Callidus Software (CALD) 10-Q 3 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 27, 2016
Document and Entity Information
Entity Registrant Name	CALLIDUS SOFTWARE INC
Entity Central Index Key	1,035,748
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		63,481,831
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 167,116	$ 77,232
Short-term investments	19,123	19,977
Accounts receivable, net of allowances of $1,449 and $1,310 at September 30, 2016 and December 31, 2015, respectively	48,444	43,461
Prepaid and other current assets	14,699	11,385
Total current assets	249,382	152,055
Property and equipment, net	31,566	20,540
Goodwill	56,682	50,146
Intangible assets, net	17,684	14,885
Deposits and other noncurrent assets	3,947	4,016
Total assets	359,261	241,642
Current liabilities:
Accounts payable	3,572	3,636
Accrued payroll and related expenses	13,983	12,510
Accrued expenses	18,627	11,017
Deferred revenue	88,690	74,644
Total current liabilities	124,872	101,807
Deferred revenue, noncurrent	4,308	5,186
Deferred income taxes, noncurrent	1,455	1,477
Other noncurrent liabilities	6,401	4,371
Total liabilities	137,036	112,841
Commitments and contingencies
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; 65,040 and 58,612 shares issued and 62,701 and 56,273 shares outstanding at September 30, 2016 and December 31, 2015, respectively	63	56
Additional paid-in capital	538,225	428,776
Treasury stock; 2,339 shares at September 30, 2016 and December 31, 2015	(14,430)	(14,430)
Accumulated other comprehensive loss	(3,597)	(1,735)
Accumulated deficit	(298,036)	(283,866)
Total stockholders’ equity	222,225	128,801
Total liabilities and stockholders’ equity	$ 359,261	$ 241,642

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Accounts receivable, allowances (in dollars)	$ 1,449	$ 1,310
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	65,040,000	58,612,000
Common stock, shares outstanding	62,701,000	56,273,000
Treasury stock, shares	2,339,000	2,339,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue:
Recurring	$ 41,465	$ 34,301	$ 118,361	$ 93,907
Services and license	11,042	10,643	32,275	32,396
Total revenue	52,507	44,944	150,636	126,303
Cost of revenue:
Recurring	10,948	9,034	31,047	25,233
Services and license	9,229	8,318	25,822	24,041
Total cost of revenue	20,177	17,352	56,869	49,274
Gross profit	32,330	27,592	93,767	77,029
Operating expenses:
Sales and marketing	18,357	14,855	56,942	43,377
Research and development	8,637	6,846	23,127	18,886
General and administrative	8,894	7,883	26,445	24,413
Restructuring and other	80	0	482	234
Total operating expenses	35,968	29,584	106,996	86,910
Operating loss	(3,638)	(1,992)	(13,229)	(9,881)
Interest income and other expense, net	(3)	(38)	(55)	(414)
Interest expense	(48)	(26)	(130)	(149)
Loss before provision for income taxes	(3,689)	(2,056)	(13,414)	(10,444)
Provision for income taxes	258	187	755	566
Net loss	$ (3,947)	$ (2,243)	$ (14,169)	$ (11,010)
Net loss per share
Basic and Diluted (in dollars per share)	$ (0.07)	$ (0.04)	$ (0.25)	$ (0.20)
Basic and Diluted (in shares)	58,009	56,104	57,237	54,156
Comprehensive loss:
Net loss	$ (3,947)	$ (2,243)	$ (14,169)	$ (11,010)
Unrealized gain on available-for-sale securities	(18)	15	41	19
Foreign currency translation adjustments	(367)	(674)	(1,902)	(553)
Comprehensive loss	$ (4,332)	$ (2,902)	$ (16,030)	$ (11,544)

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net loss	$ (14,169)	$ (11,010)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation expense	5,656	4,501
Amortization of intangible assets	4,616	3,985
Provision for doubtful accounts	1,227	1,097
Stock-based compensation	20,910	13,924
Loss on foreign currency from market-to-market derivative	(1)	0
Excess tax benefit from stock-based compensation	(26)	(29)
Deferred income taxes	13	(381)
Loss on disposal of property and equipment	22	10
Net amortization on investments	132	78
Changes in operating assets and liabilities:
Accounts receivable	(6,037)	3,373
Prepaid and other current assets	(3,374)	487
Other noncurrent assets	118	104
Accounts payable	19	3
Accrued expenses	(225)	17
Accrued payroll and related expenses	1,473	14
Accrued restructuring and other expenses	314	(99)
Deferred revenue	10,101	4,448
Net cash provided by operating activities	20,769	20,522
Cash flows from investing activities:
Purchases of investments	(12,113)	(19,444)
Proceeds from maturities and sale of investments	12,876	3,554
Purchases of property and equipment	(7,091)	(9,548)
Purchases of intangible assets	(687)	(524)
Acquisitions, net of cash acquired	(11,500)	(4,365)
Net cash used in investing activities	(18,515)	(30,327)
Cash flows from financing activities:
Proceeds from follow-on offering, net of issuance costs	87,144	64,372
Proceeds from issuance of common stock	4,082	4,236
Restricted stock units acquired to settle employee withholding liability	(2,705)	(2,656)
Excess tax benefit from stock-based compensation	26	29
Repayments of Lines of Credit	0	(10,482)
Payment of consideration related to acquisitions	(510)	(1,802)
Payment of principal under capital leases	0	(778)
Net cash provided by financing activities	88,037	52,919
Effect of exchange rates on cash and cash equivalents	(407)	(197)
Net increase in cash and cash equivalents	89,884	42,917
Cash and cash equivalents at beginning of period	77,232	34,200
Cash and cash equivalents at end of period	167,116
Supplemental disclosures of cash flow information:
Cash paid for interest on capital leases	0	18
Interest Paid	68	122
Non-cash investing and financing activities:
Purchases of property and equipment through accounts payable and other current and non current accrued liabilities	$ 9,392	$ 3,516

