Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 05, 2014 | Jun. 30, 2013 |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'SPSC | ' | ' |
Entity Registrant Name | 'SPS COMMERCE INC | ' | ' |
Entity Central Index Key | '0001092699 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 16,136,234 | ' |
Entity Public Float | ' | ' | $827.40 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $131,294 | $66,050 |
Accounts receivable, less allowance for doubtful accounts of $237 and $227, respectively | 11,611 | 10,940 |
Deferred costs, current | 9,048 | 7,346 |
Deferred income taxes, current | 1,272 | 1,732 |
Prepaid expenses and other current assets | 2,850 | 5,443 |
Total current assets | 156,075 | 91,511 |
PROPERTY AND EQUIPMENT, net | 9,922 | 7,670 |
GOODWILL | 25,487 | 25,487 |
INTANGIBLE ASSETS, net | 17,082 | 20,240 |
OTHER ASSETS | ' | ' |
Deferred costs, net of current portion | 3,684 | 3,202 |
Deferred income taxes, net of current portion | 10,870 | 10,853 |
Other non-current assets | 210 | 238 |
Total assets | 223,330 | 159,201 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 1,798 | 1,857 |
Accrued compensation and benefits | 7,981 | 6,038 |
Accrued expenses and other current liabilities | 2,801 | 1,077 |
Deferred revenue, current | 6,335 | 5,499 |
Total current liabilities | 18,915 | 14,471 |
OTHER LIABILITIES | ' | ' |
Deferred revenue, less current portion | 8,785 | 8,312 |
Deferred rent | 2,857 | 1,601 |
Total liabilities | 30,557 | 24,384 |
COMMITMENTS and CONTINGENCIES | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, $0.001 par value; 5,000,000 shares authorized; 0 shares issued and outstanding | ' | ' |
Common stock, $0.001 par value; 55,000,000 shares authorized; 16,092,121 and 14,812,759 shares issued and outstanding, respectively | 16 | 15 |
Additional paid-in capital | 239,549 | 182,645 |
Accumulated deficit | -46,792 | -47,843 |
Total stockholders' equity | 192,773 | 134,817 |
Total liabilities and stockholder's equity | $223,330 | $159,201 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $237 | $227 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 55,000,000 | 55,000,000 |
Common stock, shares issued | 16,092,121 | 14,812,759 |
Common stock, shares outstanding | 16,092,121 | 14,812,759 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Revenues | $104,391 | $77,106 | $57,969 |
Cost of revenues | 31,781 | 22,040 | 15,366 |
Gross profit | 72,610 | 55,066 | 42,603 |
Operating expenses | ' | ' | ' |
Sales and marketing | 39,621 | 30,037 | 23,836 |
Research and development | 10,870 | 8,166 | 5,838 |
General and administrative | 17,189 | 13,524 | 11,151 |
Amortization of intangible assets | 3,158 | 1,767 | 643 |
Total operating expenses | 70,838 | 53,494 | 41,468 |
Income from operations | 1,772 | 1,572 | 1,135 |
Other income (expense) | ' | ' | ' |
Interest expense | ' | -27 | ' |
Interest income | 112 | 46 | 89 |
Other expense | -147 | -248 | -140 |
Total other expense, net | -35 | -229 | -51 |
Income before income taxes | 1,737 | 1,343 | 1,084 |
Income tax (expense) benefit | -686 | -121 | 12,619 |
Net income | $1,051 | $1,222 | $13,703 |
Net income per share | ' | ' | ' |
Basic | $0.07 | $0.09 | $1.15 |
Diluted | $0.07 | $0.09 | $1.08 |
Weighted average common shares used to compute net income per share | ' | ' | ' |
Basic | 15,201 | 13,056 | 11,960 |
Diluted | 15,931 | 13,910 | 12,744 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
In Thousands, except Share data | ||||
Beginning Balance at Dec. 31, 2010 | $43,508 | $12 | $106,264 | ($62,768) |
Beginning Balance, Shares at Dec. 31, 2010 | ' | 11,849,572 | ' | ' |
Stock-based compensation | 1,768 | ' | 1,768 | ' |
Exercise of stock options | 621 | ' | 621 | ' |
Exercise of stock options, Shares | 289,286 | 289,286 | ' | ' |
Stock offering costs | -108 | ' | -108 | ' |
Excess tax benefit of stock options exercised | 61 | ' | 61 | ' |
Net income | 13,703 | ' | ' | 13,703 |
Ending Balance at Dec. 31, 2011 | 59,553 | 12 | 108,606 | -49,065 |
Ending Balance, Shares at Dec. 31, 2011 | ' | 12,138,858 | ' | ' |
Stock-based compensation | 2,755 | ' | 2,755 | ' |
Exercise of stock options | 1,564 | 1 | 1,563 | ' |
Exercise of stock options, Shares | 468,717 | 468,717 | ' | ' |
Excess tax benefit of stock options exercised | 72 | ' | 72 | ' |
Employee stock purchase plan | 448 | ' | 448 | ' |
Employee stock purchase plan, Shares | ' | 17,332 | ' | ' |
Stock issued for acquisition | 11,395 | ' | 11,395 | ' |
Stock issued for acquisition, Shares | ' | 347,852 | ' | ' |
Stock offering, net of costs | 57,808 | 2 | 57,806 | ' |
Stock offering, net of costs, Shares | ' | 1,840,000 | ' | ' |
Net income | 1,222 | ' | ' | 1,222 |
Ending Balance at Dec. 31, 2012 | 134,817 | 15 | 182,645 | -47,843 |
Ending Balance, Shares at Dec. 31, 2012 | ' | 14,812,759 | ' | ' |
Stock-based compensation | 4,203 | ' | 4,203 | ' |
Exercise of stock options and issuance of restricted stock | 3,735 | ' | 3,735 | ' |
Exercise of stock options, Shares | 469,225 | ' | ' | ' |
Exercise of stock options and issuance of restricted stock, Shares | ' | 497,248 | ' | ' |
Excess tax benefit of stock options exercised | 156 | ' | 156 | ' |
Employee stock purchase plan | 1,242 | ' | 1,242 | ' |
Employee stock purchase plan, Shares | ' | 32,114 | ' | ' |
Stock offering, net of costs | 47,569 | 1 | 47,568 | ' |
Stock offering, net of costs, Shares | ' | 750,000 | ' | ' |
Net income | 1,051 | ' | ' | 1,051 |
Ending Balance at Dec. 31, 2013 | $192,773 | $16 | $239,549 | ($46,792) |
Ending Balance, Shares at Dec. 31, 2013 | ' | 16,092,121 | ' | ' |
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 income | $1,051 | $1,222 | $13,703 |
Reconciliation of net income to net cash provided by operating activities | ' | ' | ' |
