falsedesktopLVGO2020-06-30000163922520000019{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "☐\tLarge accelerated filer\t☐\tAccelerated filer\n☒\tNon-accelerated filer\t☐\tSmaller reporting company\n☒\tEmerging growth company\t\t\n", "q10k_tbl_1": "\t\tPAGE\n\tNote Regarding Forward-Looking Statements\t2\n\tPART I - Financial Information\t\nItem 1.\tFinancial Statements (Unaudited)\t4\n\tCondensed Consolidated Balance Sheets\t4\n\tCondensed Consolidated Statements of Operations\t5\n\tCondensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit)\t6\n\tCondensed Consolidated Statements of Cash Flows\t8\n\tNotes to Condensed Consolidated Financial Statements (Unaudited)\t10\nItem 2.\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t38\nItem 3.\tQuantitative and Qualitative Disclosures About Market Risk\t57\nItem 4.\tControls and Procedures\t57\n\tPART II - Other Information\t59\nItem 1.\tLegal Proceedings\t59\nItem 1A.\tRisk Factors\t59\nItem 2.\tUnregistered Sales of Equity Securities and Use of Proceeds\t105\nItem 3.\tDefault Upon Senior Securities\t105\nItem 4.\tMine Safety Disclosures\t106\nItem 5.\tOther Information\t106\nItem 6.\tExhibits\t107\n\tSignatures\t109\n", "q10k_tbl_2": "\tJune 30 2020\tDecember 31 2019\nASSETS\t\t\nCurrent assets:\t\t\nCash and cash equivalents\t685953\t241738\nShort-term investments\t150000\t150000\nAccounts receivable net of allowance for doubtful accounts of $2774 and $1245 as of June 30 2020 and December 31 2019 respectively\t59237\t40875\nInventories\t17616\t28983\nDeferred costs current\t27137\t16051\nPrepaid expenses and other current assets\t11318\t9860\nTotal current assets\t951261\t487507\nProperty and equipment net\t16209\t10354\nOperating lease right-of-use assets\t16253\t0\nRestricted cash noncurrent\t1270\t1270\nGoodwill\t35801\t35801\nIntangible assets net\t15081\t16469\nDeferred costs noncurrent\t12843\t5700\nOther noncurrent assets\t569\t3460\nTOTAL ASSETS\t1049287\t560561\nLIABILITIES REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY\t\t\nCurrent liabilities:\t\t\nAccounts payable\t6401\t8362\nAccrued expenses and other current liabilities\t35684\t27801\nDeferred revenue current\t5420\t3945\nAdvance payments from partner current\t354\t1767\nTotal current liabilities\t47859\t41875\nOperating lease liabilities noncurrent\t15758\t0\nDeferred revenue noncurrent\t1561\t654\nAdvance payment from partner noncurrent\t9142\t7754\nConvertible senior notes net\t396446\t0\nOther noncurrent liabilities\t397\t2914\nTOTAL LIABILITIES\t471163\t53197\nCommitments and contingencies (Note 9)\t\t\nStockholders' equity:\t\t\nPreferred stock par value of $0.001 per share; 100000 shares authorized as of June 30 2020 and December 31 2019 respectively; zero shares issued and outstanding as of June 30 2020 and December 31 2019 respectively\t0\t0\nCommon stock par value of $0.001 per share; 900000 shares authorized as of June 30 2020 and December 31 2019 respectively; 99412 and 95301 shares issued and outstanding as of June 30 2020 and December 31 2019 respectively\t100\t95\nAdditional paid-in capital\t749349\t671467\nAccumulated deficit\t(171325)\t(164198)\nTOTAL STOCKHOLDERS' EQUITY\t578124\t507364\nTOTAL LIABILITIES REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY\t1049287\t560561\n", "q10k_tbl_3": "\tThree Months Ended June 30\t\t\tSix Months Ended June 30\n\t2020\t2019\t2020\t2019\nRevenue\t91923\t40915\t160745\t72982\nCost of revenue\t21466\t11964\t39572\t21827\nGross profit\t70457\t28951\t121173\t51155\nOperating expenses:\t\t\t\t\nResearch and development\t15809\t10291\t29806\t19285\nSales and marketing\t32881\t17833\t60535\t32476\nGeneral and administrative\t22027\t13702\t37874\t27816\nChange in fair value of contingent consideration\t2\t282\t86\t956\nTotal operating expenses\t70719\t42108\t128301\t80533\nLoss from operations\t(262)\t(13157)\t(7128)\t(29378)\nInterest income\t1099\t183\t2476\t641\nInterest expense\t(2283)\t0\t(2320)\t0\nOther (expense) income net\t(36)\t2\t(62)\t6\nLoss before provision for income taxes\t(1482)\t(12972)\t(7034)\t(28731)\nProvision for (benefit from) income taxes\t72\t5\t93\t(1383)\nNet loss\t(1554)\t(12977)\t(7127)\t(27348)\nAccretion of redeemable convertible preferred stock\t0\t(42)\t0\t(83)\nNet loss attributable to common stockholders\t(1554)\t(13019)\t(7127)\t(27431)\nNet loss per share attributable to common stockholders basic and diluted\t(0.02)\t(0.69)\t(0.07)\t(1.48)\nWeighted-average shares used in computing net loss per share attributable to common stockholders basic and diluted\t97896\t18916\t96719\t18564\n", "q10k_tbl_4": "\tRedeemable Convertible Preferred Stock\t\t\tCommon Stock\t\t\tAdditional Paid-in Capital\tAccumulated Deficit\tTotal Stockholders' Equity (Deficit)\n\tShares\tAmount\tShares\tAmount\t\t\t\nBalance as of March 31 2020\t0\t0\t97293\t97\t670962\t(169771)\t501288\nIssuance of common stock upon exercise of stock options\t0\t0\t1590\t2\t2122\t0\t2124\nIssuance