Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | CALLIDUS SOFTWARE INC | |
Entity Central Index Key | 1035748 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 55,274,267 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $98,525 | $34,200 |
Short-term investments | 2,766 | 2,766 |
Accounts receivable, net of allowances of $918 and $1,063 at March 31, 2015 and December 31, 2014, respectively | 38,178 | 41,623 |
Prepaid and other current assets | 10,662 | 10,384 |
Total current assets | 150,131 | 88,973 |
Property and equipment, net | 20,645 | 18,755 |
Goodwill | 46,420 | 46,970 |
Intangible assets, net | 16,616 | 17,757 |
Deferred income taxes, noncurrent | 399 | 440 |
Deposits and other noncurrent assets | 3,156 | 3,403 |
Total assets | 237,367 | 176,298 |
Current liabilities: | ||
Accounts payable | 3,918 | 2,056 |
Accrued payroll and related expenses | 8,112 | 9,051 |
Accrued expenses | 12,418 | 16,868 |
Deferred income taxes | 1,475 | 1,475 |
Deferred revenue | 63,702 | 61,427 |
Capital lease obligations | 889 | 1,001 |
Total current liabilities | 90,514 | 91,878 |
Deferred revenue, noncurrent | 8,692 | 10,195 |
Deferred income taxes, noncurrent | 500 | 561 |
Revolving line of credit | 10,480 | 10,481 |
Other noncurrent liabilities | 4,618 | 4,709 |
Total liabilities | 114,804 | 117,824 |
Commitments and contingencies (Note 5) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 5,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock, $0.001 par value; 100,000 shares authorized; 57,530 and 51,285 shares issued and 55,191 and 48,946 shares outstanding at March 31, 2015 and December 31, 2014, respectively | 54 | 49 |
Additional paid-in capital | 413,132 | 344,312 |
Treasury stock; 2,339 shares at March 31, 2015 and December 31, 2014 | -14,430 | -14,430 |
Accumulated other comprehensive loss | -1,432 | -739 |
Accumulated deficit | -274,761 | -270,718 |
Total stockholders’ equity | 122,563 | 58,474 |
Total liabilities and stockholders’ equity | $237,367 | $176,298 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances (in dollars) | $918 | $1,063 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000 | 5,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 100,000 | 100,000 |
Common stock, shares issued | 57,530 | 51,285 |
Common stock, shares outstanding | 55,191 | 49,946 |
Treasury stock, shares | 2,339 | 2,339 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenue: | ||
Recurring | $28,893 | $22,250 |
Services and license | 10,852 | 8,727 |
Total revenue | 39,745 | 30,977 |
Cost of revenue: | ||
Recurring | 8,358 | 7,288 |
Services and license | 7,661 | 5,110 |
Total cost of revenue | 16,019 | 12,398 |
Gross profit | 23,726 | 18,579 |
Operating expenses: | ||
Sales and marketing | 13,726 | 10,727 |
Research and development | 6,038 | 4,873 |
General and administrative | 7,418 | 5,086 |
Restructuring and other | 116 | 0 |
Total operating expenses | 27,298 | 20,686 |
Operating loss | -3,572 | -2,107 |
Interest income and other income (expense), net | -190 | 27 |
Interest expense | -67 | -237 |
Loss before provision for income taxes | -3,829 | -2,317 |
Provision for income taxes | 214 | 150 |
Net loss | -4,043 | -2,467 |
Net loss per share | ||
Basic and Diluted | ($0.08) | ($0.05) |
Weighted Average Number of Shares Outstanding, Basic | 50,709 | 45,944 |
Comprehensive loss: | ||
Net loss | 4,043 | 2,467 |
Unrealized gains (loss) on available-for-sale securities | 6 | -2 |
Foreign currency translation adjustments | -699 | 35 |
Comprehensive loss | ($4,736) | ($2,434) |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net loss | ($4,043) | ($2,467) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation expense | 1,387 | 1,152 |
Amortization of intangible assets | 1,288 | 1,233 |
Provision for doubtful accounts | 94 | 253 |
Stock-based compensation | 4,817 | 2,292 |
Deferred income taxes | -59 | -311 |
Release of valuation allowance | -149 | |
Loss on disposal of property and equipment | 6 | 0 |
Amortization of convertible notes issuance cost | 0 | 32 |
Net amortization on investments | 5 | 8 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 3,350 | 2,841 |
Prepaid and other current assets | -230 | -463 |
Other noncurrent assets | 247 | -107 |
Accounts payable | 2,089 | 332 |
Accrued expenses | -781 | 245 |
Accrued payroll and related expenses | -939 | -1,369 |
Accrued restructuring and other expenses | 0 | -167 |
Deferred revenue | 772 | 2,114 |
Net cash provided by operating activities | 8,003 | 5,469 |
Cash flows from investing activities: | ||
Purchases of investments | 0 | -1,209 |
Proceeds from maturities and sale of investments | 0 | 3,750 |
Purchases of property and equipment (net) | -7,063 | -3,597 |
Purchases of intangible assets | -234 | -112 |
Acquisitions, net of cash acquired | -2,363 | |
Net cash (used in) investing activities | -7,297 | -3,531 |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock | 64,370 | 0 |
Proceeds from issuance of common stock | 1,581 | 1,190 |
Restricted stock units acquired to settle employee withholding liability | -1,959 | -1,347 |
Payment of consideration related to acquisitions | -226 | -630 |
Repayment of debt | -150 | |
Payment of principal under capital leases | -112 | -309 |
Proceeds from term note financing, net of payment | 0 | 2,996 |
Change in restricted cash | 0 | -2,996 |
Net cash provided by (used in) financing activities | 63,654 | -1,246 |
Effect of exchange rates on cash and cash equivalents | -35 | 35 |
Net increase in cash and cash equivalents | 64,325 | 727 |
Cash and cash equivalents at beginning of period | 34,200 | 28,295 |
Cash and cash equivalents at end of period | 98,525 | 29,022 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest on convertible debt | 0 | 169 |
Cash paid for interest on capital leases | 8 | 16 |
Non-cash investing and financing activities: | ||
Purchases of property and equipment through accounts payable and other accrued liabilities | $3,775 | $748 |
Financial_Instruments
Financial Instruments | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Financial Instruments | |||||||||||||||||
Financial Instruments | Financial Instruments | ||||||||||||||||
As of March 31, 2015 and December 31, 2014, all investment debt securities are classified as available-for-sale and carried at estimated fair value, which is determined based on the inputs discussed below. | |||||||||||||||||
The Company classifies all highly liquid instruments with an original maturity on the date of purchase of three months or less as cash and cash equivalents. The Company classifies available-for-sale securities that have a maturity date longer than three months as short-term investments, including those investments with a maturity date of longer than one year that are highly liquid and which the Company does not intend to hold to maturity. | |||||||||||||||||
Realized gains and losses are calculated using the specific identification method. As of March 31, 2015 and December 31, 2014, the Company had no short-term investments in a material unrealized loss position. | |||||||||||||||||
The components of the Company’s cash, cash equivalents, and investments classified as available-for-sale were as follows at March 31, 2015 and December 31, 2014 (in thousands): | |||||||||||||||||
31-Mar-15 | Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Cash | $ | 92,205 | $ | — | $ | — | $ | 92,205 | |||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | 6,320 | — | — | 6,320 | |||||||||||||
Total cash equivalents | 6,320 | — | — | 6,320 | |||||||||||||
Total cash and cash equivalents | $ | 98,525 | $ | — | $ | — | $ | 98,525 | |||||||||
Short-term investments: | |||||||||||||||||
Corporate notes and obligations | 2,767 | — | (1 | ) | 2,766 | ||||||||||||
Total short-term investments | $ | 2,767 | $ | — | $ | (1 | ) | $ | 2,766 | ||||||||
December 31, 2014 | Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Cash | $ | 27,890 | $ | — | $ | — | $ | 27,890 | |||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | 6,310 | — | — | 6,310 | |||||||||||||
Total cash equivalents | 6,310 | — | — | 6,310 | |||||||||||||
Total cash and cash equivalents | $ | 34,200 | $ | — | $ | — | $ | 34,200 | |||||||||
Short-term investments: | |||||||||||||||||
Corporate notes and obligations | 2,773 | — | (7 | ) | 2,766 | ||||||||||||
