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Balance Sheet Components
12 Months Ended
Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Balance Sheet Components Balance Sheet Components
Accounts Receivable, Net
Accounts receivable are recorded at the invoiced amount and are non-interest bearing. Accounts receivable are stated at their net realizable value, net of a sales allowance and an allowance for doubtful accounts.
Activity in the allowance for doubtful accounts was as follows:
December 31,
202020192018
(in thousands)
Beginning balance$533 $160 $— 
Provision for bad debt3,368 2,488 1,080 
Write-off of uncollectible accounts receivable(2,198)(2,115)(920)
Ending balance$1,703 $533 $160 
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following:
 December 31,
20202019
 (in thousands)
Prepaid expenses$13,689 $10,913 
Deposits4,246 2,773 
Other10,295 3,308 
Total prepaid expenses and other current assets$28,230 $16,994 
Property and Equipment, Net
Property and equipment, net consisted of the following:
December 31,
20202019
(in thousands)
Property and equipment:
Servers—network infrastructure$108,988 $84,979 
Buildings— 13,035 
Construction in progress11,242 8,692 
Capitalized internal-use software49,618 31,171 
Office and computer equipment17,867 13,528 
Office furniture5,657 6,124 
Software1,808 1,025 
Leasehold improvements10,686 9,870 
Asset retirement obligation430 231 
Gross property and equipment206,296 168,655 
Less accumulated depreciation and amortization(82,608)(67,189)
Total property and equipment, net$123,688 $101,466 
In connection with the adoption of ASC 842, the Company derecognized the building asset of $13.0 million as of January 1, 2020, which was initially recorded as a result of build-to-suit lease accounting and reclassified a portion of the balance, $1.6 million, to leasehold improvements. This amount reflects the lessee-owned assets of the construction project and is being depreciated over the remaining lease term. For further details on the adoption of ASC 842, refer to Note 2 to these consolidated financial statements.
Depreciation and amortization expense on property and equipment for the years ended December 31, 2020, 2019, and 2018 was $45.9 million, $29.4 million, and $18.4 million, respectively. This includes amortization expense for capitalized internal-use software which totaled $12.6 million, $6.7 million, and $3.3 million for the years ended December 31, 2020, 2019, and 2018, respectively.
Goodwill
As of December 31, 2020 and 2019, the Company's goodwill was $17.2 million and $4.1 million, respectively. During the year ended December 31, 2020, the Company recorded $13.1 million of goodwill in connection with the acquisition of S2 Systems Corporation (S2). For further detail on the acquisition, refer to Note 14 to these consolidated financial statements. No goodwill impairments were recorded during the years ended December 31, 2020 and 2019.
Acquired Intangible Assets, Net
Acquired intangible assets, net consisted of the following:
December 31, 2020
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
(in thousands)
Developed technology$5,600 $2,800 $2,800 
Total acquired intangible assets, net$5,600 $2,800 $2,800 

December 31, 2019
Gross Carrying
Amount
Accumulated
Amortization
Net Book
Value
(in thousands)
Developed technology$250 $219 $31 
Total acquired intangible assets, net$250 $219 $31 
The Company recorded $5.6 million of developed technology in connection with the acquisition of S2 as of December 31, 2020. For further details on the acquisition, refer to Note 14 of these consolidated financial statements.
Amortization of acquired intangible assets for the years ended December 31, 2020, 2019, and 2018 was $3.1 million, $0.1 million, and $0.5 million, respectively.
As of December 31, 2020, the estimated future amortization expense of acquired intangible assets was as follows:
Estimated
Amortization
(in thousands)
Year ending December 31,
2021$2,800 
Total$2,800 
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following:
December 31,
20202019
(in thousands)
Accrued compensation and benefits$25,410 $14,970 
Accrued expenses6,916 5,331 
Customer refunds and credits1,548 3,328 
Accrued co-location and bandwidth5,205 2,696 
Other6,548 1,989 
Total accrued expenses and other current liabilities$45,627 $28,314 
Other Noncurrent Liabilities
Other noncurrent liabilities consisted of the following:
December 31,
20202019
(in thousands)
Accrued taxes$7,033 $4,862 
Deferred rent— 2,342 
Other2,826 2,599 
Total other noncurrent liabilities$9,859 $9,803 

In connection with the adoption of ASC 842, the Company derecognized the deferred rent as of January 1, 2020. For further details on the adoption of ASC 842, refer to Note 2 to these consolidated financial statements.