Deferred income taxes | 443 | -15 | -12,708 |
Depreciation and amortization of property and equipment | 4,893 | 3,151 | 2,004 |
Amortization of intangible assets | 3,158 | 1,767 | 643 |
Provision for doubtful accounts | 479 | 383 | 425 |
Stock-based compensation | 4,203 | 2,755 | 1,768 |
Changes in assets and liabilities, net of effect of acquisitions | ' | ' | ' |
Accounts receivable | -1,150 | -2,067 | -2,810 |
Deferred costs | -2,184 | -2,290 | -1,595 |
Prepaid expenses and other current assets | 2,593 | -3,534 | -882 |
Other assets | 28 | -42 | -10 |
Accounts payable | -59 | 446 | 413 |
Accrued compensation and benefits | 1,943 | 920 | 1,541 |
Accrued expenses and other current liabilities | -108 | 101 | 140 |
Deferred rent | 1,644 | 1,481 | ' |
Deferred revenue | 1,309 | 2,551 | 1,853 |
Net cash provided by operating activities | 18,243 | 6,829 | 4,485 |
Cash flows from investing activities | ' | ' | ' |
Business acquisitions, net of cash acquired | ' | -26,262 | -10,841 |
Purchases of property and equipment | -5,701 | -5,983 | -2,584 |
Net cash used in investing activities | -5,701 | -32,245 | -13,425 |
Cash flows from financing activities | ' | ' | ' |
Payments of capital lease obligations | ' | -410 | -122 |
Borrowings on line of credit | ' | 11,000 | ' |
Payments on line of credit | ' | -11,000 | ' |
Net proceeds from stock offerings | 47,738 | 57,940 | ' |
Stock offering costs | -169 | -132 | -108 |
Net proceeds from exercise of options to purchase common stock | 3,735 | 1,563 | 621 |
Excess tax benefit from exercise of options to purchase common stock | 156 | 72 | 61 |
Net proceeds from employee stock purchase plan | 1,242 | 448 | ' |
Net cash provided by financing activities | 52,702 | 59,481 | 452 |
Net increase (decrease) in cash and cash equivalents | 65,244 | 34,065 | -8,488 |
Cash and cash equivalents at beginning of period | 66,050 | 31,985 | 40,473 |
Cash and cash equivalents at end of period | 131,294 | 66,050 | 31,985 |
Supplemental disclosure of cash flow information | ' | ' | ' |
Cash paid for interest | ' | 27 | 3 |
Cash paid for income taxes | 55 | 47 | 126 |
Noncash financing activities: | ' | ' | ' |
Common stock issued for business acquisition | ' | $11,396 | ' |
General
General | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
General | ' |
NOTE A – General | |
Business Description | |
We are a leading provider of cloud-based supply chain management solutions, providing prewired, proven integrations and comprehensive retail performance analytics to thousands of customers worldwide. We provide our solutions through the SPS Commerce platform, a cloud-based software suite that improves the way suppliers, retailers, distributors and other customers manage and fulfill orders. We derive the majority of our revenues from thousands of monthly recurring subscriptions from businesses that utilize our solutions. | |
Basis of Presentation | |
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of SPS Commerce, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in the consolidated financial statements. | |
Use of Estimates | |
Preparing financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |
Business Combinations | |
We recognize separately from goodwill the fair value of the assets acquired and the liabilities assumed at the acquisition date. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date amounts of the assets acquired and the liabilities assumed. Assets acquired include tangible and intangible assets. We determine the value and useful lives of purchased intangible assets with the assistance of an independent third-party valuation firm using certain estimates and assumptions. | |
While we use estimates and assumptions that we believe are reasonable as a part of the purchase price allocation process to accurately value the assets acquired and the liabilities assumed at the acquisition date, they are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of the assets acquired and the liabilities assumed. Any such adjustments would be recorded as an offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair values, whichever comes first, any subsequent adjustments would be recorded in our consolidated statements of income. | |
Segment Information | |
We operate in and report on one segment, supply chain management solutions. | |
Risk and Uncertainties | |
We rely on hardware and software licensed from third parties to offer our on-demand solutions. Our management believes alternate sources are available; however, disruption or termination of these relationships could adversely affect our operating results in the near term. | |
Fair Value of Financial Instruments | |
The carrying amounts of our financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable and other accrued expenses, approximates fair value due to their short maturities. | |
Concentration of Credit Risk | |
Financial instruments that potentially subject us to concentrations of credit risk consist principally of temporary cash and cash equivalents in financial institutions in excess of federally insured limits and trade accounts receivable. Temporary cash investments are held with financial institutions that we believe are subject to minimal risk. | |
Cash and Cash Equivalents | |
Cash and cash equivalents consist of cash and highly liquid investments with original maturities when purchased of less than 90 days. | |
Accounts Receivable | |
