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Balance Sheet Components | 3 Months Ended
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Mar. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Balance Sheet Components | Balance Sheet Components Accounts Receivable, Net As of March 31, 2020 and December 31, 2019, the Company’s allowance for doubtful accounts was $2.2 million and $0.5 million, respectively. Bad debt expense for the three months ended March 31, 2020 and 2019 was $2.2 and $0.3 million, respectively. For the three months ended March 31, 2020 and 2019, write-off of uncollectible accounts receivable was $0.5 million and zero, respectively. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following:
| March 31, 2020 |  | December 31, 2019 |
| (in thousands) |  |  |
Prepaid expenses | $ | 11,233 |  |  |  | $ | 10,913 |
Deposits | 3,745 |  |  |  | 2,773 |
Other | 3,215 |  |  |  | 3,308 |
Total prepaid expenses and other current assets | $ | 18,193 |  |  |  | $ | 16,994 |
Property and Equipment, Net Property and equipment, net consisted of the following:
| March 31, 2020 |  |  | December 31, 2019
| (in thousands) |  |  |
Property and equipment: |  |  |  |
Servers—network infrastructure | $ | 91,834 |  |  |  | $ | 84,979 |
Buildings | — |  |  |  | 13,035 |
Construction in progress | 10,406 |  |  |  | 8,692 |
Capitalized internal-use software | 36,671 |  |  |  | 31,171 |
Office and computer equipment | 16,725 |  |  |  | 13,528 |
Office furniture | 6,485 |  |  |  | 6,124 |
Software | 1,236 |  |  |  | 1,025 |
Leasehold improvements | 11,625 |  |  |  | 9,870 |
Asset retirement obligation | 429 |  |  |  | 231 |
Gross property and equipment | 175,411 |  |  |  | 168,655 |
Less accumulated depreciation and amortization | (75,237) |  |  |  | (67,189) |
Total property and equipment, net | $ | 100,174 |  |  |  | $ | 101,466 |
In connection with the adoption of ASC 842, the Company derecognized the building asset of $13.0 million as of January 1, 2020, which was initially recorded as a result of build-to-suit lease accounting and reclassified a portion of the balance, $1.6 million, to leasehold improvements. This amount reflects the lessee-owned assets of the construction project and is being depreciated over the remaining lease term. For further details on the adoption of ASC 842, refer to Note 2 to these condensed consolidated financial statements. Depreciation and amortization expense on property and equipment for the three months ended March 31, 2020 and 2019 was $9.9 million and $6.1 million, respectively. This includes amortization expense for capitalized internal-use software which totaled $2.5 million and $1.3 million for the three months ended March 31, 2020 and 2019, respectively. Goodwill As of March 31, 2020 and December 31, 2019, the Company's goodwill was $16.4 million and $4.1 million, respectively. During the three months ended March 31, 2020, the Company recorded $12.3 million of goodwill in connection with the acquisition of S2 Systems Corporation (S2). For further detail on the acquisition, refer to Note 13 to these condensed consolidated financial statements. No goodwill impairments were recorded during the three months ended March 31, 2020 and 2019. Acquired Intangible Assets, Net Acquired intangible assets, net consisted of the following:
| March 31, 2020 |  |  |  |
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value
| (in thousands) |  |  |  |
Developed technology | $ | 5,850 |  |  | $ | 950 |  |  | $ | 4,900 |
Total acquired intangible assets, net | $ | 5,850 |  |  | $ | 950 |  |  | $ | 4,900 |
| December 31, 2019 |  |  |  |
| Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value
| (in thousands) |  |  |  |
Developed technology | $ | 250 |  |  | $ | 219 |  |  | $ | 31 |
Total acquired intangible assets, net | $ | 250 |  |  | $ | 219 |  |  | $ | 31 |
During the three months ended March 31, 2020, the Company recorded $5.6 million of developed technology in connection with the acquisition of S2. For further details on the acquisition, refer to Note 13 to these condensed consolidated financial statements. Amortization of acquired intangible assets for the three months ended March 31, 2020 and 2019 was $0.7 million and zero, respectively. As of March 31, 2020, the estimated future amortization expense of acquired intangible assets was as follows:
| Estimated Amortization
| (in thousands)
Year ending December 31, |
2020 (remaining nine months) | $ | 2,100 |
2021 | 2,800 |
Total | $ | 4,900 |
Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following:
| March 31, 2020 |  |  | December 31, 2019
| (in thousands) |  |  |
Accrued compensation and benefits | $ | 17,307 |  |  |  | $ | 14,970 |
Accrued expenses | 3,941 |  |  |  | 5,331 |
Customer refunds and credits | 1,830 |  |  |  | 3,328 |
Accrued co-location and bandwidth | 2,783 |  |  |  | 2,696 |
Other | 2,011 |  |  |  | 1,989 |
Total accrued expenses and other current liabilities | $ | 27,872 |  |  |  | $ | 28,314 |
Other Noncurrent Liabilities Other noncurrent liabilities consisted of the following:
| March 31, 2020 |  |  | December 31, 2019
| (in thousands) |  |  |
Accrued taxes | $ | 5,123 |  |  |  | $ | 4,862 |
Deferred rent | — |  |  |  | 2,342 |
Other | 3,981 |  |  |  | 2,599 |
Total other noncurrent liabilities | $ | 9,104 |  |  |  | $ | 9,803 |

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- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI http://asc.fasb.org/topic&trid=2122208 + Details
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