�|�Income Taxes
|
|
|
|
|
|
|
|
September 30, 2016
|
December 31, 2015
|
||||||
Cash and cash equivalents:
|
|||||||
Cash
|
$
|
1,953
|
|
$
|
1,703
|
|
|
Money market funds
|
2,347
|
|
2,409
|
|
|||
U.S. government securities
|
900
|
|
597
|
|
|||
U.S. government agency securities
|
705
|
|
145
|
|
|||
Corporate debt securities
|
133
|
|
53
|
|
|||
Total cash and cash equivalents
|
6,038
|
|
4,907
|
|
|||
Marketable securities:
|
|||||||
U.S. government securities
|
7,416
|
|
5,948
|
|
|||
U.S. government agency securities
|
6,738
|
|
4,475
|
|
|||
Corporate debt securities
|
5,948
|
|
3,104
|
|
|||
Total marketable securities
|
20,102
|
|
13,527
|
|
|||
Total cash and cash equivalents, and marketable securities
|
$
|
26,140
|
|
$
|
18,434
|
|
September 30, 2016
|
|||
Due in one year
|
$
|
4,898
|
|
Due in one to five years
|
15,204
|
|
|
Total
|
$
|
20,102
|
|
|
|
|
Fair Value Measurement at
Reporting Date Using
|
||||||||||||||
Description
|
September 30, 2016
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Cash equivalents:
|
||||||||||||||||
Money market funds
|
$
|
2,347
|
|
$
|
2,347
|
|
$
|
—
|
|
$
|
—
|
|
||||
U.S. government securities
|
900
|
|
900
|
|
—
|
|
—
|
|
||||||||
U.S. government agency securities
|
705
|
|
705
|
|
—
|
|
—
|
|
||||||||
Corporate debt securities
|
133
|
|
—
|
|
133
|
|
—
|
|
||||||||
Marketable securities:
|
||||||||||||||||
U.S. government securities
|
7,416
|
|
7,416
|
|
—
|
|
—
|
|
||||||||
U.S. government agency securities
|
6,738
|
|
6,738
|
|
—
|
|
—
|
|
||||||||
Corporate debt securities
|
5,948
|
|
—
|
|
5,948
|
|
—
|
|
||||||||
Total cash equivalents and marketable securities
|
$
|
24,187
|
|
$
|
18,106
|
|
$
|
6,081
|
|
$
|
—
|
|
||||
Accrued expenses and other current liabilities:
|
||||||||||||||||
Contingent consideration liability
|
$
|
263
|
|
$
|
—
|
|
$
|
263
|
|
$
|
—
|
|
|
|
Fair Value Measurement at
Reporting Date Using
|
||||||||||||||
Description
|
December 31, 2015
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Cash equivalents:
|
||||||||||||||||
Money market funds
|
$
|
2,409
|
|
$
|
2,409
|
|
$
|
—
|
|
$
|
—
|
|
||||
U.S. government securities
|
597
|
|
597
|
|
—
|
|
—
|
|
||||||||
U.S. government agency securities
|
145
|
|
145
|
|
—
|
|
—
|
|
||||||||
Corporate debt securities
|
53
|
|
—
|
|
53
|
|
—
|
|
||||||||
Marketable securities:
|
||||||||||||||||
U.S. government securities
|
5,948
|
|
5,948
|
|
—
|
|
—
|
|
||||||||
U.S. government agency securities
|
4,475
|
|
4,475
|
|
—
|
|
—
|
|
||||||||
Corporate debt securities
|
3,104
|
|
—
|
|
3,104
|
|
—
|
|
||||||||
Total cash equivalents and marketable securities
|
$
|
16,731
|
|
$
|
13,574
|
|
$
|
3,157
|
|
$
|
—
|
|
||||
Other liabilities:
|
||||||||||||||||
Contingent consideration liability
|
$
|
260
|
|
$
|
—
|
|
$
|
—
|
|
$
|
260
|
|
|
September 30, 2016 |
December 31, 2015 |
||||||
Land
|
$
|
692
|
|
$
|
596
|
|
|
Buildings
|
2,687
|
|
2,273
|
|
|||
Leasehold improvements
|
474
|
|
447
|
|
|||
Network equipment
|
4,734
|
|
3,633
|
|
|||
Computer software, office equipment and other
|
351
|
|
248
|
|
|||
Construction in progress
|
1,840
|
|
622
|
|
|||
