2020 Q1 Form 10-K Financial Statement

#000156459020011799 Filed on March 19, 2020

View on sec.gov

Income Statement

Concept 2020 Q1 2020 2019 Q1
Revenue $183.6M $696.3M $163.7M
YoY Change 12.16% 14.44% 19.75%
Cost Of Revenue $56.70M $215.6M $47.20M
YoY Change 20.13% 24.18% 33.71%
Gross Profit $126.9M $480.7M $116.5M
YoY Change 8.93% 10.56% 14.89%
Gross Profit Margin 69.12% 69.04% 71.17%
Selling, General & Admin $102.3M $420.4M $96.80M
YoY Change 5.68% 3.73% -2.62%
% of Gross Profit 80.61% 87.46% 83.09%
Research & Development $53.20M $199.8M $41.40M
YoY Change 28.5% 21.98% 20.35%
% of Gross Profit 41.92% 41.56% 35.54%
Depreciation & Amortization $17.30M $58.20M $11.60M
YoY Change 49.14% 25.7% 7.41%
% of Gross Profit 13.63% 12.11% 9.96%
Operating Expenses $155.5M $620.2M $138.2M
YoY Change 12.52% 8.99% 3.21%
Operating Profit -$28.60M -$139.5M -$21.70M
YoY Change 31.8% 3.9% -33.23%
Interest Expense -$1.200M -$2.300M -$100.0K
YoY Change 1100.0% 627.85% -50.0%
% of Operating Profit
Other Income/Expense, Net -$300.0K -$3.466M $2.600M
YoY Change -111.54% -358.85% 1200.0%
Pretax Income -$30.10M -$142.9M -$19.20M
YoY Change 56.77% 7.3% -40.92%
Income Tax $300.0K $1.410M -$600.0K
% Of Pretax Income
Net Earnings -$30.40M -$144.3M -$19.70M
YoY Change 54.31% 7.23% -39.76%
Net Earnings / Revenue -16.56% -20.73% -12.03%
Basic Earnings Per Share
Diluted Earnings Per Share -$202.7K -$976.3K -$152.8K
COMMON SHARES
Basic Shares Outstanding 150.7M 144.3M
Diluted Shares Outstanding

Balance Sheet

Concept 2020 Q1 2020 2019 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $195.6M $195.6M $217.5M
YoY Change -10.08% -10.07% 4.54%
Cash & Equivalents $195.6M $195.6M $217.5M
Short-Term Investments $0.00
Other Short-Term Assets $4.247M $52.70M $3.237M
YoY Change 31.2% 46.8% 11.74%
Inventory
Prepaid Expenses $16.42M $9.323M
Receivables $209.4M $209.4M $175.1M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $457.7M $457.7M $428.6M
YoY Change 6.81% 6.79% 7.36%
LONG-TERM ASSETS
Property, Plant & Equipment $191.0M $388.8M $137.7M
YoY Change 38.69% 182.35% 11.07%
Goodwill $18.74M $18.74M
YoY Change 0.0% 15.02%
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $31.98M $69.60M $11.05M
YoY Change 189.53% 6.75% 104.44%
Total Long-Term Assets $502.3M $502.3M $221.6M
YoY Change 126.65% 126.67% 43.55%
TOTAL ASSETS
Total Short-Term Assets $457.7M $457.7M $428.6M
Total Long-Term Assets $502.3M $502.3M $221.6M
Total Assets $960.0M $960.0M $650.2M
YoY Change 47.65% 47.65% 17.45%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $16.75M $16.80M $15.43M
YoY Change 8.56% 9.09% -9.42%
Accrued Expenses $98.60M $98.60M $62.20M
YoY Change 58.52% 58.52% -2.66%
Deferred Revenue $407.5M $353.6M
YoY Change 15.24% 21.13%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $54.60M $54.60M $28.30M
YoY Change 92.93% 92.93% 50.53%
Total Short-Term Liabilities $577.4M $577.4M $463.2M
YoY Change 24.66% 24.65% 17.57%
LONG-TERM LIABILITIES
Long-Term Debt $40.00M $123.4M $40.00M
YoY Change 0.0% 45.86% 0.0%
Other Long-Term Liabilities $14.28M $236.8M $49.51M
YoY Change -71.16% 233.52% 1701.6%
Total Long-Term Liabilities $54.28M $360.2M $89.51M
YoY Change -39.36% 131.49% 109.39%
TOTAL LIABILITIES
Total Short-Term Liabilities $577.4M $577.4M $463.2M
Total Long-Term Liabilities $54.28M $360.2M $89.51M
Total Liabilities $937.6M $937.6M $618.8M
YoY Change 51.54% 51.52% 14.88%
SHAREHOLDERS EQUITY
Retained Earnings -$1.278B -$1.134B
YoY Change 12.73% 9.12%
Common Stock $1.302B $1.166B
YoY Change 11.63% 10.57%
Preferred Stock
YoY Change
Treasury Stock (at cost) $1.177M $1.177M
YoY Change 0.0% 0.0%
Treasury Stock Shares $3.053M $3.053M
Shareholders Equity $22.36M $22.40M $31.41M
YoY Change
Total Liabilities & Shareholders Equity $960.0M $960.0M $650.2M
YoY Change 47.65% 47.65% 17.45%