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
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 September 30, 2016 and for the three and nine months ended September 30, 2016 and 2015 are unaudited and should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2015 for Callidus Software Inc., doing business as CallidusCloud ("Company"). 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, 2016 . 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, Netherlands, 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 unaudited 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 fluctuations in information technology spending by prospective customers can 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 consolidated financial statements in future periods. Revenue Recognition The Company generates revenue by providing software as a service ("SaaS") solutions through on-demand subscription, on-premise 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 SaaS revenue and maintenance revenue, is recognized ratably over the stated contractual period. SaaS revenue consists of subscription fees from customers accessing the Company's cloud-based service offerings. Maintenance revenue consists of fees from customers purchasing licenses and receiving support for such on-premise solutions. The Company also recognizes SaaS and maintenance revenue associated with customers using its products in excess of contracted usage ("Overages"). Overages are primarily attributed to SaaS products and such Overages are recorded in SaaS revenue in the period incurred. Revenue related to Overages was immaterial during the three and nine month periods ended September 30, 2016 and 2015 . Service and License Revenue. Service and license revenue primarily consists of training, integration and configuration services. Generally, the Company's professional services arrangements are billed on a time-and-materials basis. Time and material services are recognized as the services are rendered based on inputs to the project, such as billable hours incurred. For fixed-fee professional services 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 license revenue also includes 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 a limited number of arrangements with non-standard acceptance criteria, the Company defers the revenue until the acceptance criteria are satisfied. Reimbursements, including those related to travel and out-of-pocket expenses, are included in services and license revenue, and an equivalent amount of reimbursable expenses is included in cost of services and license 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 Finance 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 and on-premise software licenses. 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 rates 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 is able to establish VSOE because it has a sufficient history of selling these deliverables at an established price. The Company's revenue arrangements do not include a general right of return relative to the delivered products. Generally, for the Company's term-based licenses, if the only undelivered element is maintenance, the entire amount of revenue is recognized ratably over the maintenance period. Sales and other taxes collected from customers to be remitted to government authorities are excluded from revenue. Recent Accounting Pronouncements In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." The guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice for certain cash receipts and cash payments. The amendments in this guidance are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years and early adoption is permitted. The Company is currently evaluating its expected adoption method and timeline, and the impact this ASU will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting," which simplifies the accounting for share-based transactions, including the income tax consequences, classification of awards as either equity or liabilities on the balance sheet, and classification of employee taxes paid on statement of cash flows when an employer withholds shares for tax-withholding purposes. The new standard is effective for interim and annual periods beginning after December 15, 2016 and early adoption is permitted. The Company has elected not to early adopt. The Company is currently evaluating the impact of the adoption of ASU 2016-09 on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases" which requires the recognition of assets and liabilities arising from lease transactions on the balance sheet and the disclosure of key information about leasing arrangements. Accordingly, a lessee will recognize a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. Both the asset and liability will initially be measured at the present value of the future minimum lease payments over the lease term. Subsequent measurement, including the presentation of expenses and cash flows, will depend on the classification of the lease as either a finance or an operating lease. Initial costs directly attributable to negotiating and arranging the lease will be included in the asset. For leases with a term of 12 months or less, a lessee can make an accounting policy election by class of underlying asset to not recognize an asset and corresponding liability. Lessees will also be required to provide additional qualitative and quantitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. These disclosures are intended to supplement the amounts recorded in the financial statements and provide additional information about the nature of an organization’s leasing activities. The new standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. In transition, lessees are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The transition guidance also provides specific guidance for sale and leaseback transactions, build-to-suit leases and amounts previously recognized in accordance with the business combinations guidance for leases. The Company is currently evaluating its expected adoption method and timeline, and the impact of this new standard on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes, (ASU 2015-17)", which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities, together with any related valuation allowance be classified as non-current in a statement of financial position. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company early adopted ASU 2015-17 effective December 31, 2015 on a prospective basis. Adoption of this ASU resulted in a reclassification of the Company's net current deferred tax liabilities to net non-current deferred tax liabilities in its consolidated balance sheets as of December 31, 2015. No prior periods were adjusted retrospectively. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" (ASU 2014-09). ASU 2014-09, as amended, 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. The Company is currently in the process of assessing the adoption methodology, which allows the amendment to be applied retrospectively to each prior period presented or with the cumulative effect recognized as of the date of initial application. The Company is also evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements and has not determined whether the effect will be material to either its revenue results or its deferred commission balances. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted one year earlier, but the Company has elected not to early adopt.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2016
Business Combinations [Abstract]
Acquisitions	Acquisitions Badgeville, Inc. On June 24, 2016, the Company acquired certain assets of Badgeville, Inc. ("Badgeville"), a privately-held company and a leading technology provider in enterprise gamification and digital motivation. The purpose of the Company's purchase of Badgeville is to extend digital motivation as part of the Company's Lead to Money suite. The purchase consideration was $7.5 million in cash. The preliminary purchase price allocation for Badgeville is summarized as follows (in thousands): Fair Value Net liabilities assumed $ (1,791 ) Intangible assets 5,200 Goodwill 4,091 Total purchase price $ 7,500 The fair value of the net liabilities assumed, the intangible assets and the related goodwill are preliminary and may be subject to change upon completing the final valuation assessment. Under the acquisition method of accounting, the Company allocated the purchase price to the identifiable assets and liabilities based on their estimated fair value at the date of acquisition. To determine the value of the intangible assets, the Company made various estimates and assumptions. The methodologies used in valuing the intangible assets include, but are not limited to, cost approach for customer contracts and related relationships, multiple period excess earnings method for developed technology and the relief-from-royalty method for trademarks, tradenames and domain names. The excess of the purchase price over the total net identifiable assets has been recorded as goodwill which includes synergies expected from the expanded service capabilities and the value of the assembled workforce in accordance with generally accepted accounting principles. The goodwill balance is primarily attributed to the extension of gamification and digital motivation to the Company's Lead to Money suite. The goodwill balance is not deductible for U.S. income tax purposes. The Company did not record any in-process research and development intangible assets in connection with the acquisition. The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives, as of the date of the Badgeville acquisition (in thousands): Fair Value Weighted Average Useful Life Consolidated statements of comprehensive loss Classification:Amortization expense Customer contracts and related relationships $ 700 3 years Sales and marketing expense Developed technology 4,300 5 years Cost of sales Trademarks / trade names / domain names 200 7 years General and administrative Total intangible assets subject to amortization $ 5,200 The financial results of Badgeville are included in the Company's unaudited condensed consolidated financial statements from the date of acquisition through September 30, 2016 . The acquisition of Badgeville did not have a material impact on the Company's condensed consolidated financial statements and therefore pro forma disclosures have not been presented. ViewCentral LLC On April 8, 2016, the Company acquired certain assets of ViewCentral LLC ("ViewCentral"). The acquisition will augment the Company's Litmos mobile learning solution with a full revenue management and e-commerce platform designed for selling and optimizing profitable training for customers. The purchase consideration was $4.0 million in cash. The preliminary purchase price allocation for ViewCentral is summarized as follows (in thousands): Fair Value Net liabilities assumed $ (1,568 ) Intangible assets 1,700 Goodwill 3,868 Total purchase price $ 4,000 The fair value of the net liabilities assumed, the intangible assets and the related goodwill are preliminary and may be subject to change upon completing the final valuation assessment. Under the acquisition method of accounting, the Company allocated the purchase price to the identifiable assets and liabilities based on their estimated fair value at the date of acquisition. To determine the value of the intangible assets, the Company made various estimates and assumptions. The methodologies used in valuing the intangible assets include, but are not limited to, multiple period excess earnings method for customer contracts and related relationships and order backlog and the relief-from-royalty method for developed technology. The excess of the purchase price over the total net identifiable assets has been recorded as goodwill which includes synergies expected from the expanded service capabilities and the value of the assembled workforce in accordance with generally accepted accounting principles. The goodwill balance is primarily attributed to the anticipated synergies from the expanded market opportunities for the Company's Litmos mobile learning applications. The goodwill balance is not deductible for U.S. income tax purposes. The Company did not record any in-process research and development intangible assets in connection with the acquisition. The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives, as of the date of the ViewCentral acquisition (in thousands): Fair Value Weighted Average Useful Life Consolidated statements of comprehensive loss Customer contracts and related relationships $ 850 6 years Sales and marketing expense Developed technology 700 3 years Cost of sales Order backlog 150 1.8 years Cost of sales Total intangible assets subject to amortization $ 1,700 The financial results of ViewCentral are included in the Company's unaudited condensed consolidated financial statements from the date of acquisition through September 30, 2016 . The acquisition of ViewCentral did not have a material impact on the Company's consolidated financial statements and therefore pro forma disclosures have not been presented.