Accounts receivable are initially recorded upon the sale of solutions to customers. Credit is granted in the normal course of business without collateral. Accounts receivable are stated net of allowances for doubtful accounts, which represent estimated losses resulting from the inability of customers to make the required payments. Accounts that are outstanding longer than the contractual terms are considered past due. When determining the allowances for doubtful accounts, we take several factors into consideration including the overall composition of the accounts receivable aging, our prior history of accounts receivable write-offs, the type of customers and our day-to-day knowledge of specific customers. We write off accounts receivable when they become uncollectible. Changes in the allowances for doubtful accounts are recorded as bad debt expense and are included in general and administrative expense in our consolidated statements of income. | |
Property and Equipment | |
Property and equipment, including assets acquired under capital lease obligations, are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the shorter of the estimated useful lives of the individual assets or the lease term. The estimated useful lives are: | |
Computer equipment and purchased software: 2 to 5 years | |
Office equipment and furniture: 5 to 7 years | |
Leasehold improvements: 2 to 7 years | |
Significant additions or improvements extending asset lives beyond one year are capitalized, while repairs and maintenance are charged to expense as incurred. The assets and related accumulated depreciation and amortization accounts are adjusted for asset retirements and disposals with the resulting gain or loss included in net income. | |
Research and Development | |
Research and development costs primarily include maintenance and data conversion activities related to our cloud-based supply chain management solutions and are expensed as incurred. | |
Goodwill | |
Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. We test goodwill for impairment annually at December 31, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test is conducted by comparing the fair value of the net assets with the carrying value of the reporting unit. Fair value is determined using the direct market observation of market price and outstanding equity of the reporting unit at December 31. If the carrying value of the goodwill exceeds the fair value of the reporting unit, goodwill may be impaired. If this occurs, the fair value is then allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of goodwill. This implied fair value is then compared to the carrying amount of goodwill and, if it is less, we would recognize an impairment loss. | |
Intangible Assets | |
Assets acquired in business combinations may include identifiable intangible assets such as subscriber relationships and non-competition agreements. We recognize separately from goodwill the fair value of the identifiable intangible assets acquired. We have determined the fair value and useful lives of our purchased intangible assets with the assistance of a third-party valuation firm using certain estimates and assumptions. | |
The purchased intangible assets are being amortized on a straight-line basis over their estimated useful lives, which is three to nine years for subscriber relationships and two to five years for non-competition agreements. | |
Impairment of Long-Lived Assets | |
We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The carrying amount of a long-lived asset is not recoverable if the carrying amount of an asset group exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the assets at the date it is tested for recoverability, whether in use or under development. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. | |
Revenue Recognition | |
We generate revenues by providing a number of solutions to our customers. These solutions include Trading Partner Integration, Trading Partner Enablement and Trading Partner Intelligence. All of our solutions are hosted applications that allow customers to meet their supply chain management requirements. Sales taxes are presented on a net basis within revenue. | |
Revenues are recorded when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the fee is fixed or determinable, and (4) collectability is probable. If collection is not considered probable, revenues are recognized when the fees are collected. | |
Fees related to our Trading Partner Integration, Trading Partner Enablement and Trading Partner Intelligence solutions consist of two revenue sources: set-up fees and recurring monthly fees. Set-up fees are specific for each connection a customer has with a trading partner and most of our customers have connections with numerous trading partners. Set-up fees are nonrefundable upfront fees that do not have standalone value to our customer and are not separable from the recurring monthly fees. All set-up fees and related costs are deferred and recognized ratably over the average life of the connection between the customer and the trading partner, which is approximately two years. We begin recognizing set-up fee revenue once the connection is established. Set-up fees for which connections have not yet been established are classified as long-term. We continue to evaluate the length of the amortization period as more experience is gained with contract cancellations and technology changes requested by our customers. It is possible that, in the future, the period over which such subscription set-up fees and costs are amortized may be adjusted. Any change in our estimate of the average connection life will affect our future results of operations. The recurring monthly fees are comprised of both fixed and transaction-based fees that are recognized as earned. | |
Stock-Based Compensation | |
