Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Jan. 31, 2014 | Jun. 30, 2013 | |
Document Document And Entity Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'SCIQUEST INC | ' | ' |
Entity Central Index Key | '0001082526 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $573,483,152 |
Entity Common Stock, Shares Outstanding | ' | 23,815,328 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $19,117 | $15,606 |
Short-term investments | 15,105 | 29,740 |
Accounts receivable, net | 12,987 | 12,916 |
Prepaid expenses and other current assets | 3,268 | 1,434 |
Deferred tax asset | 290 | 77 |
Total current assets | 50,767 | 59,773 |
Property and equipment, net | 10,028 | 7,093 |
Goodwill | 65,280 | 37,295 |
Intangible assets, net | 29,490 | 16,346 |
Deferred project costs | 6,701 | 6,962 |
Deferred tax asset, less current portion | 10,885 | 12,682 |
Other | 294 | 173 |
Total assets | 173,445 | 140,324 |
Current liabilities: | ' | ' |
Accounts payable | 741 | 1,864 |
Accrued liabilities | 13,765 | 8,771 |
Deferred revenues | 57,417 | 47,821 |
Total current liabilities | 71,923 | 58,456 |
Deferred revenues, less current portion | 13,343 | 14,640 |
Commitments and contingencies | ' | ' |
Stockholders’ Equity | ' | ' |
Common stock, $0.001 par value; 50,000 shares authorized; 23,811 and 22,525 shares issued and outstanding as of December 31, 2013 and 2012, respectively | 24 | 23 |
Additional paid-in capital | 108,864 | 81,894 |
Accumulated other comprehensive loss | -1,401 | -115 |
Accumulated deficit | -19,308 | -14,574 |
Total stockholders’ equity | 88,179 | 67,228 |
Total liabilities and stockholders’ equity | $173,445 | $140,324 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 50,000 | 50,000 |
Common stock, shares issued | 23,811 | 22,525 |
Common stock, shares outstanding | 23,811 | 22,525 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive (Loss) Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | $90,231 | $66,465 | $53,438 |
Cost of revenues | 27,411 | 20,270 | 13,340 |
Gross profit | 62,820 | 46,195 | 40,098 |
Operating expenses: | ' | ' | ' |
Research and development | 28,267 | 17,188 | 11,233 |
Sales and marketing | 24,261 | 17,907 | 14,282 |
General and administrative | 13,033 | 10,918 | 8,403 |
Amortization of intangible assets | 2,382 | 1,268 | 864 |
Total operating expenses | 67,943 | 47,281 | 34,782 |
(Loss) income from operations | -5,123 | -1,086 | 5,316 |
Other income (expense): | ' | ' | ' |
Interest income | 61 | 95 | 91 |
Other income (expense), net | -48 | -82 | 207 |
Total other income, net | 13 | 13 | 298 |
(Loss) income before income taxes | -5,110 | -1,073 | 5,614 |
Income tax benefit (expense) | 376 | -103 | -2,780 |
Net (loss) income | -4,734 | -1,176 | 2,834 |
Other comprehensive (loss) income: | ' | ' | ' |
Foreign currency translation adjustments | -1,286 | -115 | ' |
Comprehensive (loss) income | ($6,020) | ($1,291) | $2,834 |
Net (loss) income per share: | ' | ' | ' |
Basic | ($0.20) | ($0.05) | $0.13 |
Diluted | ($0.20) | ($0.05) | $0.13 |
Weighted average shares outstanding used in computing per share amounts: | ' | ' | ' |
Basic | 23,044 | 22,285 | 21,673 |
Diluted | 23,044 | 22,285 | 22,241 |
Consolidated_Statement_of_Stoc
Consolidated Statement of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-in Capital | Notes Receivable From Stockholders | Accumulated Other Comprehensive Loss | Accumulated Deficit |
In Thousands | ||||||
Balance at Dec. 31, 2010 | $34,235 | $20 | $50,462 | ($15) | ' | ($16,232) |
Balance, shares at Dec. 31, 2010 | ' | 20,532 | ' | ' | ' | ' |
Proceeds from public offering, net of underwriting discounts and offering costs | 14,997 | 1 | 14,996 | ' | ' | ' |
Proceeds from public offering, net of underwriting discounts and offering costs, shares | ' | 1,150 | ' | ' | ' | ' |
Issuance of stock in connection with stock option exercises | 166 | 1 | 165 | ' | ' | ' |
Issuance of stock in connection with stock option exercises, shares | ' | 146 | ' | ' | ' | ' |
Issuance of stock in connection with business acquisitions | 4,539 | ' | 4,539 | ' | ' | ' |
Issuance of stock in connection with business acquisitions, shares | ' | 307 | ' | ' | ' | ' |
Repurchase of restricted stock | -28 | ' | -28 | ' | ' | ' |
Repurchase of restricted stock, shares | ' | -28 | ' | ' | ' | ' |
Exercise of warrants | ' | ' | ' | ' | ' | ' |
Exercise of warrants, shares | ' | 26 | ' | ' | ' | ' |
Payments on notes receivable from stockholders | 15 | ' | ' | 15 | ' | ' |
Stock-based compensation | 3,949 | ' | 3,949 | ' | ' | ' |
Net income (loss) | 2,834 | ' | ' | ' | ' | 2,834 |
Balance at Dec. 31, 2011 | 60,707 | 22 | 74,083 | ' | ' | -13,398 |
Balance, shares at Dec. 31, 2011 | ' | 22,133 | ' | ' | ' | ' |
Issuance of stock in connection with stock option exercises | 528 | 1 | 527 | ' | ' | ' |
Issuance of stock in connection with stock option exercises, shares | ' | 157 | ' | ' | ' | ' |
Issuance of stock in connection with business acquisitions | 2,087 | ' | 2,087 | ' | ' | ' |
Issuance of stock in connection with business acquisitions, shares | ' | 235 | ' | ' | ' | ' |
Stock-based compensation | 5,197 | ' | 5,197 | ' | ' | ' |
Foreign currency translation adjustments | -115 | ' | ' | ' | -115 | ' |
Net income (loss) | -1,176 | ' | ' | ' | ' | -1,176 |
Balance at Dec. 31, 2012 | 67,228 | 23 | 81,894 | ' | -115 | -14,574 |
Balance, shares at Dec. 31, 2012 | ' | 22,525 | ' | ' | ' | ' |
Issuance of stock in connection with stock option exercises | 2,103 | ' | 2,103 | ' | ' | ' |
Issuance of stock in connection with stock option exercises, shares | 241 | 241 | ' | ' | ' | ' |
Issuance of stock in connection with employee stock purchase plan | 843 | ' | 843 | ' | ' | ' |
Issuance of stock in connection with employee stock purchase plan, shares | ' | 57 | ' | ' | ' | ' |
Issuance of stock pursuant to vesting of restricted stock units | ' | ' | ' | ' | ' | ' |
Issuance of stock pursuant to vesting of restricted stock units, shares | ' | 13 | ' | ' | ' | ' |
Issuance of stock in connection with business acquisitions | 17,093 | 1 | 17,092 | ' | ' | ' |
Issuance of stock in connection with business acquisitions, shares | ' | 977 | ' | ' | ' | ' |
Repurchase of restricted stock | ' | ' | ' | ' | ' | ' |
Repurchase of restricted stock, shares | ' | -2 | ' | ' | ' | ' |
Stock-based compensation | 6,932 | ' | 6,932 | ' | ' | ' |
Foreign currency translation adjustments | -1,286 | ' | ' | ' | -1,286 | ' |
Net income (loss) | -4,734 | ' | ' | ' | ' | -4,734 |
Balance at Dec. 31, 2013 | $88,179 | $24 | $108,864 | ' | ($1,401) | ($19,308) |
Balance, shares at Dec. 31, 2013 | ' | 23,811 | ' | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities | ' | ' | ' |
Net (loss) income | ($4,734) | ($1,176) | $2,834 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 7,963 | 4,281 | 2,142 |
Stock-based compensation expense | 6,932 | 5,197 | 3,949 |
Deferred taxes | -443 | -55 | 2,481 |
Loss from disposal of property and equipment | ' | 38 | ' |
Changes in operating assets and liabilities, net of effects of acquisitions: | ' | ' | ' |
Accounts receivable | 2,497 | 556 | -3,515 |
Prepaid expenses and other current assets | -1,510 | -145 | 456 |
Deferred project costs and other assets | 290 | -1 | -1,263 |
Accounts payable | -1,214 | 1,764 | 51 |
Accrued liabilities | 4,170 | 1,995 | 1,221 |
Deferred revenues | 4,067 | 7,926 | 9,051 |
Net cash provided by operating activities | 18,018 | 20,380 | 17,407 |
Cash flows from investing activities | ' | ' | ' |
Business acquisitions, net of cash acquired | -25,592 | -30,188 | -7,346 |
Addition of capitalized software development costs | -3,654 | -3,113 | -1,004 |
Purchase of property and equipment | -2,873 | -1,825 | -2,058 |
Purchase of available-for-sale short-term investments | -23,525 | -6,020 | -36,340 |
Maturities of available-for-sale short-term investments | 38,160 | 20,965 | 11,655 |
Net cash used in investing activities | -17,484 | -20,181 | -35,093 |
Cash flows from financing activities | ' | ' | ' |
Proceeds from public offering, net of underwriting discount | ' | ' | 15,405 |
Public offering costs | ' | ' | -408 |
Repurchases of restricted stock | ' | ' | -28 |
Collection of notes receivable from stockholders | ' | ' | 15 |
Proceeds from exercise of common stock options | 2,103 | 528 | 166 |
Proceeds from employee stock purchase plan activity | 930 | ' | ' |
Net cash provided by financing activities | 3,033 | 528 | 15,150 |
Effect of exchange rate change on cash and cash equivalents | -56 | -79 | ' |
Net increase (decrease) in cash and cash equivalents | 3,511 | 648 | -2,536 |
Cash and cash equivalents at beginning of year | 15,606 | 14,958 | 17,494 |
Cash and cash equivalents at end of year | 19,117 | 15,606 | 14,958 |
Supplemental disclosure of non-cash investing activities | ' | ' | ' |
Issuance of common stock in connection with acquisition | $17,093 | $2,087 | $4,539 |
Description_of_Business
Description of Business | 12 Months Ended |
Dec. 31, 2013 | |
Description of Business | ' |
1. Description of Business | |
SciQuest, Inc. (the Company) provides leading cloud-based business automation solutions for spend management. The Company’s solutions include procurement solutions that automate the source-to-settle process, spend analysis solutions that cleanse and classify spend data to drive and measure cost savings, supplier management solutions that facilitate our customers’ interactions with their suppliers, contract lifecycle management solutions that automate the complete contract lifecycle from contract creation through maintenance and accounts payable solutions that automate the invoice processing and vendor payment processes. The Company’s solutions are designed to meet customer needs to reduce costs, simplify and improve visibility into key business processes, further strategic initiatives, enhance control over spending decisions and improve compliance and risk management. By simplifying and streamlining cumbersome, and often manual, processes and creating a comprehensive view of spending and compliance across the organization, organizations can identify and capitalize on opportunities to reduce costs by gaining control over suppliers, contracts, purchases and payments. The Company is headquartered in Cary, North Carolina. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||
2. Summary of Significant Accounting Policies | ||||||||||||
Basis of Presentation | ||||||||||||
The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). | ||||||||||||
Principles of Consolidation | ||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||||
Use of Estimates | ||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. | ||||||||||||
Revenue Recognition | ||||||||||||
The Company primarily derives its revenues from subscription fees and related services, permitting customers to access and utilize the Company’s cloud-based business automation solutions for spend management. Customers may also purchase a perpetual license for certain software products. Revenue is recognized when there is persuasive evidence of an arrangement, the service has been provided or delivered to the customer, the collection of the fee is probable and the amount of the fee to be paid by the customer is fixed or determinable. The Company’s arrangements do not contain general rights of return. | ||||||||||||
Because customers do not have the right to take possession of the Software-as-a-Service (“SaaS”) based software, these arrangements are considered service contracts and are not within the scope of Industry Topic 985, Software. The Company’s contractual agreements generally contain multiple service elements and deliverables, for which we follow the guidance provided in Accounting Standards Codification (“ASC”) 605-25, Revenue Recognition for Multiple-Element Arrangements. These elements include access to the hosted software, implementation or data classification services and, on a limited basis, perpetual licenses for certain software products and related maintenance and support. The Company evaluates each element in a multiple-element arrangement to determine whether it represents a separate unit of accounting. An element constitutes a separate unit of accounting when the delivered item has standalone value and delivery of the undelivered element is probable and within the Company’s control. | ||||||||||||
For arrangements in which elements do have stand-alone value, the Company allocates revenue to each element in the arrangement based on a selling price hierarchy. The selling price for a deliverable is based on vendor-specific objective evidence of selling price (“VSOE”), if available, third-party evidence of selling price (“TPE”), if VSOE is not available, or estimated selling price (“ESP”) if neither VSOE nor TPE is available. Because the Company has neither VSOE nor TPE for its deliverables, the allocation of revenue is based on ESP. | ||||||||||||
The Company’s process for determining ESP for its deliverables considers multiple factors that may vary depending upon the facts and circumstances related to each deliverable. Key factors considered in developing ESP related to deliverables include established pricing and approval policies, type and size of customer, number of products purchased, and historical transactions. The Company regularly reviews ESP and maintains internal controls over the establishment and updates of these estimates. | ||||||||||||
The Company evaluates its SaaS subscription agreements and considers whether the associated services have standalone value to its customers. For arrangements when implementation services do not have standalone value to the customer, licenses and related implementation services are considered a single unit of accounting. Accordingly, the consideration allocated to licenses and services is recognized ratably over the term of the subscription agreement, beginning with the later of the start date specified in the subscription agreement, or the date access to the software is provided to the customer, provided all other revenue recognition criteria have been met. Fees for professional services that are contingent upon future performance are recognized ratably over the remaining subscription term once the performance milestones have been met. Alternatively, when services have standalone value to the customer, licenses and related services are considered separate units of accounting. For separate units of accounting, services are recognized as the services are performed and delivered to the customer and licenses are recognized over the term of the subscription arrangement, beginning with the later of the start date specified in the subscription agreement, or the date access to the software is provided to the customer, provided all other revenue recognition criteria have been met. | ||||||||||||
Revenue from sales of certain of the Company’s perpetual software products and related implementation services and maintenance is recognized as a single unit of accounting since VSOE of fair value does not exist for the contractual elements. Accordingly, revenue for all elements in these arrangements is recognized over the contractual maintenance term, which is typically one year. | ||||||||||||
The Company recognizes revenue from any professional services that are sold separately as the services are performed. | ||||||||||||
Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from the Company’s software and services described above. For multi-year subscription agreements, the Company generally invoices its customers in annual installments. Accordingly, the deferred revenue balance does not represent the total contract value of these multi-year subscription agreements. The Company’s services, such as implementation, are generally sold in conjunction with subscription agreements. These services are recognized ratably over the remaining term of the subscription agreement once any contingent performance milestones have been satisfied. The portion of deferred revenue that the Company anticipates will be recognized after the succeeding 12-month period is recorded as non-current deferred revenue and the remaining portion is recorded as current deferred revenue. | ||||||||||||
Cost of Revenues | ||||||||||||
Cost of revenues primarily consists of costs related to hosting the Company’s subscription software services, compensation and related expenses for implementation services, supplier enablement services, customer support staff and client partners, amortization of capitalized software development costs and allocated fixed asset depreciation and facilities costs. Cost of revenues is expensed as incurred. | ||||||||||||
Deferred Project Costs | ||||||||||||
The Company capitalizes sales commission costs that are directly related to the execution of its subscription agreements. The commissions are deferred and amortized over the contractual term of the related non-cancelable subscription agreement. The Company believes this is the appropriate method of accounting, as the commission costs are so closely related to the revenues from the subscription agreements that they should be recorded as an asset and charged to expense over the same period that the subscription revenues are recognized. Amortization of deferred commissions is included in sales and marketing expense in the accompanying consolidated statements of operations and comprehensive (loss) income. The deferred commissions are reflected within deferred project costs in the accompanying consolidated balance sheets. | ||||||||||||
Concentrations | ||||||||||||
As of December 31, 2013 and 2012, no individual customer comprised more than 10% of the accounts receivable balance. During each of the years ended December 31, 2013, 2012 and 2011, no individual customer comprised more than 10% of the Company’s revenues. During the years ended December 31, 2013, 2012 and 2011, approximately 89%, 93% and 95%, respectively, of the Company’s revenue was from sales transactions originating in the United States. As of December 31, 2013 and 2012, all of the Company’s long-lived assets were located in North America. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
The Company considers all highly liquid debt investments with an original maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains cash balances at financial institutions that may at times exceed federally insured limits. The Company maintains this cash at reputable financial institutions and, as a result, believes credit risk related to its cash is minimal. | ||||||||||||
Short-Term Investments | ||||||||||||
Management determines the appropriate classification of investments at the time of purchase and evaluates such determination as of each balance sheet date. The Company’s investments were classified as available-for-sale securities and are stated at fair value at December 31, 2013 and 2012. Realized gains and losses are included in other income (expense) based on the specific identification method. There were no realized gains or losses for the years ended December 31, 2013, 2012 or 2011. Net unrealized gains and losses on available-for-sale securities are reported as a component of other comprehensive (loss) income, net of tax. As of December 31, 2013 and 2012, there were no unrealized gains or losses on available-for-sale securities. The Company regularly monitors and evaluates the fair value of its investments to identify other-than-temporary declines in value. Management believes no such declines in value existed at December 31, 2013 or 2012. | ||||||||||||
Accounts Receivable | ||||||||||||
The Company assesses the need for an allowance for doubtful accounts based on estimates of probable credit losses. This assessment is based on several factors including aging of customer accounts, known customer specific risks, historical experience and existing economic conditions. The Company generally does not require collateral for receivable balances. Accounts would be charged against the allowance after all means of collection were exhausted and recovery was considered remote. Based on management’s analysis of its outstanding accounts receivable, the Company recorded an allowance of $556 and $122 at December 31, 2013 and 2012, respectively. | ||||||||||||
Property and Equipment | ||||||||||||
Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives, which are usually seven years for furniture and three to five years for computer software and equipment. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the remainder of the lease term. Costs for repairs and maintenance are expensed as incurred. Upon retirement or sale, the cost of the disposed assets and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is credited or charged to operations. | ||||||||||||
Software Development Costs | ||||||||||||
The Company incurs certain costs associated with the development of its cloud-based solution, which are accounted for as internal-use software. Certain qualifying costs incurred during the application development phase are capitalized and amortized to expense over the estimated useful life of the related applications, which is generally three years. | ||||||||||||
Although the Company’s development efforts are primarily focused on its hosted, cloud-based solution, the Company also incurs costs in connection with the development of certain of its software products licensed to customers on a perpetual basis, which are accounted for as costs of software to be sold, leased or otherwise marketed. Under this guidance, capitalization of software development costs begins upon the establishment of technological feasibility (based on a working model approach), subject to net realizable value considerations. To date, the dates between achieving technological feasibility and the general availability of such software have substantially coincided; therefore, software development costs for these products that would qualify for capitalization have been immaterial. Accordingly, the Company has not capitalized any software development costs related to these software products and has charged all such costs to research and development expense. | ||||||||||||