of common stock upon release of stock awards\t0\t0\t556\t0\t0\t0\t0\nTax withholding on releasing of stock awards\t0\t0\t(118)\t0\t(6198)\t0\t(6198)\nIssuance of common stock ESPP Purchase\t0\t0\t91\t1\t2154\t0\t2155\nEquity component of the convertible senior notes\t0\t0\t0\t0\t144106\t0\t144106\nEquity component of the issuance costs\t0\t0\t0\t0\t(4036)\t0\t(4036)\nPurchase of capped call related to convertible senior notes\t0\t0\t0\t0\t(69850)\t0\t(69850)\nStock-based compensation expense\t0\t0\t0\t0\t10089\t0\t10089\nNet loss\t0\t0\t0\t0\t\t(1554)\t(1554)\nBalance as of June 30 2020\t0\t0\t99412\t100\t749349\t(171325)\t578124\nBalance as of March 31 2019\t58615\t236970\t19618\t20\t27586\t(123299)\t(95693)\nAccretion of redeemable convertible preferred stock\t0\t42\t0\t0\t(42)\t0\t(42)\nIssuance of common stock upon exercise of stock options\t0\t0\t1272\t1\t1128\t0\t1129\nStock-based compensation expense\t0\t0\t0\t0\t4654\t0\t4654\nNet loss\t0\t0\t0\t0\t0\t(12977)\t(12977)\nBalance as of June 30 2019\t58615\t237012\t20890\t21\t33326\t(136276)\t(102929)\n", "q10k_tbl_5": "\tRedeemable Convertible Preferred Stock\t\t\tCommon Stock\t\t\tAdditional Paid-in Capital\tAccumulated Deficit\tTotal Stockholders' Equity (Deficit)\n\tShares\tAmount\tShares\tAmount\t\t\t\nBalance as of December 31 2019\t0\t0\t95301\t95\t671467\t(164198)\t507364\nIssuance of common stock upon exercise of stock options\t0\t0\t2837\t3\t3843\t0\t3846\nIssuance of common stock upon release of stock awards\t0\t0\t1676\t1\t(1)\t0\t0\nTax withholding on releasing of stock awards\t0\t0\t(493)\t0\t(16762)\t0\t(16762)\nIssuance of common stock ESPP Purchase\t0\t0\t91\t1\t2154\t0\t2155\nEquity component of the convertible senior notes\t0\t0\t0\t0\t144106\t0\t144106\nEquity component of the issuance costs\t0\t0\t0\t0\t(4036)\t0\t(4036)\nPurchase of capped call related to convertible senior notes\t0\t0\t0\t0\t(69850)\t0\t(69850)\nStock-based compensation expense\t0\t0\t0\t0\t18428\t0\t18428\nNet loss\t0\t0\t\t0\t\t(7127)\t(7127)\nBalance as of June 30 2020\t0\t0\t99412\t100\t749349\t(171325)\t578124\nBalance as of December 31 2018\t58615\t236929\t17691\t18\t21789\t(113613)\t(91806)\nCumulative effect adjustment from adoption of ASC 606\t0\t0\t0\t0\t0\t4685\t4685\nAccretion of redeemable convertible preferred stock\t0\t83\t0\t0\t(83)\t0\t(83)\nIssuance of common stock upon exercise of stock options\t0\t0\t3199\t2\t1441\t0\t1443\nIssuance of restricted stock awards\t0\t0\t0\t1\t(1)\t0\t0\nIssuance of common stock upon vesting of restricted stock units\t0\t0\t0\t0\t0\t0\t0\nStock-based compensation expense\t0\t0\t0\t0\t10180\t0\t10180\nNet loss\t0\t0\t0\t0\t\t(27348)\t(27348)\nBalance as of June 30 2019\t58615\t237012\t20890\t21\t33326\t(136276)\t(102929)\n", "q10k_tbl_6": "\tSix Months Ended June 30\t\n\t2020\t2019\nCASH FLOWS FROM OPERATING ACTIVITIES\t\t\nNet loss\t(7127)\t(27348)\nAdjustments to reconcile net loss to net cash used in operating activities:\t\t\nDepreciation and amortization expense\t2619\t1450\nAmortization of intangible assets\t1388\t1193\nNon-cash operating lease cost\t2199\t0\nAmortization of debt discount and debt issuance cost\t1922\t0\nChange in fair value of contingent consideration\t86\t956\nAllowance for doubtful accounts\t1644\t511\nStock-based compensation expense\t17938\t9963\nDeferred income taxes\t0\t(1396)\nChanges in operating assets and liabilities net of impact of acquisitions:\t\t\nAccounts receivable net\t(20006)\t(17637)\nInventories\t11367\t(4901)\nDeferred costs\t(18035)\t(7781)\nPrepaid expenses and other assets\t(667)\t(205)\nAccounts payable\t(2626)\t2257\nAccrued expenses and other liabilities\t3399\t(48)\nOperating lease liabilities\t(83)\t0\nDeferred revenue\t2382\t653\nAdvance payments from partner\t0\t2372\nNet cash used in operating activities\t(3600)\t(39961)\nCASH FLOWS FROM INVESTING ACTIVITIES\t\t\nPurchases of property and equipment\t(4476)\t(628)\nCapitalized internal-use software costs\t(2780)\t(2378)\nChange in escrow deposit\t2100\t1750\nInvestment in certificate of deposit\t(50000)\t0\nProceeds from maturity of certificate of deposit\t50000\t0\nAcquisitions net of cash acquired\t0\t(27435)\nNet cash used in investing activities\t(5156)\t(28691)\nCASH FLOWS FROM FINANCING ACTIVITIES\t\t\nProceeds from exercise of stock options net of repurchases\t3846\t1443\nProceeds from issuance of common stock under employee stock purchase plan\t2154\t0\nPayment of deferred offering costs\t(286)\t(1559)\nPayment of deferred acquisition-related contingent consideration\t(1356)\t(1316)\nProceeds from issuance of convertible notes net of transaction costs of $14775\t535225\t0\nPayment of capped calls related to issuance of convertible senior notes\t(69850)\t0\nTaxes paid related to net share settlement of equity awards\t(16762)\t0\nNet cash provided by (used in) financing activities\t452971\t(1432)\nNet increase (decrease) in cash cash equivalents and restricted