Forescout (FSCT) 10-Q5 Aug 202020 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Jul. 31, 2020
Cover [Abstract]
Document Type	10-Q
Document Fiscal Period Focus	Q2
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Amendment Flag	false
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--12-31
Entity File Number	001-38253
Entity Registrant Name	FORESCOUT TECHNOLOGIES, INC
Entity Central Index Key	0001145057
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	51-0406800
Entity Address, Address Line One	190 West Tasman Drive
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95134
City Area Code	408
Local Phone Number	213-3191
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	FSCT
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		49,712,035

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 54,947	$ 69,030
Marketable securities	2,021	29,181
Accounts receivable	63,924	84,168
Inventory	1,418	372
Deferred commissions - current	13,350	12,843
Prepaid expenses and other current assets	11,383	17,024
Total current assets	147,043	212,618
Deferred commissions - non-current	20,848	23,036
Property and equipment, net	20,718	23,835
Operating lease right-of-use assets	27,265	29,626
Restricted cash - non-current	1,554	1,555
Intangible assets, net	17,339	19,367
Goodwill	98,018	98,018
Other assets	6,946	8,172
Total assets	339,731	416,227
Current liabilities:
Accounts payable	11,899	10,692
Accrued compensation	29,770	34,007
Accrued expenses	16,381	16,279
Deferred revenue - current	104,191	112,232
Notes payable - current	4,550	8,248
Operating lease liabilities - current	5,812	5,840
Total current liabilities	172,603	187,298
Deferred revenue - non-current	67,274	75,366
Operating lease liabilities - non-current	29,211	32,125
Other liabilities	23,638	23,893
Total liabilities	292,726	318,682
Stockholders' equity:
Common stock	50	48
Additional paid-in capital	762,187	727,922
Accumulated other comprehensive loss	(678)	(633)
Accumulated deficit	(714,554)	(629,792)
Total stockholders’ equity	47,005	97,545
Total liabilities and stockholders' equity	$ 339,731	$ 416,227

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (shares)	49,550,000	48,064,000
Common stock, shares outstanding (shares)	49,550,000	48,064,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Revenue:
Revenue	$ 79,876	$ 78,280	$ 137,029	$ 153,848
Cost of revenue:
Cost of revenue	19,471	17,456	39,068	36,456
Total gross profit	60,405	60,824	97,961	117,392
Operating expenses:
Research and development	21,514	19,440	44,760	37,937
Sales and marketing	38,988	56,173	86,276	112,096
General and administrative	21,733	15,838	46,214	32,051
Restructuring	859	0	3,371	0
Total operating expenses	83,094	91,451	180,621	182,084
Loss from operations	(22,689)	(30,627)	(82,660)	(64,692)
Interest expense	(118)	(142)	(353)	(235)
Other income (expense), net	572	505	(29)	1,122
Loss before income taxes	(22,235)	(30,264)	(83,042)	(63,805)
Income tax provision	1,288	496	1,720	1,207
Net loss	$ (23,523)	$ (30,760)	$ (84,762)	$ (65,012)
Net loss per share, basic and diluted (in dollars per share)	$ (0.48)	$ (0.68)	$ (1.73)	$ (1.45)
Weighted-average shares used to compute net loss per share, basic and diluted (in shares)	49,371	45,494	48,982	44,848
License
Revenue:
Revenue	$ 37,577	$ 38,831	$ 52,376	$ 76,511
Cost of revenue:
Cost of revenue	6,282	5,622	11,701	13,229
Subscription
Revenue:
Revenue	37,612	34,822	75,138	68,621
Cost of revenue:
Cost of revenue	7,041	5,599	14,054	10,806
Professional services
Revenue:
Revenue	4,687	4,627	9,515	8,716
Cost of revenue:
Cost of revenue	$ 6,148	$ 6,235	$ 13,313	$ 12,421

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (23,523)	$ (30,760)	$ (84,762)	$ (65,012)
Other comprehensive (loss) income, net of tax:
Change in fair value adjustment on marketable securities	10	60	(45)	135
Foreign currency translation adjustments	0	1,602	0	(452)
Comprehensive loss	$ (23,513)	$ (29,098)	$ (84,807)	$ (65,329)