Goodwill | ||||||||||||
Goodwill represents the excess of the cost of an acquired entity over the net fair value of the identifiable assets acquired and liabilities assumed. Goodwill is not amortized, but rather is assessed for impairment at least annually. Additionally, the Company would also review the carrying value of goodwill whenever events or changes in circumstances indicated that its carrying amount may not be recoverable. The Company has concluded that it has one reporting unit for purposes of its annual goodwill impairment testing. To assess goodwill impairment, the first step is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step of the impairment test is not necessary. The Company performed its annual assessments on December 31, 2013 and 2012. The estimated fair value of the Company’s reporting unit exceeded its carrying amount, including goodwill, and as such, no goodwill impairment was recorded. | ||||||||||||
Long-Lived Assets | ||||||||||||
The Company evaluates the recoverability of its property and equipment and other long-lived assets, including acquired technology and customer relationships, when events change or circumstances indicate the carrying amount may not be recoverable. If such events or changes in circumstances are present, the undiscounted cash flow method is used to determine whether the asset is impaired. An impairment loss is recognized when, and to the extent, the net book value of such assets exceeds the fair value of the assets or the business to which the assets relate. Cash flows would include the estimated terminal value of the asset and exclude any interest charges. The discount rate utilized would be based on the Company’s best estimate of the related risks and return at the time the impairment assessment is made. There were no impairments of the Company’s long-lived assets during the years ended December 31, 2013 and 2012. | ||||||||||||
Sales and Marketing Expenses | ||||||||||||
Sales and marketing expenses consist primarily of costs, including salaries and sales commissions, of all personnel involved in the sales process. Sales and marketing expenses also include costs of advertising, trade shows, certain indirect costs and allocated fixed asset depreciation and facilities costs. Advertising costs are expensed as incurred. Advertising expenses totaled approximately $678, $522 and $435 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
Stock-Based Compensation | ||||||||||||
Stock-based payments to employees, including grants of employee stock options, are recognized in the consolidated statement of operations and comprehensive (loss) income based on their fair values. Stock-based compensation costs are measured at the grant date based on the fair value of the award and are recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. | ||||||||||||
Stock-based compensation costs are based on the fair value of the underlying option calculated using the Black-Scholes option-pricing model on the date of grant for stock options. Determining the appropriate fair value model and related assumptions requires judgment, including estimating stock price volatility, forfeiture rates and expected term. The Company uses the historical volatility of its stock price to calculate the expected volatility. Prior to the second half of 2013, the expected volatility rates were estimated based on the actual volatility of comparable public companies over the expected term. The expected term for the years ended December 31, 2013, 2012 and 2011, represents the average time that options that vest are expected to be outstanding based on the mid-point between the vesting date and the end of the contractual term of the award. The Company has not paid dividends and does not anticipate paying a cash dividend in the foreseeable future and, accordingly, uses an expected dividend yield of zero. The risk-free interest rate is based on the rate of U.S. Treasury securities with maturities consistent with the estimated expected term of the awards. | ||||||||||||
Foreign Currency and Operations | ||||||||||||
The reporting currency for all periods presented is the U.S. dollar. The functional currency for the Company’s foreign subsidiaries is generally their local currency. The translation of each subsidiary’s financial statements into U.S. dollars is performed for assets and liabilities using exchange rates in effect at the balance sheet date and for revenue and expense accounts using an average exchange rate during the period. The resulting translation adjustments are recognized in accumulated other comprehensive loss, a separate component of stockholders’ equity. Also included in accumulated other comprehensive loss is the foreign translation adjustment of $1,729 related to the intercompany balance with the Company’s Canadian subsidiary not expected to be settled in the foreseeable future. Realized foreign currency transaction gains and losses are included in other income (expense) in the consolidated statements of operations and comprehensive (loss) income. | ||||||||||||
(Loss) Income Per Share | ||||||||||||
Basic net (loss) income per share is computed by dividing net (loss) income by the weighted-average number of shares of common stock outstanding for the period. Outstanding unvested restricted stock purchased by employees is subject to repurchase by the Company and therefore is not included in the calculation of the weighted-average shares outstanding until vested. Diluted net income per share is computed giving effect to all potentially dilutive common stock, including options and restricted stock. The dilutive effect of outstanding awards is reflected in diluted earnings per share by application of the treasury stock method. | ||||||||||||
The following summarizes the calculation of basic and diluted net (loss) income per share: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Basic: | ||||||||||||
Net (loss) income | $ | -4,734 | $ | (1,176 | ) | $ | 2,834 | |||||
Weighted average common shares, basic | 23,044 | 22,285 | 21,673 | |||||||||
Basic net (loss) income per share | $ | -0.2 | $ | (0.05 | ) | $ | 0.13 | |||||
Diluted: | ||||||||||||
Net (loss) income | $ | -4,734 | $ | (1,176 | ) | $ | 2,834 | |||||
Weighted average common shares, basic | 23,044 | 22,285 | 21,673 | |||||||||
Dilutive effect of: | ||||||||||||
Options to purchase common stock | — | — | 455 | |||||||||
Nonvested shares of restricted stock | — | — | 113 | |||||||||
Weighted average common shares, diluted | 23,044 | 22,285 | 22,241 | |||||||||
Diluted net (loss) income per share | $ | -0.2 | $ | (0.05 | ) | $ | 0.13 | |||||
The following equity instruments have been excluded from diluted net (loss) income per common share as they would be anti-dilutive: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Common stock options | 77 | 276 | 280 | |||||||||
For the years ended December 2013 and 2012, the Company incurred net losses and, therefore, the effect of the Company’s outstanding stock options, nonvested restricted stock and common stock issuable pursuant to the employee stock purchase plan was not included in the calculation of diluted net loss per share as the effect would be anti-dilutive. For the years ended December 31, 2013 and 2012, diluted net loss per share excluded the impact of 430 and 384 outstanding stock options, respectively, and 28 and 43 nonvested shares of restricted stock. For the year ended December 31, 2013, diluted net loss per share excluded the impact of 18 shares of common stock issuable pursuant to the employee stock purchase plan. | ||||||||||||
Segment Data | ||||||||||||
The Company manages its operations on a consolidated basis for purposes of assessing performance and making operating decisions. Accordingly, the Company has determined that it has a single reporting segment. | ||||||||||||
Income Taxes | ||||||||||||
Deferred income taxes are provided using tax rates enacted for periods of expected reversal on all temporary differences. Temporary differences relate to differences between the book and tax basis of assets and liabilities, principally intangible assets, property and equipment, deferred subscription revenues, accruals and stock-based compensation. Valuation allowances are established to reduce deferred tax assets to the amount that will more likely than not be realized. To the extent that a determination is made to establish or adjust a valuation allowance, the expense or benefit is recorded in the period in which the determination is made. | ||||||||||||
Judgment is required in determining the provision for income taxes. Additionally, the income tax provision is based on calculations and assumptions that are subject to examination by many different tax authorities and to changes in tax law and rates in many jurisdictions. The Company would adjust its income tax provision in the period in which it becomes probable that actual results differ from management estimates. | ||||||||||||
The Company accounts for uncertain tax positions by recognizing and measuring tax benefits taken or expected to be taken on a tax return. A tax benefit from an uncertain position may be recognized only if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authority’s widely understood administrative practices and precedents. If the recognition threshold is met, only the portion of the tax benefit that is greater than fifty percent likely to be realized upon settlement with a taxing authority is recorded. The tax benefit that is not recorded is considered an unrecognized tax benefit. Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense. | ||||||||||||
Recent Accounting Pronouncements | ||||||||||||
In July 2013, the FASB issued a revised accounting standard, which clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This standard is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Retrospective application is permitted. The Company will adopt this standard in the first quarter of 2014 and does not expect the adoption to have a material impact on its financial statements. | ||||||||||||
In July 2012, the FASB issued a revised accounting standard, which is intended to reduce the cost and complexity of performing an impairment test for indefinite-lived intangible assets by providing entities an option to perform a “qualitative” assessment to determine whether further impairment testing is necessary. Specifically, an entity has the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. If an entity believes, as a result of its qualitative assessment, that it is more likely than not that fair value of an intangible asset is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. This standard is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company adopted this guidance on January 1, 2013. The adoption of this guidance did not have a material impact on the Company’s financial position, results of operations, or cash flows. |
Business_Combinations
Business Combinations | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Business Combinations | ' | |||||||
3. Business Combinations | ||||||||
CombineNet | ||||||||
On August 30, 2013, the Company acquired all of the outstanding capital stock of CombineNet, Inc. (“CombineNet”), a leading provider of advanced sourcing software. The acquisition of CombineNet expands the Company’s strategic sourcing footprint with an advanced, cloud-based tool that improves procurement decisions for spend categories that are typically beyond the capabilities of traditional eSourcing software. | ||||||||
The purchase price consisted of approximately $26,575 in cash and 820 shares of the Company’s common stock at a fair value of $17,055. The purchase price was subject to an adjustment based on the closing amount of working capital of CombineNet and accordingly as a result of this adjustment, the Company paid an additional $59 in cash and issued approximately 1 shares of common stock at a fair value of $38. The purchase price included $2,465 in cash and 76 shares of common stock that were deposited in escrow to satisfy potential indemnification claims. The Company incurred acquisition costs of approximately $431 during the year ended December 31, 2013, which are included in general and administrative expense in the consolidated statements of operations and comprehensive (loss) income. The acquisition was accounted for under the purchase method of accounting. The operating results of CombineNet are included in the accompanying consolidated financial statements from the date of acquisition. | ||||||||
The purchase consideration consisted of the following: | ||||||||
Cash | $ | 26,634 | ||||||
Fair value of common stock | 17,093 | |||||||
Total purchase consideration | 43,727 | |||||||
Cash acquired | 1,042 | |||||||
Net purchase consideration | $ | 42,685 | ||||||
The purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. Acquired technology, trademarks and the covenant not to compete are amortized on a straight-line basis over their respective estimated useful lives. Acquired customer relationships are amortized over a fifteen-year estimated life in a pattern consistent with which the economic benefit is expected to be realized. The excess of the purchase price over the net tangible and identifiable intangible assets acquired was recorded as goodwill, which is not deductible for tax purposes. This asset is attributed to a trained workforce and buyer-specific value resulting from synergies that are not included in the fair values of assets. | ||||||||
The allocation of the purchase price as of the acquisition date was as follows: | ||||||||
Estimated | Estimated | |||||||
Useful Life | Fair Value | |||||||
Accounts receivable | $ | 2,679 | ||||||
Prepaid expenses and other current assets | 334 | |||||||
Property and equipment | 464 | |||||||
Deferred project costs | 121 | |||||||
Deferred tax assets | 5,323 | |||||||
Other assets | 30 | |||||||
Covenant not to compete | 2 years | 100 | ||||||
Trademarks | 3 years | 300 | ||||||
Acquired technology | 7 years | 4,100 | ||||||
Customer relationships | 15 years | 13,000 | ||||||
Goodwill | 28,908 | |||||||
Accounts payable | (98 | ) | ||||||
Accrued expenses | (786 | ) | ||||||
Deferred tax liability | (7,350 | ) | ||||||
Deferred revenues | (4,440 | ) | ||||||
Total purchase consideration | $ | 42,685 | ||||||
The measurement period for the acquisition purchase accounting was closed December 31, 2013. | ||||||||
The following unaudited pro forma consolidated results of operations for the years ended December 31, 2013 and 2012 assume that the CombineNet acquisition occurred at the beginning of 2012. The unaudited pro forma information combines the historical results for the Company with the historical results for CombineNet for the same period. The unaudited pro forma financial information includes amortization of acquired intangible assets of $2,228 and $2,355 for the years ended December 31, 2013 and 2012, respectively, and includes the fair value adjustment for deferred revenue of $2,366 and $1,202 for the years ended December 31, 2013 and 2012, respectively. | ||||||||
The following unaudited pro forma information is not intended to be indicative of future operating results. | ||||||||
Years Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Pro forma revenue | $ | 100,688 | $ | 77,662 | ||||
Pro forma net loss | (3,536 | ) | (1,723 | ) | ||||
Pro forma net loss per share, basic | $ | (0.15 | ) | $ | (0.07 | ) | ||
Pro forma net loss per share, diluted | $ | (0.15 | ) | $ | (0.07 | ) | ||
Spend Radar | ||||||||
On October 1, 2012, the Company completed the acquisition of substantially all of the assets of Spend Radar LLC (“Spend Radar”), a leading provider of spend analysis solutions. The acquisition of Spend Radar added cloud-based software for cleansing and classifying spend data to drive and measure cost savings to the Company’s existing business automation solutions for spend management. | ||||||||
The purchase price consisted of $8,000 in cash and 113 shares of the Company’s common stock at a fair value of $2,087. The purchase price included $1,200 in cash and 17 shares of common stock that were deposited in escrow to satisfy potential indemnification claims. The purchase agreement also contained an earnout provision for up to $6,000 in cash and 85 shares of the Company’s common stock based on the successful achievement of certain performance targets and continued employment with the Company from the closing date to December 31, 2013. The performance conditions for Q4 2012 and Q1 2013 were met and the Company paid $2,400 and issued 34 shares of common stock on April 29, 2013. Additionally, the performance conditions for Q2, Q3 and Q4 2013 were met and the Company paid $3,600 on January 31, 2014 and issued 51 shares of common stock on February 3, 2014. The cash earn-out is being recognized as compensation expense in the consolidated statement of operations and comprehensive (loss) income in the period in which it is earned. The fair value of the shares under the stock earn-out is being recognized as stock-based compensation expense in the consolidated statement of operations and comprehensive (loss) income over the requisite service period of the award. During the years ended December 31, 2013 and 2012, the Company recognized compensation expense of $4,800 and $1,200, respectively, and stock-based compensation expense of $1,252 and $300, respectively, related to this earn-out arrangement. | ||||||||
The Company incurred acquisition costs of approximately $56 during the year ended December 31, 2012, which are included in general and administrative expense in the consolidated statements of operations and comprehensive (loss) income. The acquisition was accounted for under the purchase method of accounting. The operating results of Spend Radar are included in the accompanying consolidated financial statements from the date of acquisition. | ||||||||
The purchase consideration consisted of the following: | ||||||||
Cash | $ | 8,000 | ||||||
Fair value of common stock | 2,087 | |||||||
Total purchase consideration | 10,087 | |||||||
Cash acquired | 259 | |||||||
Net purchase consideration | $ | 9,828 | ||||||
The purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. Acquired technology, trademarks and the covenant not to compete are amortized on a straight-line basis over their respective estimated useful lives. Acquired customer relationships are amortized over a five-year estimated life in a pattern consistent with which the economic benefit is expected to be realized. The excess of the purchase price over the net tangible and identifiable intangible assets acquired was recorded as goodwill, which is deductible for tax purposes. This asset is attributed to a trained workforce and buyer-specific value resulting from synergies that are not included in the fair values of assets. | ||||||||
The allocation of the purchase price as of the acquisition date was as follows: | ||||||||
Estimated | Estimated | |||||||
Useful Life | Fair Value | |||||||
Accounts receivable | $ | 634 | ||||||
Prepaid expenses and other current assets | 100 | |||||||
Property and equipment | 147 | |||||||
Covenant not to compete | 5 years | 203 | ||||||
Trademarks | 5 years | 566 | ||||||
Acquired technology | 7 years | 2,693 | ||||||
Customer relationships | 5 years | 1,338 | ||||||
Goodwill | 5,682 | |||||||
Accrued expenses | (305 | ) | ||||||
Deferred revenues | (1,230 | ) | ||||||
Total purchase consideration | $ | 9,828 | ||||||
The measurement period for the acquisition purchase accounting was closed December 31, 2012. | ||||||||
Upside Software | ||||||||
On August 1, 2012, the Company completed the acquisition of substantially all of the assets of Upside Software, Inc. (“Upside”), a privately-owned Canadian corporation that provides contract lifecycle management solutions. The acquisition of Upside added a contract lifecycle management solution, which includes collaborative contract creation and maintenance technology, to the Company’s existing business automation solutions for spend management. | ||||||||
The purchase price consisted of $22,447 in cash. The purchase price included $2,800 in cash that was deposited in escrow to satisfy potential indemnification claims. The Company incurred acquisition costs of approximately $250 during the year ended December 31, 2012, which are included in general and administrative expense in the consolidated statements of operations and comprehensive (loss) income. The acquisition was accounted for under the purchase method of accounting. The operating results of Upside are included in the accompanying consolidated financial statements from the date of acquisition. | ||||||||
The purchase price was allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. Acquired technology, trademarks and the covenant not to compete are amortized on a straight-line basis over their respective estimated useful lives. Acquired customer relationships are amortized over a ten-year estimated life in a pattern consistent with which the economic benefit is expected to be realized. The excess of the purchase price over the net tangible and identifiable intangible assets acquired was recorded as goodwill, which is deductible for tax purposes. This asset is attributed to a trained workforce and buyer-specific value resulting from synergies that are not included in the fair values of assets. | ||||||||
The allocation of the purchase price as of the acquisition date was as follows: | ||||||||
Estimated | Estimated | |||||||
Useful Life | Fair Value | |||||||
Accounts receivable | $ | 2,096 | ||||||
