falsedesktopNET2019-09-30000147733319000013{"tbl_sim": "https://q10k.com/tbl-sim", "search": "https://q10k.com/search"}{"q10k_tbl_0": "Large accelerated filer\t☐\tAccelerated filer\t☐\nNon-accelerated filer\t☒\tSmaller reporting company\t☐\n\t\tEmerging growth company\t☒\n", "q10k_tbl_1": "\tPART I. FINANCIAL INFORMATION\tPage\nItem 1\tFinancial Statements (unaudited)\t6\n\tCondensed Consolidated Balance Sheets as of September 30 2019 and December 31 2018\t6\n\tCondensed Consolidated Statements of Operations for the Three and Nine Months Ended September 30 2019 and 2018\t7\n\tCondensed Consolidated Statements of Comprehensive Loss for the Three and Nine Months Ended September 30 2019 and 2018\t8\n\tCondensed Consolidated Statements of Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit) for the Three and Nine Months ended September 30 2019 and 2018\t9\n\tCondensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30 2019 and 2018\t13\n\tNotes to Condensed Consolidated Financial Statements\t14\nItem 2\tManagement's Discussion and Analysis of Financial Condition and Results of Operations\t37\nItem 3\tQuantitative and Qualitative Disclosures about Market Risk\t52\nItem 4\tControls and Procedures\t53\n\tPART II. OTHER INFORMATION\t\nItem 1\tLegal Proceedings\t54\nItem 1A\tRisk Factors\t54\nItem 2\tUnregistered Sales of Equity Securities and Use of Proceeds\t92\nItem 6\tExhibits\t94\n\tSignatures\t96\n", "q10k_tbl_2": "\tSeptember 30 2019\tDecember 31 2018\nAssets\t\t\nCurrent assets:\t\t\nCash and cash equivalents\t501706\t25055\nMarketable securities\t143399\t135602\nAccounts receivable net\t32205\t25155\nContract assets\t1470\t1552\nPrepaid expenses and other current assets\t16898\t9373\nTotal current assets\t695678\t196737\nLong-term investments\t16169\t0\nProperty and equipment net\t92485\t73210\nGoodwill\t4083\t4083\nAcquired intangible assets net\t62\t156\nDeferred contract acquisition costs noncurrent\t21141\t15940\nRestricted cash\t6660\t6371\nOther noncurrent assets\t3569\t1883\nTotal assets\t839847\t298380\nLiabilities Redeemable Convertible Preferred Stock and Stockholders' Equity (Deficit)\t\t\nCurrent liabilities:\t\t\nAccounts payable\t9517\t14285\nAccrued expenses and other current liabilities\t23121\t15699\nNote payable current portion\t37\t255\nLiability for early exercise of unvested stock options\t14629\t14323\nDeferred revenue\t29835\t16817\nTotal current liabilities\t77139\t61379\nBuild-to-suit lease financing obligation\t10501\t10443\nDeferred revenue noncurrent\t816\t220\nRedeemable convertible preferred stock warrant liability\t0\t1618\nOther noncurrent liabilities\t10993\t6704\nTotal liabilities\t99449\t80364\nCommitments and contingencies (Note 7)\t\t\nRedeemable Convertible Preferred Stock\t\t\nRedeemable convertible preferred stock; $0.001 par value; zero and 168108 shares authorized as of September 30 2019 and December 31 2018 respectively; zero and 165658 shares issued and outstanding with aggregate liquidation preference of zero and $332041 as of September 30 2019 and December 31 2018 respectively\t0\t331521\nStockholders' Equity (Deficit)\t\t\nClass A common stock; $0.001 par value; 2250000 and 550000 shares authorized as of September 30 2019 and December 31 2018 respectively; 86839 and zero shares issued and outstanding as of September 30 2019 and December 31 2018 respectively\t87\t0\nClass B common stock; $0.001 par value; 315000 and 300000 shares authorized as of September 30 2019 and December 31 2018 respectively; 213308 and 91542 shares issued and outstanding as of September 30 2019 and December 31 2018 respectively\t207\t85\nAdditional paid-in capital\t1013582\t82345\nAccumulated deficit\t(273551)\t(195878)\nAccumulated other comprehensive income (loss)\t73\t(57)\nTotal stockholders' equity (deficit)\t740398\t(113505)\nTotal liabilities redeemable convertible preferred stock and stockholders' equity (deficit)\t839847\t298380\n", "q10k_tbl_3": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\n\t2019\t2018\t2019\t2018\nRevenue\t73941\t50070\t203092\t137175\nCost of revenue\t16033\t11209\t45225\t30581\nGross profit\t57908\t38861\t157867\t106594\nOperating expenses:\t\t\t\t\nSales and marketing\t45538\t24462\t112191\t66206\nResearch and development\t27863\t14827\t64380\t39113\nGeneral and administrative\t25593\t36040\t59300\t69081\nTotal operating expenses\t98994\t75329\t235871\t174400\nLoss from operations\t(41086)\t(36468)\t(78004)\t(67806)\nNon-operating income (expense):\t\t\t\t\nInterest income\t1079\t387\t2822\t847\nInterest expense\t(407)\t(251)\t(970)\t(726)\nOther expense net\t(651)\t(1240)\t(1030)\t(1903)\nTotal non-operating income (expense) net\t21\t(1104)\t822\t(1782)\nLoss before income taxes\t(41065)\t(37572)\t(77182)\t(69588)\nProvision for (benefit from) income taxes\t(212)\t417\t491\t889\nNet loss\t(40853)\t(37989)\t(77673)\t(70477)\nNet loss per share attributable to common stockholders basic and diluted\t(0.35)\t(0.47)\t(0.81)\t(0.88)\nWeighted-average shares used in computing net loss per share attributable to common stockholders basic and