Summary of Significant Accounting Policies (Tables)

12 Months Ended

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