Financial Instruments

Financial Instruments	9 Months Ended
	Sep. 30, 2016
Financial Instruments
Financial Instruments	Financial Instruments As of September 30, 2016 and December 31, 2015 , all investment debt securities were classified as available-for-sale and carried at estimated fair value, which is determined based on the inputs discussed in Note 4. 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 September 30, 2016 and December 31, 2015 , 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 September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Amortized Cost Gross Gains Gross Losses Estimated Fair Value Cash $ 166,087 $ — $ — $ 166,087 Cash equivalents: Money market funds 1,029 — — 1,029 Total cash equivalents 1,029 — — 1,029 Total cash and cash equivalents $ 167,116 $ — $ — $ 167,116 Short-term investments: Certificates of deposits $ 1,250 $ — $ — $ 1,250 U.S. government and agency obligations 9,613 28 (1 ) 9,640 Corporate notes and obligations 8,219 19 (5 ) 8,233 Total short-term investments $ 19,082 $ 47 $ (6 ) $ 19,123 December 31, 2015 Amortized Cost Gross Gains Gross Losses Estimated Fair Value Cash $ 77,191 $ — $ — $ 77,191 Cash equivalents: Money market funds 41 — — 41 Total cash equivalents 41 — — 41 Total cash and cash equivalents $ 77,232 $ — $ — $ 77,232 Short-term investments: Certificate of deposits $ 1,500 $ — $ — $ 1,500 U.S. government and agency obligations 7,423 — (16 ) 7,407 Corporate notes and obligations 11,087 — (17 ) 11,070 Total short-term investments $ 20,010 $ — $ (33 ) $ 19,977 The market value and the amortized cost of available-for-sale debt securities by contractual maturities as of September 30, 2016 were as follows (in thousands): Contractual maturity Amortized Cost Estimated Fair value Less than 1 year $ 8,975 $ 8,994 Between 1 and 2 years 10,107 10,129 Total $ 19,082 $ 19,123 The Company had no realized gains or losses on sales of its investments for the three and nine months ended September 30, 2016 and 2015 . The Company had net proceeds from investments of $0.8 million during the nine months ended September 30, 2016 and net purchases of investments of $ 15.9 million during the nine months ended September 30, 2015 . 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 securities held as of September 30, 2016 or as of December 31, 2015 for which the fair value declined significantly below amortized cost and were considered other-than-temporary impairments.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
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 September 30, 2016 and December 31, 2015 (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs September 30, 2016 Total (Level 1) (Level 2) (Level 3) Assets: Money market funds (1) $ 1,029 $ 1,029 $ — $ — Certificates of deposit (2) 1,250 — 1,250 — U.S. government and agency obligations (2) 9,640 — 9,640 — Corporate notes and obligations (2) 8,233 — 8,233 — Total $ 20,152 $ 1,029 $ 19,123 $ — Liabilities: Contingent consideration and related liabilities (3) $ 330 $ — $ — $ 330 Total $ 330 $ — $ — $ 330 _____________________________________________________________________________ (1) Included in cash and cash equivalents on the unaudited condensed consolidated balance sheets. (2) Included in short-term investments on the unaudited condensed consolidated balance sheets. (3) Included in accrued expenses on the unaudited condensed consolidated balance sheets. Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Significant December 31, 2015 Total (Level 1) (Level 2) (Level 3) Assets: Money market funds (1) $ 41 $ 41 $ — $ — Certificates of deposit (2) 1,500 — 1,500 — U.S. government and agency obligations (2) 7,407 — 7,407 — Corporate notes and obligations (2) 11,070 — 11,070 — Total $ 20,018 $ 41 $ 19,977 $ — Liabilities: Contingent consideration and related liabilities (3) $ 324 $ — $ — $ 324 Total $ 324 $ — $ — $ 324 _____________________________________________________________________________ (1) Included in cash and cash equivalents on the unaudited condensed consolidated balance sheets. (2) Included in short-term investments on the unaudited condensed consolidated balance sheets. (3) Included in accrued expenses on the unaudited condensed consolidated balance sheets. Valuation of Investments Level 1 and Level 2 The Company’s available-for-sale securities include money market funds, certificates of deposit, corporate notes, 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. During the third quarter of 2016 the Company hedged a Euro denominated receivable in the amount of 0.9 million and an Australian Dollar denominated receivable in the amount of 0.2 million , to reduce the risk that earnings would be adversely affected by changes in the Euro and Australian Dollar currency exchange rates. The total notional value of the derivative instruments acquired during the quarter ending September 30, 2016 was $1.1 million . The Company accounts for the derivative instruments at fair value with changes in the fair value recorded as a component of interest income and other income (expense), net. During the quarter ended September 30, 2016, such changes were immaterial. Level 3 Contingent consideration and related liabilities are defined as earn-out payments which the Company may pay in connection with the acquisition of BridgeFront LLC ("BridgeFront"). Contingent consideration and related liabilities are classified as level 3 liabilities, as the Company uses unobservable inputs to value them, which is a probability-based income approach. Subsequent changes in the fair value of contingent consideration and related liabilities will be recorded in the Company's unaudited condensed consolidated statements of operations. The Company did not have any transfers of its fair value measurement between Level 1, Level 2 and Level 3 during the periods presented.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
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, 2015 . During the nine months ended September 30, 2016 , the Company entered into various contractual obligations, long-term operating lease obligations and unconditional purchase commitments. Future minimum lease payments under non-cancellable operating leases (with initial or remaining lease terms in excess of one year) and purchase commitments as of September 30, 2016 are as follows (in thousands): Unconditional Purchase Commitments (1) (2) Operating Lease Commitments (3) Years ending: Remainder of 2016 $ 10,227 $ 884 2017 8,663 3,661 2018 7,115 4,190 2019 3,117 3,880 2020 3,119 3,979 2021 and beyond — 6,430 Future minimum payments $ 32,241 $ 23,024 (1) Included in unconditional purchase commitments is the five -year agreement with Oracle to purchase software and support services for the Company's data centers. Pursuant to the agreement, the Company is required to make payments of $0.8 million on September 1, 2016 and December 1, 2016, and annual payments of $3.0 million beginning February 2017 and ending February 2020, for a remaining balance of $12.8 million . As of September 30, 2016 , the Company capitalized software costs of $3.2 million , net of depreciation, and recorded $1.7 million to accrued expenses and $2.2 million to other noncurrent liabilities in the unaudited condensed consolidated balance sheets. (2) Also included in unconditional purchase commitments are agreements for capital purchases and maintenance services entered into by the Company in September 2016. The total amount of $10.5 million was not included in accrued expenses as of September 30, 2016. In addition, the unconditional purchase commitments include amounts payable to certain vendors. (3) The Company has facilities under non-cancellable operating lease agreements that expire at various dates through 2021. During the first nine months of 2016 the Company entered into an office space lease for the expansion of the Company's headquarters in Dublin, California, as well as office space leases for facilities in Hyderabad, India and Belgrade, Serbia. Letter of Credit During the third quarter of 2016, the Company increased its letter of credit to $1.4 million for one year to October 1, 2017 for its leased space in Dublin, California. As of September 30, 2016 there was no balance outstanding under this letter of credit. Revolver 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. During the quarter ended June 30, 2015, the Company paid off the outstanding amount of $ 10.5 million . There is no balance outstanding as of September 30, 2016 . Pursuant to the agreement, the Company is required to maintain a leverage ratio of 3.00 :1.00 and minimum liquidity of $ 7.5 million . The Company has met these leverage and liquidity covenants. 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. 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 and Other

Restructuring and Other	9 Months Ended
	Sep. 30, 2016
Restructuring and Related Activities [Abstract]
Restructuring and Other	Restructuring and Other Restructuring and other expenses primarily consist of costs associated with exit from excess facilities and employee terminations. The Company incurred restructuring and other expenses of $0.1 million and $0.5 million during the three and nine months ended September 30, 2016 , respectively. The Company did not incur restructuring and other expenses during the three months ended September 30, 2015, and incurred $0.2 million during the nine months ended September 30, 2015 . The following tables set forth a summary of accrued restructuring and other expenses for the nine months ended September 30, 2016 and 2015 (in thousands): December 31, 2015 Additions Adjustments Cash Payments September 30, 2016 Facilities related costs $ 17 $ 483 $ 18 $ (187 ) $ 331 Total accrued restructuring and other expenses $ 17 $ 483 $ 18 $ (187 ) $ 331 December 31, 2014 Additions Adjustments Cash September 30, 2015 Severance and termination-related costs $ — $ 227 $ — $ (227 ) $ — Facilities related costs 194 7 — (152 ) 49 Total accrued restructuring and other expenses $ 194 $ 234 $ — $ (379 ) $ 49