Total
|
10,778
|
|
7,819
|
|
|||
Less: Accumulated depreciation
|
(2,879
|
)
|
(2,132
|
)
|
|||
Property and equipment, net
|
$
|
7,899
|
|
$
|
5,687
|
|
|
Balance as of December 31, 2015
|
$
|
18,026
|
|
Goodwill acquired
|
56
|
|
|
Effect of currency translation adjustment
|
3
|
|
|
Balance as of September 30, 2016
|
$
|
18,085
|
|
September 30, 2016
|
December 31, 2015
|
||||||||||||||||||||||||
Weighted-Average Remaining Useful Lives (in years)
|
Gross Carrying Amount
|
Accumulated Amortization
|
Net Carrying Amount
|
Gross Carrying Amount
|
Accumulated Amortization
|
Net Carrying Amount
|
|||||||||||||||||||
Finite-lived intangible assets:
|
|||||||||||||||||||||||||
Acquired users
|
5.0
|
$
|
2,056
|
|
$
|
(604
|
)
|
$
|
1,452
|
|
$
|
2,056
|
|
$
|
(382
|
)
|
$
|
1,674
|
|
||||||
Acquired technology
|
3.8
|
915
|
|
(462
|
)
|
453
|
|
831
|
|
(310
|
)
|
521
|
|
||||||||||||
Acquired patents
|
6.1
|
785
|
|
(399
|
)
|
386
|
|
785
|
|
(333
|
)
|
452
|
|
||||||||||||
Trade names
|
3.4
|
629
|
|
(265
|
)
|
364
|
|
629
|
|
(163
|
)
|
466
|
|
||||||||||||
Other
|
3.5
|
162
|
|
(115
|
)
|
47
|
|
162
|
|
(89
|
)
|
73
|
|
||||||||||||
Total finite-lived intangible assets
|
4.7
|
$
|
4,547
|
|
$
|
(1,845
|
)
|
$
|
2,702
|
|
$
|
4,463
|
|
$
|
(1,277
|
)
|
$
|
3,186
|
|
||||||
Indefinite-lived intangible assets:
|
|||||||||||||||||||||||||
In-process research and development (IPR&D)
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
60
|
|
$
|
—
|
|
$
|
60
|
|
|||||||
Total intangible assets
|
$
|
4,547
|
|
$
|
(1,845
|
)
|
$
|
2,702
|
|
$
|
4,523
|
|
$
|
(1,277
|
)
|
$
|
3,246
|
|
The remainder of 2016
|
$
|
182
|
|
2017
|
681
|
|
|
2018
|
614
|
|
|
2019
|
522
|
|
|
2020
|
357
|
|
|
Thereafter
|
346
|
|
|
Total
|
$
|
2,702
|
|
|
|
|
|
Shares Subject to Options Outstanding
|
|||||||||||
|
Number of
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term
|
Aggregate
Intrinsic
Value(1)
|
||||||||
|
(in thousands)
|
|
(in years)
|
(in millions)
|
||||||||
Balance as of December 31, 2015
|
8,443
|
|
$
|
7.10
|
|
|||||||
Stock options exercised
|
(2,127
|
)
|
5.21
|
|
||||||||
Balance as of September 30, 2016
|
6,316
|
|
$
|
7.74
|
|
3.1
|
$
|
761
|
|
|||
Stock options vested and expected to vest as of September 30, 2016
|
6,315
|
|
$
|
7.74
|
|
3.1
|
$
|
761
|
|
|||
Stock options exercisable as of September 30, 2016
|
4,827
|
|
$
|
5.99
|
|
2.9
|
$
|
590
|
|
(1)
|
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the official closing price of our Class A common stock of $128.27, as reported on the NASDAQ Global Select Market on September 30, 2016.
|
Unvested RSUs(1)
|
||||||
Number of Shares
|
Weighted Average Grant Date Fair Value
|
|||||
(in thousands)
|
||||||
Unvested at December 31, 2015
|
116,409
|
|
$
|
65.95
|
|
|
Granted
|
26,264
|
|
112.08
|
|
||
Vested
|
(33,820
|
)
|
58.27
|
|
||
Forfeited
|
(4,351
|
)
|
73.91
|
|
||
Unvested at September 30, 2016
|
104,502
|
|
$
|
79.69
|
|
(1)
|
Unvested shares include inducement awards issued in connection with an acquisition in 2014 and are subject to the terms, restrictions, and conditions of separate non-plan RSU award agreements.
