0001086222-22-000159 | 10-Q | XBRL Viewer

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Cover Page - shares	3 Months Ended
Cover Page - shares	Mar. 31, 2022	May 03, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	000-27275
Entity Registrant Name	Akamai Technologies, Inc
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	04-3432319
Entity Address, Address Line One	145 Broadway
Entity Address, City or Town	Cambridge
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02142
City Area Code	617
Local Phone Number	444-3000
Title of 12(b) Security	Common Stock - par value $0.01 per share
Trading Symbol	AKAM
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		160,305,193
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001086222
Current Fiscal Year End Date	--12-31

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 377,811	$ 536,725
Marketable securities	129,058	541,470
Accounts receivable, net of reserves of $3,279 and $1,397 at March 31, 2022, and December 31, 2021, respectively	718,793	675,926
Prepaid expenses and other current assets	238,821	166,313
Total current assets	1,464,483	1,920,434
Marketable securities	786,712	1,088,048
Property and equipment, net	1,579,833	1,534,329
Operating lease right-of-use assets	819,880	815,754
Acquired intangible assets, net	512,188	313,225
Goodwill	2,745,882	2,156,254
Deferred income tax assets	265,946	168,342
Other assets	128,855	142,287
Total assets	8,303,779	8,138,673
Current liabilities:
Accounts payable	122,934	109,928
Accrued expenses	342,802	411,590
Deferred revenue	139,725	86,517
Revolving credit facility	75,000	0
Operating lease liabilities	183,762	175,683
Other current liabilities	5,042	6,623
Total current liabilities	869,265	790,341
Deferred revenue	30,098	25,342
Deferred income tax liabilities	41,131	40,974
Convertible senior notes	2,281,927	1,976,167
Operating lease liabilities	703,605	707,087
Other liabilities	77,231	68,748
Total liabilities	4,003,257	3,608,659
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value; 5,000,000 shares authorized; 700,000 shares designated as Series A Junior Participating Preferred Stock; no shares issued or outstanding	0	0
Common stock, $0.01 par value; 700,000,000 shares authorized; 160,513,059 shares issued and 160,512,135 shares outstanding at March 31, 2022, and 160,512,111 shares issued and outstanding at December 31, 2021	1,615	1,605
Additional paid-in capital	2,974,529	3,340,822
Accumulated other comprehensive loss	(88,611)	(69,105)
Treasury stock, at cost, 924,492 shares at March 31, 2022, and no shares at December 31, 2021	(102,853)	0
Retained earnings	1,515,842	1,256,692
Total stockholders’ equity	4,300,522	4,530,014
Total liabilities and stockholders’ equity	$ 8,303,779	$ 8,138,673

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Statement of Financial Position [Abstract]
Allowances for current expected credit losses and other reserves	$ 3,279	$ 1,397
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	5,000,000	5,000,000
Preferred stock, shares designated as Series A Junior Participating Preferred Stock (in shares)	700,000	700,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	700,000,000	700,000,000
Common stock, shares issued (in shares)	161,460,261	160,512,111
Common stock, shares outstanding (in shares)	160,535,769	160,512,111
Treasury stock (in shares)	924,492	0

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Revenue	$ 903,647	$ 842,708
Costs and operating expenses:
Cost of revenue (exclusive of amortization of acquired intangible assets shown below)	332,752	306,687
Research and development	99,935	82,045
Sales and marketing	122,719	116,354
General and administrative	153,262	136,715
Amortization of acquired intangible assets	13,644	11,427
Restructuring charge	8,016	7,116
Total costs and operating expenses	730,328	660,344
Income from operations	173,319	182,364
Interest and marketable securities (loss) income, net	(211)	4,578
Interest expense	(2,695)	(17,834)
Other expense, net	(9,565)	(817)
Income before provision for income taxes	160,848	168,291
Provision for income taxes	(34,050)	(11,898)
Loss from equity method investment	(7,635)	(698)
Net income	$ 119,163	$ 155,695
Net income per share:
Basic (in dollars per share)	$ 0.74	$ 0.95
Diluted (in dollars per share)	$ 0.73	$ 0.94
Shares used in per share calculations:
Basic (in shares)	160,494	163,061
Diluted (in shares)	163,637	165,688

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 119,163	$ 155,695
Other comprehensive loss:
Foreign currency translation adjustments	2,036	(24,265)
Change in unrealized loss on investments, net of income tax benefit of $4,948 and $937 for the three months ended March 31, 2022 and 2021, respectively	(21,542)	(2,881)
Other comprehensive loss	(19,506)	(27,146)
Comprehensive income	$ 99,657	$ 128,549

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Income tax benefit	$ 4,948	$ 937

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 119,163	$ 155,695
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	142,595	131,471
Stock-based compensation	56,227	54,305
(Benefit) provision for deferred income taxes	(13,579)	1,764
Amortization of debt discount and issuance costs	1,119	16,257
Loss on investments	16,536	698
Other non-cash reconciling items, net	12,598	528
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable	(39,198)	(15,580)
Prepaid expenses and other current assets	(64,695)	(35,388)
Accounts payable and accrued expenses	(66,938)	(72,986)
Deferred revenue	55,394	25,439
Other current liabilities	(1,441)	(716)
Other non-current assets and liabilities	4,670	(11,694)
Net cash provided by operating activities	222,451	249,793
Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired	(872,099)	(15,638)
Purchases of property and equipment	(51,005)	(87,222)
Capitalization of internal-use software development costs	(80,354)	(77,497)
Purchases of short- and long-term marketable securities	0	(90,279)
Proceeds from sales of short- and long-term marketable securities	571,369	7,154
Proceeds from maturities and redemptions of short- and long-term marketable securities	120,433	226,995
Other, net	(5,242)	179
Net cash used in investing activities	(316,898)	(36,308)
Cash flows from financing activities:
Proceeds from borrowings under revolving credit facility	75,000	0
Proceeds related to the issuance of common stock under stock plans	21,941	21,410
Employee taxes paid related to net share settlement of stock-based awards	(54,819)	(63,946)
Repurchases of common stock	(102,853)	(58,241)
Other, net	(104)	0
Net cash used in financing activities	(60,835)	(100,777)
Effects of exchange rate changes on cash, cash equivalents and restricted cash	(1,462)	(7,151)
Net (decrease) increase in cash, cash equivalents and restricted cash	(156,744)	105,557
Cash, cash equivalents and restricted cash at beginning of period	537,751	353,466
Cash, cash equivalents and restricted cash at end of period	381,007	459,023
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds received of $1,025 and $1,846 for the three months ended March 31, 2022 and 2021, respectively	50,533	17,736
Cash paid for interest expense	2,156	2,156
Cash paid for operating lease liabilities	54,285	63,673
Non-cash activities:
Operating lease right-of-use assets obtained in exchange for operating lease liabilities	38,582	82,125
Purchases of property and equipment and capitalization of internal-use software development costs included in accounts payable and accrued expenses	48,326	60,193
Capitalization of stock-based compensation	7,803	9,459
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	377,811	456,799
Restricted cash	3,196	2,224
Cash, cash equivalents and restricted cash	$ 381,007	$ 459,023

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Cash Flows [Abstract]
Proceeds from income tax refunds	$ 1,025	$ 1,846

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative-effect adjustment from adoption of new accounting pronouncement	Common Stock	Additional Paid-in Capital	Additional Paid-in Capital Cumulative-effect adjustment from adoption of new accounting pronouncement	Accumulated Other Comprehensive Loss	Treasury Stock	Retained Earnings	Retained Earnings Cumulative-effect adjustment from adoption of new accounting pronouncement
Beginning balance (in shares) at Dec. 31, 2020			162,709,720
Beginning balance at Dec. 31, 2020	$ 4,251,296		$ 1,627	$ 3,664,820		$ (20,201)	$ 0	$ 605,050
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon the vesting of restricted and deferred stock units, net of shares withheld for employee taxes (in shares)			1,128,184
Issuance of common stock upon the vesting of restricted and deferred stock units, net of shares withheld for employee taxes	(64,006)		$ 11	(64,017)
Stock-based compensation	63,765			63,765
Repurchases of common stock (in shares)			(591,963)
Repurchases of common stock	(58,241)						(58,241)
Net income	155,695							155,695
Foreign currency translation adjustments	(24,265)					(24,265)
Change in unrealized loss on investments, net of tax	(2,881)					(2,881)
Ending balance (in shares) at Mar. 31, 2021			163,245,941
Ending balance at Mar. 31, 2021	4,321,363		$ 1,638	3,664,568		(47,347)	(58,241)	760,745
Beginning balance (in shares) at Dec. 31, 2021			160,512,111
Beginning balance at Dec. 31, 2021	4,530,014	$ (235,427)	$ 1,605	3,340,822	$ (375,414)	(69,105)	0	1,256,692	$ 139,987
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock upon the vesting of restricted and deferred stock units, net of shares withheld for employee taxes (in shares)			948,150
Issuance of common stock upon the vesting of restricted and deferred stock units, net of shares withheld for employee taxes	(54,639)		$ 10	(54,649)
Stock-based compensation	63,770			63,770
Repurchases of common stock (in shares)			(924,492)
Repurchases of common stock	(102,853)						(102,853)
Net income	119,163							119,163
Foreign currency translation adjustments	2,036					2,036
Change in unrealized loss on investments, net of tax	(21,542)					(21,542)
Ending balance (in shares) at Mar. 31, 2022			160,535,769
Ending balance at Mar. 31, 2022	$ 4,300,522		$ 1,615	$ 2,974,529		$ (88,611)	$ (102,853)	$ 1,515,842