Net Loss Per Share

Net Loss Per Share	9 Months Ended
	Sep. 30, 2016
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, 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 and nine months ended September 30, 2016 and 2015 , 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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Restricted Stock Units 3,727 3,120 3,679 2,803 Stock Options 509 806 577 945 ESPP Shares 36 13 30 4 Total 4,272 3,939 4,286 3,752 The weighted average exercise price per share of stock options excluded for the three and nine months ended September 30, 2016 was $ 6.72 and $6.71 , respectively, and for the three and nine months ended September 30, 2015 was $6.35 and $6.12 , respectively.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2016
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 straight-line 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 and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Stock options $ 145 $ 147 $ 433 $ 464 Restricted stock units Performance-based awards 1,352 986 3,801 2,370 Service-based awards 4,951 2,651 15,404 10,379 ESPP shares 398 231 1,272 711 Total stock-based compensation $ 6,846 $ 4,015 $ 20,910 $ 13,924 As of September 30, 2016 , there was total unrecognized compensation expense of $25.7 million , $4.4 million , $0.4 million , and $ 0.6 million related to service-based awards, performance-based awards, stock options, and ESPP shares, respectively, which were expected to be recognized over weighted average periods of 1.9 years, 1.2 years, 0.8 years, and 0.5 years, respectively. The table below sets forth the functional classification of stock-based compensation expense for the three and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Cost of recurring revenue $ 388 $ 269 $ 1,350 $ 806 Cost of services and license 530 277 1,566 856 Sales and marketing 2,261 1,316 6,558 3,931 Research and development 1,251 745 3,591 2,192 General and administrative 2,416 1,408 7,845 6,139 Total stock-based compensation $ 6,846 $ 4,015 $ 20,910 $ 13,924 Performance-based Awards In 2015, the Company granted performance-based restricted stock units with vesting contingent on successful attainment of pre-set SaaS revenue growth and recurring revenue gross profit targets over the three -year period from July 1, 2015 through June 30, 2018. During the three and nine months ended September 30, 2016 expense of $0.4 million and $1.2 million , respectively, net of forfeiture, was recognized. In 2014, the Company granted performance-based restricted stock units with vesting contingent on absolute SaaS revenue growth over the three-year period from January 1, 2014 through December 31, 2016, and on the Company’s relative total stockholder return over the three-year period from 2014 through 2016 versus an index of 17 SaaS companies. During the three and nine months ended September 30, 2016 expense of $0.8 million and $2.4 million , respectively, net of forfeiture, was recognized. 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. Fair value of the performance-based awards, that are subject to SaaS growth is estimated based on the market value of the awards at the date of the grant, adjusted by the SaaS growth probability assessment. Fair value of the performance awards that are subject to relative stockholder return and market conditions, 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 and nine months ended September 30, 2016 and September 30, 2015 . 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: Nine Months Ended September 30, Employee Stock Purchase Plan 2016 2015 Expected life (in years) 0.50 to 1.00 0.50 to 1.00 Risk-free interest rate 0.45% to 0.57% 0.25% to 0.38% Volatility 33.2% to 43.0% 38.7% to 39.3% Dividend yield None None

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
Stockholders' Equity	Stockholders' Equity On September 21, 2016, the Company completed a follow-on offering in which the Company issued 5.1 million shares of its common stock at a public offering price of $18.25 per share. The Company received net proceeds of $87.1 million after deducting underwriting discounts and commissions of $5.6 million and other offering expenses of $0.4 million .

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Income tax expense for the three and nine months ended September 30, 2016 was $ 0.3 million and $ 0.8 million , respectively, and for the three and nine months ended September 30, 2015, was $ 0.2 million and $ 0.6 million , respectively. The increase in income tax expense during the three and nine months ended September 30, 2016 was mainly attributable to increased sales to foreign customers subject to withholding taxes and increased income in the foreign jurisdictions subject to income taxes.

Segment, Geographic and Custome

Segment, Geographic and Customer Information	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment, Geographic and Customer Information	Segment, Geographic and Customer Information The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the chief operating decision maker, who in the Company's case is the chief executive officer, in deciding how to allocate resources and assess performance. The Company's chief executive officer ("CEO") is considered to be the chief operating decision maker. 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 the Company's cloud-based sales, marketing, learning and customer experience solutions. The following table summarizes revenue for the three and nine months ended September 30, 2016 and 2015 by geographic areas (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 United States and Canada $ 43,029 $ 37,256 $ 123,645 $ 103,387 EMEA 5,839 4,570 16,167 13,031 Asia Pacific 2,471 2,389 7,456 7,360 Other 1,168 729 3,368 2,525 $ 52,507 $ 44,944 $ 150,636 $ 126,303 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 and nine months ended September 30, 2016 and 2015 , no customer accounted for more than 10% of total revenue.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related-Party Transactions	Related-Party Transactions Lithium Technologies, Inc. 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. On August 31, 2016, that member of the Company's Board of Directors ceased to be the Chief Financial Officer of Lithium Technologies, Inc. In 2015, Lithium entered into a three -year SaaS subscription agreement with the Company in the amount of $138,000 per year, from which the company recognized approximately $38,000 and $111,500 in SaaS revenue during the three and nine months ended September 30, 2016 . In addition, during 2015, the Company entered into various agreements with Lithium for professional services, and recognized approximately $17,325 in professional services revenue during the nine months ended September 30, 2016 . In 2016, the Company purchased a one -year consulting and services contract for Community Optimization, Social Response, Training & Certification, and platform optimization from Lithium for $60,000 , which was paid in full in August 2016 . As of September 30, 2016 , approximately $45,700 was included in prepaid and other current assets. In addition, the Company purchased a one -year subscription for Lithium's Customer Community platform for $155,000 , which was paid in full in April 2016 . As of September 30, 2016 , approximately $113,800 was included in prepaid and other current assets.

Subsequent Event

Subsequent Event	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
Subsequent Event	Subsequent Event On October 5, 2016, the underwriters of the Company's September 2016 stock offering purchased an additional 765,000 shares of the Company's common stock to cover over-allotments at the public offering price of $18.25 per share. The Company received $13.1 million of cash net of the underwriters discounts and commissions of $0.8 million .

