54 on december 23 , 2020 , silver lake partners vi de ( aiv ) , l.p. ( “ silver lake ” ) agreed to purchase $ 550 million of shares of our class a common stock , comprising ( a ) 15,018,484 shares at $ 21.64 per share and ( b ) $ 225 million of shares at the initial public offering price of $ 30 per share , in a concurrent private placement transaction ( the “ silver lake investment ” ) . on february 1 , 2021 , we closed our private placement transaction with silver lake . for a description of subsequent events , see item 8 of part ii , financial statements and supplementary data - note 17 , “ subsequent events . ” key factors affecting our performance we believe that the growth and future success of our business depends on many factors . while each of these factors presents significant opportunities for our business , they also pose important challenges that we must successfully address in order to sustain our growth and improve our results of operations . customer acquisition and expansion we are focused on continuing to acquire new customers to support our long-term growth . we have invested , and expect to continue to invest , heavily in our sales and marketing efforts to drive customer acquisition . as of december 31 , 2020 , we had more than 13,500 customers , including 85 % of the fortune 100. our customers include businesses of all sizes , academic institutions , and government organizations . we define the number of customers at the end of any particular period as the number of parties or individual legal entities that have entered into a separate subscription contract with us . for avoidance of doubt , international subsidiaries of parent entities are not separately counted , but business units , brands , and academic institutions are counted if they are distinct legal entities . a single organization or customer may have multiple paid business accounts . our business model relies on rapidly and efficiently landing new customers and expanding our relationship with them over time . we have a history of attracting new customers , driving expanded use through upselling our xm platform across the enterprise , and cross-selling through the subsequent deployment of additional solutions throughout the enterprise . our relationship with sap has resulted in greater access to enterprise customers and increased cross-sell opportunities through sap 's customer base . we continue to increase the number of customers who have entered into larger subscriptions with us . we had 1,338 customers with arr of $ 100,000 or more as of december 31 , 2020 , increased from 1,026 and 720 as of december 31 , 2019 and 2018 , respectively . further , as of december 31 , 2020 , we had 74 customers with arr of $ 1 million or more , up from 43 and 27 as of december 31 , 2019 and 2018 , respectively . the number of customers with arr of $ 100,000 or more indicates the strategic importance of our platform for enterprise customers and our ability to both initially land significant accounts and grow them over time . investing for growth our investment for growth encompasses multiple critical areas , including international growth , enterprise sales , and product expansion . our revenue outside of the united states represented 28 % , 26 % , and 23 % of our total revenue in the years ended december 31 , 2020 , 2019 , and 2018. we initially started our expansion outside of the united states in english-speaking countries , such as ireland , the united kingdom , canada , and australia , as we were able to leverage our core technologies and go-to-market motion . since opening our first international office in dublin , ireland in 2013 , we now have 27 sales offices in countries around the globe . we continue to evolve our technology to ensure that we are best serving our customers ' needs . we believe this will lead to continued increased retention and positive customer referrals that will continue to generate expansion within current customer organizations and business from new customers . since 2015 , we have established offices in seattle and poland to expand our engineering headcount . we continue to invest in research and development to drive product innovation and development . 55 strategic partnerships in 2018 , we announced the launch of qpn . since then , we have built out our partner network to include over 200 global member companies partnering with us on our platform to help drive breakthrough business outcomes for joint customers . since the sap acquisition in 2019 , we have also developed joint go-to-market and product integrations with sap . we expect our partnerships to extend our sales reach and provide implementation leverage both domestically and internationally , as well as product and technology integrations that will accelerate our product roadmap . key business metrics we review a number of operating and financial metrics , including the following key metrics to evaluate our business , measure our performance , identify trends affecting our business , formulate business plans , and make strategic decisions . large customers we define our large customers as those spending more than $ 100,000 in arr on our xm platform . we believe that our ability to increase the number