We recognize the cost of all share-based payments to employees, including grants of employee stock options, in the financial statements based on the grant date fair value of those awards. This cost is recognized over the period for which an employee is required to provide service in exchange for the award. Benefits associated with tax deductions in excess of recognized compensation expense are reported as a cash flow from financing activities. | |
We estimate the fair value of options granted using the Black-Scholes option pricing model. The estimation of stock awards that will ultimately vest requires judgment, and to the extent actual results differ from our estimates, such amounts will be recorded as an adjustment in the period estimates are revised. In valuing share-based awards, judgment is required in determining the expected volatility of common stock and the expected term individuals will hold their share-based awards prior to exercising. Expected volatility of the stock is based on a peer group in the industry in which we do business because we do not have sufficient historical volatility data for our own common stock. The expected term of the options is based on the simplified method which does not consider historical or expected employee exercise behavior. | |
Advertising Costs | |
Advertising costs are charged to expense as incurred. Advertising costs were approximately $61,000, $150,000 and $93,000 for the years ended December 31, 2013, 2012 and 2011, respectively. Advertising costs are included in sales and marketing expenses in our consolidated statements of income. | |
Income Taxes | |
We account for income taxes using the liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when it is not “more likely than not” that the deferred tax asset will be utilized. | |
We assess our ability to realize our deferred tax assets on a regular and periodic basis. Realization of our deferred tax assets is contingent upon future taxable earnings. Accordingly, this assessment requires significant estimates and judgment. If the estimates of future taxable income vary from actual results, our assessment regarding the realization of these deferred tax assets could change. Future changes in the estimated amount of deferred taxes expected to be realized will be reflected in our consolidated financial statements in the period the estimate is changed, with a corresponding adjustment to our operating results. | |
We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would “more likely than not” sustain the position following an audit. For tax positions meeting the “more likely than not” threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. | |
Net Income Per Share | |
Basic net income per share has been computed using the weighted average number of shares of common stock outstanding during each period. Diluted net income per share also includes the impact of our outstanding potential common shares, including options, restricted stock units and awards. Potential common shares that are anti-dilutive are excluded from the calculation of diluted net income per share. | |
Recent Accounting Pronouncements | |
We have evaluated all recent accounting pronouncements and believe that none of them will have a material effect on our consolidated financial statements. |
Business_Acquisitions
Business Acquisitions | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Combinations [Abstract] | ' | ||||||||
Business Acquisitions | ' | ||||||||
NOTE B – Business Acquisitions | |||||||||
Edifice | |||||||||
On August 6, 2012, we entered into an asset purchase agreement with Edifice Information Management Systems, Inc. (“Edifice”), a privately-held information services company specializing in the collection, analysis and distribution of point-of-sale data used by retailers and suppliers to improve their supply chain efficiencies. We completed the asset purchase on August 7, 2012. Under the asset purchase agreement, we purchased and acquired substantially all of the assets of Edifice for $26.3 million in cash and 347,852 shares of our common stock. We also assumed certain liabilities of Edifice. This acquisition increased our point-of-sale analytic offerings, expanded our base of recurring revenue customers and added suppliers to our network. | |||||||||
Purchase Price Allocation | |||||||||
We accounted for the acquisition as a business combination. We allocated the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. We engaged a third-party valuation firm to assist us in the determination of the value of the purchased intangible assets. The excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. Goodwill is attributed to a trained workforce and other buyer-specific value resulting from expected synergies, including long-term cost savings, which are not included in the fair values of assets. Goodwill will not be amortized; however it is deductible for tax purposes. | |||||||||
During the fourth quarter of 2012, we completed our evaluation of the purchase price allocation and there were no adjustments to the purchase price or net assets acquired. | |||||||||
The purchase price consisted of the following (in thousands): | |||||||||
Cash | $ | 26,275 | |||||||
SPS Commerce, Inc. common stock | 11,396 | ||||||||
$ | 37,671 | ||||||||
We borrowed $11.0 million under our existing line of credit to fund a portion of the cash paid for the acquisition. The number of shares of our common stock issued for the acquisition was 347,852 shares as calculated according to the terms of the purchase agreement. The fair value of the shares issued was determined using the closing price of our common stock on August 6, 2012. | |||||||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): | |||||||||
Current assets | $ | 1,457 | |||||||
Property and equipment | 1,456 | ||||||||
Goodwill | 19,634 | ||||||||
Intangible assets | 16,240 | ||||||||
Other assets | 116 | ||||||||
Current liabilities | (1,232 | ) | |||||||