diluted\t118056\t81579\t96393\t79755\n", "q10k_tbl_4": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\n\t2019\t2018\t2019\t2018\nNet loss\t(40853)\t(37989)\t(77673)\t(70477)\nOther comprehensive income (loss):\t\t\t\t\nChange in unrealized gain (loss) on investments net of tax\t7\t(2)\t130\t40\nOther comprehensive income (loss)\t7\t(2)\t130\t40\nComprehensive loss\t(40846)\t(37991)\t(77543)\t(70437)\n", "q10k_tbl_5": "\tThree Months Ended September 30 2019\t\t\t\t\t\t\t\t\t\t\t\t\n\tRedeemable convertible preferred stock\t\t\tClass A common stock\t\t\tClass B common stock\t\t\tAdditional paid-in capital\tAccumulated deficit\tAccumulated other comprehensive income (loss)\tTotal stockholders' equity (deficit)\n\tShares\tAmount\tShares\tAmount\tShares\tAmount\t\t\t\t\nBalance as of June 30 2019\t165658\t331521\t0\t0\t92686\t86\t87111\t(232698)\t66\t(145435)\nIssuance of common stock upon initial public offering net of underwriting discounts and issuance costs\t0\t0\t40250\t40\t0\t0\t565001\t0\t0\t565041\nConversion of redeemable convertible preferred stock to common stock upon initial public offering\t(165658)\t(331521)\t31381\t31\t134277\t135\t331355\t0\t0\t331521\nConversion of redeemable convertible preferred stock warrants into common stock warrants and issuance of common stock upon net exercise of common stock warrants\t0\t0\t0\t0\t174\t0\t3135\t0\t0\t3135\nIssuance of common stock upon exercise of stock options\t0\t0\t9\t1\t1108\t1\t1833\t0\t0\t1835\nRepurchases of unvested common stock\t0\t0\t0\t0\t(33)\t0\t0\t0\t0\t0\nIssuance of common stock related to early exercised stock options\t0\t0\t0\t0\t295\t0\t0\t0\t0\t0\nVesting of shares issued upon early exercise of stock options\t0\t0\t0\t0\t0\t0\t951\t0\t0\t951\nConversion of Class B to Class A common stock\t0\t0\t15199\t15\t(15199)\t(15)\t0\t0\t0\t0\nStock-based compensation\t0\t0\t0\t0\t0\t0\t24196\t0\t0\t24196\nNet loss\t0\t0\t0\t0\t0\t0\t0\t(40853)\t0\t(40853)\nOther comprehensive income (loss)\t0\t0\t0\t0\t0\t0\t0\t0\t7\t7\nBalance as of September 30 2019\t0\t0\t86839\t87\t213308\t207\t1013582\t(273551)\t73\t740398\n", "q10k_tbl_6": "\tThree Months Ended September 30 2018\t\t\t\t\t\t\t\t\t\n\tRedeemable convertible preferred stock\t\t\tCommon Stock\t\t\tAdditional paid-in capital\tAccumulated deficit\tAccumulated other comprehensive income (loss)\tTotal stockholders' equity (deficit)\n\tShares\tAmount\tShares\tAmount\t\t\t\t\nBalance as of June 30 2018\t152022\t181546\t80879\t79\t51816\t(141202)\t(64)\t(89371)\nIssuance of Series D redeemable convertible preferred stock net of issuance costs of $25\t13636\t149975\t0\t0\t0\t0\t0\t0\nIssuance of common stock upon exercise of stock options\t0\t0\t4870\t5\t3716\t0\t0\t3721\nRepurchases of unvested common stock\t0\t0\t(2)\t0\t0\t0\t0\t0\nIssuance of common stock related to early exercised stock options\t0\t0\t5674\t0\t0\t0\t0\t0\nVesting of restricted common stock\t0\t0\t75\t0\t3\t0\t0\t3\nVesting of shares issued upon early exercise of stock options\t0\t0\t0\t0\t447\t0\t0\t447\nStock-based compensation\t0\t0\t0\t0\t24520\t0\t0\t24520\nNet loss\t0\t0\t0\t0\t0\t(37989)\t0\t(37989)\nOther comprehensive income (loss)\t0\t0\t0\t0\t0\t0\t(2)\t(2)\nBalance as of September 30 2018\t165658\t331521\t91496\t84\t80502\t(179191)\t(66)\t(98671)\n", "q10k_tbl_7": "\tNine Months Ended September 30 2019\t\t\t\t\t\t\t\t\t\t\t\t\n\tRedeemable convertible preferred stock\t\t\tClass A common stock\t\t\tClass B common stock\t\t\tAdditional paid-in capital\tAccumulated deficit\tAccumulated other comprehensive income (loss)\tTotal stockholders' equity (deficit)\n\tShares\tAmount\tShares\tAmount\tShares\tAmount\t\t\t\t\nBalance as of December 31 2018\t165658\t331521\t0\t0\t91542\t85\t82345\t(195878)\t(57)\t(113505)\nIssuance of common stock upon initial public offering net of underwriting discounts and issuance costs\t0\t0\t40250\t40\t0\t0\t565001\t0\t0\t565041\nConversion of redeemable convertible preferred stock to common stock upon initial public offering\t(165658)\t(331521)\t31381\t31\t134277\t135\t331355\t0\t0\t331521\nConversion of redeemable convertible preferred stock warrants into common stock warrants and issuance of common stock upon net exercise of common stock warrants\t0\t0\t0\t0\t174\t0\t3135\t0\t0\t3135\nIssuance of common stock in connection with acquisition\t0\t0\t0\t0\t7\t0\t18\t0\t0\t18\nIssuance of common stock upon exercise of stock options\t0\t0\t9\t1\t1689\t2\t2899\t0\t0\t2902\nRepurchases of unvested common stock\t0\t0\t0\t0\t(73)\t0\t0\t0\t0\t0\nIssuance of common stock related to early exercised stock options\t0\t0\t0\t0\t891\t0\t0\t0\t0\t0\nVesting of shares issued upon early exercise of stock options\t0\t0\t0\t0\t0\t0\t2389\t0\t0\t2389\nConversion of Class B to Class A common stock\t0\t0\t15199\t15\t(15199)\t(15)\t0\t0\t0\t0\nStock-based compensation\t0\t0\t0\t0\t0\t0\t26440\t0\t0\t26440\nNet loss\t0\t0\t0\t0\t0\t0\t0\t(77673)\t0\t(77673)\nOther comprehensive income (loss)\t0\t0\t0\t0\t0\t0\t0\t0\t130\t130\nBalance as of September 30 2019\t0\t0\t86839\t87\t213308\t207\t1013582\t(273551)\t73\t740398\n", "q10k_tbl_8": "\tNine Months Ended September 30 2018\t\t\t\t\t\t\t\t\t\n\tRedeemable