Nature of Business and Basis of Presentation	3 Months Ended
Nature of Business and Basis of Presentation	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Business and Basis of Presentation	Nature of Business and Basis of Presentation Akamai Technologies, Inc. (the “Company”) provides solutions to power and protect life online. Its globally-distributed platform is comprised of more than 350,000 servers in over 130 countries. The Company was incorporated in Delaware in 1998 and is headquartered in Cambridge, Massachusetts. The Company currently operates in one reportable and operating segment: providing solutions to power and protect life online. The accompanying interim condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. These financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Certain information and footnote disclosures normally included in the Company’s annual audited consolidated financial statements and accompanying notes have been condensed in, or omitted from, these interim financial statements. Accordingly, the unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission on February 28, 2022. The December 31, 2021 consolidated balance sheet included herein is derived from the Company's audited consolidated financial statements. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results of operations that may be expected for any future periods. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, that are necessary for a fair statement of the results of all interim periods reported herein. Newly-Adopted Accounting Pronouncements In August 2020, the Financial Accounting Standards Board ("FASB") issued guidance that is expected to reduce complexity and improve comparability of financial reporting associated with accounting for convertible instruments and contracts in an entity’s own equity. The Company adopted this guidance on January 1, 2022 on a modified retrospective basis. The convertible senior notes included on the Company's condensed consolidated balance sheet more closely reflects the principal amounts. Prior to the adoption of this guidance, the Company separated its convertible senior notes into a liability and an equity component. The equity portion is now eliminated. The cumulative effect of the changes was an increase to convertible senior notes of $304.7 million, an increase to deferred income tax liabilities of $0.7 million, an increase to deferred income tax assets of $77.7 million, a decrease to property and equipment of $7.7 million, and a decrease to additional paid-in capital of $375.4 million on the condensed consolidated balance sheet. The net effect of these adjustments was recorded as an increase to retained earnings as of January 1, 2022. Additionally, the new guidance eliminates the use of the treasury stock method for convertible instruments that can be settled in whole or in part with equity, when calculating diluted earnings per share. Instead, it requires application of the if-converted method. Under that method, diluted earnings per share would generally be calculated assuming that all the convertible senior notes were converted solely into shares of common stock at the beginning of the reporting period, unless the result would be antidilutive. The application of the if-converted method reduces the Company’s reported diluted earnings per share after the adoption date. However, in December 2021, the Company made an irrevocable election to settle the principal portion of the convertible senior notes with cash. Accordingly, the if-converted method is only impacted by any potential shares to be delivered for the amount in excess of the principal portion. The changes to the diluted earnings per share guidance did not materially impact our results of operations. With the elimination of the debt discount created by the equity component, amortization of the debt discount is eliminated, which decreases interest expense, and therefore increases net income and earnings per share, from the period of adoption. This had the effect of increasing our basic and diluted earnings per share by $0.08 for the three months ended March 31, 2022.

Fair Value Measurements

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

The following is a summary of available-for-sale marketable securities held as of March 31, 2022 and December 31, 2021 (in thousands):


			Gross Unrealized						Classification on Balance Sheet
	Amortized Cost		Gains		Losses		Aggregate Fair Value		Short-Term Marketable Securities		Long-Term Marketable Securities
As of March 31, 2022


Corporate bonds	$	645,755	$	—	$	(17,750)	$	628,005	$	108,981	$	519,024
U.S. government agency obligations	272,133		—		(7,009)		265,124		19,306		245,818
	$	917,888	$	—	$	(24,759)	$	893,129	$	128,287	$	764,842

As of December 31, 2021

Commercial paper	$	25,056	$	—	$	(24)	$	25,032	$	25,032	$	—
Corporate bonds	1,268,991		1,191		(4,275)		1,265,907		459,012		806,895
U.S. government agency obligations	316,728		3		(1,281)		315,450		56,530		258,920
	$	1,610,775	$	1,194	$	(5,580)	$	1,606,389	$	540,574	$	1,065,815

The Company offers certain eligible employees the ability to participate in a non-qualified deferred compensation plan. The mutual funds held by the Company that are associated with this plan are classified as restricted trading securities. These securities are not included in the available-for-sale securities table above but are included in marketable securities in the condensed consolidated balance sheets.

Unrealized gains and unrealized temporary losses on investments classified as available-for-sale are included within accumulated other comprehensive loss in the condensed consolidated balance sheets. Upon realization, those amounts are reclassified from accumulated other comprehensive loss to interest income in the condensed consolidated statements of income. As of March 31, 2022, the Company held for investment corporate bonds with a fair value of $43.8 million, which were classified as available-for-sale marketable securities that had been in a continuous unrealized loss position for more than 12 months. The unrealized loss related to these corporate bonds was $1.1 million and is included in accumulated other comprehensive loss as of March 31, 2022. The unrealized loss is attributable to changes in interest rates. Based on the evaluation of available evidence, the Company does not believe any unrealized losses represent other than temporary impairments.

The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets as of March 31, 2022 and December 31, 2021 (in thousands):


	Total Fair Value		Fair Value Measurements at Reporting Date Using
			Level 1		Level 2
As of March 31, 2022
Cash Equivalents and Marketable Securities:
Money market funds	$	1,428	$	1,428	$	—


Corporate bonds	628,005		—		628,005
U.S. government agency obligations	265,124		—		265,124
Mutual funds	22,641		22,641		—
	$	917,198	$	24,069	$	893,129




As of December 31, 2021
Cash Equivalents and Marketable Securities:
Money market funds	$	109,313	$	109,313	$	—
Commercial paper	39,031		—		39,031
Corporate bonds	1,265,907		—		1,265,907

U.S. government agency obligations	315,450		—		315,450
Mutual funds	23,129		23,129		—
	$	1,752,830	$	132,442	$	1,620,388

As of March 31, 2022 and December 31, 2021, the Company grouped money market and mutual funds using a Level 1 valuation because market prices for such investments are readily available in active markets. As of March 31, 2022 and December 31, 2021, the Company grouped commercial paper, U.S. government agency obligations and corporate bonds using a Level 2 valuation because quoted prices for similar assets in active markets (or identical assets in an inactive market) are available. The Company did not have any transfers of assets between Level 1 or Level 2 of the fair value measurement hierarchy during the three months ended March 31, 2022.

When developing fair value estimates, the Company maximizes the use of observable inputs and minimizes the use of unobservable inputs. When available, the Company uses quoted market prices to measure fair value. The valuation technique used to measure fair value for the Company's Level 1 and Level 2 assets is a market approach, using prices and other relevant information generated by market transactions involving identical or comparable assets. If market prices are not available, the fair value measurement is based on models that use primarily market-based parameters including yield curves, volatilities, credit ratings and currency rates. In certain cases where market rate assumptions are not available, the Company is required to make judgments about the assumptions market participants would use to estimate the fair value of a financial instrument.

Contractual maturities of the Company’s available-for-sale marketable securities held as of March 31, 2022 and December 31, 2021 were as follows (in thousands):


	March 31, 2022		December 31, 2021
Due in 1 year or less	$	128,287	$	540,574
Due after 1 year through 5 years	764,842		1,065,815
	$	893,129	$	1,606,389

Accounts Receivable

3 Months Ended

Mar. 31, 2022

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Accounts Receivable

Net accounts receivable consisted of the following as of March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022		December 31, 2021
Trade accounts receivable	$	511,584	$	501,959
Unbilled accounts receivable	210,488		175,364
Gross accounts receivable	722,072		677,323
Allowances for current expected credit losses and other reserves	(3,279)		(1,397)
Accounts receivable, net	$	718,793	$	675,926

A summary of activity in the accounts receivable allowance for current expected credit losses and other reserves for the three months ended March 31, 2022 and 2021 is as follows (in thousands):


	March 31, 2022		March 31, 2021
Beginning balance	$	1,397	$	1,822
Charges to income from operations	1,951		923
Collections from customers previously reserved and other	(69)		(1,091)
Ending balance	$	3,279	$	1,654

Charges to income from operations primarily represents charges to bad debt expense for increases in the allowance for current expected credit losses.

Incremental Costs to Obtain a Contract with a Customer

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Incremental Costs to Obtain a Contract with a Customer

The following table summarizes the deferred costs associated with obtaining customer contracts, specifically commission and incentive payments, as of March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022		December 31, 2021
Deferred costs included in prepaid and other current assets	$	39,948	$	43,562
Deferred costs included in other assets	28,290		30,436
Total deferred costs	$	68,238	$	73,998

The following table summarizes additional information related to incremental costs to obtain a contract with a customer for the three months ended March 31, 2022 and 2021 (in thousands):


	For the Three Months Ended March 31,
	2022		2021
Amortization expense related to deferred costs	$	15,022	$	13,727
Incremental costs capitalized	9,484		9,872

Amortization expense related to deferred costs is primarily included in sales and marketing expense in the condensed consolidated statements of income.

Revenue from Contracts with Customers

The Company sells its solutions through a sales force located both domestically and abroad. Revenue derived from operations outside of the U.S. is determined based on the country in which the sale originated. Other than the U.S., no single country accounted for 10% or more of the Company’s total revenue for any reported period. The following table summarizes revenue by geography included in the Company’s condensed consolidated statements of income for the three months ended March 31, 2022 and 2021 (in thousands):


	For the Three Months Ended March 31,
	2022		2021
U.S.	$	481,007	$	463,180
International	422,640		379,528
Total revenue	$	903,647	$	842,708

The Company reports its revenue in three solution categories: security, delivery and compute. Revenue by solution was previously reported by group: Security Technology Group and Edge Technology Group. Revenue from security solutions was previously presented as Security Technology Group revenue and revenue from delivery and compute solutions was previously presented as Edge Technology Group revenue. Security includes solutions that are designed to protect business online by keeping infrastructure, websites, applications and users safe. Delivery includes solutions that are designed to enable business online, including media delivery and web performance. Compute includes edge cloud optimization solutions and net storage. The following table summarizes revenue by solution category included in the Company’s condensed consolidated statements of income for the three months ended March 31, 2022 and 2021 (in thousands):


	For the Three Months Ended March 31,
	2022		2021
Security	$	381,567	$	310,219
Delivery	444,148		473,669
Compute	77,932		58,820
Total revenue	$	903,647	$	842,708

Most security, delivery and compute services represent obligations that are satisfied over time as the customer simultaneously receives and consumes the services provided by the Company. Accordingly, the majority of the Company's revenue is recognized over time, generally ratably over the term of the arrangement due to consistent monthly usage commitments that expire each period. Any usage over a given commitment is recognized in the period in which the units are served. Any bursting over given commitments is recognized in the period in which the traffic is served. A small percentage of the Company's contracts are satisfied at a point in time, such as one-time professional services contracts, integration services and most license sales where the primary obligation is delivery of the license at the start of the term. In these cases, revenue is recognized at a point in time of delivery or satisfaction of the performance obligation.