cash\t444215\t(70084)\nCash cash equivalents and restricted cash beginning of period\t243008\t109107\nCash cash equivalents and restricted cash end of period\t687223\t39023\nReconciliation of cash cash equivalents and restricted cash:\t\t\nCash and cash equivalents\t685953\t38165\nRestricted cash\t1270\t858\nTotal cash cash equivalents and restricted cash end of period\t687223\t39023\nSupplemental disclosures of cash flow information\t\t\nCash paid for interest\t0\t0\nSUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING AND FINANCING ACTIVITIES:\t\t\nAccretion of redeemable convertible preferred stock\t0\t83\nPurchases of property and equipment included in accounts payable and accrued liabilities\t1256\t87\nContingent consideration liability related to myStrength acquisition\t0\t3300\nUnpaid working capital adjustment related to myStrength acquisition\t0\t119\nCapitalized internal-use software costs in accounts payable and accrued liabilities\t(335)\t(61)\nConvertible senior notes issuance costs in accounts payable and accrued liabilities\t631\t0\nUnpaid offering costs\t0\t1312\n", "q10k_tbl_7": "\tRevenue\t\t\t\t\t\t\tAccounts Receivable\n\tThree Months Ended June 30\t\t\tSix Months Ended June 30\t\t\tJune 30\tDecember 31\n\t2020\t2019\t2020\t2019\t2020\t2019\n\t\t\t(unaudited)\t\t\t\t\nClient A\t25%\t-%\t21\t-%\t12%\t-%\n", "q10k_tbl_8": "\tRevenue\t\t\t\t\t\t\tAccounts Receivable\n\tThree Months Ended June 30\t\t\tSix Months Ended June 30\t\t\tJune 30\tDecember 31\n\t2020\t2019\t2020\t2019\t2020\t2019\n\t\t\t(unaudited)\t\t\t\t\nPartner A\t17%\t27%\t20%\t26%\t17%\t23%\nPartner B\t15%\t24%\t16\t24%\t21%\t25%\n", "q10k_tbl_9": "\tAs of June 30 2020\nLiability component:\t\nPrincipal\t550000\nLess: unamortized discount\t(142324)\nLess: unamortized issuance costs\t(11230)\nNet carrying amount\t396446\nEquity component:\t\nNotes\t144106\nLess: issuance costs\t(4036)\nCarrying amount of the equity component(1)\t140070\n", "q10k_tbl_10": "\tThree and six months ended June 30 2020\nContractual interest expense\t361\nAmortization of debt discount\t1781\nAmortization of issuance costs\t141\nTotal\t2283\n", "q10k_tbl_11": "\tPayments Due by Period\t\t\t\t\t\n\tLess than 1 Year\t1-3 Years\t3-5 Years\tMore than 5 Years\tTotal\n\t(in thousands)\t\t\t\t\t\nPayment of principal and interest of convertible senior notes\t\t4772\t9625\t559625\t0\t574022\n", "q10k_tbl_12": "\tThree Months Ended June 30\t\t\tSix Months Ended June 30 2020\n\t2020\t2019\t2020\t2019\nBalance at beginning of period\t6099\t3527\t4599\t2051\nAmounts billed but unrecognized\t2937\t2390\t6077\t3768\nRevenue recognized\t(2055)\t(1813)\t(3695)\t(3122)\nAssumed from business combination\t0\t0\t0\t1407\nBalance at end of period\t6981\t4104\t6981\t4104\n", "q10k_tbl_13": "\tJune 30\tJune 30\n\t2020\t2019\nDeferred revenue current\t5420\t3467\nDeferred revenue noncurrent\t1561\t637\nTotal deferred revenue\t6981\t4104\n", "q10k_tbl_14": "\tThree Months Ended June 30\t\t\tSix Months Ended June 30 2020\n\t2020\t2019\t2020\t2019\nBalance at beginning of period\t1730\t533\t1152\t609\nASC 606 adoption date impact adjustment\t0\t0\t0\t(222)\nAmount deferred\t398\t(9)\t1174\t184\nRevenue recognized\t(275)\t0\t(473)\t(2)\nPayments\t(211)\t(50)\t(211)\t(95)\nBalance at end of period\t1642\t474\t1642\t474\n", "q10k_tbl_15": "\tThree Months Ended June 30 2020\t\t\t\n\tDeferred Device Costs\tDeferred Contract Costs\tDeferred Execution Credits\tTotal\nBalance at beginning of period\t29750\t2868\t472\t33090\nAdditions\t14606\t80\t96\t14782\nRevenue recognized\t0\t0\t(167)\t(167)\nCost of revenue recognized\t(7430)\t0\t0\t(7430)\nSales and marketing expenses recognized\t0\t(294)\t0\t(294)\nBalance at end of period\t36926\t2654\t401\t39981\n", "q10k_tbl_16": "\tThree Months Ended June 30 2019\t\t\t\n\tDeferred Device Costs\tDeferred Contract Costs\tDeferred Execution Credits\tTotal\nBalance at beginning of period\t14366\t3438\t638\t18442\nAdditions\t6095\t184\t32\t6311\nRevenue recognized\t0\t0\t(250)\t(250)\nCost of revenue recognized\t(3350)\t0\t0\t(3350)\nSales and marketing expenses recognized\t0\t(257)\t0\t(257)\nBalance at end of period\t17111\t3365\t420\t20896\n", "q10k_tbl_17": "\tSix Months Ended June 30 2020\t\t\t\n\tDeferred Device Costs\tDeferred Contract Costs\tDeferred Execution Credits\tTotal\nBalance at beginning of period\t18579\t2988\t184\t21751\nAdditions\t31750\t254\t514\t32518\nRevenue recognized\t0\t0\t(297)\t(297)\nCost of revenue recognized\t(13403)\t0\t0\t(13403)\nSales and marketing expenses recognized\t0\t(588)\t0\t(588)\nBalance at end of period\t36926\t2654\t401\t39981\n", "q10k_tbl_18": "\tSix Months Ended June 30 2019\t\t\t\n\tDeferred Device Costs\tDeferred Contract Costs\tDeferred Execution Credits\tTotal\nBalance at beginning of period\t8469\t0\t0\t8469\nASC 606 adoption date impact adjustment\t0\t3692\t771\t4463\nAdditions\t14590\t184\t144\t14918\nRevenue recognized\t0\t0\t(495)\t(495)\nCost of revenue