Arista Networks (ANET) 10-Q3 Aug 212021 Q2 Quarterly reportFinancial data

Company Profile

Cover Page

Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2021	Jul. 28, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-36468
Entity Registrant Name	Arista Networks, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	20-1751121
Entity Address, Address Line One	5453 Great America Parkway
Entity Address, City or Town	Santa Clara
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95054
City Area Code	(408)
Local Phone Number	547-5500
Title of 12(b) Security	Common Stock, $0.0001 par value
Trading Symbol	ANET
Security Exchange Name	NYSE
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 (in shares)		76,716,633
Entity Central Index Key	0001596532
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 893,688	$ 893,219
Marketable securities	2,388,015	1,979,649
Accounts receivable, net of rebates and allowances of $4,603 and $4,497, respectively	364,214	389,540
Inventories	543,199	479,668
Prepaid expenses and other current assets	139,279	94,922
Total current assets	4,328,395	3,836,998
Property and equipment, net	32,362	32,231
Acquisition-related intangible assets, net	107,995	122,790
Goodwill	188,277	189,696
Investments	13,647	8,314
Operating lease right-of-use assets	70,497	77,288
Deferred tax assets	433,674	441,531
Other assets	33,433	30,071
TOTAL ASSETS	5,208,280	4,738,919
CURRENT LIABILITIES:
Accounts payable	145,159	134,235
Accrued liabilities	163,245	143,357
Deferred revenue	482,112	396,259
Other current liabilities	69,419	94,392
Total current liabilities	859,935	768,243
Income taxes payable	57,977	53,053
Operating lease liabilities, non-current	64,295	72,397
Deferred revenue, non-current	263,978	254,568
Deferred tax liabilities, non-current	216,746	227,936
Other long-term liabilities	47,508	42,431
TOTAL LIABILITIES	1,510,439	1,418,628
Commitments and contingencies (Note 5)
STOCKHOLDERS’ EQUITY:
Preferred stock, $0.0001 par value—100,000 shares authorized and no shares issued and outstanding as of June 30, 2021 and December 31, 2020	0	0
Common stock, $0.0001 par value—1,000,000 shares authorized as of June 30, 2021 and December 31, 2020; 76,665 and 76,174 shares issued and outstanding as of June 30, 2021 and December 31, 2020	8	8
Additional paid-in capital	1,395,459	1,292,431
Retained earnings	2,303,513	2,027,614
Accumulated other comprehensive income (loss)	(1,139)	238
TOTAL STOCKHOLDERS’ EQUITY	3,697,841	3,320,291
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 5,208,280	$ 4,738,919

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Rebates and allowances	$ 4,603	$ 4,497
Preferred stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	76,665,000	76,174,000
Common stock, shares outstanding (in shares)	76,665,000	76,174,000

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue:
Total revenue	$ 707,319	$ 540,570	$ 1,374,881	$ 1,063,599
Cost of revenue:
Total cost of revenue	253,141	196,481	495,431	381,259
Gross profit	454,178	344,089	879,450	682,340
Operating expenses:
Research and development	143,293	111,544	275,780	224,698
Sales and marketing	70,625	51,237	141,645	108,323
General and administrative	20,895	14,319	36,368	32,668
Total operating expenses	234,813	177,100	453,793	365,689
Income from operations	219,365	166,989	425,657	316,651
Other income, net	1,719	8,256	3,294	20,413
Income before income taxes	221,084	175,245	428,951	337,064
Provision for income taxes	24,196	30,452	51,697	53,840
Net income	$ 196,888	$ 144,793	$ 377,254	$ 283,224
Net income per share:
Basic (in dollars per share)	$ 2.58	$ 1.91	$ 4.94	$ 3.72
Diluted (in dollars per share)	$ 2.47	$ 1.83	$ 4.73	$ 3.56
Weighted-average shares used in computing net income per share:
Basic (in shares)	76,461	75,808	76,384	76,036
Diluted (in shares)	79,710	79,298	79,677	79,620
Product
Revenue:
Total revenue	$ 566,467	$ 421,413	$ 1,105,612	$ 832,319
Cost of revenue:
Total cost of revenue	225,779	176,432	444,212	340,061
Service
Revenue:
Total revenue	140,852	119,157	269,269	231,280
Cost of revenue:
Total cost of revenue	$ 27,362	$ 20,049	$ 51,219	$ 41,198

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 196,888	$ 144,793	$ 377,254	$ 283,224
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	191	1,193	(350)	(1,546)
Net change in unrealized gains (losses) on available-for-sale securities	(466)	5,802	(1,027)	9,226
Other comprehensive income (loss)	(275)	6,995	(1,377)	7,680
Comprehensive income	$ 196,613	$ 151,788	$ 375,877	$ 290,904

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Beginning balance (in shares) at Dec. 31, 2019		76,389,000
Beginning balance at Dec. 31, 2019	$ 2,894,686	$ 8	$ 1,106,305	$ 1,788,230	$ 143
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	283,224			283,224
Other comprehensive loss, net of tax	7,680				7,680
Stock-based compensation	60,478		60,478
Issuance of common stock in connection with employee equity incentive plans (in shares)		801,000
Issuance of common stock in connection with employee equity incentive plans	22,228		22,228
Repurchase of common stock (in shares)		(1,209,000)
Repurchase of common stock	(227,895)			(227,895)
Tax withholding paid for net share settlement of equity awards (in shares)		(17,000)
Tax withholding paid for net share settlement of equity awards	(4,000)		(4,000)
Vesting of early-exercised stock options	82		82
Ending balance (in shares) at Jun. 30, 2020		75,964,000
Ending balance at Jun. 30, 2020	3,036,483	$ 8	1,185,093	1,843,559	7,823
Beginning balance (in shares) at Mar. 31, 2020		75,655,000
Beginning balance at Mar. 31, 2020	2,848,826	$ 8	1,149,224	1,698,766	828
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	144,793			144,793
Other comprehensive loss, net of tax	6,995				6,995
Stock-based compensation	32,922		32,922
Issuance of common stock in connection with employee equity incentive plans (in shares)		319,000
Issuance of common stock in connection with employee equity incentive plans	5,146		5,146
Tax withholding paid for net share settlement of equity awards (in shares)		(10,000)
Tax withholding paid for net share settlement of equity awards	(2,260)		(2,260)
Vesting of early-exercised stock options	61		61
Ending balance (in shares) at Jun. 30, 2020		75,964,000
Ending balance at Jun. 30, 2020	3,036,483	$ 8	1,185,093	1,843,559	7,823
Beginning balance (in shares) at Dec. 31, 2020		76,174,000
Beginning balance at Dec. 31, 2020	3,320,291	$ 8	1,292,431	2,027,614	238
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	377,254			377,254
Other comprehensive loss, net of tax	(1,377)				(1,377)
Stock-based compensation	82,497		82,497
Issuance of common stock in connection with employee equity incentive plans (in shares)		878,000
Issuance of common stock in connection with employee equity incentive plans	$ 26,884		26,884
Repurchase of common stock (in shares)	(367,000)	(367,000)
Repurchase of common stock	$ (101,355)			(101,355)
Tax withholding paid for net share settlement of equity awards (in shares)		(20,000)
Tax withholding paid for net share settlement of equity awards	(6,353)		(6,353)
Ending balance (in shares) at Jun. 30, 2021		76,665,000
Ending balance at Jun. 30, 2021	3,697,841	$ 8	1,395,459	2,303,513	(1,139)
Beginning balance (in shares) at Mar. 31, 2021		76,257,000
Beginning balance at Mar. 31, 2021	3,451,338	$ 8	1,345,569	2,106,625	(864)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	196,888			196,888
Other comprehensive loss, net of tax	(275)				(275)
Stock-based compensation	44,944		44,944
Issuance of common stock in connection with employee equity incentive plans (in shares)		419,000
Issuance of common stock in connection with employee equity incentive plans	8,803		8,803
Repurchase of common stock (in shares)		0
Tax withholding paid for net share settlement of equity awards (in shares)		(11,000)
Tax withholding paid for net share settlement of equity awards	(3,857)		(3,857)
Ending balance (in shares) at Jun. 30, 2021		76,665,000
Ending balance at Jun. 30, 2021	$ 3,697,841	$ 8	$ 1,395,459	$ 2,303,513	$ (1,139)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 377,254	$ 283,224
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and other	25,235	21,170
Stock-based compensation	82,497	60,478
Noncash lease expense	8,410	8,223
Deferred income taxes	(2,998)	2,668
Amortization of investment premiums	12,121	2,938
Changes in operating assets and liabilities:
Accounts receivable, net	25,326	15,263
Inventories	(63,531)	(82,891)
Prepaid expenses and other current assets	(44,356)	26,815
Other assets	(3,390)	5,360
Accounts payable	10,879	31,473
Accrued liabilities	20,025	(39,882)
Deferred revenue	95,263	(19,242)
Income taxes payable	(9,144)	16,820
Other liabilities	(15,550)	646
Net cash provided by operating activities	518,041	333,063
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of marketable securities	819,807	875,213
Purchases of marketable securities	(1,241,657)	(1,236,477)
Purchases of property and equipment	(9,567)	(5,178)
Business acquisitions, net of cash acquired	0	(66,317)
Escrow receipts from past business acquisitions	1,419	0
Investment in privately-held companies and intangibles	(6,084)	0
Net cash used in investing activities	(436,082)	(432,759)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock under equity plans	26,884	22,228
Tax withholding paid on behalf of employees for net share settlement	(6,353)	(4,000)
Repurchase of common stock	(101,355)	(227,895)
Net cash used in financing activities	(80,824)	(209,667)
Effect of exchange rate changes	(665)	(1,663)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	470	(311,026)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —Beginning of period	897,454	1,115,515
CASH, CASH EQUIVALENTS AND RESTRICTED CASH —End of period	897,924	804,489
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING INFORMATION:
Right-of-use assets obtained in exchange for new operating lease liabilities	1,619	0
Property and equipment included in accounts payable and accrued liabilities	$ 1,732	$ 788