$ | 37,671 | ||||||||
Purchased Intangible Assets | |||||||||
The following table summarizes the estimated fair value of the purchased intangible assets and their estimated useful lives: | |||||||||
Purchased Intangible Assets | Estimated | Estimated | |||||||
Fair Value | Life | ||||||||
(in thousands) | (in years) | ||||||||
Subscriber relationships | $ | 15,980 | 9 | ||||||
Non-competition agreements | 260 | 5 | |||||||
Total | $ | 16,240 | |||||||
The purchased intangible assets are being amortized on a straight-line basis over their estimated useful lives. Amortization expense related to these intangible assets was $1.8 million for the year ended December 31, 2013 and $727,000 for the period from August 7, 2012 through December 31, 2012. | |||||||||
Acquisition-Related Costs and Post-Acquisition Operating Results | |||||||||
Acquisition-related costs were $212,000 and are included in our consolidated statements of income for the year ended December 31, 2012. The operating results of Edifice have been included in our consolidated financial statements from August 7, 2012, the closing date of the acquisition. For the period from August 7, 2012 through December 31, 2012, approximately $5.0 million of our revenues were derived from Edifice customers. The amount of operating income or loss from Edifice was not separately identifiable due to our integration. | |||||||||
Unaudited Pro Forma Financial Information | |||||||||
The unaudited pro forma financial information in the table below presents the combined operating results of SPS Commerce and Edifice as if the acquisition had occurred on January 1, 2011. The unaudited pro forma information includes the historical operating results of each company and pro forma adjustments for the approximate $1.8 million of annual amortization expense related to purchased intangible assets and the additional impact on the provision or benefit for income taxes, resulting from the combined income and intangible amortization expense, using our statutory blended income tax rate of 36.5%. | |||||||||
Year Ended | |||||||||
December 31, | |||||||||
(in thousands, except per share data) | 2012 | 2011 | |||||||
Pro forma total revenue | $ | 83,478 | $ | 68,543 | |||||
Pro forma net income | 1,055 | 12,757 | |||||||
Pro forma net income per share | |||||||||
Basic | 0.08 | 1.04 | |||||||
Diluted | 0.07 | 0.97 | |||||||
The unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have actually been reported had the acquisition occurred on January 1, 2011, nor is it necessarily indicative of our results of operations for any future periods. | |||||||||
Direct EDI | |||||||||
On May 17, 2011, we entered into an asset purchase agreement with Direct EDI LLC, a privately-held provider of cloud-based integration solutions for electronic data interchange, and we completed the asset purchase on May 18, 2011. Under the asset purchase agreement, we purchased and acquired substantially all of the assets of Direct EDI for $10.8 million in cash and assumed certain liabilities of Direct EDI. The acquisition of Direct EDI expanded our base of recurring revenue customers. | |||||||||
Purchase Price Allocation | |||||||||
We accounted for the acquisition as a business combination. We allocated the purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. We engaged a third-party valuation firm to assist us in the determination of the value of the purchased intangible assets. The excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. Goodwill is attributed to a trained workforce and other buyer-specific value resulting from expected synergies, including long-term cost savings that are not included in the fair values of assets. Goodwill will not be amortized; however it is deductible for tax purposes. During the fourth quarter of 2011, we completed our evaluation of the purchase price allocation and recorded a purchase price adjustment of approximately $25,000 related to working capital. | |||||||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): | |||||||||
Current assets | $ | 195 | |||||||
Property and equipment | 42 | ||||||||
Intangible assets | 6,120 | ||||||||
Goodwill | 4,688 | ||||||||
Current liabilities | (204 | ) | |||||||
Total purchase price | $ | 10,841 | |||||||
Purchased Intangible Assets | |||||||||
The following table summarizes the estimated fair value of the purchased intangible assets and their estimated useful lives: | |||||||||
Purchased Intangible Assets | Estimated | Estimated | |||||||
Fair Value | Life | ||||||||
(in thousands) | (in years) | ||||||||
Subscriber relationships | $ | 5,250 | 7 | ||||||
Non-competition agreements | 870 | 3 | |||||||
Total | $ | 6,120 | |||||||
The purchased intangible assets are being amortized on a straight-line basis over their estimated useful lives. Amortization expense related to these intangible assets was $1.0 million for each of the years ended December 31, 2013 and 2012 and $643,000 for the year ended December 31, 2011. | |||||||||
Acquisition-Related Costs and Post-Acquisition Operating Results | |||||||||
Acquisition-related costs were approximately $232,000 and are included in general and administrative expense in our consolidated statements of income for the year ended December 31, 2011. The operating results of Direct EDI have been included in our consolidated financial statements from May 18, 2011, the closing date of the acquisition. For the year ended December 31, 2011, approximately $2.7 million of our revenues were derived from Direct EDI customers. The amount of operating income or loss from Direct EDI was not separately identifiable due to our integration. | |||||||||
Unaudited Pro Forma Financial Information | |||||||||