Total short-term investments | $ | 2,773 | $ | — | $ | (7 | ) | $ | 2,766 | ||||||||
The market value and the amortized cost of available-for-sale debt securities by contractual maturities as of March 31, 2015 were as follows (in thousands): | |||||||||||||||||
Contractual maturity | Amortized | Estimated | |||||||||||||||
Cost | Fair value | ||||||||||||||||
Less than 1 year | $ | 2,363 | $ | 2,364 | |||||||||||||
Between 1 and 2 years | 404 | 402 | |||||||||||||||
Total | $ | 2,767 | $ | 2,766 | |||||||||||||
The Company had no realized gains or losses on sales of its investments for the three months ended March 31, 2015 and 2014. The Company did not have any maturities or sales of investments during the three months ended March 31, 2015. The Company had proceeds, net of purchases of investments, of $2.5 million from maturities and sales of investments during the three months ended March 31, 2014. | |||||||||||||||||
The short-term investments in highly rated credit securities generally have minor to moderate fluctuations in the fair values from period to period. The Company monitors credit ratings, downgrades and significant events surrounding these securities in order to assess whether any of the impairments will be considered other-than-temporary. The Company did not identify any government obligations or highly rated credit securities held as of March 31, 2015 or as of December 31, 2014 for which the fair value declined significantly below amortized cost and were considered other-than-temporary impairments. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies |
Basis of Presentation and Summary of Accounting Policies | |
All amounts included herein related to these condensed consolidated financial statements as of March 31, 2015 and the three months ended March 31, 2015 and 2014 are unaudited and should be read in conjunction with the audited consolidated financial statements and the notes thereto included in Callidus Software Inc.'s ("Company") Annual Report on Form 10-K for the year ended December 31, 2014. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to the Securities and Exchange Commission ("SEC") rules and regulations regarding interim financial statements. | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all necessary adjustments for the fair presentation of the Company’s financial position, results of operations and cash flows. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the full fiscal year ending December 31, 2015. | |
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, which include wholly-owned subsidiaries in Australia, Canada, Germany, Hong Kong, India, Japan, Malaysia, Mexico, New Zealand, Serbia, Singapore, and the United Kingdom. All intercompany transactions and balances have been eliminated upon consolidation. | |
Use of Estimates | |
Preparation of the unaudited condensed consolidated financial statements in conformity with GAAP and the rules and regulations of the SEC requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, the reported amounts of revenue and expenses during the reporting period and the accompanying notes. Estimates are used for, but not limited to, uncertain tax liabilities, allowances for doubtful accounts, the useful lives of fixed assets and intangible assets, goodwill and intangible asset impairments, stock-based compensation forfeiture rates, accrued liabilities, the allocation of the value of purchase consideration for business acquisitions, and other contingencies. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates such estimates and assumptions on an ongoing basis for continued reasonableness, using historical experience and other factors, including the current economic environment. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such evaluation. Illiquid credit markets, volatile equity and foreign currency markets and declines in information technology spending by prospective customers have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ materially from those estimates. Changes in those estimates, if any, resulting from continuing changes in the economic environment, will be reflected in the condensed consolidated financial statements in future periods. | |
Revenue Recognition | |
The Company generates revenue by providing software applications as a service through on-demand subscription, perpetual and term licenses and related software maintenance, and professional services. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. | |
Recurring Revenue. Recurring revenue, which includes software-as-a-service ("SaaS") revenue and maintenance revenue, is recognized as revenue ratably over the stated contractual period. SaaS revenue consists of subscription fees from customers accessing our cloud-based service offerings. Maintenance revenue consists of fees from customers purchasing subscriptions and receiving support for on-premise solutions. The Company also recognizes revenue associated with customers using its products in excess of contracted usage ("Overages"). The Overages are primarily attributed to SaaS products and are recorded in SaaS revenue. Revenue related to Overages was immaterial during the three months ended in March 31, 2015 and March 31, 2014. | |
Service and Other Revenue. Service and other revenue primarily consist of training, integration and configuration services. Generally, the Company's professional services arrangements are on a time-and-materials basis. Time and material services are recognized as revenue as the services are rendered based on inputs to the project, such as billable hours incurred. For fixed-fee professional service arrangements, the Company recognizes revenue under the proportional performance method of accounting and estimates the proportional performance on a monthly basis, utilizing hours incurred to date as a percentage of total estimated hours to complete the project. If the Company does not have a sufficient basis to measure progress toward completion, revenue is recognized upon completion. Service and other revenue also includes license revenue from perpetual licenses, which is recognized upon delivery of the product, using the residual method, assuming all the other conditions for revenue recognition have been met. | |
In certain arrangements with non-standard acceptance criteria, the Company defers the revenue until the acceptance criteria is satisfied. Reimbursements, including those related to travel and out-of-pocket expenses, are included in services and other revenue, and an equivalent amount of reimbursable expenses is included in cost of services and other revenue. | |
In general, recurring revenue agreements are entered into for 12 to 36 months, and the professional services are performed within nine months of entering into a contract with the customer, depending on the size of integration. | |
SaaS agreements provide specified service level commitments, excluding scheduled maintenance. The failure to meet this level of service availability may require the Company to credit qualifying customers a portion of their subscription and support fees. Based on the Company's historical experience meeting its service level commitments, the Company does not currently have any liabilities on its balance sheet for these commitments. | |
The Company recognizes revenue when all of the following conditions are met: | |
• Persuasive evidence of an arrangement exists; | |
• Delivery has occurred or services have been rendered; | |
• The fees are fixed or determinable; and | |
• Collection of the fees is reasonably assured. | |
If the Company determines that any one of the four criteria is not met, it will defer recognition of revenue until all the criteria are met. | |
Multiple-deliverable arrangements with on-demand subscription. For on-demand subscription agreements with multiple-deliverables, the Company evaluates each element to determine whether it represents a separate unit of accounting. The Company determines the best estimated selling price of each deliverable in an arrangement based on a selling price hierarchy of methods contained in Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2009-13, Revenue Recognition (Accounting Standards Codification (“ASC”) Topic 605)-Multiple-Deliverable Revenue Arrangements. The best estimated selling price for a deliverable is based on its vendor-specific objective evidence (“VSOE”), if available, third-party evidence (“TPE”), if VSOE is not available, or estimated selling price (“ESP”), if neither VSOE nor TPE is available. Total arrangement fees are allocated to each element using the relative selling price method. The Company has currently established VSOE for most deliverables, except for fixed fee service arrangements. | |