During the three months ended March 31, 2022 and 2021, the Company recognized $56.2 million and $43.3 million of revenue that was included in deferred revenue as of December 31, 2021 and 2020, respectively.

As of March 31, 2022, the aggregate amount of remaining performance obligations from contracts with customers was $3.2 billion. The Company expects to recognize approximately 70% of its remaining performance obligations as revenue over the next 12 months, with the remaining recognized thereafter. Remaining performance obligations represent the amount of the transaction price under contracts with customers that are attributable to performance obligations that are unsatisfied or partially satisfied at the reporting date. This consists of future committed revenue for monthly, quarterly or annual periods within current contracts with customers, as well as deferred revenue arising from consideration invoiced in prior periods for which the related performance obligations have not been satisfied. It excludes estimates of variable consideration such as usage-based contracts with no committed contract as well as anticipated renewed contracts. Revenue recognized during each of the three months ended March 31, 2022 and 2021, related to performance obligations satisfied in previous periods was not material.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

Acquired Intangible Assets and Goodwill

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Acquired Intangible Assets and Goodwill

Acquired intangible assets that are subject to amortization consisted of the following as of March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022						December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Completed technology	$	328,516	$	(134,891)	$	193,625	$	257,857	$	(128,715)	$	129,142
Customer-related intangible assets	499,945		(224,061)		275,884		398,182		(216,192)		181,990
Non-compete agreements	254		(127)		127		258		(107)		151
Trademarks and trade names	14,663		(6,365)		8,298		8,039		(6,097)		1,942
Acquired license rights	34,810		(556)		34,254		490		(490)		—
Total	$	878,188	$	(366,000)	$	512,188	$	664,826	$	(351,601)	$	313,225

Aggregate expense related to amortization of acquired intangible assets for the three months ended March 31, 2022 and 2021 was $13.6 million and $11.4 million, respectively. Based on the Company’s acquired intangible assets as of March 31, 2022, aggregate expense related to amortization of acquired intangible assets is expected to be $50.4 million for the remainder of 2022, and $61.3 million, $65.8 million, $66.2 million and $59.9 million for 2023, 2024, 2025 and 2026, respectively.

The change in the carrying amount of goodwill for the three months ended March 31, 2022 was as follows (in thousands):


Balance as of January 1, 2022	$	2,156,254
Acquisition of Linode Limited Liability Company	588,440
Measurement period adjustments related to acquisitions completed in prior years	1,884
Foreign currency translation	(696)
Balance as of March 31, 2022	$	2,745,882

The Company tests goodwill for impairment at least annually. Through the date the interim condensed consolidated financial statements were issued, no triggering events had occurred that would indicate that a potential impairment exists.

Acquisitions

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Acquisitions

Acquisition-related costs during the three months ended March 31, 2022 were $10.3 million and are included in general and administrative expense in the condensed consolidated statements of income. Pro forma results of operations for the acquisition completed during the three months ended March 31, 2022 have not been presented because the effects of the acquisition were not material to the Company's consolidated financial results. Revenue and earnings of the acquired company since the date of the acquisition that are included in the Company's condensed consolidated statements of income are also not presented separately because they are not material.

Linode

In March 2022, the Company acquired all the outstanding equity interests of Linode Limited Liability Company ("Linode"), for $898.8 million in cash. Linode is an infrastructure-as-a-service platform provider that allows for developer-friendly cloud computing capabilities. The acquisition is intended to enhance the Company’s edge computing services by creating a unique cloud platform to build, run and secure applications from the cloud to the edge. As of March 31, 2022, the purchase price allocation is preliminary, pending finalization of the fair value of the tangible and intangible assets acquired, certain income tax matters and net working capital.

The following table presents the preliminary allocation of the purchase price for Linode (in thousands):


Total purchase consideration	$	898,777

Allocation of the purchase consideration:
Cash	$	26,678
Accounts receivable	7,220
Prepaid expenses and other current assets	6,288
Property and equipment	60,670
Operating lease right-of-use assets	16,970
Identifiable intangible assets	212,520
Goodwill	588,440
Deferred income tax assets	2,901
Other assets	652
Total assets acquired	922,339
Accounts payable	(5,387)
Accrued expenses	(970)

Operating lease liabilities	(17,205)


Total liabilities assumed	(23,562)
Net assets acquired	$	898,777

The value of the goodwill can be attributed to a number of business factors, including a trained technical workforce and cost synergies expected to be realized. The Company expects that all of the goodwill related to the acquisition of Linode will be deductible for tax purposes.

The following were the identified intangible assets acquired and their respective weighted average useful lives (in thousands, except years):


	Gross Carrying Amount		Weighted Average Useful Life (in years)
Customer-related intangible assets	$	100,700	11
Completed technologies	70,900		6
Acquired license rights	34,320		15
Trademarks	6,600		9

Total	$	212,520

The Company applied the relief-from-royalty method to estimate the fair values of the completed technologies and trademarks and the excess earnings method to estimate the fair values of the customer-related acquired intangible assets. The Company used readily available market data to estimate the fair values of the acquired license rights. The total weighted average amortization period for the intangible assets acquired from Linode is 9.7 years. The intangible assets are being amortized based upon the pattern in which the economic benefits of the intangible assets are being utilized.

Debt

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Debt

Convertible Notes – Due 2027

In August 2019, the Company issued $1,150.0 million in par value of convertible senior notes due 2027 (the "2027 Notes"). The 2027 Notes are senior unsecured obligations of the Company, bear regular interest of 0.375%, payable semi-annually in arrears on March 1 and September 1 of each year and mature on September 1, 2027, unless repurchased or converted in accordance with their terms prior to maturity.

At their option, holders may convert their 2027 Notes prior to the close of business on the business day immediately preceding May 1, 2027, only under the following circumstances:

•during any calendar quarter commencing after the calendar quarter ended December 31, 2019 (and only during such calendar quarter), if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

•during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of 2027 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the conversion rate on each such trading day; or

•upon the occurrence of specified corporate events.

On or after May 1, 2027, holders may convert all or any portion of their 2027 Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date.

Upon conversion, the Company will pay the principal amount in cash and will pay, or deliver, as the case may be, any amount in excess of the principal amount in cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock, at the Company's election. The initial conversion rate is 8.6073 shares of the Company's common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $116.18 per share, subject to adjustments in certain events, and represents a potential conversion into 9.9 million shares.

Prior to January 1, 2022, in accounting for the issuance of the 2027 Notes, the Company separated the 2027 Notes into liability and equity components. The carrying cost of the liability component was calculated by measuring the fair value of a similar debt obligation that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 2027 Notes. The difference between the principal amount of the 2027 Notes and the proceeds allocated to the liability component (“debt discount”) is amortized to interest expense using the effective interest method over the term of the 2027 Notes. The equity component is recorded in additional paid-in capital in the condensed consolidated balance sheet to meet the conditions for equity classification. On January 1, 2022, the Company adopted the revised guidance for accounting for convertible instruments, which eliminated the equity component. Refer to Note 1 to the condensed consolidated financial statements included elsewhere in this report for details on the revised guidance for accounting for convertible instruments adoption.

Initially, the Company allocated the total transaction costs incurred to the liability and equity components based on their relative values. However, subsequent to the adoption of the revised guidance for accounting for convertible instruments, all transaction costs are presented as a reduction to the 2027 Notes. Prior to January 1, 2022, transaction costs attributable to the liability component were being amortized to interest expense over the term of the 2027 Notes, and subsequent to the adoption of the revised guidance, all transaction costs are being amortized to interest expense over the term of the 2027 Notes.

The 2027 Notes consisted of the following components as of March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022		December 31, 2021
Liability component:
Principal	$	1,150,000	$	1,150,000
Less: debt discount and issuance costs, net of amortization	(10,113)		(169,030)
Net carrying amount	$	1,139,887	$	980,970

Equity component:	$	—	$	220,529

The estimated fair value of the 2027 Notes at March 31, 2022 and December 31, 2021 was $1,327.0 million and $1,359.3 million, respectively. The fair value was determined based on the quoted price of the 2027 Notes in an inactive market on the last trading day of the reporting period and has been classified as Level 2 within the fair value hierarchy. Based on the

closing price of the Company's common stock of $119.39 on March 31, 2022, the value of the 2027 Notes if converted to common stock was more than the principal amount of $1,150.0 million.

The Company used $100.0 million of the proceeds from the offering to repurchase shares of its common stock, concurrent with the issuance of the 2027 Notes. The repurchase was made in accordance with a share repurchase program previously approved by the board of directors. Additionally, $127.1 million of the proceeds was used for the net cost of the convertible note hedge and warrant transactions. The remaining net proceeds are intended to be used for share repurchases, working capital and general corporate purposes, including potential acquisitions and other strategic transactions.

Note Hedge

To minimize the impact of potential dilution upon conversion of the 2027 Notes, the Company entered into convertible note hedge transactions with respect to its common stock in August 2019. The Company paid $312.2 million for the note hedge transactions. The note hedge transactions cover approximately 9.9 million shares of the Company’s common stock at a strike price that corresponds to the initial conversion price of the 2027 Notes, also subject to adjustment, and are exercisable upon conversion of the 2027 Notes. The Company determined that the note hedge meets the definition of a derivative and is classified in stockholders’ equity, as the note hedge is indexed to the Company's common stock, and the Company, at its election, may pay or deliver to holders cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock. The Company recorded the purchase of the hedge as a decrease to additional paid-in capital. The Company does not recognize subsequent changes in fair value of the note hedge in its condensed consolidated financial statements.

