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Summary of Significant Accounting Policies (Tables) | 12 Months Ended
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Dec. 31, 2019
Summary of Revenue from Contracts with Customers by Revenue | The following table summarizes revenue from contracts with customers by revenue source for the years ended December 31, 2019, 2018 and 2017.
|  | 2019 |  |  | 2018 |  |  | 2017 |
Revenue by Revenue Stream |  |  |  |  |  |  |  |  |  |  |  |
Marketplace subscription revenue |  | $ | 526,043 |  |  | $ | 405,780 |  |  | $ | 282,664 |
Advertising and other revenue |  |  | 62,873 |  |  |  | 48,306 |  |  |  | 34,197 |
Total |  | $ | 588,916 |  |  | $ | 454,086 |  |  | $ | 316,861 |
Summary of Opening and Closing Balances of Receivables and Contract Assets From Contracts with Customers | The following tables summarize the opening and closing balances of receivables and contract assets from contracts with customers as of January 1, 2018, December 31, 2018 and December 31, 2019.
|  | Accounts Receivable, net |  |  | Contract Assets (current) |  |  | Contract Assets (non-current) |
Balance at January 1, 2018 |  | $ | 13,390 |  |  | $ | 1,424 |  |  | $ | 1,782 |
Balance at December 31, 2018 |  |  | 13,614 |  |  |  | 5,253 |  |  |  | 7,252 |
Balance at December 31, 2019 |  |  | 22,124 |  |  |  | 9,544 |  |  |  | 10,514 |
Summary of Changes in Allowance for Doubtful Accounts | Below is a summary of the changes in the Company’s allowance for doubtful accounts for the years ended December 31, 2019, 2018, and 2017:
|  | Balance at Beginning of Period |  |  | Provision |  |  | Write–offs, net of recoveries |  |  | Balance at End of Period |
Year ended December 31, 2019 |  | $ | 479 |  |  | $ | 1,091 |  |  | $ | (1,330 | ) |  | $ | 240 |
Year ended December 31, 2018 |  |  | 494 |  |  |  | 1,680 |  |  |  | (1,695 | ) |  |  | 479 |
Year ended December 31, 2017 |  |  | 164 |  |  |  | 1,117 |  |  |  | (787 | ) |  |  | 494 |
Schedule of Estimated Useful Lives of Property and Equipment | The estimated useful lives of the Company’s property and equipment are as follows:
|  | Estimated Useful Life (In Years)
Capitalized equipment |  | 3
Capitalized software |  | 3
Capitalized website development |  | 3
Furniture and fixtures |  | 5
Leasehold improvements |  | Lesser of asset life or lease term
Summary of Future Minimum Lease Payments | Future minimum lease payments as of December 31, 2019 are as follows:
Year Ending December 31, |  | Operating Lease Commitments |
2020 |  | $ | 12,201 |
2021 |  |  | 13,088 |
2022 |  |  | 13,016 |
2023 |  |  | 9,858 |
2024 |  |  | 8,835 |
Thereafter |  |  | 34,423 |
Total lease payments |  |  | 91,421 |
Less imputed interest |  |  | (21,822 | )
Total |  | $ | 69,599 |
ASC 606 |
Summary of Impact of New Revenue Guidance on Financial Statement | As a result of applying the modified retrospective method to adopt the new revenue guidance, the following adjustments were made on the consolidated balance sheet as of January 1, 2018.