Prepaid expenses and other current assets | 230 | |||||||
Property and equipment | 478 | |||||||
Covenant not to compete | 5 years | 30 | ||||||
Trademarks | 5 years | 263 | ||||||
Acquired technology | 7 years | 4,064 | ||||||
Customer relationships | 10 years | 3,594 | ||||||
Goodwill | 15,927 | |||||||
Accrued expenses | (530 | ) | ||||||
Deferred revenues | (3,705 | ) | ||||||
Total purchase consideration | $ | 22,447 | ||||||
The measurement period for the acquisition purchase accounting was closed December 31, 2012. | ||||||||
AECsoft | ||||||||
On December 21, 2010, the Company entered into a Stock Purchase Agreement to acquire all of the issued and outstanding shares of capital stock of AECsoft USA, Inc., a Texas corporation, and AEC Global (Shanghai) Co., Ltd., a Chinese corporation (collectively, “AECsoft”), which together are a leading provider of supplier management and sourcing technology. | ||||||||
The Company completed the acquisition of AECsoft, USA, Inc. on January 1, 2011 and the acquisition of AEC Global (Shanghai) Co., Ltd. on March 31, 2011. The acquisition of AECsoft added comprehensive supplier management, sourcing and compliance reporting to the Company’s existing business automation solutions for spend management. | ||||||||
The total purchase price of $13,795 consisted of $9,256 in cash and 351 shares of the Company’s common stock at a fair value of $4,539. The issuance of 25 of these shares, with an estimated fair value of $300, was subject to successful completion of certain performance targets under an earn-out arrangement with a former shareholder of AECsoft. Additionally, 300 shares of the Company’s common stock were issuable under an earn-out arrangement with the other former shareholders of AECsoft, upon the successful achievement of performance conditions over three fiscal years, including continued employment with the Company. The performance conditions for 2012 and 2011 were met in full, and the Company issued 122 shares of common stock on March 20, 2013 and April 14, 2012, respectively. The performance conditions for 2013 were met in full, and the Company issued 81 shares of common stock on February 5, 2014. The fair value of these shares is being recognized as stock-based compensation expense in the consolidated statement of operations and comprehensive (loss) income over the requisite service period of the award. During the years ended December 31, 2013, 2012 and 2011, the Company recognized stock-based compensation expense of $976, $1,466 and $1,466, respectively, related to this earn-out arrangement. | ||||||||
The Company incurred acquisition costs of approximately $134 during the year ended December 31, 2011, which are included in general and administrative expense in the consolidated statements of operations and comprehensive (loss) income. The acquisition was accounted for under the purchase method of accounting. The operating results of AECsoft are included in the accompanying consolidated financial statements from the date of acquisition. | ||||||||
On October 25, 2011, the Company made certain indemnification claims in the amount of $446 against the former shareholders of AECsoft pursuant to the Escrow Agreement with the former shareholders of AECsoft. The claims were agreed to by the former AECsoft shareholders and an escrow distribution to SciQuest consisting of $223 in cash and 18 shares of the Company’s common stock at a fair value of $223 was made. |
Cash_Equivalents_and_ShortTerm
Cash Equivalents and Short-Term Investments | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Cash Equivalents and Short-Term Investments | ' | |||||||||||||||
4. Cash Equivalents and Short-Term Investments | ||||||||||||||||
The components of cash equivalents and short-term investments at December 31, 2013 and 2012 are as follows: | ||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||
Cost | Fair Market | Cost | Fair Market | |||||||||||||
Value | Value | |||||||||||||||
Cash Equivalents: | ||||||||||||||||
Money market accounts | $ | 5,349 | $ | 5,349 | $ | 3,108 | $ | 3,108 | ||||||||
Short-term investments: | ||||||||||||||||
Variable rate demand notes | 15,105 | 15,105 | 29,740 | 29,740 | ||||||||||||
Total | $ | 20,454 | $ | 20,454 | $ | 32,848 | $ | 32,848 | ||||||||
There were no unrealized gains or losses as of December 31, 2013 or 2012. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
5. Fair Value Measurements | ||||||||||||||||
Under GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., “the exit price”) in an orderly transaction between market participants at the measurement date. GAAP also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are obtained from independent sources and can be validated by a third party, whereas unobservable inputs reflect assumptions regarding what a third party would use in pricing an asset or liability. The fair value hierarchy is broken down into three levels based on the reliability of inputs as follows: | ||||||||||||||||
— | Level 1 — Valuations based on quoted prices in active markets for identical instruments that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. | |||||||||||||||
— | Level 2 — Valuations based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments, and model-derived valuations in which all significant input and significant value drivers are observable in active markets. | |||||||||||||||
— | Level 3 — Valuations based on inputs that are unobservable and significant to the overall fair value measurement. | |||||||||||||||
The financial assets for which the Company performs recurring fair value remeasurements are cash equivalents and short-term investments. | ||||||||||||||||
As of December 31, 2013 and 2012, the Company had cash equivalents of $5,349 and $3,108, respectively, which consist of money market accounts. As of December 31, 2013 and 2012, the Company had short-term investments of $15,105 and $29,740, respectively, which consist of variable rate demand notes that are invested in corporate and municipal bonds. These variable rate demand notes have final maturities between 2017 and 2042, but are puttable by the Company at any time with seven days notice. These cash equivalents and short-term investments are classified within Level 1 of the fair value hierarchy since they are valued using quoted market prices. As of December 31, 2013 and 2012, the Company did not have any financial assets or liabilities with observable inputs not quoted on active markets (Level 2), or without observable market values that would require a high level of judgment to determine fair value (Level 3). | ||||||||||||||||
The fair value measurements of the Company’s financial assets at December 31, 2013 are as follows: | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Cash Equivalents | $ | 5,349 | $ | 5,349 | $ | — | $ | — | ||||||||
Short-term investments | 15,105 | 15,105 | — | — | ||||||||||||
Total | $ | 20,454 | $ | 20,454 | $ | — | $ | — | ||||||||
The fair value measurements of the Company’s financial assets at December 31, 2012 are as follows: | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Cash Equivalents | $ | 3,108 | $ | 3,108 | $ | — | $ | — | ||||||||
Short-term investments | 29,740 | 29,740 | — | — | ||||||||||||
Total | $ | 32,848 | $ | 32,848 | $ | — | $ | — | ||||||||
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property and Equipment | ' | |||||||
6. Property and Equipment | ||||||||
Property and equipment consist of the following as of December 31, 2013 and 2012: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Furniture and fixtures | $ | 1,284 | $ | 1,200 | ||||
Computer software and equipment | 17,036 | 11,230 | ||||||
Leasehold improvements | 715 | 681 | ||||||
Total costs | 19,035 | 13,111 | ||||||
Less accumulated depreciation and amortization | -9,007 | (6,018 | ) | |||||
Property and equipment, net | $ | 10,028 | $ | 7,093 | ||||
Depreciation expense related to property and equipment (excluding capitalized internal-use software) for the years ended December 31, 2013, 2012 and 2011 was $2,159, $1,532 and $719, respectively. The Company disposed of fully-depreciated computer software and equipment with a cost of $996 and $237 during the years ended December 31, 2013 and 2011, respectively. During 2012, the Company disposed of computer software and equipment with an original cost of $1,036 and accumulated depreciation of $998 . The Company recognized a loss in the accompanying consolidated statements of operations and comprehensive (loss) income of $38 during the year ended December 31, 2012 related to these disposals. | ||||||||
Computer software and equipment includes capitalized software development costs incurred during development of the Company’s cloud-based solution. The Company capitalized software development costs of $3,623 and $3,113 during the years ended December 31, 2013 and 2012, respectively. Net capitalized software development costs totaled $5,349 and $3,567 as of December 31, 2013 and 2012, respectively. Amortization expense for the years ended December 31, 2013, 2012 and 2011 related to capitalized software development costs was $1,842, $928 and $390, respectively, which is classified within cost of revenues in the accompanying consolidated statements of operations and comprehensive (loss) income. |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Other Intangible Assets | ' | |||||||||||||||
7. Goodwill and Other Intangible Assets | ||||||||||||||||
The Company acquired goodwill and certain identifiable intangible assets as part of the acquisitions in August 2013, October 2012, August 2012 and January 2011 and the going private transaction in July 2004. | ||||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 were as follows: | ||||||||||||||||
Balance as of December 31, 2011 | $ | 15,719 | ||||||||||||||
Goodwill acquired | 21,609 | |||||||||||||||
Foreign currency translation | (33 | ) | ||||||||||||||
Balance as of December 31, 2012 | 37,295 | |||||||||||||||
Goodwill acquired | 28,908 | |||||||||||||||
Foreign currency translation | (923 | ) | ||||||||||||||
Balance at December 31, 2013 | $ | 65,280 | ||||||||||||||
As the functional currency of the Company’s foreign subsidiary, where goodwill is recorded, is its local currency, there are related foreign currency translation adjustments. The foreign currency is translated into U.S. dollars using the exchange rate in effect at period end. Adjustments are included in other comprehensive (loss) income. | ||||||||||||||||
A summary of intangible assets as of December 31, 2013 and 2012 follows: | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Weighted Average | Gross Carrying | Accumulated | Net Carrying | |||||||||||||
Amortization | Amount | Amortization | Amount | |||||||||||||
Period | ||||||||||||||||
Acquired technology | 7.0 years | $ | 19,889 | $ | (10,070 | ) | $ | 9,819 | ||||||||
Customer relationships | 12.1 years | 27,117 | (9,013 | ) | 18,104 | |||||||||||
Covenant not to compete | 4.2 years | 382 | (112 | ) | 270 | |||||||||||
Acquired trademarks | 4.5 years | 1,113 | (246 | ) | 867 | |||||||||||
Trademarks | 430 | — | 430 | |||||||||||||
Total | $ | 48,931 | $ | (19,441 | ) | $ | 29,490 | |||||||||
December 31, 2012 | ||||||||||||||||
Weighted Average | Gross Carrying | Accumulated | Net Carrying | |||||||||||||
Amortization | Amount | Amortization | Amount | |||||||||||||
Period | ||||||||||||||||
Acquired technology | 7.0 years | $ | 16,024 | $ | (8,771 | ) | $ | 7,253 | ||||||||
Customer relationships | 9.5 years | 14,325 | (6,692 | ) | 7,633 | |||||||||||
Covenant not to compete | 5.0 years | 284 | (33 | ) | 251 | |||||||||||
Acquired trademarks | 5.0 years | 828 | (49 | ) | 779 | |||||||||||
Trademarks | 430 | — | 430 | |||||||||||||
Total | $ | 31,891 | $ | (15,545 | ) | $ | 16,346 | |||||||||
As the functional currency of the Company’s foreign subsidiary, where certain intangible assets are recorded, is its local currency, there are related foreign currency translation adjustments. The foreign currency is translated into U.S. dollars using the exchange rate in effect at period end, with any adjustment included in other comprehensive (loss) income. | ||||||||||||||||
Amortization expense of intangible assets was $3,962, $1,821 and $1,033 for the years ended December 31, 2013, 2012 and 2011, respectively, of which $1,580, $553 and $168 is recorded in cost of revenues in the accompanying consolidated statements of operations and comprehensive (loss) income for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||||||
The Company estimates the following amortization expense related to its intangible assets for the years ended December 31: | ||||||||||||||||
2014 | $ | 5,141 | ||||||||||||||
2015 | 4,675 | |||||||||||||||
2016 | 4,252 | |||||||||||||||
2017 | 3,794 | |||||||||||||||
2018 | 3,181 | |||||||||||||||
Thereafter | 8,017 | |||||||||||||||
$ | 29,060 | |||||||||||||||
Accrued_Liabilities
Accrued Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accrued Liabilities | ' | |||||||
8. Accrued Liabilities | ||||||||
Current accrued liabilities are comprised of the following as of December 31, 2013 and 2012: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Accrued compensation | $ | 9,902 | $ | 6,192 | ||||
Accrued consulting and professional services | 410 | 367 | ||||||
Accrued rent | 457 | 655 | ||||||
Customer deposits | 292 | 362 | ||||||
Other | 2,704 | 1,195 | ||||||
Total | $ | 13,765 | $ | 8,771 | ||||
Debt
Debt | 12 Months Ended |
Dec. 31, 2013 | |
Debt | ' |
9. Debt | |
On November 2, 2012, the Company established a $30,000 revolving credit facility which will be available for use until November 2, 2015. The revolving credit facility will be used for general corporate purposes. The facility consists of a $20,000 securities secured revolving credit facility and a $10,000 receivables secured revolving credit facility. The securities secured revolving credit facility and the receivables secured revolving credit facility bear interest equal to the BBA LIBOR Daily Floating Rate plus 0.75% and the BBA LIBOR Daily Floating Rate plus 1.50%, respectively. In addition, the Company pays a quarterly fee equal to 0.10% on any unused funds under the facility. As collateral for extension of credit under the facility, the Company and a domestic subsidiary granted security interests in substantially all of their assets, and the Company pledged the stock of a domestic subsidiary and 66% of the shares of one of its foreign subsidiaries. As of December 31, 2013 and 2012, the Company had $0 outstanding under the revolving credit facility. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Stockholders' Equity | ' | ||||||||||||||||||||
10. Stockholders’ Equity | |||||||||||||||||||||
Preferred Stock | |||||||||||||||||||||
The Company is authorized to issue up to 5,000 shares of $0.001 par value preferred stock, of which 222 shares are designated as Series A redeemable preferred stock. The Company’s Board of Directors has the authority to issue up to 4,778 shares of preferred stock in one or more series and to fix the designations, rights, preferences and privileges and any qualifications, limitations or restrictions of the shares of each such series of preferred stock, including dividend rights and rates, conversion rights, voting rights, terms of redemption including price and sinking fund provisions, liquidation preferences and number of shares constituting any series or the designation of that series. As of December 31, 2013 and 2012, no shares of preferred stock were issued or outstanding. | |||||||||||||||||||||
Stock Incentive Plan | |||||||||||||||||||||
The Company’s 2013 Stock Incentive Plan (the “Plan”) allows the Company to grant common stock options, stock appreciation rights, restricted stock units and restricted stock awards to employees, board members and others who contribute materially to the success of the Company. The Company reserved 3,500 shares of its common stock for issuance under the Plan. Additionally, per the terms of the Plan, shares of common stock previously reserved for issuance under the 2004 Stock Incentive Plan (the “Prior Plan”) as well as shares reserved for outstanding awards under the Prior Plan for which the awards are canceled, forfeited, repurchased or otherwise result in common stock not being issued will be added to the number of shares available for issuance under the Plan. Restricted stock units and restricted stock awards that are granted shall count towards the total number of shares reserved for issuance under the Plan as 1.65 shares. As of December 31, 2013, 3,989 shares of common stock were available for issuance under the Plan. | |||||||||||||||||||||
The following table summarizes the number of shares outstanding and the number of shares available for future grant under the stock incentive plan at December 31, 2013: | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Number of shares reserved under the 2013 Plan | 3,500 | ||||||||||||||||||||
Number of shares remaining for future grants transferred from Prior Plan | 838 | ||||||||||||||||||||
Number of stock options outstanding under the 2013 Plan | (349 | ) | |||||||||||||||||||
Weighted average exercise price | $ | 23.82 | |||||||||||||||||||
Weighted average term (in years) | 9.6 | ||||||||||||||||||||
Number of shares remaining for future grants | |||||||||||||||||||||
SciQuest, Inc. 2013 Stock Incentive Plan | 3,989 | ||||||||||||||||||||
The Company’s Board of Directors approves the terms of stock options granted. Individual option grants generally become exercisable ratably over a period of four years from the grant date. The contractual term of the options is approximately ten years from the date of grant. | |||||||||||||||||||||
The Company recognizes compensation expense associated with restricted stock and common stock options based on the grant-date fair value of the award on a straight-line basis over the requisite service period of the individual grantees, which generally equals the vesting period. | |||||||||||||||||||||
Restricted Stock | |||||||||||||||||||||
The Company issues restricted stock units to certain employees and non-employee directors. Restricted stock units differ from restricted stock awards in that restricted stock units represent the right to receive shares of common stock once such shares are vested and issuable in accordance with the terms of the restricted stock units. Once issued, such shares are not subject to further restrictions. Stock-based compensation expense related to these restricted stock units is recognized in the consolidated statements of operations and comprehensive (loss) income based on the fair value of these awards, which is the grant date market value of the Company’s common stock. Stock-based compensation expense of $500 and $256 was recorded during the years ended December 31, 2013 and 2012, respectively, in connection with these restricted stock units. The total unrecognized compensation cost related to these awards is approximately $551 at December 31, 2013. This amount is expected to be recognized over a weighted-average period of 2.7 years. | |||||||||||||||||||||
The following summarizes the activity of restricted stock units for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||
Number of | Weighted- | ||||||||||||||||||||
Shares | Average Grant | ||||||||||||||||||||
Date Fair Value | |||||||||||||||||||||
Balance as of December 31, 2011 | — | — | |||||||||||||||||||
Issued | 28 | $ | 15.67 | ||||||||||||||||||
Vested | — | — | |||||||||||||||||||
Nonvested as of December 31, 2012 | 28 | 15.67 | |||||||||||||||||||
Issued | 53 | 17.87 | |||||||||||||||||||
Vested | (28 | ) | 15.67 | ||||||||||||||||||
Forfeited | (4 | ) | 16.3 | ||||||||||||||||||
Nonvested as of December 31, 2013 | 49 | $ | 18.02 | ||||||||||||||||||
Additionally, the Company previously issued restricted shares of its common stock to certain employees under the Prior Plan. | |||||||||||||||||||||
These awards are recognized in the consolidated statements of operations and comprehensive (loss) income based on their fair values. Stock-based compensation expense of $41, $110 and $222 was recorded during the years ended December 31, 2013, 2012 and 2011, respectively, in connection with these restricted stock awards. | |||||||||||||||||||||
The following summarizes the activity of nonvested shares of restricted stock for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||
Number of | Weighted- | ||||||||||||||||||||
Shares | Average Grant | ||||||||||||||||||||
Date Fair Value | |||||||||||||||||||||
Nonvested as of December 31, 2010 | 174 | $ | 1.62 | ||||||||||||||||||
Vested | -82 | 1.7 | |||||||||||||||||||
Repurchased | -28 | 1.58 | |||||||||||||||||||
Nonvested as of December 31, 2011 | 64 | 1.66 | |||||||||||||||||||
Vested | (47 | ) | 1.69 | ||||||||||||||||||
Nonvested as of December 31, 2012 | 17 | 1.58 | |||||||||||||||||||
Vested | (15 | ) | 1.58 | ||||||||||||||||||
Repurchased | (2 | ) | 1.58 | ||||||||||||||||||
Nonvested as of December 31, 2013 | — | $ | — | ||||||||||||||||||
During the years ended December 31, 2013 and 2011, the Company repurchased 2 and 28 shares of unvested restricted stock for $2 and $28, respectively, in connection with the termination of one employee in each of the years. | |||||||||||||||||||||
Stock Options | |||||||||||||||||||||
The Company also issues common stock options. The following summarizes stock option activity for the year ended December 31, 2013: | |||||||||||||||||||||
Number of Options | Weighted- | Weighted- | Aggregate | ||||||||||||||||||
Outstanding | Average | Average | Intrinsic Value | ||||||||||||||||||
Exercise Price | Remaining | as of | |||||||||||||||||||
Contractual | December 31, | ||||||||||||||||||||
Term (In Years) | 2013 | ||||||||||||||||||||
Balance as of December 31, 2012 | 1,553 | $ | 11.5 | 8.1 | $ | 6,866 | |||||||||||||||