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	6 Months Ended
Organization and Summary of Significant Accounting Policies	Jun. 30, 2021
Accounting Policies [Abstract]
Organization and Summary of Significant Accounting Policies	Organization and Summary of Significant Accounting Policies Organization Arista Networks, Inc. (together with our subsidiaries, “we,” “our,” "Arista," "Company" or “us”) is a supplier of cloud networking solutions that use software innovations to address the needs of large-scale internet companies, cloud service providers and next-generation enterprises. Our cloud networking solutions consist of our Extensible Operating System ("EOS"), a set of network applications and our Gigabit Ethernet switching and routing platforms. We are incorporated in the state of Delaware. Our corporate headquarters are located in Santa Clara, California, and we have wholly-owned subsidiaries throughout the world, including North America, Europe, Asia and Australia. Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Arista Networks, Inc. and its wholly-owned subsidiaries and have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of our financial information. The results for the three and six months ended June 30, 2021, are not necessarily indicative of the results expected for the full fiscal year. The condensed consolidated balance sheet as of December 31, 2020 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. All significant inter-company accounts and transactions have been eliminated. Our condensed consolidated financial statements and related financial information in this Quarterly Report on Form 10-Q should be read in conjunction with the audited consolidated financial statements and related footnotes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, filed with the SEC on February 19, 2021. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. These estimates and assumptions include, but are not limited to, revenue recognition and deferred revenue; allowance for doubtful accounts, sales rebates and return reserves; valuation of goodwill and acquisition-related intangible assets; accounting for income taxes, including the valuation allowance on deferred tax assets and reserves for uncertain tax positions; estimate of useful lives of long-lived assets including intangible assets; valuation of inventory and contract manufacturer/supplier liabilities; and the recognition and measurement of contingent liabilities. We evaluate our estimates and assumptions based on historical experience and other factors and adjust those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates. Risks and Uncertainties The global coronavirus ("COVID-19") pandemic and resulting mitigation efforts by governments around the world to contain or slow its spread have negatively impacted the global economy and disrupted business activities. Our contract manufacturers and suppliers have experienced delays in component sourcing, production and export of their products, which have negatively impacted our supply chain and could negatively impact our business in the future. While we have experienced some recovery in demand from our customers in recent quarters, we believe any renewed COVID-19- related disruptions could result in negative impacts on demand in future periods. However, the extent of the impact of COVID-19 on our operational and financial performance, including our ability to execute our business strategies and initiatives in the expected time frame, and the impact of any initiatives and programs we may undertake to address financial and operational challenges, will depend on future developments, including the duration and spread of the pandemic and related mitigation efforts, the impact to our customers, partners, contract manufacturers and supply chain, as well as restrictions on travel and transport, all of which are uncertain and cannot be predicted. Management continues to actively monitor the impact of the pandemic on the Company's financial condition, liquidity, operations, suppliers, industry, and workforce. As of the date of issuance of these condensed consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain. Recently Adopted Accounting Pronouncements Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and amending existing guidance to improve consistent application. This new standard is effective for our interim and annual periods beginning January 1, 2021. Most amendments within this standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. We adopted this new standard on January 1, 2021 with no material impact on our condensed consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
Fair Value Measurements	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements We measure and report our cash equivalents, restricted cash, and available-for-sale marketable securities at fair value on a recurring basis. The following tables summarize the amortized costs, unrealized gains and losses and fair value of these financial assets by significant investment category and their levels within the fair value hierarchy (in thousands): June 30, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 443,597 $ — $ — $ 443,597 $ 443,597 $ — $ — Marketable Securities: Commercial paper 60,959 — — 60,959 — 60,959 — Certificate of deposits (1) 73,870 — — 73,870 — 73,870 — U.S. government notes 832,903 111 (214) 832,800 832,800 — — Corporate bonds 1,083,824 532 (578) 1,083,778 — 1,083,778 — Agency securities 336,455 188 (35) 336,608 — 336,608 — 2,388,011 831 (827) 2,388,015 832,800 1,555,215 — Other Assets: Money market funds - restricted 4,236 — — 4,236 4,236 — — Total Financial Assets $ 2,835,844 $ 831 $ (827) $ 2,835,848 $ 1,280,633 $ 1,555,215 $ — December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 438,854 $ — $ — $ 438,854 $ 438,854 $ — $ — Marketable Securities: Commercial paper 51,211 — — 51,211 — 51,211 — Certificate of deposits (1) 50,136 3 — 50,139 — 50,139 — U.S. government notes 523,320 187 (1) 523,506 523,506 — — Corporate bonds 878,484 1,167 (330) 879,321 — 879,321 — Agency securities 475,132 343 (3) 475,472 — 475,472 — 1,978,283 1,700 (334) 1,979,649 523,506 1,456,143 — Other Assets: Money market funds - restricted 4,235 — — 4,235 4,235 — — Total Financial Assets $ 2,421,372 $ 1,700 $ (334) $ 2,422,738 $ 966,595 $ 1,456,143 $ — ______________________ (1) As of June 30, 2021 and December 31, 2020, all of our certificates of deposits were domestic deposits. As of June 30, 2021 and December 31, 2020, total unrealized losses of our marketable securities were immaterial. We invest in marketable securities that have maximum maturities of up to two years and are generally deemed to be low risk based on their credit ratings from the major rating agencies. The longer the duration of these marketable securities, the more susceptible they are to changes in market interest rates and bond yields. We expect to realize the full value of these investments upon maturity or sale and therefore, we do not consider any of our marketable securities to be impaired as of June 30, 2021. We did not recognize any credit losses or non-credit-related impairments related to our available-for-sale marketable securities during the three and six months ended June 30, 2021. As of June 30, 2021, the contractual maturities of our investments did not exceed 24 months. The fair values of available-for-sale marketable securities, by remaining contractual maturity, are as follows (in thousands): June 30, 2021 Due in 1 year or less $ 1,258,837 Due in 1 year through 2 years 1,129,178 Total marketable securities $ 2,388,015 The weighted-average remaining duration of our current marketable securities is approximately 1.0 year as of June 30, 2021. As we view these securities as available to support current operations, we classify securities with maturities beyond 12 months as current assets under the caption "Marketable securities" on the condensed consolidated balance sheets.