The unaudited pro forma financial information in the table below presents the combined operating results of SPS Commerce and Direct EDI as if the acquisition had occurred on January 1, 2011. The unaudited pro forma information includes the historical operating results of each company and certain pro forma adjustments, including annual amortization expense for purchased intangible assets of approximately $1.0 million and additional annual compensation expense of approximately $280,000 related to employment arrangements entered into as part of the acquisition. | |||||||||
(in thousands, except per share data) | Year Ended | ||||||||
December 31, | |||||||||
2011 | |||||||||
Pro forma total revenue | $ | 59,815 | |||||||
Pro forma net income | 13,576 | ||||||||
Pro forma net income per share | |||||||||
Basic | 1.14 | ||||||||
Diluted | 1.07 | ||||||||
The unaudited pro forma financial information is presented for informational purposes only and is not necessarily indicative of the results of operations that would have actually been reported had the acquisition occurred on January 1, 2011, nor is it necessarily indicative of our results of operations for any future periods. |
Accounts_Receivable_net
Accounts Receivable, net | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Receivables [Abstract] | ' | ||||||||||||
Accounts Receivable, net | ' | ||||||||||||
NOTE C – Accounts Receivable, net | |||||||||||||
The allowance for doubtful accounts activity, included in accounts receivable, net, was as follows (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balances, January 1 | $ | 227 | $ | 222 | $ | 209 | |||||||
Provision for doubtful accounts | 479 | 383 | 425 | ||||||||||
Write-offs | (504 | ) | (426 | ) | (436 | ) | |||||||
Recoveries | 35 | 48 | 24 | ||||||||||
Balances, December 31 | $ | 237 | $ | 227 | $ | 222 |
Property_and_Equipment_net
Property and Equipment, net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Property and Equipment, net | ' | ||||||||
NOTE D – Property and Equipment, net | |||||||||
Property and equipment, net included the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Computer equipment and purchased software | $ | 18,368 | $ | 13,154 | |||||
Office equipment and furniture | 3,828 | 2,975 | |||||||
Leasehold improvements | 2,682 | 1,784 | |||||||
24,878 | 17,913 | ||||||||
Less: accumulated depreciation and amortization | (14,956 | ) | (10,243 | ) | |||||
$ | 9,922 | $ | 7,670 | ||||||
At December 31, 2013 and 2012, property and equipment, net included approximately $71,000 and $59,000, respectively, of assets held at subsidiary and office locations outside of the United States of America. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets, net | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Goodwill and Intangible Assets, net | ' | ||||||||||||||||||||||||
NOTE E – Goodwill and Intangible Assets, net | |||||||||||||||||||||||||
There was no change in our goodwill for the year ended December 31, 2013. | |||||||||||||||||||||||||
Intangible assets, net included the following (in thousands): | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Carrying | Accumulated | Net | Carrying | Accumulated | Net | ||||||||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||||||||||
Subscriber relationships | $ | 23,160 | $ | (6,376 | ) | $ | 16,784 | $ | 23,160 | $ | (3,850 | ) | $ | 19,310 | |||||||||||
Non-competition agreements | 1,710 | (1,412 | ) | 298 | 1,710 | (780 | ) | 930 | |||||||||||||||||
$ | 24,870 | $ | (7,788 | ) | $ | 17,082 | $ | 24,870 | $ | (4,630 | ) | $ | 20,240 | ||||||||||||
Amortization expense for intangible assets was $3.2 million, $1.8 million and $643,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
Amortization expense for the year ended December 31, 2013 included $290,000 for the impairment of a certain non-competition agreement. | |||||||||||||||||||||||||
At December 31, 2013, future amortization expense for intangible assets was as follows (in thousands): | |||||||||||||||||||||||||
2014 | $ | 2,688 | |||||||||||||||||||||||
2015 | 2,578 | ||||||||||||||||||||||||
2016 | 2,577 | ||||||||||||||||||||||||
2017 | 2,557 | ||||||||||||||||||||||||
2018 | 2,062 | ||||||||||||||||||||||||
Thereafter | 4,620 | ||||||||||||||||||||||||
$ | 17,082 | ||||||||||||||||||||||||
Line_of_Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Line of Credit | ' |
NOTE F – Line of Credit | |
We have a revolving credit agreement with JPMorgan Chase Bank, N.A. which provides for a $20 million revolving credit facility that we may draw upon from time to time, subject to certain terms and conditions, and will mature on September 30, 2016. | |
Interest on amounts borrowed under the credit facility is based on (i) an Adjusted LIBO Rate (as defined in the revolving credit agreement) plus an applicable margin of 175 to 225 basis points based on our net working capital, or (ii) JPMorgan’s prime rate (provided it is not less than the Adjusted One Month LIBO Rate (as defined in the revolving credit agreement)) plus an applicable margin of -25 to 25 basis points based on our net working capital. Interest is payable monthly in arrears. Availability under the credit facility is subject to a borrowing base equal to the sum of 250% of our eligible monthly recurring revenue (as defined in the revolving credit agreement) and all borrowings are due in full no later than the maturity date of the agreement. | |
The revolving credit agreement contains customary representations, warranties, covenants and events of default, including, but not limited to financial covenants requiring us to maintain a fixed charge coverage ratio of not less than 1.20 to 1.00, cash and cash equivalents of not less than $10 million and a minimum number of recurring revenue customers. If an event of default occurs, among other things, the applicable interest rate is subject to an increase of 2% and all outstanding obligations may become immediately due and payable. | |