|  | As Reported |  |  | Adjustments |  |  | As Adjusted |
|  | December 31, 2017 |  |  | Marketplace Subscription Revenue |  |  | Costs to Obtain a Contract |  |  | January 1, 2018 |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 87,709 |  |  |  |  |  |  |  |  |  |  | $ | 87,709 |
Investments |  |  | 50,000 |  |  |  |  |  |  |  |  |  |  |  | 50,000 |
Accounts receivable, net |  |  | 12,577 |  |  |  | 813 |  |  |  |  |  |  |  | 13,390 |
Prepaid expenses and prepaid income taxes |  |  | 5,313 |  |  |  |  |  |  |  |  |  |  |  | 5,313 |
Deferred contract costs |  |  | — |  |  |  |  |  |  |  | 1,424 |  |  |  | 1,424 |
Other current assets |  |  | 1,605 |  |  |  |  |  |  |  |  |  |  |  | 1,605 |
Restricted cash |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Total current assets |  |  | 157,204 |  |  |  | 813 |  |  |  | 1,424 |  |  |  | 159,441 |
Property and equipment, net |  |  | 16,563 |  |  |  |  |  |  |  |  |  |  |  | 16,563 |
Restricted cash |  |  | 1,843 |  |  |  |  |  |  |  |  |  |  |  | 1,843 |
Deferred tax assets |  |  | 825 |  |  |  | (190 | ) |  |  | (635 | ) |  |  | — |
Deferred contract costs, net of current portion |  |  | — |  |  |  |  |  |  |  | 1,783 |  |  |  | 1,783 |
Other long–term assets |  |  | 159 |  |  |  |  |  |  |  |  |  |  |  | 159 |
Total assets |  | $ | 176,594 |  |  | $ | 623 |  |  | $ | 2,572 |  |  | $ | 179,789 |
Liabilities and stockholders’ equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  | $ | 23,908 |  |  |  |  |  |  |  |  |  |  | $ | 23,908 |
Accrued expenses, accrued income taxes and other current liabilities |  |  | 13,588 |  |  |  |  |  |  |  |  |  |  |  | 13,588 |
Deferred revenue |  |  | 4,305 |  |  |  |  |  |  |  |  |  |  |  | 4,305 |
Deferred tax liabilities |  |  | — |  |  |  |  |  |  |  | 153 |  |  |  | 153 |
Deferred rent |  |  | 1,165 |  |  |  |  |  |  |  |  |  |  |  | 1,165 |
Total current liabilities |  |  | 42,966 |  |  |  | — |  |  |  | 153 |  |  |  | 43,119 |
Deferred rent, net of current portion |  |  | 5,648 |  |  |  |  |  |  |  |  |  |  |  | 5,648 |
Other non–current liabilities |  |  | 955 |  |  |  |  |  |  |  |  |  |  |  | 955 |
Total liabilities |  |  | 49,569 |  |  |  | — |  |  |  | 153 |  |  |  | 49,722 |
Commitments and contingencies |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Class A common stock |  |  | 78 |  |  |  |  |  |  |  |  |  |  |  | 78 |
Class B common stock |  |  | 28 |  |  |  |  |  |  |  |  |  |  |  | 28 |
Additional paid–in capital |  |  | 185,190 |  |  |  |  |  |  |  |  |  |  |  | 185,190 |
Accumulated deficit |  |  | (58,499 | ) |  |  | 623 |  |  |  | 2,419 |  |  |  | (55,457 | )
Accumulated other comprehensive income |  |  | 228 |  |  |  |  |  |  |  |  |  |  |  | 228 |
Total stockholders’ equity |  |  | 127,025 |  |  |  | 623 |  |  |  | 2,419 |  |  |  | 130,067 |
Total liabilities and stockholders’ equity |  | $ | 176,594 |  |  | $ | 623 |  |  | $ | 2,572 |  |  | $ | 179,789 |
The following tables compare the reported consolidated balance sheet, statement of operations and cash flows, as of and for the year ended December 31, 2018, to the pro-forma amounts had the previous guidance been in effect.