convertible preferred stock\t\t\tCommon stock\t\t\tAdditional paid-in capital\tAccumulated deficit\tAccumulated other comprehensive income (loss)\tTotal stockholders' equity (deficit)\n\tShares\tAmount\tShares\tAmount\t\t\t\t\nBalance as of December 31 2017\t152022\t181546\t79116\t79\t48907\t(108714)\t(106)\t(59834)\nIssuance of Series D redeemable convertible preferred stock net of issuance costs of $25\t13636\t149975\t0\t0\t0\t0\t0\t0\nIssuance of common stock upon exercise of stock options\t0\t0\t5425\t5\t4312\t0\t0\t4317\nRepurchases of unvested common stock\t0\t0\t(26)\t0\t0\t0\t0\t0\nIssuance of common stock related to early exercised stock options\t0\t0\t6906\t0\t0\t0\t0\t0\nVesting of shares issued upon early exercise of stock options\t0\t0\t0\t0\t813\t0\t0\t813\nVesting of restricted stock\t0\t0\t75\t0\t3\t0\t0\t3\nStock-based compensation\t0\t0\t0\t0\t26467\t0\t0\t26467\nNet loss\t0\t0\t0\t0\t0\t(70477)\t0\t(70477)\nOther comprehensive income (loss)\t0\t0\t0\t0\t0\t0\t40\t40\nBalance as of September 30 2018\t165658\t331521\t91496\t84\t80502\t(179191)\t(66)\t(98671)\n", "q10k_tbl_9": "\tNine Months Ended September 30\t\n\t2019\t2018\nCash Flows From Operating Activities\t\t\nNet loss\t(77673)\t(70477)\nAdjustments to reconcile net loss to cash used in operating activities:\t\t\nDepreciation and amortization expense\t20923\t13397\nAmortization of deferred contract acquisition costs\t7722\t4990\nStock-based compensation expense\t25012\t26285\nNet accretion of discounts and amortization of premiums on available-for-sale securities\t(1137)\t(78)\nDeferred income taxes\t0\t7\nProvision for bad debt\t861\t909\nChange in fair value of redeemable convertible preferred stock warrant liability\t1517\t1187\nOther\t27\t62\nChanges in operating assets and liabilities net of effect of acquisitions:\t\t\nAccounts receivable net\t(7911)\t(15269)\nContract assets\t82\t2344\nDeferred contract acquisition costs\t(12923)\t(8639)\nPrepaid expenses and other current assets\t(7525)\t(3293)\nOther noncurrent assets\t(1686)\t(228)\nAccounts payable\t(994)\t5037\nAccrued expenses and other current liabilities\t5652\t5065\nDeferred revenue\t13614\t5263\nLiability for early exercise of unvested stock options\t0\t19\nOther noncurrent liabilities\t4096\t2408\nNet cash used in operating activities\t(30343)\t(31011)\nCash Flows From Investing Activities\t\t\nPurchases of property and equipment\t(30981)\t(12507)\nCapitalized internal-use software\t(11332)\t(5645)\nPurchases of available-for-sale securities\t(157075)\t(87115)\nSales of available-for-sale securities\t1978\t0\nMaturities of available-for-sale securities\t132398\t42955\nOther investing activities\t30\t42\nNet cash used in investing activities\t(64982)\t(62270)\nCash Flows From Financing Activities\t\t\nProceeds from issuance of preferred stock net of issuance costs\t0\t149975\nProceeds from initial public offering net of underwriting discounts and commissions\t570544\t0\nProceeds from the exercise of stock options\t2899\t4317\nProceeds from the early exercise of stock options\t2871\t14525\nRepurchases of unvested common stock\t(155)\t(48)\nPayments on note payable\t(218)\t(266)\nProceeds from build-to-suit lease financing obligation drawdown\t58\t107\nPayments of deferred offering costs\t(3734)\t0\nNet cash provided by financing activities\t572265\t168610\nNet increase in cash cash equivalents and restricted cash\t476940\t75329\nCash cash equivalents and restricted cash beginning of period\t31426\t26881\nCash cash equivalents and restricted cash end of period\t508366\t102210\nSupplemental Disclosure of Cash Flow Information:\t\t\nCash paid for interest\t573\t572\nCash paid for taxes\t2027\t2149\nSupplemental Disclosure of Non-cash Investing and Financing Activities:\t\t\nStock-based compensation capitalized for software development\t1428\t183\nAccounts payable and accrued expenses related to property and equipment additions\t1291\t2275\nVesting of early exercised stock options\t2389\t813\nDeferred offering costs accrued but not paid\t1770\t0\nConversion of redeemable convertible preferred stock to common stock\t331521\t0\nConversion of redeemable convertible preferred stock warrant liability reclassified to additional paid-in capital\t3135\t0\n", "q10k_tbl_10": "\tThree Months Ended September 30\t\t\t\t\t\t\tNine Months Ended September 30\t\n\t2019\t\t\t2018\t\t\t2019\t\t2018\n\t(in thousands)\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\tAmount\tPercentage of Revenue\tAmount\tPercentage of Revenue\tAmount\tPercentage of Revenue\tAmount\tPercentage of Revenue\nUnited States\t37605\t51%\t23914\t48%\t101571\t50%\t64874\t47%\nEurope Middle East and Africa\t17652\t24%\t12648\t25%\t48275\t24%\t35375\t26%\nAsia Pacific\t13993\t19%\t10223\t20%\t39782\t20%\t27989\t20%\nOther\t4691\t6%\t3285\t7%\t13464\t6%\t8937\t7%\nTotal\t73941\t100%\t50070\t100%\t203092\t100%\t137175\t100%\n", "q10k_tbl_11": "\tThree Months Ended September 30\t\t\t\t\t\t\tNine Months Ended September 30\t\n\t2019\t\t\t2018\t\t\t2019\t\t2018\n\t(in thousands)\t\t\t\t\t\t\t\t\t\t\t\t\t\t\n\tAmount\tPercentage of