The Company considered all of the following factors to establish the ESP for fixed fee service arrangements when sold with its on-demand services: the weighted average actual sales prices of professional services sold on a stand-alone basis for on-demand services; average billing rate for fixed fee service agreements when sold with on-demand services, cost plus a reasonable mark-up and other factors such as gross margin objectives, pricing practices and growth strategy. The Company is currently using cost plus a reasonable mark-up to establish ESP for fixed fee service arrangements. | |
Multiple-deliverable arrangements with on-premise license. For arrangements with multiple-deliverables, including license, professional services and maintenance, the Company recognizes license revenue using the residual method of accounting pursuant to the requirements of the guidance contained in ASC 985-605, Software Revenue Recognition. Under the residual method, revenue is recognized when VSOE for fair value exists for all of the undelivered elements in the arrangement, but does not exist for one or more of the delivered elements in the arrangement. If evidence of fair value cannot be established for the undelivered elements, all of the revenue is deferred until evidence of fair value can be established, or until the items for which evidence of fair value cannot be established are delivered. For maintenance and certain professional services, the Company has established VSOE as a consistent number of stand-alone sales of this deliverable have been priced within a reasonably narrow range. The Company's revenue arrangements generally do not include a general right of return relative to the delivered products. | |
For the Company's term-based licenses, if the only undelivered element is maintenance, the entire amount of revenue is recognized over the maintenance period, because the Company does not sell maintenance separately. | |
Sales and other taxes collected from customers to be remitted to government authorities are excluded from revenue. | |
Recent Accounting Pronouncements | |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09) "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on the consolidated financial statements. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||
The Company measures financial assets at fair value on an ongoing basis. The estimated fair value of the Company’s financial assets was determined using the following inputs at March 31, 2015 (in thousands): | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
31-Mar-15 | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | |||||||||||||||||
Money market funds (1) | $ | 6,320 | $ | 6,320 | $ | — | $ | — | |||||||||
Corporate notes and obligations (2) | 2,766 | — | 2,766 | — | |||||||||||||
Total | $ | 9,086 | $ | 6,320 | $ | 2,766 | $ | — | |||||||||
_____________________________________________________________________________ | |||||||||||||||||
(1) Included in cash and cash equivalents on the unaudited condensed consolidated balance sheet. | |||||||||||||||||
(2) Included in short-term investments on the unaudited condensed consolidated balance sheet. | |||||||||||||||||
The estimated fair value of the Company’s financial assets was determined using the following inputs at December 31, 2014 (in thousands): | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
December 31, 2014 | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | |||||||||||||||||
Money market funds (1) | $ | 6,310 | $ | 6,310 | $ | — | $ | — | |||||||||
Corporate notes and obligations (2) | 2,766 | — | 2,766 | — | |||||||||||||
Total | $ | 9,076 | $ | 6,310 | $ | 2,766 | $ | — | |||||||||
_____________________________________________________________________________ | |||||||||||||||||
(1) Included in cash and cash equivalents on the unaudited condensed consolidated balance sheet. | |||||||||||||||||
(2) Included in short-term investments on the unaudited condensed consolidated balance sheet. | |||||||||||||||||
Valuation of Investments | |||||||||||||||||
Level 1 and Level 2 | |||||||||||||||||
The Company’s available-for-sale securities include money market funds, corporate notes and obligations, and U.S. government and agency obligations. The Company values these securities using a pricing matrix from a pricing service provider, who may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs). The Company classifies all of its available-for-sale securities, except for money market funds, as having Level 2 inputs. The Company validates the estimated fair value of certain securities from a pricing service provider on a quarterly basis. The valuation techniques used to measure the fair value of the financial instruments having Level 2 inputs, all of which have counterparties with high credit ratings, were derived from the following: non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments or pricing models, such as discounted cash flow techniques, with all significant inputs derived from or corroborated by observable market data. | |||||||||||||||||
Level 3 | |||||||||||||||||
As of March 31, 2015, the Company had no Level 3 instruments. The Company did not have any transfers between Level 1, Level 2 and Level 3 fair value measurements during the periods presented as there were no changes in the composition in Level 1, 2 or 3. |
Revolving_Line_of_Credit
Revolving Line of Credit | 3 Months Ended |
Mar. 31, 2015 | |
Revolving Line of Credit [Abstract] | |
Revolving Line of Credit | Revolving Line of Credit |
In May 2014, the Company entered into a credit agreement with Wells Fargo Bank, National Association ("Wells Fargo"), under which Wells Fargo agreed to make a revolving loan ("Revolver") to the Company in an amount not to exceed $10.0 million, with an accordion feature that allows the Company to increase the maximum borrowing amount by not less than $5.0 million and not more than $10.0 million. In September 2014, the Company increased the maximum borrowing amount to $15.0 million. The Revolver matures in May 2019. | |
Pursuant to the agreement, the Company is required to maintain a leverage ratio of 3.00:1.00 and a minimum liquidity of $7.5 million. | |
Outstanding borrowings under the Revolver bear interest, at the Company's option, at a base rate plus an applicable margin. The | |
applicable margin ranges between 0.75% and 2.25% depending on the Company's leverage ratio. A fee of 0.25% per annum is payable with respect to the unused portion of the commitment. Interest is payable every three months. As of March 31, 2015 the Company had borrowed $10.5 million under the Revolver. The carrying value of total debt approximates fair market value. The interest rate at March 31, 2015 was approximately 2%. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
Except as discussed below, there were no material changes in the Company's commitments under contractual obligations as disclosed in the Company’s audited consolidated financial statements for the year ended December 31, 2014. | |
Letter of Credit | |
The Company obtained a $0.2 million letter of credit in August 2014 for a security deposit. The letter of credit will expire on August 31, 2015. | |
The Company obtained a $1.1 million letter of credit in October 2014 for leased space in Dublin, California. The letter of credit will expire on October 1, 2015. | |
Warranties and Indemnification | |
The Company generally warrants that its software will perform in accordance with its standard documentation. Under the Company’s standard warranty, should a software product not perform as specified in the documentation within the warranty period, the Company will repair or replace the software or refund the license fee paid. To date, the Company has not incurred any incremental costs related to warranty obligations for its software. | |
The Company’s product license and on-demand agreements typically include a limited indemnification provision for claims by third parties relating to the Company’s intellectual property. To date, the Company has not incurred material costs, and has not accrued any costs related to such indemnification provisions. |