There were no borrowings under the revolving credit agreement in 2013. In connection with the acquisition of Edifice in 2012 (see Note B), we borrowed $11.0 million under our line of credit to fund a portion of the cash paid for the acquisition. On September 11, 2012, this debt was repaid in full with a portion of the proceeds received from our public offering of common stock on that date (see Note I). | |
As of December 31, 2013, there were no borrowings outstanding, approximately $20.0 million was available for borrowings, and we were in compliance with all covenants under the revolving credit agreement. |
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2013 | |
Payables And Accruals [Abstract] | ' |
Accrued Expenses and Other Current Liabilities | ' |
NOTE G – Accrued Expenses and Other Current Liabilities | |
In the second quarter of 2013, we entered into an agreement to purchase software licenses. At December 31, 2013, our future payments under this agreement, which are included in accrued expenses and other current liabilities in our consolidated balance sheets, were approximately $1.4 million for 2014. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies | ' | ||||
NOTE H – Commitments and Contingencies | |||||
Capital Leases | |||||
In connection with the acquisition of Edifice (see Note B), we assumed certain capital lease obligations for computer equipment and purchased software. As of September 30, 2012, these leases were fully repaid. | |||||
We previously leased certain computer equipment and purchased software under capital leases with an interest rate of 10.75%. These capital lease obligations were fully repaid in 2011. | |||||
Operating Leases | |||||
We are obligated under non-cancellable operating leases primarily for office space. Rent expense charged to operations was $2.8 million, $1.6 million and $963,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
On February 14, 2012, we executed a new lease agreement for our current headquarters location which commenced on November 1, 2012 and expires on April 30, 2020. The lease includes additional square footage upon commencement, an automatic expansion of space on or about September 1, 2013, a right of first offer to lease certain additional space, and two options to extend the term of the lease for three years at a market rate determined in accordance with the lease. In the fourth quarter of 2013, we exercised our right to assume additional space. We have not yet occupied this additional space; however, the future non-cancellable payments are included in the table below. There was also a rent holiday from November 2012 to October 2013 which has been incorporated into our deferred rent calculation. In connection with this new lease, we delivered to the landlord cash or an irrevocable letter of credit for approximately $172,000, subject to increase based on square footage expansion, as security for performance of our obligations under the lease. | |||||
At December 31, 2013, our future minimum payments under operating leases were as follows (in thousands): | |||||
2014 | $ | 1,965 | |||
2015 | 2,055 | ||||
2016 | 1,648 | ||||
2017 | 1,677 | ||||
2018 | 1,748 | ||||
Thereafter | 2,444 | ||||
$ | 11,537 | ||||
Other Contingencies | |||||
We may be involved in various claims and legal actions in the normal course of business. Our management believes that the outcome of any such claims and legal actions will not have a significant adverse effect on our financial position, results of operations or cash flows. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
Stockholders' Equity | ' |
NOTE I – Stockholders’ Equity | |
Common Stock Issued | |
On November 25, 2013, we completed a public stock offering where we issued and sold 750,000 shares of our common stock at a price to the public of $67.00 per share. We received net proceeds of approximately $47.6 million from this offering after payment of approximately $2.7 million of underwriting discounts and commissions and legal, accounting and other fees incurred in connection with the offering. | |
On September 11, 2012, we completed a public stock offering where we issued and sold 1,840,000 shares of our common stock, including 240,000 shares sold pursuant to the exercise in full of the underwriters’ over-allotment option, at a price to the public of $33.50 per share. We received net proceeds of approximately $57.8 million from this offering after payment of approximately $3.8 million of underwriting discounts and commissions and legal, accounting and other fees incurred in connection with the offering. | |
On August 7, 2012, in connection with the acquisition of Edifice (see Note B), we issued 347,852 shares of our common stock. The fair value of the shares issued was determined using the closing price of our common stock on August 6, 2012. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||
Stock-Based Compensation | ' | ||||||||||||
NOTE J – Stock-Based Compensation | |||||||||||||
Our equity compensation plans provide for the grant of incentive and nonqualified stock options, as well as other stock-based awards including restricted stock and restricted stock units, to employees, non-employee directors and other consultants who provide services to us. Restricted stock awards result in the issuance of new shares when granted. For other stock-based awards, new shares are issued when the award is exercised, vested or released according to the terms of the agreement. In January 2013, 888,765 additional shares were reserved for future issuance under our 2010 Equity Incentive Plan. At December 31, 2013, there were approximately 1.8 million shares available for grant under approved equity compensation plans. | |||||||||||||