of large customers is an indicator of our market penetration , strategic demand for our platform , the growth of our business , and our potential future business opportunities . increasing awareness of our platform and its broad range of capabilities , coupled with the mainstream adoption of cloud-based technology , has expanded the diversity of our large customer base to include organizations of different sizes across virtually all industries . story_separator_special_tag 60 results of operations the following table sets forth our results of operations for the periods presented : replace_table_token_1_th ( 1 ) includes equity and cash settled stock-based compensation expense , as follows : replace_table_token_2_th _ ( a ) as a result of the sap acquisition , our stock-based compensation expense reflects the recognition of both equity-classified awards and liability-classified awards . liability-classified awards are settled in cash in accordance with sap 's employee equity compensation programs . 2020 stock-based compensation expense consisted of $ 224.0 million of liability-classified awards . during the year ended december 31 , 2020 awards of $ 388.6 million were settled in cash . 2019 stock-based compensation expense consisted of $ 185.8 million of equity-classified awards that was recognized as a result of the sap acquisition , and $ 690.4 million of liability-classified awards , of which $ 312.8 million were settled in cash in 2019 . 2018 stock-based compensation expense consisted entirely of equity-classified awards . liability-classified awards are recorded according to mark-to-market accounting . 61 ( 2 ) includes amortization of acquired intangible assets as follows : replace_table_token_3_th the following table sets forth our results of operations for the periods presented as a percentage of our total revenue for those periods : replace_table_token_4_th comparison of the years ended december 31 , 2020 and 2019 revenue replace_table_token_5_th subscription revenue increased by $ 145.4 million , or 34 % , for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019. this increase was due primarily to increased demand for our solutions from 62 new and existing customers . of the increase in subscription revenue for the year ended december 31 , 2020 compared to the year ended december 31 , 2019 , approximately $ 92.0 million was attributable to existing customers and approximately $ 53.4 million was attributable to new customers . the increase in revenue from existing customers was driven by upgrades of current subscription solutions and the purchase of additional solutions within our platform . pricing changes were not material to the increase in revenue . professional services and other revenue increased $ 27.0 million , or 17 % , for the year ended december 31 , 2020 compared to the year ended december 31 , 2019. this increase was primarily due to an increase in revenue from large customers , who generally require more services . cost of revenue , gross profit , and gross margin replace_table_token_6_th cost of subscription revenue decreased $ 5.3 million , or 8 % , for the year ended december 31 , 2020 , as compared to the year ended december 31 , 2019 , while subscription revenue grew 34 % over the same period . this decrease was driven by a $ 19.5 million decrease in stock-based compensation expense primarily due to fluctuations in sap 's stock price related to liability-classified awards , partially offset by a $ 6.7 million increase in employee-related costs from headcount growth , a $ 5.9 million increase in server costs , and a $ 1.5 million increase in amortization of internal-use software . cost of professional services and other revenue increased $ 18.3 million , or 16 % , for the year ended december 31 , 2020 , as compared to the year ended december 31 , 2019. this increase was driven by a $ 19.2 million increase in employee-related costs from headcount growth and a $ 11.1 million increase in professional services vendor costs , offset partially by a $ 10.4 million decrease in stock-based compensation expense and a $ 1.6 million decrease in travel-related expenses . our gross margins increased from 69 % during the year ended december 31 , 2019 to 74 % during the year ended december 31 , 2020 , due primarily to a decrease in equity and cash settled stock-based compensation expense of $ 29.9 million , as described above . operating expenses research and development year ended december 31 , 2020 2019 $ change % change ( in thousands ) research and development $ 212,795 $ 242,124 $ ( 29,329 ) ( 12 ) % research and development expenses decreased $ 29.3 million , or 12 % , for the year ended december 31 , 2020 , as compared to the year ended december 31 , 2019. this decrease was driven by a $ 62.5 million decrease in stock- 63 based compensation expense , partially offset by a $ 33.8 million increase in employee-related costs from headcount growth as we continue to add to and enhance our products . sales and marketing year ended december 31 , 2020 2019 $ change % change ( in thousands ) sales and marketing $ 431,794 $ 440,325 $ ( 8,531 ) ( 2 ) % sales and marketing expenses decreased $ 8.5 million , or 2 % , for the year ended december 