Revenue\tAmount\tPercentage of Revenue\tAmount\tPercentage of Revenue\tAmount\tPercentage of Revenue\nChannel partners\t6554\t9%\t3367\t7%\t18413\t9%\t9085\t7%\nDirect customers\t67387\t91%\t46703\t93%\t184679\t91%\t128090\t93%\nTotal\t73941\t100%\t50070\t100%\t203092\t100%\t137175\t100%\n", "q10k_tbl_12": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\n\t2019\t2018\t2019\t2018\n\t(in thousands)\t\t\t\t\t\t\t\t\t\nBeginning balance\t19482\t13033\t15940\t10765\nCapitalization of contract acquisition costs\t4477\t3233\t12923\t8639\nAmortization of deferred contract acquisition costs\t(2818)\t(1852)\t(7722)\t(4990)\nEnding balance\t21141\t14414\t21141\t14414\n", "q10k_tbl_13": "(in thousands)\t\t\t\t\tReported as:\t\t\t\nSeptember 30 2019\tAmortized Cost\tUnrealized Gain\tUnrealized (Loss)\tFair Value\tCash & Cash Equivalents\tMarketable Securities\tLong-term Investments\tLong- term Restricted Cash\nCash\t2202\t0\t0\t2202\t2202\t0\t0\t0\nLevel I:\t\t\t\t\t\t\t\t\nMoney market funds\t506164\t0\t0\t506164\t499504\t0\t0\t6660\nLevel II:\t\t\t\t\t\t\t\t\nCorporate bonds\t15030\t23\t0\t15053\t0\t8988\t6066\t0\nU.S. treasury securities\t115550\t80\t0\t115630\t0\t105526\t10103\t0\nU.S. government agency securities\t1100\t0\t0\t1100\t0\t1100\t0\t0\nCommercial paper\t27785\t0\t0\t27785\t0\t27785\t0\t0\nSubtotal\t159465\t103\t0\t159568\t0\t143399\t16169\t0\nTotal assets measured at fair value on a recurring basis\t667831\t103\t0\t667934\t501706\t143399\t16169\t6660\n", "q10k_tbl_14": "(in thousands)\t\t\t\t\tReported as:\t\t\t\nDecember 31 2018\tAmortized Cost\tUnrealized Gain\tUnrealized (Loss)\tFair Value\tCash & Cash Equivalents\tMarketable Securities\tLong-term Investments\tLong-term Restricted Cash\nCash\t4151\t0\t0\t4151\t4151\t0\t0\t0\nLevel I:\t\t\t\t\t\t\t\t\nMoney market funds\t23278\t0\t0\t23278\t16907\t0\t0\t6371\nLevel II:\t\t\t\t\t\t\t\t\nCorporate bonds\t17291\t1\t(16)\t17276\t0\t17276\t0\t0\nU.S. treasury securities\t102360\t8\t(20)\t102348\t0\t102348\t0\t0\nU.S. government agency securities\t1099\t0\t0\t1099\t0\t1099\t0\t0\nCommercial paper\t18876\t0\t0\t18876\t3997\t14879\t0\t0\nSubtotal\t139626\t9\t(36)\t139599\t3997\t135602\t0\t0\nTotal assets measured at fair value on a recurring basis\t167055\t9\t(36)\t167028\t25055\t135602\t0\t6371\n", "q10k_tbl_15": "\tSeptember 30 2019\t\n\tFair Value\tReported as Long-Term Liability\n\t(in thousands)\t\nFair value using Level III inputs\t\t\nRedeemable convertible preferred stock warrant liability\t3135\t3135\nReclassification to stockholders' equity (deficit)\t(3135)\t(3135)\nBalance as of September 30 2019\t0\t0\n", "q10k_tbl_16": "\tDecember 31 2018\t\n\tFair Value\tReported as Long-Term Liability\n\t(in thousands)\t\nFair value using Level III inputs\t\t\nRedeemable convertible preferred stock warrant liability\t1618\t1618\nBalance as of December 31 2018\t1618\t1618\n", "q10k_tbl_17": "\tRedeemable Convertible Preferred Stock Warrant Liability\n\t(in thousands)\nBalance as of December 31 2018\t1618\nAddition\t0\nChange in fair value\t1517\nConversion of redeemable convertible preferred stock warrants into Class B common stock warrants\t(3135)\nBalance as of September 30 2019\t0\n", "q10k_tbl_18": "\tSeptember 30 2019\tDecember 31 2018\t\n\t(in thousands)\t\t\t\t\t\t\t\t\nPrepaid expenses\t12305\t\t5581\nDeposits\t2403\t\t2635\nOther\t2190\t\t1157\nTotal prepaid expenses and other current assets\t16898\t\t9373\n", "q10k_tbl_19": "\tSeptember 30 2019\tDecember 31 2018\n\t(in thousands)\t\t\t\t\t\t\t\t\t\t\nProperty and equipment:\t\t\nServers-network infrastructure\t75362\t57089\nBuildings\t13035\t13035\nConstruction in progress\t7690\t14848\nCapitalized internal-use software\t27966\t16344\nOffice and computer equipment\t12033\t6552\nOffice furniture\t5668\t3573\nSoftware\t990\t847\nLeasehold improvements\t8395\t772\nAsset retirement obligation\t231\t49\nGross property and equipment\t151370\t113109\nLess accumulated depreciation and amortization\t(58885)\t(39899)\nTotal property and equipment net\t92485\t73210\n", "q10k_tbl_20": "\tSeptember 30 2019\t\t\n\tGross Carrying Amount\tAccumulated Amortization\tNet Book Value\n\t(in thousands)\t\t\nDeveloped technology\t250\t188\t62\nTotal acquired intangible assets net\t250\t188\t62\n", "q10k_tbl_21": "\tDecember 31 2018\t\t\n\tGross Carrying Amount\tAccumulated Amortization\tNet Book Value\n\t(in thousands)\t\t\nDeveloped technology\t250\t94\t156\nTotal acquired intangible assets net\t250\t94\t156\n", "q10k_tbl_22": "\tSeptember 30 2019\tDecember 31 2018\n\t(in thousands)\t\t\t\t\t\t\t\t\t\t\nAccrued compensation and benefits\t12170\t7075\nAccrued expenses\t4428\t4072\nCustomer refunds and credits\t2772\t2336\nAccrued co-location and bandwidth\t1658\t1119\nIncome taxes payable\t0\t225\nOther\t2093\t872\nTotal accrued expenses and other current liabilities\t23121\t15699\n", "q10k_tbl_23": "\tSeptember 30 2019\tDecember 31 2018\n\t(in thousands)\t\t\t\t\t\t\t\t\t\t\nIndirect tax reserves\t6476\t4137\nDeferred rent\t2367\t1659\nOther\t2150\t908\nTotal other noncurrent liabilities\t10993\t6704\n", "q10k_tbl_24": "\tPayments Due by Period as of September 30 