Options granted | 798 | 20.46 | |||||||||||||||||||
Options exercised | 241 | 8.73 | |||||||||||||||||||
Options canceled | 143 | 15.09 | |||||||||||||||||||
Balance as of December 31, 2013 | 1,967 | $ | 15.22 | 8 | $ | 26,168 | |||||||||||||||
Vested and expected to vest at December 31, 2013 | 1,747 | $ | 14.81 | 7.9 | $ | 25,071 | |||||||||||||||
Exercisable as of December 31, 2013 | 866 | $ | 11.07 | 7 | $ | 15,100 | |||||||||||||||
The aggregate intrinsic value in the table above represents the difference between the exercise price of the underlying awards and the estimated fair value of the Company’s common stock at December 31, 2013 multiplied by the number of shares that would have been received by the option holders had all option holders exercised their options on December 31, 2013. The aggregate intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $3,295, $1,774 and $1,900, respectively. | |||||||||||||||||||||
The total unrecognized compensation cost related to outstanding stock options is $10,527 at December 31, 2013. This amount is expected to be recognized over a weighted-average period of 2.84 years. | |||||||||||||||||||||
The following table summarizes information about stock options outstanding and exercisable at December 31, 2013: | |||||||||||||||||||||
Options Outstanding at December 31, 2013 | Options Exercisable at | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Range of Exercise Price | Number | Weighted- | Weighted- | Number | Weighted- | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Remaining | Exercise Price | Exercise Price | |||||||||||||||||||
Contractual Life | |||||||||||||||||||||
(Yrs.) | |||||||||||||||||||||
$0.08 –$0.14 | 29 | 1.4 | $ | 0.09 | 29 | $ | 0.09 | ||||||||||||||
$0.14 –$1.90 | 3 | 4.6 | 1.36 | 3 | 1.36 | ||||||||||||||||
$2.04 –$8.18 | 248 | 6 | 3.53 | 240 | 3.47 | ||||||||||||||||
$11.45 –$17.41 | 1,230 | 8.1 | 14.9 | 577 | 14.51 | ||||||||||||||||
$17.50 –$27.64 | 403 | 9.4 | 22.78 | 17 | 22.15 | ||||||||||||||||
$28.29 –$29.14 | 54 | 10 | 28.68 | — | — | ||||||||||||||||
Total | 1,967 | 8 | $ | 15.22 | 866 | $ | 11.07 | ||||||||||||||
The fair value of common stock options for employees and non-employees is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions used: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Estimated dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||
Expected stock price volatility | 46.42–55.00 | % | 60.00–80.00 | % | 80.00–90.00 | % | |||||||||||||||
Weighted-average risk-free interest rate | 0.9%–2.0 | % | 0.8%–1.5 | % | 1.1%–2.7 | % | |||||||||||||||
Expected life of options (in years) | 6.25 | 6.25 | 6.25 | ||||||||||||||||||
Stock-based compensation expense of $3,890, $2,925 and $2,261 was recorded during the years ended December 31, 2013, 2012 and 2011, respectively, related to the Company’s outstanding stock options. The weighted average grant date fair value per share for stock options granted in 2013, 2012 and 2011 was $10.34, $9.22 and $10.68, respectively. The aggregate fair value of stock options that vested during the years ended December 31, 2013, 2012 and 2011 was $3,481, $3,408 and $1,581, respectively. | |||||||||||||||||||||
As discussed in Note 3, the Company recognized stock-based compensation expense of $1,252 and $300 in the accompanying consolidated statement of operations and comprehensive (loss) income for the years ended December 31, 2013 and 2012, respectively, related to the earn-out arrangement associated with the Spend Radar acquisition. In addition, the Company recognized stock-based compensation expense of $976, $1,466 and $1,466 in the accompanying consolidated statements of operations and comprehensive (loss) income for the years ended December 31, 2013, 2012 and 2011, respectively, related to the earn-out arrangement with certain former shareholders of AECsoft. | |||||||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||||||
The Company adopted an Employee Stock Purchase Plan (the “Purchase Plan”) effective June 1, 2012. Eligible employees can contribute up to 10% of their gross earnings for each pay period, up to a maximum of $25 for any calendar year. The initial offering period that commenced on June 1, 2012 was a period of 12 months, and thereafter six month offering periods begin on December 1 and June 1 of each year. During the offering period eligible employees may elect to purchase shares of the Company’s common stock according to the terms of the offering. The per share purchase price is equal to the lessor of 85% of the fair market value of the Company’s common stock on the offering date or 85% of the fair market value of the Company’s common stock on the purchase date. As of December 31, 2013, 943 shares of common stock were available for issuance to participating employees under the Purchase Plan. During the years ended December 31, 2013 and 2012, the Company recognized stock-based compensation expense of $273 and $140, respectively, related to the Purchase Plan. | |||||||||||||||||||||
The fair value of stock purchase rights granted under the Purchase Plan is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions used: | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Estimated dividend yield | 0 | % | 0 | % | |||||||||||||||||
Expected stock price volatility | 46.69–52.22 | % | 57.3 | 0% | |||||||||||||||||
Weighted-average risk-free interest rate | 0.07%–0.11 | % | 0.13% – 0.17 | % | |||||||||||||||||
Expected life of options (in years) | 0.5 | 0.5–1.0 | |||||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Taxes | ' | |||||||||||
11. Income Taxes | ||||||||||||
The following are the components of (loss) income before income taxes: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Domestic | $ | (5,110 | ) | $ | (940 | ) | $ | 5,695 | ||||
Foreign | — | (133 | ) | (81 | ) | |||||||
Total | $ | (5,110 | ) | $ | (1,073 | ) | $ | 5,614 | ||||
The provision for (benefit from) income taxes in the accompanying consolidated statements of operations and comprehensive (loss) income for the years ended December 31, 2013, 2012 and 2011 consisted of the following: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current | ||||||||||||
Federal | $ | 14 | $ | 89 | $ | 100 | ||||||
Foreign | — | — | — | |||||||||
State | 45 | 69 | 199 | |||||||||
59 | 158 | 299 | ||||||||||
Deferred | ||||||||||||
Federal | (1,825 | ) | 76 | 2,240 | ||||||||
Foreign | — | — | — | |||||||||
State | 1,390 | (131 | ) | 241 | ||||||||
(435 | ) | (55 | ) | 2,481 | ||||||||
Income tax (benefit) expense | $ | (376 | ) | $ | 103 | $ | 2,780 | |||||
A reconciliation of the statutory income tax rate to the effective income tax rate is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
US federal statutory rate | 34 | % | 34 | % | 34 | % | ||||||
State taxes (net of federal benefit) | 3 | 6 | 5 | |||||||||
Foreign rate differential | 0 | (18 | ) | 0 | ||||||||
Branch loss benefit at statutory rate | 0 | 95 | 0 | |||||||||
Stock compensation expense | (7 | ) | 2 | 0 | ||||||||
Stock acquisition — additional purchase price | 0 | (51 | ) | 8 | ||||||||
Nondeductible meals and entertainment | (1 | ) | (4 | ) | 2 | |||||||
Research and development tax credits | 10 | 0 | (1 | ) | ||||||||
Expiration of state loss carryforwards | 0 | (168 | ) | 0 | ||||||||
Expiration of federal loss carryforwards | 0 | (57 | ) | 0 | ||||||||
Change in valuation allowance | (12 | ) | 141 | 0 | ||||||||
Payable reclass | 0 | 3 | 0 | |||||||||
Change in state effective tax rate | (19 | ) | 0 | 0 | ||||||||
Provision to return adjustments | 0 | 6 | 0 | |||||||||
Acquisition costs | (1 | ) | 0 | 0 | ||||||||
Other | 0 | 1 | 2 | |||||||||
Effective tax rate | 7 | % | (10 | )% | 50 | % | ||||||
The Company reevaluated its federal and state loss carryforwards during 2012 and determined that various losses would never be utilized based on the section 382 limit. Therefore, the Company reduced its deferred tax asset related to these losses. These deferred tax assets previously had a full valuation provided against them. The Company had no tax expense(benefit) related to the removal of the NOL’s. In 2013, certain state net operating loss carryforwards were reevaluated based on current activity and it was determined that an additional valuation allowance was required, resulting in tax expense in the current period of $624. | ||||||||||||
During 2013, the Company acquired the stock of CombineNet in a tax-free reorganization under IRC Sec. 368(a)(2)(d). The acquisition resulted in a net deferred tax liability of $2,027 being recorded as part of purchase accounting, with a corresponding adjustment to goodwill. There was no impact to income tax expense. | ||||||||||||
The tax effects of temporary differences that give rise to significant portions of the net deferred tax asset at December 31, 2013 and 2012 are as follows: | ||||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Compensation accruals | $ | 990 | $ | 352 | ||||||||
Other accruals | 319 | 34 | ||||||||||
Gross current deferred tax asset | 1,309 | 386 | ||||||||||
Less: valuation allowance for current deferred tax asset | -1,019 | (309 | ) | |||||||||
Net current deferred tax asset | 290 | 77 | ||||||||||
Net operating loss carryforwards | 79,632 | 65,145 | ||||||||||
Foreign loss carryforward | 2,203 | 896 | ||||||||||
Research and development tax credits | 2,000 | 1,491 | ||||||||||
Deferred revenues | 5,740 | 5,514 | ||||||||||
Stock compensation | 2,288 | 1,242 | ||||||||||
Capitalized earn-out payments | 1,847 | 565 | ||||||||||
Other credits | 406 | 392 | ||||||||||
Other | 496 | 214 | ||||||||||
Gross non-current deferred tax asset | 94,612 | 75,459 | ||||||||||
Less: valuation allowance for non-current deferred tax asset | -72,640 | (58,701 | ) | |||||||||
Net non-current deferred tax asset | 21,972 | 16,758 | ||||||||||
Total deferred tax assets | 22,262 | 16,835 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation and amortization | 814 | 786 | ||||||||||
Customer contracts | 34 | 81 | ||||||||||
Trade names | 159 | 162 | ||||||||||
Capitalized software costs | 1,942 | 1,333 | ||||||||||
Identifiable intangibles | 8,138 | 1,700 | ||||||||||
Other | — | 14 | ||||||||||
Total deferred tax liabilities | 11,087 | 4,076 | ||||||||||
Net deferred tax assets | $ | 11,175 | $ | 12,759 | ||||||||
As of December 31, 2013, the Company has federal and state net operating loss carryforwards of approximately $215,580 and $134,253, respectively, which will begin to expire in 2018 for federal tax purposes and began to expire in 2009 for state tax purposes. Furthermore, the Company has approximately $406 of alternative minimum tax credit carryforwards and $3,025 of research and development credit carryforwards. The research and development credits began to expire in 2013. The Tax Reform Act of 1986 contains provisions that limit the ability of companies to utilize net operating loss carryforwards and tax credit carryovers in the case of certain events including significant changes in ownership. These limitations may significantly impact the amount of net operating loss and tax credit carryovers available to offset future taxable income. As of December 31, 2013, the Company believes that federal and state net operating loss carryforwards in the amounts of $19,042 and $66,628, respectively, will be available for future utilization to the extent of future income. The Company has provided a valuation allowance for the remaining federal and state losses of $196,538 and $67,625, respectively, due to uncertainty regarding the Company’s ability to fully realize these assets due to the limitations discussed above. | ||||||||||||
At December 31, 2013 and 2012, unrecognized tax benefits of $1,024 and $515, respectively, net of federal tax benefits, would have increased the Company’s deferred tax assets with a corresponding increase to the valuation allowance if recognized. This amount, if recognized, would impact the effective tax rate. The Company does not believe there will be any material changes in its unrecognized tax positions over the next twelve months. | ||||||||||||
The following is a tabular reconciliation of the Company’s change in uncertain tax positions: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Beginning balance | $ | 515 | $ | 515 | $ | 438 | ||||||
Increases related to current year tax position | 326 | — | — | |||||||||
Increases related to prior year tax positions | 183 | — | 77 | |||||||||
Ending balance | $ | 1,024 | $ | 515 | $ | 515 | ||||||
The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax positions as a component of income tax expense. As of December 31, 2013 and 2012, the Company did not have any accrued interest or penalties associated with any unrecognized tax positions, and there were no such interest or penalties recognized during the years ended December 31, 2013, 2012 or 2011. The Company’s open tax years that are subject to federal examination are 2010 through 2012. All prior years with applicable net operating losses will remain open to the extent of the amount of the net operating loss generated in that specific year. During 2013, the state of North Carolina completed their audit of the Company’s corporate income and franchise tax returns for 2009 through 2011. No other state authorities have commenced or announced their intention to commence an income tax examination. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies | ' | |||
12. Commitments and Contingencies | ||||
Operating Leases | ||||
The Company leases office space under non-cancelable operating leases. The Company did not have any capital lease obligations as of December 31, 2013 or 2012. The Company is committed to a lease agreement for office space for its headquarters through January 2017. On July 7, 2013, the Company entered into a lease agreement for the lease of office space to replace the Company’s current corporate headquarters. The leased premise is under construction with a target completion date of August 1, 2014. The lease term will commence upon the later of August 1, 2014 or substantial completion of the leased premises and will extend for 120 months thereafter. The Company anticipates subleasing its current office space once the move to the new corporate headquarters is completed. The Company is also committed to leases through December 2014, February 2016, May 2016, July 2018 and March 2019. Future minimum lease payments required under leases in effect as of December 31, 2013 are as follows: | ||||
Operating Leases | ||||
2014 | $ | 2,255 | ||
2015 | 3,621 | |||
2016 | 3,527 | |||
2017 | 2,207 | |||
2018 | 2,082 | |||
Thereafter | 11,394 | |||
Total future minimum lease payments | $ | 25,086 | ||
Rent expense is calculated on a straight-line basis over the term of the lease. Rent expense recognized under operating leases totaled approximately $2,378, $1,777 and $1,023 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||
Legal Contingencies | ||||
From time to time, the Company is subject to legal proceedings and claims that arise in the ordinary course of business. The Company records an accrual for a contingency when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company is not currently subject to any material legal proceedings. | ||||
On January 31, 2012, a lawsuit alleging patent infringement was filed against the Company and certain customers and suppliers that participate in the SciQuest Supplier Network. On March 31, 2012, SciQuest, Inc. entered into a settlement agreement with the plaintiff. The settlement amount, which did not have a material adverse effect on the Company’s financial position, results of operations, or cash flows, is recorded in operating expenses in the accompanying consolidated statement of operations and comprehensive (loss) income for the year ended December 31, 2012. | ||||
Warranties and Indemnification | ||||
The Company’s hosting service is typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable under normal use and circumstances. The Company’s arrangements also include certain provisions for indemnifying customers against liabilities if its products or services infringe a third party’s intellectual property rights. The Company to date has not incurred costs to settle claims or pay awards under these indemnification obligations. The Company accounts for these indemnity obligations as contingencies and records a liability for these obligations when a loss is probable and reasonably estimable. To date, the Company has not incurred any material costs as a result of these indemnifications and has not accrued any liabilities related to the obligations in the accompanying consolidated financial statements. | ||||
The Company enters into service level agreements with its cloud-based solution customers warranting certain levels of uptime reliability. To date, the Company has not incurred any material costs and has not accrued any liabilities related to such obligations. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefit Plan | ' |
13. Employee Benefit Plan | |
The Company offers various defined contribution plans covering eligible employees in the United States and foreign locations. The total expense associated with the contribution plans during the years ended December 31, 2013, 2012 and 2011, was $892, $628 and $454, respectively. |
Quarterly_Results_of_Operation
Quarterly Results of Operations (unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Results of Operations (unaudited) | ' | |||||||||||||||
14. Quarterly Results of Operations (unaudited) | ||||||||||||||||
The following is a summary of the Company’s quarterly results of operations for the years ended December 31, 2013 and 2012: | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||
2013 | 2013 | 2013 | 2013 | |||||||||||||
Revenues | $ | 20,665 | $ | 21,205 | $ | 22,513 | $ | 25,848 | ||||||||
Gross profit | 14,051 | 14,636 | 15,754 | 18,379 | ||||||||||||
Net loss | (612 | ) | (520 | ) | (2,382 | ) | (1,220 | ) | ||||||||
Net loss per share: | ||||||||||||||||
Basic | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.10 | ) | $ | (0.05 | ) | ||||
Diluted | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.10 | ) | $ | (0.05 | ) | ||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||
2012 | 2012 | 2012 | 2012 | |||||||||||||
Revenues | $ | 14,408 | $ | 15,180 | $ | 17,173 | $ | 19,704 | ||||||||
Gross profit | 10,231 | 10,771 | 11,830 | 13,363 | ||||||||||||
Net income (loss) | 153 | 400 | 713 | (2,442 | ) | |||||||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.01 | $ | 0.02 | $ | 0.03 | $ | (0.11 | ) | |||||||
Diluted | $ | 0.01 | $ | 0.02 | $ | 0.03 | $ | (0.11 | ) | |||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events | ' |
15. Subsequent Events | |
Spend Radar | |
The Company paid $3,600 on January 31, 2014 and issued 51 shares of common stock on February 3, 2014 in connection with the Spend Radar acquisition earn-out provision (refer to Note 3, Business Combinations). | |
AECsoft | |
The Company issued 81 shares of common stock on February 5, 2014 in connection with the AECsoft acquisition earn-out provision (refer to Note 3, Business Combinations). | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Basis of Presentation | ' | |||||||||||
Basis of Presentation | ||||||||||||
The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). | ||||||||||||
Principles of Consolidation | ' | |||||||||||
Principles of Consolidation | ||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||||
Use of Estimates | ' | |||||||||||
Use of Estimates | ||||||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. | ||||||||||||
Revenue Recognition | ' | |||||||||||
Revenue Recognition | ||||||||||||
The Company primarily derives its revenues from subscription fees and related services, permitting customers to access and utilize the Company’s cloud-based business automation solutions for spend management. Customers may also purchase a perpetual license for certain software products. Revenue is recognized when there is persuasive evidence of an arrangement, the service has been provided or delivered to the customer, the collection of the fee is probable and the amount of the fee to be paid by the customer is fixed or determinable. The Company’s arrangements do not contain general rights of return. | ||||||||||||
Because customers do not have the right to take possession of the Software-as-a-Service (“SaaS”) based software, these arrangements are considered service contracts and are not within the scope of Industry Topic 985, Software. The Company’s contractual agreements generally contain multiple service elements and deliverables, for which we follow the guidance provided in Accounting Standards Codification (“ASC”) 605-25, Revenue Recognition for Multiple-Element Arrangements. These elements include access to the hosted software, implementation or data classification services and, on a limited basis, perpetual licenses for certain software products and related maintenance and support. The Company evaluates each element in a multiple-element arrangement to determine whether it represents a separate unit of accounting. An element constitutes a separate unit of accounting when the delivered item has standalone value and delivery of the undelivered element is probable and within the Company’s control. | ||||||||||||
For arrangements in which elements do have stand-alone value, the Company allocates revenue to each element in the arrangement based on a selling price hierarchy. The selling price for a deliverable is based on vendor-specific objective evidence of selling price (“VSOE”), if available, third-party evidence of selling price (“TPE”), if VSOE is not available, or estimated selling price (“ESP”) if neither VSOE nor TPE is available. Because the Company has neither VSOE nor TPE for its deliverables, the allocation of revenue is based on ESP. | ||||||||||||