recognized\t(5948)\t0\t0\t(5948)\nSales and marketing expenses recognized\t0\t(511)\t0\t(511)\nBalance at end of period\t17111\t3365\t420\t20896\n", "q10k_tbl_19": "\tJune 30 2020\t\t\t\n\tDeferred Device Costs\tDeferred Contract Costs\tDeferred Execution Credits\tTotal\nDeferred costs current\t25561\t1176\t401\t27138\nDeferred costs noncurrent\t11365\t1478\t0\t12843\nTotal deferred costs\t36926\t2654\t401\t39981\n", "q10k_tbl_20": "\tDecember 31 2019\t\t\t\n\tDeferred Device Costs\tDeferred Contract Costs\tDeferred Execution Credits\tTotal\nDeferred costs current\t14746\t1121\t184\t16051\nDeferred costs noncurrent\t3833\t1867\t0\t5700\nTotal deferred costs\t18579\t2988\t184\t21751\n", "q10k_tbl_21": "\tAmount\n\t(in thousands)\nCash and cash equivalents\t2643\nAccounts receivable\t1337\nOther current assets\t140\nProperty and equipment\t114\nIntangible assets\t13900\nOther assets\t34\nTotal assets acquired\t18168\nAccounts payable\t173\nAccrued expenses and other liabilities\t1787\nDeferred revenue\t1407\nDeferred tax liability net\t1396\nTotal liabilities assumed\t4763\nGoodwill\t20092\nTotal purchase consideration\t33497\n", "q10k_tbl_22": "\tCost\tUseful Life\n\t(in thousands)\t(years)\nCustomer relationships\t4300\t7.0\nDeveloped technology\t9200\t7.0\nTrade name\t400\t5.0\nTotal\t13900\t\n", "q10k_tbl_23": "\tJune 30\tDecember 31\n\t2020\t2019\n\t(in thousands)\t\t\t\t\t\t\t\nPrepaid expenses\t5821\t6691\nEscrow deposit current\t3244\t2100\nInterest receivable\t1118\t504\nPrepaid rent\t568\t352\nShort-term deposits\t567\t201\nOther current assets\t0\t12\nTotal\t11318\t9860\n", "q10k_tbl_24": "\tJune 30\tDecember 31\n\t2020\t2019\n\t(in thousands)\t\t\t\t\t\t\t\nComputer equipment and software\t4618\t2218\nFurniture and fixtures\t1971\t915\nCapitalized internal-use software\t13971\t11229\nLeasehold improvements\t3207\t1092\nProperty and equipment\t23767\t15454\nLess: accumulated depreciation\t(7558)\t(5100)\nProperty and equipment net\t16209\t10354\n", "q10k_tbl_25": "\tGross Value\tAccumulated Amortization\tNet Book Value\tWeighted- Average Remaining Useful Life\n\t(in thousands)\t\t\t\t\t\t\t\t\t\t\t\t\t(years)\t\t\nCustomer relationships\t8190\t(1729)\t6461\t6.6\nDeveloped technology\t11020\t(2687)\t8333\t5.2\nTrade name\t448\t(161)\t287\t3.6\nTotal\t19658\t(4577)\t15081\t\n", "q10k_tbl_26": "\tGross Value\tAccumulated Amortization\tNet Book Value\tWeighted- Average Remaining Useful Life\n\t(in thousands)\t\t\t\t\t\t\t\t\t\t\t\t\t(years)\t\t\nCustomer relationships\t8190\t(1227)\t6963\t7.1\nDeveloped technology\t11020\t(1848)\t9172\t5.7\nTrade names\t448\t(114)\t334\t4.0\nTotal\t19658\t(3189)\t16469\t\n", "q10k_tbl_27": "\tThree Months Ended June 30\t\t\tSix Months Ended June 30\n\t2020\t2019\t2020\t2019\n\t(in thousands)\t\t\t\t\t\t\t\t\t\nCustomer relationships\t251\t251\t502\t418\nDeveloped technology\t419\t353\t839\t730\nTrade names\t22\t25\t47\t45\nTotal\t692\t629\t1388\t1193\n", "q10k_tbl_28": "\tAmount\n\t(in thousands)\nRemainder of 2020\t1381\n2021\t2762\n2022\t2750\n2023\t2494\n2024\t2324\nThereafter\t3370\nTotal\t15081\n", "q10k_tbl_29": "\tJune 30\tDecember 31\n\t2020\t2019\n\t(in thousands)\t\t\t\t\t\t\t\nEscrow deposit noncurrent\t0\t3150\nOther\t569\t310\nTotal\t569\t3460\n", "q10k_tbl_30": "\tJune 30\tDecember 31\n\t2020\t2019\n\t(in thousands)\t\t\t\t\t\t\t\nAccrued bonus\t6654\t8652\nVendor accruals\t4888\t3984\nContingent consideration current\t2445\t3004\nAccrued commissions\t3827\t2611\nAccrued payroll and employee benefits\t2837\t2291\nAccrued sales and use taxes\t1043\t932\nAccrued rebates\t1642\t1152\nEmployee contribution to ESPP\t721\t1805\nAccrued Interest\t361\t0\nOperating lease liabilities current\t3130\t0\nOther accrued expenses\t8136\t3370\nTotal\t35684\t27801\n", "q10k_tbl_31": "\tJune 30 2020\t\t\t\n\tLevel 1\tLevel 2\tLevel 3\tFair Value\n\t(in thousands)\t\t\t\nAssets\t\t\t\t\nShort-term investment:\t\t\t\t\nCertificate of deposit\t150000\t0\t0\t150000\nTotal assets at fair value\t150000\t0\t0\t150000\nLiabilities\t\t\t\t\nOther current liabilities-contingent consideration\t0\t0\t2445\t2445\nTotal liabilities at fair value\t0\t0\t2445\t2445\n", "q10k_tbl_32": "\tDecember 31 2019\t\t\t\n\tLevel 1\tLevel 2\tLevel 3\tFair Value\n\t(in thousands)\t\t\t\nAssets\t\t\t\t\nCash equivalents:\t\t\t\t\nMoney market funds\t130640\t0\t0\t130640\nShort-term investment:\t\t\t\t\nCertificate of deposit\t150000\t0\t0\t150000\nTotal assets at fair value\t280640\t0\t0\t280640\nLiabilities\t\t\t\t\nOther current liabilities-contingent consideration\t0\t0\t3004\t3004\nOther noncurrent liabilities-contingent consideration\t0\t0\t2411\t2411\nTotal liabilities at fair value\t0\t0\t5415\t5415\n", "q10k_tbl_33": "\tJune 30 2020\t\t\t\n\tAdjusted Amortized Cost\tGross Unrealized Gains\tGross Unrealized Losses\tFair Value\n\t(in thousands)\t\t\t\nCash\t685953\t0\t0\t685953\nMoney market funds\t0\t0\t0\t0\nTotal cash and cash equivalents\t685953\t0\t0\t685953\nCertificate