2019\t\t\t\t\t\t\n\tTotal\t2019 (remaining three months)\t2020\t2021\t2022\t2023\tThereafter\n\t(in thousands)\t\t\t\t\t\t\nNon-cancelable:\t\t\t\t\t\t\t\nOpen purchase agreements(1)\t12669\t315\t1887\t1938\t1489\t1373\t5667\nBandwidth and co-location commitments(2)\t36072\t6189\t17802\t8035\t2441\t1237\t368\nOperating lease obligations(3)\t54508\t2928\t12359\t11136\t8620\t5334\t14131\nOther commitments(4)\t37\t37\t0\t0\t0\t0\t0\nTotal\t103286\t9469\t32048\t21109\t12550\t7944\t20166\n", "q10k_tbl_25": "\tBuild-to-Suit Lease\n\t(in thousands)\nYear ending December 31\t\n2019 (remaining three months)\t659\n2020\t2673\n2021\t2753\n2022\t2355\n2023\t0\nTotal minimum lease payments\t8440\n", "q10k_tbl_26": "\tSeptember 17 2019\tDecember 31 2018\nRemaining contractual life (in years)\t1.6\t2.3\nExpected volatility\t38.8%\t39.2%\nRisk-free interest rate\t1.8%\t2.5%\nExpected dividend rate\t0\t0\n", "q10k_tbl_27": "\tSeptember 30 2019\tDecember 31 2018\n\t(in thousands)\t\t\t\t\t\t\t\nConversion of redeemable convertible preferred stock\t0\t165658\nStock options issued and outstanding\t21878\t25087\nRemaining shares available for issuance under the 2010 Plan\t0\t13356\nRemaining shares available for issuance under the 2019 Plan\t29387\t0\nRedeemable convertible preferred stock warrants outstanding\t0\t177\nOutstanding and unsettled RSUs\t6185\t0\nShares available for issuance under the ESPP\t5870\t0\nTotal shares of common stock reserved\t63320\t204278\n", "q10k_tbl_28": "\tStock Options Outstanding\t\t\t\n\t(in thousands except year and per share data)\t\t\t\n\tShares Subject to Options Outstanding\tWeighted- Average Exercise Price per Option\tWeighted- Average Remaining Contractual Terms (in years)\tAggregate Intrinsic Value\nBalances as of December 31 2018\t25087\t2.18\t8.4\t159945\nOptions granted\t394\t9.60\t\t\nOptions exercised\t(2589)\t2.24\t\t21188\nRepurchase of unvested shares\t0\t\t\t\nOptions canceled/forfeited/expired\t(1014)\t2.46\t\t\nBalances as of September 30 2019\t21878\t2.30\t7.8\t355967\nVested and expected to vest as of September 30 2019\t21878\t2.30\t7.8\t355967\nExercisable as of September 30 2019\t21865\t2.30\t7.8\t355755\n", "q10k_tbl_29": "\tNine months ended September 30\t\n\t2019\t2018\nExpected term (in years)\t6.2\t6.5\nExpected volatility\t40.3%\t43.5%\nRisk-free interest rate\t2.3%\t2.9%\nDividend yield\t0\t0\n", "q10k_tbl_30": "\tRSUs\tWeighted-Average Grant Date Fair Value\n\t(in thousands except per share data)\t\t\t\t\t\t\t\nUnvested and outstanding as of December 31 2018\t0\t\nGranted\t6465\t9.74\nVested\t(317)\t8.62\nForfeited\t(280)\t8.70\nUnvested as of September 30 2019\t5868\t9.85\nVested and not yet released\t317\t8.62\nOutstanding as of September 30 2019\t6185\t9.79\n", "q10k_tbl_31": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\n\t2019\t2018\t2019\t2018\n\t(in thousands)\t\t\t\t\t\t\t\t\t\nCost of revenue\t397\t37\t463\t87\nSales and marketing\t4880\t290\t5434\t678\nResearch and development\t7801\t461\t8624\t1078\nGeneral and administrative\t9833\t23648\t10491\t24442\nTotal stock-based compensation expense\t22911\t24436\t25012\t26285\n", "q10k_tbl_32": "\tThree Months Ended September 30\t\t\t\t\tNine Months Ended September 30\t\n\t2019\t\t\t2018\t2019\t\t2018\n\tClass A\tClass B\tCommon\tClass A\tClass B\tCommon\n\t(in thousands except per share data)\t\t\t\t\t\t\t\t\t\t\t\t\nNet loss attributable to common stockholders\t(4573)\t(36280)\t(37989)\t(3588)\t(74085)\t(70477)\nWeighted-average shares used in computing net loss per share attributable to common stockholders basic and diluted\t13215\t104841\t81579\t4453\t91940\t79755\nNet loss per share attributable to common stockholders basic and diluted\t(0.35)\t(0.35)\t(0.47)\t(0.81)\t(0.81)\t(0.88)\n", "q10k_tbl_33": "\tSeptember 30\t\n\t2019\t2018\n\t(in thousands)\t\nRedeemable convertible preferred stock\t0\t165658\nRedeemable convertible preferred stock warrants\t0\t177\nShares subject to repurchase\t6564\t7057\nUnexercised stock options\t21878\t25337\nUnvested restricted stock and RSUs\t5868\t0\nShares issuable pursuant to the ESPP\t412\t0\nTotal\t34722\t198229\n", "q10k_tbl_34": "\tSeptember 30 2019\tDecember 31 2018\n\t(in thousands)\t\t\t\t\t\t\t\nUnited States\t56597\t46012\nRest of the world\t35888\t27198\nTotal property and equipment net\t92485\t73210\n", "q10k_tbl_35": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\n\t2019\t2018\t2019\t2018\n\t(dollars in thousands)\t\t\t\t\t\t\t\t\t\nGross profit\t57908\t38861\t157867\t106594\nGross margin\t78%\t78%\t78%\t78%\nLoss from operations\t(41086)\t(36468)\t(78004)\t(67806)\nNon-GAAP loss from operations\t(18144)\t(11885)\t(52898)\t(41112)\nOperating margin\t(56)%\t(73)%\t(38)%\t(49)%\nNon-GAAP operating margin\t(25)%\t(24)%\t(26)%\t(30)%\nNet cash used in operating activities\t(17786)\t(13912)\t(30343)\t(31011)\nNet cash used in investing activities\t(92829)\t(77874)\t(64982)\t(62270)\nNet cash provided by financing activities\t570216\t165447\t572265\t168610\nFree cash flow\t(33638)\t(22141)\t(72656)\t(49163)\nNet cash provided by (used in) operating activities (as a percentage of