The Company’s process for determining ESP for its deliverables considers multiple factors that may vary depending upon the facts and circumstances related to each deliverable. Key factors considered in developing ESP related to deliverables include established pricing and approval policies, type and size of customer, number of products purchased, and historical transactions. The Company regularly reviews ESP and maintains internal controls over the establishment and updates of these estimates. | ||||||||||||
The Company evaluates its SaaS subscription agreements and considers whether the associated services have standalone value to its customers. For arrangements when implementation services do not have standalone value to the customer, licenses and related implementation services are considered a single unit of accounting. Accordingly, the consideration allocated to licenses and services is recognized ratably over the term of the subscription agreement, beginning with the later of the start date specified in the subscription agreement, or the date access to the software is provided to the customer, provided all other revenue recognition criteria have been met. Fees for professional services that are contingent upon future performance are recognized ratably over the remaining subscription term once the performance milestones have been met. Alternatively, when services have standalone value to the customer, licenses and related services are considered separate units of accounting. For separate units of accounting, services are recognized as the services are performed and delivered to the customer and licenses are recognized over the term of the subscription arrangement, beginning with the later of the start date specified in the subscription agreement, or the date access to the software is provided to the customer, provided all other revenue recognition criteria have been met. | ||||||||||||
Revenue from sales of certain of the Company’s perpetual software products and related implementation services and maintenance is recognized as a single unit of accounting since VSOE of fair value does not exist for the contractual elements. Accordingly, revenue for all elements in these arrangements is recognized over the contractual maintenance term, which is typically one year. | ||||||||||||
The Company recognizes revenue from any professional services that are sold separately as the services are performed. | ||||||||||||
Deferred revenue primarily consists of billings or payments received in advance of revenue recognition from the Company’s software and services described above. For multi-year subscription agreements, the Company generally invoices its customers in annual installments. Accordingly, the deferred revenue balance does not represent the total contract value of these multi-year subscription agreements. The Company’s services, such as implementation, are generally sold in conjunction with subscription agreements. These services are recognized ratably over the remaining term of the subscription agreement once any contingent performance milestones have been satisfied. The portion of deferred revenue that the Company anticipates will be recognized after the succeeding 12-month period is recorded as non-current deferred revenue and the remaining portion is recorded as current deferred revenue. | ||||||||||||
Cost of Revenues | ' | |||||||||||
Cost of Revenues | ||||||||||||
Cost of revenues primarily consists of costs related to hosting the Company’s subscription software services, compensation and related expenses for implementation services, supplier enablement services, customer support staff and client partners, amortization of capitalized software development costs and allocated fixed asset depreciation and facilities costs. Cost of revenues is expensed as incurred. | ||||||||||||
Deferred Project Costs | ' | |||||||||||
Deferred Project Costs | ||||||||||||
The Company capitalizes sales commission costs that are directly related to the execution of its subscription agreements. The commissions are deferred and amortized over the contractual term of the related non-cancelable subscription agreement. The Company believes this is the appropriate method of accounting, as the commission costs are so closely related to the revenues from the subscription agreements that they should be recorded as an asset and charged to expense over the same period that the subscription revenues are recognized. Amortization of deferred commissions is included in sales and marketing expense in the accompanying consolidated statements of operations and comprehensive (loss) income. The deferred commissions are reflected within deferred project costs in the accompanying consolidated balance sheets. | ||||||||||||
Concentrations | ' | |||||||||||
Concentrations | ||||||||||||
As of December 31, 2013 and 2012, no individual customer comprised more than 10% of the accounts receivable balance. During each of the years ended December 31, 2013, 2012 and 2011, no individual customer comprised more than 10% of the Company’s revenues. During the years ended December 31, 2013, 2012 and 2011, approximately 89%, 93% and 95%, respectively, of the Company’s revenue was from sales transactions originating in the United States. As of December 31, 2013 and 2012, all of the Company’s long-lived assets were located in North America. | ||||||||||||
Cash and Cash Equivalents | ' | |||||||||||
Cash and Cash Equivalents | ||||||||||||
The Company considers all highly liquid debt investments with an original maturity of three months or less at the date of purchase to be cash equivalents. The Company maintains cash balances at financial institutions that may at times exceed federally insured limits. The Company maintains this cash at reputable financial institutions and, as a result, believes credit risk related to its cash is minimal. | ||||||||||||
Short-Term Investments | ' | |||||||||||
Short-Term Investments | ||||||||||||
Management determines the appropriate classification of investments at the time of purchase and evaluates such determination as of each balance sheet date. The Company’s investments were classified as available-for-sale securities and are stated at fair value at December 31, 2013 and 2012. Realized gains and losses are included in other income (expense) based on the specific identification method. There were no realized gains or losses for the years ended December 31, 2013, 2012 or 2011. Net unrealized gains and losses on available-for-sale securities are reported as a component of other comprehensive (loss) income, net of tax. As of December 31, 2013 and 2012, there were no unrealized gains or losses on available-for-sale securities. The Company regularly monitors and evaluates the fair value of its investments to identify other-than-temporary declines in value. Management believes no such declines in value existed at December 31, 2013 or 2012. | ||||||||||||
Accounts Receivable | ' | |||||||||||
Accounts Receivable | ||||||||||||
The Company assesses the need for an allowance for doubtful accounts based on estimates of probable credit losses. This assessment is based on several factors including aging of customer accounts, known customer specific risks, historical experience and existing economic conditions. The Company generally does not require collateral for receivable balances. Accounts would be charged against the allowance after all means of collection were exhausted and recovery was considered remote. Based on management’s analysis of its outstanding accounts receivable, the Company recorded an allowance of $556 and $122 at December 31, 2013 and 2012, respectively. | ||||||||||||
Property and Equipment | ' | |||||||||||
Property and Equipment | ||||||||||||
Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives, which are usually seven years for furniture and three to five years for computer software and equipment. Leasehold improvements are amortized over the shorter of the estimated useful lives of the assets or the remainder of the lease term. Costs for repairs and maintenance are expensed as incurred. Upon retirement or sale, the cost of the disposed assets and the related accumulated depreciation are removed from the accounts, and any resulting gain or loss is credited or charged to operations. | ||||||||||||
Software Development Costs | ' | |||||||||||
Software Development Costs | ||||||||||||
The Company incurs certain costs associated with the development of its cloud-based solution, which are accounted for as internal-use software. Certain qualifying costs incurred during the application development phase are capitalized and amortized to expense over the estimated useful life of the related applications, which is generally three years. | ||||||||||||
Although the Company’s development efforts are primarily focused on its hosted, cloud-based solution, the Company also incurs costs in connection with the development of certain of its software products licensed to customers on a perpetual basis, which are accounted for as costs of software to be sold, leased or otherwise marketed. Under this guidance, capitalization of software development costs begins upon the establishment of technological feasibility (based on a working model approach), subject to net realizable value considerations. To date, the dates between achieving technological feasibility and the general availability of such software have substantially coincided; therefore, software development costs for these products that would qualify for capitalization have been immaterial. Accordingly, the Company has not capitalized any software development costs related to these software products and has charged all such costs to research and development expense. | ||||||||||||
Goodwill | ' | |||||||||||
Goodwill | ||||||||||||
Goodwill represents the excess of the cost of an acquired entity over the net fair value of the identifiable assets acquired and liabilities assumed. Goodwill is not amortized, but rather is assessed for impairment at least annually. Additionally, the Company would also review the carrying value of goodwill whenever events or changes in circumstances indicated that its carrying amount may not be recoverable. The Company has concluded that it has one reporting unit for purposes of its annual goodwill impairment testing. To assess goodwill impairment, the first step is to identify if a potential impairment exists by comparing the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is not considered to have a potential impairment and the second step of the impairment test is not necessary. The Company performed its annual assessments on December 31, 2013 and 2012. The estimated fair value of the Company’s reporting unit exceeded its carrying amount, including goodwill, and as such, no goodwill impairment was recorded. | ||||||||||||
Long-Lived Assets | ' | |||||||||||
Long-Lived Assets | ||||||||||||
The Company evaluates the recoverability of its property and equipment and other long-lived assets, including acquired technology and customer relationships, when events change or circumstances indicate the carrying amount may not be recoverable. If such events or changes in circumstances are present, the undiscounted cash flow method is used to determine whether the asset is impaired. An impairment loss is recognized when, and to the extent, the net book value of such assets exceeds the fair value of the assets or the business to which the assets relate. Cash flows would include the estimated terminal value of the asset and exclude any interest charges. The discount rate utilized would be based on the Company’s best estimate of the related risks and return at the time the impairment assessment is made. There were no impairments of the Company’s long-lived assets during the years ended December 31, 2013 and 2012. | ||||||||||||
Sales and Marketing Expenses | ' | |||||||||||
Sales and Marketing Expenses | ||||||||||||
Sales and marketing expenses consist primarily of costs, including salaries and sales commissions, of all personnel involved in the sales process. Sales and marketing expenses also include costs of advertising, trade shows, certain indirect costs and allocated fixed asset depreciation and facilities costs. Advertising costs are expensed as incurred. Advertising expenses totaled approximately $678, $522 and $435 for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
Stock-Based Compensation | ' | |||||||||||
Stock-Based Compensation | ||||||||||||
Stock-based payments to employees, including grants of employee stock options, are recognized in the consolidated statement of operations and comprehensive (loss) income based on their fair values. Stock-based compensation costs are measured at the grant date based on the fair value of the award and are recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. | ||||||||||||
Stock-based compensation costs are based on the fair value of the underlying option calculated using the Black-Scholes option-pricing model on the date of grant for stock options. Determining the appropriate fair value model and related assumptions requires judgment, including estimating stock price volatility, forfeiture rates and expected term. The Company uses the historical volatility of its stock price to calculate the expected volatility. Prior to the second half of 2013, the expected volatility rates were estimated based on the actual volatility of comparable public companies over the expected term. The expected term for the years ended December 31, 2013, 2012 and 2011, represents the average time that options that vest are expected to be outstanding based on the mid-point between the vesting date and the end of the contractual term of the award. The Company has not paid dividends and does not anticipate paying a cash dividend in the foreseeable future and, accordingly, uses an expected dividend yield of zero. The risk-free interest rate is based on the rate of U.S. Treasury securities with maturities consistent with the estimated expected term of the awards. | ||||||||||||
Foreign Currency and Operations | ' | |||||||||||
Foreign Currency and Operations | ||||||||||||
The reporting currency for all periods presented is the U.S. dollar. The functional currency for the Company’s foreign subsidiaries is generally their local currency. The translation of each subsidiary’s financial statements into U.S. dollars is performed for assets and liabilities using exchange rates in effect at the balance sheet date and for revenue and expense accounts using an average exchange rate during the period. The resulting translation adjustments are recognized in accumulated other comprehensive loss, a separate component of stockholders’ equity. Also included in accumulated other comprehensive loss is the foreign translation adjustment of $1,729 related to the intercompany balance with the Company’s Canadian subsidiary not expected to be settled in the foreseeable future. Realized foreign currency transaction gains and losses are included in other income (expense) in the consolidated statements of operations and comprehensive (loss) income. | ||||||||||||
(Loss) Income Per Share | ' | |||||||||||
(Loss) Income Per Share | ||||||||||||
Basic net (loss) income per share is computed by dividing net (loss) income by the weighted-average number of shares of common stock outstanding for the period. Outstanding unvested restricted stock purchased by employees is subject to repurchase by the Company and therefore is not included in the calculation of the weighted-average shares outstanding until vested. Diluted net income per share is computed giving effect to all potentially dilutive common stock, including options and restricted stock. The dilutive effect of outstanding awards is reflected in diluted earnings per share by application of the treasury stock method. | ||||||||||||
The following summarizes the calculation of basic and diluted net (loss) income per share: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Basic: | ||||||||||||
Net (loss) income | $ | -4,734 | $ | (1,176 | ) | $ | 2,834 | |||||
Weighted average common shares, basic | 23,044 | 22,285 | 21,673 | |||||||||
Basic net (loss) income per share | $ | -0.2 | $ | (0.05 | ) | $ | 0.13 | |||||
Diluted: | ||||||||||||
Net (loss) income | $ | -4,734 | $ | (1,176 | ) | $ | 2,834 | |||||
Weighted average common shares, basic | 23,044 | 22,285 | 21,673 | |||||||||
Dilutive effect of: | ||||||||||||
Options to purchase common stock | — | — | 455 | |||||||||
Nonvested shares of restricted stock | — | — | 113 | |||||||||
Weighted average common shares, diluted | 23,044 | 22,285 | 22,241 | |||||||||
Diluted net (loss) income per share | $ | -0.2 | $ | (0.05 | ) | $ | 0.13 | |||||
The following equity instruments have been excluded from diluted net (loss) income per common share as they would be anti-dilutive: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Common stock options | 77 | 276 | 280 | |||||||||
For the years ended December 2013 and 2012, the Company incurred net losses and, therefore, the effect of the Company’s outstanding stock options, nonvested restricted stock and common stock issuable pursuant to the employee stock purchase plan was not included in the calculation of diluted net loss per share as the effect would be anti-dilutive. For the years ended December 31, 2013 and 2012, diluted net loss per share excluded the impact of 430 and 384 outstanding stock options, respectively, and 28 and 43 nonvested shares of restricted stock. For the year ended December 31, 2013, diluted net loss per share excluded the impact of 18 shares of common stock issuable pursuant to the employee stock purchase plan. | ||||||||||||
Segment Data | ' | |||||||||||
Segment Data | ||||||||||||
The Company manages its operations on a consolidated basis for purposes of assessing performance and making operating decisions. Accordingly, the Company has determined that it has a single reporting segment. | ||||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
Deferred income taxes are provided using tax rates enacted for periods of expected reversal on all temporary differences. Temporary differences relate to differences between the book and tax basis of assets and liabilities, principally intangible assets, property and equipment, deferred subscription revenues, accruals and stock-based compensation. Valuation allowances are established to reduce deferred tax assets to the amount that will more likely than not be realized. To the extent that a determination is made to establish or adjust a valuation allowance, the expense or benefit is recorded in the period in which the determination is made. | ||||||||||||
Judgment is required in determining the provision for income taxes. Additionally, the income tax provision is based on calculations and assumptions that are subject to examination by many different tax authorities and to changes in tax law and rates in many jurisdictions. The Company would adjust its income tax provision in the period in which it becomes probable that actual results differ from management estimates. | ||||||||||||
The Company accounts for uncertain tax positions by recognizing and measuring tax benefits taken or expected to be taken on a tax return. A tax benefit from an uncertain position may be recognized only if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authority’s widely understood administrative practices and precedents. If the recognition threshold is met, only the portion of the tax benefit that is greater than fifty percent likely to be realized upon settlement with a taxing authority is recorded. The tax benefit that is not recorded is considered an unrecognized tax benefit. Interest and penalties related to uncertain tax positions are recognized as a component of income tax expense. | ||||||||||||
Recent Accounting Pronouncements | ' | |||||||||||
Recent Accounting Pronouncements | ||||||||||||
In July 2013, the FASB issued a revised accounting standard, which clarifies that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed. In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This standard is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Retrospective application is permitted. The Company will adopt this standard in the first quarter of 2014 and does not expect the adoption to have a material impact on its financial statements. | ||||||||||||
In July 2012, the FASB issued a revised accounting standard, which is intended to reduce the cost and complexity of performing an impairment test for indefinite-lived intangible assets by providing entities an option to perform a “qualitative” assessment to determine whether further impairment testing is necessary. Specifically, an entity has the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. If an entity believes, as a result of its qualitative assessment, that it is more likely than not that fair value of an intangible asset is less than its carrying amount, the quantitative impairment test is required. Otherwise, no further testing is required. This standard is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The Company adopted this guidance on January 1, 2013. The adoption of this guidance did not have a material impact on the Company’s financial position, results of operations, or cash flows. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Calculation of Basic and Diluted Net (Loss) Income Per Share | ' | |||||||||||
The following summarizes the calculation of basic and diluted net (loss) income per share: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Basic: | ||||||||||||
Net (loss) income | $ | -4,734 | $ | (1,176 | ) | $ | 2,834 | |||||
Weighted average common shares, basic | 23,044 | 22,285 | 21,673 | |||||||||
Basic net (loss) income per share | $ | -0.2 | $ | (0.05 | ) | $ | 0.13 | |||||
Diluted: | ||||||||||||