Warrants

Separately, in August 2019, the Company entered into warrant transactions, whereby the Company sold warrants to acquire, subject to anti-dilution adjustments, up to 9.9 million shares of the Company’s common stock at a strike price of approximately $178.74 per share. The Company received aggregate proceeds of $185.2 million from the sale of the warrants. The convertible note hedge and warrant transactions will generally have the effect of increasing the conversion price of the 2027 Notes to approximately $178.74 per share. The Company determined that the warrants meet the definition of a derivative and are classified in stockholders’ equity, as the warrants are indexed to the Company's common stock, and the Company, at its election, may pay or deliver to holders cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock. The Company recorded the proceeds from the issuance of the warrants as an increase to additional paid-in capital. The Company does not recognize subsequent changes in fair value of the warrants in its condensed consolidated financial statements.

Convertible Notes – Due 2025

In May 2018, the Company issued $1,150.0 million in par value of convertible senior notes due 2025 (the "2025 Notes"). The 2025 Notes are senior unsecured obligations of the Company, bear regular interest of 0.125%, payable semi-annually on May 1 and November 1 of each year, and mature on May 1, 2025, unless repurchased or converted prior to maturity.

At their option, holders may convert their 2025 Notes prior to the close of business on the business day immediately preceding January 1, 2025, only under the following circumstances:

•during any calendar quarter commencing after the calendar quarter ended June 30, 2018 (and only during such calendar quarter), if the last reported sale price of the Company's common stock for at least 20 trading days (whether or not consecutive) during the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

•during the five business day period after any five consecutive trading day period in which the trading price per $1,000 principal amount of 2025 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company's common stock and the conversion rate on each such trading day; or

•upon the occurrence of specified corporate events.

On or after January 1, 2025, holders may convert all or any portion of their 2025 Notes at any time prior to the close of business on the second scheduled trading day immediately preceding the maturity date, regardless of the foregoing circumstances.

Upon conversion, the Company will pay the principal amount in cash and will pay, or deliver, as the case may be, any amount in excess of the principal amount in cash, shares of common stock or a combination of cash and shares of the Company stock, at the Company's election. The initial conversion rate is 10.5150 shares of the Company's common stock per $1,000 principal amount, which is equivalent to an initial conversion price of approximately $95.10 per share, subject to adjustments in certain events, and represents a potential conversion into 12.1 million shares.

Prior to January 1, 2022, in accounting for the issuance of the 2025 Notes, the Company separated the 2025 Notes into liability and equity components. The carrying cost of the liability component was calculated by measuring the fair value of a similar debt obligation that does not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the 2025 Notes. The difference between the principal amount of the 2025 Notes and the proceeds allocated to the liability component (“debt discount”) is amortized to interest expense using the effective interest method over the term of the 2025 Notes. The equity component is recorded in additional paid-in capital in the condensed consolidated balance sheet to meet the conditions for equity classification. On January 1, 2022, the Company adopted the new revised guidance for accounting for convertible instruments, which eliminated the equity component. Refer to Note 1 to the condensed consolidated financial statements included elsewhere in this report for details on the revised guidance for accounting for convertible instruments adoption.

Initially, the Company allocated the total transaction costs incurred to the liability and equity components based on their relative values. However, subsequent to the adoption of the revised guidance for accounting for convertible instruments, all transaction costs are presented as a reduction to the 2025 Notes. Prior to January 1, 2022, transaction costs attributable to the liability component were being amortized to interest expense over the term of the 2025 Notes, and subsequent to the adoption of the revised guidance, all transaction costs are being amortized to interest expense over the term of the 2025 Notes.

The 2025 Notes consisted of the following components as of March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022		December 31, 2021
Liability component:
Principal	$	1,150,000	$	1,150,000
Less: debt discount and issuance costs, net of amortization	(7,960)		(154,803)
Net carrying amount	$	1,142,040	$	995,197

Equity component:	$	—	$	285,225

The estimated fair value of the 2025 Notes at March 31, 2022 and December 31, 2021 was $1,518.8 million and $1,510.4 million, respectively. The fair value was determined based on the quoted price of the 2025 Notes in an inactive market on the last trading day of the reporting period and has been classified as Level 2 within the fair value hierarchy. Based on the closing price of the Company's common stock of $119.39 on March 31, 2022, the value of the 2025 Notes if converted to common stock was more than the principal amount of $1,150.0 million.

The Company used $46.2 million of the proceeds from the offering to repurchase shares of its common stock, concurrent with the issuance of the 2025 Notes. The repurchase was made in accordance with a share repurchase program previously approved by the board of directors. Additionally, $141.8 million of the proceeds was used for the net cost of convertible note hedge and warrant transactions. The Company also used a portion of the net proceeds to repay at maturity the $690.0 million in par value of convertible senior notes due in 2019. The remaining net proceeds are intended to be used for share repurchases, working capital and general corporate purposes, including potential acquisitions and other strategic transactions.

Note Hedge

To minimize the impact of potential dilution upon conversion of the 2025 Notes, the Company entered into convertible note hedge transactions with respect to its common stock in May 2018. The Company paid $261.7 million for the note hedge transactions. The note hedge transactions cover approximately 12.1 million shares of the Company’s common stock at a strike price that corresponds to the initial conversion price of the 2025 Notes, also subject to adjustment, and are exercisable upon conversion of the 2025 Notes. The Company determined that the note hedge meets the definition of a derivative and is classified in stockholders’ equity, as the note hedge is indexed to the Company's common stock, and the Company, at its election, may pay or deliver to holders cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock. The Company recorded the purchase of the hedge as a decrease to additional paid-in capital. The Company does not recognize subsequent changes in fair value of the note hedge in its condensed consolidated financial statements.

Warrants

Separately, in May 2018, the Company entered into warrant transactions, whereby the Company sold warrants to acquire, subject to anti-dilution adjustments, up to 12.1 million shares of the Company’s common stock at a strike price of approximately $149.18 per share. The Company received aggregate proceeds of $119.9 million from the sale of the warrants. The convertible note hedge and warrant transactions will generally have the effect of increasing the conversion price of the 2025 Notes to approximately $149.18 per share. The Company determined that the warrants meet the definition of a derivative and are classified in stockholders’ equity, as the warrants are indexed to the Company's common stock, and the Company, at its election, may pay or deliver to holders cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock. The Company recorded the proceeds from the issuance of the warrants as an increase to additional paid-in capital. The Company does not recognize subsequent changes in fair value of the warrants in its condensed consolidated financial statements.

Revolving Credit Facility

In May 2018, the Company entered into a $500.0 million five-year, revolving credit agreement (the “Credit Agreement”). Borrowings under the Credit Agreement may be used to finance working capital needs and for general corporate purposes. The Credit Agreement provides for an initial $500.0 million in revolving loans. Under specified circumstances, the facility can be increased to up to $1.0 billion in aggregate principal amount. The Credit Agreement expires in May 2023.

Borrowings under the Credit Agreement bear interest, at the Company's option, at a base rate plus a spread of 0.00% to 0.25% or an adjusted LIBOR rate plus a spread of 0.875% to 1.25%, in each case with such spread being determined based on the Company's consolidated leverage ratio specified in the Credit Agreement. Regardless of what amounts, if any, are outstanding under the Credit Agreement, the Company is also obligated to pay an ongoing commitment fee on undrawn amounts at a rate of 0.075% to 0.15%, with such rate being based on the Company's consolidated leverage ratio specified in the Credit Agreement.

The Credit Agreement contains customary representations and warranties, affirmative and negative covenants and events of default. Principal covenants include a maximum consolidated leverage ratio and a minimum consolidated interest coverage ratio. In March 2022, the Company borrowed $75.0 million under the Credit Agreement, and as of March 31, 2022, $75.0 million remained outstanding. The Company plans to repay amounts outstanding in less than 12 months.

Interest Expense

The 2027 Notes bear interest at a fixed rate of 0.375%, with interest payable semi-annually on March 1 and September 1 of each year. The 2025 Notes bear interest at a fixed rate of 0.125% with interest payable semi-annually on May 1 and November 1 of each year. The Company is also obligated to pay ongoing commitment fees under the terms of the Credit Agreement, in addition to interest payable on outstanding borrowings. Prior to the adoption of the revised guidance for accounting for convertible instruments on January 1, 2022, the Company also amortized as interest expense the value of debt discounts of the 2027 Notes and the 2025 Notes. The following table sets forth total interest expense included in the condensed consolidated statements of income for the three months ended March 31, 2022 and 2021 (in thousands):


	For the Three Months Ended March 31,
	2022		2021
Amortization of debt discounts and issuance costs	$	1,168	$	17,182
Coupon interest payable on 2025 Notes	359		359
Coupon interest payable on 2027 Notes	1,078		1,078
Interest payable under the Credit Agreement	139		140
Capitalization of interest expense	(49)		(925)
Total interest expense	$	2,695	$	17,834

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

Restructuring	3 Months Ended
Restructuring	Mar. 31, 2022
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring During the first quarter of 2022, Mitsubishi UFJ Financial Group ("MUFG"), the majority owner of Global Open Network, Inc. (“GO-NET"), announced its intention to suspend the operations of GO-NET and to eventually liquidate it. The Company has a 20% stake in GO-NET and also provides services to GO-NET. As a result of MUFG's intention to suspend operations, during the three months ended March 31, 2022, the Company recorded as a restructuring charge the impairment of $7.5 million primarily related to certain capitalized internal-use software assets that will no longer be used in operations or will not generate sufficient future cash to support their values. The Company does not expect to incur material additional charges related to this action. Additionally, the Company launched its FlexBase program in May 2022, which is a flexible workspace arrangement that allows employees to choose to work from their home office or a Company office. This is a significant change to the way employees worked prior to the program, and prior to office shutdowns as part of the COVID-19 pandemic. Planning for the program commenced in 2021, and in the fourth quarter of 2021, the Company identified certain facilities that were no longer needed. As a result, an impairment of right-of-use assets and leasehold improvements was recognized. The Company has incurred expenses of $3.7 million related to this program, of which a benefit of $0.1 million was incurred in the first quarter of 2022. Management is still evaluating the Company's future work environment and additional charges related to such type of action may occur in 2022. During the fourth quarter of 2020, management committed to an action to restructure certain parts of the Company to better position itself to become more agile in delivering its solutions. As a result, certain headcount reductions were necessary and certain capitalized internal-use software charges were realized for software not yet placed into service that will not be completed and implemented due to this action. The Company incurred expenses of $31.5 million as part of this action, of which $7.0 million was incurred during the three months ended March 31, 2021 and was comprised of $6.3 million of employee severance and related benefits and $0.7 million of internal-use software charges. The Company did not incur any charges related to this action during the three months ended March 31, 2022, nor does it expect to incur material additional charges related to this action. The Company also recognizes restructuring charges for redundant employees, facilities and contracts associated with completed acquisitions.