revenue)\t(24)%\t(28)%\t(15)%\t(23)%\nFree cash flow margin\t(45)%\t(44)%\t(36)%\t(36)%\nPaying customers\t77057\t61285\t77057\t61285\nPaying customers (> $100000 Annualized Billings)\t475\t277\t475\t277\n", "q10k_tbl_36": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\n\t2019\t2018\t2019\t2018\n\t(dollars in thousands)\t\t\t\t\t\t\t\t\t\nLoss from operations\t(41086)\t(36468)\t(78004)\t(67806)\nAdd:\t\t\t\t\nStock-based compensation expense\t22911\t24436\t25012\t26285\nAmortization of acquired intangible assets\t31\t147\t94\t409\nNon-GAAP loss from operations\t(18144)\t(11885)\t(52898)\t(41112)\nOperating margin\t(56)%\t(73)%\t(38)%\t(49)%\nNon-GAAP operating margin (non-GAAP loss from operations as a percentage of revenue)\t(25)%\t(24)%\t(26)%\t(30)%\n", "q10k_tbl_37": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\n\t2019\t2018\t2019\t2018\n\t(dollars in thousands)\t\t\t\t\t\t\t\t\t\nNet cash provided by (used in) operating activities\t(17786)\t(13912)\t(30343)\t(31011)\nLess: Purchases of property and equipment\t(11991)\t(6200)\t(30981)\t(12507)\nLess: Capitalized internal-use software\t(3861)\t(2029)\t(11332)\t(5645)\nFree cash flow\t(33638)\t(22141)\t(72656)\t(49163)\nNet cash used in investing activities\t(92829)\t(77874)\t(64982)\t(62270)\nNet cash provided by financing activities\t570216\t165447\t572265\t168610\nNet cash used in operating activities (as a percentage of revenue)\t(24)%\t(28)%\t(15)%\t(23)%\nLess: Purchases of property and equipment (as a percentage of revenue)\t(16)%\t(12)%\t(15)%\t(9)%\nLess: Capitalized internal-use software (as a percentage of revenue)\t(5)%\t(4)%\t(6)%\t(4)%\nFree cash flow margin\t(45)%\t(44)%\t(36)%\t(36)%\n", "q10k_tbl_38": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\n\t2019\t2018\t2019\t2018\n\t(dollars in thousands)\t\t\t\t\t\t\t\t\t\nRevenue\t73941\t50070\t203092\t137175\nCost of revenue(1)\t16033\t11209\t45225\t30581\nGross profit\t57908\t38861\t157867\t106594\nOperating expenses:\t\t\t\t\nSales and marketing(1)\t45538\t24462\t112191\t66206\nResearch and development(1)\t27863\t14827\t64380\t39113\nGeneral and administrative(1)\t25593\t36040\t59300\t69081\nTotal operating expenses\t98994\t75329\t235871\t174400\nLoss from operations\t(41086)\t(36468)\t(78004)\t(67806)\nNon-operating income (expense):\t\t\t\t\nInterest income\t1079\t387\t2822\t847\nInterest expense\t(407)\t(251)\t(970)\t(726)\nOther expense net\t(651)\t(1240)\t(1030)\t(1903)\nTotal non-operating income (expense) net\t21\t(1104)\t822\t(1782)\nLoss before income taxes\t(41065)\t(37572)\t(77182)\t(69588)\nProvision for income taxes\t(212)\t417\t491\t889\nNet loss\t(40853)\t(37989)\t(77673)\t(70477)\n", "q10k_tbl_39": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\n\t2019\t2018\t2019\t2018\n\t(dollars in thousands)\t\t\t\t\t\t\t\t\t\nCost of revenue\t397\t37\t463\t87\nSales and marketing\t4880\t290\t5434\t678\nResearch and development\t7801\t461\t8624\t1078\nGeneral and administrative\t9833\t23648\t10491\t24442\nTotal stock-based compensation expense\t22911\t24436\t25012\t26285\n", "q10k_tbl_40": "\tThree Months Ended September 30\t\t\tNine Months Ended September 30\n\t2019\t2018\t2019\t2018\nPercentage of Revenue Data:\t\t\t\t\nRevenue\t100%\t100%\t100%\t100%\nCost of revenue\t22\t22\t22\t22\nGross margin\t78\t78\t78\t78\nOperating expenses:\t\t\t\t\nSales and marketing\t62\t49\t55\t48\nResearch and development\t38\t30\t32\t29\nGeneral and administrative\t34\t72\t29\t50\nTotal operating expenses\t134\t151\t116\t127\nLoss from operations\t(56)\t(73)\t(38)\t(49)\nNon-operating income (expense):\t\t\t\t\nInterest income\t1\t1\t1\t1\nInterest expense\t0\t(1)\t0\t(1)\nOther expense net\t(1)\t(2)\t(1)\t(1)\nTotal non-operating income (expense) net\t0\t(2)\t0\t(1)\nLoss before income taxes\t(56)\t(75)\t(38)\t(50)\nProvision for income taxes\t(1)\t1\t0\t1\nNet loss\t(55)%\t(76)%\t(38)%\t(51)%\n", "q10k_tbl_41": "\tThree Months Ended September 30\t\t\tChange\t\t\tNine Months Ended September 30\t\tChange\n\t2019\t2018\t$\t%\t2019\t2018\t$\t%\n\t(dollars in thousands)\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nRevenue\t73941\t50070\t23871\t48%\t203092\t137175\t65917\t48%\n", "q10k_tbl_42": "\tThree Months Ended September 30\t\t\tChange\t\t\tNine Months Ended September 30\t\tChange\n\t2019\t2018\t$\t%\t2019\t2018\t$\t%\n\t(dollars in thousands)\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nCost of revenue\t16033\t11209\t4824\t43%\t45225\t30581\t14644\t48%\nGross margin\t78%\t78%\t\t\t78%\t78%\t\t\n", "q10k_tbl_43": "\tThree Months Ended September 30\t\t\tChange\t\t\tNine Months Ended September 30\t\tChange\n\t2019\t2018\t$\t%\t2019\t2018\t$\t%\n\t(dollars in thousands)\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nSales and marketing\t45538\t24462\t21076\t86%\t112191\t66206\t45985\t69%\n", "q10k_tbl_44": "\tThree Months Ended September 30\t\t\tChange\t\t\tNine Months Ended September 30\t\tChange\n\t2019\t2018\t$\t%\t2019\t2018\t$\t%\n\t(dollars in thousands)\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nResearch and development\t27863\t14827\t13036\t88%\t64380\t39113\t25267\t65%\n", "q10k_tbl_45": "\tThree