Summary of Significant Accoun19

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
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 September 30, 2016 and for the three and nine months ended September 30, 2016 and 2015 are unaudited and should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K for the year ended December 31, 2015 for Callidus Software Inc., doing business as CallidusCloud ("Company"). 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, 2016 . 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, Netherlands, 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 unaudited 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 fluctuations in information technology spending by prospective customers can 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 consolidated financial statements in future periods.
Revenue Recognition	Revenue Recognition The Company generates revenue by providing software as a service ("SaaS") solutions through on-demand subscription, on-premise 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 SaaS revenue and maintenance revenue, is recognized ratably over the stated contractual period. SaaS revenue consists of subscription fees from customers accessing the Company's cloud-based service offerings. Maintenance revenue consists of fees from customers purchasing licenses and receiving support for such on-premise solutions. The Company also recognizes SaaS and maintenance revenue associated with customers using its products in excess of contracted usage ("Overages"). Overages are primarily attributed to SaaS products and such Overages are recorded in SaaS revenue in the period incurred. Revenue related to Overages was immaterial during the three and nine month periods ended September 30, 2016 and 2015 . Service and License Revenue. Service and license revenue primarily consists of training, integration and configuration services. Generally, the Company's professional services arrangements are billed on a time-and-materials basis. Time and material services are recognized as the services are rendered based on inputs to the project, such as billable hours incurred. For fixed-fee professional services 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 license revenue also includes 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 a limited number of arrangements with non-standard acceptance criteria, the Company defers the revenue until the acceptance criteria are satisfied. Reimbursements, including those related to travel and out-of-pocket expenses, are included in services and license revenue, and an equivalent amount of reimbursable expenses is included in cost of services and license 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 Finance 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 and on-premise software licenses. 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 rates 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 is able to establish VSOE because it has a sufficient history of selling these deliverables at an established price. The Company's revenue arrangements do not include a general right of return relative to the delivered products. Generally, for the Company's term-based licenses, if the only undelivered element is maintenance, the entire amount of revenue is recognized ratably over the maintenance period. Sales and other taxes collected from customers to be remitted to government authorities are excluded from revenue.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments." The guidance addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice for certain cash receipts and cash payments. The amendments in this guidance are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years and early adoption is permitted. The Company is currently evaluating its expected adoption method and timeline, and the impact this ASU will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, "Compensation-Stock Compensation: Improvements to Employee Share-Based Payment Accounting," which simplifies the accounting for share-based transactions, including the income tax consequences, classification of awards as either equity or liabilities on the balance sheet, and classification of employee taxes paid on statement of cash flows when an employer withholds shares for tax-withholding purposes. The new standard is effective for interim and annual periods beginning after December 15, 2016 and early adoption is permitted. The Company has elected not to early adopt. The Company is currently evaluating the impact of the adoption of ASU 2016-09 on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases" which requires the recognition of assets and liabilities arising from lease transactions on the balance sheet and the disclosure of key information about leasing arrangements. Accordingly, a lessee will recognize a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. Both the asset and liability will initially be measured at the present value of the future minimum lease payments over the lease term. Subsequent measurement, including the presentation of expenses and cash flows, will depend on the classification of the lease as either a finance or an operating lease. Initial costs directly attributable to negotiating and arranging the lease will be included in the asset. For leases with a term of 12 months or less, a lessee can make an accounting policy election by class of underlying asset to not recognize an asset and corresponding liability. Lessees will also be required to provide additional qualitative and quantitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases. These disclosures are intended to supplement the amounts recorded in the financial statements and provide additional information about the nature of an organization’s leasing activities. The new standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. In transition, lessees are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The transition guidance also provides specific guidance for sale and leaseback transactions, build-to-suit leases and amounts previously recognized in accordance with the business combinations guidance for leases. The Company is currently evaluating its expected adoption method and timeline, and the impact of this new standard on its consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes, (ASU 2015-17)", which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities, together with any related valuation allowance be classified as non-current in a statement of financial position. The ASU is effective for reporting periods beginning after December 15, 2016, with early adoption permitted. The Company early adopted ASU 2015-17 effective December 31, 2015 on a prospective basis. Adoption of this ASU resulted in a reclassification of the Company's net current deferred tax liabilities to net non-current deferred tax liabilities in its consolidated balance sheets as of December 31, 2015. No prior periods were adjusted retrospectively. In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers" (ASU 2014-09). ASU 2014-09, as amended, 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. The Company is currently in the process of assessing the adoption methodology, which allows the amendment to be applied retrospectively to each prior period presented or with the cumulative effect recognized as of the date of initial application. The Company is also evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements and has not determined whether the effect will be material to either its revenue results or its deferred commission balances. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early adoption is permitted one year earlier, but the Company has elected not to early adopt.

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2016
Badgeville, Inc.
Business Acquisition [Line Items]
Schedule of Business Acquisitions, by Acquisition	The preliminary purchase price allocation for Badgeville is summarized as follows (in thousands): Fair Value Net liabilities assumed $ (1,791 ) Intangible assets 5,200 Goodwill 4,091 Total purchase price $ 7,500
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination	The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives, as of the date of the Badgeville acquisition (in thousands): Fair Value Weighted Average Useful Life Consolidated statements of comprehensive loss Classification:Amortization expense Customer contracts and related relationships $ 700 3 years Sales and marketing expense Developed technology 4,300 5 years Cost of sales Trademarks / trade names / domain names 200 7 years General and administrative Total intangible assets subject to amortization $ 5,200
ViewCentral LLC
Business Acquisition [Line Items]
Schedule of Business Acquisitions, by Acquisition	The preliminary purchase price allocation for ViewCentral is summarized as follows (in thousands): Fair Value Net liabilities assumed $ (1,568 ) Intangible assets 1,700 Goodwill 3,868 Total purchase price $ 4,000
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination	The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives, as of the date of the ViewCentral acquisition (in thousands): Fair Value Weighted Average Useful Life Consolidated statements of comprehensive loss Customer contracts and related relationships $ 850 6 years Sales and marketing expense Developed technology 700 3 years Cost of sales Order backlog 150 1.8 years Cost of sales Total intangible assets subject to amortization $ 1,700

Financial Instruments (Tables)

Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2016
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 September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 Amortized Cost Gross Gains Gross Losses Estimated Fair Value Cash $ 166,087 $ — $ — $ 166,087 Cash equivalents: Money market funds 1,029 — — 1,029 Total cash equivalents 1,029 — — 1,029 Total cash and cash equivalents $ 167,116 $ — $ — $ 167,116 Short-term investments: Certificates of deposits $ 1,250 $ — $ — $ 1,250 U.S. government and agency obligations 9,613 28 (1 ) 9,640 Corporate notes and obligations 8,219 19 (5 ) 8,233 Total short-term investments $ 19,082 $ 47 $ (6 ) $ 19,123 December 31, 2015 Amortized Cost Gross Gains Gross Losses Estimated Fair Value Cash $ 77,191 $ — $ — $ 77,191 Cash equivalents: Money market funds 41 — — 41 Total cash equivalents 41 — — 41 Total cash and cash equivalents $ 77,232 $ — $ — $ 77,232 Short-term investments: Certificate of deposits $ 1,500 $ — $ — $ 1,500 U.S. government and agency obligations 7,423 — (16 ) 7,407 Corporate notes and obligations 11,087 — (17 ) 11,070 Total short-term investments $ 20,010 $ — $ (33 ) $ 19,977
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 September 30, 2016 were as follows (in thousands): Contractual maturity Amortized Cost Estimated Fair value Less than 1 year $ 8,975 $ 8,994 Between 1 and 2 years 10,107 10,129 Total $ 19,082 $ 19,123

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Significant December 31, 2015 Total (Level 1) (Level 2) (Level 3) Assets: Money market funds (1) $ 41 $ 41 $ — $ — Certificates of deposit (2) 1,500 — 1,500 — U.S. government and agency obligations (2) 7,407 — 7,407 — Corporate notes and obligations (2) 11,070 — 11,070 — Total $ 20,018 $ 41 $ 19,977 $ — Liabilities: Contingent consideration and related liabilities (3) $ 324 $ — $ — $ 324 Total $ 324 $ — $ — $ 324 _____________________________________________________________________________ (1) Included in cash and cash equivalents on the unaudited condensed consolidated balance sheets. (2) Included in short-term investments on the unaudited condensed consolidated balance sheets. (3) Included in accrued expenses on the unaudited condensed consolidated balance sheets. The estimated fair value of the Company’s financial assets was determined using the following inputs at September 30, 2016 and December 31, 2015 (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs September 30, 2016 Total (Level 1) (Level 2) (Level 3) Assets: Money market funds (1) $ 1,029 $ 1,029 $ — $ — Certificates of deposit (2) 1,250 — 1,250 — U.S. government and agency obligations (2) 9,640 — 9,640 — Corporate notes and obligations (2) 8,233 — 8,233 — Total $ 20,152 $ 1,029 $ 19,123 $ — Liabilities: Contingent consideration and related liabilities (3) $ 330 $ — $ — $ 330 Total $ 330 $ — $ — $ 330 _____________________________________________________________________________ (1) Included in cash and cash equivalents on the unaudited condensed consolidated balance sheets. (2) Included in short-term investments on the unaudited condensed consolidated balance sheets. (3) Included in accrued expenses on the unaudited condensed consolidated balance sheets.