|  | As of December 31, 2018 |
Balance Sheet |  | As Reported |  |  | Marketplace Subscription Revenue |  |  | Costs to Obtain a Contract |  |  | Pro forma as if the previous accounting guidance was in effect |
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 34,887 |  |  |  |  |  |  |  |  |  |  | $ | 34,887 |
Investments |  |  | 122,800 |  |  |  |  |  |  |  |  |  |  |  | 122,800 |
Accounts receivable, net |  |  | 13,614 |  |  |  | 939 |  |  |  |  |  |  |  | 12,675 |
Prepaid income taxes and prepaid income taxes |  |  | 10,144 |  |  |  |  |  |  |  |  |  |  |  | 10,144 |
Deferred contract costs |  |  | 5,253 |  |  |  |  |  |  |  | 5,253 |  |  |  | — |
Other current assets |  |  | 7,410 |  |  |  |  |  |  |  |  |  |  |  | 7,410 |
Restricted cash |  |  | 750 |  |  |  |  |  |  |  |  |  |  |  | 750 |
Total current assets |  |  | 194,858 |  |  |  | 939 |  |  |  | 5,253 |  |  |  | 188,666 |
Property and equipment, net |  |  | 24,269 |  |  |  |  |  |  |  |  |  |  |  | 24,269 |
Restricted cash |  |  | 1,921 |  |  |  |  |  |  |  |  |  |  |  | 1,921 |
Deferred tax assets |  |  | 38,886 |  |  |  | (227 | ) |  |  | (3,187 | ) |  |  | 42,300 |
Deferred contract costs, net of current portion |  |  | 7,252 |  |  |  |  |  |  |  | 7,252 |  |  |  | — |
Other long–term assets |  |  | 1,104 |  |  |  |  |  |  |  |  |  |  |  | 1,104 |
Total assets |  | $ | 268,290 |  |  | $ | 712 |  |  | $ | 9,318 |  |  | $ | 258,260 |
Liabilities and stockholders’ equity |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable |  | $ | 34,345 |  |  |  |  |  |  |  |  |  |  | $ | 34,345 |
Accrued expenses, accrued income taxes and other current liabilities |  |  | 18,654 |  |  |  |  |  |  |  |  |  |  |  | 18,654 |
Deferred revenue |  |  | 8,811 |  |  |  |  |  |  |  |  |  |  |  | 8,811 |
Deferred rent |  |  | 1,693 |  |  |  |  |  |  |  |  |  |  |  | 1,693 |
Total current liabilities |  |  | 63,503 |  |  |  | — |  |  |  | — |  |  |  | 63,503 |
Deferred rent, net of current portion |  |  | 9,395 |  |  |  |  |  |  |  |  |  |  |  | 9,395 |
Other non–current liabilities |  |  | 1,281 |  |  |  |  |  |  |  |  |  |  |  | 1,281 |
Total liabilities |  |  | 74,179 |  |  |  | — |  |  |  | — |  |  |  | 74,179 |
Commitments and contingencies |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stockholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred stock |  |  | — |  |  |  |  |  |  |  |  |  |  |  | — |
Class A common stock |  |  | 90 |  |  |  |  |  |  |  |  |  |  |  | 90 |
Class B common stock |  |  | 21 |  |  |  |  |  |  |  |  |  |  |  | 21 |
Additional paid–in capital |  |  | 184,216 |  |  |  |  |  |  |  |  |  |  |  | 184,216 |
Retained earnings (accumulated deficit) |  |  | 9,713 |  |  |  | 712 |  |  |  | 9,318 |  |  |  | (317 | )
Accumulated other comprehensive income |  |  | 71 |  |  |  |  |  |  |  |  |  |  |  | 71 |
Total stockholders’ equity |  |  | 194,111 |  |  |  | 712 |  |  |  | 9,318 |  |  |  | 184,081 |
Total liabilities and stockholders’ equity |  | $ | 268,290 |  |  | $ | 712 |  |  | $ | 9,318 |  |  | $ | 258,260 |
The following summarizes the significant changes on the Company’s consolidated statement of operations for the year ended December 31, 2018 as a result of the adoption of ASC 606 on January 1, 2018 compared to the pro-forma amounts had the Company continued to recognize revenue under ASC 605.
