2020 Q4 Form 10-K Financial Statement

#000132680121000014 Filed on January 28, 2021

View on sec.gov

Income Statement

Concept 2020 Q4 2020 2019 Q4
Revenue $28.07B $85.97B $21.08B
YoY Change 33.16% 21.6% 24.64%
Cost Of Revenue $5.210B $16.69B $3.491B
YoY Change 49.24% 30.71% 24.86%
Gross Profit $22.86B $69.27B $17.59B
YoY Change 29.96% 19.59% 24.6%
Gross Profit Margin 81.44% 80.58% 83.44%
Selling, General & Admin $4.880B $18.16B $4.855B
YoY Change 0.51% -10.75% 41.01%
% of Gross Profit 21.35% 26.21% 27.6%
Research & Development $5.207B $18.45B $3.878B
YoY Change 34.27% 35.64% 35.83%
% of Gross Profit 22.78% 26.63% 22.05%
Depreciation & Amortization $1.863B $6.862B $1.468B
YoY Change 26.91% 19.53% 19.84%
% of Gross Profit 8.15% 9.91% 8.35%
Operating Expenses $10.09B $36.60B $8.733B
YoY Change 15.5% 7.84% 38.66%
Operating Profit $12.78B $32.67B $8.858B
YoY Change 44.22% 36.21% 13.27%
Interest Expense $7.000M $543.0M $124.0M
YoY Change -94.35% 2615.0% -576.92%
% of Operating Profit 0.05% 1.66% 1.4%
Other Income/Expense, Net $273.0M $509.0M $187.0M
YoY Change 45.99% -38.38% 5.65%
Pretax Income $13.06B $33.18B $9.169B
YoY Change 42.38% 33.73% 15.03%
Income Tax $1.836B $4.034B $1.820B
% Of Pretax Income 14.06% 12.16% 19.85%
Net Earnings $11.22B $29.15B $7.349B
YoY Change 52.66% 57.67% 6.79%
Net Earnings / Revenue 39.97% 33.9% 34.86%
Basic Earnings Per Share $10.22
Diluted Earnings Per Share $3.865M $10.09 $2.211M
COMMON SHARES
Basic Shares Outstanding 2.851B shares
Diluted Shares Outstanding 2.888B shares

Balance Sheet

Concept 2020 Q4 2020 2019 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $61.95B $61.95B $54.86B
YoY Change 12.94% 12.94% 33.42%
Cash & Equivalents $17.58B $11.09B $19.08B
Short-Term Investments $44.38B $44.38B $35.78B
Other Short-Term Assets $2.381B $2.381B $1.852B
YoY Change 28.56% 28.56% 4.1%
Inventory
Prepaid Expenses
Receivables $11.34B $11.34B $9.520B
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $75.67B $75.67B $66.23B
YoY Change 14.26% 14.26% 31.19%
LONG-TERM ASSETS
Property, Plant & Equipment $54.98B $54.98B $35.32B
YoY Change 55.65% 22.77% 43.11%
Goodwill $19.05B $18.72B
YoY Change 1.79% 2.26%
Intangibles $623.0M $894.0M
YoY Change -30.31% -30.91%
Long-Term Investments $62.00M $6.234B $86.00M
YoY Change -27.91% 7148.84%
Other Assets $2.758B $2.758B $2.673B
YoY Change 3.18% 3.18% 3.77%
Total Long-Term Assets $83.65B $83.65B $67.15B
YoY Change 24.56% 24.56% 43.32%
TOTAL ASSETS
Total Short-Term Assets $75.67B $75.67B $66.23B
Total Long-Term Assets $83.65B $83.65B $67.15B
Total Assets $159.3B $159.3B $133.4B
YoY Change 19.45% 19.45% 37.03%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.331B $2.424B $1.363B
YoY Change -2.35% 7.78% 66.22%
Accrued Expenses $11.15B $6.668B $11.74B
YoY Change -4.97% -27.01% 113.02%
Deferred Revenue $382.0M $269.0M
YoY Change 42.01% 82.99%
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $54.00M $54.00M $55.00M
YoY Change -1.82% -1.82%
Total Short-Term Liabilities $14.98B $14.98B $15.05B
YoY Change -0.48% -0.48% 114.52%
LONG-TERM LIABILITIES
Long-Term Debt $469.0M $469.0M $418.0M
YoY Change 12.2% 12.2%
Other Long-Term Liabilities $6.414B $15.58B $7.745B
YoY Change -17.19% -1.49% 25.12%
Total Long-Term Liabilities $6.414B $16.05B $7.745B
YoY Change -17.19% -1.14% 25.12%
TOTAL LIABILITIES
Total Short-Term Liabilities $14.98B $14.98B $15.05B
Total Long-Term Liabilities $6.414B $16.05B $7.745B
Total Liabilities $31.03B $31.03B $32.32B
YoY Change -4.01% -4.01% 144.73%
SHAREHOLDERS EQUITY
Retained Earnings $77.35B $55.69B
YoY Change 38.88% 32.66%
Common Stock $0.00 $0.00
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $128.3B $128.3B $101.1B
YoY Change
Total Liabilities & Shareholders Equity $159.3B $159.3B $133.4B
YoY Change 19.45% 19.45% 37.03%