Restructuring
Restructuring | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||
Restructuring | Restructuring and Other | |||||||||||||||||||
Restructuring and other expenses primarily consist of costs associated with exit from excess facilities, employee terminations and incremental depreciation expense as a result of the change in the estimated useful life of assets to be abandoned. | ||||||||||||||||||||
The Company incurred restructuring and other expenses of $0.1 million during the three months ended March 31, 2015. The Company did not incur restructuring and other expenses during the three months ended March 31, 2014. | ||||||||||||||||||||
The following tables set forth a summary of accrued restructuring and other expenses for the three months ended March 31, 2015 and 2014, respectively (in thousands): | ||||||||||||||||||||
31-Dec-14 | Additions | Adjustments | Cash | March 31, 2015 | ||||||||||||||||
Payments | ||||||||||||||||||||
Severance and termination-related costs | — | 109 | (109 | ) | — | |||||||||||||||
Facilities-related costs | 194 | 7 | (6 | ) | (37 | ) | 158 | |||||||||||||
Total accrued restructuring and other expenses | $ | 194 | $ | 116 | $ | (6 | ) | $ | (146 | ) | $ | 158 | ||||||||
31-Dec-13 | Additions | Adjustments | Cash | 31-Mar-14 | ||||||||||||||||
Payments | ||||||||||||||||||||
Severance and termination-related costs | $ | 141 | $ | — | $ | — | $ | (141 | ) | $ | — | |||||||||
Facilities related costs | 234 | — | — | (26 | ) | 208 | ||||||||||||||
Total accrued restructuring and other expenses | $ | 375 | $ | — | $ | — | $ | (167 | ) | $ | 208 | |||||||||
Net_Loss_Per_Share
Net Loss Per Share | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Earnings Per Share [Abstract] | ||||||
Net Loss Per Share | Net Loss Per Share | |||||
Basic net loss per share is calculated by dividing net loss for the period by the weighted average common shares outstanding during the period. Diluted net loss per share is calculated by dividing the net loss for the period by the weighted average common shares outstanding, adjusted for all dilutive potential common shares, which includes shares issuable for the period of time the Company's 4.75% Convertible Senior Notes ("Convertible Notes") were outstanding, the exercise of outstanding common stock options, the release of restricted stock units, and purchases of shares pursuant to the Company's employee stock purchase plan ("ESPP"), to the extent these shares are dilutive. For the three months ended March 31, 2015 and 2014, the diluted net loss per share calculation was the same as the basic net loss per share calculation as all potential common shares were anti-dilutive. | ||||||
Diluted net loss per share does not include the effect of the following potential weighted average common shares because to do so would be anti-dilutive for the periods presented (in thousands): | ||||||
Three Months Ended March 31, | ||||||
2015 | 2014 | |||||
Restricted Stock Units | 2,800 | 1,981 | ||||
Stock Options | 1,109 | 1,903 | ||||
ESPP Shares | 3 | 2 | ||||
Convertible Notes | — | 1,843 | ||||
Total | 3,912 | 5,729 | ||||
The weighted average exercise price of stock options excluded for the three months ended March 31, 2015 and March 31, 2014 were $5.95 and $5.23, respectively. |
Stockbased_Compensation
Stock-based Compensation | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Stock-based Compensation | Stock-based Compensation | |||||||
Expense Summary | ||||||||
Stock-based compensation expense is measured based on the grant-date fair value of the stock-based awards. The Company recognizes stock-based compensation expense for the portion of the awards that are ultimately expected to vest, on a ratable basis over the requisite service period for those awards with graded vesting and service conditions. | ||||||||
The table below sets forth a summary of stock-based compensation expense for the three months ended March 31, 2015 and 2014 (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Stock Options | $ | 170 | $ | 203 | ||||
Restricted Stock Units | ||||||||
Performance-based Awards | 748 | 392 | ||||||
Service-based Awards | 3,644 | 1,492 | ||||||
ESPP Shares | 255 | 205 | ||||||
Total Stock-based Compensation | $ | 4,817 | $ | 2,292 | ||||
As of March 31, 2015, there were $1.2 million, $4.1 million, $18.5 million and $0.4 million of total unrecognized compensation expense related to stock options, performance-based awards, service-based awards and ESPP shares, respectively. The expenses related to stock options, performance-based awards, service-based awards and ESPP shares are expected to be recognized over a weighted average period of 2.3 years, 1.9 years, 2.1 years and 0.5 years, respectively. | ||||||||
The table below sets forth the functional classification of stock-based compensation expense for the three months ended March 31, 2015 and 2014 (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Cost of recurring revenue | $ | 288 | $ | 182 | ||||
Cost of services and other revenue | 342 | 214 | ||||||
Sales and marketing | 1,458 | 592 | ||||||
Research and development | 797 | 438 | ||||||
General and administrative | 1,932 | 866 | ||||||
Total stock-based compensation | $ | 4,817 | $ | 2,292 | ||||
Performance-based Awards | ||||||||
The Company includes performance-based award activity with restricted stock units. | ||||||||
During the three months ended March 31, 2015, the Company did not grant performance awards. During the three months ended March 31, 2014, the Company granted performance awards with vesting contingent on absolute SaaS revenue growth over the three year period from 2014 through 2016, and the Company’s relative total stockholder return over the three year period from 2014 through 2016 versus an index of 17 SaaS companies. | ||||||||
Determination of Fair Value | ||||||||
The fair value of service-based awards is estimated based on the market value of the Company’s stock on the date of grant. A portion of the performance awards granted during 2014 are based on relative stockholder return and therefore, are subject to a market condition. As a result, the fair value of performance awards is calculated using a Monte Carlo simulation model that estimates the distribution of the potential outcomes of the grants of performance awards based on simulated future index of the peer companies. | ||||||||
The fair value of each stock option is estimated on the date of grant using the Black-Scholes valuation model. No stock options were granted during the three months ended March 31, 2015 and March 31, 2014. | ||||||||
The fair value of each ESPP share is estimated on the enrollment date of the offering period using the Black-Scholes valuation model and the assumptions noted in the following table: | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Employee Stock Purchase Plan | ||||||||
Expected life (in years) | 0.49 to 1.00 | 0.49 to 1.00 | ||||||
Risk-free interest rate | 0.07% to 0.25% | 0.08% to 0.12% | ||||||
Volatility | 42% to 46% | 47% to 50% | ||||||
Dividend yield | None | None | ||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
Income tax expense for the three months ended March 31, 2015 and March 31, 2014 was $0.2 million, and the tax expense in both quarters was attributable primarily to withholding and income taxes in foreign jurisdictions. |
Segment_Geographic_and_Custome
Segment, Geographic and Customer Information | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Segment, Geographic and Customer Information | Segment, Geographic and Customer Information | |||||||
The accounting principles guiding disclosures about segments of an enterprise and related information establish standards for the reporting by business enterprises of information about operating segments, products and services, geographic areas, and major customers. The method of determining which information is reported is based on the way that management organizes the operating segments within the Company for making operational decisions and assessments of financial performance. The Company’s chief operating decision maker is considered to be the Company’s chief executive officer ("CEO"). The CEO reviews financial information presented on a consolidated basis for purposes of making operating decisions and assessing financial performance. By this definition, the Company operates in one business segment, which is the development, marketing and sale of sales and marketing effectiveness cloud software and related services. | ||||||||