|  | Year Ended December 31, 2018 |
Statement of Operations |  | As Reported |  |  | Marketplace Subscription Revenue |  |  | Costs to Obtain a Contract |  |  | Pro forma as if the previous accounting guidance was in effect |
Revenue |  | $ | 454,086 |  |  | $ | 126 |  |  |  |  |  |  | $ | 453,960 |
Cost of revenue |  |  | 24,811 |  |  |  |  |  |  |  |  |  |  |  | 24,811 |
Gross profit |  |  | 429,275 |  |  |  | 126 |  |  |  | — |  |  |  | 429,149 |
Operating expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Sales and marketing |  |  | 315,939 |  |  |  |  |  |  |  | (9,298 | ) |  |  | 325,237 |
Product, technology, and development |  |  | 47,866 |  |  |  |  |  |  |  |  |  |  |  | 47,866 |
General and administrative |  |  | 39,475 |  |  |  |  |  |  |  |  |  |  |  | 39,475 |
Depreciation and amortization |  |  | 2,804 |  |  |  |  |  |  |  |  |  |  |  | 2,804 |
Total operating expenses |  |  | 406,084 |  |  |  | — |  |  |  | (9,298 | ) |  |  | 415,382 |
Income from operations |  |  | 23,191 |  |  |  | 126 |  |  |  | 9,298 |  |  |  | 13,767 |
Other income, net: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income |  |  | 2,283 |  |  |  |  |  |  |  |  |  |  |  | 2,283 |
Other income (expense) |  |  | 10 |  |  |  |  |  |  |  |  |  |  |  | 10 |
Total other income, net |  |  | 2,293 |  |  |  | — |  |  |  | — |  |  |  | 2,293 |
Income before income taxes |  |  | 25,484 |  |  |  | 126 |  |  |  | 9,298 |  |  |  | 16,060 |
Provision for (Benefit from) income taxes |  |  | (39,686 | ) |  |  | 37 |  |  |  | 2,399 |  |  |  | (42,122 | )
Net income |  | $ | 65,170 |  |  | $ | 89 |  |  | $ | 6,899 |  |  | $ | 58,182 |
Basic |  | $ | 0.60 |  |  | $ | — |  |  | $ | 0.07 |  |  | $ | 0.53 |
Diluted |  | $ | 0.57 |  |  | $ | — |  |  | $ | 0.06 |  |  | $ | 0.51 |
The following summarizes the significant changes on the Company’s consolidated statement of cash flows for the year ended December 31, 2018 as a result of the adoption of ASC 606 on January 1, 2018 compared to the pro-forma amounts had the Company continued to recognize revenue under ASC 605.
|  | Year Ended December 31, 2018 |
Statement of Cash Flows |  | As Reported |  |  | Marketplace Subscription Revenue |  |  | Costs to Obtain a Contract |  |  | Pro forma as if the previous accounting guidance was in effect |
Operating Activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 65,170 |  |  | $ | 89 |  |  | $ | 6,899 |  |  | $ | 58,182 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 5,029 |  |  |  |  |  |  |  |  |  |  |  | 5,029 |
Currency (gain) loss on foreign denominated transactions |  |  | (190 | ) |  |  |  |  |  |  |  |  |  |  | (190 | )
Deferred taxes |  |  | (39,040 | ) |  |  | 37 |  |  |  | 2,399 |  |  |  | (41,476 | )
Provision for doubtful accounts |  |  | 1,680 |  |  |  |  |  |  |  |  |  |  |  | 1,680 |
Stock–based compensation expense |  |  | 20,794 |  |  |  |  |  |  |  |  |  |  |  | 20,794 |
Amortization of deferred contract costs |  |  | 3,689 |  |  |  |  |  |  |  | 3,689 |  |  |  | — |
Changes in operating assets and liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Accounts receivable, net |  |  | (1,911 | ) |  |  | (126 | ) |  |  |  |  |  |  | (1,785 | )
Prepaid expenses, prepaid income taxes, and other assets |  |  | (11,753 | ) |  |  |  |  |  |  |  |  |  |  | (11,753 | )
Deferred contracts costs |  |  | (12,987 | ) |  |  |  |  |  |  | (12,987 | ) |  |  | — |
Accounts payable |  |  | 9,345 |  |  |  |  |  |  |  |  |  |  |  | 9,345 |
Accrued expenses, accrued income taxes and other current liabilities |  |  | 2,695 |  |  |  |  |  |  |  |  |  |  |  | 2,695 |
Deferred revenue |  |  | 4,508 |  |  |  |  |  |  |  |  |  |  |  | 4,508 |
Deferred rent |  |  | 4,289 |  |  |  |  |  |  |  |  |  |  |  | 4,289 |
Other non–current liabilities |  |  | 405 |  |  |  |  |  |  |  |  |  |  |  | 405 |
Net cash provided by operating activities |  | $ | 51,723 |  |  | $ | — |  |  | $ | — |  |  | $ | 51,723 |

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