Financial Statements Details

Financial Statements Details	6 Months Ended
Financial Statements Details	Jun. 30, 2021
Balance Sheet Components [Abstract]
Financial Statements Details	Financial Statements Details Cash, Cash Equivalents and Restricted Cash The reconciliation of cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheets to the total of the same such amounts in the condensed consolidated statements of cash flows is as follows (in thousands): June 30, 2021 December 31, 2020 Cash and cash equivalents $ 893,688 $ 893,219 Restricted cash included in other assets 4,236 4,235 Total cash, cash equivalents and restricted cash $ 897,924 $ 897,454 Accounts Receivable, net Accounts receivable, net consists of the following (in thousands): June 30, 2021 December 31, 2020 Accounts receivable $ 368,817 $ 394,037 Allowance for doubtful accounts (587) (659) Product sales rebate and returns reserve (4,016) (3,838) Accounts receivable, net $ 364,214 $ 389,540 Inventories Inventories consist of the following (in thousands): June 30, 2021 December 31, 2020 Raw materials $ 271,055 $ 219,218 Finished goods 272,144 260,450 Total inventories $ 543,199 $ 479,668 Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consist of the following (in thousands): June 30, 2021 December 31, 2020 Inventory deposits $ 22,386 $ 18,783 Prepaid income taxes 18,479 267 Other current assets 81,017 60,556 Other prepaid expenses and deposits 17,397 15,316 Total prepaid expenses and other current assets $ 139,279 $ 94,922 Property and Equipment, net Property and equipment, net consists of the following (in thousands): June 30, 2021 December 31, 2020 Equipment and machinery $ 77,361 $ 70,655 Computer hardware and software 43,087 40,081 Leasehold improvements 30,502 31,448 Furniture and fixtures 3,592 3,787 Construction-in-process 1,214 1,441 Property and equipment, gross 155,756 147,412 Less: accumulated depreciation (123,394) (115,181) Property and equipment, net $ 32,362 $ 32,231 Depreciation expense was $4.8 million and $5.1 million for the three months ended June 30, 2021 and 2020, respectively, and $9.7 million and $10.3 million for the six months ended June 30, 2021 and 2020, respectively. Accrued Liabilities Accrued liabilities consist of the following (in thousands): June 30, 2021 December 31, 2020 Accrued payroll related costs $ 64,028 $ 73,634 Accrued manufacturing costs 63,260 43,181 Accrued product development costs 15,355 6,733 Accrued warranty costs 8,995 9,314 Other 11,607 10,495 Total accrued liabilities $ 163,245 $ 143,357 Warranty Accrual The following table summarizes the activity related to our accrued liability for estimated future warranty costs (in thousands): Six Months Ended June 30, 2021 2020 Warranty accrual, beginning of period $ 9,314 $ 6,742 Liabilities accrued for warranties issued during the period 5,603 2,181 Warranty costs incurred during the period (5,922) (2,852) Warranty accrual, end of period $ 8,995 $ 6,071 Contract Assets The following table summarizes the beginning and ending balances of our contract assets included in "Prepaid and other current assets" on the condensed consolidated balance sheets (in thousands): Six Months Ended June 30, 2021 Contract assets, beginning balance $ 16,380 Contract assets, ending balance 11,935 Contract Liabilities, Deferred Revenue and Other Performance Obligations A contract liability is recognized when we have received customer payments in advance of our satisfaction of a performance obligation under a cancellable contract. The following table summarizes the activity related to our contract liabilities (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Contract liabilities, beginning balance $ 80,465 $ 64,325 $ 85,957 $ 61,050 Less: Revenue recognized from beginning balance (8,482) (5,735) (18,482) (11,722) Less: Beginning balance reclassified to deferred revenue (3,856) (2,757) (12,710) (2,226) Add: Contract liabilities recognized 15,227 11,435 28,589 20,166 Contract liabilities, ending balance $ 83,354 $ 67,268 $ 83,354 $ 67,268 As of June 30, 2021 and December 31, 2020, $35.9 million and $34.5 million of our contract liabilities, respectively, were included in "Other current liabilities" with the remaining balances included in "Other long-term liabilities" on the condensed consolidated balance sheets. Deferred revenue is comprised mainly of unearned revenue related to multi-year post-contract support ("PCS") contracts, services and product deferrals related to acceptance clauses. The following table summarizes the activity related to our deferred revenue (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Deferred revenue, beginning balance $ 720,031 $ 596,775 $ 650,827 $ 575,288 Less: Revenue recognized from beginning balance (145,556) (104,480) (222,865) (178,264) Add: Deferral of revenue in current period, excluding amounts recognized during the period 171,615 85,216 318,128 180,487 Deferred revenue, ending balance $ 746,090 $ 577,511 $ 746,090 $ 577,511 As of June 30, 2021, other performance obligations of $169.2 million were comprised mainly of unbilled multi-year PCS contract amounts that will be recognized as revenue in future periods. Revenue from Total Remaining Performance Obligations Revenue from total remaining performance obligations represents contract liabilities, deferred revenue and unbilled contract revenue that will be recognized in future periods. As of June 30, 2021, approximately $998.7 million of revenue is expected to be recognized from remaining performance obligations, of which approximately 83% is expected to be recognized over the next two years and approximately 17% is expected to be recognized during the third to the fifth year. Other Income, net Other income, net consists of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Interest income $ 1,872 $ 8,668 $ 3,917 $ 20,330 Other income (expense), net (153) (412) (623) 83 Total $ 1,719 $ 8,256 $ 3,294 $ 20,413

Investments

Investments	6 Months Ended
Investments	Jun. 30, 2021
Investments in privately-held companies [Abstract]
Investments	Investments Investments in Privately-Held Companies Our investments in privately-held companies do not have readily-determinable fair values. Their initial cost is adjusted to fair value on a non-recurring basis based on observable price changes from orderly transactions of identical or similar securities of the same issuer, or for impairment. These investments are classified within Level III of the fair value hierarchy as we estimate the value based on valuation methods using the observable transaction price at the transaction date and other significant unobservable inputs, such as volatility, rights, and obligations related to these securities. In addition, the valuation requires management judgment due to the absence of market price and lack of liquidity. The following table summarizes the activity related to our investments in privately-held companies as of June 30, 2021 and December 31, 2020 (in thousands): June 30, 2021 December 31, 2020 Cost of investments $ 8,333 $ 3,000 Cumulative impairment — — Cumulative upward adjustment 5,314 5,314 Carrying amount of investments $ 13,647 $ 8,314