|
|
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||
|
2016
|
2015
|
2016
|
2015
|
|||||||||||
Revenue:
|
|||||||||||||||
United States
|
$
|
3,184
|
|
$
|
2,166
|
|
$
|
8,545
|
|
$
|
5,699
|
|
|||
Rest of the world (1)
|
3,827
|
|
2,335
|
|
10,284
|
|
6,388
|
|
|||||||
Total revenue
|
$
|
7,011
|
|
$
|
4,501
|
|
$
|
18,829
|
|
$
|
12,087
|
|
(1)
|
No individual country, other than disclosed above, exceeded 10% of our total revenue for any period presented.
|
September 30, 2016 |
December 31, 2015 |
||||||
Property and equipment, net:
|
|||||||
United States
|
$
|
6,239
|
|
$
|
4,498
|
|
|
Rest of the world (1)
|
1,660
|
|
1,189
|
|
|||
Total property and equipment, net
|
$
|
7,899
|
|
$
|
5,687
|
|
(1)
|
As of September 30, 2016, property and equipment, net in Sweden no longer exceeded 10% of our total property and equipment, net. As of December 31, 2015, such balance was $713 million. Other than disclosed, no individual country exceeded 10% of our total property and equipment, net for any period presented.
|
|
|
September 30, 2016
|
December 31, 2015
|
||||||
Cash and cash equivalents:
|
|||||||
Cash
|
$
|
1,953
|
|
$
|
1,703
|
|
|
Money market funds
|
2,347
|
|
2,409
|
|
|||
U.S. government securities
|
900
|
|
597
|
|
|||
U.S. government agency securities
|
705
|
|
145
|
|
|||
Corporate debt securities
|
133
|
|
53
|
|
|||
Total cash and cash equivalents
|
6,038
|
|
4,907
|
|
|||
Marketable securities:
|
|||||||
U.S. government securities
|
7,416
|
|
5,948
|
|
|||
U.S. government agency securities
|
6,738
|
|
4,475
|
|
|||
Corporate debt securities
|
5,948
|
|
3,104
|
|
|||
Total marketable securities
|
20,102
|
|
13,527
|
|
|||
Total cash and cash equivalents, and marketable securities
|
$
|
26,140
|
|
$
|
18,434
|
|
September 30, 2016
|
|||
Due in one year
|
$
|
4,898
|
|
Due in one to five years
|
15,204
|
|
|
Total
|
$
|
20,102
|
|
|
|
|
Fair Value Measurement at
Reporting Date Using
|
||||||||||||||
Description
|
September 30, 2016
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Cash equivalents:
|
||||||||||||||||
Money market funds
|
$
|
2,347
|
|
$
|
2,347
|
|
$
|
—
|
|
$
|
—
|
|
||||
U.S. government securities
|
900
|
|
900
|
|
—
|
|
—
|
|
||||||||
U.S. government agency securities
|
705
|
|
705
|
|
—
|
|
—
|
|
||||||||
Corporate debt securities
|
133
|
|
—
|
|
133
|
|
—
|
|
||||||||
Marketable securities:
|
||||||||||||||||
U.S. government securities
|
7,416
|
|
7,416
|
|
—
|
|
—
|
|
||||||||
U.S. government agency securities
|
6,738
|
|
6,738
|
|
—
|
|
—
|
|
||||||||
Corporate debt securities
|
5,948
|
|
—
|
|
5,948
|
|
—
|
|
||||||||
Total cash equivalents and marketable securities
|
$
|
24,187
|
|
$
|
18,106
|
|
$
|
6,081
|
|
$
|
—
|
|
||||
Accrued expenses and other current liabilities:
|
||||||||||||||||
Contingent consideration liability
|
$
|
263
|
|
$
|
—
|
|
$
|
263
|
|
$
|
—
|
|
|
|
Fair Value Measurement at
Reporting Date Using
|
||||||||||||||
Description
|
December 31, 2015
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
Cash equivalents:
|
||||||||||||||||
Money market funds
|
$
|
2,409
|
|
$
|
2,409
|
|
$
|
—
|
|
$
|
—
|
|
||||
U.S. government securities
|
597
|
|
597
|
|
—
|
|
—
|
|
||||||||
U.S. government agency securities
|