Commitments and Contingencies -

Commitments and Contingencies - (Tables)	9 Months Ended
	Sep. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]	Future minimum lease payments under non-cancellable operating leases (with initial or remaining lease terms in excess of one year) and purchase commitments as of September 30, 2016 are as follows (in thousands): Unconditional Purchase Commitments (1) (2) Operating Lease Commitments (3) Years ending: Remainder of 2016 $ 10,227 $ 884 2017 8,663 3,661 2018 7,115 4,190 2019 3,117 3,880 2020 3,119 3,979 2021 and beyond — 6,430 Future minimum payments $ 32,241 $ 23,024 (1) Included in unconditional purchase commitments is the five -year agreement with Oracle to purchase software and support services for the Company's data centers. Pursuant to the agreement, the Company is required to make payments of $0.8 million on September 1, 2016 and December 1, 2016, and annual payments of $3.0 million beginning February 2017 and ending February 2020, for a remaining balance of $12.8 million . As of September 30, 2016 , the Company capitalized software costs of $3.2 million , net of depreciation, and recorded $1.7 million to accrued expenses and $2.2 million to other noncurrent liabilities in the unaudited condensed consolidated balance sheets. (2) Also included in unconditional purchase commitments are agreements for capital purchases and maintenance services entered into by the Company in September 2016. The total amount of $10.5 million was not included in accrued expenses as of September 30, 2016. In addition, the unconditional purchase commitments include amounts payable to certain vendors. (3) The Company has facilities under non-cancellable operating lease agreements that expire at various dates through 2021.

Restructuring and Other (Tables

Restructuring and Other (Tables)	9 Months Ended
	Sep. 30, 2016
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 nine months ended September 30, 2016 and 2015 (in thousands): December 31, 2015 Additions Adjustments Cash Payments September 30, 2016 Facilities related costs $ 17 $ 483 $ 18 $ (187 ) $ 331 Total accrued restructuring and other expenses $ 17 $ 483 $ 18 $ (187 ) $ 331 December 31, 2014 Additions Adjustments Cash September 30, 2015 Severance and termination-related costs $ — $ 227 $ — $ (227 ) $ — Facilities related costs 194 7 — (152 ) 49 Total accrued restructuring and other expenses $ 194 $ 234 $ — $ (379 ) $ 49

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Schedule of potential weighted average common shares excluded from computation of diluted net loss per share	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 September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Restricted Stock Units 3,727 3,120 3,679 2,803 Stock Options 509 806 577 945 ESPP Shares 36 13 30 4 Total 4,272 3,939 4,286 3,752

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2016
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 and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Stock options $ 145 $ 147 $ 433 $ 464 Restricted stock units Performance-based awards 1,352 986 3,801 2,370 Service-based awards 4,951 2,651 15,404 10,379 ESPP shares 398 231 1,272 711 Total stock-based compensation $ 6,846 $ 4,015 $ 20,910 $ 13,924
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 and nine months ended September 30, 2016 and 2015 (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Cost of recurring revenue $ 388 $ 269 $ 1,350 $ 806 Cost of services and license 530 277 1,566 856 Sales and marketing 2,261 1,316 6,558 3,931 Research and development 1,251 745 3,591 2,192 General and administrative 2,416 1,408 7,845 6,139 Total stock-based compensation $ 6,846 $ 4,015 $ 20,910 $ 13,924
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: Nine Months Ended September 30, Employee Stock Purchase Plan 2016 2015 Expected life (in years) 0.50 to 1.00 0.50 to 1.00 Risk-free interest rate 0.45% to 0.57% 0.25% to 0.38% Volatility 33.2% to 43.0% 38.7% to 39.3% Dividend yield None None

Segment, Geographic and Custo27

Segment, Geographic and Customer Information (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Summary of revenues by geographic areas	The following table summarizes revenue for the three and nine months ended September 30, 2016 and 2015 by geographic areas (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 United States and Canada $ 43,029 $ 37,256 $ 123,645 $ 103,387 EMEA 5,839 4,570 16,167 13,031 Asia Pacific 2,471 2,389 7,456 7,360 Other 1,168 729 3,368 2,525 $ 52,507 $ 44,944 $ 150,636 $ 126,303

Acquisitions - Badgeville (Deta

Acquisitions - Badgeville (Details) - USD ($) $ in Thousands	Jun. 24, 2016	Sep. 30, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Goodwill		$ 56,682	$ 50,146
Badgeville, Inc.
Business Acquisition [Line Items]
Purchase consideration	$ 7,500
Finite-lived intangible assets acquired	5,200
Payments to acquire business	7,500
Net liabilities assumed	(1,791)
Intangible assets	5,200
Goodwill	$ 4,091
Badgeville, Inc. | Customer contracts
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (in years)	3 years
Badgeville, Inc. | Customer contracts | Sales and marketing
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 700
Badgeville, Inc. | Developed technology
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (in years)	5 years
Badgeville, Inc. | Developed technology | Cost of sales
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 4,300
Badgeville, Inc. | Trademarks/Trade names/Domain names
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (in years)	7 years
Badgeville, Inc. | Trademarks/Trade names/Domain names | General and administrative
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 200

Financial Instruments (Details)

Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Financial instruments
Cash and cash equivalents	$ 167,116	$ 77,232	$ 77,117	$ 34,200
Cash and cash equivalents
Financial instruments
Cash and cash equivalents	167	77,232
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value, Cash and Cash Equivalents	167	77,232
Cash
Financial instruments
Cash and cash equivalents	166	77,191
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value, Cash and Cash Equivalents	166	77,191
Money market funds
Financial instruments
Cash and cash equivalents	1	41
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value, Cash and Cash Equivalents	1	41
Cash equivalents
Financial instruments
Cash and cash equivalents	1	41
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated Fair Value, Cash and Cash Equivalents	1	41
Short-term investments
Financial instruments
Amortized Cost	19	20,010
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(33)
Estimated FV, Available for Sale Securities	19	19,977
Certificates of deposit
Financial instruments
Amortized Cost	1	1,500
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Estimated FV, Available for Sale Securities	1	1,500
U.S. government and agency obligations
Financial instruments
Amortized Cost	10	7,423
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(16)
Estimated FV, Available for Sale Securities	10	7,407
Corporate notes and obligations
Financial instruments
Amortized Cost	8	11,087
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	(17)
Estimated FV, Available for Sale Securities	$ 8	$ 11,070

Acquisitions -ViewCentral LLC (

Acquisitions -ViewCentral LLC (Details) - USD ($) $ in Thousands	Apr. 08, 2016	Sep. 30, 2016	Dec. 31, 2015
Business Acquisition [Line Items]
Goodwill		$ 56,682	$ 50,146
ViewCentral LLC
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 1,700
Purchase consideration	4,000
Net liabilities assumed	(1,568)
Intangible assets	1,700
Goodwill	3,868
Payments to acquire business	$ 4,000
Customer contracts | ViewCentral LLC
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (in years)	6 years
Customer contracts | ViewCentral LLC | Sales and marketing
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 850
Developed technology | ViewCentral LLC
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (in years)	3 years
Developed technology | ViewCentral LLC | Cost of sales
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 700
Order backlog | ViewCentral LLC
Business Acquisition [Line Items]
Acquired finite-lived intangible assets, weighted average useful life (in years)	1 year 9 months 18 days
Order backlog | ViewCentral LLC | Cost of sales
Business Acquisition [Line Items]
Finite-lived intangible assets acquired	$ 150