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Purchase Commitments We outsource most of our manufacturing and supply chain management operations to third-party contract manufacturers, who procure components and assemble products on our behalf. A significant portion of our purchase orders to our contract manufacturers for finished products consists of non-cancellable purchase commitments. In addition, we purchase strategic component inventory from certain suppliers under non-cancellable purchase commitments, including integrated circuits, which are consigned to our contract manufacturers. As of June 30, 2021, we had non-cancellable purchase commitments of $1,057.5 million, of which $1,019.0 million was to our contract manufacturers and suppliers. In addition, we had deposits to our contract manufacturers to secure our purchase commitments in the amount of $25.1 million and $21.5 million as of June 30, 2021 and December 31, 2020, respectively. These deposits are included in “Prepaid expenses and other current assets” and “Other assets” on the condensed consolidated balance sheets. Guarantees We have entered into agreements with some of our direct customers and channel partners that contain indemnification provisions relating to potential situations where claims could be alleged that our products infringe the intellectual property rights of a third party. We have, at our option and expense, the ability to repair any infringement, replace product with a non-infringing equivalent-in-function product or refund our customers all or a portion of the value of the product. Other guarantees or indemnification agreements include guarantees of product and service performance and standby letters of credit for leased facilities and corporate credit cards. We have not recorded a liability related to these indemnification and guarantee provisions and our guarantee and indemnification arrangements have not had a significant impact on our consolidated financial statements to date. Legal Proceedings WSOU Investments, LLC On November 25, 2020, WSOU Investments LLC ("WSOU") filed a lawsuit against us in the Western District of Texas asserting that certain of our products infringe three WSOU patents. WSOU's allegations are directed to certain features of our wireless and switching products. WSOU seeks remedies including monetary damages, attorney's fees and costs. On February 4, 2021, we filed an answer denying WSOU's allegations. We intend to vigorously defend against the claims brought against us by WSOU. However, we cannot be certain that any of WSOU's claims will be resolved in our favor, regardless of the merits of those claims. Any adverse litigation ruling could result in a significant damages award against us and injunctive relief. With respect to the legal proceedings described above, it is our belief that while a loss is not probable, it may be reasonably possible. Further, at this stage in the litigation, any possible loss or range of loss cannot be estimated. However, the outcome of litigation is inherently uncertain. Therefore, if this legal matter were resolved against us in a reporting period for a material amount, our consolidated financial statements for that reporting period could be materially adversely affected. Other matters In the ordinary course of business, we are a party to other claims and legal proceedings including matters relating to commercial, employee relations, business practices and intellectual property. We record a provision for contingent losses when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. As of June 30, 2021, provisions recorded for contingent losses related to other claims and matters have not been significant. Based on currently available information, management does not believe that any additional liabilities relating to other unresolved matters are probable or that the amount of any resulting loss is estimable, and believes these other matters are not likely, individually and in the aggregate, to have a material adverse effect on our financial position, results of operations or cash flows. However, litigation is subject to inherent uncertainties and our view of these matters may change in the future. Were an unfavorable outcome to occur, there exists the possibility of a material adverse impact on our financial position, results of operations or cash flows for the period in which the unfavorable outcome occurs, and potentially in future periods.

Stockholders_ Equity and Stock-

Stockholders’ Equity and Stock-Based Compensation	6 Months Ended
Stockholders’ Equity and Stock-Based Compensation	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Stockholders’ Equity and Stock-Based Compensation	Stockholders’ Equity and Stock-Based Compensation Stock Repurchase Program In April 2019, our board of directors authorized a $1.0 billion stock repurchase program (the "Repurchase Program"). This authorization allows us to repurchase shares of our common stock and is funded from working capital. Repurchases may be made at management’s discretion from time to time on the open market, through privately negotiated transactions, transactions structured through investment banking institutions, block purchases, trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or a combination of the foregoing. The Repurchase Program, which expires in April 2022, does not obligate us to acquire any of our common stock, and may be suspended or discontinued by us at any time without prior notice. As of June 30, 2021, the remaining authorized amount for stock repurchases under this program was approximately $237.3 million. A summary of the stock repurchase activity under the Repurchase Program for the six months ended June 30, 2021 is as follows (in thousands, except per share amounts): Six Months Ended June 30, 2021 Aggregate purchase price $ 101,355 Shares repurchased 367 Average price paid per share $ 275.88 There was no stock repurchase activity for the three months ended June 30, 2021. The aggregate purchase price of repurchased shares of our common stock is recorded as a reduction to retained earnings and common stock in our condensed consolidated statements of stockholders' equity. All shares repurchased under the Repurchase Program have been retired. Equity Award Plan Activities 2014 Equity Incentive Plan The 2014 Equity Incentive Plan (the “2014 Plan”) provides for the granting of Incentive Stock Options (“ISOs”), Non-statutory Stock Options (“NSOs”), Restricted Stock Units (“RSUs”), Restricted Stock Awards (“RSAs”) or Stock Appreciation Rights (“SARs”). The number of shares available for grant and issuance under the 2014 Plan increases automatically on January 1 of each year by the lesser of (i) 12,500,000 shares, (ii) 3% of the outstanding shares of our common stock on the last day of our immediately preceding fiscal year, or (iii) such other amount as determined by our board of directors. Effective January 1, 2021, our board of directors authorized an increase of 2,285,228 shares to the shares available for issuance under the 2014 Plan. As of June 30, 2021, there remained approximately 23.0 million shares available for issuance under the 2014 Plan. 2014 Employee Stock Purchase Plan Effective January 1, 2021, our board of directors authorized an increase of 761,742 shares to the shares available for issuance under our 2014 Employee Stock Purchase Plan (the “ESPP”). Pursuant to the ESPP, the 2021 share increase was determined based on the lesser of 1% of the total shares of common stock outstanding on December 31, 2020, 2,500,000 shares, or such amount as determined by our board of directors. During the six months ended June 30, 2021, we issued 56,326 shares at a weighted-average purchase price of $182.76 per share under the ESPP. As of June 30, 2021, there remained 4.6 million shares available for issuance under the ESPP. Stock Option Activities The following table summarizes the option activity under our stock plans and related information (in thousands, except years and per share amounts): Options Outstanding Number of Weighted- Weighted- Aggregate Balance—December 31, 2020 3,430 $ 45.17 3.6 $ 841,659 Options granted — — Options exercised (538) 30.81 Options canceled (18) 38.62 Balance—June 30, 2021 2,874 $ 47.90 3.2 $ 903,398 Vested and exercisable—June 30, 2021 2,059 $ 36.79 2.8 $ 670,147 Restricted Stock Unit (RSU) Activities A summary of the RSU activity is presented below (in thousands, except years and per share amounts): Number of Weighted- Weighted-Average Aggregate Intrinsic Value Unvested balance—December 31, 2020 1,816 $ 215.68 1.8 $ 527,574 RSUs granted 671 347.89 RSUs vested (280) 202.72 RSUs forfeited/canceled (85) 232.83 Unvested balance—June 30, 2021 2,122 $ 258.52 1.9 $ 768,921 In the six months ended June 30, 2021, we granted 69,620 performance-based RSUs (“PRSUs”) to our CEO and other key employees that include both service and performance-based conditions. These PRSUs will vest over three Stock-Based Compensation Expense The following table summarizes the stock-based compensation expense related to our equity awards (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenue $ 1,796 $ 1,585 $ 3,196 $ 2,912 Research and development 23,139 19,378 45,121 35,306 Sales and marketing 11,368 8,277 21,453 14,673 General and administrative 8,641 3,682 12,727 7,587 Total stock-based compensation $ 44,944 $ 32,922 $ 82,497 $ 60,478

Net Income Per Share

Net Income Per Share	6 Months Ended
Net Income Per Share	Jun. 30, 2021
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share The following table sets forth the computation of our basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator: Net income $ 196,888 $ 144,793 $ 377,254 $ 283,224 Denominator: Weighted-average shares used in computing net income per share, basic 76,461 75,808 76,384 76,036 Add weighted-average effect of dilutive securities: Stock options and RSUs 3,191 3,486 3,235 3,580 Employee stock purchase plan 58 4 58 4 Weighted-average shares used in computing net income per share, diluted 79,710 79,298 79,677 79,620 Net income per share: Basic $ 2.58 $ 1.91 $ 4.94 $ 3.72 Diluted $ 2.47 $ 1.83 $ 4.73 $ 3.56 The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share for the periods presented because their effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Stock options and RSUs 101 334 115 467 Employee stock purchase plan 20 149 15 159 Total 121 483 130 626

Income Taxes

Income Taxes	6 Months Ended
Income Taxes	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands, except percentages) (in thousands, except percentages) Income before income taxes $ 221,084 $ 175,245 $ 428,951 $ 337,064 Provision for income taxes 24,196 30,452 51,697 53,840 Effective tax rate 10.9 % 17.4 % 12.1 % 16.0 % The change in effective tax rates in the three and six months ended June 30, 2021, as compared to the same periods in 2020, was primarily due to an increase in tax benefits attributable to stock-based compensation, combined with a favorable change in jurisdictional mix of earnings.