Stockholders' Equity

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

Share Repurchase Program

Effective January 2022, the board of directors of the Company authorized a $1.8 billion share repurchase program through December 31, 2024. During the three months ended March 31, 2022, the Company repurchased 0.9 million shares of its common stock for $102.9 million. The Company's goals for the share repurchase program are to offset the dilution created by its employee equity compensation programs over time and provide the flexibility to return capital to stockholders as business and market conditions warrant, while still preserving its ability to pursue other strategic opportunities.

Stock-Based Compensation

The following table summarizes stock-based compensation included in the Company’s condensed consolidated statements of income for the three months ended March 31, 2022 and 2021 (in thousands):


	For the Three Months Ended March 31,
	2022		2021
Cost of revenue	$	6,233	$	7,096
Research and development	20,232		18,369
Sales and marketing	12,326		12,478
General and administrative	17,436		16,362
Total stock-based compensation	56,227		54,305
Provision for income taxes	(14,043)		(13,044)
Total stock-based compensation, net of income taxes	$	42,184	$	41,261

In addition to the amounts of stock-based compensation reported in the table above, the Company’s condensed consolidated statements of income for the three months ended March 31, 2022 and 2021, include stock-based compensation reflected as a component of amortization of capitalized internal-use software of $7.6 million, and $7.7 million, respectively, before taxes.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2022

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Loss

The following table summarizes the changes in accumulated other comprehensive loss, net of tax, which is reported as a component of stockholders' equity, for the three months ended March 31, 2022 (in thousands):


	Foreign Currency Translation		Net Unrealized Gains (Losses) on Investments		Total
Balance as of January 1, 2022	$	(71,809)	$	2,704	$	(69,105)
Other comprehensive income (loss)	2,036		(21,542)		(19,506)
Balance as of March 31, 2022	$	(69,773)	$	(18,838)	$	(88,611)

Amounts reclassified from accumulated other comprehensive loss to net income were immaterial for the three months ended March 31, 2022.

Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Incremental Costs to Obtain a Contract with a Customer


	March 31, 2022		December 31, 2021
Deferred costs included in prepaid and other current assets	$	39,948	$	43,562
Deferred costs included in other assets	28,290		30,436
Total deferred costs	$	68,238	$	73,998

The following table summarizes additional information related to incremental costs to obtain a contract with a customer for the three months ended March 31, 2022 and 2021 (in thousands):


	For the Three Months Ended March 31,
	2022		2021
Amortization expense related to deferred costs	$	15,022	$	13,727
Incremental costs capitalized	9,484		9,872

Amortization expense related to deferred costs is primarily included in sales and marketing expense in the condensed consolidated statements of income.

Revenue from Contracts with Customers


	For the Three Months Ended March 31,
	2022		2021
U.S.	$	481,007	$	463,180
International	422,640		379,528
Total revenue	$	903,647	$	842,708


	For the Three Months Ended March 31,
	2022		2021
Security	$	381,567	$	310,219
Delivery	444,148		473,669
Compute	77,932		58,820
Total revenue	$	903,647	$	842,708

- Definition

+ References

+ Details

Income Taxes	3 Months Ended
Income Taxes	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company's effective income tax rate is based on estimated income for the year, the estimated composition of the income in different jurisdictions and discrete adjustments, if any, in the applicable quarterly periods. Potential discrete adjustments include tax charges or benefits related to stock-based compensation, changes in tax legislation, settlements of tax audits or assessments, uncertain tax positions and acquisitions, among other items. In the second quarter of 2018, the Company filed an appeal with the Massachusetts Appellate Tax Board (“MATB”) contesting the adverse audit findings related to certain tax benefits and exemptions. In July 2020, the MATB ruled in the Company’s favor; however, the Massachusetts Department of Revenue appealed the decision in January 2022. The Company has determined that it is more-likely-than-not that it will prevail and no reserve has been recorded related to these controversies. The Company’s effective income tax rate was 21.2% and 7.1% for the three months ended March 31, 2022 and 2021, respectively. For the three months ended March 31, 2022, the effective income tax rate was higher than the federal statutory tax rate due to an intercompany sale of intellectual property, tax on global intangible low taxed income and non-deductible stock-based compensation. These amounts were partially offset by foreign income taxed at lower rates, the excess tax benefit related to stock-based compensation and the benefit of U.S. federal, state and foreign research and development credits. For the three months ended March 31, 2021, the effective income tax rate was lower than the federal statutory tax rate due to foreign income taxed at lower rates, the excess tax benefit related to stock-based compensation, the revaluation of certain foreign income tax liabilities due to foreign exchange rate fluctuations and the benefit of U.S. federal, state and foreign research and development credits. These amounts were partially offset by non-deductible stock-based compensation, the valuation allowance recorded against deferred tax assets related to state tax credits and state taxes.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Net Income per Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share Reconciliation [Abstract]

Net Income per Share

Basic net income per share is computed using the weighted average number of common shares outstanding during the applicable period. Diluted net income per share is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of potential common stock. Potential common stock consists of shares issuable pursuant to stock options, restricted stock units ("RSUs"), deferred stock units ("DSUs"), convertible senior notes and warrants issued by the Company. For the three months ended March 31, 2022, the dilutive effect of outstanding awards is reflected in diluted earnings per share by application of the treasury stock method and the dilutive effect of the convertible securities is reflected in diluted earnings per share by application of the if-converted method. For the three months ended March 31, 2021, the dilutive effect of outstanding awards and convertible securities is reflected in diluted earnings per share by application of the treasury stock method.

The following table sets forth the components used in the computation of basic and diluted net income per share for the three months ended March 31, 2022 and 2021 (in thousands, except per share data):


	For the Three Months Ended March 31,
	2022		2021
Numerator:
Net income	$	119,163	$	155,695
Denominator:
Shares used for basic net income per share	160,494		163,061
Effect of dilutive securities:
Stock options	1		5
RSUs and DSUs	1,320		1,667
Convertible senior notes	1,822		955
Warrants related to issuance of convertible senior notes	—		—
Shares used for diluted net income per share	163,637		165,688
Basic net income per share	$	0.74	$	0.95
Diluted net income per share	$	0.73	$	0.94

For the three months ended March 31, 2022 and 2021, certain potential outstanding common shares issuable in respect of stock options, service-based RSUs, convertible notes and warrants were excluded from the computation of diluted net income per share because the effect of including these items was anti-dilutive. Additionally, certain performance-based RSUs were excluded from the computation of diluted net income per share because the underlying performance conditions for such RSUs had not been met as of these dates. The number of potentially outstanding common shares excluded from the computation of diluted net income per share for the three months ended March 31, 2022 and 2021 are as follows (in thousands):


	For the Three Months Ended March 31,
	2022	2021

Service-based RSUs	2,234	2,070
Market- and performance-based RSUs	1,054	1,338
Convertible senior notes	—	9,898
Warrants related to issuance of convertible senior notes	21,991	21,991
Total shares excluded from computation	25,279	35,297

Nature of Business and Basis of Presentation (Policies)	3 Months Ended
Nature of Business and Basis of Presentation (Policies)	Mar. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting	The accompanying interim condensed consolidated financial statements are unaudited and have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. These financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Certain information and footnote disclosures normally included in the Company’s annual audited consolidated financial statements and accompanying notes have been condensed in, or omitted from, these interim financial statements. Accordingly, the unaudited condensed consolidated financial statements included herein should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission on February 28, 2022. The December 31, 2021 consolidated balance sheet included herein is derived from the Company's audited consolidated financial statements. The results of operations presented in this quarterly report on Form 10-Q are not necessarily indicative of the results of operations that may be expected for any future periods. In the opinion of management, these unaudited condensed consolidated financial statements include all adjustments, consisting only of normal recurring adjustments, that are necessary for a fair statement of the results of all interim periods reported herein.
Newly-Adopted Accounting Pronouncements	Newly-Adopted Accounting Pronouncements In August 2020, the Financial Accounting Standards Board ("FASB") issued guidance that is expected to reduce complexity and improve comparability of financial reporting associated with accounting for convertible instruments and contracts in an entity’s own equity. The Company adopted this guidance on January 1, 2022 on a modified retrospective basis. The convertible senior notes included on the Company's condensed consolidated balance sheet more closely reflects the principal amounts. Prior to the adoption of this guidance, the Company separated its convertible senior notes into a liability and an equity component. The equity portion is now eliminated. The cumulative effect of the changes was an increase to convertible senior notes of $304.7 million, an increase to deferred income tax liabilities of $0.7 million, an increase to deferred income tax assets of $77.7 million, a decrease to property and equipment of $7.7 million, and a decrease to additional paid-in capital of $375.4 million on the condensed consolidated balance sheet. The net effect of these adjustments was recorded as an increase to retained earnings as of January 1, 2022. Additionally, the new guidance eliminates the use of the treasury stock method for convertible instruments that can be settled in whole or in part with equity, when calculating diluted earnings per share. Instead, it requires application of the if-converted method. Under that method, diluted earnings per share would generally be calculated assuming that all the convertible senior notes were converted solely into shares of common stock at the beginning of the reporting period, unless the result would be antidilutive. The application of the if-converted method reduces the Company’s reported diluted earnings per share after the adoption date. However, in December 2021, the Company made an irrevocable election to settle the principal portion of the convertible senior notes with cash. Accordingly, the if-converted method is only impacted by any potential shares to be delivered for the amount in excess of the principal portion. The changes to the diluted earnings per share guidance did not materially impact our results of operations. With the elimination of the debt discount created by the equity component, amortization of the debt discount is eliminated, which decreases interest expense, and therefore increases net income and earnings per share, from the period of adoption. This had the effect of increasing our basic and diluted earnings per share by $0.08 for the three months ended March 31, 2022.