Months Ended September 30\t\t\tChange\t\t\tNine Months Ended September 30\t\tChange\n\t2019\t2018\t$\t%\t2019\t2018\t$\t%\n\t(dollars in thousands)\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nGeneral and administrative\t25593\t36040\t(10447)\t(29)%\t59300\t69081\t(9781)\t(14)%\n", "q10k_tbl_46": "\tThree Months Ended September 30\t\t\tChange\t\t\tNine Months Ended September 30\t\tChange\n\t2019\t2018\t$\t%\t2019\t2018\t$\t%\n\t(dollars in thousands)\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nInterest income\t1079\t387\t692\t179%\t2822\t847\t1975\t233%\n", "q10k_tbl_47": "\tThree Months Ended September 30\t\t\tChange\t\t\tNine Months Ended September 30\t\tChange\n\t2019\t2018\t$\t%\t2019\t2018\t$\t%\n\t(dollars in thousands)\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nInterest expense\t(407)\t(251)\t(156)\t62%\t(970)\t(726)\t(244)\t34%\n", "q10k_tbl_48": "\tThree Months Ended September 30\t\t\tChange\t\t\tNine Months Ended September 30\t\tChange\n\t2019\t2018\t$\t%\t2019\t2018\t$\t%\n\t(dollars in thousands)\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\nOther expense net\t(651)\t(1240)\t589\t(48)%\t(1030)\t(1903)\t873\t(46)%\n", "q10k_tbl_49": "\tThree Months Ended September 30\t\t\tChange\t\t\tNine Months Ended September 30\t\tChange\n\t2019\t2018\t$\t%\t2019\t2018\t$\t%\n\t(dollars in thousands)\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\nProvision for (benefit from) income taxes\t(212)\t417\t(629)\t(151)%\t491\t889\t(398)\t(45)%\n", "q10k_tbl_50": "\t\t\tNine Months Ended September 30\n\t2019\t2018\n\t(in thousands)\t\t\nNet cash used in operating activities\t(30343)\t(31011)\nNet cash used in investing activities\t(64982)\t(62270)\nNet cash provided by financing activities\t572265\t168610\n", "q10k_tbl_51": "\tPayments Due by Period as of September 30 2019\t\t\t\t\n\tTotal\tLess than 1 Year\t1-3 Years\t3-5 Years\tMore than 5 Years\n\t(in thousands)\t\t\t\t\nNon-cancelable:\t\t\t\t\t\nOpen purchase agreements(1)\t12669\t315\t3825\t2862\t5667\nBandwidth and co-location commitments(2)\t36072\t6189\t25837\t3678\t368\nOperating lease obligations(3)\t54508\t2928\t23495\t13954\t14131\nOther commitments(4)\t37\t37\t0\t0\t0\nTotal\t103286\t9469\t53157\t20494\t20166\n", "q10k_tbl_52": "\t\tIncorporated by Reference\t\t\t\nExhibit Number\tDescription\tForm\tFile No.\tExhibit\tFiling Date\n3.1*\tAmended and Restated Certificate of Incorporation of the Registrant.\t\t\t\t\n3.2*\tAmended and Restated Bylaws of the Registrant.\t\t\t\t\n4.1\tForm of Class A common stock certificate of the Registrant.\tS-1\t333-233296\t4.1\tAugust 15 2019\n4.2\tAmended and Restated Investors' Rights Agreement by and among the Registrant and certain holders of its capital stock dated as of September 4 2018.\tS-1\t333-233296\t4.2\tAugust 15 2019\n10.1\tForm of Indemnification Agreement between the Registrant and each of its directors and officers.\tS-1/A\t333-233296\t10.1\tSeptember 3 2019\n10.2\t2019 Equity Incentive Plan and related form agreements.\tS-1/A\t333-233296\t10.2\tSeptember 3 2019\n10.3\t2019 Employee Stock Purchase Plan and related form agreements.\tS-1/A\t333-233296\t10.3\tSeptember 3 2019\n10.4\t2019 Executive Incentive Compensation Plan.\tS-1/A\t333-233296\t10.4\tSeptember 3 2019\n10.5\tChange in Control and Severance Policy.\tS-1/A\t333-233296\t10.10\tSeptember 3 2019\n10.6\tOffer Letter between the Registrant and Matthew Prince.\tS-1/A\t333-233296\t10.6\tSeptember 3 2019\n10.7\tOffer Letter between the Registrant and Michelle Zatlyn.\tS-1/A\t333-233296\t10.7\tSeptember 3 2019\n10.8\tOffer Letter between the Registrant and Thomas Seifert.\tS-1/A\t333-233296\t10.8\tSeptember 3 2019\n10.9\tOffer Letter between the Registrant and Douglas Kramer.\tS-1/A\t333-233296\t10.9\tSeptember 3 2019\n31.1*\tCertification of the Chief Executive Officer pursuant to Exchange Act Rule 13a-14 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\t\t\t\t\n31.2*\tCertification of the Chief Financial Officer pursuant to Exchange Act Rule 13a-14 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.\t\t\t\t\n32.1†\tCertification of the Chief Executive Officer and 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\n101.INS*\tXBRL Instance Document\t\t\t\t\n101.SCH*\tXBRL Taxonomy Extension Schema Document\t\t\t\t\n101.CAL*\tXBRL Taxonomy Extension Calculation Linkbase Document\t\t\t\t\n101.DEF*\tXBRL Taxonomy Extension Definition Linkbase Document\t\t\t\t\n101.LAB*\tXBRL Taxonomy Extension Label Linkbase Document\t\t\t\t\n101.PRE*\tXBRL Taxonomy Extension Presentation Linkbase Document\t\t\t\t\n"}{"bs": "q10k_tbl_2", "is": "q10k_tbl_38", "cf": "q10k_tbl_9"}None
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol
Name of Each Exchange on Which Registered
Class A Common Stock, $0.001 par value
NET
The New York Stock Exchange
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, a 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 November 8, 2019, 86,870,214 shares of the registrant's Class A common stock were outstanding and 213,320,072 shares of the registrant's Class B common stock were outstanding.