Geographical Information

Geographical Information	6 Months Ended
Geographical Information	Jun. 30, 2021
Segment Reporting [Abstract]
Geographical Information	Geographical Information We operate in one reportable segment. The following table represents revenue based on customers’ shipping addresses (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Americas $ 514,149 $ 435,829 $ 1,016,021 $ 836,489 Europe, Middle East and Africa 112,048 63,977 208,322 136,601 Asia-Pacific 81,122 40,764 150,538 90,509 Total revenue $ 707,319 $ 540,570 $ 1,374,881 $ 1,063,599 Long-lived assets, net, excluding intercompany receivables, investments in subsidiaries, privately-held equity investments and deferred tax assets, by location are summarized as follows (in thousands): June 30, 2021 December 31, 2020 United States $ 23,097 $ 24,110 International 9,265 8,121 Total $ 32,362 $ 32,231

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2021
Subsequent Events [Abstract]
Subsequent Events	Subsequent event Subsequent to the end of the quarter, on July 20, 2021, we finalized a commitment to acquire land and all improvements thereon for a total consideration of approximately $40.0 million. We expect to fund payment of this amount in the third quarter of 2021.

Organization and Summary of S_2

Organization and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements include the accounts of Arista Networks, Inc. and its wholly-owned subsidiaries and have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) and the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. In management’s opinion, the unaudited condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and include all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of our financial information. The results for the three and six months ended June 30, 2021, are not necessarily indicative of the results expected for the full fiscal year. The condensed consolidated balance sheet as of December 31, 2020 has been derived from the audited consolidated financial statements at that date but does not include all of the information and notes required by GAAP for complete financial statements. All significant inter-company accounts and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the condensed consolidated financial statements and accompanying notes. These estimates and assumptions include, but are not limited to, revenue recognition and deferred revenue; allowance for doubtful accounts, sales rebates and return reserves; valuation of goodwill and acquisition-related intangible assets; accounting for income taxes, including the valuation allowance on deferred tax assets and reserves for uncertain tax positions; estimate of useful lives of long-lived assets including intangible assets; valuation of inventory and contract manufacturer/supplier liabilities; and the recognition and measurement of contingent liabilities. We evaluate our estimates and assumptions based on historical experience and other factors and adjust those estimates and assumptions when facts and circumstances dictate. Actual results could differ materially from those estimates.
Risks And Uncertainties	Risks and Uncertainties The global coronavirus ("COVID-19") pandemic and resulting mitigation efforts by governments around the world to contain or slow its spread have negatively impacted the global economy and disrupted business activities. Our contract manufacturers and suppliers have experienced delays in component sourcing, production and export of their products, which have negatively impacted our supply chain and could negatively impact our business in the future. While we have experienced some recovery in demand from our customers in recent quarters, we believe any renewed COVID-19- related disruptions could result in negative impacts on demand in future periods. However, the extent of the impact of COVID-19 on our operational and financial performance, including our ability to execute our business strategies and initiatives in the expected time frame, and the impact of any initiatives and programs we may undertake to address financial and operational challenges, will depend on future developments, including the duration and spread of the pandemic and related mitigation efforts, the impact to our customers, partners, contract manufacturers and supply chain, as well as restrictions on travel and transport, all of which are uncertain and cannot be predicted. Management continues to actively monitor the impact of the pandemic on the Company's financial condition, liquidity, operations, suppliers, industry, and workforce. As of the date of issuance of these condensed consolidated financial statements, the extent to which the COVID-19 pandemic may materially impact the Company's financial condition, liquidity, or results of operations is uncertain.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and amending existing guidance to improve consistent application. This new standard is effective for our interim and annual periods beginning January 1, 2021. Most amendments within this standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. We adopted this new standard on January 1, 2021 with no material impact on our condensed consolidated financial statements.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
Fair Value Measurements (Tables)	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Summary of Fair Value of Financial Assets by Level	The following tables summarize the amortized costs, unrealized gains and losses and fair value of these financial assets by significant investment category and their levels within the fair value hierarchy (in thousands): June 30, 2021 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 443,597 $ — $ — $ 443,597 $ 443,597 $ — $ — Marketable Securities: Commercial paper 60,959 — — 60,959 — 60,959 — Certificate of deposits (1) 73,870 — — 73,870 — 73,870 — U.S. government notes 832,903 111 (214) 832,800 832,800 — — Corporate bonds 1,083,824 532 (578) 1,083,778 — 1,083,778 — Agency securities 336,455 188 (35) 336,608 — 336,608 — 2,388,011 831 (827) 2,388,015 832,800 1,555,215 — Other Assets: Money market funds - restricted 4,236 — — 4,236 4,236 — — Total Financial Assets $ 2,835,844 $ 831 $ (827) $ 2,835,848 $ 1,280,633 $ 1,555,215 $ — December 31, 2020 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Level I Level II Level III Financial Assets: Cash Equivalents: Money market funds $ 438,854 $ — $ — $ 438,854 $ 438,854 $ — $ — Marketable Securities: Commercial paper 51,211 — — 51,211 — 51,211 — Certificate of deposits (1) 50,136 3 — 50,139 — 50,139 — U.S. government notes 523,320 187 (1) 523,506 523,506 — — Corporate bonds 878,484 1,167 (330) 879,321 — 879,321 — Agency securities 475,132 343 (3) 475,472 — 475,472 — 1,978,283 1,700 (334) 1,979,649 523,506 1,456,143 — Other Assets: Money market funds - restricted 4,235 — — 4,235 4,235 — — Total Financial Assets $ 2,421,372 $ 1,700 $ (334) $ 2,422,738 $ 966,595 $ 1,456,143 $ — ______________________ (1) As of June 30, 2021 and December 31, 2020, all of our certificates of deposits were domestic deposits.
Fair Value of Available-For-Sale Investments By Contractual Maturity	The fair values of available-for-sale marketable securities, by remaining contractual maturity, are as follows (in thousands): June 30, 2021 Due in 1 year or less $ 1,258,837 Due in 1 year through 2 years 1,129,178 Total marketable securities $ 2,388,015