of deposit\t150000\t0\t0\t150000\nTotal short-term investments\t150000\t0\t0\t150000\nTotal cash cash equivalents and short-term investments\t835953\t0\t0\t835953\n", "q10k_tbl_34": "\tDecember 31 2019\t\t\t\n\tAdjusted Amortized Cost\tGross Unrealized Gains\tGross Unrealized Losses\tFair Value\n\t(in thousands)\t\t\t\nCash\t111098\t0\t0\t111098\nMoney market funds\t130640\t0\t0\t130640\nTotal cash and cash equivalents\t241738\t0\t0\t241738\nCertificate of deposit\t150000\t\t0\t150000\nTotal short-term investments\t150000\t0\t0\t150000\nTotal cash cash equivalents and short-term investments\t391738\t0\t0\t391738\n", "q10k_tbl_35": "\tSix Months Ended June 30\t\n\t2020\t2019\n\t(in thousands)\t\nBeginning balance\t5415\t5004\nContingent consideration recorded upon acquisition (Note 5)\t0\t3300\nChange in fair value of contingent consideration (Note 5)\t86\t955\nPayment related to Retrofit contingent consideration (Note 5)\t(472)\t(1316)\nPayment related to myStrength contingent consideration (Note 5)\t(2584)\t0\nEnding balance\t2445\t7943\n", "q10k_tbl_36": "\tJune 30 2020\n\t(in thousands)\nYears ending December 31\t\n2020 (remaining 6 months)\t2490\n2021\t5094\n2022\t5242\n2023\t5213\n2024\t1799\n2025 and thereafter\t3071\nTotal lease payments\t22909\nLess: imputed interest\t(1963)\nLess: tenant allowance\t(2058)\nTotal operating lease liabilities\t18888\nReported as:\t\nOperating lease liabilities current (1)\t3130\nOperating lease liabilities noncurrent\t15758\nTotal operating lease liabilities\t18888\n", "q10k_tbl_37": "\tNet Minimum Lease Payments\n\t(in thousands)\n2020\t3908\n2021\t5055\n2022\t5233\n2023\t5141\n2024\t1756\nThereafter\t3068\nTotal future minimum payments\t24161\n", "q10k_tbl_38": "\tJune 30\tDecember 31\n\t2020\t2019\n\t(in thousands)\t\t\t\t\t\t\t\nOutstanding warrants to purchase common stock\t695\t695\nOutstanding options to purchase common stock\t11011\t14020\nOutstanding restricted stock units\t4785\t5208\nRestricted stock awards subject to repurchase\t614\t736\nEstimated shares for future ESPP purchase\t1752\t890\nConvertible senior notes\t7278\t0\nAvailable for future issuance under 2019 Plan\t11485\t8160\nTotal\t37620\t29709\n", "q10k_tbl_39": "Holder\tIssue Date\tOutstanding Shares\tExercise Price\tExercisable Shares\tExpiration Date\n\t(in thousands except per share data)\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nPartner\t3/1/2015\t695\t2.28\t695\t2/28/2025\n\t\t695\t\t695\t\n", "q10k_tbl_40": "\t\tOptions Outstanding\t\t\t\n\tShares Available for Grant\tShares Subject to Options Outstanding\tWeighted- Average Exercise Price\tWeighted- Average Remaining Contractual Life (Years)\tAggregate Intrinsic Value\n\t(in thousands except per share data and years)\t\t\t\t\t\t\t\t\t\t\nBalance as of December 31 2019\t8160\t14020\t1.85\t6.7\t325474\nShares authorized\t3812\t0\t\t\t\nExercised\t0\t(2837)\t1.36\t\t\nForfeited/cancelled\t172\t(172)\t2.05\t\t\nRestricted stock units and PSUs granted\t(1430)\t0\t\t\t\nRestricted stock units and PSUs forfeited\t278\t0\t\t\t\nRestricted stock units and PSUs withheld for income taxes\t493\t0\t\t\t\nBalance as of June 30 2020\t11485\t11011\t1.97\t6.4\t806215\nVested and exercisable as of June 30 2020\t\t8221\t1.64\t6.1\t604619\n", "q10k_tbl_41": "\tShares\tWeighted- Average Grant Date Fair Value\n\t(in thousands except per share data)\t\t\t\t\t\t\t\nUnvested balance December 31 2019\t736\t9.76\nVested\t(122)\t9.76\nUnvested balance June 30 2020\t614\t9.76\n", "q10k_tbl_42": "\tRestricted Stock Units Performance RSUs and PSUs\tWeighted- Average Grant Date Fair Value\n\t(in thousands except per share data)\t\t\t\t\t\t\t\nBalance as of December 31 2019\t4708\t11.31\nGranted\t1429\t42.48\nReleased\t(1074)\t9.96\nForfeited\t(278)\t12.03\nBalance as of June 30 2020\t4785\t13.52\n", "q10k_tbl_43": "\tThree Months Ended June 30\t\t\tSix Months Ended June 30\n\t2020\t2019\t2020\t2019\n\t(in thousands)\t\t\t\t\t\t\t\t\t\nCost of revenue\t118\t6\t210\t12\nResearch and development expenses\t1593\t491\t3809\t852\nSales and marketing expenses\t2364\t41\t4416\t260\nGeneral and administrative expenses\t5800\t3915\t9503\t8839\nTotal stock-based compensation expense\t9875\t4453\t17938\t9963\n", "q10k_tbl_44": "\tThree Months Ended June 30\t\t\tSix Months Ended June 30\n\t2020\t2019\t2020\t2019\n\t(in thousands except per share data)\t\t\t\t\t\t\t\t\t\nNet loss\t(1554)\t(12977)\t(7127)\t(27348)\nAccretion of redeemable convertible preferred stock\t0\t(42)\t0\t(83)\nNet loss attributable to common stockholders\t(1554)\t(13019)\t(7127)\t(27431)\nWeighted-average shares used in computing net loss per share attributable to common stockholders basic and diluted\t97896\t18916\t96719\t18564\nNet loss per share attributable to common stockholders basic and diluted\t(0.02)\t(0.69)\t(0.07)\t(1.48)\n", "q10k_tbl_45": "\tThree Months Ended June 30\t\t\tSix Months Ended June 30\n\t2020\t2019\t2020\t2019\n\t(in