The following table summarizes revenue for the three months ended March 31, 2015 and 2014 by geographic areas (in thousands): | ||||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
United States | $ | 30,925 | $ | 25,315 | ||||
EMEA | 3,681 | 2,962 | ||||||
Asia Pacific | 2,701 | 1,326 | ||||||
Other | 2,438 | 1,374 | ||||||
$ | 39,745 | $ | 30,977 | |||||
Substantially all of the Company’s long-lived assets are located in the United States and United Kingdom. Long-lived assets located outside the United States and United Kingdom are immaterial. | ||||||||
During the three months ended March 31, 2015 and 2014, no customer accounted for more than 10% of total revenue. |
Related_Party_Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions |
In June 2013, in the normal course of business, the Company entered into agreements with Lithium Technologies, Inc. (“Lithium”), whose Chief Financial Officer is a member of the Company's Board of Directors. The Company purchased an annual subscription for Lithium's social media management solutions in the amount of $120,000, which was paid in full during 2014. As of March 31, 2015, approximately $28,000 of the amount remains in prepaid and other current assets. | |
In 2013, Lithium entered into a two-year web hosting agreement with the Company for an annual amount of $113,000. During the three months ended March 31, 2015, the Company recognized approximately $28,000, in revenue under this annual hosting agreement and $75,000 in service revenue. | |
In 2014, the Company purchased a one-time annual subscription from Lithium for Social Services for $40,000, which amount was paid in full in 2014. As of March 31, 2015, $13,000 was included in prepaid expenses. Also in 2014, the Company purchased an annual subscription from Lithium for Community Administration for $45,000, which amount was paid in full in January 2015. As of March 31, 2015, $30,000 was included in prepaid expenses. | |
Webcom, Inc., a wholly-owned subsidiary of the Company, engages the services of a third-party vendor to perform product modeling and maintenance of certain equipment. The third-party vendor is owned by a relative of Webcom’s senior management. For the three months ended March 31, 2015, the Company paid approximately $7,000 to this vendor. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Summary of Accounting Policies | Basis of Presentation and Summary of Accounting Policies |
All amounts included herein related to these condensed consolidated financial statements as of March 31, 2015 and the three months ended March 31, 2015 and 2014 are unaudited and should be read in conjunction with the audited consolidated financial statements and the notes thereto included in Callidus Software Inc.'s ("Company") Annual Report on Form 10-K for the year ended December 31, 2014. Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted pursuant to the Securities and Exchange Commission ("SEC") rules and regulations regarding interim financial statements. | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all necessary adjustments for the fair presentation of the Company’s financial position, results of operations and cash flows. The results of operations for the interim periods presented are not necessarily indicative of the operating results to be expected for any subsequent interim period or for the full fiscal year ending December 31, 2015. | |
The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, which include wholly-owned subsidiaries in Australia, Canada, Germany, Hong Kong, India, Japan, Malaysia, Mexico, New Zealand, Serbia, Singapore, and the United Kingdom. All intercompany transactions and balances have been eliminated upon consolidation. | |
Use of Estimates | Use of Estimates |
Preparation of the unaudited condensed consolidated financial statements in conformity with GAAP and the rules and regulations of the SEC requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, the reported amounts of revenue and expenses during the reporting period and the accompanying notes. Estimates are used for, but not limited to, uncertain tax liabilities, allowances for doubtful accounts, the useful lives of fixed assets and intangible assets, goodwill and intangible asset impairments, stock-based compensation forfeiture rates, accrued liabilities, the allocation of the value of purchase consideration for business acquisitions, and other contingencies. These estimates and assumptions are based on management’s best estimates and judgment. Management evaluates such estimates and assumptions on an ongoing basis for continued reasonableness, using historical experience and other factors, including the current economic environment. Appropriate adjustments, if any, to the estimates used are made prospectively based upon such evaluation. Illiquid credit markets, volatile equity and foreign currency markets and declines in information technology spending by prospective customers have combined to increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ materially from those estimates. Changes in those estimates, if any, resulting from continuing changes in the economic environment, will be reflected in the condensed consolidated financial statements in future periods. | |
Revenue Recognition | Revenue Recognition |
The Company generates revenue by providing software applications as a service through on-demand subscription, perpetual and term licenses and related software maintenance, and professional services. Amounts that have been invoiced are recorded in accounts receivable and in deferred revenue or revenue, depending on whether the revenue recognition criteria have been met. | |
Recurring Revenue. Recurring revenue, which includes software-as-a-service ("SaaS") revenue and maintenance revenue, is recognized as revenue ratably over the stated contractual period. SaaS revenue consists of subscription fees from customers accessing our cloud-based service offerings. Maintenance revenue consists of fees from customers purchasing subscriptions and receiving support for on-premise solutions. The Company also recognizes revenue associated with customers using its products in excess of contracted usage ("Overages"). The Overages are primarily attributed to SaaS products and are recorded in SaaS revenue. Revenue related to Overages was immaterial during the three months ended in March 31, 2015 and March 31, 2014. | |
Service and Other Revenue. Service and other revenue primarily consist of training, integration and configuration services. Generally, the Company's professional services arrangements are on a time-and-materials basis. Time and material services are recognized as revenue as the services are rendered based on inputs to the project, such as billable hours incurred. For fixed-fee professional service arrangements, the Company recognizes revenue under the proportional performance method of accounting and estimates the proportional performance on a monthly basis, utilizing hours incurred to date as a percentage of total estimated hours to complete the project. If the Company does not have a sufficient basis to measure progress toward completion, revenue is recognized upon completion. Service and other revenue also includes license revenue from perpetual licenses, which is recognized upon delivery of the product, using the residual method, assuming all the other conditions for revenue recognition have been met. | |
In certain arrangements with non-standard acceptance criteria, the Company defers the revenue until the acceptance criteria is satisfied. Reimbursements, including those related to travel and out-of-pocket expenses, are included in services and other revenue, and an equivalent amount of reimbursable expenses is included in cost of services and other revenue. | |
In general, recurring revenue agreements are entered into for 12 to 36 months, and the professional services are performed within nine months of entering into a contract with the customer, depending on the size of integration. | |