Net (loss) income | $ | -4,734 | $ | (1,176 | ) | $ | 2,834 | |||||
Weighted average common shares, basic | 23,044 | 22,285 | 21,673 | |||||||||
Dilutive effect of: | ||||||||||||
Options to purchase common stock | — | — | 455 | |||||||||
Nonvested shares of restricted stock | — | — | 113 | |||||||||
Weighted average common shares, diluted | 23,044 | 22,285 | 22,241 | |||||||||
Diluted net (loss) income per share | $ | -0.2 | $ | (0.05 | ) | $ | 0.13 | |||||
Anti-Dilutive Equity Instruments Excluded from Diluted Net (Loss) Income Per Share | ' | |||||||||||
The following equity instruments have been excluded from diluted net (loss) income per common share as they would be anti-dilutive: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Common stock options | 77 | 276 | 280 | |||||||||
Business_Combinations_Tables
Business Combinations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
CombineNet | ' | |||||||
Schedule of Purchase Price Consideration | ' | |||||||
The purchase consideration consisted of the following: | ||||||||
Cash | $ | 26,634 | ||||||
Fair value of common stock | 17,093 | |||||||
Total purchase consideration | 43,727 | |||||||
Cash acquired | 1,042 | |||||||
Net purchase consideration | $ | 42,685 | ||||||
Schedule of Purchase Price Allocation | ' | |||||||
The allocation of the purchase price as of the acquisition date was as follows: | ||||||||
Estimated | Estimated | |||||||
Useful Life | Fair Value | |||||||
Accounts receivable | $ | 2,679 | ||||||
Prepaid expenses and other current assets | 334 | |||||||
Property and equipment | 464 | |||||||
Deferred project costs | 121 | |||||||
Deferred tax assets | 5,323 | |||||||
Other assets | 30 | |||||||
Covenant not to compete | 2 years | 100 | ||||||
Trademarks | 3 years | 300 | ||||||
Acquired technology | 7 years | 4,100 | ||||||
Customer relationships | 15 years | 13,000 | ||||||
Goodwill | 28,908 | |||||||
Accounts payable | (98 | ) | ||||||
Accrued expenses | (786 | ) | ||||||
Deferred tax liability | (7,350 | ) | ||||||
Deferred revenues | (4,440 | ) | ||||||
Total purchase consideration | $ | 42,685 | ||||||
Schedule of Unaudited Pro Forma Information | ' | |||||||
The following unaudited pro forma information is not intended to be indicative of future operating results. | ||||||||
Years Ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Pro forma revenue | $ | 100,688 | $ | 77,662 | ||||
Pro forma net loss | (3,536 | ) | (1,723 | ) | ||||
Pro forma net loss per share, basic | $ | (0.15 | ) | $ | (0.07 | ) | ||
Pro forma net loss per share, diluted | $ | (0.15 | ) | $ | (0.07 | ) | ||
Spend Radar | ' | |||||||
Schedule of Purchase Price Consideration | ' | |||||||
The purchase consideration consisted of the following: | ||||||||
Cash | $ | 8,000 | ||||||
Fair value of common stock | 2,087 | |||||||
Total purchase consideration | 10,087 | |||||||
Cash acquired | 259 | |||||||
Net purchase consideration | $ | 9,828 | ||||||
Schedule of Purchase Price Allocation | ' | |||||||
The allocation of the purchase price as of the acquisition date was as follows: | ||||||||
Estimated | Estimated | |||||||
Useful Life | Fair Value | |||||||
Accounts receivable | $ | 634 | ||||||
Prepaid expenses and other current assets | 100 | |||||||
Property and equipment | 147 | |||||||
Covenant not to compete | 5 years | 203 | ||||||
Trademarks | 5 years | 566 | ||||||
Acquired technology | 7 years | 2,693 | ||||||
Customer relationships | 5 years | 1,338 | ||||||
Goodwill | 5,682 | |||||||
Accrued expenses | (305 | ) | ||||||
Deferred revenues | (1,230 | ) | ||||||
Total purchase consideration | $ | 9,828 | ||||||
Upside Software | ' | |||||||
Schedule of Purchase Price Allocation | ' | |||||||
The allocation of the purchase price as of the acquisition date was as follows: | ||||||||
Estimated | Estimated | |||||||
Useful Life | Fair Value | |||||||
Accounts receivable | $ | 2,096 | ||||||
Prepaid expenses and other current assets | 230 | |||||||
Property and equipment | 478 | |||||||
Covenant not to compete | 5 years | 30 | ||||||
Trademarks | 5 years | 263 | ||||||
Acquired technology | 7 years | 4,064 | ||||||
Customer relationships | 10 years | 3,594 | ||||||
Goodwill | 15,927 | |||||||
Accrued expenses | (530 | ) | ||||||
Deferred revenues | (3,705 | ) | ||||||
Total purchase consideration | $ | 22,447 | ||||||
Cash_Equivalents_and_ShortTerm1
Cash Equivalents and Short-Term Investments (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Cash Equivalents and Short-Term Investments | ' | |||||||||||||||
The components of cash equivalents and short-term investments at December 31, 2013 and 2012 are as follows: | ||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||
Cost | Fair Market | Cost | Fair Market | |||||||||||||
Value | Value | |||||||||||||||
Cash Equivalents: | ||||||||||||||||
Money market accounts | $ | 5,349 | $ | 5,349 | $ | 3,108 | $ | 3,108 | ||||||||
Short-term investments: | ||||||||||||||||
Variable rate demand notes | 15,105 | 15,105 | 29,740 | 29,740 | ||||||||||||
Total | $ | 20,454 | $ | 20,454 | $ | 32,848 | $ | 32,848 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||
The fair value measurements of the Company’s financial assets at December 31, 2013 are as follows: | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Cash Equivalents | $ | 5,349 | $ | 5,349 | $ | — | $ | — | ||||||||
Short-term investments | 15,105 | 15,105 | — | — | ||||||||||||
Total | $ | 20,454 | $ | 20,454 | $ | — | $ | — | ||||||||
The fair value measurements of the Company’s financial assets at December 31, 2012 are as follows: | ||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | |||||||||||||
Cash Equivalents | $ | 3,108 | $ | 3,108 | $ | — | $ | — | ||||||||
Short-term investments | 29,740 | 29,740 | — | — | ||||||||||||
Total | $ | 32,848 | $ | 32,848 | $ | — | $ | — | ||||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property and Equipment | ' | |||||||
Property and equipment consist of the following as of December 31, 2013 and 2012: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Furniture and fixtures | $ | 1,284 | $ | 1,200 | ||||
Computer software and equipment | 17,036 | 11,230 | ||||||
Leasehold improvements | 715 | 681 | ||||||
Total costs | 19,035 | 13,111 | ||||||
Less accumulated depreciation and amortization | -9,007 | (6,018 | ) | |||||
Property and equipment, net | $ | 10,028 | $ | 7,093 | ||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Carrying Amount of Goodwill | ' | |||||||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 were as follows: | ||||||||||||||||
Balance as of December 31, 2011 | $ | 15,719 | ||||||||||||||
Goodwill acquired | 21,609 | |||||||||||||||
Foreign currency translation | (33 | ) | ||||||||||||||
Balance as of December 31, 2012 | 37,295 | |||||||||||||||
Goodwill acquired | 28,908 | |||||||||||||||
Foreign currency translation | (923 | ) | ||||||||||||||
Balance at December 31, 2013 | $ | 65,280 | ||||||||||||||
Summary of Intangible Assets | ' | |||||||||||||||
A summary of intangible assets as of December 31, 2013 and 2012 follows: | ||||||||||||||||
December 31, 2013 | ||||||||||||||||
Weighted Average | Gross Carrying | Accumulated | Net Carrying | |||||||||||||
Amortization | Amount | Amortization | Amount | |||||||||||||
Period | ||||||||||||||||
Acquired technology | 7.0 years | $ | 19,889 | $ | (10,070 | ) | $ | 9,819 | ||||||||
Customer relationships | 12.1 years | 27,117 | (9,013 | ) | 18,104 | |||||||||||
Covenant not to compete | 4.2 years | 382 | (112 | ) | 270 | |||||||||||
Acquired trademarks | 4.5 years | 1,113 | (246 | ) | 867 | |||||||||||
Trademarks | 430 | — | 430 | |||||||||||||
Total | $ | 48,931 | $ | (19,441 | ) | $ | 29,490 | |||||||||
December 31, 2012 | ||||||||||||||||
Weighted Average | Gross Carrying | Accumulated | Net Carrying | |||||||||||||
Amortization | Amount | Amortization | Amount | |||||||||||||
Period | ||||||||||||||||
Acquired technology | 7.0 years | $ | 16,024 | $ | (8,771 | ) | $ | 7,253 | ||||||||
Customer relationships | 9.5 years | 14,325 | (6,692 | ) | 7,633 | |||||||||||
Covenant not to compete | 5.0 years | 284 | (33 | ) | 251 | |||||||||||
Acquired trademarks | 5.0 years | 828 | (49 | ) | 779 | |||||||||||
Trademarks | 430 | — | 430 | |||||||||||||
Total | $ | 31,891 | $ | (15,545 | ) | $ | 16,346 | |||||||||
Future Amortization Expense Related to Intangible Assets | ' | |||||||||||||||
The Company estimates the following amortization expense related to its intangible assets for the years ended December 31: | ||||||||||||||||
2014 | $ | 5,141 | ||||||||||||||
2015 | 4,675 | |||||||||||||||
2016 | 4,252 | |||||||||||||||
2017 | 3,794 | |||||||||||||||
2018 | 3,181 | |||||||||||||||
Thereafter | 8,017 | |||||||||||||||
$ | 29,060 | |||||||||||||||
Accrued_Liabilities_Tables
Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Summary of Accrued Liabilities | ' | |||||||
Current accrued liabilities are comprised of the following as of December 31, 2013 and 2012: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
Accrued compensation | $ | 9,902 | $ | 6,192 | ||||
Accrued consulting and professional services | 410 | 367 | ||||||
Accrued rent | 457 | 655 | ||||||
Customer deposits | 292 | 362 | ||||||
Other | 2,704 | 1,195 | ||||||
Total | $ | 13,765 | $ | 8,771 | ||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Schedule of Shares Outstanding and Available for Grant Under Plan | ' | ||||||||||||||||||||
The following table summarizes the number of shares outstanding and the number of shares available for future grant under the stock incentive plan at December 31, 2013: | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Number of shares reserved under the 2013 Plan | 3,500 | ||||||||||||||||||||
Number of shares remaining for future grants transferred from Prior Plan | 838 | ||||||||||||||||||||
Number of stock options outstanding under the 2013 Plan | (349 | ) | |||||||||||||||||||
Weighted average exercise price | $ | 23.82 | |||||||||||||||||||
Weighted average term (in years) | 9.6 | ||||||||||||||||||||
Number of shares remaining for future grants | |||||||||||||||||||||
SciQuest, Inc. 2013 Stock Incentive Plan | 3,989 | ||||||||||||||||||||
Schedule of Restricted Stock Units Activity | ' | ||||||||||||||||||||
The following summarizes the activity of restricted stock units for the years ended December 31, 2013 and 2012: | |||||||||||||||||||||
Number of | Weighted- | ||||||||||||||||||||
Shares | Average Grant | ||||||||||||||||||||
Date Fair Value | |||||||||||||||||||||
Balance as of December 31, 2011 | — | — | |||||||||||||||||||
Issued | 28 | $ | 15.67 | ||||||||||||||||||
Vested | — | — | |||||||||||||||||||
Nonvested as of December 31, 2012 | 28 | 15.67 | |||||||||||||||||||
Issued | 53 | 17.87 | |||||||||||||||||||
Vested | (28 | ) | 15.67 | ||||||||||||||||||
Forfeited | (4 | ) | 16.3 | ||||||||||||||||||
Nonvested as of December 31, 2013 | 49 | $ | 18.02 | ||||||||||||||||||
Schedule of Nonvested Restricted Stock Activity | ' | ||||||||||||||||||||
The following summarizes the activity of nonvested shares of restricted stock for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||||||||||
Number of | Weighted- | ||||||||||||||||||||
Shares | Average Grant | ||||||||||||||||||||
Date Fair Value | |||||||||||||||||||||
Nonvested as of December 31, 2010 | 174 | $ | 1.62 | ||||||||||||||||||
Vested | -82 | 1.7 | |||||||||||||||||||
Repurchased | -28 | 1.58 | |||||||||||||||||||
Nonvested as of December 31, 2011 | 64 | 1.66 | |||||||||||||||||||
Vested | (47 | ) | 1.69 | ||||||||||||||||||
Nonvested as of December 31, 2012 | 17 | 1.58 | |||||||||||||||||||
Vested | (15 | ) | 1.58 | ||||||||||||||||||
Repurchased | (2 | ) | 1.58 | ||||||||||||||||||
Nonvested as of December 31, 2013 | — | $ | — | ||||||||||||||||||
Schedule of Stock Option Activity | ' | ||||||||||||||||||||
The Company also issues common stock options. The following summarizes stock option activity for the year ended December 31, 2013: | |||||||||||||||||||||
Number of Options | Weighted- | Weighted- | Aggregate | ||||||||||||||||||
Outstanding | Average | Average | Intrinsic Value | ||||||||||||||||||
Exercise Price | Remaining | as of | |||||||||||||||||||
Contractual | December 31, | ||||||||||||||||||||
Term (In Years) | 2013 | ||||||||||||||||||||
Balance as of December 31, 2012 | 1,553 | $ | 11.5 | 8.1 | $ | 6,866 | |||||||||||||||
Options granted | 798 | 20.46 | |||||||||||||||||||
Options exercised | 241 | 8.73 | |||||||||||||||||||
Options canceled | 143 | 15.09 | |||||||||||||||||||
Balance as of December 31, 2013 | 1,967 | $ | 15.22 | 8 | $ | 26,168 | |||||||||||||||
Vested and expected to vest at December 31, 2013 | 1,747 | $ | 14.81 | 7.9 | $ | 25,071 | |||||||||||||||
Exercisable as of December 31, 2013 | 866 | $ | 11.07 | 7 | $ | 15,100 | |||||||||||||||
Schedule of Stock Options Outstanding and Exercisable | ' | ||||||||||||||||||||
The following table summarizes information about stock options outstanding and exercisable at December 31, 2013: | |||||||||||||||||||||
Options Outstanding at December 31, 2013 | Options Exercisable at | ||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Range of Exercise Price | Number | Weighted- | Weighted- | Number | Weighted- | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Remaining | Exercise Price | Exercise Price | |||||||||||||||||||
Contractual Life | |||||||||||||||||||||
(Yrs.) | |||||||||||||||||||||
$0.08 –$0.14 | 29 | 1.4 | $ | 0.09 | 29 | $ | 0.09 | ||||||||||||||
$0.14 –$1.90 | 3 | 4.6 | 1.36 | 3 | 1.36 | ||||||||||||||||
$2.04 –$8.18 | 248 | 6 | 3.53 | 240 | 3.47 | ||||||||||||||||
$11.45 –$17.41 | 1,230 | 8.1 | 14.9 | 577 | 14.51 | ||||||||||||||||
$17.50 –$27.64 | 403 | 9.4 | 22.78 | 17 | 22.15 | ||||||||||||||||
$28.29 –$29.14 | 54 | 10 | 28.68 | — | — | ||||||||||||||||
Total | 1,967 | 8 | $ | 15.22 | 866 | $ | 11.07 | ||||||||||||||
Schedule of Assumptions Used to Calculate Fair Value of Common Stock Options | ' | ||||||||||||||||||||
The fair value of common stock options for employees and non-employees is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions used: | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Estimated dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||
Expected stock price volatility | 46.42–55.00 | % | 60.00–80.00 | % | 80.00–90.00 | % | |||||||||||||||
Weighted-average risk-free interest rate | 0.9%–2.0 | % | 0.8%–1.5 | % | 1.1%–2.7 | % | |||||||||||||||
Expected life of options (in years) | 6.25 | 6.25 | 6.25 | ||||||||||||||||||
Schedule of Assumptions Used to Calculate Fair Value of Stock Purchase Rights | ' | ||||||||||||||||||||
The fair value of stock purchase rights granted under the Purchase Plan is estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions used: | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Estimated dividend yield | 0 | % | 0 | % | |||||||||||||||||
Expected stock price volatility | 46.69–52.22 | % | 57.3 | 0% | |||||||||||||||||
Weighted-average risk-free interest rate | 0.07%–0.11 | % | 0.13% – 0.17 | % | |||||||||||||||||
Expected life of options (in years) | 0.5 | 0.5–1.0 | |||||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Components of Income (Loss) Before Income Taxes | ' | |||||||||||
The following are the components of (loss) income before income taxes: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Domestic | $ | (5,110 | ) | $ | (940 | ) | $ | 5,695 | ||||
Foreign | — | (133 | ) | (81 | ) | |||||||
Total | $ | (5,110 | ) | $ | (1,073 | ) | $ | 5,614 | ||||
Schedule of Income Tax Expense (Benefit) | ' | |||||||||||
The provision for (benefit from) income taxes in the accompanying consolidated statements of operations and comprehensive (loss) income for the years ended December 31, 2013, 2012 and 2011 consisted of the following: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current | ||||||||||||
Federal | $ | 14 | $ | 89 | $ | 100 | ||||||
Foreign | — | — | — | |||||||||
State | 45 | 69 | 199 | |||||||||
59 | 158 | 299 | ||||||||||
Deferred | ||||||||||||
Federal | (1,825 | ) | 76 | 2,240 | ||||||||
Foreign | — | — | — | |||||||||
State | 1,390 | (131 | ) | 241 | ||||||||
(435 | ) | (55 | ) | 2,481 | ||||||||
Income tax (benefit) expense | $ | (376 | ) | $ | 103 | $ | 2,780 | |||||
Reconciliation of Statutory to Effective Tax Rate | ' | |||||||||||
A reconciliation of the statutory income tax rate to the effective income tax rate is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
US federal statutory rate | 34 | % | 34 | % | 34 | % | ||||||
State taxes (net of federal benefit) | 3 | 6 | 5 | |||||||||
Foreign rate differential | 0 | (18 | ) | 0 | ||||||||
Branch loss benefit at statutory rate | 0 | 95 | 0 | |||||||||
Stock compensation expense | (7 | ) | 2 | 0 | ||||||||
Stock acquisition — additional purchase price | 0 | (51 | ) | 8 | ||||||||
Nondeductible meals and entertainment | (1 | ) | (4 | ) | 2 | |||||||
Research and development tax credits | 10 | 0 | (1 | ) | ||||||||
Expiration of state loss carryforwards | 0 | (168 | ) | 0 | ||||||||
Expiration of federal loss carryforwards | 0 | (57 | ) | 0 | ||||||||
Change in valuation allowance | (12 | ) | 141 | 0 | ||||||||
Payable reclass | 0 | 3 | 0 | |||||||||
Change in state effective tax rate | (19 | ) | 0 | 0 | ||||||||
Provision to return adjustments | 0 | 6 | 0 | |||||||||
Acquisition costs | (1 | ) | 0 | 0 | ||||||||
Other | 0 | 1 | 2 | |||||||||
Effective tax rate | 7 | % | (10 | )% | 50 | % | ||||||
Schedule of Net Deferred Tax Assets | ' | |||||||||||
The tax effects of temporary differences that give rise to significant portions of the net deferred tax asset at December 31, 2013 and 2012 are as follows: | ||||||||||||
2013 | 2012 | |||||||||||
Deferred tax assets: | ||||||||||||
Compensation accruals | $ | 990 | $ | 352 | ||||||||
Other accruals | 319 | 34 | ||||||||||
Gross current deferred tax asset | 1,309 | 386 | ||||||||||
Less: valuation allowance for current deferred tax asset | -1,019 | (309 | ) | |||||||||
Net current deferred tax asset | 290 | 77 | ||||||||||
Net operating loss carryforwards | 79,632 | 65,145 | ||||||||||
Foreign loss carryforward | 2,203 | 896 | ||||||||||
Research and development tax credits | 2,000 | 1,491 | ||||||||||
Deferred revenues | 5,740 | 5,514 | ||||||||||
Stock compensation | 2,288 | 1,242 | ||||||||||
Capitalized earn-out payments | 1,847 | 565 | ||||||||||
Other credits | 406 | 392 | ||||||||||
Other | 496 | 214 | ||||||||||
Gross non-current deferred tax asset | 94,612 | 75,459 | ||||||||||
Less: valuation allowance for non-current deferred tax asset | -72,640 | (58,701 | ) | |||||||||
Net non-current deferred tax asset | 21,972 | 16,758 | ||||||||||
Total deferred tax assets | 22,262 | 16,835 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Depreciation and amortization | 814 | 786 | ||||||||||
Customer contracts | 34 | 81 | ||||||||||
Trade names | 159 | 162 | ||||||||||
Capitalized software costs | 1,942 | 1,333 | ||||||||||
Identifiable intangibles | 8,138 | 1,700 | ||||||||||
Other | — | 14 | ||||||||||
Total deferred tax liabilities | 11,087 | 4,076 | ||||||||||
Net deferred tax assets | $ | 11,175 | $ | 12,759 | ||||||||
Schedule of Change in Uncertain Tax Positions | ' | |||||||||||
The following is a tabular reconciliation of the Company’s change in uncertain tax positions: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Beginning balance | $ | 515 | $ | 515 | $ | 438 | ||||||
Increases related to current year tax position | 326 | — | — | |||||||||
Increases related to prior year tax positions | 183 | — | 77 | |||||||||
Ending balance | $ | 1,024 | $ | 515 | $ | 515 | ||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Future Minimum Lease Payments | ' | |||
The Company leases office space under non-cancelable operating leases. The Company did not have any capital lease obligations as of December 31, 2013 or 2012. The Company is committed to a lease agreement for office space for its headquarters through January 2017. On July 7, 2013, the Company entered into a lease agreement for the lease of office space to replace the Company’s current corporate headquarters. The leased premise is under construction with a target completion date of August 1, 2014. The lease term will commence upon the later of August 1, 2014 or substantial completion of the leased premises and will extend for 120 months thereafter. The Company anticipates subleasing its current office space once the move to the new corporate headquarters is completed. The Company is also committed to leases through December 2014, February 2016, May 2016, July 2018 and March 2019. Future minimum lease payments required under leases in effect as of December 31, 2013 are as follows: | ||||
Operating Leases | ||||
2014 | $ | 2,255 | ||
2015 | 3,621 | |||
2016 | 3,527 | |||
2017 | 2,207 | |||
2018 | 2,082 | |||
Thereafter | 11,394 | |||
Total future minimum lease payments | $ | 25,086 | ||
Quarterly_Results_of_Operation1
Quarterly Results of Operations (unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Results of Operations | ' | |||||||||||||||
The following is a summary of the Company’s quarterly results of operations for the years ended December 31, 2013 and 2012: | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||
2013 | 2013 | 2013 | 2013 | |||||||||||||
Revenues | $ | 20,665 | $ | 21,205 | $ | 22,513 | $ | 25,848 | ||||||||
Gross profit | 14,051 | 14,636 | 15,754 | 18,379 | ||||||||||||
Net loss | (612 | ) | (520 | ) | (2,382 | ) | (1,220 | ) | ||||||||
Net loss per share: | ||||||||||||||||
Basic | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.10 | ) | $ | (0.05 | ) | ||||
Diluted | $ | (0.03 | ) | $ | (0.02 | ) | $ | (0.10 | ) | $ | (0.05 | ) | ||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||
2012 | 2012 | 2012 | 2012 | |||||||||||||
Revenues | $ | 14,408 | $ | 15,180 | $ | 17,173 | $ | 19,704 | ||||||||