Cashflow Statement

Concept 2020 Q1 2020 2019 Q1
OPERATING ACTIVITIES
Net Income -$30.40M -$144.3M -$19.70M
YoY Change 54.31% 7.23% -39.76%
Depreciation, Depletion And Amortization $17.30M $58.20M $11.60M
YoY Change 49.14% 25.7% 7.41%
Cash From Operating Activities $15.00M $44.71M $31.30M
YoY Change -52.08% -19.18% 39.11%
INVESTING ACTIVITIES
Capital Expenditures -$2.700M $5.452M -$3.600M
YoY Change -25.0% -63.18% -48.57%
Acquisitions
YoY Change
Other Investing Activities $100.0K -$105.0K $1.900M
YoY Change -94.74% -92.58% 1800.0%
Cash From Investing Activities -$2.600M -$13.30M -$1.800M
YoY Change 44.44% -17.68% -73.91%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $29.39M
YoY Change 34.44%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -17.60M -53.42M -12.30M
YoY Change 43.09% 80.66% 80.88%
NET CHANGE
Cash From Operating Activities 15.00M 44.71M 31.30M
Cash From Investing Activities -2.600M -13.30M -1.800M
Cash From Financing Activities -17.60M -53.42M -12.30M
Net Change In Cash -5.200M -22.17M 17.20M
YoY Change -130.23% -337.62% 95.45%
FREE CASH FLOW
Cash From Operating Activities $15.00M $44.71M $31.30M
Capital Expenditures -$2.700M $5.452M -$3.600M
Free Cash Flow $17.70M $39.26M $34.90M
YoY Change -49.28% -3.09% 18.31%