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Schedule of Marketable Securities

The following is a summary of available-for-sale marketable securities held as of March 31, 2022 and December 31, 2021 (in thousands):


			Gross Unrealized						Classification on Balance Sheet
	Amortized Cost		Gains		Losses		Aggregate Fair Value		Short-Term Marketable Securities		Long-Term Marketable Securities
As of March 31, 2022


Corporate bonds	$	645,755	$	—	$	(17,750)	$	628,005	$	108,981	$	519,024
U.S. government agency obligations	272,133		—		(7,009)		265,124		19,306		245,818
	$	917,888	$	—	$	(24,759)	$	893,129	$	128,287	$	764,842

As of December 31, 2021

Commercial paper	$	25,056	$	—	$	(24)	$	25,032	$	25,032	$	—
Corporate bonds	1,268,991		1,191		(4,275)		1,265,907		459,012		806,895
U.S. government agency obligations	316,728		3		(1,281)		315,450		56,530		258,920
	$	1,610,775	$	1,194	$	(5,580)	$	1,606,389	$	540,574	$	1,065,815

Fair Value, Assets Measured on Recurring and Nonrecurring Basis

The following table details the fair value measurements within the fair value hierarchy of the Company’s financial assets as of March 31, 2022 and December 31, 2021 (in thousands):


	Total Fair Value		Fair Value Measurements at Reporting Date Using
			Level 1		Level 2
As of March 31, 2022
Cash Equivalents and Marketable Securities:
Money market funds	$	1,428	$	1,428	$	—


Corporate bonds	628,005		—		628,005
U.S. government agency obligations	265,124		—		265,124
Mutual funds	22,641		22,641		—
	$	917,198	$	24,069	$	893,129




As of December 31, 2021
Cash Equivalents and Marketable Securities:
Money market funds	$	109,313	$	109,313	$	—
Commercial paper	39,031		—		39,031
Corporate bonds	1,265,907		—		1,265,907

U.S. government agency obligations	315,450		—		315,450
Mutual funds	23,129		23,129		—
	$	1,752,830	$	132,442	$	1,620,388

Schedule of Contractual Maturities of Marketable Securities and Other Investment Related Assets

Contractual maturities of the Company’s available-for-sale marketable securities held as of March 31, 2022 and December 31, 2021 were as follows (in thousands):


	March 31, 2022		December 31, 2021
Due in 1 year or less	$	128,287	$	540,574
Due after 1 year through 5 years	764,842		1,065,815
	$	893,129	$	1,606,389

Accounts Receivable (Tables)

3 Months Ended

Mar. 31, 2022

Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]

Schedule of Accounts Receivable

Net accounts receivable consisted of the following as of March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022		December 31, 2021
Trade accounts receivable	$	511,584	$	501,959
Unbilled accounts receivable	210,488		175,364
Gross accounts receivable	722,072		677,323
Allowances for current expected credit losses and other reserves	(3,279)		(1,397)
Accounts receivable, net	$	718,793	$	675,926

Summary of Allowance for Credit Loss Activity

A summary of activity in the accounts receivable allowance for current expected credit losses and other reserves for the three months ended March 31, 2022 and 2021 is as follows (in thousands):


	March 31, 2022		March 31, 2021
Beginning balance	$	1,397	$	1,822
Charges to income from operations	1,951		923
Collections from customers previously reserved and other	(69)		(1,091)
Ending balance	$	3,279	$	1,654

Incremental Costs to Obtain a Contract with a Customer (Tables)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Schedule of deferred costs associated with obtaining customer contracts


	March 31, 2022		December 31, 2021
Deferred costs included in prepaid and other current assets	$	39,948	$	43,562
Deferred costs included in other assets	28,290		30,436
Total deferred costs	$	68,238	$	73,998

The following table summarizes additional information related to incremental costs to obtain a contract with a customer for the three months ended March 31, 2022 and 2021 (in thousands):


	For the Three Months Ended March 31,
	2022		2021
Amortization expense related to deferred costs	$	15,022	$	13,727
Incremental costs capitalized	9,484		9,872

Acquired Intangible Assets and Goodwill (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Acquired Intangible Assets

Acquired intangible assets that are subject to amortization consisted of the following as of March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022						December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Completed technology	$	328,516	$	(134,891)	$	193,625	$	257,857	$	(128,715)	$	129,142
Customer-related intangible assets	499,945		(224,061)		275,884		398,182		(216,192)		181,990
Non-compete agreements	254		(127)		127		258		(107)		151
Trademarks and trade names	14,663		(6,365)		8,298		8,039		(6,097)		1,942
Acquired license rights	34,810		(556)		34,254		490		(490)		—
Total	$	878,188	$	(366,000)	$	512,188	$	664,826	$	(351,601)	$	313,225

The following were the identified intangible assets acquired and their respective weighted average useful lives (in thousands, except years):


	Gross Carrying Amount		Weighted Average Useful Life (in years)
Customer-related intangible assets	$	100,700	11
Completed technologies	70,900		6
Acquired license rights	34,320		15
Trademarks	6,600		9

Total	$	212,520

Schedule of Goodwill

The change in the carrying amount of goodwill for the three months ended March 31, 2022 was as follows (in thousands):


Balance as of January 1, 2022	$	2,156,254
Acquisition of Linode Limited Liability Company	588,440
Measurement period adjustments related to acquisitions completed in prior years	1,884
Foreign currency translation	(696)
Balance as of March 31, 2022	$	2,745,882

Acquisitions (Tables)

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of Preliminary Allocation of the Purchase Price

The following table presents the preliminary allocation of the purchase price for Linode (in thousands):


Total purchase consideration	$	898,777

Allocation of the purchase consideration:
Cash	$	26,678
Accounts receivable	7,220
Prepaid expenses and other current assets	6,288
Property and equipment	60,670
Operating lease right-of-use assets	16,970
Identifiable intangible assets	212,520
Goodwill	588,440
Deferred income tax assets	2,901
Other assets	652
Total assets acquired	922,339
Accounts payable	(5,387)
Accrued expenses	(970)

Operating lease liabilities	(17,205)


Total liabilities assumed	(23,562)
Net assets acquired	$	898,777

Schedule of Acquired Intangible Assets

Acquired intangible assets that are subject to amortization consisted of the following as of March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022						December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Completed technology	$	328,516	$	(134,891)	$	193,625	$	257,857	$	(128,715)	$	129,142
Customer-related intangible assets	499,945		(224,061)		275,884		398,182		(216,192)		181,990
Non-compete agreements	254		(127)		127		258		(107)		151
Trademarks and trade names	14,663		(6,365)		8,298		8,039		(6,097)		1,942
Acquired license rights	34,810		(556)		34,254		490		(490)		—
Total	$	878,188	$	(366,000)	$	512,188	$	664,826	$	(351,601)	$	313,225

The following were the identified intangible assets acquired and their respective weighted average useful lives (in thousands, except years):


	Gross Carrying Amount		Weighted Average Useful Life (in years)
Customer-related intangible assets	$	100,700	11
Completed technologies	70,900		6
Acquired license rights	34,320		15
Trademarks	6,600		9

Total	$	212,520

Debt (Tables)

3 Months Ended

Mar. 31, 2022

Debt Disclosure [Abstract]

Schedule of Convertible Senior Notes

The 2027 Notes consisted of the following components as of March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022		December 31, 2021
Liability component:
Principal	$	1,150,000	$	1,150,000
Less: debt discount and issuance costs, net of amortization	(10,113)		(169,030)
Net carrying amount	$	1,139,887	$	980,970

Equity component:	$	—	$	220,529

The 2025 Notes consisted of the following components as of March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022		December 31, 2021
Liability component:
Principal	$	1,150,000	$	1,150,000
Less: debt discount and issuance costs, net of amortization	(7,960)		(154,803)
Net carrying amount	$	1,142,040	$	995,197

Equity component:	$	—	$	285,225

Schedule of Interest Expense

The following table sets forth total interest expense included in the condensed consolidated statements of income for the three months ended March 31, 2022 and 2021 (in thousands):


	For the Three Months Ended March 31,
	2022		2021
Amortization of debt discounts and issuance costs	$	1,168	$	17,182
Coupon interest payable on 2025 Notes	359		359
Coupon interest payable on 2027 Notes	1,078		1,078
Interest payable under the Credit Agreement	139		140
Capitalization of interest expense	(49)		(925)
Total interest expense	$	2,695	$	17,834

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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-Subparagraph (SX 210.12-04(a))
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-Name Accounting Standards Codification
-Topic 835
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-Name Accounting Standards Codification
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Reference 7: http://www.xbrl.org/2003/role/exampleRef
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Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
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+ Details

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Schedule of Stock-Based Compensation Expense

The following table summarizes stock-based compensation included in the Company’s condensed consolidated statements of income for the three months ended March 31, 2022 and 2021 (in thousands):


	For the Three Months Ended March 31,
	2022		2021
Cost of revenue	$	6,233	$	7,096
Research and development	20,232		18,369
Sales and marketing	12,326		12,478
General and administrative	17,436		16,362
Total stock-based compensation	56,227		54,305
Provision for income taxes	(14,043)		(13,044)
Total stock-based compensation, net of income taxes	$	42,184	$	41,261

Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2022

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)


	Foreign Currency Translation		Net Unrealized Gains (Losses) on Investments		Total
Balance as of January 1, 2022	$	(71,809)	$	2,704	$	(69,105)
Other comprehensive income (loss)	2,036		(21,542)		(19,506)
Balance as of March 31, 2022	$	(69,773)	$	(18,838)	$	(88,611)