thousands)\t\t\t\t\t\t\t\t\t\nRedeemable convertible preferred stock\t0\t58615\t0\t58615\nStock options\t11011\t15352\t11011\t15352\nRestricted stock awards subject to repurchase\t614\t736\t614\t736\nCommon stock warrants\t695\t785\t695\t785\nRestricted stock units\t4785\t1207\t4785\t1207\nConvertible senior notes\t7278\t0\t7278\t0\nESPP obligations\t14\t0\t14\t0\nTotal anti-dilutive shares\t24397\t76695\t24397\t76695\n", "q10k_tbl_46": "\tThree Months Ended June 30\t\t\tSix Months Ended June 30\n\t2020\t2019\t2020\t2019\n\t(dollars in thousands)\t\t\t\t\t\t\t\t\t\nClients(1)\t1328\t758\t1328\t758\nEnrolled Diabetes Members\t410270\t192934\t410270\t192934\nEstimated Value of Agreements(2)\t108705\t74234\t197713\t122297\n", "q10k_tbl_47": "\tThree Months Ended June 30\t\t\tSix Months Ended June 30\n\t2020\t2019\t2020\t2019\n\t(dollars in thousands)\t\t\t\t\t\t\t\t\t\nGross profit\t70457\t28951\t121173\t51155\nAdd:\t\t\t\t\nStock-based compensation expense\t118\t6\t210\t12\nAmortization of intangible assets\t420\t353\t840\t680\nEmployer payroll tax on stock-based compensation(1)\t27\t0\t27\t0\nAdjusted gross profit\t71022\t29310\t122250\t51847\nAdjusted gross margin (as a percentage of revenue)\t77.3%\t71.6%\t76.1%\t71.0%\n", "q10k_tbl_48": "\tThree Months Ended June 30\t\t\tSix Months Ended June 30\n\t2020\t2019\t2020\t2019\n\t(in thousands)\t\t\t\t\t\t\t\t\t\nNet (loss)\t(1554)\t(12977)\t(7127)\t(27348)\nAdd:\t\t\t\t\nDepreciation and amortization(1)\t1439\t754\t2619\t1450\nAmortization of intangible assets\t692\t629\t1388\t1193\nStock-based compensation expense\t9875\t4453\t17938\t9963\nEmployer payroll tax on stock-based compensation(2)\t1597\t0\t2197\t0\nAcquisition-related expenses(3)\t0\t18\t0\t225\nChange in fair value of contingent consideration\t2\t282\t86\t956\nOther income (expense) net(4)\t1220\t(185)\t(94)\t(647)\nProvision for (benefit from) income taxes\t72\t5\t93\t(1383)\nAdjusted EBITDA\t13343\t(7021)\t17100\t(15591)\n", "q10k_tbl_49": "\tThree Months Ended June 30\t\t\tSix Months Ended June 30\n\t2020\t2019\t2020\t2019\n\t(in thousands)\t\t\t\t\t\t\t\t\t\nRevenue\t91923\t40915\t160745\t72982\nCost of revenue(1)(2)\t21466\t11964\t39572\t21827\nGross profit\t70457\t28951\t121173\t51155\nOperating expenses:\t\t\t\t\nResearch and development(1)\t15809\t10291\t29806\t19285\nSales and marketing(1)(2)\t32881\t17833\t60535\t32476\nGeneral and administrative(1)(3)\t22027\t13702\t37874\t27816\nChange in fair value of contingent consideration\t2\t282\t86\t956\nTotal operating expenses\t70719\t42108\t128301\t80533\nLoss from operations\t(262)\t(13157)\t(7128)\t(29378)\nInterest income\t1099\t183\t2476\t641\nInterest expense\t(2283)\t0\t(2320)\t0\nOther (expense) income net\t(36)\t2\t(62)\t6\nLoss before provision for income taxes\t(1482)\t(12972)\t(7034)\t(28731)\nProvision for (benefit from) income taxes\t72\t5\t93\t(1383)\nNet loss\t(1554)\t(12977)\t(7127)\t(27348)\n", "q10k_tbl_50": "\tThree Months Ended June 30\t\t\tSix Months Ended June 30\n\t2020\t2019\t2020\t2019\n\t(in thousands)\t\t\t\t\t\t\t\t\t\nCost of revenue\t118\t6\t210\t12\nResearch and development\t1593\t491\t3809\t852\nSales and marketing\t2364\t41\t4416\t260\nGeneral and administrative\t5800\t3915\t9503\t8839\nTotal stock-based compensation expense\t9875\t4453\t17938\t9963\n", "q10k_tbl_51": "\tThree Months Ended June 30\t\t\tSix Months Ended June 30\n\t2020\t2019\t2020\t2019\n\t(in thousands)\t\t\t\t\t\t\t\t\t\nCost of revenue\t420\t353\t840\t680\nSales and marketing\t272\t276\t548\t513\nTotal amortization of intangible assets\t692\t629\t1388\t1193\n", "q10k_tbl_52": "\tThree Months Ended June 30\t\t\tSix Months Ended June 30\n\t2020\t2019\t2020\t2018\n\t(in thousands)\t\t\t\t\t\t\t\t\t\nGeneral and administrative\t0\t18\t0\t225\nTotal acquisition-related expenses\t0\t18\t0\t225\n", "q10k_tbl_53": "\tThree Months Ended June 30\t\t\tSix Months Ended June 30\nPercentage of Revenue Data\t2020\t2019\t2020\t2019\nRevenue\t100.0%\t100.0%\t100.0\t100.0%\nCost of revenue\t23.4\t29.2\t24.6\t29.9\nGross profit\t76.6\t70.8\t75.4\t70.1\nOperating expenses:\t\t\t\t\nResearch and development\t17.2\t25.2\t18.5\t26.4\nSales and marketing\t35.8\t43.6\t37.7\t44.5\nGeneral and administrative\t24.0\t33.5\t23.7\t38.1\nChange in fair value of contingent consideration\t0\t0.7\t0.1\t1.3\nTotal operating expenses\t77.0\t103.0\t80.0\t110.3\nLoss from operations\t(0.3)\t(32.2)\t(4.4)\t(40.3)\nInterest income\t1.2\t0.4\t1.5\t0.9\nInterest expense\t(2.5)\t0.1\t(1.4)\t0\nOther income (expense) net\t0\t0\t0\t0\nLoss before provision for income taxes\t(1.6)\t(31.7)\t(4.3)\t(39.4)\nProvision for (benefit from) income taxes\t0.1\t0\t0.1\t(1.9)\nNet loss\t(1.7)%\t(31.7)%\t(4.4)%\t(37.5)%\n", "q10k_tbl_54": "\tThree Months Ended June 30\t\t\t\tSix Months Ended June 30\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\n\t(dollars in thousands)\t\t\t\t(dollars in thousands)\t\nRevenue\t91923\t40915\t125%\t160745\t72982\t120%\n", "q10k_tbl_55": "\tThree