Financial Instruments (Details

Financial Instruments (Details 2)	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)investment	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)investment	Sep. 30, 2015USD ($)	Dec. 31, 2015investment
Contractual maturity, Amortized Cost
Less than 1 year	$ 8,975,000		$ 8,975,000
Between 1 and 2 years	10,107,000		10,107,000
Total	19,082,000		19,082,000
Contractual maturity, Estimated Fair value
Less than 1 year	8,994,000		8,994,000
Between 1 and 2 years	10,129,000		10,129,000
Total	$ 19,123,000		$ 19,123,000
Other disclosures pertaining to available-for-sale securities
Short-term investments in a material unrealized loss position with maturities of greater than 12 months | investment	0		0		0
Realized gains or losses on sales of investments	$ 0	$ 0
Purchases of investments, net of proceeds from maturities of investments			$ 800,000	$ 15,900,000

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands		Sep. 30, 2016	Dec. 31, 2015
Ongoing basis | Estimate of Fair Value Measurement
Assets:
Assets, Fair Value		$ 20,152	$ 20,018
Liabilities:
Contingent consideration and related liabilities, fair value	[1]	330	324
Liabilities, Fair Value		330	324
Ongoing basis | Money market funds | Estimate of Fair Value Measurement
Assets:
Assets, Fair Value	[2]	1,029	41
Ongoing basis | Certificates of deposit | Estimate of Fair Value Measurement
Assets:
Assets, Fair Value	[3]	1,250	1,500
Ongoing basis | U.S. government and agency obligations | Estimate of Fair Value Measurement
Assets:
Assets, Fair Value	[3]	9,640	7,407
Ongoing basis | Corporate notes and obligations | Estimate of Fair Value Measurement
Assets:
Assets, Fair Value	[3]	8,233	11,070
Ongoing basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Assets, Fair Value		1,029	41
Liabilities:
Contingent consideration and related liabilities, fair value	[1]		0
Liabilities, Fair Value		0	0
Ongoing basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Money market funds
Assets:
Assets, Fair Value	[2]	1,029	41
Ongoing basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Certificates of deposit
Assets:
Assets, Fair Value	[3]	0	0
Ongoing basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and agency obligations
Assets:
Assets, Fair Value	[3]	0	0
Ongoing basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate notes and obligations
Assets:
Assets, Fair Value	[3]	0	0
Ongoing basis | Significant Other Observable Inputs (Level 2)
Assets:
Assets, Fair Value		19,123	19,977
Liabilities:
Contingent consideration and related liabilities, fair value	[1]		0
Liabilities, Fair Value		0	0
Ongoing basis | Significant Other Observable Inputs (Level 2) | Money market funds
Assets:
Assets, Fair Value	[2]	0	0
Ongoing basis | Significant Other Observable Inputs (Level 2) | Certificates of deposit
Assets:
Assets, Fair Value	[3]	1,250	1,500
Ongoing basis | Significant Other Observable Inputs (Level 2) | U.S. government and agency obligations
Assets:
Assets, Fair Value	[3]	9,640	7,407
Ongoing basis | Significant Other Observable Inputs (Level 2) | Corporate notes and obligations
Assets:
Assets, Fair Value	[3]	8,233	11,070
Ongoing basis | Significant Unobservable Inputs (Level 3)
Assets:
Assets, Fair Value		0	0
Liabilities:
Contingent consideration and related liabilities, fair value	[1]	330	324
Liabilities, Fair Value		330	324
Ongoing basis | Significant Unobservable Inputs (Level 3) | Money market funds
Assets:
Assets, Fair Value	[2]	0	0
Ongoing basis | Significant Unobservable Inputs (Level 3) | Certificates of deposit
Assets:
Assets, Fair Value	[3]	0	0
Ongoing basis | Significant Unobservable Inputs (Level 3) | U.S. government and agency obligations
Assets:
Assets, Fair Value	[3]	0	0
Ongoing basis | Significant Unobservable Inputs (Level 3) | Corporate notes and obligations
Assets:
Assets, Fair Value	[3]	0	$ 0
Fair Value Hedging
Liabilities:
Derivative, Notional Amount		1,100
Euro Member Countries, Euro | Fair Value Hedging | Foreign Exchange Forward
Liabilities:
Foreign Currency Fair Value Hedge Asset at Fair Value		900
Australia, Dollars | Fair Value Hedging | Foreign Exchange Forward
Liabilities:
Foreign Currency Fair Value Hedge Asset at Fair Value		$ 200
[1]	Included in accrued expenses on the unaudited condensed consolidated balance sheets.
[2]	Included in cash and cash equivalents on the unaudited condensed consolidated balance sheets.
[3]	Included in short-term investments on the unaudited condensed consolidated balance sheet

Commitments and Contingencies33

Commitments and Contingencies - Maturity Schedule (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Recorded Unconditional Purchase Obligation [Line Items]
Property and equipment, net	$ 31,566	$ 20,540
Recorded Unconditional Purchase Obligation, Fiscal Year Maturity Schedule [Abstract]
Remainder of 2016	10,227
2,017	8,663
2,018	7,115
2,019	3,117
2,020	3,119
2021 and beyond	0
Future minimum payments	32,241
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
Remainder of 2016	884
2,017	3,661
2,018	4,190
2,019	3,880
2,020	3,979
2021 and beyond	6,430
Future minimum payments	23,024
Capital Addition Purchase Commitments
Recorded Unconditional Purchase Obligation [Line Items]
Unrecorded unconditional purchase obligation	$ 10,500
Oracle
Recorded Unconditional Purchase Obligation [Line Items]
Long-term purchase commitment, period	5 years
Unrecorded unconditional purchase obligation, due quarterly In next twelve months	$ 800
Unrecorded unconditional purchase obligation, due within two years	3,000
Unrecorded unconditional purchase obligation, due within three years	3,008
Unrecorded unconditional purchase obligation, due within four years	3,008
Unrecorded unconditional purchase obligation, due within five years	3,008
Unrecorded unconditional purchase obligation	12,800
Other deferred costs, net	3,200
Oracle | Accrued Expenses
Recorded Unconditional Purchase Obligation [Line Items]
Unrecorded unconditional purchase obligation	1,700
Oracle | Other Noncurrent Liabilities
Recorded Unconditional Purchase Obligation [Line Items]
Unrecorded unconditional purchase obligation	$ 2,200

Commitments and Contingencies (

Commitments and Contingencies (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Sep. 30, 2014USD ($)	May 31, 2014USD ($)
Contractual cash obligations
Repayments of lines of credit			$ 0	$ 10,482,000
Line of credit outstanding	$ 0		$ 0
Line of Credit | Wells Fargo Credit Agreement
Contractual cash obligations
Line of credit, borrowing capacity						$ 15,000,000	$ 10,000,000
Minimum liquidity					$ 7,500,000
Line of Credit | Wells Fargo Credit Agreement | Revolving Credit Facility
Contractual cash obligations
Repayments of lines of credit		$ 10,500,000
Required leverage ratio	3		3
Commitment fee percentage			0.25%
Line of Credit | Wells Fargo Credit Agreement | Minimum
Contractual cash obligations
Line of credit, borrowing capacity							5,000,000
Line of Credit | Wells Fargo Credit Agreement | Minimum | Revolving Credit Facility
Contractual cash obligations
Basis spread on variable rate			0.75%
Line of Credit | Wells Fargo Credit Agreement | Maximum
Contractual cash obligations
Line of credit, borrowing capacity							$ 10,000,000
Line of Credit | Wells Fargo Credit Agreement | Maximum | Revolving Credit Facility
Contractual cash obligations
Basis spread on variable rate			2.25%
Letter of Credit | Dublin (CA) Headquarters
Contractual cash obligations
Line of credit facility, increase	$ 1,400,000
Debt instrument, term	1 year
Line of credit	$ 0		$ 0