145
|
|
145
|
|
—
|
|
—
|
|
||||||||
Corporate debt securities
|
53
|
|
—
|
|
53
|
|
—
|
|
||||||||
Marketable securities:
|
||||||||||||||||
U.S. government securities
|
5,948
|
|
5,948
|
|
—
|
|
—
|
|
||||||||
U.S. government agency securities
|
4,475
|
|
4,475
|
|
—
|
|
—
|
|
||||||||
Corporate debt securities
|
3,104
|
|
—
|
|
3,104
|
|
—
|
|
||||||||
Total cash equivalents and marketable securities
|
$
|
16,731
|
|
$
|
13,574
|
|
$
|
3,157
|
|
$
|
—
|
|
||||
Other liabilities:
|
||||||||||||||||
Contingent consideration liability
|
$
|
260
|
|
$
|
—
|
|
$
|
—
|
|
$
|
260
|
|
|
September 30, 2016 |
December 31, 2015 |
||||||
Land
|
$
|
692
|
|
$
|
596
|
|
|
Buildings
|
2,687
|
|
2,273
|
|
|||
Leasehold improvements
|
474
|
|
447
|
|
|||
Network equipment
|
4,734
|
|
3,633
|
|
|||
Computer software, office equipment and other
|
351
|
|
248
|
|
|||
Construction in progress
|
1,840
|
|
622
|
|
|||
Total
|
10,778
|
|
7,819
|
|
|||
Less: Accumulated depreciation
|
(2,879
|
)
|
(2,132
|
)
|
|||
Property and equipment, net
|
$
|
7,899
|
|
$
|
5,687
|
|
|
Balance as of December 31, 2015
|
$
|
18,026
|
|
Goodwill acquired
|
56
|
|
|
Effect of currency translation adjustment
|
3
|
|
|
Balance as of September 30, 2016
|
$
|
18,085
|
|
September 30, 2016
|
December 31, 2015
|
||||||||||||||||||||||||
Weighted-Average Remaining Useful Lives (in years)
|
Gross Carrying Amount
|
Accumulated Amortization
|
Net Carrying Amount
|
Gross Carrying Amount
|
Accumulated Amortization
|
Net Carrying Amount
|
|||||||||||||||||||
Finite-lived intangible assets:
|
|||||||||||||||||||||||||
Acquired users
|
5.0
|
$
|
2,056
|
|
$
|
(604
|
)
|
$
|
1,452
|
|
$
|
2,056
|
|
$
|
(382
|
)
|
$
|
1,674
|
|
||||||
Acquired technology
|
3.8
|
915
|
|
(462
|
)
|
453
|
|
831
|
|
(310
|
)
|
521
|
|
||||||||||||
Acquired patents
|
6.1
|
785
|
|
(399
|
)
|
386
|
|
785
|
|
(333
|
)
|
452
|
|
||||||||||||
Trade names
|
3.4
|
629
|
|
(265
|
)
|
364
|
|
629
|
|
(163
|
)
|
466
|
|
||||||||||||
Other
|
3.5
|
162
|
|
(115
|
)
|
47
|
|
162
|
|
(89
|
)
|
73
|
|
||||||||||||
Total finite-lived intangible assets
|
4.7
|
$
|
4,547
|
|
$
|
(1,845
|
)
|
$
|
2,702
|
|
$
|
4,463
|
|
$
|
(1,277
|
)
|
$
|
3,186
|
|
||||||
Indefinite-lived intangible assets:
|
|||||||||||||||||||||||||
In-process research and development (IPR&D)
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
60
|
|
$
|
—
|
|
$
|
60
|
|
|||||||
Total intangible assets
|
$
|
4,547
|
|
$
|
(1,845
|
)
|
$
|
2,702
|
|
$
|
4,523
|
|
$
|
(1,277
|
)
|
$
|
3,246
|
|
September 30, 2016
|
December 31, 2015
|
||||||||||||||||||||||||
Weighted-Average Remaining Useful Lives (in years)
|
Gross Carrying Amount
|
Accumulated Amortization
|
Net Carrying Amount
|
Gross Carrying Amount
|
Accumulated Amortization
|
Net Carrying Amount
|
|||||||||||||||||||
Finite-lived intangible assets:
|
|||||||||||||||||||||||||
Acquired users
|
5.0
|
$
|
2,056
|
|
$
|
(604
|
)
|
$
|
1,452
|
|
$
|
2,056
|
|
$
|
(382
|
)
|
$
|
1,674
|
|
||||||
Acquired technology
|
3.8
|
915
|
|
(462
|
)
|
453
|
|
831
|
|
(310
|
)
|
521
|
|
||||||||||||
Acquired patents
|
6.1
|
785
|
|
(399
|
)
|
386
|
|
785
|
|
(333
|
)
|
452
|
|
||||||||||||
Trade names
|
3.4
|
629
|
|
(265
|
)
|
364
|
|
629
|
|
(163
|
)
|
466
|