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2018		43,403,000
Stockholders' equity, beginning balance at Dec. 31, 2018	$ 127,721	$ 43	$ 639,237	$ (302)	$ (511,257)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss), net of tax	(1,979)			(1,979)
Stock-based compensation	13,828		13,828
Issuance of common stock in connection with employee equity incentive plans (in shares)		1,706,000
Issuance of common stock in connection with employee equity incentive plans	9,409	$ 2	9,407
Vesting of early exercised stock options (in shares)		24,000
Vesting of early exercised stock options	202	$ 0	202
Net loss	(34,252)				(34,252)
Stockholders' equity, ending balance (in shares) at Mar. 31, 2019		45,133,000
Stockholders' equity, ending balance at Mar. 31, 2019	114,929	$ 45	662,674	(2,281)	(545,509)
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2018		43,403,000
Stockholders' equity, beginning balance at Dec. 31, 2018	127,721	$ 43	639,237	(302)	(511,257)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(65,012)
Stockholders' equity, ending balance (in shares) at Jun. 30, 2019		45,903,000
Stockholders' equity, ending balance at Jun. 30, 2019	107,115	$ 46	683,957	(619)	(576,269)
Stockholders' equity, beginning balance (in shares) at Mar. 31, 2019		45,133,000
Stockholders' equity, beginning balance at Mar. 31, 2019	114,929	$ 45	662,674	(2,281)	(545,509)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss), net of tax	1,662			1,662
Stock-based compensation	14,065		14,065
Issuance of common stock in connection with employee equity incentive plans (in shares)		746,000
Issuance of common stock in connection with employee equity incentive plans	7,015	$ 1	7,014
Vesting of early exercised stock options (in shares)		24,000
Vesting of early exercised stock options	204		204
Net loss	(30,760)				(30,760)
Stockholders' equity, ending balance (in shares) at Jun. 30, 2019		45,903,000
Stockholders' equity, ending balance at Jun. 30, 2019	$ 107,115	$ 46	683,957	(619)	(576,269)
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2019	48,064,000	48,064,000
Stockholders' equity, beginning balance at Dec. 31, 2019	$ 97,545	$ 48	727,922	(633)	(629,792)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss), net of tax	(55)			(55)
Stock-based compensation	13,478		13,478
Issuance of common stock in connection with employee equity incentive plans (in shares)		976,000
Issuance of common stock in connection with employee equity incentive plans	2,900	$ 1	2,899
Net loss	(61,239)				(61,239)
Stockholders' equity, ending balance (in shares) at Mar. 31, 2020		49,040,000
Stockholders' equity, ending balance at Mar. 31, 2020	$ 52,629	$ 49	744,299	(688)	(691,031)
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2019	48,064,000	48,064,000
Stockholders' equity, beginning balance at Dec. 31, 2019	$ 97,545	$ 48	727,922	(633)	(629,792)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of common stock in connection with employee equity incentive plans (in shares)	636,000
Net loss	$ (84,762)
Stockholders' equity, ending balance (in shares) at Jun. 30, 2020	49,550,000	49,550,000
Stockholders' equity, ending balance at Jun. 30, 2020	$ 47,005	$ 50	762,187	(678)	(714,554)
Stockholders' equity, beginning balance (in shares) at Mar. 31, 2020		49,040,000
Stockholders' equity, beginning balance at Mar. 31, 2020	52,629	$ 49	744,299	(688)	(691,031)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other comprehensive income (loss), net of tax	10			10
Stock-based compensation	12,522		12,522
Issuance of common stock in connection with employee equity incentive plans (in shares)		510,000
Issuance of common stock in connection with employee equity incentive plans	5,367	$ 1	5,366
Net loss	$ (23,523)				(23,523)
Stockholders' equity, ending balance (in shares) at Jun. 30, 2020	49,550,000	49,550,000
Stockholders' equity, ending balance at Jun. 30, 2020	$ 47,005	$ 50	$ 762,187	$ (678)	$ (714,554)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities:
Net loss	$ (84,762)	$ (65,012)
Adjustments to reconcile net loss to net cash used in operating activities
Stock-based compensation	25,625	27,893
Depreciation and amortization	6,465	5,790
Other	655	(8)
Changes in operating assets and liabilities
Accounts receivable	20,244	12,177
Inventory	(1,293)	(593)
Deferred commissions	1,681	1,809
Prepaid expenses and other current assets	5,142	318
Other assets	536	551
Accounts payable	1,297	(2,509)
Accrued compensation	(4,237)	(905)
Accrued expenses	152	407
Deferred revenue	(16,133)	1,495
Other liabilities	(143)	(160)
Net cash used in operating activities	(44,771)	(18,747)
Cash flows from investing activities:
Purchases of property and equipment	(1,355)	(3,402)
Purchases of marketable securities	0	(63,569)
Proceeds from maturities of marketable securities	27,000	53,354
Net cash provided by (used in) investing activities	25,645	(13,617)
Cash flows from financing activities:
Proceeds from revolving credit facility	16,000	0
Repayment of revolving credit facility	(16,000)	0
Repayments of notes payable	(3,750)	(3,749)
Proceeds from sales of shares through employee equity incentive plans	11,583	20,726
Payment related to shares withheld for taxes on vesting of restricted stock units	(3,316)	(4,302)
Others	25	0
Net cash provided by financing activities	4,542	12,675
Effect of exchange rate changes on cash and cash equivalents	0	(4)
Net change in cash, cash equivalents, and restricted cash for period	(14,584)	(19,693)
Cash, cash equivalents, and restricted cash at beginning of period	71,591	69,012
Cash, cash equivalents, and restricted cash at end of period	57,007	49,319
Reconciliation of cash, cash equivalents, and restricted cash within the condensed consolidated balance sheets to the amounts shown in the statements of cash flows above:
Total cash, cash equivalents, and restricted cash	$ 57,007	$ 49,319

