                    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]                    
Stock-based compensation expense             $ 13,500      
Chief Executive Officer                    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]                    
Note receivable from officer                 $ 8,000 $ 12,100
Note interest rate                 1.72% 1.72%
Note term                 5 years 7 years
Repayment of notes receivable from officer   $ 8,000             $ 4,200  
Issuance of common stock from exercise of stock options           8,856        
Stock options                    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]                    
Expected period for recognition         2 years 1 month 24 days          
Stock options | Minimum                    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]                    
Options vesting period         1 year          
Stock options | Maximum                    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]                    
Options vesting period         4 years          
Stock options | Chief Executive Officer                    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]                    
Granted (in shares) | shares                   4,250,000
Amount of shares granted after accounting for stock split | shares               8,500,000    
Exercise price (USD per share) | $ / shares                   $ 2.85
Options vesting period                   4 years
Issuance of common stock from exercise of stock options                 $ 4,200  
Unvested RSUs                    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]                    
Expected period for recognition         2 years 11 months 12 days          
Unrecognized share-based compensation cost related to unvested restricted stock units         $ 1,000,000          
Stock-based compensation expense       $ 47,800            
Fair value of vested instruments in period         $ 442,100 $ 85,900        
Vested (in shares) | shares         3,131,986 804,312 0      
Unvested RSUs | Minimum                    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]                    
Options vesting period         1 year          
Unvested RSUs | Minimum | Pre IPO                    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]                    
Options vesting period         1 year          
Unvested RSUs | Maximum                    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]                    
Options vesting period         4 years          
Unvested RSUs | Maximum | Pre IPO                    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]                    
Options vesting period         4 years          
Employee Stock | 2020 Employee Stock Purchase Plan                    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]                    
Expected period for recognition         2 months 1 day          
Unrecognized share-based compensation cost related to unvested restricted stock units         $ 1,700          
Employee Stock | Chief Executive Officer                    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]                    
Issuance of common stock from exercise of stock options           $ 8,900        
v3.22.0.1
Stock-Based Compensation - Schedule of Stock Options (Details) - $ / shares
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Stock Options Outstanding      
Balance as of December 31, 2020 (in shares) 40,457,875 42,728,180  
Granted (in shares) 1,325,352 5,348,737  
Exercised (in shares) (11,650,963) (6,758,226)  
Forfeited, cancelled, or expired (in shares) (906,223) (860,816)  
Balance as of December 31, 2021 (in shares) 29,226,041 40,457,875 42,728,180
Weighted-Average Exercise Price      
Balance as of December 31, 2020 (USD per share) $ 8.03 $ 5.77  
Granted (USD per share) 107.10 21.03  
Exercised (USD per share) 5.72 3.76  
Forfeited, cancelled, or expired (USD per share) 13.23 10.35  
Balance as of December 31, 2021 (USD per share) $ 13.28 $ 8.03 $ 5.77
Stock Option Activity, Additional Disclosures      
Options outstanding, Weighted average remaining contractual term 6 years 3 months 3 days 6 years 10 months 13 days 7 years 4 months 6 days
Options exercisable, Number of options (in shares) 20,056,867    
Options exercisable, Weighted average exercise price per share (USD per share) $ 6.15    
Options exercisable, Weighted average remaining contractual term 5 years 5 months 15 days    
v3.22.0.1
Stock-Based Compensation - Summary of Valuation Assumptions of Stock Options (Details) - Stock options - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Expected dividend yield $ 0 $ 0 $ 0
Expected term (in years) 6 years 3 months 6 years 6 years 3 months
Minimum      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Risk-free interest rate 0.90% 0.40% 1.60%
Expected volatility 32.90% 33.80% 34.00%
Fair value of underlying common stock (USD per share) $ 100.60 $ 22.00 $ 12.66
Maximum      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Risk-free interest rate 1.30% 0.60% 2.50%
Expected volatility 36.20% 36.30% 34.70%
Fair value of underlying common stock (USD per share) $ 152.34 $ 152.00 $ 22.09
v3.22.0.1
Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - Unvested RSUs - $ / shares
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Unvested Restricted Stock Units      
Unvested as of December 31, 2020 (in shares) 9,561,791 2,849,378  
Granted (in shares) 8,060,505 7,706,961  
Vested (in shares) (3,131,986) (804,312) 0
Forfeited (in shares) (793,474) (190,236)  
Unvested as of December 31, 2021 (in shares) 13,696,836 9,561,791 2,849,378
Weighted-Average Grant-Date Fair Value      
Unvested as of December 31, 2020 (USD per share) $ 53.79 $ 22.06  
Granted (USD per share) 112.11 62.26  
Vested (USD per share) 58.23 28.55  
Forfeited (USD per share) 73.36 28.47  
Unvested as of December 31, 2021 (USD per share) $ 85.96 $ 53.79 $ 22.06
v3.22.0.1