Revenue from Contracts with Customers (Tables)

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table summarizes revenue by geography included in the Company’s condensed consolidated statements of income for the three months ended March 31, 2022 and 2021 (in thousands):


	For the Three Months Ended March 31,
	2022		2021
U.S.	$	481,007	$	463,180
International	422,640		379,528
Total revenue	$	903,647	$	842,708

The following table summarizes revenue by solution category included in the Company’s condensed consolidated statements of income for the three months ended March 31, 2022 and 2021 (in thousands):


	For the Three Months Ended March 31,
	2022		2021
Security	$	381,567	$	310,219
Delivery	444,148		473,669
Compute	77,932		58,820
Total revenue	$	903,647	$	842,708

Net Income per Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share Reconciliation [Abstract]

Schedule of Components Used in Diluted and Basic Income Per Common Share


	For the Three Months Ended March 31,
	2022		2021
Numerator:
Net income	$	119,163	$	155,695
Denominator:
Shares used for basic net income per share	160,494		163,061
Effect of dilutive securities:
Stock options	1		5
RSUs and DSUs	1,320		1,667
Convertible senior notes	1,822		955
Warrants related to issuance of convertible senior notes	—		—
Shares used for diluted net income per share	163,637		165,688
Basic net income per share	$	0.74	$	0.95
Diluted net income per share	$	0.73	$	0.94

Schedule of Shares Excluded from Computation of Diluted Net Income Per Share

The number of potentially outstanding common shares excluded from the computation of diluted net income per share for the three months ended March 31, 2022 and 2021 are as follows (in thousands):


	For the Three Months Ended March 31,
	2022	2021

Service-based RSUs	2,234	2,070
Market- and performance-based RSUs	1,054	1,338
Convertible senior notes	—	9,898
Warrants related to issuance of convertible senior notes	21,991	21,991
Total shares excluded from computation	25,279	35,297

Nature of Business and Basis of Presentation (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) server country segment $ / shares	Mar. 31, 2021 $ / shares	Jan. 01, 2022 USD ($)	Dec. 31, 2021 USD ($)
Schedule of Equity Method Investments [Line Items]
Number of servers (more than) \| server	350,000
Number of countries in which servers are located (more than) \| country	130
Number of reportable segments \| segment	1
Number of operating segments \| segment	1
Convertible senior notes	$ 2,281,927			$ 1,976,167
Deferred income tax liabilities	41,131			40,974
Deferred income tax assets	265,946			168,342
Property and equipment, net	(1,579,833)			(1,534,329)
Additional paid-in capital	$ (2,974,529)			$ (3,340,822)
Basic net income per share (in dollars per share) \| $ / shares	$ 0.74	$ 0.95
Diluted net income per share (in dollars per share) \| $ / shares	0.73	$ 0.94
Cumulative-effect adjustment from adoption of new accounting pronouncement
Schedule of Equity Method Investments [Line Items]
Convertible senior notes			$ 304,700
Deferred income tax liabilities			700
Deferred income tax assets			77,700
Property and equipment, net			7,700
Additional paid-in capital			$ 375,400
Basic net income per share (in dollars per share) \| $ / shares	0.08
Diluted net income per share (in dollars per share) \| $ / shares	$ 0.08

Fair Value Measurements - Marketable Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Marketable Securities [Line Items]
Amortized Cost	$ 917,888	$ 1,610,775
Gross Unrealized Gains	0	1,194
Gross Unrealized Losses	(24,759)	(5,580)
Aggregate Fair Value	893,129	1,606,389
Short-Term Marketable Securities	128,287	540,574
Long-Term Marketable Securities	764,842	1,065,815
Commercial paper
Marketable Securities [Line Items]
Amortized Cost		25,056
Gross Unrealized Gains		0
Gross Unrealized Losses		(24)
Aggregate Fair Value		25,032
Short-Term Marketable Securities		25,032
Long-Term Marketable Securities		0
Corporate bonds
Marketable Securities [Line Items]
Amortized Cost	645,755	1,268,991
Gross Unrealized Gains	0	1,191
Gross Unrealized Losses	(17,750)	(4,275)
Aggregate Fair Value	628,005	1,265,907
Short-Term Marketable Securities	108,981	459,012
Long-Term Marketable Securities	519,024	806,895
Available-for-sale marketable securities, continuous unrealized loss position for more than 12 months	43,800
Unrealized loss related to corporate bonds	1,100
U.S. government agency obligations
Marketable Securities [Line Items]
Amortized Cost	272,133	316,728
Gross Unrealized Gains	0	3
Gross Unrealized Losses	(7,009)	(1,281)
Aggregate Fair Value	265,124	315,450
Short-Term Marketable Securities	19,306	56,530
Long-Term Marketable Securities	$ 245,818	$ 258,920

Fair Value Measurements - Schedule of Fair Value Measurement (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate Fair Value	$ 893,129	$ 1,606,389
Cash equivalents and marketable securities	917,198	1,752,830
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	1,428	109,313
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate Fair Value	628,005	1,265,907
U.S. government agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities and cash equivalents	265,124	315,450
Aggregate Fair Value	265,124	315,450
Mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate Fair Value	22,641	23,129
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities and cash equivalents		39,031
Aggregate Fair Value		25,032
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	24,069	132,442
Level 1 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	1,428	109,313
Level 1 \| Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate Fair Value	0	0
Level 1 \| U.S. government agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities and cash equivalents	0	0
Level 1 \| Mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate Fair Value	22,641	23,129
Level 1 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities and cash equivalents		0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents and marketable securities	893,129	1,620,388
Level 2 \| Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0	0
Level 2 \| Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate Fair Value	628,005	1,265,907
Level 2 \| U.S. government agency obligations
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities and cash equivalents	265,124	315,450
Level 2 \| Mutual funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Aggregate Fair Value	$ 0	0
Level 2 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities and cash equivalents		$ 39,031

Fair Value Measurements - Contractual Maturities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value Disclosures [Abstract]
Due in 1 year or less	$ 128,287	$ 540,574
Due after 1 year through 5 years	764,842	1,065,815
Aggregate Fair Value	$ 893,129	$ 1,606,389

Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	$ 722,072	$ 677,323
Allowances for current expected credit losses and other reserves	(3,279)	(1,397)
Accounts receivable, net	718,793	675,926
Unbilled accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	210,488	175,364
Trade accounts receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Gross accounts receivable	$ 511,584	$ 501,959

Accounts Receivables - Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 1,397	$ 1,822
Charges to income from operations	1,951	923
Collections from customers previously reserved and other	(69)	(1,091)
Ending balance	$ 3,279	$ 1,654

Incremental Costs to Obtain a Contract with a Customer (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Capitalized Contract Cost [Line Items]
Amortization expense related to deferred costs	$ 15,022	$ 13,727
Incremental costs capitalized	9,484	$ 9,872
Commission and incentive payments
Capitalized Contract Cost [Line Items]
Total deferred costs	68,238		$ 73,998
Commission and incentive payments \| Deferred costs included in prepaid and other current assets
Capitalized Contract Cost [Line Items]
Total deferred costs	39,948		43,562
Commission and incentive payments \| Deferred costs included in other assets
Capitalized Contract Cost [Line Items]
Total deferred costs	$ 28,290		$ 30,436

Acquired Intangible Assets and Goodwill - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 878,188	$ 664,826
Accumulated Amortization	(366,000)	(351,601)
Net Carrying Amount	512,188	313,225
Completed technologies
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	328,516	257,857
Accumulated Amortization	(134,891)	(128,715)
Net Carrying Amount	193,625	129,142
Acquired license rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	499,945	398,182
Accumulated Amortization	(224,061)	(216,192)
Net Carrying Amount	275,884	181,990
Non-compete agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	254	258
Accumulated Amortization	(127)	(107)
Net Carrying Amount	127	151
Trademarks and trade names
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	14,663	8,039
Accumulated Amortization	(6,365)	(6,097)
Net Carrying Amount	8,298	1,942
Acquired license rights
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	34,810	490
Accumulated Amortization	(556)	(490)
Net Carrying Amount	$ 34,254	$ 0

Acquired Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of acquired intangible assets	$ 13,644	$ 11,427
Future amortization expense to be recognized in remainder of 2022	50,400
Future amortization expense 2023	61,300
Future amortization expense 2024	65,800
Future amortization expense 2025	66,200
Future amortization expense 2026	$ 59,900

Acquired Intangible Assets and Goodwill - Schedule of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Schedule of Goodwill [Roll Forward]
Balance as of January 1, 2022	$ 2,156,254
Acquisition of Linode Limited Liability Company	588,440
Measurement period adjustments related to acquisitions completed in prior years	1,884
Foreign currency translation	(696)
Balance as of March 31, 2022	$ 2,745,882

Acquisitions - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
Acquisitions - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2022	Mar. 31, 2022
Business Combination, Separately Recognized Transactions [Line Items]
Acquisition-related costs		$ 10.3
Linode
Business Combination, Separately Recognized Transactions [Line Items]
Cash paid to acquire business	$ 898.8
Weighted Average Useful Life (in years)	9 years 8 months 12 days

Acquisitions - Schedule of Preliminary Allocation of the Purchase Price (Details) - USD ($) $ in Thousands	1 Months Ended
	Mar. 31, 2022	Dec. 31, 2021
Allocation of the purchase consideration:
Goodwill	$ 2,745,882	$ 2,156,254
Linode
Business Combination, Separately Recognized Transactions [Line Items]
Total purchase consideration	898,777
Allocation of the purchase consideration:
Cash	26,678
Accounts receivable	7,220
Prepaid expenses and other current assets	6,288
Property and equipment	60,670
Operating lease right-of-use assets	16,970
Identifiable intangible assets	212,520
Goodwill	588,440
Deferred income tax assets	2,901
Other assets	652
Total assets acquired	922,339
Accounts payable	(5,387)
Accrued expenses	(970)
Operating lease liabilities	(17,205)
Total liabilities assumed	(23,562)
Net assets acquired	$ 898,777