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business and Summary of Significant Accounting Policies	Description of Business and Summary of Significant Accounting Policies Company and Background Forescout Technologies, Inc. (the “Company”) was incorporated in the State of Delaware and commenced operations in April 2000. The Company designs, develops, and markets device visibility, control, and orchestration software that helps organizations gain complete situational awareness of all devices in their interconnected environment and orchestrate actions to mitigate both their cyber and operational risk. The Company offers its solution across two product groups: (i) products for visibility and control capabilities, and (ii) products for orchestration capabilities. The Company’s products for visibility and control capabilities consist of eyeSight, eyeSegment, eyeControl, and SilentDefense; eyeSight, eyeSegment, and eyeControl provide for visibility and control capabilities across the extended enterprise, from campus to data center to hybrid cloud to operational technology (“OT”) devices, while SilentDefense provides for visibility and control capabilities deeper within the OT portion of the network. The Company’s products for orchestration capabilities are comprised of its portfolio of eyeExtend family of products. The Company offers its solution across two product types: (i) software products and (ii) hardware products. The Company’s software products include eyeSight, eyeSegment, eyeControl, eyeExtend, SilentDefense, and SilentDefense Command Center (“Software Products”). The Company’s hardware products include hardware that is sold separately for use with the Company’s Software Products and appliances that are embedded with the Company’s software (“Hardware Products”). The Company sells its Software Products, Hardware Products, support and maintenance contracts, and professional services to end-customers through distributors and resellers, who are supported by the Company’s sales and marketing organization, and to a lesser extent directly to end-customers. Proposed Merger On February 6, 2020, the Company entered into an Agreement and Plan of Merger (the “Original Merger Agreement”) with Ferrari Group Holdings, L.P., a Delaware limited partnership (“Parent”), and Ferrari Merger Sub, Inc., a Delaware corporation and an indirect wholly owned subsidiary of Parent (“Merger Sub”). Parent and Merger Sub are affiliates of Advent International Corporation (“Advent”). On July 15, 2020, the Company, Parent and Merger Sub entered into an Amended and Restated Agreement and Plan of Merger (the “Amended and Restated Merger Agreement”) in order to amend and restate the Original Merger Agreement. The Amended and Restated Merger Agreement provides that, subject to the terms of the Amended and Restated Merger Agreement, Merger Sub will commence a tender offer (the “Offer”) to purchase each issued and outstanding share of the Company’s common stock for $29.00 per share, net to the seller in cash, without interest and subject to any withholding taxes (the “Offer Price”). The closing of the Offer is subject to certain limited customary conditions, including the tender by Company shareholders of at least one share more than 50% of the Company’s issued and outstanding shares. If the Offer is successful, then following consummation of the Offer, Merger Sub will be merged with and into the Company, with the Company surviving as a wholly owned subsidiary of Parent (the “Merger”). The Amended and Restated Merger Agreement contemplates that the Merger will be effected pursuant to Section 251(h) of the Delaware General Corporation Law (the “DGCL”), which would not require a vote of the Company’s stockholders in order to consummate the Merger. At the effective time of the Merger each issued and outstanding share of the Company’s common stock (except for certain shares specified in the Amended and Restated Merger Agreement), whether or not tendered in accordance with the Offer, will be canceled and converted into the right to receive the Offer Price. On July 20, 2020, Merger Sub commenced the Offer. The Offer is scheduled to expire at the end of the day, one minute after 11:59 p.m., Eastern time, on August 14, 2020, unless the Offer is extended or earlier terminated. Concurrently with the execution of the Amended and Restated Merger Agreement, Forescout, Parent and Merger Sub entered into a settlement agreement to resolve pending litigation between them. Pursuant to the settlement agreement, the parties have agreed to release their respective claims made in connection with the litigation. COVID-19 Due to the COVID-19 pandemic, there has been uncertainty and disruption in the global economy and financial markets, which has decreased, and may further decrease, demand for a broad variety of goods and services, while also disrupting sales channels and marketing activities for an unknown period of time until the pandemic is contained. At this point, the extent to which COVID-19 may impact our financial condition or results of operations is uncertain. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) using accounting policies that are consistent with those used in the preparation of the Company’s audited consolidated financial statements for the year ended December 31, 2019 . Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted as permitted by the SEC's rules and regulations. The Company’s condensed consolidated financial statements include the results of Forescout Technologies, Inc. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements are unaudited and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the Company’s quarterly results. The condensed consolidated balance sheet as of December 31, 2019 was derived from the audited consolidated financial statements at that date but does not include all the disclosures required by GAAP for the annual financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 . The preparation of interim condensed consolidated financial statements in conformity with GAAP requires management to make use of estimates and assumptions that affect the reported amounts in the condensed consolidated financial statements and accompanying notes, including but not limited to the potential impacts arising from the recent COVID-19 and public and private policies and initiatives aimed at reducing its transmission. These estimates form the basis of judgments made about carrying values of assets and liabilities, which are not readily apparent from other sources. The areas where management has made estimates requiring judgment include, but are not limited to, the best estimate of standalone selling prices for license and related support, the period over which deferred sales commissions are amortized to expense, accruals, stock-based compensation, provision for income taxes including related reserves, identified intangibles and goodwill, purchase price allocation of an acquired business, and incremental borrowing rate for operating leases. As the extent and duration of the impact from COVID-19 continue to evolve and additional information becomes available, the Company’s estimates and assumptions may change materially in future periods. Actual results could differ materially from those estimates. Summary of Significant Accounting Policies Restructuring cost The Company records restructuring activities including costs for one-time termination benefits in accordance with ASC Topic 420 (“ASC 420”), Exit or Disposal Cost Obligations. A liability is recognized when management has committed to a restructuring plan and has communicated those actions to employees. Restructuring cost for employee workforce reductions are recorded upon employee notification for employees whose required continuing service period is 60 days or less and ratably over the employee’s continuing service period for employees whose required continuing service period is greater than 60 days . Employee termination benefits covered by existing benefit arrangements are recorded in accordance with ASC Topic 712, Non-retirement Post-employment Benefits. These costs are recognized as restructuring charges in the condensed consolidated statement of operations when management has committed to a restructuring plan and the severance costs are probable and estimable. Refer to Note 5 for further details. Credit losses Effective January 1, 2020, the Company adopted the requirements of Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. The Company adopted ASU 2016-13 effective January 1, 2020 with the cumulative effect of adoption recorded as an adjustment to retained earnings. The effect on its consolidated financial statements and related disclosures is not material. Except for the impact of the adoption of Topic 326, there have been no changes to the Company’s significant accounting policies described in the Annual Report on Form 10-K for the year ended December 31, 2019 that have had a material impact on the Company’s condensed consolidated financial statements and related notes. Recently Issued and Not Yet Adopted Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes that eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. The standard is effective for annual and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the timing and impact of the adoption of this standard on its consolidated financial statements.

Revenue, Deferred Revenue and D

Revenue, Deferred Revenue and Deferred Commissions	6 Months Ended
Revenue, Deferred Revenue and Deferred Commissions	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenue, Deferred Revenue and Deferred Commissions	Revenue, Deferred Revenue and Deferred Commissions Disaggregation of Revenue The Company derives revenue from sale of Software Products, Hardware Products, term contracts, and professional services. All revenue recognized in the condensed consolidated statements of operations is considered to be revenue from contracts with customers. The following table depicts the disaggregation of revenue according to revenue type and is consistent with how the Company evaluates its financial performance (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenue: License Software Products Perpetual license $ 12,167 $ 20,675 $ 21,526 $ 46,434 Term license 19,167 11,190 19,820 11,514 Hardware Products 6,243 6,966 11,030 18,563 Subscription Software as a service (“SaaS”) 167 — 293 — Support and maintenance 37,445 34,822 74,845 68,621 Professional services 4,687 4,627 9,515 8,716 Total revenue $ 79,876 $ 78,280 $ 137,029 $ 153,848 License Revenue License revenue consists of sales of Software Products and Hardware Products. Software Products are sold with either a perpetual license or a term license. License revenue includes the value allocated to license within Software Products subscription contracts. License revenue is recognized at the time of transfer of control, which is generally upon delivery of access to software downloads or shipment, provided that all other revenue recognition criteria have been met. Subscription Revenue Subscription revenue is derived from support and maintenance contracts, the value allocated to support and maintenance within Software Products subscription contracts, and software-as-a-service (“SaaS”) offering contracts. SaaS customers do not have the right to take possession of the cloud-based software. Subscription contracts have terms that are generally either one or three years, but can be up to five years . Subscription revenue is recognized ratably over the term of the contract and any unearned subscription revenue is included in deferred revenue. Professional Services Revenue Professional services revenue is derived primarily from customer fees for optional installation of the Company’s products or training. Generally, the Company recognizes revenue for professional services as the services are rendered. Revenue from Contracts with Customers Contract Assets and Contract Liabilities A contract asset is a right to consideration in exchange for products or services that the Company has transferred to a customer when that right is conditional and is not just subject to the passage of time. The Company’s payment terms typically range between 30 to 90 days. The Company has no material contract assets. A contract liability is an obligation to transfer products or services for which the Company has received consideration, or for which an amount of consideration is due from the customer. Contract liabilities include customer deposits under non-cancelable contracts included in accrued expenses, and current and non-current deferred revenue balances. The Company’s contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. Significant changes in contract liabilities during the periods presented are as follows (in thousands): Three Months Ended June 30, 2020 Contract Liabilities Total Balance as of March 31, 2020 $ 180,674 Additions 71,019 License revenue recognized (37,577 ) Subscription revenue recognized (37,612 ) Professional services revenue recognized (4,687 ) Balance as of June 30, 2020 $ 171,817 Six Months Ended June 30, 2020 Contract Liabilities Total Balance as of December 31, 2019 $ 188,907 Additions 119,939 License revenue recognized (52,376 ) Subscription revenue recognized (75,138 ) Professional services revenue recognized (9,515 ) Balance as of June 30, 2020 $ 171,817 For the three and six months ended June 30, 2020 and 2019 , a vast majority of subscription revenue and a minority of license revenue and professional services revenue were included in the contract liabilities balance at the beginning of each period. Performance Obligations Contracted not recognized revenue was $172.1 million as of June 30, 2020 , of which the Company expects to recognize approximately 61% of the revenue over the next 12 months and the remainder thereafter.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Financial assets are recorded at fair value on the condensed consolidated balance sheets and are categorized based upon the level of judgment associated with inputs used to measure their fair value. The accounting guidance establishes a fair value hierarchy based on the independence of the source and objective evidence of the inputs used. There are three fair value hierarchies based upon the level of inputs that are significant to fair value measurement: • Level 1 —Observable inputs that reflect quoted prices in active markets for identical assets or liabilities. • Level 2 —Observable inputs that reflect quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the assets or liabilities, or inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 —Inputs that are generally unobservable and are supported by little or no market activity, and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability. There have been no transfers between fair value measurement levels during the periods presented. The following table presents the fair value of the Company’s financial assets according to the fair value hierarchy as of June 30, 2020 and December 31, 2019 (in thousands): June 30, 2020 December 31, 2019 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents: Cash $ 40,752 $ — $ — $ 62,188 $ — $ — Money market accounts 14,195 — — 6,842 — — Total cash and cash equivalents 54,947 — — 69,030 — — Marketable securities: Commercial paper — — — — 1,998 — Corporate debt securities — 2,021 — — 24,168 — U.S. government securities — — — — 3,015 — Total marketable securities — 2,021 — — 29,181 — Restricted cash (current and non-current) 2,060 — — 2,561 — — Total financial assets $ 57,007 $ 2,021 $ — $ 71,591 $ 29,181 $ —