Months Ended June 30\t\t\t\tSix Months Ended June 30\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\n\t(dollars in thousands)\t\t\t\t(dollars in thousands)\t\nCost of revenue\t21466\t11964\t79%\t39572\t21827\t81%\n", "q10k_tbl_56": "\tThree Months Ended June 30\t\t\t\tSix Months Ended June 30\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\n\t(dollars in thousands)\t\t\t\t(dollars in thousands)\t\nGross profit\t70457\t28951\t143%\t121173\t51155\t137%\nGross margin\t76.6%\t70.8%\t\t75.4%\t70.1%\t\n", "q10k_tbl_57": "\tThree Months Ended June 30\t\t\t\tSix Months Ended June 30\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\n\t(dollars in thousands)\t\t\t\t(dollars in thousands)\t\nResearch and development\t15809\t10291\t54%\t29806\t19285\t55%\n", "q10k_tbl_58": "\tThree Months Ended June 30\t\t\t\tSix Months Ended June 30\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\n\t(dollars in thousands)\t\t\t\t(dollars in thousands)\t\nSales and marketing\t32881\t17833\t84%\t60535\t32476\t86%\n", "q10k_tbl_59": "\tThree Months Ended June 30\t\t\t\tSix Months Ended June 30\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\n\t(dollars in thousands)\t\t\t\t(dollars in thousands)\t\nGeneral and administrative\t22027\t13702\t61%\t37874\t27816\t36%\n", "q10k_tbl_60": "\tThree Months Ended June 30\t\t\t\tSix Months Ended June 30\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\n\t(dollars in thousands)\t\t\t\t(dollars in thousands)\t\nChange in fair value of contingent consideration\t2\t282\t*\t86\t956\t*\n", "q10k_tbl_61": "\tThree Months Ended June 30\t\t\t\tSix Months Ended June 30\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\n\t(dollars in thousands)\t\t\t\t(dollars in thousands)\t\nInterest income\t1099\t183\t501%\t2476\t641\t286%\nInterest expense\t(2283)\t0\tnm\t(2320)\t0\tnm\n", "q10k_tbl_62": "\tThree Months Ended June 30\t\t\t\tSix Months Ended June 30\t\n\t2020\t2019\t% Change\t2020\t2019\t% Change\n\t(dollars in thousands)\t\t\t\t(dollars in thousands)\t\nProvision for (benefit from) income taxes\t72\t5\t1340%\t93\t(1383)\t*\n", "q10k_tbl_63": "\tSix Months Ended June 30\t\n\t2020\t2019\n\t(in thousands)\t\nNet cash used in operating activities\t(3600)\t(39961)\nNet cash used in investing activities\t(5156)\t(28691)\nNet cash (used in) provided by financing activities\t452971\t(1432)\n", "q10k_tbl_64": "\tPayments Due by Period\t\t\t\t\t\n\tLess than 1 Year\t1-3 Years\t3-5 Years\tMore than 5 Years\tTotal\n\t(in thousands)\t\t\t\t\t\nPayment of principal and interest of convertible senior notes\t\t4772\t9625\t559625\t0\t574022\n", "q10k_tbl_65": "\t\tIncorporated by Reference\t\t\t\t\nExhibit Number\tDescription\tForm\tFile No.\tExhibit\tFiling Date\tFiled Herewith\n4.1\tIndenture by and between the Registrant and U.S. Bank National Association as Trustee dated as of June 4 2020.\t8-K\t001-38983\t4.1\t6/4/2020\t\n4.2\tForm of Note representing the Registrant's 0.875% Convertible Senior Notes due 2025 (included as Exhibit A to the Indenture filed as Exhibit 4.1).\t8-K\t001-38983\t4.2\t6/4/2020\t\n4.3\tAmendment to Warrant by and between the Registrant and Cerner Capital Inc. dated as of May 8 2020.\t\t\t\t\tx\n10.1\tPurchase Agreement by and among the Registrant and Morgan Stanley & Co. LLC Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC dated as of June 1 2020.\t8-K\t001-38983\t10.1\t6/4/2020\t\n10.2\tForm of Confirmation for Capped Call Transactions.\t8-K\t001-38983\t10.2\t6/4/2020\t\n10.3\tSecond Amendment to Loan and Security Agreement by and between the Registrant and Silicon Valley Bank dated as of June 1 2020.\t8-K\t001-38983\t10.3\t6/4/2020\t\n10.4\tThird Amendment to Loan and Security Agreement by and between the Registrant and Silicon Valley Bank dated as of June 1 2020.\t8-K\t001-38983\t10.4\t6/4/2020\t\n31.1\tCertification of Principal Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934 as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\t\t\t\t\tx\n31.2\tCertification of Principal Financial Officer Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934 as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\t\t\t\t\tx\n32.1*\tCertification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.\t\t\t\t\tx\n32.2*\tCertification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002.\t\t\t\t\tx\n101 SCH\tInline XBRL Taxonomy Extension Schema Document.\t\t\t\t\tx\n101 CAL\tInline XBRL Taxonomy Extension Calculation Linkbase Document.\t\t\t\t\tx\n101 DEF\tInline Taxonomy Extension Definition Linkbase Document.\t\t\t\t\tx\n101 LAB\tInline XBRL Taxonomy Extension Label Linkbase Document.\t\t\t\t\tx\n101 PRE\tInline XBRL Taxonomy Extension Presentation Linkbase Document.\t\t\t\t\tx\n"}{"bs": "q10k_tbl_2", "is": "q10k_tbl_53", "cf": "q10k_tbl_6"}None
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________
Commission File Number: 001-38983
___________________________________________
Livongo Health, Inc.