SaaS agreements provide specified service level commitments, excluding scheduled maintenance. The failure to meet this level of service availability may require the Company to credit qualifying customers a portion of their subscription and support fees. Based on the Company's historical experience meeting its service level commitments, the Company does not currently have any liabilities on its balance sheet for these commitments. | |
The Company recognizes revenue when all of the following conditions are met: | |
• Persuasive evidence of an arrangement exists; | |
• Delivery has occurred or services have been rendered; | |
• The fees are fixed or determinable; and | |
• Collection of the fees is reasonably assured. | |
If the Company determines that any one of the four criteria is not met, it will defer recognition of revenue until all the criteria are met. | |
Multiple-deliverable arrangements with on-demand subscription. For on-demand subscription agreements with multiple-deliverables, the Company evaluates each element to determine whether it represents a separate unit of accounting. The Company determines the best estimated selling price of each deliverable in an arrangement based on a selling price hierarchy of methods contained in Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2009-13, Revenue Recognition (Accounting Standards Codification (“ASC”) Topic 605)-Multiple-Deliverable Revenue Arrangements. The best estimated selling price for a deliverable is based on its vendor-specific objective evidence (“VSOE”), if available, third-party evidence (“TPE”), if VSOE is not available, or estimated selling price (“ESP”), if neither VSOE nor TPE is available. Total arrangement fees are allocated to each element using the relative selling price method. The Company has currently established VSOE for most deliverables, except for fixed fee service arrangements. | |
The Company considered all of the following factors to establish the ESP for fixed fee service arrangements when sold with its on-demand services: the weighted average actual sales prices of professional services sold on a stand-alone basis for on-demand services; average billing rate for fixed fee service agreements when sold with on-demand services, cost plus a reasonable mark-up and other factors such as gross margin objectives, pricing practices and growth strategy. The Company is currently using cost plus a reasonable mark-up to establish ESP for fixed fee service arrangements. | |
Multiple-deliverable arrangements with on-premise license. For arrangements with multiple-deliverables, including license, professional services and maintenance, the Company recognizes license revenue using the residual method of accounting pursuant to the requirements of the guidance contained in ASC 985-605, Software Revenue Recognition. Under the residual method, revenue is recognized when VSOE for fair value exists for all of the undelivered elements in the arrangement, but does not exist for one or more of the delivered elements in the arrangement. If evidence of fair value cannot be established for the undelivered elements, all of the revenue is deferred until evidence of fair value can be established, or until the items for which evidence of fair value cannot be established are delivered. For maintenance and certain professional services, the Company has established VSOE as a consistent number of stand-alone sales of this deliverable have been priced within a reasonably narrow range. The Company's revenue arrangements generally do not include a general right of return relative to the delivered products. | |
For the Company's term-based licenses, if the only undelivered element is maintenance, the entire amount of revenue is recognized over the maintenance period, because the Company does not sell maintenance separately. | |
Sales and other taxes collected from customers to be remitted to government authorities are excluded from revenue. | |
Recently Adopted Accounting Pronouncements | Recent Accounting Pronouncements |
In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09) "Revenue from Contracts with Customers." ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605),” and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently in the process of evaluating the impact of the adoption of ASU 2014-09 on the consolidated financial statements. |
Financial_Instruments_Tables
Financial Instruments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Financial Instruments | |||||||||||||||||
Summary of cash, cash equivalents and investments classified as available-for-sale | The components of the Company’s cash, cash equivalents, and investments classified as available-for-sale were as follows at March 31, 2015 and December 31, 2014 (in thousands): | ||||||||||||||||
31-Mar-15 | Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Cash | $ | 92,205 | $ | — | $ | — | $ | 92,205 | |||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | 6,320 | — | — | 6,320 | |||||||||||||
Total cash equivalents | 6,320 | — | — | 6,320 | |||||||||||||
Total cash and cash equivalents | $ | 98,525 | $ | — | $ | — | $ | 98,525 | |||||||||
Short-term investments: | |||||||||||||||||
Corporate notes and obligations | 2,767 | — | (1 | ) | 2,766 | ||||||||||||
Total short-term investments | $ | 2,767 | $ | — | $ | (1 | ) | $ | 2,766 | ||||||||
December 31, 2014 | Amortized | Gross | Gross | Estimated | |||||||||||||
Cost | Unrealized | Unrealized | Fair value | ||||||||||||||
Gains | Losses | ||||||||||||||||
Cash | $ | 27,890 | $ | — | $ | — | $ | 27,890 | |||||||||
Cash equivalents: | |||||||||||||||||
Money market funds | 6,310 | — | — | 6,310 | |||||||||||||
Total cash equivalents | 6,310 | — | — | 6,310 | |||||||||||||
Total cash and cash equivalents | $ | 34,200 | $ | — | $ | — | $ | 34,200 | |||||||||
Short-term investments: | |||||||||||||||||
Corporate notes and obligations | 2,773 | — | (7 | ) | 2,766 | ||||||||||||
Total short-term investments | $ | 2,773 | $ | — | $ | (7 | ) | $ | 2,766 | ||||||||
Schedule of contractual maturities of available-for-sale debt securities | The market value and the amortized cost of available-for-sale debt securities by contractual maturities as of March 31, 2015 were as follows (in thousands): | ||||||||||||||||
Contractual maturity | Amortized | Estimated | |||||||||||||||
Cost | Fair value | ||||||||||||||||
Less than 1 year | $ | 2,363 | $ | 2,364 | |||||||||||||
Between 1 and 2 years | 404 | 402 | |||||||||||||||
Total | $ | 2,767 | $ | 2,766 | |||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The estimated fair value of the Company’s financial assets was determined using the following inputs at December 31, 2014 (in thousands): | ||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
December 31, 2014 | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | |||||||||||||||||
Money market funds (1) | $ | 6,310 | $ | 6,310 | $ | — | $ | — | |||||||||
Corporate notes and obligations (2) | 2,766 | — | 2,766 | — | |||||||||||||
Total | $ | 9,076 | $ | 6,310 | $ | 2,766 | $ | — | |||||||||
_____________________________________________________________________________ | |||||||||||||||||
(1) Included in cash and cash equivalents on the unaudited condensed consolidated balance sheet. | |||||||||||||||||
(2) Included in short-term investments on the unaudited condensed consolidated balance sheet. | |||||||||||||||||
The estimated fair value of the Company’s financial assets was determined using the following inputs at March 31, 2015 (in thousands): | |||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||
Quoted Prices in | Significant | Significant | |||||||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||
31-Mar-15 | Total | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
Assets: | |||||||||||||||||
Money market funds (1) | $ | 6,320 | $ | 6,320 | $ | — | $ | — | |||||||||
Corporate notes and obligations (2) | 2,766 | — | 2,766 | — | |||||||||||||
Total | $ | 9,086 | $ | 6,320 | $ | 2,766 | $ | — | |||||||||
_____________________________________________________________________________ | |||||||||||||||||
(1) Included in cash and cash equivalents on the unaudited condensed consolidated balance sheet. | |||||||||||||||||
(2) Included in short-term investments on the unaudited condensed consolidated balance sheet. |
Restructuring_Tables
Restructuring (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||