Marketable Securities

Marketable Securities	6 Months Ended
Marketable Securities	Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Marketable Securities	Marketable Securities The following table summarizes the Company’s marketable securities by significant investment categories as of June 30, 2020 and December 31, 2019 (in thousands): June 30, 2020 December 31, 2019 Amortized Cost Unrealized Gains Fair Value Amortized Cost Unrealized Gains Fair Value Marketable securities: Available-for-sale: Commercial paper $ — $ — $ — $ 1,998 $ — $ 1,998 Corporate debt securities 2,017 4 2,021 24,122 46 24,168 U.S. government securities — — — 3,012 3 3,015 Total marketable securities $ 2,017 $ 4 $ 2,021 $ 29,132 $ 49 $ 29,181 The following table summarizes the amortized cost and fair value of the Company’s available-for-sale securities as of June 30, 2020 and December 31, 2019 by the contractual maturity date (in thousands): June 30, 2020 December 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 2,017 $ 2,021 $ 29,132 $ 29,181 Total $ 2,017 $ 2,021 $ 29,132 $ 29,181 The Company had no marketable securities in unrealized loss position as of June 30, 2020 and December 31, 2019

Restructuring

Restructuring	6 Months Ended
Restructuring	Jun. 30, 2020
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring Q2 2020 Restructuring Plan In the second quarter of fiscal year 2020, the Company initiated a restructuring plan (the “Q2 2020 Restructuring Plan”) as the Company continues to make adjustments to its overall expense plan and workforce to further align with its strategy and partially in response to the impact of COVID-19 on business operations. The Q2 2020 Restructuring Plan includes reductions in force of approximately 60 employees across various functions, of which a majority were notified by June 30, 2020 and is expected to be substantially completed by September 30, 2020. Q1 2020 Restructuring Plan In the first quarter of fiscal year 2020, the Company initiated a restructuring plan (the “Q1 2020 Restructuring Plan”) as part of the Company’s effort to realign its cost structure in both its go-to-market and engineering organizations. The Q1 2020 Restructuring Plan included reductions in force of approximately 90 employees within the sales, marketing, and engineering functions and was largely completed by March 31, 2020 with no material future costs expected to be incurred. The following table summarizes the activity related to the accrual for restructuring charges (in thousands): Workforce Reduction Cost Accrual balance as at December 31, 2019 $ — Restructuring charges 3,371 Cash payments (2,841 ) Accrual balance as at June 30, 2020 $ 530 The accrued restructuring balance as at June 30, 2020 is included in accrued expenses on the Company’s condensed consolidated balance sheets. For the three and six months ended June 30, 2020 , the Company recognized restructuring charges of $0.9 million and $3.4 million .

Equity Award Plans

Equity Award Plans	6 Months Ended
Equity Award Plans	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Equity Award Plans	Equity Award Plans Stock-Based Compensation Stock-based compensation expense included in the accompanying condensed consolidated statements of operations is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cost of revenue: License $ 114 $ 89 $ 236 $ 172 Subscription 482 470 1,006 913 Professional services 301 421 817 822 Research and development 3,417 2,691 7,100 5,769 Sales and marketing 4,795 7,198 10,599 13,684 General and administrative 2,658 3,196 5,867 6,533 Total $ 11,767 $ 14,065 $ 25,625 $ 27,893 Stock Options The following table summarizes option activity under the Company’s 2000 Stock Option and Incentive Plan and the Company’s 2017 Equity Incentive Plan, and related information (in thousands, except per share and contractual life amounts): Options Outstanding Number Weighted- Weighted- Aggregate Balance—December 31, 2019 3,066 $ 12.33 5.6 $ 62,759 Options exercised (636 ) $ 12.31 Options forfeited (32 ) $ 21.46 Balance—June 30, 2020 2,398 $ 12.22 5.2 $ 22,035 Options vested and exercisable—June 30, 2020 2,287 $ 11.77 5.1 $ 21,874 As of June 30, 2020 , the total unrecognized compensation cost related to unvested options was $1.1 million , which is expected to be amortized on a straight-line basis over a weighted-average period of approximately 0.9 years. Restricted Stock Units (“RSUs”) and Performance Based Stock Units (“PSUs”) The following table summarizes RSU and PSU activity under the Company’s 2000 Stock Option and Incentive Plan and the Company’s 2017 Equity Incentive Plan (the “2017 Plan”), and related information (in thousands, except per share and contractual life amounts): RSUs and PSUs Outstanding Number Weighted- Weighted- Aggregate Balance—December 31, 2019 6,391 $ 31.37 1.7 $ 209,621 Granted 253 $ 29.80 Vested (816 ) $ 29.41 Forfeited (668 ) $ 32.02 Balance—June 30, 2020 5,160 $ 31.53 1.5 $ 109,383 The Company has issued PSUs to select executives under the 2017 Plan. The majority of the PSUs vest over a period of four years from the date of grant subject to both the continued employment of the participant with the Company and the achievement of one or more pre-established financial performance goals. Stock-based compensation expense for PSUs is recognized using the accelerated attribution method over the requisite service periods when it is probable that the performance condition will be achieved. As of June 30, 2020 , the total unrecognized compensation cost related to unvested RSUs and PSUs was $118.8 million , which is expected to be amortized over a weighted-average period of approximately 2.4 years.