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CY2020 box Increase Decrease In Capitalized Contract Costs
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CY2019 us-gaap Increase Decrease In Accrued Liabilities And Other Operating Liabilities
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CY2020 box Increase Decrease In Operating Lease Liabilities
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CY2018 us-gaap Increase Decrease In Contract With Customer Liability
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CY2019 us-gaap Payments To Acquire Intangible Assets
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CY2020 box Proceeds From Sale Of Strategic Investment
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CY2019 box Proceeds From Sale Of Strategic Investment
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CY2019 us-gaap Payments To Acquire Businesses Gross
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CY2020 us-gaap Net Cash Provided By Used In Investing Activities
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CY2019 us-gaap Net Cash Provided By Used In Investing Activities
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CY2018 us-gaap Net Cash Provided By Used In Investing Activities
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CY2018 box Proceeds From Repayment Of Debt Net Of Issuance Cost
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CY2018 us-gaap Repayments Of Long Term Lines Of Credit
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CY2020 us-gaap Proceeds From Stock Options Exercised
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CY2019 us-gaap Proceeds From Stock Options Exercised
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CY2018 us-gaap Proceeds From Stock Options Exercised
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CY2019 us-gaap Proceeds From Issuance Of Common Stock
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CY2018 us-gaap Proceeds From Issuance Of Common Stock
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CY2019 us-gaap Net Cash Provided By Used In Financing Activities
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CY2018 us-gaap Net Cash Provided By Used In Financing Activities
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CY2019 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2018 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Period Increase Decrease Including Exchange Rate Effect
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CY2019Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2018Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents Including Disposal Group And Discontinued Operations
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CY2020 us-gaap Interest Paid Net
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InterestPaidNet
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CY2018 us-gaap Interest Paid Net
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CY2020 us-gaap Income Taxes Paid Net
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CY2019 us-gaap Income Taxes Paid Net
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CY2018 us-gaap Income Taxes Paid Net
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CY2020 us-gaap Capital Expenditures Incurred But Not Yet Paid
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CY2019 us-gaap Capital Expenditures Incurred But Not Yet Paid
CapitalExpendituresIncurredButNotYetPaid
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CY2018 us-gaap Capital Expenditures Incurred But Not Yet Paid
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CY2020 us-gaap Costs Incurred Asset Retirement Obligation Incurred
CostsIncurredAssetRetirementObligationIncurred
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CY2019 us-gaap Costs Incurred Asset Retirement Obligation Incurred
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CY2020 box Stock Based Compensation Expense Capitalized In Internally Developed Software Costs
StockBasedCompensationExpenseCapitalizedInInternallyDevelopedSoftwareCosts
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CY2019 box Stock Based Compensation Expense Capitalized In Internally Developed Software Costs
StockBasedCompensationExpenseCapitalizedInInternallyDevelopedSoftwareCosts
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CY2020 box Accrued On Premises Software
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CY2020 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
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CY2019 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
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CY2018 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
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CY2019 box Noncash Or Part Noncash Acquisition Noncash Financial Or Equity Instrument Consideration Shares Issued Value
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1053000
CY2019 box Noncash Or Part Noncash Acquisition Contingent Consideration Accruals
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CY2019Q1 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2018Q1 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2019Q1 us-gaap Restricted Cash
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CY2018Q1 us-gaap Restricted Cash
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CY2017Q1 us-gaap Restricted Cash
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CY2018Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2017Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2020Q1 us-gaap Cash And Cash Equivalents At Carrying Value
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CY2019Q1 us-gaap Restricted Cash
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CY2018Q1 us-gaap Restricted Cash
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CY2019Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2018Q1 us-gaap Cash Cash Equivalents Restricted Cash And Restricted Cash Equivalents
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CY2015Q1 us-gaap Preferred Stock Shares Authorized
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CY2020 us-gaap Use Of Estimates
UseOfEstimates
<p style="margin-top:6pt;margin-bottom:0pt;margin-left:5.24%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Use of Estimates</p> <p style="margin-top:6pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make, on an ongoing basis, estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ from these estimates. Such estimates include, but are not limited to, the determination of the allowance for accounts receivable, fair value of acquired intangible assets and goodwill, useful lives of acquired intangible assets and property and equipment, timing and costs associated with our asset retirement obligations, the nature and timing of satisfaction of performance obligations, estimate of standalone selling price allocation included in contracts with multiple performance obligations, the estimated expected benefit period for deferred commissions, the estimated useful life of capitalized internally developed software costs, observable price changes of non-marketable equity securities, the incremental borrowing rate we use to determine our lease liabilities, fair values of stock-based awards, legal contingencies, the valuation of deferred income tax assets, and unrecognized tax benefits, among others. Management bases its estimates on historical experience and on various other assumptions which management believes to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.</p> <p style="margin-top:12pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">In accordance with our property and equipment policy, we review the estimated useful lives of our fixed assets on an ongoing basis. A review of our fixed assets indicated that the actual lives of certain furniture and fixtures were longer than previously estimated useful lives used for depreciation purposes in our financial statements. As a result, effective September 1, 2018, we changed the estimated useful lives of certain furniture and fixtures to better reflect the estimated periods during which these assets will remain in service. The estimated useful lives of these assets previously depreciated for three years have now been increased to five years. This change was made prospectively for all existing furniture and fixtures as of September 1, 2018 and will continue to apply to all furniture and fixtures purchased thereafter. The effect of this change in estimate to net loss and net loss per share was not material in fiscal year 2019.</p>
CY2020 box Number Of Revenue Sources
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3
CY2020 box Sales Commission Estimated Period Of Amortization On Straight Line Basis
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CY2020 box Deferred Sales Commissions Costs
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CY2019 box Deferred Sales Commissions Costs