Restructuring and Other (Detail

Restructuring and Other (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	$ 80	$ 0	$ 482	$ 234
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period		49	17	194
Additions			483	234
Adjustments			18	0
Cash Payments			(187)	(379)
Balance at the end of the period	331		331
Severance and termination-related costs
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period		0		0
Additions				227
Adjustments				0
Cash Payments				(227)
Facilities related costs
Restructuring Reserve [Roll Forward]
Balance at the beginning of the period		$ 49	17	194
Additions			483	7
Adjustments			18	0
Cash Payments			(187)	$ (152)
Balance at the end of the period	$ 331		$ 331

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) - $ / shares shares in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share, Diluted
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares)	4,272	3,939	4,286	3,752
Restricted Stock Units
Earnings Per Share, Diluted
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares)	3,727	3,120	3,679	2,803
Stock Options
Earnings Per Share, Diluted
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares)	509	806	577	945
Antidilutive securities excluded from computation of earnings per share, weighted average exercise price	$ 6.72	$ 6.35	$ 6.71	$ 6.12
ESPP shares
Earnings Per Share, Diluted
Anti-dilutive securities excluded from computation of diluted net loss per share (in shares)	36	13	30	4

Stock-based Compensation (Detai

Stock-based Compensation (Details) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2014company
Stock-based compensation
Stock-based compensation expense	$ 6,846	$ 4,015	$ 20,910	$ 13,924
Stock options
Stock-based compensation
Stock-based compensation expense	145	147	433	464
Unrecognized compensation expense, stock options	400		$ 400
Recognition period for compensation expense not yet recognized			9 months 22 days
Performance-based awards
Stock-based compensation
Stock-based compensation expense	1,352	986	$ 3,801	2,370
Compensation expense not yet recognized	4,400		$ 4,400
Recognition period for compensation expense not yet recognized			1 year 2 months 12 days
Service-based awards
Stock-based compensation
Stock-based compensation expense	4,951	2,651	$ 15,404	10,379
Compensation expense not yet recognized	25,700		$ 25,700
Recognition period for compensation expense not yet recognized			1 year 10 months 24 days
ESPP shares
Stock-based compensation
Stock-based compensation expense	398	$ 231	$ 1,272	$ 711
Compensation expense not yet recognized	600		$ 600
Recognition period for compensation expense not yet recognized			6 months
Granted in 2015 | Performance stock units
Stock-based compensation
Stock-based compensation expense	400		$ 1,200
Granted in 2014 | Performance stock units
Stock-based compensation
Stock-based compensation expense	$ 800		$ 2,400
Number of companies in performance index | company					17

Stock-based Compensation (Det38

Stock-based Compensation (Details 2) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Classification of stock-based compensation expense
Stock-based compensation expense	$ 6,846	$ 4,015	$ 20,910	$ 13,924
Cost of recurring revenues
Classification of stock-based compensation expense
Stock-based compensation expense	388	269	1,350	806
Cost of services and other revenues
Classification of stock-based compensation expense
Stock-based compensation expense	530	277	1,566	856
Sales and marketing
Classification of stock-based compensation expense
Stock-based compensation expense	2,261	1,316	6,558	3,931
Research and development
Classification of stock-based compensation expense
Stock-based compensation expense	1,251	745	3,591	2,192
General and administrative
Classification of stock-based compensation expense
Stock-based compensation expense	$ 2,416	$ 1,408	$ 7,845	$ 6,139

Stock-based Compensation (Det39

Stock-based Compensation (Details 3) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2015	Dec. 31, 2014company
Stock-based compensation
Stock-based compensation expense	$ 6,846	$ 4,015	$ 20,910	$ 13,924
Performance stock units
Stock-based compensation
Performance period					3 years
Performance stock units | Granted in 2015
Stock-based compensation
Stock-based compensation expense	400		1,200
Performance stock units | Granted in 2014
Stock-based compensation
Stock-based compensation expense	800		2,400
Number of companies in performance index | company						17
ESPP shares
Stock-based compensation
Stock-based compensation expense	$ 398	$ 231	$ 1,272	$ 711
Fair value assumptions using the Black-Scholes-Merton valuation model
Risk-free interest rate, minimum (as a percent)			0.45%	0.07%
Risk-free interest rate, maximum (as a percent)			0.57%	0.25%
Volatility, minimum (as a percent)			33.20%	42.00%
Volatility, maximum (as a percent)			43.00%	46.00%
Dividend yield (as a percent)			0.00%	0.00%
ESPP shares | Minimum
Fair value assumptions using the Black-Scholes-Merton valuation model
Expected life (in years)			6 months	5 months 27 days
ESPP shares | 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 ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 258	$ 187	$ 755	$ 566

Segment, Geographic and Custo41

Segment, Geographic and Customer Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)customer	Sep. 30, 2016USD ($)segmentcustomer	Sep. 30, 2015USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment			1
Revenues by geographic area
Revenues	$ 52,507	$ 44,944	$ 150,636	$ 126,303
Number of customers accounted for more than 10% of total revenues | customer		0	0
United States
Revenues by geographic area
Revenues	43,029	$ 37,256	$ 123,645	103,387
EMEA
Revenues by geographic area
Revenues	5,839	4,570	16,167	13,031
Asia Pacific
Revenues by geographic area
Revenues	2,471	2,389	7,456	7,360
Other
Revenues by geographic area
Revenues	$ 1,168	$ 729	$ 3,368	$ 2,525

Related Party Transactions (Det

Related Party Transactions (Details) - Lithium - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Sep. 30, 2016	Dec. 31, 2015
Service Agreements
Related party transactions
Agreement term			3 years
Annual subscription recorded in prepaid expense and other current assets		$ 17,325
Related party transaction amount			$ 138,000
Service Agreements | Affiliated Entity
Related party transactions
Agreement term		1 year
Annual subscription recorded in prepaid expense and other current assets		$ 45,700
Related party transaction amount		60,000
Hosting Agreement
Related party transactions
Revenue recongnized in related party transaction	$ 38,000	111,500
Subscription Arrangement
Related party transactions
Revenue recongnized in related party transaction		$ 155,000
Subscription Arrangement | Affiliated Entity | Prepaid Expenses and Other Current Assets
Related party transactions
Agreement term		1 year
Annual subscription recorded in prepaid expense and other current assets		$ 113,800

Subsequent Event (Details)

Subsequent Event (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 05, 2016	Sep. 21, 2016
Subsequent Event [Line Items]
Stock issued during period, shares, new issues		5,100,000
Sale of stock, price per share (in usd per share)		$ 18.25
Sale of stock, consideration received on transaction		$ 87.1
Payments of stock issuance costs		$ 5.6
Over-Allotment Option | Subsequent Event
Subsequent Event [Line Items]
Stock issued during period, shares, new issues	765,000
Sale of stock, price per share (in usd per share)	$ 18.25
Sale of stock, consideration received on transaction	$ 13.1
Payments of stock issuance costs	$ 0.8

Stockholders' Equity (Details)

Stockholders' Equity (Details) $ / shares in Units, shares in Millions, $ in Millions	Sep. 21, 2016USD ($)$ / sharesshares
Equity [Abstract]
Stock issued during period, shares, new issues | shares	5.1
Sale of stock, price per share (in usd per share) | $ / shares	$ 18.25
Sale of stock, consideration received on transaction	$ 87.1
Payments of stock issuance costs	5.6
Deferred offering costs	$ 0.4