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company estimates its annual effective tax rate each quarter and specific events are discretely recognized as they occur under the provisions of ASC 740-270, Income Taxes: Interim Reporting . For the three and six months ended June 30, 2020 , the Company recorded a tax provision of $1.3 million and $1.7 million , respectively, representing an effective tax rate of (5.8)% and (2.1)% , respectively. For the three and six months ended June 30, 2019 , the Company recorded a tax provision of $0.5 million and $1.2 million , respectively, representing an effective tax rate of (1.6)% and (1.9)% , respectively. The Company’s effective tax rates for these periods were negative as it has maintained a valuation allowance on the U.S. losses. The key components of the income tax provision primarily consist of foreign income taxes, unrecognized tax benefits, and U.S. state minimum taxes. The effective tax rate decreased for the three and six months ended June 30, 2020 as compared to the three and six months ended June 30, 2019 primarily due to a decrease in worldwide loss before income taxes. The loss was primarily generated in the United States and does not impact the provision for income taxes as it was offset by a full valuation allowance. In response to COVID-19, President Donald Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) on March 27, 2020. The CARES Act provides numerous tax provisions and other stimulus measures, including temporary changes regarding the prior and future utilization of net operating losses, temporary changes to the prior and future limitations on interest deductions, temporary suspension of certain payment requirements for the employer portion of Social Security taxes, technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property, and the creation of certain refundable employee retention credits. The impact of the CARES Act does not have a material impact on the Company’s consolidated financial statements.

Net Loss Per Share

Net Loss Per Share	6 Months Ended
Net Loss Per Share	Jun. 30, 2020
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share Basic net loss per share is computed by dividing net loss by basic weighted-average shares outstanding during the period. Diluted net loss per share is computed by dividing net loss by diluted weighted-average shares outstanding, including potentially dilutive securities, unless anti-dilutive. The following table presents the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net loss $ (23,523 ) $ (30,760 ) $ (84,762 ) $ (65,012 ) Weighted-average shares used to compute net loss per share, basic and diluted 49,371 45,494 48,982 44,848 Net loss per share, basic and diluted $ (0.48 ) $ (0.68 ) $ (1.73 ) $ (1.45 ) The following securities were excluded from the computation of diluted net loss per share for the periods presented because their inclusion would reduce the net loss per share (in thousands): As of June 30, 2020 2019 Options to purchase common stock 2,398 4,282 Unvested early exercised common shares — — Unvested restricted stock units 5,160 5,719 Employee Stock Purchase Plan — 172

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On February 6, 2020, the Company entered into the Original Merger Agreement with Parent and Merger Sub. Parent and Merger Sub are affiliates of Advent. On July 15, 2020, the Company, Parent and Merger Sub entered into the Amended and Restated Merger Agreement in order to amend and restate the Original Merger Agreement. The Amended and Restated Merger Agreement provides that, subject to the terms of the Amended and Restated Merger Agreement, Merger Sub will commence the Offer to purchase each issued and outstanding share of the Company’s common stock for the Offer Price. The closing of the Offer is subject to certain limited customary conditions, including the tender by Company shareholders of at least one share more than 50% of the Company’s issued and outstanding shares. If the Offer is successful, then following consummation of the Offer, Merger Sub will be merged with and into the Company, with the Company surviving as a wholly owned subsidiary of Parent. The Amended and Restated Merger Agreement contemplates that the Merger will be effected pursuant to Section 251(h) of the DGCL, which would not require a vote of the Company’s stockholders in order to consummate the Merger. At the effective time of the Merger, each issued and outstanding share of the Company’s common stock (except for certain shares specified in the Amended and Restated Merger Agreement), whether or not tendered in accordance with the Offer, will be canceled and converted into the right to receive the Offer Price. On July 20, 2020, Merger Sub commenced the Offer. The Offer is scheduled to expire at the end of the day, one minute after 11:59 p.m., Eastern time, on August 14, 2020, unless the Offer is extended or earlier terminated. Concurrently with the execution of the Amended and Restated Merger Agreement, Forescout, Parent and Merger Sub entered into a settlement agreement to resolve pending litigation between them. Pursuant to the settlement agreement, the parties have agreed to release their respective claims made in connection with the litigation.