Gross profit | 10,231 | 10,771 | 11,830 | 13,363 | ||||||||||||
Net income (loss) | 153 | 400 | 713 | (2,442 | ) | |||||||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.01 | $ | 0.02 | $ | 0.03 | $ | (0.11 | ) | |||||||
Diluted | $ | 0.01 | $ | 0.02 | $ | 0.03 | $ | (0.11 | ) | |||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Calculation of Basic and Diluted Net (Loss) Income Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basic: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) income | ($1,220) | ($2,382) | ($520) | ($612) | ($2,442) | $713 | $400 | $153 | ($4,734) | ($1,176) | $2,834 |
Weighted average common shares, basic | ' | ' | ' | ' | ' | ' | ' | ' | 23,044 | 22,285 | 21,673 |
Basic net (loss) income per share | ($0.05) | ($0.10) | ($0.02) | ($0.03) | ($0.11) | $0.03 | $0.02 | $0.01 | ($0.20) | ($0.05) | $0.13 |
Diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net (loss) income | ($1,220) | ($2,382) | ($520) | ($612) | ($2,442) | $713 | $400 | $153 | ($4,734) | ($1,176) | $2,834 |
Weighted average common shares, basic | ' | ' | ' | ' | ' | ' | ' | ' | 23,044 | 22,285 | 21,673 |
Dilutive effect of: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options to purchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 455 |
Nonvested shares of restricted stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 113 |
Weighted average common shares, diluted | ' | ' | ' | ' | ' | ' | ' | ' | 23,044 | 22,285 | 22,241 |
Diluted net (loss) income per share | ($0.05) | ($0.10) | ($0.02) | ($0.03) | ($0.11) | $0.03 | $0.02 | $0.01 | ($0.20) | ($0.05) | $0.13 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Anti-Dilutive Equity Instruments Excluded from Diluted Net (Loss) Income Per Share (Detail) (Common stock options) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Common stock options | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 77 | 276 | 280 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment | |||
Accounting Policies [Line Items] | ' | ' | ' |
Realized gains or losses on available-for-sale securities | $0 | $0 | $0 |
Unrealized gains or losses | 0 | 0 | ' |
Other than temporary declines in investment value | 0 | 0 | ' |
Allowance for outstanding accounts receivable | 556 | 122 | ' |
Impairment of goodwill | 0 | 0 | ' |
Impairment of long-lived assets | 0 | 0 | ' |
Advertising Expense | 678 | 522 | 435 |
Dividend yield | 0.00% | ' | ' |
Number of reporting segments | 1 | ' | ' |
Foreign translation adjustment | $1,729 | ' | ' |
Stock Purchase Plan | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Dividend yield | 0.00% | 0.00% | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 18 | ' | ' |
Stock Options | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 430 | 384 | ' |
Restricted Stock | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share | 28 | 43 | ' |
Furniture | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life | '7 years | ' | ' |
Software Development Costs | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life | '3 years | ' | ' |
Minimum | Computer Software and Equipment | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life | '3 years | ' | ' |
Maximum | Computer Software and Equipment | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful life | '5 years | ' | ' |
Accounts Receivable | Maximum | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Concentration risk, percentage | 10.00% | 10.00% | ' |
Sales Revenue, Net | Maximum | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Concentration risk, percentage | 10.00% | 10.00% | 10.00% |
United States | Sales Revenue, Net | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Concentration risk, percentage | 89.00% | 93.00% | 95.00% |
Business_Combinations_CombineN
Business Combinations - CombineNet (Schedule of Purchase Price Consideration) (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2013 |
CombineNet | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Cash | ' | ' | ' | $26,634 |
Issuance of common stock in connection with acquisition | 17,093 | 2,087 | 4,539 | 17,093 |
Total purchase consideration | ' | ' | ' | 43,727 |
Cash acquired | ' | ' | ' | 1,042 |
Net purchase consideration | $25,592 | $30,188 | $7,346 | $42,685 |
Business_Combinations_CombineN1
Business Combinations - CombineNet (Schedule of Purchase Price Allocation) (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2013 | Aug. 30, 2013 | Aug. 31, 2013 | Aug. 30, 2013 | Aug. 31, 2013 | Aug. 30, 2013 | Aug. 31, 2013 | Aug. 30, 2013 | Aug. 31, 2013 | Aug. 30, 2013 |
CombineNet | CombineNet | CombineNet | CombineNet | CombineNet | CombineNet | CombineNet | CombineNet | CombineNet | CombineNet | ||||
Covenant Not to Compete | Covenant Not to Compete | Trademarks | Trademarks | Acquired Technology | Acquired Technology | Customer Relationships | Customer Relationships | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Useful Life | ' | ' | ' | ' | ' | '2 years | ' | '3 years | ' | '7 years | ' | '15 years | ' |
Accounts receivable | ' | ' | ' | ' | $2,679 | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid expenses and other current assets | ' | ' | ' | ' | 334 | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | 464 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred project costs | ' | ' | ' | ' | 121 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax assets | ' | ' | ' | ' | 5,323 | ' | ' | ' | ' | ' | ' | ' | ' |
Other assets | ' | ' | ' | ' | 30 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortizable intangible assets | ' | ' | ' | ' | ' | ' | 100 | ' | 300 | ' | 4,100 | ' | 13,000 |
Goodwill | 65,280 | 37,295 | 15,719 | ' | 28,908 | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | ' | ' | ' | ' | -98 | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued expenses | ' | ' | ' | ' | -786 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax liability | ' | ' | ' | ' | -7,350 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenues | ' | ' | ' | ' | -4,440 | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase consideration | $25,592 | $30,188 | $7,346 | $42,685 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business_Combinations_CombineN2
Business Combinations - CombineNet (Schedule of Unaudited Pro Forma Information) (Detail) (CombineNet, USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
CombineNet | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Pro forma revenue | $100,688 | $77,662 |
Pro forma net loss | ($3,536) | ($1,723) |
Pro forma net loss per share, basic | ($0.15) | ($0.07) |
Pro forma net loss per share, diluted | ($0.15) | ($0.07) |
Business_Combinations_Spend_Ra
Business Combinations - Spend Radar (Schedule of Purchase Price Consideration) (Detail) (USD $) | 12 Months Ended | 1 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2012 |
Spend Radar | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Cash | ' | ' | ' | $8,000 |
Issuance of common stock in connection with acquisition | 17,093 | 2,087 | 4,539 | 2,087 |
Total purchase consideration | ' | ' | ' | 10,087 |
Cash acquired | ' | ' | ' | 259 |
Net purchase consideration | $25,592 | $30,188 | $7,346 | $9,828 |
Business_Combinations_Spend_Ra1
Business Combinations - Spend Radar (Schedule of Purchase Price Allocation) (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 31, 2012 | Oct. 01, 2012 | Oct. 31, 2012 | Oct. 01, 2012 | Oct. 31, 2012 | Oct. 01, 2012 | Oct. 31, 2012 | Oct. 01, 2012 | Oct. 31, 2012 | Oct. 01, 2012 |
Spend Radar | Spend Radar | Spend Radar | Spend Radar | Spend Radar | Spend Radar | Spend Radar | Spend Radar | Spend Radar | Spend Radar | ||||
Covenant Not to Compete | Covenant Not to Compete | Trademarks | Trademarks | Acquired Technology | Acquired Technology | Customer Relationships | Customer Relationships | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Useful Life | ' | ' | ' | ' | ' | '5 years | ' | '5 years | ' | '7 years | ' | '5 years | ' |
Accounts receivable | ' | ' | ' | ' | $634 | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid expenses and other current assets | ' | ' | ' | ' | 100 | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | 147 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortizable intangible assets | ' | ' | ' | ' | ' | ' | 203 | ' | 566 | ' | 2,693 | ' | 1,338 |
Goodwill | 65,280 | 37,295 | 15,719 | ' | 5,682 | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued expenses | ' | ' | ' | ' | -305 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenues | ' | ' | ' | ' | -1,230 | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase consideration | $25,592 | $30,188 | $7,346 | $9,828 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business_Combinations_Upside_S
Business Combinations - Upside Software (Schedule of Purchase Price Allocation) (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | |||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 31, 2012 | Aug. 01, 2012 | Aug. 31, 2012 | Aug. 01, 2012 | Aug. 31, 2012 | Aug. 01, 2012 | Aug. 31, 2012 | Aug. 01, 2012 | Aug. 31, 2012 | Aug. 01, 2012 |
Upside Software | Upside Software | Upside Software | Upside Software | Upside Software | Upside Software | Upside Software | Upside Software | Upside Software | Upside Software | ||||
Covenant Not to Compete | Covenant Not to Compete | Trademarks | Trademarks | Acquired Technology | Acquired Technology | Customer Relationships | Customer Relationships | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Useful Life | ' | ' | ' | ' | ' | '5 years | ' | '5 years | ' | '7 years | ' | '10 years | ' |
Accounts receivable | ' | ' | ' | ' | $2,096 | ' | ' | ' | ' | ' | ' | ' | ' |
Prepaid expenses and other current assets | ' | ' | ' | ' | 230 | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | 478 | ' | ' | ' | ' | ' | ' | ' | ' |
Amortizable intangible assets | ' | ' | ' | ' | ' | ' | 30 | ' | 263 | ' | 4,064 | ' | 3,594 |
Goodwill | 65,280 | 37,295 | 15,719 | ' | 15,927 | ' | ' | ' | ' | ' | ' | ' | ' |
Accrued expenses | ' | ' | ' | ' | -530 | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred revenues | ' | ' | ' | ' | -3,705 | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase consideration | $25,592 | $30,188 | $7,346 | $22,447 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business_Combinations_CombineN3
Business Combinations - CombineNet (Narrative) (Detail) (CombineNet, USD $) | 1 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Aug. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 30, 2013 |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Cash | $26,575 | ' | ' | ' |
Fair value of common stock, shares | 820 | ' | ' | ' |
Fair value of common stock | 17,055 | ' | ' | ' |
Acquisition working capital cash adjustment | 59 | ' | ' | ' |
Acquisition working capital stock adjustment | 1 | ' | ' | ' |
Fair value of acquisition working capital stock adjustment | 38 | ' | ' | ' |
Cash balance in escrow | ' | ' | ' | 2,465 |
Common stock in escrow | ' | ' | ' | 76 |
Acquisition costs | ' | 431 | ' | ' |
Business acquisition, pro forma amortization of acquired intangible assets | ' | 2,228 | 2,355 | ' |
Business acquisition, pro forma fair value adjustment for deferred revenue | ' | $2,366 | $1,202 | ' |
Customer Relationships | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Estimated Useful Life | '15 years | ' | ' | ' |
Business_Combinations_Spend_Ra2
Business Combinations - Spend Radar (Narrative) (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2013 | Oct. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 29, 2013 | Oct. 01, 2012 | Oct. 31, 2012 | Feb. 28, 2014 | Jan. 31, 2014 |
Spend Radar | Spend Radar | Spend Radar | Spend Radar | Spend Radar | Spend Radar | Spend Radar | Subsequent Event | Subsequent Event | ||||
Customer Relationships | Spend Radar | Spend Radar | ||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | $8,000 | ' | ' | ' | ' | ' | ' | ' |
Fair value of common stock, shares | ' | ' | ' | ' | 113 | ' | ' | ' | ' | ' | ' | ' |
Fair value of common stock | 17,093 | 2,087 | 4,539 | ' | 2,087 | ' | ' | ' | ' | ' | ' | ' |
Common stock in escrow | ' | ' | ' | ' | ' | ' | ' | ' | 17 | ' | ' | ' |
Cash potentially payable under earn-out arrangement | ' | ' | ' | ' | ' | ' | ' | ' | 6,000 | ' | ' | ' |
Common stock shares potentially issuable under earn-out arrangement | ' | ' | ' | ' | ' | ' | ' | ' | 85 | ' | ' | ' |
Earn-out compensation paid | ' | ' | ' | ' | ' | ' | ' | 2,400 | ' | ' | ' | 3,600 |
Common stock shares issued under earn-out arrangement | ' | ' | ' | 34 | ' | ' | ' | ' | ' | ' | 51 | ' |
Compensation expense recognized related to earn-out arrangement | ' | ' | ' | ' | ' | 4,800 | 1,200 | ' | ' | ' | ' | ' |
Stock-based compensation expense related to earn-out arrangement | ' | ' | ' | ' | ' | 1,252 | 300 | ' | ' | ' | ' | ' |
Cash balance in escrow | ' | ' | ' | ' | ' | ' | ' | ' | 1,200 | ' | ' | ' |
Acquisition costs | ' | ' | ' | ' | ' | $56 | ' | ' | ' | ' | ' | ' |
Estimated Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' |
Business_Combinations_Upside_S1
Business Combinations - Upside Software (Narrative) (Detail) (Upside Software, USD $) | 1 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Aug. 31, 2012 | Dec. 31, 2012 | Aug. 01, 2012 |
Business Acquisition [Line Items] | ' | ' | ' |
Cash | $22,447 | ' | ' |
Cash balance in escrow | ' | ' | 2,800 |
Acquisition costs | ' | $250 | ' |
Customer Relationships | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' |
Estimated Useful Life | '10 years | ' | ' |
Business_Combinations_AECsoft_
Business Combinations - AECsoft (Narrative) (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2013 | Apr. 30, 2012 | Jan. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Oct. 25, 2011 | Jan. 02, 2011 | Feb. 28, 2014 |
Aecsoft | Aecsoft | Aecsoft | Aecsoft | Aecsoft | Aecsoft | Aecsoft | Aecsoft | Subsequent Event | ||||
Aecsoft | ||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase consideration | ' | ' | ' | ' | ' | $13,795 | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | ' | 9,256 | ' | ' | ' | ' | ' | ' |
Fair value of common stock, shares | ' | ' | ' | ' | ' | 351 | ' | ' | ' | ' | ' | ' |
Fair value of common stock | 17,093 | 2,087 | 4,539 | ' | ' | 4,539 | ' | ' | ' | ' | ' | ' |
Contingent consideration, common stock shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25 | ' |
Contingent consideration, fair value of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300 | ' |
Common stock shares potentially issuable under earn-out arrangement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300 | ' |
Common stock shares issued under earn-out arrangement | ' | ' | ' | 122 | 122 | ' | ' | ' | ' | ' | ' | 81 |
Stock-based compensation expense related to earn-out arrangement | ' | ' | ' | ' | ' | ' | 976 | 1,466 | 1,466 | ' | ' | ' |
Acquisition costs | ' | ' | ' | ' | ' | ' | ' | ' | 134 | ' | ' | ' |
Acquisition escrow claims | ' | ' | ' | ' | ' | ' | ' | ' | ' | 446 | ' | ' |
Acquisition escrow distribution, cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | 223 | ' | ' |
Acquisition escrow distributions, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18 | ' | ' |
Fair value of acquisition escrow distribution, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | $223 | ' | ' |
Cash_Equivalents_and_ShortTerm2
Cash Equivalents and Short-Term Investments - Cash Equivalents and Short-Term Investments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash Equivalents: | ' | ' |
Money market accounts, Cost | $5,349 | $3,108 |
Short-term investments: | ' | ' |
Variable rate demand notes, Cost | 15,105 | 29,740 |
Total, Cost | 20,454 | 32,848 |
Cash Equivalents: | ' | ' |
Money market accounts, Fair Market Value | 5,349 | 3,108 |
Short-term investments: | ' | ' |
Variable rate demand notes, Fair Market Value | 15,105 | 29,740 |
Total, Fair Market Value | $20,454 | $32,848 |
Cash_Equivalents_and_ShortTerm3
Cash Equivalents and Short-Term Investments - (Narrative) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash And Cash Equivalents [Line Items] | ' | ' |
Unrealized gains or losses | $0 | $0 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements - Fair Value Measurements (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | $20,454 | $32,848 |
Level 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | 20,454 | 32,848 |
Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | ' | ' |
Level 3 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | ' | ' |
Cash Equivalents | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | 5,349 | 3,108 |
Cash Equivalents | Level 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | 5,349 | 3,108 |
Cash Equivalents | Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | ' | ' |
Cash Equivalents | Level 3 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | ' | ' |
Short-term Investments | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | 15,105 | 29,740 |
Short-term Investments | Level 1 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | 15,105 | 29,740 |
Short-term Investments | Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | ' | ' |
Short-term Investments | Level 3 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Total assets measured at fair value | ' | ' |
Fair_Value_Measurements_Narrat
Fair Value Measurements - (Narrative) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Cash equivalents | $5,349 | $3,108 |
Short-term investments | 15,105 | 29,740 |
Investment maturity date range, start | '2017 | ' |
Investment maturity date range, end | '2042 | ' |
Variable rate demand notes puttable notice period | '7 days | ' |
Financial assets, fair value disclosure | 20,454 | 32,848 |
Level 2 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Financial assets, fair value disclosure | 0 | 0 |
Financial liabilities, fair value disclosure | 0 | 0 |
Level 3 | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Financial assets, fair value disclosure | 0 | 0 |
Financial liabilities, fair value disclosure | $0 | $0 |
Property_and_Equipment_Propert
Property and Equipment - Property and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property Plant And Equipment [Line Items] | ' | ' |
Total costs | $19,035 | $13,111 |
Less accumulated depreciation and amortization | -9,007 | -6,018 |
Property and equipment, net | 10,028 | 7,093 |
Furniture and Fixtures | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Total costs | 1,284 | 1,200 |
Computer Software and Equipment | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Total costs | 17,036 | 11,230 |
Leasehold Improvements | ' | ' |
Property Plant And Equipment [Line Items] | ' | ' |
Total costs | $715 | $681 |
Property_and_Equipment_Narrati
Property and Equipment - (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property Plant And Equipment [Abstract] | ' | ' | ' |
Property and equipment, depreciation | $2,159 | $1,532 | $719 |
Loss from disposal of property and equipment | ' | 38 | ' |
Capitalized software development costs | 3,623 | 3,113 | ' |
Net capitalized software development costs | 5,349 | 3,567 | ' |
Amortization expense related to capitalized software development costs | 1,842 | 928 | 390 |
Computer Software and Equipment | ' | ' | ' |
Property Plant And Equipment [Abstract] | ' | ' | ' |
Property and equipment disposal, cost | 996 | 1,036 | 237 |
Property and equipment disposal, accumulated amortization | ' | 998 | ' |
Loss from disposal of property and equipment | ' | $38 | ' |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Carrying amount of goodwill | ' | ' |
Goodwill, beginning balance | $37,295 | $15,719 |
Goodwill acquired | 28,908 | 21,609 |
Foreign currency translation | -923 | -33 |
Goodwill, ending balance | $65,280 | $37,295 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Summary of Intangible Assets (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | $48,931 | $31,891 |
Accumulated Amortization | -19,441 | -15,545 |
Net Carrying Amount | 29,490 | 16,346 |
Acquired Technology | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Amortization Period | '7 years | '7 years |
Gross Carrying Amount | 19,889 | 16,024 |
Accumulated Amortization | -10,070 | -8,771 |
Net Carrying Amount | 9,819 | 7,253 |
Customer Relationships | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Amortization Period | '12 years 1 month 6 days | '9 years 6 months |
Gross Carrying Amount | 27,117 | 14,325 |
Accumulated Amortization | -9,013 | -6,692 |
Net Carrying Amount | 18,104 | 7,633 |
Covenant Not to Compete | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Amortization Period | '4 years 2 months 12 days | '5 years |
Gross Carrying Amount | 382 | 284 |
Accumulated Amortization | -112 | -33 |
Net Carrying Amount | 270 | 251 |
Acquired Trademarks | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Weighted Average Amortization Period | '4 years 6 months | '5 years |
Gross Carrying Amount | 1,113 | 828 |
Accumulated Amortization | -246 | -49 |
Net Carrying Amount | 867 | 779 |
Trademarks | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 430 | 430 |
Accumulated Amortization | ' | ' |
Net Carrying Amount | $430 | $430 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Future Amortization Expense Related to Intangible Assets (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ' |
2014 | $5,141 |
2015 | 4,675 |
2016 | 4,252 |
2017 | 3,794 |
2018 | 3,181 |
Thereafter | 8,017 |
Total | $29,060 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets - (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill [Line Items] | ' | ' | ' |
Amortization of intangible assets | $3,962 | $1,821 | $1,033 |
Amortization of intangible assets recorded in cost of revenues | $1,580 | $553 | $168 |
Accrued_Liabilities_Summary_of
Accrued Liabilities - Summary of Accrued Liabilities (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accrued liabilities | ' | ' |