Stock-Based Compensation - Summary of ESPP Valuation Assumptions (Details) - Employee Stock
 12 Months Ended
Dec. 31, 2021
$ / shares
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]  
Expected dividend yield 0.00%
Risk-free interest rate 0.10%
Expected volatility 27.20%
Expected term (in years) 6 months
Estimated fair value (USD per share) $ 28.64
v3.22.0.1
Income Taxes - Loss Before Provision for Income Taxes (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
United States $ (318,907) $ (185,580) $ (120,135)
Foreign (212,323) (94,637) (33,107)
Loss before provision for income taxes $ (531,230) $ (280,217) $ (153,242)
v3.22.0.1
Income Taxes - Components of Income Tax Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Current:      
U.S. federal $ (111) $ 183 $ 331
State 219 155 108
Foreign 13,594 4,412 14,186
Total current tax expense (benefit) 13,702 4,750 14,625
Deferred:      
U.S. federal (4,874) 0 (6,746)
State (851) (156) (1,147)
Foreign (6,600) (2,503) 3,216
Total deferred tax expense (benefit) (12,325) (2,659) (4,677)
Total tax provision $ 1,377 $ 2,091 $ 9,948
v3.22.0.1
Income Taxes - Income Tax Provision Reconciliation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Income Tax Disclosure [Abstract]      
U.S. federal statutory tax rate $ (111,558) $ (58,846) $ (32,181)
Changes in income taxes resulting from:      
State tax expense, net of federal benefit (36,984) (12,698) (4,865)
Foreign income taxed at different rates (30,114) (29,958) 7,695
Federal Research and development credits (31,088) (12,338) (5,756)
Stock-based compensation (91,623) (22,624) (5,305)
Change in valuation allowance 301,330 139,219 49,477
Other 1,414 (664) 883
Total tax provision $ 1,377 $ 2,091 $ 9,948
v3.22.0.1
Income Taxes - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Dec. 31, 2018
Income Tax Examination [Line Items]        
Tax expense related to intercompany transactions     $ 8,500  
Valuation allowance increase (decrease) $ 302,300 $ 142,400    
Capitalized costs incurred by subsidiaries 38,100      
Unrecognized tax benefits 110,315 74,670 $ 37,392 $ 23,980
Unrecognized tax benefits that would impact effective tax rate 11,900 9,000    
Interest and penalties balance 2,500 2,200    
Interest and penalties accrued in year 300 $ (200)    
United States        
Income Tax Examination [Line Items]        
Operating loss carryforwards 1,000,000      
United States | Research Tax Credit Carryforward        
Income Tax Examination [Line Items]        
Tax credit carryforward 69,200      
State        
Income Tax Examination [Line Items]        
Operating loss carryforwards 392,200      
State | Research Tax Credit Carryforward        
Income Tax Examination [Line Items]        
Tax credit carryforward 28,400      
Foreign        
Income Tax Examination [Line Items]        
Operating loss carryforwards 449,800      
Foreign | Research Tax Credit Carryforward        
Income Tax Examination [Line Items]        
Tax credit carryforward $ 6,200      
v3.22.0.1
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2021
Dec. 31, 2020
Deferred tax assets:    
Net operating losses $ 332,622 $ 118,244
Tax credits 81,847 35,630
Accruals and reserves 9,261 8,537
Deferred revenue 5,683 4,960
Stock-based compensation 29,647 20,394
Charitable contribution 13,707 13,834
Capitalized R&D expenditures 94,686 56,596
Depreciation and amortization 0 4,300
Operating lease liabilities 24,137 22,477
Other 1,134 150
Gross deferred tax assets 592,724 285,122
Valuation allowance (568,124) (265,781)
Total deferred tax assets 24,600 19,341
Deferred tax liabilities:    
Depreciation and amortization (4,469) 0
Operating lease right-of-use assets (20,467) (19,341)
Other 0 (260)
Total deferred tax liabilities (24,936) (19,601)
Net deferred tax assets $ (336) $ (260)
v3.22.0.1
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Unrecognized tax benefits, beginning balance $ 74,670 $ 37,392 $ 23,980
Gross increases for tax positions taken in prior years 1,729 1,689 1,565
Gross decreases for tax positions taken in prior years (2,507) (694) (6,239)
Gross increases for tax positions taken in current year 38,406 38,829 19,398
Gross decreases for tax positions taken in current year 0 0 0
Reductions resulting from lapses of statues of limitations (1,700) (2,952) (1,258)
Foreign exchange gains and losses   406  
Foreign exchange gains and losses (283)   (54)
Unrecognized tax benefits, ending balance $ 110,315 $ 74,670 $ 37,392
v3.22.0.1
Net Loss per Share of Common Stock - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Numerator:      
Net loss $ (532,607) $ (282,308) $ (163,190)
Add: Deemed dividends representing excess paid over initial issuance price to repurchase convertible preferred stock 0 0 (110,241)
Net loss attributable to our common stockholders (532,607) (282,308) (273,431)
Net loss attributable to our common stockholders $ (532,607) $ (282,308) $ (273,431)
Denominator:      
Weighted-average common shares used in per share computation, basic (in shares) 282,195 169,973 114,442
Weighted-average common shares used in per share computation, diluted (in shares) 282,195 169,973 114,442
Net loss per share, basic (USD per share) $ (1.89) $ (1.66) $ (2.39)
Net loss per share, diluted (USD per share) $ (1.89) $ (1.66) $ (2.39)
v3.22.0.1
Net Loss per Share of Common Stock - Antidilutive Securities Excluded From Computation (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Convertible preferred stock      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 0 0 95,899
Convertible notes      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 9,091 0 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) 29,226 40,458 42,728
Unvested RSUs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Antidilutive securities excluded from computation of earnings per share (in shares) 13,697 10,366 2,849
v3.22.0.1
Subsequent Events (Details)
$ in Millions
 1 Months Ended
Jan. 31, 2022
USD ($)
Subsequent Event | January 2022 Acquisition  
Subsequent Event [Line Items]  
Consideration transferred $ 50.0