Description of Business and S_2

Description of Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) using accounting policies that are consistent with those used in the preparation of the Company’s audited consolidated financial statements for the year ended December 31, 2019 . Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted as permitted by the SEC's rules and regulations. The Company’s condensed consolidated financial statements include the results of Forescout Technologies, Inc. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements are unaudited and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the Company’s quarterly results. The condensed consolidated balance sheet as of December 31, 2019 was derived from the audited consolidated financial statements at that date but does not include all the disclosures required by GAAP for the annual financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 .
Restructuring cost	Restructuring cost The Company records restructuring activities including costs for one-time termination benefits in accordance with ASC Topic 420 (“ASC 420”), Exit or Disposal Cost Obligations. A liability is recognized when management has committed to a restructuring plan and has communicated those actions to employees. Restructuring cost for employee workforce reductions are recorded upon employee notification for employees whose required continuing service period is 60 days or less and ratably over the employee’s continuing service period for employees whose required continuing service period is greater than 60 days . Employee termination benefits covered by existing benefit arrangements are recorded in accordance with ASC Topic 712, Non-retirement Post-employment Benefits.
Credit losses	Credit losses Effective January 1, 2020, the Company adopted the requirements of Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which requires the measurement and recognition of expected credit losses for financial assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss model which requires the use of forward-looking information to calculate credit loss estimates. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in earlier recognition of credit losses. The Company adopted ASU 2016-13 effective January 1, 2020 with the cumulative effect of adoption recorded as an adjustment to retained earnings. The effect on its consolidated financial statements and related disclosures is not material.
Recently Issued and Not Yet Adopted Accounting Pronouncements	Recently Issued and Not Yet Adopted Accounting Pronouncements In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes that eliminates certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. It also clarifies and simplifies other aspects of the accounting for income taxes. The standard is effective for annual and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the timing and impact of the adoption of this standard on its consolidated financial statements.
Revenue from Contract with Customer	License Revenue License revenue consists of sales of Software Products and Hardware Products. Software Products are sold with either a perpetual license or a term license. License revenue includes the value allocated to license within Software Products subscription contracts. License revenue is recognized at the time of transfer of control, which is generally upon delivery of access to software downloads or shipment, provided that all other revenue recognition criteria have been met. Subscription Revenue Subscription revenue is derived from support and maintenance contracts, the value allocated to support and maintenance within Software Products subscription contracts, and software-as-a-service (“SaaS”) offering contracts. SaaS customers do not have the right to take possession of the cloud-based software. Subscription contracts have terms that are generally either one or three years, but can be up to five years . Subscription revenue is recognized ratably over the term of the contract and any unearned subscription revenue is included in deferred revenue. Professional Services Revenue Professional services revenue is derived primarily from customer fees for optional installation of the Company’s products or training. Generally, the Company recognizes revenue for professional services as the services are rendered. Revenue from Contracts with Customers Contract Assets and Contract Liabilities A contract asset is a right to consideration in exchange for products or services that the Company has transferred to a customer when that right is conditional and is not just subject to the passage of time. The Company’s payment terms typically range between 30 to 90 days. The Company has no material contract assets. A contract liability is an obligation to transfer products or services for which the Company has received consideration, or for which an amount of consideration is due from the customer. Contract liabilities include customer deposits under non-cancelable contracts included in accrued expenses, and current and non-current deferred revenue balances. The Company’s contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period. Disaggregation of Revenue
Fair Value Measurements	Financial assets are recorded at fair value on the condensed consolidated balance sheets and are categorized based upon the level of judgment associated with inputs used to measure their fair value. The accounting guidance establishes a fair value hierarchy based on the independence of the source and objective evidence of the inputs used. There are three fair value hierarchies based upon the level of inputs that are significant to fair value measurement: • Level 1 —Observable inputs that reflect quoted prices in active markets for identical assets or liabilities. • Level 2 —Observable inputs that reflect quoted prices for identical assets and liabilities in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the assets or liabilities, or inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 —Inputs that are generally unobservable and are supported by little or no market activity, and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

Revenue, Deferred Revenue and_2

Revenue, Deferred Revenue and Deferred Commissions (Tables)	6 Months Ended
Revenue, Deferred Revenue and Deferred Commissions (Tables)	Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table depicts the disaggregation of revenue according to revenue type and is consistent with how the Company evaluates its financial performance (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Revenue: License Software Products Perpetual license $ 12,167 $ 20,675 $ 21,526 $ 46,434 Term license 19,167 11,190 19,820 11,514 Hardware Products 6,243 6,966 11,030 18,563 Subscription Software as a service (“SaaS”) 167 — 293 — Support and maintenance 37,445 34,822 74,845 68,621 Professional services 4,687 4,627 9,515 8,716 Total revenue $ 79,876 $ 78,280 $ 137,029 $ 153,848
Contract with Customer, Liability	Significant changes in contract liabilities during the periods presented are as follows (in thousands): Three Months Ended June 30, 2020 Contract Liabilities Total Balance as of March 31, 2020 $ 180,674 Additions 71,019 License revenue recognized (37,577 ) Subscription revenue recognized (37,612 ) Professional services revenue recognized (4,687 ) Balance as of June 30, 2020 $ 171,817 Six Months Ended June 30, 2020 Contract Liabilities Total Balance as of December 31, 2019 $ 188,907 Additions 119,939 License revenue recognized (52,376 ) Subscription revenue recognized (75,138 ) Professional services revenue recognized (9,515 ) Balance as of June 30, 2020 $ 171,817

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
Fair Value Measurements (Tables)	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Financial Assets	The following table presents the fair value of the Company’s financial assets according to the fair value hierarchy as of June 30, 2020 and December 31, 2019 (in thousands): June 30, 2020 December 31, 2019 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Financial assets Cash and cash equivalents: Cash $ 40,752 $ — $ — $ 62,188 $ — $ — Money market accounts 14,195 — — 6,842 — — Total cash and cash equivalents 54,947 — — 69,030 — — Marketable securities: Commercial paper — — — — 1,998 — Corporate debt securities — 2,021 — — 24,168 — U.S. government securities — — — — 3,015 — Total marketable securities — 2,021 — — 29,181 — Restricted cash (current and non-current) 2,060 — — 2,561 — — Total financial assets $ 57,007 $ 2,021 $ — $ 71,591 $ 29,181 $ —

Marketable Securities (Tables)

Marketable Securities (Tables)	6 Months Ended
Marketable Securities (Tables)	Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Schedule of Amortized Cost, Unrealized Losses, and Fair Value of Marketable Securities	The following table summarizes the Company’s marketable securities by significant investment categories as of June 30, 2020 and December 31, 2019 (in thousands): June 30, 2020 December 31, 2019 Amortized Cost Unrealized Gains Fair Value Amortized Cost Unrealized Gains Fair Value Marketable securities: Available-for-sale: Commercial paper $ — $ — $ — $ 1,998 $ — $ 1,998 Corporate debt securities 2,017 4 2,021 24,122 46 24,168 U.S. government securities — — — 3,012 3 3,015 Total marketable securities $ 2,017 $ 4 $ 2,021 $ 29,132 $ 49 $ 29,181
Investments Classified by Contractual Maturity Date	The following table summarizes the amortized cost and fair value of the Company’s available-for-sale securities as of June 30, 2020 and December 31, 2019 by the contractual maturity date (in thousands): June 30, 2020 December 31, 2019 Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 2,017 $ 2,021 $ 29,132 $ 29,181 Total $ 2,017 $ 2,021 $ 29,132 $ 29,181

Restructuring (Tables)

Restructuring (Tables)	6 Months Ended
Restructuring (Tables)	Jun. 30, 2020
Restructuring and Related Activities [Abstract]
Summary of the Activity Related to the Accrual for Restructuring Charges	The following table summarizes the activity related to the accrual for restructuring charges (in thousands): Workforce Reduction Cost Accrual balance as at December 31, 2019 $ — Restructuring charges 3,371 Cash payments (2,841 ) Accrual balance as at June 30, 2020 $ 530

Equity Award Plans (Tables)