DeferredSalesCommissionsCosts
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CY2019 us-gaap Amortization Of Deferred Sales Commissions
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CY2018 us-gaap Amortization Of Deferred Sales Commissions
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CY2020 us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<p style="margin-top:18pt;margin-bottom:0pt;margin-left:5.24%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Certain Risks and Concentrations</p> <p style="margin-top:6pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. Although we deposit our cash with multiple financial institutions, our deposits, at times, may exceed deposit insurance coverage limits.</p> <p style="margin-top:12pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We sell to a broad range of customers. Our revenue is derived substantially from the United States across a multitude of industries. Accounts receivable are derived from the delivery of our services to customers primarily located in the United States. We accept and settle our accounts receivable using credit cards, electronic payments and checks. A majority of our lower dollar value invoices are settled by credit card on or near the date of the invoice. We do not require collateral from customers to secure accounts receivable. We maintain an allowance for doubtful accounts based upon the expected collectability, which takes into consideration specific customer creditworthiness and current economic trends. We believe collections of our accounts receivable are probable based on the size, industry diversification, financial condition and past transaction history of our customers. As of January 31, 2020 and 2019, one reseller, which is also a customer, accounted for more than 10% of total accounts receivable. One reseller, which is also a customer, represented 10% and 11% of revenue for the years ended January 31, 2020 and 2019, respectively. No single customer represented over 10% of revenue in the year ended January 31, 2018.</p> <p style="margin-top:12pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">We serve our customers and users from data center facilities operated by third parties. In order to reduce the risk of down time of our subscription services, we have established data centers and third-party cloud computing and hosting providers in various locations in the United States and abroad. We have internal procedures to restore services in the event of disaster at any one of our current data center facilities. Even with these procedures for disaster recovery in place, our cloud services could be significantly interrupted during the implementation of the procedures to restore services.</p> <p style="margin-top:18pt;margin-bottom:0pt;margin-left:5.24%;text-indent:0%;font-weight:bold;font-style:italic;font-family:Times New Roman;font-size:10pt;text-transform:none;font-variant: normal;">Geographic Locations</p> <p style="margin-top:6pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">For the years ended January 31, 2020, 2019 and 2018, revenue attributable to customers in the United States was 75%, 77% and 78%, respectively. For the year ended January 31, 2020, revenue attributable to customers in Japan was 10%. No country outside of the United States comprised 10% or greater of our revenue for the years ended January 31, 2019 and 2018.</p> <p style="margin-top:12pt;margin-bottom:0pt;text-indent:5.24%;font-family:Times New Roman;font-size:10pt;font-weight:normal;font-style:normal;text-transform:none;font-variant: normal;">Substantially all of our net assets are located in the United States. As of January 31, 2020 and 2019, property and equipment located in the United States was approximately 94% and 91%, respectively.</p>
CY2020 us-gaap Foreign Currency Transaction Loss Before Tax
ForeignCurrencyTransactionLossBeforeTax
1100000
CY2020 box Highly Liquid Investments Initial Maturity Period
HighlyLiquidInvestmentsInitialMaturityPeriod
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CY2020 box Impairment Adjustment
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0
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CY2020 us-gaap Goodwill Impairment Loss
GoodwillImpairmentLoss
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CY2020 us-gaap Advertising Expense
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CY2019 us-gaap Advertising Expense
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CY2018 us-gaap Advertising Expense
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CY2020 box Tax Position Recognized Likelihood Percentage
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CY2020Q1 us-gaap Revenue Remaining Performance Obligation Percentage
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CY2019Q1 us-gaap Other Assets Current
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CY2020 us-gaap Depreciation
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CY2020Q1 us-gaap Operating Lease Right Of Use Asset
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CY2020Q1 us-gaap Deposits Assets Noncurrent
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CY2020Q1 us-gaap Capitalized Computer Software Net
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CY2019Q1 us-gaap Capitalized Computer Software Net
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CY2019Q1 us-gaap Other Assets Miscellaneous Noncurrent
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CY2020Q1 us-gaap Other Assets Noncurrent
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CY2020 us-gaap Employee Service Share Based Compensation Allocation Of Recognized Period Costs Capitalized Amount
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CY2019 us-gaap Employee Service Share Based Compensation Allocation Of Recognized Period Costs Capitalized Amount
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CY2020Q1 us-gaap Lessee Finance Lease Term Of Contract1
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CY2020 box Non Cancellable Lease Expiration Year
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CY2020 us-gaap Finance Lease Interest Expense
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CY2020 us-gaap Operating Lease Cost
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CY2020 us-gaap Variable Lease Cost
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CY2020 us-gaap Sublease Income
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CY2020 us-gaap Lease Cost
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CY2020 us-gaap Finance Lease Interest Payment On Liability
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CY2020 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2020 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
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CY2020Q1 us-gaap Operating Lease Weighted Average Discount Rate Percent
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CY2020Q1 us-gaap Finance Lease Weighted Average Discount Rate Percent
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0.0456
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52394000
CY2020Q1 us-gaap Finance Lease Liability Payments Due Next Twelve Months
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1081000
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26500000
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25900000
CY2020 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
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13687000
CY2019 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
11569000
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
8858000
CY2020Q1 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
63560000
CY2019Q1 us-gaap Unrecognized Tax Benefits
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49883000
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36194000
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36194000
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UnrecognizedTaxBenefits
28644000
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10000
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971000
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20000
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337000
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2140000
CY2020Q1 us-gaap Severance Costs1
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1650000
CY2020Q1 us-gaap Payments For Restructuring
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600000
CY2020 us-gaap Number Of Operating Segments
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1
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401(k) Savings Plan
CY2020 us-gaap Defined Contribution Plan Maximum Annual Contributions Per Employee Percent
DefinedContributionPlanMaximumAnnualContributionsPerEmployeePercent
1

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