31 , 2020 , as compared to the year ended december 31 , 2019. the decrease in sales and marketing was primarily driven by a $ 77.7 million decrease in stock-based compensation expense and a $ 9.2 million decrease in travel-related expenses resulting from the covid-19 pandemic , partially offset by a $ 75.1 million increase in employee-related costs from headcount growth and a $ 3.3 million increase in marketing spend . general and administrative year ended december 31 , 2020 2019 $ change % change ( in thousands ) general and administrative $ 175,499 $ 717,363 $ ( 541,864 ) ( 76 ) % general and administrative expenses decreased $ 541.9 million , or 76 % , for the year ended december 31 , 2020 , as compared to the year ended december 31 , 2019. the decrease in general and administrative expenses was primarily driven by a $ 482.1 million decrease in stock-based compensation expense and a $ 62.7 million decrease in advisory and legal costs related to the sap acquisition . other non-operating income ( expense ) , net other non-operating income

liquidity and capital resources as of december 31 , 2020 we had cash and cash equivalents of $ 203.9 million . our cash and cash equivalents consist primarily of cash and money market funds . as of december 31 , 2020 , we had $ 23.5 million of our cash and cash equivalents held by our foreign subsidiaries . we have financed our operations primarily through cash generated from our operations , equity issuances , and proceeds from capital contributions received from sap in conjunction with the sap acquisition and funding of cash settled stock-based compensation expense . our principal uses of cash in recent periods have been funding our operations , making capital expenditures , and settling equity-based awards . we believe our existing cash and cash equivalents , together with cash provided by operations and funding obligations from sap , will be sufficient to meet our needs for at least the next 12 months . our future capital requirements will depend on many factors , including our revenue growth rate , subscription renewal activity , the timing and extent of spending to support further infrastructure development and research and development efforts , the timing and extent of additional capital expenditures to invest in existing and new office spaces , the satisfaction of tax withholding obligations for the settlement of future share-based awards , the expansion of sales and marketing and international operation activities , the introduction of new product capabilities and enhancement of our xm platform , and the continuing market acceptance of our platform . with respect to the funding of tax withholding and remittance obligations related to the settlement of share-based awards , we may use a significant portion of our existing cash , including funds raised in our initial public offering and private placements to q ii and silver lake . if we elect not to fully fund tax withholding and remittance obligations through cash or if we are unable to do so , we may choose to sell equity or debt securities , or rely on a combination of these alternatives .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources as of december 31 , 2020 we had cash and cash equivalents of $ 203.9 million . our cash and cash equivalents consist primarily of cash and money market funds . as of december 31 , 2020 , we had $ 23.5 million of our cash and cash equivalents held by our foreign subsidiaries . we have financed our operations primarily through cash generated from our operations , equity issuances , and proceeds from capital contributions received from sap in conjunction with the sap acquisition and funding of cash settled stock-based compensation expense . our principal uses of cash in recent periods have been funding our operations , making capital expenditures , and settling equity-based awards . we believe our existing cash and cash equivalents , together with cash provided by operations and funding obligations from sap , will be sufficient to meet our needs for at least the next 12 months . our future capital requirements will depend on many factors , including our revenue growth rate , subscription renewal activity , the timing and extent of spending to support further infrastructure development and research and development efforts , the timing and extent of additional capital expenditures to invest in existing and new office spaces , the satisfaction of tax withholding obligations for the settlement of future share-based awards , the expansion of sales and marketing and international operation activities , the introduction of new product capabilities and enhancement of our xm platform , and the continuing market acceptance of our platform . with respect to the funding of tax withholding and remittance obligations related to the settlement of share-based awards , we may use a significant portion of our existing cash , including funds raised in our initial public offering and private placements to q ii and silver lake . if we elect not to fully fund tax withholding and remittance obligations through cash or if we are unable to do so , we may choose to sell equity or debt securities , or rely on a combination of these alternatives .