|
||||||||||||
Other
|
3.5
|
162
|
|
(115
|
)
|
47
|
|
162
|
|
(89
|
)
|
73
|
|
||||||||||||
Total finite-lived intangible assets
|
4.7
|
$
|
4,547
|
|
$
|
(1,845
|
)
|
$
|
2,702
|
|
$
|
4,463
|
|
$
|
(1,277
|
)
|
$
|
3,186
|
|
||||||
Indefinite-lived intangible assets:
|
|||||||||||||||||||||||||
In-process research and development (IPR&D)
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
60
|
|
$
|
—
|
|
$
|
60
|
|
|||||||
Total intangible assets
|
$
|
4,547
|
|
$
|
(1,845
|
)
|
$
|
2,702
|
|
$
|
4,523
|
|
$
|
(1,277
|
)
|
$
|
3,246
|
|
The remainder of 2016
|
$
|
182
|
|
2017
|
681
|
|
|
2018
|
614
|
|
|
2019
|
522
|
|
|
2020
|
357
|
|
|
Thereafter
|
346
|
|
|
Total
|
$
|
2,702
|
|
|
|
Shares Subject to Options Outstanding
|
|||||||||||
|
Number of
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term
|
Aggregate
Intrinsic
Value(1)
|
||||||||
|
(in thousands)
|
|
(in years)
|
(in millions)
|
||||||||
Balance as of December 31, 2015
|
8,443
|
|
$
|
7.10
|
|
|||||||
Stock options exercised
|
(2,127
|
)
|
5.21
|
|
||||||||
Balance as of September 30, 2016
|
6,316
|
|
$
|
7.74
|
|
3.1
|
$
|
761
|
|
|||
Stock options vested and expected to vest as of September 30, 2016
|
6,315
|
|
$
|
7.74
|
|
3.1
|
$
|
761
|
|
|||
Stock options exercisable as of September 30, 2016
|
4,827
|
|
$
|
5.99
|
|
2.9
|
$
|
590
|
|
(1)
|
The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the official closing price of our Class A common stock of $128.27, as reported on the NASDAQ Global Select Market on September 30, 2016.
|
Unvested RSUs(1)
|
||||||
Number of Shares
|
Weighted Average Grant Date Fair Value
|
|||||
(in thousands)
|
||||||
Unvested at December 31, 2015
|
116,409
|
|
$
|
65.95
|
|
|
Granted
|
26,264
|
|
112.08
|
|
||
Vested
|
(33,820
|
)
|
58.27
|
|
||
Forfeited
|
(4,351
|
)
|
73.91
|
|
||
Unvested at September 30, 2016
|
104,502
|
|
$
|
79.69
|
|
(1)
|
Unvested shares include inducement awards issued in connection with an acquisition in 2014 and are subject to the terms, restrictions, and conditions of separate non-plan RSU award agreements.
|
|
|
Three Months Ended September 30,
|
Nine Months Ended September 30,
|
|||||||||||||
|
2016
|
2015
|
2016
|
2015
|
|||||||||||
Revenue:
|
|||||||||||||||
United States
|
$
|
3,184
|
|
$
|
2,166
|
|
$
|
8,545
|
|
$
|
5,699
|
|
|||
Rest of the world (1)
|
3,827
|
|
2,335
|
|
10,284
|
|
6,388
|
|
|||||||
Total revenue
|
$
|
7,011
|
|
$
|
4,501
|
|
$
|
18,829
|
|
$
|
12,087
|
|
(1)
|
No individual country, other than disclosed above, exceeded 10% of our total revenue for any period presented.
|
September 30, 2016 |
December 31, 2015 |
||||||
Property and equipment, net:
|
|||||||
United States
|
$
|
6,239
|
|
$
|
4,498
|
|
|
Rest of the world (1)
|
1,660
|
|
1,189
|
|
|||
Total property and equipment, net
|
$
|
7,899
|
|
$
|
5,687
|
|
(1)
|
As of September 30, 2016, property and equipment, net in Sweden no longer exceeded 10% of our total property and equipment, net. As of December 31, 2015, such balance was $713 million. Other than disclosed, no individual country exceeded 10% of our total property and equipment, net for any period presented.
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
||||||||||||||||||||||||||||||||||||||||
|