Cashflow Statement

Concept 2020 Q4 2020 2019 Q4
OPERATING ACTIVITIES
Net Income $11.22B $29.15B $7.349B
YoY Change 52.66% 57.67% 6.79%
Depreciation, Depletion And Amortization $1.863B $6.862B $1.468B
YoY Change 26.91% 19.53% 19.84%
Cash From Operating Activities $14.04B $38.75B $9.083B
YoY Change 54.57% 6.7% 19.23%
INVESTING ACTIVITIES
Capital Expenditures -$4.613B $15.12B -$4.100B
YoY Change 12.51% 0.09% -4.67%
Acquisitions
YoY Change
Other Investing Activities -$560.0M $36.00M $64.00M
YoY Change -975.0% -89.61%
Cash From Investing Activities -$5.173B -$30.06B -$4.036B
YoY Change 28.17% 51.32% 9.53%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $6.272B
YoY Change 49.26%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -3.207B -$10.29B -2.026B
YoY Change 58.29% 41.01% -42.78%
NET CHANGE
Cash From Operating Activities 14.04B $38.75B 9.083B
Cash From Investing Activities -5.173B -$30.06B -4.036B
Cash From Financing Activities -3.207B -$10.29B -2.026B
Net Change In Cash 5.660B -$1.325B 3.021B
YoY Change 87.36% -114.47% 670.66%
FREE CASH FLOW
Cash From Operating Activities $14.04B $38.75B $9.083B
Capital Expenditures -$4.613B $15.12B -$4.100B
Free Cash Flow $18.65B $23.63B $13.18B
YoY Change 41.49% 11.41% 10.6%

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<div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Preparation of consolidated financial statements in conformity with GAAP requires the use of estimates and judgments that affect the reported amounts in the consolidated financial statements and accompanying notes. These estimates form the basis for judgments we make about the carrying values of our assets and liabilities, which are not readily apparent from other sources. We base our estimates and judgments on historical information and on various other assumptions that we believe are reasonable under the circumstances. GAAP requires us to make estimates and judgments in several areas, including, but not limited to, those related to revenue recognition, valuation of equity investments, income taxes, loss contingencies, valuation of long-lived assets including goodwill and intangible assets and their associated estimated useful lives, collectibility of accounts receivable, credit losses of available-for-sale (AFS) debt securities, fair value of financial instruments, and leases. These estimates are based on management's knowledge about current events and expectations about actions we may undertake in the future. Actual results could differ materially from those estimates. </span></div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The COVID-19 pandemic has created and may continue to create significant uncertainty in macroeconomic conditions, which </span><span style="color:#181717;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">may cause further business slowdowns or shutdowns, depress demand for our advertising business, and adversely impact our results of operations.</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> During the year ended December 31, 2020, we faced uncertainties around our estimates of revenue collectibility and accounts receivable credit losses. We expect uncertainties around our key accounting estimates to continue to evolve depending on the duration and degree of impact associated with the COVID-19 pandemic</span><span style="color:#181717;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">. Our estimates may change as new events occur and additional information emerges, and such changes are recognized or disclosed in our consolidated financial statements</span>.
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<div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Credit Risk and Concentration</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash, marketable securities, and accounts receivable. The majority of cash equivalents consists of money market funds, that primarily invest in U.S. government and agency securities. Marketable securities consist of investments in U.S. government securities, U.S. government agency securities, and investment grade corporate debt securities. Our investment portfolio in corporate debt securities is highly liquid and diversified among individual issuers. The amount of credit losses recorded for the year ended December 31, 2020 was not material.</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Accounts receivable are typically unsecured and are derived from revenue earned from customers across different industries and countries. We generated 42% of our revenue for the year ended December 31, 2020 and 43% of our revenue for the years ended December 31, 2019 and 2018 from marketers and developers based in the United States, with the majority of revenue outside of the United States coming from customers located in western Europe, China, Canada, Australia, Japan, Vietnam and Brazil.</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We perform ongoing credit evaluations of our customers and generally do not require collateral. We maintain an allowance for estimated credit losses and bad debt expense on these losses was not material during the years ended </span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">December 31, 2020, 2019, or 2018. In the event that accounts receivable collection cycles deteriorate, our operating results and financial position could be adversely affected.</span></div><div style="text-align:justify;text-indent:27pt"><span><br/></span></div><div style="text-align:justify;text-indent:27pt"><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">No customer represented 10% or more of total revenue during the years ended December 31, 2020, 2019, and 2018.</span></div>
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CY2018Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
4678000000 USD
CY2017Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
3870000000 USD
CY2020 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
356000000 USD
CY2019 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
2309000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromPriorPeriodTaxPositions
457000000 USD
CY2020 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
253000000 USD
CY2019 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
525000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Decreases Resulting From Prior Period Tax Positions
UnrecognizedTaxBenefitsDecreasesResultingFromPriorPeriodTaxPositions
396000000 USD
CY2020 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
1045000000 USD
CY2019 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
1402000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Increases Resulting From Current Period Tax Positions
UnrecognizedTaxBenefitsIncreasesResultingFromCurrentPeriodTaxPositions
831000000 USD
CY2020 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
319000000 USD
CY2019 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
1000000 USD
CY2018 us-gaap Unrecognized Tax Benefits Decreases Resulting From Settlements With Taxing Authorities
UnrecognizedTaxBenefitsDecreasesResultingFromSettlementsWithTaxingAuthorities
84000000 USD
CY2020Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
8692000000 USD
CY2019Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
7863000000 USD
CY2018Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
4678000000 USD
CY2020Q4 us-gaap Income Tax Examination Penalties And Interest Accrued
IncomeTaxExaminationPenaltiesAndInterestAccrued
774000000 USD
CY2019Q4 us-gaap Income Tax Examination Penalties And Interest Accrued
IncomeTaxExaminationPenaltiesAndInterestAccrued
747000000 USD
CY2020Q4 us-gaap Unrecognized Tax Benefits
UnrecognizedTaxBenefits
8690000000 USD
CY2020Q4 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
4850000000 USD
CY2020Q4 us-gaap Noncurrent Assets
NoncurrentAssets
54981000000 USD
CY2019Q4 us-gaap Noncurrent Assets
NoncurrentAssets
44783000000 USD

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