Summary of accrued restructuring expenses | The following tables set forth a summary of accrued restructuring and other expenses for the three months ended March 31, 2015 and 2014, respectively (in thousands): | |||||||||||||||||||
31-Dec-14 | Additions | Adjustments | Cash | March 31, 2015 | ||||||||||||||||
Payments | ||||||||||||||||||||
Severance and termination-related costs | — | 109 | (109 | ) | — | |||||||||||||||
Facilities-related costs | 194 | 7 | (6 | ) | (37 | ) | 158 | |||||||||||||
Total accrued restructuring and other expenses | $ | 194 | $ | 116 | $ | (6 | ) | $ | (146 | ) | $ | 158 | ||||||||
31-Dec-13 | Additions | Adjustments | Cash | 31-Mar-14 | ||||||||||||||||
Payments | ||||||||||||||||||||
Severance and termination-related costs | $ | 141 | $ | — | $ | — | $ | (141 | ) | $ | — | |||||||||
Facilities related costs | 234 | — | — | (26 | ) | 208 | ||||||||||||||
Total accrued restructuring and other expenses | $ | 375 | $ | — | $ | — | $ | (167 | ) | $ | 208 | |||||||||
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 3 Months Ended | |||||
Mar. 31, 2015 | ||||||
Earnings Per Share [Abstract] | ||||||
Schedule of potential weighted average common shares excluded from computation of diluted net loss per share | ||||||
Three Months Ended March 31, | ||||||
2015 | 2014 | |||||
Restricted Stock Units | 2,800 | 1,981 | ||||
Stock Options | 1,109 | 1,903 | ||||
ESPP Shares | 3 | 2 | ||||
Convertible Notes | — | 1,843 | ||||
Total | 3,912 | 5,729 | ||||
Stockbased_Compensation_Tables
Stock-based Compensation (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||
Summary of stock-based compensation expenses | The table below sets forth a summary of stock-based compensation expense for the three months ended March 31, 2015 and 2014 (in thousands): | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Stock Options | $ | 170 | $ | 203 | ||||
Restricted Stock Units | ||||||||
Performance-based Awards | 748 | 392 | ||||||
Service-based Awards | 3,644 | 1,492 | ||||||
ESPP Shares | 255 | 205 | ||||||
Total Stock-based Compensation | $ | 4,817 | $ | 2,292 | ||||
Schedule of functional classification of stock-based compensation expense | The table below sets forth the functional classification of stock-based compensation expense for the three months ended March 31, 2015 and 2014 (in thousands): | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Cost of recurring revenue | $ | 288 | $ | 182 | ||||
Cost of services and other revenue | 342 | 214 | ||||||
Sales and marketing | 1,458 | 592 | ||||||
Research and development | 797 | 438 | ||||||
General and administrative | 1,932 | 866 | ||||||
Total stock-based compensation | $ | 4,817 | $ | 2,292 | ||||
Schedule of valuation assumptions for determining the fair value of stock options and employee stock purchase plans | The fair value of each ESPP share is estimated on the enrollment date of the offering period using the Black-Scholes valuation model and the assumptions noted in the following table: | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
Employee Stock Purchase Plan | ||||||||
Expected life (in years) | 0.49 to 1.00 | 0.49 to 1.00 | ||||||
Risk-free interest rate | 0.07% to 0.25% | 0.08% to 0.12% | ||||||
Volatility | 42% to 46% | 47% to 50% | ||||||
Dividend yield | None | None | ||||||
Segment_Geographic_and_Custome1
Segment, Geographic and Customer Information (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Summary of revenues by geographic areas | The following table summarizes revenue for the three months ended March 31, 2015 and 2014 by geographic areas (in thousands): | |||||||
Three Months Ended March 31, | ||||||||
2015 | 2014 | |||||||
United States | $ | 30,925 | $ | 25,315 | ||||
EMEA | 3,681 | 2,962 | ||||||
Asia Pacific | 2,701 | 1,326 | ||||||
Other | 2,438 | 1,374 | ||||||
$ | 39,745 | $ | 30,977 | |||||
Financial_Instruments_Details
Financial Instruments (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Financial instruments | ||||
Cash and cash equivalents | $98,525 | $34,200 | $29,022 | $28,295 |
Cash | ||||
Financial instruments | ||||
Cash and cash equivalents | 92,205 | 27,890 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value, Cash and Cash Equivalents | 92,205 | 27,890 | ||
Cash equivalents | ||||
Financial instruments | ||||
Cash and cash equivalents | 6,320 | 6,310 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value, Cash and Cash Equivalents | 6,320 | 6,310 | ||
Money market funds | ||||
Financial instruments | ||||
Cash and cash equivalents | 6,320 | 6,310 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value, Cash and Cash Equivalents | 6,320 | 6,310 | ||
Cash and cash equivalents | ||||
Financial instruments | ||||
Cash and cash equivalents | 98,525 | 34,200 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | 0 | 0 | ||
Estimated Fair Value, Cash and Cash Equivalents | 98,525 | 34,200 | ||
Short-term investments | ||||
Financial instruments | ||||
Amortized Cost | 2,767 | 2,773 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | -1 | -7 | ||
Estimated FV, Available for Sale Securities | 2,766 | 2,766 | ||
Corporate notes and obligations | ||||
Financial instruments | ||||
Amortized Cost | 2,767 | 2,773 | ||
Gross Unrealized Gains | 0 | 0 | ||
Gross Unrealized Losses | -1 | -7 | ||
Estimated FV, Available for Sale Securities | $2,766 | $2,766 |
Financial_Instruments_Details_
Financial Instruments (Details 2) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
investment | investment | ||
Contractual maturity, Amortized Cost | |||
Less than 1 year | $2,363,000 | ||
Between 1 and 2 years | 404,000 | ||
Total | 2,767,000 | ||
Contractual maturity, Estimated Fair value | |||
Less than 1 year | 2,364,000 | ||
Between 1 and 2 years | 402,000 | ||
Total | 2,766,000 | ||
Other disclosures pertaining to available-for-sale securities | |||
Short-term investments in a material unrealized loss position with maturities of greater than 12 months | 0 | 0 | |
Realized gains or losses on sales of investments | 0 | 0 | |
Proceeds from Sale and Maturity of Available-for-sale Securities | $0 | $2,500,000 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (Ongoing basis, USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Total | ||||
Assets: | ||||
Assets, Fair Value Disclosure | $9,086 | $9,076 | ||
Money market funds | Total | ||||
Assets: | ||||
Assets, Fair Value Disclosure | 6,320 | [1] | 6,310 | [1] |
Corporate notes and obligations | Total | ||||
Assets: | ||||
Assets, Fair Value Disclosure | 2,766 | [2] | 2,766 | [3] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Assets: | ||||
Assets, Fair Value Disclosure | 6,320 | 6,310 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds | ||||
Assets: | ||||
Assets, Fair Value Disclosure | 6,320 | [1] | 6,310 | [1] |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate notes and obligations | ||||
Assets: | ||||
Assets, Fair Value Disclosure | 0 | [2] | 0 | [3] |
Significant Other Observable Inputs (Level 2) | ||||
Assets: | ||||
Assets, Fair Value Disclosure | 2,766 | 2,766 | ||
Significant Other Observable Inputs (Level 2) | Money market funds | ||||
Assets: | ||||
Assets, Fair Value Disclosure | 0 | [1] | 0 | [1] |
Significant Other Observable Inputs (Level 2) | Corporate notes and obligations | ||||
Assets: | ||||
Assets, Fair Value Disclosure | 2,766 | [2] | 2,766 | [3] |
Significant Unobservable Inputs (Level 3) | ||||
Assets: | ||||
Assets, Fair Value Disclosure | 0 | 0 | ||
Significant Unobservable Inputs (Level 3) | Money market funds | ||||
Assets: | ||||
Assets, Fair Value Disclosure | 0 | [1] | 0 | [1] |
Significant Unobservable Inputs (Level 3) | Corporate notes and obligations | ||||
Assets: | ||||
Assets, Fair Value Disclosure | $0 | [2] | $0 | [3] |
[1] | Included in cash and cash equivalents on the unaudited condensed consolidated balance sheet. | |||
[2] | Included in short-term investments on the unaudited condensed consolidated balance sheet | |||
[3] | Included in short-term investments on the unaudited condensed consolidated balance sheet. |
Revolving_Line_of_Credit_Detai
Revolving Line of Credit (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Sep. 30, 2014 | 31-May-14 | |
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $15,000,000 | $10,000,000 | |
Leverage ratio | 3 | ||
Line of Credit Facility, Priority | 7.5 | ||