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 Suspicious Activity Report : 54 on december 23 , 2020 , silver lake partners vi de ( aiv ) , l.p. ( “ silver lake ” ) agreed to purchase $ 550 million of shares of our class a common stock , comprising ( a ) 15,018,484 shares at $ 21.64 per share and ( b ) $ 225 million of shares at the initial public offering price of $ 30 per share , in a concurrent private placement transaction ( the “ silver lake investment ” ) . on february 1 , 2021 , we closed our private placement transaction with silver lake . for a description of subsequent events , see item 8 of part ii , financial statements and supplementary data - note 17 , “ subsequent events . ” key factors affecting our performance we believe that the growth and future success of our business depends on many factors . while each of these factors presents significant opportunities for our business , they also pose important challenges that we must successfully address in order to sustain our growth and improve our results of operations . customer acquisition and expansion we are focused on continuing to acquire new customers to support our long-term growth . we have invested , and expect to continue to invest , heavily in our sales and marketing efforts to drive customer acquisition . as of december 31 , 2020 , we had more than 13,500 customers , including 85 % of the fortune 100. our customers include businesses of all sizes , academic institutions , and government organizations . we define the number of customers at the end of any particular period as the number of parties or individual legal entities that have entered into a separate subscription contract with us . for avoidance of doubt , international subsidiaries of parent entities are not separately counted , but business units , brands , and academic institutions are counted if they are distinct legal entities . a single organization or customer may have multiple paid business accounts . our business model relies on rapidly and efficiently landing new customers and expanding our relationship with them over time . we have a history of attracting new customers , driving expanded use through upselling our xm platform across the enterprise , and cross-selling through the subsequent deployment of additional solutions throughout the enterprise . our relationship with sap has resulted in greater access to enterprise customers and increased cross-sell opportunities through sap 's customer base . we continue to increase the number of customers who have entered into larger subscriptions with us . we had 1,338 customers with arr of $ 100,000 or more as of december 31 , 2020 , increased from 1,026 and 720 as of december 31 , 2019 and 2018 , respectively . further , as of december 31 , 2020 , we had 74 customers with arr of $ 1 million or more , up from 43 and 27 as of december 31 , 2019 and 2018 , respectively . the number of customers with arr of $ 100,000 or more indicates the strategic importance of our platform for enterprise customers and our ability to both initially land significant accounts and grow them over time . investing for growth our investment for growth encompasses multiple critical areas , including international growth , enterprise sales , and product expansion . our revenue outside of the united states represented 28 % , 26 % , and 23 % of our total revenue in the years ended december 31 , 2020 , 2019 , and 2018. we initially started our expansion outside of the united states in english-speaking countries , such as ireland , the united kingdom , canada , and australia , as we were able to leverage our core technologies and go-to-market motion . since opening our first international office in dublin , ireland in 2013 , we now have 27 sales offices in countries around the globe . we continue to evolve our technology to ensure that we are best serving our customers ' needs . we believe this will lead to continued increased retention and positive customer referrals that will continue to generate expansion within current customer organizations and business from new customers . since 2015 , we have established offices in seattle and poland to expand our engineering headcount . we continue to invest in research and development to drive product innovation and development . 55 strategic partnerships in 2018 , we announced the launch of qpn . since then , we have built out our partner network to include over 200 global member companies partnering with us on our platform to help drive breakthrough business outcomes for joint customers . since the sap acquisition in 2019 , we have also developed joint go-to-market and product integrations with sap . we expect our partnerships to extend our sales reach and provide implementation leverage both domestically and internationally , as well as product and technology integrations that will accelerate our product roadmap . key business metrics we review a number of operating and financial metrics , including the following key metrics to evaluate our business , measure our performance , identify trends affecting our business , formulate business plans , and make strategic decisions . large customers we define our large customers as those spending more than $ 100,000 in arr on our xm platform . we believe that our ability to increase the number of large customers is an indicator of our market penetration , strategic demand for our platform , the growth of our business , and our potential future business opportunities . increasing awareness of our platform and its broad range of capabilities , coupled with the mainstream adoption of cloud-based technology , has expanded the diversity of our large customer base to include organizations of different sizes across virtually all industries . story_separator_special_tag 60 results of operations the following table sets forth our results of operations for the periods presented : replace_table_token_1_th ( 1 ) includes equity and cash settled stock-based compensation expense , as follows : replace_table_token_2_th _ ( a ) as a result of the sap acquisition , our stock-based compensation expense reflects the recognition of both equity-classified awards and liability-classified awards . liability-classified awards are settled in cash in accordance with sap 's employee equity compensation programs . 