Equity Award Plans (Tables)	6 Months Ended
Equity Award Plans (Tables)	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Schedule of Stock-based Compensation Expense for Employees and Non-Employees	Stock-based compensation expense included in the accompanying condensed consolidated statements of operations is as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Cost of revenue: License $ 114 $ 89 $ 236 $ 172 Subscription 482 470 1,006 913 Professional services 301 421 817 822 Research and development 3,417 2,691 7,100 5,769 Sales and marketing 4,795 7,198 10,599 13,684 General and administrative 2,658 3,196 5,867 6,533 Total $ 11,767 $ 14,065 $ 25,625 $ 27,893
Schedule of Option Activity under the Plans	The following table summarizes option activity under the Company’s 2000 Stock Option and Incentive Plan and the Company’s 2017 Equity Incentive Plan, and related information (in thousands, except per share and contractual life amounts): Options Outstanding Number Weighted- Weighted- Aggregate Balance—December 31, 2019 3,066 $ 12.33 5.6 $ 62,759 Options exercised (636 ) $ 12.31 Options forfeited (32 ) $ 21.46 Balance—June 30, 2020 2,398 $ 12.22 5.2 $ 22,035 Options vested and exercisable—June 30, 2020 2,287 $ 11.77 5.1 $ 21,874
Schedule of RSU Activity under the Plans	The following table summarizes RSU and PSU activity under the Company’s 2000 Stock Option and Incentive Plan and the Company’s 2017 Equity Incentive Plan (the “2017 Plan”), and related information (in thousands, except per share and contractual life amounts): RSUs and PSUs Outstanding Number Weighted- Weighted- Aggregate Balance—December 31, 2019 6,391 $ 31.37 1.7 $ 209,621 Granted 253 $ 29.80 Vested (816 ) $ 29.41 Forfeited (668 ) $ 32.02 Balance—June 30, 2020 5,160 $ 31.53 1.5 $ 109,383
Schedule of PSU Activity under the Plans	The following table summarizes RSU and PSU activity under the Company’s 2000 Stock Option and Incentive Plan and the Company’s 2017 Equity Incentive Plan (the “2017 Plan”), and related information (in thousands, except per share and contractual life amounts): RSUs and PSUs Outstanding Number Weighted- Weighted- Aggregate Balance—December 31, 2019 6,391 $ 31.37 1.7 $ 209,621 Granted 253 $ 29.80 Vested (816 ) $ 29.41 Forfeited (668 ) $ 32.02 Balance—June 30, 2020 5,160 $ 31.53 1.5 $ 109,383

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
Net Loss Per Share (Tables)	Jun. 30, 2020
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Net Loss Per Share	The following table presents the computation of basic and diluted net loss per share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net loss $ (23,523 ) $ (30,760 ) $ (84,762 ) $ (65,012 ) Weighted-average shares used to compute net loss per share, basic and diluted 49,371 45,494 48,982 44,848 Net loss per share, basic and diluted $ (0.48 ) $ (0.68 ) $ (1.73 ) $ (1.45 )
Schedule of Securities Excluded from Computation of Diluted Net Loss Per Share	The following securities were excluded from the computation of diluted net loss per share for the periods presented because their inclusion would reduce the net loss per share (in thousands): As of June 30, 2020 2019 Options to purchase common stock 2,398 4,282 Unvested early exercised common shares — — Unvested restricted stock units 5,160 5,719 Employee Stock Purchase Plan — 172

Description of Business and S_3

Description of Business and Summary of Significant Accounting Policies (Details)	6 Months Ended
	Jun. 30, 2020product	Jul. 15, 2020$ / shares
Business Acquisition [Line Items]
Number of product groups	2
Number of product types	2
Deferred compensation arrangement with individual, service period (in days)	60 days
Ferrari Group Holdings, L.P. \| Forescout Technologies, Inc. \| Subsequent Event
Business Acquisition [Line Items]
Purchase of acquiree shares (in dollars per share) \| $ / shares		$ 29
Minimum percent of ownership interest acquired		50.00%

Revenue, Deferred Revenue and_3

Revenue, Deferred Revenue and Deferred Commissions - Disaggregation of Revenue According to Revenue Type (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Revenue	$ 79,876	$ 78,280	$ 137,029	$ 153,848
Perpetual license
Disaggregation of Revenue [Line Items]
Revenue	12,167	20,675	21,526	46,434
Term license
Disaggregation of Revenue [Line Items]
Revenue	19,167	11,190	19,820	11,514
Hardware products
Disaggregation of Revenue [Line Items]
Revenue	6,243	6,966	11,030	18,563
Software as a service (“SaaS”)
Disaggregation of Revenue [Line Items]
Revenue	167	0	293	0
Support and maintenance
Disaggregation of Revenue [Line Items]
Revenue	37,445	34,822	74,845	68,621
Professional services
Disaggregation of Revenue [Line Items]
Revenue	$ 4,687	$ 4,627	$ 9,515	$ 8,716

Revenue, Deferred Revenue and_4

Revenue, Deferred Revenue and Deferred Commissions - Narrative (Details)	6 Months Ended
	Jun. 30, 2020USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Contract with customer, asset	$ 0
Support and maintenance
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, performance obligation, description of timing	terms that are generally either one or three years, but can be up to five years

Revenue, Deferred Revenue and_5

Revenue, Deferred Revenue and Deferred Commissions - Significant Changes in Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020
Change In Contract With Customer, Liability [Roll Forward]
Beginning balance	$ 180,674	$ 188,907
Additions	71,019	119,939
Ending balance	171,817	171,817
License
Change In Contract With Customer, Liability [Roll Forward]
Revenue recognized	(37,577)	(52,376)
Subscription
Change In Contract With Customer, Liability [Roll Forward]
Revenue recognized	(37,612)	(75,138)
Professional services
Change In Contract With Customer, Liability [Roll Forward]
Revenue recognized	$ (4,687)	$ (9,515)

Revenue, Deferred Revenue and_6

Revenue, Deferred Revenue and Deferred Commissions - Performance Obligations (Details) $ in Millions	Jun. 30, 2020USD ($)
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation	$ 172.1
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, percentage	61.00%
Performance obligation expected to be satisfied, expected timing	12 months

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 2,021	$ 29,181
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	1,998
Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	2,021	24,168
U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	3,015
Recurring \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	54,947	69,030
Marketable securities	0	0
Restricted cash (current and non-current)	2,060	2,561
Total financial assets	57,007	71,591
Recurring \| Level 1 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Recurring \| Level 1 \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Recurring \| Level 1 \| U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Recurring \| Level 1 \| Cash
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	40,752	62,188
Recurring \| Level 1 \| Money market accounts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	14,195	6,842
Recurring \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Marketable securities	2,021	29,181
Restricted cash (current and non-current)	0	0
Total financial assets	2,021	29,181
Recurring \| Level 2 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	1,998
Recurring \| Level 2 \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	2,021	24,168
Recurring \| Level 2 \| U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	3,015
Recurring \| Level 2 \| Cash
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Recurring \| Level 2 \| Money market accounts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Recurring \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Marketable securities	0	0
Restricted cash (current and non-current)	0	0
Total financial assets	0	0
Recurring \| Level 3 \| Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Recurring \| Level 3 \| Corporate debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Recurring \| Level 3 \| U.S. government securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Recurring \| Level 3 \| Cash
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Recurring \| Level 3 \| Money market accounts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 0	$ 0