Proceeds from Lines of Credit | 10,500,000 | ||
Line of Credit Facility, Interest Rate During Period | 2.00% | ||
Maximum | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | 10,000,000 | ||
Minimum | |||
Line of Credit Facility [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $5,000,000 | ||
Line of Credit [Member] | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Fee percentage on unused portion of revolver commitment | 0.25% | ||
Line of Credit [Member] | Maximum | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Applicable margin over base rate | 2.25% | ||
Line of Credit [Member] | Minimum | Revolving Credit Facility [Member] | |||
Line of Credit Facility [Line Items] | |||
Applicable margin over base rate | 0.75% |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Aug. 31, 2014 | Oct. 31, 2014 |
In Millions, unless otherwise specified | ||
Pleasanton Headquarters [Member] | ||
Contractual cash obligations | ||
Letters of Credit Outstanding, Amount | $0.20 | |
Dublin (CA) Headquarters | ||
Contractual cash obligations | ||
Letters of Credit Outstanding, Amount | $1.10 |
Restructuring_Details
Restructuring (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2014 |
Restructuring and Related Activities [Abstract] | |||||
Restructuring expenses | $116 | $0 | |||
Changes in restructuring reserve | |||||
Balance at the beginning of the period | 194 | 208 | 375 | ||
Additions | 116 | 0 | |||
Adjustments | 6 | 0 | |||
Cash Payments | -146 | -167 | |||
Balance at the end of the period | 158 | 208 | 375 | ||
Severance and termination-related costs | |||||
Changes in restructuring reserve | |||||
Balance at the beginning of the period | 0 | 141 | 0 | ||
Additions | 0 | ||||
Adjustments | 0 | ||||
Cash Payments | -141 | ||||
Balance at the end of the period | 0 | 0 | 141 | 0 | |
Facilities related costs | |||||
Changes in restructuring reserve | |||||
Balance at the beginning of the period | 194 | 208 | 234 | ||
Additions | 7 | 0 | |||
Adjustments | 6 | 0 | |||
Cash Payments | -37 | -26 | |||
Balance at the end of the period | $158 | $208 | $234 |
Net_Loss_Per_Share_Details
Net Loss Per Share (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Stock Options | ||
Antidilutive securities excluded from computation of earnings per share | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share Outstanding Weighted Average Exercise Price | $5.95 | $5.23 |
Convertible Debt [Member] | ||
Antidilutive securities excluded from computation of earnings per share | ||
Interest rate on debt instrument | 4.75% |
Net_Loss_Per_Share_Net_Income_
Net Loss Per Share Net Income (Loss) Per Share (Calculation of basic and diluted net income (loss) per share) (Details) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share, Diluted | ||
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares) | 3,912 | 5,729 |
Convertible Notes | ||
Earnings Per Share, Diluted | ||
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares) | 0 | 1,843 |
ESPP Shares | ||
Earnings Per Share, Diluted | ||
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares) | 3 | 2 |
Stock Options | ||
Earnings Per Share, Diluted | ||
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares) | 1,109 | 1,903 |
Restricted Stock Units | ||
Earnings Per Share, Diluted | ||
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares) | 2,800 | 1,981 |
Stockbased_Compensation_Detail
Stock-based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Sep. 30, 2014 | |
Stock-based compensation | |||
Stock-based compensation expense | $4,817,000 | $2,292,000 | |
Stock Options | |||
Stock-based compensation | |||
Stock-based compensation expense | 170,000 | 203,000 | |
Unrecognized compensation expense, stock options | 1,200,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years 3 months 11 days | ||
Performance-based Awards | |||
Stock-based compensation | |||
Stock-based compensation expense | 748,000 | 392,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | 4,100,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 10 months 13 days | ||
Service-based Awards | |||
Stock-based compensation | |||
Stock-based compensation expense | 3,644,000 | 1,492,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | 18,500,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 2 years 1 month 24 days | ||
ESPP Shares | |||
Stock-based compensation | |||
Stock-based compensation expense | 255,000 | 205,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Share-based Awards Other than Options | $400,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 6 months |
Stockbased_Compensation_Detail1
Stock-based Compensation (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Classification of stock-based compensation expense | ||
Stock-based compensation expense | $4,817 | $2,292 |
Cost of recurring revenues | ||
Classification of stock-based compensation expense | ||
Stock-based compensation expense | 288 | 182 |
Cost of services and other revenues | ||
Classification of stock-based compensation expense | ||
Stock-based compensation expense | 342 | 214 |
Sales and marketing | ||
Classification of stock-based compensation expense | ||
Stock-based compensation expense | 1,458 | 592 |
Research and development | ||
Classification of stock-based compensation expense | ||
Stock-based compensation expense | 797 | 438 |
General and administrative | ||
Classification of stock-based compensation expense | ||
Stock-based compensation expense | 1,932 | 866 |
Performance-based Awards | ||
Classification of stock-based compensation expense | ||
Stock-based compensation expense | $748 | $392 |
Stockbased_Compensation_Detail2
Stock-based Compensation (Details 3) (ESPP Shares) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Fair value assumptions using the Black-Scholes-Merton valuation model | ||
Risk-free interest rate, minimum (as a percent) | 0.07% | 0.08% |
Risk-free interest rate, maximum (as a percent) | 0.25% | 0.12% |
Volatility, minimum (as a percent) | 42.00% | 47.00% |
Volatility, maximum (as a percent) | 46.00% | 50.00% |
Dividend Yield (as a percent) | 0.00% | 0.00% |
Minimum | ||
Fair value assumptions using the Black-Scholes-Merton valuation model | ||
Expected life (in years) | 5 months 27 days | 5 months 27 days |
Maximum | ||
Fair value assumptions using the Black-Scholes-Merton valuation model | ||
Expected life (in years) | 1 year | 1 year |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $214 | $150 |
Segment_Geographic_and_Custome2
Segment, Geographic and Customer Information (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
customer | customer | |
segment | ||
Segment Reporting [Abstract] | ||
Number of operating segments | 1 | |
Number of customers accounted for more than 10% of total revenues | 0 | 0 |
Revenues by geographic area | ||
Revenues | $39,745 | $30,977 |
United States | ||
Revenues by geographic area | ||
Revenues | 30,925 | 25,315 |
EMEA | ||
Revenues by geographic area | ||
Revenues | 3,681 | 2,962 |
Asia Pacific | ||
Revenues by geographic area | ||
Revenues | 2,701 | 1,326 |
Other | ||
Revenues by geographic area | ||
Revenues | $2,438 | $1,374 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 1 Months Ended | 12 Months Ended |
Mar. 31, 2015 | Jun. 30, 2013 | Dec. 31, 2014 | |
Webcom | |||
Related party transactions | |||
Product modeling and maintenance of certain equipment | $7,000 | ||
Subscription Arrangement [Member] | Lithium [Member] | |||
Related party transactions | |||
Amount under related party transaction agreement | 120,000 | ||
Prepaid Expense, Current | 28,000 | ||
Hosting Agreement [Member] | Lithium [Member] | |||
Related party transactions | |||
Related party transaction amount | 113,000 | ||
Revenue recongnized in related party transaction | 28,000 | ||
Service Agreements [Member] | Lithium [Member] | |||
Related party transactions | |||
Related party transaction amount | 40,000 | ||
Revenue recongnized in related party transaction | 75,000 | ||
Social Success Service [Member] | Lithium [Member] | |||
Related party transactions | |||
Annual subscription recorded in prepaid expense and other current assets | 30,000 | ||
Annual subscription expensed | 13,000 | ||
Community Administration service [Member] | Lithium [Member] | |||
Related party transactions | |||
Amount under related party transaction agreement | $45,000 |