2020 stock-based compensation expense consisted of $ 224.0 million of liability-classified awards . during the year ended december 31 , 2020 awards of $ 388.6 million were settled in cash . 2019 stock-based compensation expense consisted of $ 185.8 million of equity-classified awards that was recognized as a result of the sap acquisition , and $ 690.4 million of liability-classified awards , of which $ 312.8 million were settled in cash in 2019 . 2018 stock-based compensation expense consisted entirely of equity-classified awards . liability-classified awards are recorded according to mark-to-market accounting . 61 ( 2 ) includes amortization of acquired intangible assets as follows : replace_table_token_3_th the following table sets forth our results of operations for the periods presented as a percentage of our total revenue for those periods : replace_table_token_4_th comparison of the years ended december 31 , 2020 and 2019 revenue replace_table_token_5_th subscription revenue increased by $ 145.4 million , or 34 % , for the year ended december 31 , 2020 as compared to the year ended december 31 , 2019. this increase was due primarily to increased demand for our solutions from 62 new and existing customers . of the increase in subscription revenue for the year ended december 31 , 2020 compared to the year ended december 31 , 2019 , approximately $ 92.0 million was attributable to existing customers and approximately $ 53.4 million was attributable to new customers . the increase in revenue from existing customers was driven by upgrades of current subscription solutions and the purchase of additional solutions within our platform . pricing changes were not material to the increase in revenue . professional services and other revenue increased $ 27.0 million , or 17 % , for the year ended december 31 , 2020 compared to the year ended december 31 , 2019. this increase was primarily due to an increase in revenue from large customers , who generally require more services . cost of revenue , gross profit , and gross margin replace_table_token_6_th cost of subscription revenue decreased $ 5.3 million , or 8 % , for the year ended december 31 , 2020 , as compared to the year ended december 31 , 2019 , while subscription revenue grew 34 % over the same period . this decrease was driven by a $ 19.5 million decrease in stock-based compensation expense primarily due to fluctuations in sap 's stock price related to liability-classified awards , partially offset by a $ 6.7 million increase in employee-related costs from headcount growth , a $ 5.9 million increase in server costs , and a $ 1.5 million increase in amortization of internal-use software . cost of professional services and other revenue increased $ 18.3 million , or 16 % , for the year ended december 31 , 2020 , as compared to the year ended december 31 , 2019. this increase was driven by a $ 19.2 million increase in employee-related costs from headcount growth and a $ 11.1 million increase in professional services vendor costs , offset partially by a $ 10.4 million decrease in stock-based compensation expense and a $ 1.6 million decrease in travel-related expenses . our gross margins increased from 69 % during the year ended december 31 , 2019 to 74 % during the year ended december 31 , 2020 , due primarily to a decrease in equity and cash settled stock-based compensation expense of $ 29.9 million , as described above . operating expenses research and development year ended december 31 , 2020 2019 $ change % change ( in thousands ) research and development $ 212,795 $ 242,124 $ ( 29,329 ) ( 12 ) % research and development expenses decreased $ 29.3 million , or 12 % , for the year ended december 31 , 2020 , as compared to the year ended december 31 , 2019. this decrease was driven by a $ 62.5 million decrease in stock- 63 based compensation expense , partially offset by a $ 33.8 million increase in employee-related costs from headcount growth as we continue to add to and enhance our products . sales and marketing year ended december 31 , 2020 2019 $ change % change ( in thousands ) sales and marketing $ 431,794 $ 440,325 $ ( 8,531 ) ( 2 ) % sales and marketing expenses decreased $ 8.5 million , or 2 % , for the year ended december 31 , 2020 , as compared to the year ended december 31 , 2019. the decrease in sales and marketing was primarily driven by a $ 77.7 million decrease in stock-based compensation expense and a $ 9.2 million decrease in travel-related expenses resulting from the covid-19 pandemic , partially offset by a $ 75.1 million increase in employee-related costs from headcount growth and a $ 3.3 million increase in marketing spend . general and administrative year ended december 31 , 2020 2019 $ change % change ( in thousands ) general and administrative $ 175,499 $ 717,363 $ ( 541,864 ) ( 76 ) % general and administrative expenses decreased $ 541.9 million , or 76 % , for the year ended december 31 , 2020 , as compared to the year ended december 31 , 2019. the decrease in general and administrative expenses was primarily driven by a $ 482.1 million decrease in stock-based compensation expense and a $ 62.7 million decrease in advisory and legal costs related to the sap acquisition . other non-operating income ( expense ) , net other non-operating income