Marketable Securities - Summary

Marketable Securities - Summary of Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 2,017	$ 29,132
Unrealized Gains	4	49
Fair Value	2,021	29,181
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	0	1,998
Unrealized Gains	0	0
Fair Value	0	1,998
Corporate debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,017	24,122
Unrealized Gains	4	46
Fair Value	2,021	24,168
U.S. government securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	0	3,012
Unrealized Gains	0	3
Fair Value	$ 0	$ 3,015

Marketable Securities - Maturit

Marketable Securities - Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Amortized Cost
Due within one year	$ 2,017	$ 29,132
Amortized Cost	2,017	29,132
Fair Value
Due within one year	2,021	29,181
Fair Value	$ 2,021	$ 29,181

Marketable Securities - Narrati

Marketable Securities - Narrative (Details)	Jun. 30, 2020security	Dec. 31, 2019segment
Investments, Debt and Equity Securities [Abstract]
Number of marketable securities in unrealized loss positions	0	0

Restructuring - Narrative (Deta

Restructuring - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
Restructuring - Narrative (Details) $ in Thousands	Jun. 30, 2020USD ($)	Jun. 30, 2019USD ($)	Jun. 30, 2020USD ($)employee	Jun. 30, 2019USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring \| $	$ 859	$ 0	$ 3,371	$ 0
Q2 2020 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated			60
Q1 2020 Restructuring Plan
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated			90

Restructuring - Accrual of Rest

Restructuring - Accrual of Restructuring Charges (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Restructuring Reserve [Roll Forward]
Accrual balance			$ 0
Restructuring charges	$ 859	$ 0	3,371	$ 0
Cash payments			(2,841)
Accrual balance	$ 530		$ 530

Equity Award Plans - Stock-base

Equity Award Plans - Stock-based Compensation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 11,767	$ 14,065	$ 25,625	$ 27,893
License
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	114	89	236	172
Subscription
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	482	470	1,006	913
Professional services
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	301	421	817	822
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	3,417	2,691	7,100	5,769
Sales and marketing
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	4,795	7,198	10,599	13,684
General and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Stock-based compensation expense	$ 2,658	$ 3,196	$ 5,867	$ 6,533

Equity Award Plans - Option Act

Equity Award Plans - Option Activity (Details) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020USD ($)$ / sharesshares	Dec. 31, 2019USD ($)$ / sharesshares
Number of Shares
Balance beginning of the period (shares) \| shares	3,066,000
Options exercised (shares) \| shares	(636,000)
Options forfeited (shares) \| shares	(32,000)
Balance end of the period (shares) \| shares	2,398,000	3,066,000
Options vested and exercisable at end of period (shares) \| shares	2,287,000
Weighted- Average Exercise Price
Balance beginning of the period (in dollars per share) \| $ / shares	$ 12.33
Options exercised (in dollars per share) \| $ / shares	12.31
Options forfeited (in dollars per share) \| $ / shares	21.46
Balance end of the period (in dollars per share) \| $ / shares	12.22	$ 12.33
Options vested and exercisable at end of period (in dollars per share) \| $ / shares	$ 11.77
Weighted- Average Remaining Contractual Life (Years)
Balance	5 years 2 months 12 days	5 years 7 months 6 days
Options vested and exercisable	5 years 1 month 6 days
Aggregate Intrinsic Value
Balance \| $	$ 22,035	$ 62,759
Options vested and exercisable \| $	$ 21,874

Equity Award Plans - Narrative

Equity Award Plans - Narrative (Details) $ in Millions	6 Months Ended
Equity Award Plans - Narrative (Details) $ in Millions	Jun. 30, 2020USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to unvested options	$ 1.1
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Straight-line basis weighted-average amortization period (years)	10 months 24 days
RSUs and PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Straight-line basis weighted-average amortization period (years)	2 years 4 months 24 days
Unrecognized compensation cost	$ 118.8
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (years)	4 years

Equity Award Plans - RSU and PS

Equity Award Plans - RSU and PSU Activity (Details) - RSUs and PSUs - USD ($) $ / shares in Units, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Number of Shares
Balance at beginning of period (in shares)	6,391,000
Granted (in shares)	253,000
Vested (in shares)	(816,000)
Forfeited (in shares)	(668,000)
Balance at end of period (in shares)	5,160,000	6,391,000
Weighted- Average Grant Date Fair Value Per Share
Balance at beginning of period (in dollars per share)	$ 31.37
RSUs granted (in dollars per share)	29.80
RSUs vested (in dollars per share)	29.41
RSUs forfeited (in dollars per share)	32.02
Balance at end of period (in dollars per share)	$ 31.53	$ 31.37
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures
Weighted- Average Remaining Contractual Life (Years)	1 year 6 months	1 year 8 months 12 days
Aggregate Intrinsic Value	$ 109,383	$ 209,621

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income tax provision	$ 1,288	$ 496	$ 1,720	$ 1,207
Effective tax rate	(5.80%)	(1.60%)	(2.10%)	(1.90%)

Net Loss Per Share - Basic and

Net Loss Per Share - Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Net loss	$ (23,523)	$ (61,239)	$ (30,760)	$ (34,252)	$ (84,762)	$ (65,012)
Weighted-average shares used to compute net loss per share, basic and diluted (in shares)	49,371		45,494		48,982	44,848
Net loss per share, basic and diluted (in dollars per share)	$ (0.48)		$ (0.68)		$ (1.73)	$ (1.45)

Net Loss Per Share - Securities

Net Loss Per Share - Securities Excluded from Diluted Net Loss Per Share (Details) - shares shares in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of diluted net loss per share (in shares)	2,398	4,282
Unvested early exercised common shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of diluted net loss per share (in shares)	0	0
Unvested restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of diluted net loss per share (in shares)	5,160	5,719
Employee Stock Purchase Plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Securities excluded from computation of diluted net loss per share (in shares)	0	172

Subsequent Events - Narrative (

Subsequent Events - Narrative (Details)	Jul. 15, 2020
Forescout Technologies, Inc. \| Ferrari Group Holdings, L.P. \| Subsequent Event
Subsequent Event [Line Items]
Minimum percent of ownership interest acquired	50.00%

Uncategorized Items - forescout

Label	Element	Value
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	$ 1,154,000
Restricted Cash and Cash Equivalents, Current	us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue	$ 506,000