Accrued compensation | $9,902 | $6,192 |
Accrued consulting and professional services | 410 | 367 |
Accrued rent | 457 | 655 |
Customer deposits | 292 | 362 |
Other | 2,704 | 1,195 |
Total | $13,765 | $8,771 |
Debt_Narrative_Detail
Debt - (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 02, 2012 |
Revolving Credit Facility | ' | ' | ' |
Line Of Credit Facility [Line Items] | ' | ' | ' |
Maximum available borrowing capacity | ' | ' | $30,000 |
Unused fee | 0.10% | ' | ' |
Percentage of stock pledged of foreign subsidiary | 66.00% | ' | ' |
Revolving credit facility, balance outstanding | 0 | 0 | ' |
Revolving credit facility initiation date | 2-Nov-12 | ' | ' |
Revolving credit facility maturity date | 2-Nov-15 | ' | ' |
Securities Secured Revolving Credit Facility | ' | ' | ' |
Line Of Credit Facility [Line Items] | ' | ' | ' |
Maximum available borrowing capacity | ' | ' | 20,000 |
Interest rate | 'BBA LIBOR Daily Floating Rate plus 0.75% | ' | ' |
Debt instrument, basis spread on variable rate | 0.75% | ' | ' |
Receivables Secured Revolving Credit Facility | ' | ' | ' |
Line Of Credit Facility [Line Items] | ' | ' | ' |
Maximum available borrowing capacity | ' | ' | $10,000 |
Interest rate | 'BBA LIBOR Daily Floating Rate plus 1.50%, | ' | ' |
Debt instrument, basis spread on variable rate | 1.50% | ' | ' |
Stockholders_Equity_Stock_Ince
Stockholders' Equity - Stock Incentive Plan (Schedule of Shares Outstanding and Available for Grant Under Plan) (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Number of shares reserved under the 2013 Plan | 3,500 | ' |
Number of stock options outstanding under the 2013 Plan | -1,967 | -1,553 |
Weighted average exercise price | $15.22 | $11.50 |
Weighted average term (in years) | '8 years | '8 years 1 month 6 days |
Number of shares remaining for future grants | ' | ' |
SciQuest, Inc. 2013 Stock Incentive Plan | 3,989 | ' |
Stock Incentive Plans | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Number of shares reserved under the 2013 Plan | 3,500 | ' |
Number of shares remaining for future grants transferred from Prior Plan | 838 | ' |
Number of stock options outstanding under the 2013 Plan | -349 | ' |
Weighted average exercise price | $23.82 | ' |
Weighted average term (in years) | '9 years 7 months 6 days | ' |
Number of shares remaining for future grants | ' | ' |
SciQuest, Inc. 2013 Stock Incentive Plan | 3,989 | ' |
Stockholders_Equity_Restricted
Stockholders' Equity - Restricted Stock (Schedule of Restricted Stock Units Activity) (Detail) (Restricted Stock Units, USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Stock Units | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Nonvested, Number of Shares, Beginning balance | 28 | ' |
Issued, Number of Shares | 53 | 28 |
Vested, Number of Shares | -28 | ' |
Forfeited, Number of Shares | -4 | ' |
Nonvested, Number of Shares, Ending balance | 49 | 28 |
Nonvested, Weighted-Average Grant Date Fair Value, Beginning balance | $15.67 | ' |
Issued, Weighted-Average Grant Date Fair Value | $17.87 | $15.67 |
Vested, Weighted-Average Grant Date Fair Value | $15.67 | ' |
Forfeited, Weighted-Average Grant Date Fair Value | $16.30 | ' |
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance | $18.02 | $15.67 |
Stockholders_Equity_Restricted1
Stockholders' Equity - Restricted Stock (Schedule of Nonvested Restricted Stock Activity) (Detail) (Restricted Stock, USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restricted Stock | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Nonvested, Number of Shares, Beginning balance | 17 | 64 | 174 |
Vested, Number of Shares | -15 | -47 | -82 |
Repurchased, Number of Shares | -2 | ' | -28 |
Nonvested, Number of Shares, Ending balance | ' | 17 | 64 |
Nonvested, Weighted-Average Grant Date Fair Value, Beginning balance | $1.58 | $1.66 | $1.62 |
Vested, Weighted-Average Grant Date Fair Value | $1.58 | $1.69 | $1.70 |
Repurchased, Weighted-Average Grant Date Fair Value | $1.58 | ' | $1.58 |
Nonvested, Weighted-Average Grant Date Fair Value, Ending balance | ' | $1.58 | $1.66 |
Stockholders_Equity_Stock_Opti
Stockholders' Equity - Stock Options (Schedule of Stock Option Activity) (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award Options Additional Disclosures [Abstract] | ' | ' |
Number of Options Outstanding, Beginning | 1,553 | ' |
Number of Options Outstanding, Options granted | 798 | ' |
Number of Options Outstanding, Options exercised | 241 | ' |
Number of Options Outstanding, Options canceled | 143 | ' |
Number of Options Outstanding, Ending | 1,967 | 1,553 |
Number of Options Outstanding, Vested and expected to vest | 1,747 | ' |
Number of Options Outstanding, Exercisable | 866 | ' |
Weighted-Average Exercise Price, Beginning | $11.50 | ' |
Weighted-Average Exercise Price, Options granted | $20.46 | ' |
Weighted-Average Exercise Price, Options exercised | $8.73 | ' |
Weighted-Average Exercise Price, Options canceled | $15.09 | ' |
Weighted-Average Exercise Price, Ending | $15.22 | $11.50 |
Weighted-Average Exercise Price, Vested and expected to vest | $14.81 | ' |
Weighted-Average Exercise Price, Exercisable | $11.07 | ' |
Weighted-Average Remaining Contractual Life (Yrs.) | '8 years | '8 years 1 month 6 days |
Weighted-Average Remaining Contractual Term (In Years), Vested and expected to vest | '7 years 10 months 24 days | ' |
Weighted-Average Remaining Contractual Term (In Years), Exercisable | '7 years | ' |
Aggregate Intrinsic Value, Beginning | $6,866 | ' |
Aggregate Intrinsic Value, Ending | 26,168 | 6,866 |
Aggregate Intrinsic Value, Vested and expected to vest | 25,071 | ' |
Aggregate Intrinsic Value, Exercisable | $15,100 | ' |
Stockholders_Equity_Stock_Opti1
Stockholders' Equity - Stock Options (Schedule of Stock Options Outstanding and Exercisable) (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' | ' |
Options Outstanding, Number | 1,967 | ' |
Weighted-Average Remaining Contractual Life (Yrs.) | '8 years | '8 years 1 month 6 days |
Options Outstanding, Weighted-Average Exercise Price | $15.22 | ' |
Options Exercisable, Number | 866 | ' |
Options Exercisable, Weighted-Average Exercise Price | $11.07 | ' |
$0.08 - $0.14 | ' | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' | ' |
Exercise Price Range Lower Limit | $0.08 | ' |
Exercise Price Range Upper Limit | $0.14 | ' |
Options Outstanding, Number | 29 | ' |
Weighted-Average Remaining Contractual Life (Yrs.) | '1 year 4 months 24 days | ' |
Options Outstanding, Weighted-Average Exercise Price | $0.09 | ' |
Options Exercisable, Number | 29 | ' |
Options Exercisable, Weighted-Average Exercise Price | $0.09 | ' |
$0.14 - $1.90 | ' | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' | ' |
Exercise Price Range Lower Limit | $0.14 | ' |
Exercise Price Range Upper Limit | $1.90 | ' |
Options Outstanding, Number | 3 | ' |
Weighted-Average Remaining Contractual Life (Yrs.) | '4 years 7 months 6 days | ' |
Options Outstanding, Weighted-Average Exercise Price | $1.36 | ' |
Options Exercisable, Number | 3 | ' |
Options Exercisable, Weighted-Average Exercise Price | $1.36 | ' |
$2.04 - $8.18 | ' | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' | ' |
Exercise Price Range Lower Limit | $2.04 | ' |
Exercise Price Range Upper Limit | $8.18 | ' |
Options Outstanding, Number | 248 | ' |
Weighted-Average Remaining Contractual Life (Yrs.) | '6 years | ' |
Options Outstanding, Weighted-Average Exercise Price | $3.53 | ' |
Options Exercisable, Number | 240 | ' |
Options Exercisable, Weighted-Average Exercise Price | $3.47 | ' |
$11.45 - $17.41 | ' | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' | ' |
Exercise Price Range Lower Limit | $11.45 | ' |
Exercise Price Range Upper Limit | $17.41 | ' |
Options Outstanding, Number | 1,230 | ' |
Weighted-Average Remaining Contractual Life (Yrs.) | '8 years 1 month 6 days | ' |
Options Outstanding, Weighted-Average Exercise Price | $14.90 | ' |
Options Exercisable, Number | 577 | ' |
Options Exercisable, Weighted-Average Exercise Price | $14.51 | ' |
$17.50 - $27.64 | ' | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' | ' |
Exercise Price Range Lower Limit | $17.50 | ' |
Exercise Price Range Upper Limit | $27.64 | ' |
Options Outstanding, Number | 403 | ' |
Weighted-Average Remaining Contractual Life (Yrs.) | '9 years 4 months 24 days | ' |
Options Outstanding, Weighted-Average Exercise Price | $22.78 | ' |
Options Exercisable, Number | 17 | ' |
Options Exercisable, Weighted-Average Exercise Price | $22.15 | ' |
$28.29 - $29.14 | ' | ' |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | ' | ' |
Exercise Price Range Lower Limit | $28.29 | ' |
Exercise Price Range Upper Limit | $29.14 | ' |
Options Outstanding, Number | 54 | ' |
Weighted-Average Remaining Contractual Life (Yrs.) | '10 years | ' |
Options Outstanding, Weighted-Average Exercise Price | $28.68 | ' |
Options Exercisable, Number | ' | ' |
Options Exercisable, Weighted-Average Exercise Price | ' | ' |
Stockholders_Equity_Stock_Opti2
Stockholders' Equity - Stock Options (Schedule of Assumptions used to Calculate Fair Value of Common Stock Options) (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of assumptions used to calculate fair value | ' | ' | ' |
Estimated dividend yield | 0.00% | ' | ' |
Stock Options | ' | ' | ' |
Schedule of assumptions used to calculate fair value | ' | ' | ' |
Estimated dividend yield | 0.00% | 0.00% | 0.00% |
Expected stock price volatility, minimum | 46.42% | 60.00% | 80.00% |
Expected stock price volatility, maximum | 55.00% | 80.00% | 90.00% |
Weighted-average risk-free interest rate, minimum | 0.90% | 0.80% | 1.10% |
Weighted-average risk-free interest rate, maximum | 2.00% | 1.50% | 2.70% |
Expected life of options (in years) | '6 years 3 months | '6 years 3 months | '6 years 3 months |
Stockholders_Equity_Employee_S
Stockholders' Equity - Employee Stock Purchase Plan (Schedule of Assumptions used to Calculate Fair Value of Stock Purchase Rights) (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of assumptions used to calculate fair value | ' | ' |
Estimated dividend yield | 0.00% | ' |
Stock Purchase Plan | ' | ' |
Schedule of assumptions used to calculate fair value | ' | ' |
Estimated dividend yield | 0.00% | 0.00% |
Expected stock price volatility, minimum | 46.69% | ' |
Expected stock price volatility, maximum | 52.22% | ' |
Expected stock price volatility | ' | 57.30% |
Weighted-average risk-free interest rate, minimum | 0.07% | 0.13% |
Weighted-average risk-free interest rate, maximum | 0.11% | 0.17% |
Expected life of options (in years) | '6 months | ' |
Stock Purchase Plan | Minimum | ' | ' |
Schedule of assumptions used to calculate fair value | ' | ' |
Expected life of options (in years) | ' | '6 months |
Stock Purchase Plan | Maximum | ' | ' |
Schedule of assumptions used to calculate fair value | ' | ' |
Expected life of options (in years) | ' | '1 year |
Stockholders_Equity_Preferred_
Stockholders' Equity - Preferred Stock (Narrative) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Preferred stock, shares authorized | 5,000 | ' |
Preferred stock, par value | $0.00 | ' |
Preferred stock shares outstanding | 0 | 0 |
Preferred stock shares issued | 0 | 0 |
Series A Redeemable Preferred Stock | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Preferred stock, shares authorized | 222 | ' |
Stockholders_Equity_Stock_Ince1
Stockholders' Equity - Stock Incentive Plan (Narrative) (Detail) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Stock incentive plan, shares authorized for grant | 3,500 |
Shares available for issuance | 3,989 |
Common stock options | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' |
Vesting period | '4 years |
Contractual term of options | '10 years |
Stockholders_Equity_Restricted2
Stockholders' Equity - Restricted Stock (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restricted Stock Units | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Unrecognized compensation cost | $551 | ' | ' |
Weighted average period over which unrecognized compensation cost is expected to be recognized | '2 years 8 months 12 days | ' | ' |
Stock-based compensation expense | 500 | 256 | ' |
Restricted Stock | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense | 41 | 110 | 222 |
Repurchase of restricted stock | 2 | ' | 28 |
Repurchase of restricted stock, value | $2 | ' | $28 |
Stockholders_Equity_Stock_Opti3
Stockholders' Equity - Stock Options (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Spend Radar | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense related to earn-out arrangement | $1,252 | $300 | ' |
Aecsoft | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense related to earn-out arrangement | 976 | 1,466 | 1,466 |
Common stock options | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Aggregate intrinsic value of options exercised | 3,295 | 1,774 | 1,900 |
Unrecognized compensation cost | 10,527 | ' | ' |
Weighted average period over which unrecognized compensation cost is expected to be recognized | '2 years 10 months 2 days | ' | ' |
Stock-based compensation expense | 3,890 | 2,925 | 2,261 |
Weighted average grant date fair value per share for stock options granted | $10.34 | $9.22 | $10.68 |
Aggregate fair value of stock options vested | $3,481 | $3,408 | $1,581 |
Stockholders_Equity_Employee_S1
Stockholders' Equity - Employee Stock Purchase Plan (Narrative) (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Shares available for issuance | 3,989 | ' |
Employee Stock Purchase Plan | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Employee stock purchase plan, maximum contribution rate | 10.00% | ' |
Employee stock purchase plan, percentage of per share purchase price, lesser of fair market value on offering date or purchase date | 'lessor of 85% | ' |
Employee stock purchase plan, maximum annual contribution | $25 | ' |
Shares available for issuance | 943 | ' |
Stock-based compensation expense | $273 | $140 |
Income_Taxes_Components_of_Inc
Income Taxes - (Components of Income (Loss) Before Income Taxes) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components of (loss) income before income taxes | ' | ' | ' |
Domestic | ($5,110) | ($940) | $5,695 |
Foreign | ' | -133 | -81 |
(Loss) income before income taxes | ($5,110) | ($1,073) | $5,614 |
Income_Taxes_Schedule_of_Incom
Income Taxes - (Schedule of Income Tax Expense (Benefit)) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current | ' | ' | ' |
Federal | $14 | $89 | $100 |
Foreign | ' | ' | ' |
State | 45 | 69 | 199 |
Total, current | 59 | 158 | 299 |
Deferred | ' | ' | ' |
Federal | -1,825 | 76 | 2,240 |
Foreign | ' | ' | ' |
State | 1,390 | -131 | 241 |
Total, deferred | -435 | -55 | 2,481 |
Income tax (benefit) expense | ($376) | $103 | $2,780 |
Income_Taxes_Reconciliation_of
Income Taxes - (Reconciliation of Statutory to Effective Tax Rate) (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconciliation of the statutory income tax rate to the effective income tax rate | ' | ' | ' |
US federal statutory rate | 34.00% | 34.00% | 34.00% |
State taxes (net of federal benefit) | 3.00% | 6.00% | 5.00% |
Foreign rate differential | 0.00% | -18.00% | 0.00% |
Branch loss benefit at statutory rate | 0.00% | 95.00% | 0.00% |
Stock compensation expense | -7.00% | 2.00% | 0.00% |
Stock acquisition — additional purchase price | 0.00% | -51.00% | 8.00% |
Nondeductible meals and entertainment | -1.00% | -4.00% | 2.00% |
Research and development tax credits | 10.00% | 0.00% | -1.00% |
Expiration of state loss carryforwards | 0.00% | -168.00% | 0.00% |
Expiration of federal loss carryforwards | 0.00% | -57.00% | 0.00% |
Change in valuation allowance | -12.00% | 141.00% | 0.00% |
Payable reclass | 0.00% | 3.00% | 0.00% |
Change in state effective tax rate | -19.00% | 0.00% | 0.00% |
Provision to return adjustments | 0.00% | 6.00% | 0.00% |
Acquisition costs | -1.00% | 0.00% | 0.00% |
Other | 0.00% | 1.00% | 2.00% |
Effective tax rate | 7.00% | -10.00% | 50.00% |
Income_Taxes_Schedule_of_Net_D
Income Taxes - (Schedule of Net Deferred Tax Assets) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Compensation accruals | $990 | $352 |
Other accruals | 319 | 34 |
Gross current deferred tax asset | 1,309 | 386 |
Less: valuation allowance for current deferred tax asset | -1,019 | -309 |
Net current deferred tax asset | 290 | 77 |
Net operating loss carryforwards | 79,632 | 65,145 |
Foreign loss carryforward | 2,203 | 896 |
Research and development tax credits | 2,000 | 1,491 |
Deferred revenues | 5,740 | 5,514 |
Stock compensation | 2,288 | 1,242 |
Capitalized earn-out payments | 1,847 | 565 |
Other credits | 406 | 392 |
Other | 496 | 214 |
Gross non-current deferred tax asset | 94,612 | 75,459 |
Less: valuation allowance for non-current deferred tax asset | -72,640 | -58,701 |
Net non-current deferred tax asset | 21,972 | 16,758 |
Total deferred tax assets | 22,262 | 16,835 |
Deferred tax liabilities: | ' | ' |
Depreciation and amortization | 814 | 786 |
Customer contracts | 34 | 81 |
Trade names | 159 | 162 |
Capitalized software costs | 1,942 | 1,333 |
Identifiable intangibles | 8,138 | 1,700 |
Other | ' | 14 |
Total deferred tax liabilities | 11,087 | 4,076 |
Net deferred tax assets | $11,175 | $12,759 |
Income_Taxes_Schedule_of_Chang
Income Taxes - (Schedule of Change in Uncertain Tax Positions) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of changes in uncertain tax positions | ' | ' | ' |
Beginning balance | $515 | $515 | $438 |
Increases related to current year tax position | 326 | ' | ' |
Increases related to prior year tax positions | 183 | ' | 77 |
Ending balance | $1,024 | $515 | $515 |
Income_Taxes_Narrative_Detail
Income Taxes - (Narrative) (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Tax expense attributed to additional valuation allowance | $624 | ' | ' | ' |
Net deferred tax liability | 2,027 | ' | ' | ' |
Alternative minimum tax credits carryforwards | 406 | 392 | ' | ' |
Research and development tax credits carryforwards | 3,025 | ' | ' | ' |
Research and development tax expiration year | 31-Dec-13 | ' | ' | ' |
Unrecognized tax benefits | 1,024 | 515 | 515 | 438 |
Accrued interest or penalties associated with unrecognized tax positions | 0 | 0 | ' | ' |
Recognized interest or penalties | 0 | 0 | 0 | ' |
Federal | ' | ' | ' | ' |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Net operating loss carryforwards | 215,580 | ' | ' | ' |
Net operating loss carryforward expiration | 1-Jan-18 | ' | ' | ' |
Net operating loss carryforwards available for future utilization | 19,042 | ' | ' | ' |
Operating loss carryforward valuation allowance | 196,538 | ' | ' | ' |
Federal | Minimum | ' | ' | ' | ' |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Open Tax Year | '2010 | ' | ' | ' |
Federal | Maximum | ' | ' | ' | ' |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Open Tax Year | '2012 | ' | ' | ' |
State | ' | ' | ' | ' |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Net operating loss carryforwards | 134,253 | ' | ' | ' |
Net operating loss carryforward expiration | 1-Jan-09 | ' | ' | ' |
Net operating loss carryforwards available for future utilization | 66,628 | ' | ' | ' |
Operating loss carryforward valuation allowance | $67,625 | ' | ' | ' |
State | Minimum | ' | ' | ' | ' |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Open Tax Year | '2009 | ' | ' | ' |
State | Maximum | ' | ' | ' | ' |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Open Tax Year | '2011 | ' | ' | ' |
Commitment_and_Contingencies_F
Commitment and Contingencies - Future Minimum Lease Payments (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Future minimum lease payments | ' |
2014 | $2,255 |
2015 | 3,621 |
2016 | 3,527 |
2017 | 2,207 |
2018 | 2,082 |
Thereafter | 11,394 |
Total future minimum lease payments | $25,086 |
Commitments_and_Contingencies_1
Commitments and Contingencies - (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Capital lease obligation | $0 | $0 | ' |
Rent expense recognized under operating leases | $2,378 | $1,777 | $1,023 |
Filing date of lawsuit | 'January 31, 2012 | ' | ' |
Settlement agreement date | 'March 31, 2012 | ' | ' |
Employee_Benefit_Plan_Narrativ
Employee Benefit Plan - (Narrative) (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined contribution plan, Company contribution | $892 | $628 | $454 |
Quarterly_Results_of_Operation2
Quarterly Results of Operations - (unaudited) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of quarterly results of operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $25,848 | $22,513 | $21,205 | $20,665 | $19,704 | $17,173 | $15,180 | $14,408 | $90,231 | $66,465 | $53,438 |
Gross profit | 18,379 | 15,754 | 14,636 | 14,051 | 13,363 | 11,830 | 10,771 | 10,231 | 62,820 | 46,195 | 40,098 |
Net income (loss) | ($1,220) | ($2,382) | ($520) | ($612) | ($2,442) | $713 | $400 | $153 | ($4,734) | ($1,176) | $2,834 |
Net income (loss) per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | ($0.05) | ($0.10) | ($0.02) | ($0.03) | ($0.11) | $0.03 | $0.02 | $0.01 | ($0.20) | ($0.05) | $0.13 |
Diluted | ($0.05) | ($0.10) | ($0.02) | ($0.03) | ($0.11) | $0.03 | $0.02 | $0.01 | ($0.20) | ($0.05) | $0.13 |
Subsequent_Events_Narrative_De
Subsequent Events - (Narrative) (Detail) (USD $) | 1 Months Ended | 1 Months Ended | 1 Months Ended | ||||
In Thousands, unless otherwise specified | Apr. 30, 2013 | Apr. 29, 2013 | Mar. 31, 2013 | Apr. 30, 2012 | Feb. 28, 2014 | Jan. 31, 2014 | Feb. 28, 2014 |
Spend Radar | Spend Radar | Aecsoft | Aecsoft | Subsequent Event | Subsequent Event | Subsequent Event | |
Spend Radar | Spend Radar | Aecsoft | |||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Earn-out compensation paid | ' | $2,400 | ' | ' | ' | $3,600 | ' |
Common stock shares issued under earn-out arrangement | 34 | ' | 122 | 122 | 51 | ' | 81 |