Restructuring

3 Months Ended

Mar. 31, 2021

Restructuring and Related Activities [Abstract]

April 2020 Restructuring Plan

In April 2020, the Company announced a restructuring plan to reduce operating expenses and adjust cash flows in light of the ongoing economic challenges resulting from the COVID-19 pandemic and its impact on the Company’s business. As a result of the restructuring plan, which was substantially completed in the second quarter of 2020, the Company recognized a stock-based compensation benefit related to the reversal of previously recognized stock-based compensation expenses for unvested stock awards, primarily related to RSUs granted prior to the effectiveness of its IPO Registration Statement on March 28, 2019 using the accelerated attribution method, of $72.7 million. This was offset by a $22.9 million charge related to the accelerated vesting of certain equity awards for employees who were terminated, resulting in a net stock-based compensation benefit of $49.8 million. Additionally, the Company recognized other restructuring charges including severance and other employee costs of $32.1 million as well as lease termination and other restructuring charges of $3.1 million. As a result of the above, the Company recognized a net restructuring benefit of $14.5 million in the three months ended June 30, 2020.

The following table summarizes the above restructuring related charges (benefits) by line item within the Company’s condensed consolidated statements of operations where they were recorded in the quarter ended June 30, 2020 (in thousands):


	Stock-Based Compensation Benefit		Severance and Other Employee Costs		Lease Termination and Other Costs		Total
Cost of revenue	$	(4,237)	$	2,010	$	1,529	$	(698)
Operation and support	(2,830)		8,281		1,060		6,511
Research and development	(37,082)		11,706		—		(25,376)
Sales and marketing	(1,626)		3,071		—		1,445
General and administrative	(4,031)		7,062		539		3,570
Total	$	(49,806)	$	32,130	$	3,128	$	(14,548)

November 2020 Restructuring Plan

In November 2020, the Company announced an additional restructuring plan to reduce operating expenses and adjust cash flows in light of the ongoing economic challenges resulting from the COVID-19 pandemic and its impact on the Company’s business. As a result of the restructuring plan, which was substantially completed in the fourth quarter of 2020, the Company recognized severance and other employee costs of $1.5 million. This was offset by a stock based compensation benefit of $0.1 million due to the accelerated vesting of certain equity awards for employees who were terminated. As a result, the Company recognized net restructuring costs of $1.4 million in the year ended December 31, 2020.

There were no restructuring related charges recognized in the three months ended March 31, 2021. As of March 31, 2021, the remaining liability for restructuring related costs was immaterial.