Financial Statements Details (T

Financial Statements Details (Tables)	6 Months Ended
Financial Statements Details (Tables)	Jun. 30, 2021
Balance Sheet Components [Abstract]
Schedule of Cash, Cash Equivalents and Restricted Cash	The reconciliation of cash, cash equivalents and restricted cash reported on the condensed consolidated balance sheets to the total of the same such amounts in the condensed consolidated statements of cash flows is as follows (in thousands): June 30, 2021 December 31, 2020 Cash and cash equivalents $ 893,688 $ 893,219 Restricted cash included in other assets 4,236 4,235 Total cash, cash equivalents and restricted cash $ 897,924 $ 897,454
Schedule of Accounts Receivable, Net	Accounts receivable, net consists of the following (in thousands): June 30, 2021 December 31, 2020 Accounts receivable $ 368,817 $ 394,037 Allowance for doubtful accounts (587) (659) Product sales rebate and returns reserve (4,016) (3,838) Accounts receivable, net $ 364,214 $ 389,540
Schedule of Inventories	Inventories consist of the following (in thousands): June 30, 2021 December 31, 2020 Raw materials $ 271,055 $ 219,218 Finished goods 272,144 260,450 Total inventories $ 543,199 $ 479,668
Schedule of Prepaid Expenses and Other Current Assets	Prepaid expenses and other current assets consist of the following (in thousands): June 30, 2021 December 31, 2020 Inventory deposits $ 22,386 $ 18,783 Prepaid income taxes 18,479 267 Other current assets 81,017 60,556 Other prepaid expenses and deposits 17,397 15,316 Total prepaid expenses and other current assets $ 139,279 $ 94,922
Schedule of Property and Equipment, Net	Property and equipment, net consists of the following (in thousands): June 30, 2021 December 31, 2020 Equipment and machinery $ 77,361 $ 70,655 Computer hardware and software 43,087 40,081 Leasehold improvements 30,502 31,448 Furniture and fixtures 3,592 3,787 Construction-in-process 1,214 1,441 Property and equipment, gross 155,756 147,412 Less: accumulated depreciation (123,394) (115,181) Property and equipment, net $ 32,362 $ 32,231
Schedule of Accrued Liabilities	Accrued liabilities consist of the following (in thousands): June 30, 2021 December 31, 2020 Accrued payroll related costs $ 64,028 $ 73,634 Accrued manufacturing costs 63,260 43,181 Accrued product development costs 15,355 6,733 Accrued warranty costs 8,995 9,314 Other 11,607 10,495 Total accrued liabilities $ 163,245 $ 143,357
Schedule of Warranty Accrual	The following table summarizes the activity related to our accrued liability for estimated future warranty costs (in thousands): Six Months Ended June 30, 2021 2020 Warranty accrual, beginning of period $ 9,314 $ 6,742 Liabilities accrued for warranties issued during the period 5,603 2,181 Warranty costs incurred during the period (5,922) (2,852) Warranty accrual, end of period $ 8,995 $ 6,071
Schedule of Contract Balances	The following table summarizes the beginning and ending balances of our contract assets included in "Prepaid and other current assets" on the condensed consolidated balance sheets (in thousands): Six Months Ended June 30, 2021 Contract assets, beginning balance $ 16,380 Contract assets, ending balance 11,935 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Contract liabilities, beginning balance $ 80,465 $ 64,325 $ 85,957 $ 61,050 Less: Revenue recognized from beginning balance (8,482) (5,735) (18,482) (11,722) Less: Beginning balance reclassified to deferred revenue (3,856) (2,757) (12,710) (2,226) Add: Contract liabilities recognized 15,227 11,435 28,589 20,166 Contract liabilities, ending balance $ 83,354 $ 67,268 $ 83,354 $ 67,268
Schedule of Deferred Revenue	The following table summarizes the activity related to our deferred revenue (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Deferred revenue, beginning balance $ 720,031 $ 596,775 $ 650,827 $ 575,288 Less: Revenue recognized from beginning balance (145,556) (104,480) (222,865) (178,264) Add: Deferral of revenue in current period, excluding amounts recognized during the period 171,615 85,216 318,128 180,487 Deferred revenue, ending balance $ 746,090 $ 577,511 $ 746,090 $ 577,511
Schedule of Other Income (Expense), Net	Other income, net consists of the following (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Interest income $ 1,872 $ 8,668 $ 3,917 $ 20,330 Other income (expense), net (153) (412) (623) 83 Total $ 1,719 $ 8,256 $ 3,294 $ 20,413

Investments (Tables)

Investments (Tables)	6 Months Ended
Investments (Tables)	Jun. 30, 2021
Investments in privately-held companies [Abstract]
Equity Securities without Readily Determinable Fair Value	The following table summarizes the activity related to our investments in privately-held companies as of June 30, 2021 and December 31, 2020 (in thousands): June 30, 2021 December 31, 2020 Cost of investments $ 8,333 $ 3,000 Cumulative impairment — — Cumulative upward adjustment 5,314 5,314 Carrying amount of investments $ 13,647 $ 8,314

Stockholders_ Equity and Stoc_2

Stockholders’ Equity and Stock-Based Compensation (Tables)	6 Months Ended
Stockholders’ Equity and Stock-Based Compensation (Tables)	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
Schedule of Shares Repurchased	A summary of the stock repurchase activity under the Repurchase Program for the six months ended June 30, 2021 is as follows (in thousands, except per share amounts): Six Months Ended June 30, 2021 Aggregate purchase price $ 101,355 Shares repurchased 367 Average price paid per share $ 275.88
Schedule of Option Activity	The following table summarizes the option activity under our stock plans and related information (in thousands, except years and per share amounts): Options Outstanding Number of Weighted- Weighted- Aggregate Balance—December 31, 2020 3,430 $ 45.17 3.6 $ 841,659 Options granted — — Options exercised (538) 30.81 Options canceled (18) 38.62 Balance—June 30, 2021 2,874 $ 47.90 3.2 $ 903,398 Vested and exercisable—June 30, 2021 2,059 $ 36.79 2.8 $ 670,147
Schedule of Restricted Stock Units Activity	A summary of the RSU activity is presented below (in thousands, except years and per share amounts): Number of Weighted- Weighted-Average Aggregate Intrinsic Value Unvested balance—December 31, 2020 1,816 $ 215.68 1.8 $ 527,574 RSUs granted 671 347.89 RSUs vested (280) 202.72 RSUs forfeited/canceled (85) 232.83 Unvested balance—June 30, 2021 2,122 $ 258.52 1.9 $ 768,921
Schedule of Stock-Based Compensation Expense	The following table summarizes the stock-based compensation expense related to our equity awards (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Cost of revenue $ 1,796 $ 1,585 $ 3,196 $ 2,912 Research and development 23,139 19,378 45,121 35,306 Sales and marketing 11,368 8,277 21,453 14,673 General and administrative 8,641 3,682 12,727 7,587 Total stock-based compensation $ 44,944 $ 32,922 $ 82,497 $ 60,478

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
Net Income Per Share (Tables)	Jun. 30, 2021
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Net Income Per Share Available to Common Stock	The following table sets forth the computation of our basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Numerator: Net income $ 196,888 $ 144,793 $ 377,254 $ 283,224 Denominator: Weighted-average shares used in computing net income per share, basic 76,461 75,808 76,384 76,036 Add weighted-average effect of dilutive securities: Stock options and RSUs 3,191 3,486 3,235 3,580 Employee stock purchase plan 58 4 58 4 Weighted-average shares used in computing net income per share, diluted 79,710 79,298 79,677 79,620 Net income per share: Basic $ 2.58 $ 1.91 $ 4.94 $ 3.72 Diluted $ 2.47 $ 1.83 $ 4.73 $ 3.56
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	The following weighted-average outstanding shares of common stock equivalents were excluded from the computation of diluted net income per share for the periods presented because their effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Stock options and RSUs 101 334 115 467 Employee stock purchase plan 20 149 15 159 Total 121 483 130 626

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
Income Taxes (Tables)	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Schedule of Income Tax Expense (Benefit)	Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (in thousands, except percentages) (in thousands, except percentages) Income before income taxes $ 221,084 $ 175,245 $ 428,951 $ 337,064 Provision for income taxes 24,196 30,452 51,697 53,840 Effective tax rate 10.9 % 17.4 % 12.1 % 16.0 %

Geographical Information (Table

Geographical Information (Tables)	6 Months Ended
Geographical Information (Tables)	Jun. 30, 2021
Segment Reporting [Abstract]
Schedule of Revenue and Long Lived Assets, by Location	We operate in one reportable segment. The following table represents revenue based on customers’ shipping addresses (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Americas $ 514,149 $ 435,829 $ 1,016,021 $ 836,489 Europe, Middle East and Africa 112,048 63,977 208,322 136,601 Asia-Pacific 81,122 40,764 150,538 90,509 Total revenue $ 707,319 $ 540,570 $ 1,374,881 $ 1,063,599 Long-lived assets, net, excluding intercompany receivables, investments in subsidiaries, privately-held equity investments and deferred tax assets, by location are summarized as follows (in thousands): June 30, 2021 December 31, 2020 United States $ 23,097 $ 24,110 International 9,265 8,121 Total $ 32,362 $ 32,231