(Exact name of Registrant as specified in its charter)
___________________________________________
Delaware
26-3542036
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification Number)
150 West Evelyn Avenue, Suite 150
Mountain View, California94041
(866) 435-5643
(Address, including zip code, and telephone number, including area code, of Registrant’s principal executive offices)
___________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock, $0.001 par value
LVGO
The Nasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
☐
Large accelerated filer
☐
Accelerated filer
☒
Non-accelerated filer
☐
Smaller reporting company
☒
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
As of July 31, 2020, the registrant had approximately 100,308,000 shares of common stock, $0.001 par value per share, outstanding.
As used in this Quarterly Report on Form 10-Q, references to “Livongo,” “we,” “us,” “our,” “the Company,” and similar references refer to Livongo Health, Inc. and its consolidated subsidiaries, except as expressly indicated or as the context otherwise requires.
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, that are based on our management's beliefs and assumptions and on information currently available to our management. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. All statements other than present and historical facts and conditions contained in this report, including statements regarding our future results of operations and financial position, business strategy, plans and our objectives for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Actual events or results may differ from those expressed in these forward-looking statements, and these differences may be material and adverse. Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:
•the merger with Teladoc Health, Inc., including expected timing, completion and effects of the merger;
•our ability to retain clients and sell additional solutions to new and existing clients;
•our ability to attract and enroll new members;
•the growth and success of our partners and reseller relationships;
•our ability to estimate the size of our target market;
•uncertainty in the healthcare regulatory environment;
•our future financial performance, including trends in revenue, costs of revenue, gross profit or gross margin, operating expenses, paying users, and free cash flow;
•our ability to achieve or maintain profitability;
•the demand for our solutions or for chronic condition management in general;
•our ability to compete successfully in competitive markets;
•our ability to respond to rapid technological changes;
•our expectations and management of future growth;
•our ability to develop new solutions, or enhancements to our existing solutions, and bring them to market in a timely manner;
•our ability to offer high-quality coaching and monitoring;
•our ability to attract and retain key personnel and highly qualified personnel;
•our ability to protect our brand;
•our ability to expand payor relationships;
•our ability to maintain, protect, and enhance our intellectual property;
•restrictions and penalties as a result of privacy and data protection laws;
•our expectations about the impact of natural disasters and public health epidemics, such as COVID-19, on our business, results of operations and financial condition;
•the potential impact of the COVID-19 pandemic on the financial markets in general and on our business in particular;
•our ability to successfully identify, acquire, and integrate companies and assets;
•the increased expenses associated with being a public company;
•our anticipated uses of net proceeds from our initial public offering and issuance of convertible senior notes; and
•the future trading prices of our common stock.
We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, prospects, business strategy and financial needs. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, assumptions and other factors described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q, in our Annual Report on Form 10-K for the year ended December 31, 2019 and in our other filings with the Securities and Exchange Commission, or the SEC. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. We cannot assure you that the results, events and circumstances reflected in the forward-looking statements will be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. In light of the significant uncertainties in these forward-looking statements, you should not regard these
statements as a representation or warranty by us or any other person that we will achieve our objectives and plans in any specified time frame or at all.
The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this Quarterly Report on Form 10-Q, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements.
Accounts receivable, net of allowance for doubtful accounts of $2,774 and $1,245 as of June 30, 2020 and December 31, 2019, respectively
59,237
40,875
Inventories
17,616
28,983
Deferred costs, current
27,137
16,051
Prepaid expenses and other current assets
11,318
9,860
Total current assets
951,261
487,507
Property and equipment, net
16,209
10,354
Operating lease right-of-use assets
16,253
—
Restricted cash, noncurrent
1,270
1,270
Goodwill
35,801
35,801
Intangible assets, net
15,081
16,469
Deferred costs, noncurrent
12,843
5,700
Other noncurrent assets
569
3,460
TOTAL ASSETS
$
1,049,287
$
560,561
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
6,401
$
8,362
Accrued expenses and other current liabilities
35,684
27,801
Deferred revenue, current
5,420
3,945
Advance payments from partner, current
354
1,767
Total current liabilities
47,859
41,875
Operating lease liabilities, noncurrent
15,758
—
Deferred revenue, noncurrent
1,561
654
Advance payment from partner, noncurrent
9,142
7,754
Convertible senior notes, net
396,446
—
Other noncurrent liabilities
397
2,914
TOTAL LIABILITIES
471,163
53,197
Commitments and contingencies (Note 9)
Stockholders’ equity:
Preferred stock, par value of $0.001 per share; 100,000 shares authorized as of June 30, 2020 and December 31, 2019, respectively; zero shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively
—
—
Common stock, par value of $0.001 per share; 900,000 shares authorized as of June 30, 2020 and December 31, 2019, respectively; 99,412 and 95,301 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively
100
95
Additional paid-in capital
749,349
671,467
Accumulated deficit
(171,325)
(164,198)
TOTAL STOCKHOLDERS’ EQUITY
578,124
507,364
TOTAL LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK, AND STOCKHOLDERS’ EQUITY
$
1,049,287
$
560,561
The accompanying notes are an integral part of these condensed consolidated financial statements.