Acquisitions - Schedule of Acquired Intangible Assets (Details) - Linode $ in Thousands	1 Months Ended
	Mar. 31, 2022 USD ($)
Business Combination, Separately Recognized Transactions [Line Items]
Gross Carrying Amount	$ 212,520
Weighted Average Useful Life (in years)	9 years 8 months 12 days
Customer-related intangible assets
Business Combination, Separately Recognized Transactions [Line Items]
Gross Carrying Amount	$ 100,700
Weighted Average Useful Life (in years)	11 years
Completed technologies
Business Combination, Separately Recognized Transactions [Line Items]
Gross Carrying Amount	$ 70,900
Weighted Average Useful Life (in years)	6 years
Acquired license rights
Business Combination, Separately Recognized Transactions [Line Items]
Gross Carrying Amount	$ 34,320
Weighted Average Useful Life (in years)	15 years
Trademarks
Business Combination, Separately Recognized Transactions [Line Items]
Gross Carrying Amount	$ 6,600
Weighted Average Useful Life (in years)	9 years

Debt - Narrative (Details) $ / shares in Units, shares in Millions	1 Months Ended		3 Months Ended
	Aug. 31, 2019 USD ($) d $ / shares shares	May 31, 2018 USD ($) d $ / shares shares	Mar. 31, 2022 USD ($) $ / shares	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)	Feb. 28, 2014 USD ($)
Debt Instrument [Line Items]
Repurchases of common stock			$ 102,853,000	$ 58,241,000
Credit Agreement
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 500,000,000
Debt term		5 years
Maximum borrowing capacity under specific conditions		$ 1,000,000,000
Outstanding borrowings			75,000,000
Credit Agreement \| Minimum
Debt Instrument [Line Items]
Commitment fee		0.075%
Credit Agreement \| Minimum \| Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate		0.00%
Credit Agreement \| Minimum \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		0.875%
Credit Agreement \| Maximum
Debt Instrument [Line Items]
Commitment fee		0.15%
Credit Agreement \| Maximum \| Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate		0.25%
Credit Agreement \| Maximum \| LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate		1.25%
2027 Notes \| Convertible Debt
Debt Instrument [Line Items]
Debt issued	$ 1,150,000,000		1,150,000,000		$ 1,150,000,000
Interest rate	0.375%
Threshold trading days exceeding price \| d	20
Threshold consecutive trading days exceeding price \| d	30
Threshold greater than percentage of stock price trigger	130.00%
Threshold trading days not exceeding price	5 days
Threshold less than percentage of stock price trigger	98.00%
Conversion price (in dollars per share) \| $ / shares	$ 116.18
Potential conversion shares of convertible debt (in shares) \| shares	9.9
Fair value of convertible senior notes			$ 1,327,000,000		1,359,300,000
Closing price of common stock (in dollars per share) \| $ / shares			$ 119.39
Repurchases of common stock	$ 100,000,000
Payments for purchase of convertible note hedge and warrant transactions	127,100,000
Payments for note hedge transactions	$ 312,200,000
Warrants outstanding (in shares) \| shares	9.9
Warrant strike price (in dollars per share) \| $ / shares	$ 178.74
Proceeds from sale of warrants	$ 185,200,000
Conversion rate	0.0086073
2025 Notes \| Convertible Debt
Debt Instrument [Line Items]
Debt issued		$ 1,150,000,000	$ 1,150,000,000		1,150,000,000
Interest rate		0.125%
Threshold trading days exceeding price \| d		20
Threshold consecutive trading days exceeding price \| d		30
Threshold greater than percentage of stock price trigger		130.00%
Threshold trading days not exceeding price		5 days
Threshold less than percentage of stock price trigger		98.00%
Conversion price (in dollars per share) \| $ / shares		$ 95.10
Potential conversion shares of convertible debt (in shares) \| shares		12.1
Fair value of convertible senior notes			$ 1,518,800,000		$ 1,510,400,000
Closing price of common stock (in dollars per share) \| $ / shares			$ 119.39
Repurchases of common stock		$ 46,200,000
Payments for purchase of convertible note hedge and warrant transactions		141,800,000
Payments for note hedge transactions		$ 261,700,000
Warrants outstanding (in shares) \| shares		12.1
Warrant strike price (in dollars per share) \| $ / shares		$ 149.18
Proceeds from sale of warrants		$ 119,900,000
Threshold consecutive trading days not exceeding price		5 days
Conversion rate		0.010515
2019 Notes \| Convertible Debt
Debt Instrument [Line Items]
Debt issued						$ 690,000,000

Debt - Schedule of Convertible Senior Notes (Details) - Convertible Debt - USD ($)	Mar. 31, 2022	Dec. 31, 2021	Aug. 31, 2019	May 31, 2018
2027 Notes
Liability component:
Principal	$ 1,150,000,000	$ 1,150,000,000	$ 1,150,000,000
Less: debt discount and issuance costs, net of amortization	(10,113,000)	(169,030,000)
Net carrying amount	1,139,887,000	980,970,000
Equity component:		220,529,000
2025 Notes
Liability component:
Principal	1,150,000,000	1,150,000,000		$ 1,150,000,000
Less: debt discount and issuance costs, net of amortization	(7,960,000)	(154,803,000)
Net carrying amount	$ 1,142,040,000	995,197,000
Equity component:		$ 285,225,000

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Debt - Schedule of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Debt Instrument [Line Items]
Amortization of debt discounts and issuance costs	$ 1,168	$ 17,182
Capitalization of interest expense	(49)	(925)
Total interest expense	2,695	17,834
Credit Agreement
Debt Instrument [Line Items]
Interest on debt instruments	139	140
Convertible Debt \| 2025 Notes
Debt Instrument [Line Items]
Interest on debt instruments	359	359
Convertible Debt \| 2027 Notes
Debt Instrument [Line Items]
Interest on debt instruments	$ 1,078	$ 1,078

Restructuring (Details) - USD ($)	3 Months Ended
Restructuring (Details) - USD ($)	Mar. 31, 2022	Mar. 31, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring charge	$ 8,016,000	$ 7,116,000
2022 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charge	7,500,000
2021 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charge	(100,000)
Restructuring and related cost, cost incurred to date	3,700,000
2020 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Restructuring charge	0	7,000,000
Restructuring and related cost, cost incurred to date	$ 31,500,000
2020 Restructuring Plan \| Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring charge		6,300,000
2020 Restructuring Plan \| Internal-Use Software Charges
Restructuring Cost and Reserve [Line Items]
Restructuring charge		$ 700,000
GO-NET
Restructuring Cost and Reserve [Line Items]
Ownership percent	20.00%

Stockholders' Equity - Narrative (Details) - USD ($) $ in Thousands, shares in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Jan. 31, 2022
Class of Stock [Line Items]
Stock repurchase program, authorized amount			$ 1,800,000
Repurchases of common stock	$ 102,853	$ 58,241
Amortization expense from capitalized stock-based compensation	$ 7,600	$ 7,700
Common Stock
Class of Stock [Line Items]
Shares repurchased during period (in shares)	0.9
Repurchases of common stock	$ 102,900

Stockholders' Equity - Schedule of Stock Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 56,227	$ 54,305
Provision for income taxes	(14,043)	(13,044)
Total stock-based compensation, net of income taxes	42,184	41,261
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	6,233	7,096
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	20,232	18,369
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	12,326	12,478
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 17,436	$ 16,362

Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ 4,530,014	$ 4,251,296
Other comprehensive income (loss)	(19,506)	(27,146)
Ending balance	4,300,522	4,321,363
Total
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(69,105)	(20,201)
Ending balance	(88,611)	$ (47,347)
Foreign Currency Translation
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(71,809)
Other comprehensive income (loss)	2,036
Ending balance	(69,773)
Net Unrealized Gains (Losses) on Investments
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	2,704
Other comprehensive income (loss)	(21,542)
Ending balance	$ (18,838)

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
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-Name Accounting Standards Codification
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+ Details

Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of Revenue [Line Items]
Revenue	$ 903,647	$ 842,708
Security
Disaggregation of Revenue [Line Items]
Revenue	381,567	310,219
Delivery
Disaggregation of Revenue [Line Items]
Revenue	444,148	473,669
Compute
Disaggregation of Revenue [Line Items]
Revenue	77,932	58,820
U.S.
Disaggregation of Revenue [Line Items]
Revenue	481,007	463,180
International
Disaggregation of Revenue [Line Items]
Revenue	$ 422,640	$ 379,528

- Definition

Amount, including tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value-added and excise.

+ References

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-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Revenue from Contracts with Customers - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2022 USD ($) solution_category	Mar. 31, 2021 USD ($)
Revenue from Contract with Customer [Abstract]
Number of solutions \| solution_category	3
Revenue recognized	$ 56.2	$ 43.3
Remaining performance obligation	$ 3,200.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Remaining performance obligations, percentage	70.00%
Remaining performance obligation, expected timing	12 months

Income Taxes - Narrative (Details)	3 Months Ended
Income Taxes - Narrative (Details)	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Effective income tax rate	21.20%	7.10%

Net Income per Share - Schedule of Components Used in Diluted and Basic Income Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net income	$ 119,163	$ 155,695
Denominator:
Shares used for basic net income per share (in shares)	160,494	163,061
Effect of dilutive securities:
Stock options (in shares)	1	5
RSUs and DSU (in shares)	1,320	1,667
Convertible senior notes (in shares)	1,822	955
Warrants related to issuance of convertible senior notes (in shares)	0	0
Shares used for diluted net income per share	163,637	165,688
Basic net income per share (in dollars per share)	$ 0.74	$ 0.95
Diluted net income per share (in dollars per share)	$ 0.73	$ 0.94

Net Income per Share - Schedule of Shares Excluded from Computation of Diluted EPS (Details) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	25,279	35,297
Service-based RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	2,234	2,070
Market- and performance-based RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	1,054	1,338
Convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	0	9,898
Warrants related to issuance of convertible senior notes
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities (in shares)	21,991	21,991