Fair Value Measurements - Sched

Fair Value Measurements - Schedule of Fair Value of Financial Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Amortized Cost	$ 2,388,011	$ 1,978,283
Marketable Securities, Unrealized Gains	831	1,700
Marketable Securities, Unrealized Losses	(827)	(334)
Marketable Securities, Fair Value	2,388,015	1,979,649
Total Financial Assets, Amortized Cost	2,835,844	2,421,372
Total Financial Assets, Fair Value	2,835,848	2,422,738
Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	832,800	523,506
Total Financial Assets, Fair Value	1,280,633	966,595
Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	1,555,215	1,456,143
Total Financial Assets, Fair Value	1,555,215	1,456,143
Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Total Financial Assets, Fair Value	0	0
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Amortized Cost	443,597	438,854
Cash Equivalents, Fair Value	443,597	438,854
Money market funds \| Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value	443,597	438,854
Money market funds \| Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value	0	0
Money market funds \| Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash Equivalents, Fair Value	0	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Amortized Cost	60,959	51,211
Marketable Securities, Unrealized Gains	0	0
Marketable Securities, Unrealized Losses	0	0
Marketable Securities, Fair Value	60,959	51,211
Commercial paper \| Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Commercial paper \| Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	60,959	51,211
Commercial paper \| Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Certificate of deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Amortized Cost	73,870	50,136
Marketable Securities, Unrealized Gains	0	3
Marketable Securities, Unrealized Losses	0	0
Marketable Securities, Fair Value	73,870	50,139
Certificate of deposits \| Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Certificate of deposits \| Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	73,870	50,139
Certificate of deposits \| Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
U.S. government notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Amortized Cost	832,903	523,320
Marketable Securities, Unrealized Gains	111	187
Marketable Securities, Unrealized Losses	(214)	(1)
Marketable Securities, Fair Value	832,800	523,506
U.S. government notes \| Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	832,800	523,506
U.S. government notes \| Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
U.S. government notes \| Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Amortized Cost	1,083,824	878,484
Marketable Securities, Unrealized Gains	532	1,167
Marketable Securities, Unrealized Losses	(578)	(330)
Marketable Securities, Fair Value	1,083,778	879,321
Corporate bonds \| Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Corporate bonds \| Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	1,083,778	879,321
Corporate bonds \| Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Amortized Cost	336,455	475,132
Marketable Securities, Unrealized Gains	188	343
Marketable Securities, Unrealized Losses	(35)	(3)
Marketable Securities, Fair Value	336,608	475,472
Agency securities \| Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Agency securities \| Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	336,608	475,472
Agency securities \| Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable Securities, Fair Value	0	0
Money market funds - restricted
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Amortized Cost	4,236	4,235
Other Assets, Fair Value	4,236	4,235
Money market funds - restricted \| Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Fair Value	4,236	4,235
Money market funds - restricted \| Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Fair Value	0	0
Money market funds - restricted \| Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Assets, Fair Value	$ 0	$ 0

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details)	6 Months Ended
Fair Value Measurements - Narrative (Details)	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Marketable securities, maximum maturity period	24 months
Marketable securities, weighted average remaining duration	1 year

Fair Value Measurements - Inves

Fair Value Measurements - Investment by Maturity Dates (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value Disclosures [Abstract]
Due in 1 year or less	$ 1,258,837
Due in 1 year through 2 years	1,129,178
Total marketable securities	$ 2,388,015	$ 1,979,649

Financial Statements Details -

Financial Statements Details - Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Balance Sheet Components [Abstract]
Cash and cash equivalents	$ 893,688	$ 893,219
Restricted cash included in other assets	4,236	4,235
Total cash, cash equivalents and restricted cash	$ 897,924	$ 897,454	$ 804,489	$ 1,115,515

Financial Statements Details _2

Financial Statements Details - Accounts Receivable, net (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Balance Sheet Components [Abstract]
Accounts receivable	$ 368,817	$ 394,037
Allowance for doubtful accounts	(587)	(659)
Product sales rebate and returns reserve	(4,016)	(3,838)
Accounts receivable, net	$ 364,214	$ 389,540

Financial Statements Details _3

Financial Statements Details - Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Balance Sheet Components [Abstract]
Raw materials	$ 271,055	$ 219,218
Finished goods	272,144	260,450
Total inventories	$ 543,199	$ 479,668

Financial Statements Details _4

Financial Statements Details - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Balance Sheet Components [Abstract]
Inventory deposits	$ 22,386	$ 18,783
Prepaid income taxes	18,479	267
Other current assets	81,017	60,556
Other prepaid expenses and deposits	17,397	15,316
Total prepaid expenses and other current assets	$ 139,279	$ 94,922

Financial Statements Details _5

Financial Statements Details - Property and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 155,756		$ 155,756		$ 147,412
Less: accumulated depreciation	(123,394)		(123,394)		(115,181)
Property and equipment, net	32,362		32,362		32,231
Depreciation	4,800	$ 5,100	9,700	$ 10,300
Equipment and machinery
Property, Plant and Equipment [Line Items]
Property and equipment, gross	77,361		77,361		70,655
Computer hardware and software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	43,087		43,087		40,081
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	30,502		30,502		31,448
Furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	3,592		3,592		3,787
Construction-in-process
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,214		$ 1,214		$ 1,441

Financial Statements Details _6

Financial Statements Details - Accrued Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Balance Sheet Components [Abstract]
Accrued payroll related costs	$ 64,028	$ 73,634
Accrued manufacturing costs	63,260	43,181
Accrued product development costs	15,355	6,733
Accrued warranty costs	8,995	9,314	$ 6,071	$ 6,742
Other	11,607	10,495
Total accrued liabilities	$ 163,245	$ 143,357

Financial Statements Details _7

Financial Statements Details - Warranty Accrual (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Warranty [Roll Forward]
Warranty accrual, beginning of period	$ 9,314	$ 6,742
Liabilities accrued for warranties issued during the period	5,603	2,181
Warranty costs incurred during the period	(5,922)	(2,852)
Warranty accrual, end of period	$ 8,995	$ 6,071

Financial Statements Details _8

Financial Statements Details - Contract Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Change in Contract with Customer, Asset [Roll Forward]
Contract assets, beginning balance			$ 16,380
Contract assets, ending balance	$ 11,935		11,935
Change in Contract with Customer, Liability [Roll Forward]
Contract liabilities, beginning balance	80,465	$ 64,325	85,957	$ 61,050
Less: Revenue recognized from beginning balance	(8,482)	(5,735)	(18,482)	(11,722)
Less: Beginning balance reclassified to deferred revenue	(3,856)	(2,757)	(12,710)	(2,226)
Add: Contract liabilities recognized	15,227	11,435	28,589	20,166
Contract liabilities, ending balance	83,354	$ 67,268	83,354	$ 67,268
Other Current Liabilities
Change in Contract with Customer, Liability [Roll Forward]
Contract liabilities, beginning balance			34,500
Contract liabilities, ending balance	$ 35,900		$ 35,900

Financial Statements Details _9

Financial Statements Details - Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Movement in Deferred Revenue [Roll Forward]
Deferred revenue, beginning balance	$ 720,031	$ 596,775	$ 650,827	$ 575,288
Less: Revenue recognized from beginning balance	(145,556)	(104,480)	(222,865)	(178,264)
Add: Deferral of revenue in current period, excluding amounts recognized during the period	171,615	85,216	318,128	180,487
Deferred revenue, ending balance	$ 746,090	$ 577,511	$ 746,090	$ 577,511

Financial Statements Details_10

Financial Statements Details - Performance Obligations (Details) $ in Millions	Jun. 30, 2021USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 998.7
Unbilled Revenues
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, amount	$ 169.2
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, percentage	83.00%
Performance obligation, period	2 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, percentage	17.00%
Performance obligation, period	2 years