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, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. 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.
Forward-looking statements contained in this Quarterly Report on Form 10-Q include, but are not limited to, statements about:
•our ability to retain and upgrade paying customers;
•our ability to attract new customers or convert free customers to paying customers;
•our future financial performance, including trends in revenue, costs of revenue, gross profit or gross margin, operating expenses, paying customers, and free cash flow;
•our ability to achieve or maintain profitability;
•the consequences we may face resulting from the activities of our customers and the actions we take in response, including associated theories of liability;
•the demand for our products or for solutions for security, performance, and reliability in general;
•possible harm caused by significant disruption of service, loss or unauthorized access to customers’ content, or the actual or perceived failure of our products to prevent security incidents;
•our ability to compete successfully in competitive markets;
•our ability to respond to rapid technological changes;
•our ability to continue to innovate and develop new products;
•our expectations and management of future growth;
•our ability to maintain existing co-location relationships, ISP partnerships, and other interconnection arrangements around the world;
•our ability to offer high-quality customer support;
•our ability to manage our global operations;
•our expectations of and ability to comply with applicable laws around the world;
•our ability to correctly estimate our tax obligations around the world;
•our ability to attract and retain key personnel and highly qualified personnel;
•our ability to maintain our brand;
•our ability to prevent serious errors or defects across, and to otherwise maintain the uninterrupted operation of, our network;
•our ability to maintain, protect, and enhance our intellectual property; and
•our ability to successfully identify, acquire, and integrate companies and assets.
You should not rely upon forward-looking statements as predictions of future events. 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, and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors described in the section titled “Risk Factors” and elsewhere in this Quarterly Report on Form 10-Q. Readers are urged to carefully review and consider the various disclosures made in this Quarterly Report on Form 10-Q and in other documents we file from time to time with the Securities and Exchange Commission (the SEC) that disclose risks and uncertainties that may affect our business. 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.
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.
Redeemable convertible preferred stock; $0.001 par value; zero and 168,108 shares authorized as of September 30, 2019 and December 31, 2018, respectively; zero and 165,658 shares issued and outstanding with aggregate liquidation preference of zero and $332,041 as of September 30, 2019 and December 31, 2018, respectively
—
331,521
Stockholders’ Equity (Deficit)
Class A common stock; $0.001 par value; 2,250,000 and 550,000 shares authorized as of September 30, 2019 and December 31, 2018, respectively; 86,839 and zero shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively
87
—
Class B common stock; $0.001 par value; 315,000 and 300,000 shares authorized as of September 30, 2019 and December 31, 2018, respectively; 213,308 and 91,542 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively
207
85
Additional paid-in capital
1,013,582
82,345
Accumulated deficit
(273,551)
(195,878)
Accumulated other comprehensive income (loss)
73
(57)
Total stockholders’ equity (deficit)
740,398
(113,505)
Total liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)
CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ EQUITY (DEFICIT)
(in thousands)
(unaudited)
Three Months Ended September 30, 2019
Redeemable convertible preferred stock
Class A common stock
Class B common stock
Additional paid-in capital
Accumulated deficit
Accumulated other comprehensive income (loss)
Total stockholders’ equity (deficit)
Shares
Amount
Shares
Amount
Shares
Amount
Balance as of June 30, 2019
165,658
$
331,521
—
$
—
92,686
$
86
$
87,111
$
(232,698)
$
66
$
(145,435)
Issuance of common stock upon initial public offering, net of underwriting discounts and issuance costs
—
—
40,250
40
—
—
565,001
—
—
565,041
Conversion of redeemable convertible preferred stock to common stock upon initial public offering
(165,658)
(331,521)
31,381
31
134,277
135
331,355
—
—
331,521
Conversion of redeemable convertible preferred stock warrants into common stock warrants and issuance of common stock upon net exercise of common stock warrants
—
—
—
—
174
—
3,135
—
—
3,135
Issuance of common stock upon exercise of stock options
—
—
9
1
1,108
1
1,833
—
—
1,835
Repurchases of unvested common stock
—
—
—
—
(33)
—
—
—
—
—
Issuance of common stock related to early exercised stock options
—
—
—
—
295
—
—
—
—
—
Vesting of shares issued upon early exercise of stock options
—
—
—
—
—
—
951
—
—
951
Conversion of Class B to Class A common stock
—
—
15,199
15
(15,199)
(15)
—
—
—
—
Stock-based compensation
—
—
—
—
—
—
24,196
—
—
24,196
Net loss
—
—
—
—
—
—
—
(40,853)
—
(40,853)
Other comprehensive income (loss)
—
—
—
—
—
—
—
—
7
7
Balance as of September 30, 2019
—
$
—
86,839
$
87
213,308
$
207
$
1,013,582
$
(273,551)
$
73
$
740,398
The accompanying notes are an integral part of these consolidated financial statements.