Financial Statements Details_11

Financial Statements Details - Other Income, net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Balance Sheet Components [Abstract]
Interest income	$ 1,872	$ 8,668	$ 3,917	$ 20,330
Other income (expense), net	(153)	(412)	(623)	83
Total other income (expense), net	$ 1,719	$ 8,256	$ 3,294	$ 20,413

Investments (Details)

Investments (Details) - USD ($)	3 Months Ended		6 Months Ended
Investments (Details) - USD ($)	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Equity Securities without Readily Determinable Fair Value
Cost of investments	$ 8,333,000		$ 8,333,000		$ 3,000,000
Cumulative impairment	0		0		0
Cumulative upward adjustment	5,314,000		5,314,000		5,314,000
Carrying amount of investments	13,647,000		13,647,000		$ 8,314,000
Equity Securities, Gain (Loss)
Realized gain (loss)	0	$ 0	0	$ 0
Unrealized gain	$ 0	$ 0	$ 0	$ 0

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Long-term Purchase Commitment [Line Items]
Non-cancellable purchase commitments	$ 1,057.5
Deposits to purchase inventory	25.1	$ 21.5
Contract with manufacturers and suppliers
Long-term Purchase Commitment [Line Items]
Non-cancellable purchase commitments	$ 1,019

Stockholders_ Equity and Stoc_3

Stockholders’ Equity and Stock-Based Compensation - Narrative (Details) - USD ($)	Jan. 01, 2021	Jun. 30, 2021	Apr. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized amount for stock repurchases			$ 1,000,000,000
Remaining authorized repurchase amount		$ 237,300,000
Unamortized compensation costs		$ 550,300,000
Unamortized compensation costs weighted-average period		3 years 4 months 24 days
Performance-based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
RSUs granted (in shares)		69,620
Performance-based Restricted Stock Units \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		3 years
Award vesting rights percentage		0.00%
Performance-based Restricted Stock Units \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period		4 years
Award vesting rights percentage		200.00%
2014 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional shares authorized for issuance (in shares)	2,285,228
2014 Equity Incentive Plan \| Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum increase of number of shares available for issuance (in shares)	12,500,000
Percent of shares outstanding to increase number of shares available for grant and issuance	3.00%
Common stock reserved for issuance (in shares)		23,000,000
2014 Employee Stock Purchase Plan \| Employee Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum increase of number of shares available for issuance (in shares)	2,500,000
Percent of shares outstanding to increase number of shares available for grant and issuance	1.00%
Number of additional shares authorized for issuance (in shares)	761,742
Common stock reserved for issuance (in shares)		4,600,000
Shares issued (in shares)		56,326
Weighted-average purchase price (in dollars per share)		$ 182.76

Stockholders_ Equity and Stoc_4

Stockholders’ Equity and Stock-Based Compensation - Stock Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Share-based Payment Arrangement [Abstract]
Aggregate purchase price	$ 101,355	$ 227,895
Shares repurchased (in shares)	367
Average price paid per share (in dollars per share)	$ 275.88

Stockholders_ Equity and Stoc_5

Stockholders’ Equity and Stock-Based Compensation - Option Activities (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Number of Shares Underlying Outstanding Options
Outstanding, beginning balance (in shares)	3,430
Options granted (in shares)	0
Options exercised (in shares)	(538)
Options canceled (in shares)	(18)
Outstanding, ending balance (in shares)	2,874	3,430
Vested and exercisable (in shares)	2,059
Weighted- Average Exercise Price per Share
Outstanding, beginning balance (in dollars per share)	$ 45.17
Options granted (in dollars per share)	0
Options exercised (in dollars per share)	30.81
Options canceled (in dollars per share)	38.62
Outstanding, ending balance (in dollars per share)	47.90	$ 45.17
Vested and exercisable (in dollars per share)	$ 36.79
Weighted- Average Remaining Contractual Term (Years) and Aggregate Intrinsic Value of Stock Options
Weighted-average remaining contractual term of stock options outstanding	3 years 2 months 12 days	3 years 7 months 6 days
Weighted-average remaining contractual term of stock options vested and exercisable	2 years 9 months 18 days
Aggregate intrinsic value of stock options outstanding	$ 903,398	$ 841,659
Aggregate intrinsic value of stock options outstanding, vested and exercisable	$ 670,147

Stockholders_ Equity and Stoc_6

Stockholders’ Equity and Stock-Based Compensation - Restricted Stock Unit (RSU) Activities (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Number of Shares
Unvested beginning balance (in shares)	1,816
RSUs granted (in shares)	671
RSUs vested (in shares)	(280)
RSUs forfeited/canceled (in shares)	(85)
Unvested ending balance (in shares)	2,122	1,816
Weighted- Average Grant Date Fair Value Per Share
Unvested beginning balance (in dollars per share)	$ 215.68
RSUs granted (in dollars per share)	347.89
RSUs vested (in dollars per share)	202.72
RSUs forfeited/canceled (in dollars per share)	232.83
Unvested ending balance (in dollars per share)	$ 258.52	$ 215.68
Restricted Stock Unit Activities, Weighted-Average Remaining Contractual Term and Aggregate Intrinsic Value
Unvested, weighted average remaining contractual term (in years)	1 year 10 months 24 days	1 year 9 months 18 days
Unvested, aggregate intrinsic value	$ 768,921	$ 527,574

Stockholders_ Equity and Stoc_7

Stockholders’ Equity and Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 44,944	$ 32,922	$ 82,497	$ 60,478
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	1,796	1,585	3,196	2,912
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	23,139	19,378	45,121	35,306
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	11,368	8,277	21,453	14,673
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total stock-based compensation	$ 8,641	$ 3,682	$ 12,727	$ 7,587

Net Income Per Share - Basic an

Net Income Per Share - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Numerator:
Net income	$ 196,888	$ 144,793	$ 377,254	$ 283,224
Denominator:
Weighted-average shares used in computing net income per share, basic (in shares)	76,461	75,808	76,384	76,036
Add weighted-average effect of dilutive securities:
Stock options and RSUs (in shares)	3,191	3,486	3,235	3,580
Employee stock purchase plan (in shares)	58	4	58	4
Weighted-average shares used in computing net income per share, diluted (in shares)	79,710	79,298	79,677	79,620
Net income per share:
Basic (in dollars per share)	$ 2.58	$ 1.91	$ 4.94	$ 3.72
Diluted (in dollars per share)	$ 2.47	$ 1.83	$ 4.73	$ 3.56

Net Income Per Share - Antidilu

Net Income Per Share - Antidilutive Securities Excluded from Earnings Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)	121	483	130	626
Stock options and RSUs
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)	101	334	115	467
Employee stock purchase plan
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from earnings per share (in shares)	20	149	15	159

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income before income taxes	$ 221,084	$ 175,245	$ 428,951	$ 337,064
Provision for income taxes	$ 24,196	$ 30,452	$ 51,697	$ 53,840
Effective tax rate	10.90%	17.40%	12.10%	16.00%

Geographical Information (Detai

Geographical Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
Geographical Information (Details) $ in Thousands	Jun. 30, 2021USD ($)	Jun. 30, 2020USD ($)	Jun. 30, 2021USD ($)segment	Jun. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of reportable segments \| segment			1
Revenue	$ 707,319	$ 540,570	$ 1,374,881	$ 1,063,599
Long-lived assets	32,362		32,362		$ 32,231
Americas
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	514,149	435,829	1,016,021	836,489
Europe, Middle East and Africa
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	112,048	63,977	208,322	136,601
Asia-Pacific
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	81,122	$ 40,764	150,538	$ 90,509
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	23,097		23,097		24,110
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived assets	$ 9,265		$ 9,265		$ 8,121

Subsequent Events (Details)

Subsequent Events (Details) $ in Millions	Jul. 20, 2021USD ($)
Subsequent Event
Subsequent Event [Line Items]
Total consideration	$ 40