We recorded non-cash stock-based compensation expense of $4.2 million, $2.8 million and $1.8 million for the years ended December 31, 2013, 2012 and 2011, respectively. This expense was allocated as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cost of revenues | $ | 475 | $ | 382 | $ | 255 | |||||||
Operating expenses | |||||||||||||
Sales and marketing | 1,481 | 895 | 471 | ||||||||||
Research and development | 266 | 140 | 56 | ||||||||||
General and administrative | 1,981 | 1,338 | 986 | ||||||||||
Total stock-based compensation expense | $ | 4,203 | $ | 2,755 | $ | 1,768 | |||||||
As of December 31, 2013, there was approximately $7.2 million of unrecognized stock-based compensation expense under our equity compensation plans, which is expected to be recognized on a straight line basis over a weighted average period of 2.6 years. | |||||||||||||
Stock Options | |||||||||||||
Stock options generally vest over four years and have a contractual term of seven to ten years from the date of grant. Our stock option activity was as follows: | |||||||||||||
Options | Weighted Average | ||||||||||||
(#) | Exercise Price | ||||||||||||
($/share) | |||||||||||||
Outstanding at January 1, 2011 | 1,549,344 | $ | 4.59 | ||||||||||
Granted | 431,790 | 17.04 | |||||||||||
Exercised | (289,286 | ) | 2.15 | ||||||||||
Forfeited | (22,439 | ) | 11.38 | ||||||||||
Outstanding at December 31, 2011 | 1,669,409 | 8.14 | |||||||||||
Granted | 240,831 | 26.38 | |||||||||||
Exercised | (468,717 | ) | 3.35 | ||||||||||
Forfeited | (71,382 | ) | 19.25 | ||||||||||
Outstanding at December 31, 2012 | 1,370,141 | 12.41 | |||||||||||
Granted | 225,439 | 40.64 | |||||||||||
Exercised | (469,225 | ) | 7.96 | ||||||||||
Forfeited | (29,132 | ) | 30.93 | ||||||||||
Outstanding at December 31, 2013 | 1,097,223 | 19.62 | |||||||||||
Of the total outstanding options at December 31, 2013, 642,928 were exercisable with a weighted average exercise price of $12.98 per share. The total outstanding options had a weighted average remaining contractual life of 5.8 years. | |||||||||||||
The fair value of options that vested during the years ended December 31, 2013, 2012 and 2011 was $2.6 million, $2.3 million and $1.3 million, respectively. | |||||||||||||
The intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $20.7 million, $12.1 million and $4.9 million, respectively. The intrinsic value of outstanding options at December 31, 2013, 2012 and 2011 was $50.1 million, $34.1 million and $29.7 million, respectively. | |||||||||||||
The weighted-average fair values per share of options granted during 2013, 2012 and 2011 were $14.60, $10.43 and $8.25, respectively. The fair values of the options granted was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted-average volatility | 41% | 46% | 45% | ||||||||||
Expected dividend yield | — | — | — | ||||||||||
Expected life (in years) | 4.75 | 4.75 | 6.25 | ||||||||||
Risk-free interest rate | 0.68% - 1.37% | 0.61% - 0.82% | 1.58% - 3.05% | ||||||||||
Prior to becoming a public entity in 2010, historic volatility was not available for our shares. As a result, we have estimated volatility based on a peer group of companies, which collectively provided a reasonable basis for estimating volatility. We intend to continue to consistently use the same group of publicly traded peer companies to determine volatility in the future until sufficient information regarding volatility of our share price becomes available or the selected companies are no longer suitable for this purpose. | |||||||||||||
We have not issued dividends on our common stock and do not expect to do so in the foreseeable future. The expected term of the options is based on the simplified method which does not consider historical or expected employee exercise behavior. The estimated pre-vesting forfeiture rate is based on our historical experience. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected life at the grant date. | |||||||||||||
Restricted Stock Units and Awards | |||||||||||||
Restricted stock units vest over four years and, upon vesting, the holder is entitled to receive shares of our common stock. With restricted stock awards, shares of our common stock are issued when the award is granted and the restrictions lapse over one year. | |||||||||||||
Our restricted stock units activity was as follows: | |||||||||||||
Restricted Stock | Weighted Average | ||||||||||||
Units (#) | Grant Date Fair | ||||||||||||
Value ($/share) | |||||||||||||
Outstanding at January 1, 2012 | — | $ | — | ||||||||||
Granted | 75,873 | 26.25 | |||||||||||
Vested and common stock issued | — | — | |||||||||||
Forfeited | (7,632 | ) | 25.32 | ||||||||||
Outstanding at December 31, 2012 | 68,241 | 26.35 | |||||||||||
Granted | 59,695 | 40.06 | |||||||||||
Vested and common stock issued | (17,060 | ) | 26.09 | ||||||||||
Forfeited | (8,232 | ) | 33.85 | ||||||||||
Outstanding at December 31, 2013 | 102,644 | 33.77 | |||||||||||
The number of restricted stock units outstanding at December 31, 2013 included 11,001 units that have vested but for which shares of common stock have not yet been issued pursuant to the terms of the agreement. | |||||||||||||
Our restricted stock awards activity was as follows: | |||||||||||||
Restricted Stock | Weighted Average | ||||||||||||
Awards (#) | Grant Date Fair | ||||||||||||
Value ($/share) | |||||||||||||
Outstanding at January 1, 2012 | — | $ | — | ||||||||||
Restricted common stock issued | 6,330 | 27.55 | |||||||||||
Restrictions lapsed | — | — | |||||||||||
Forfeited | (1,055 | ) | 27.55 | ||||||||||
Outstanding at December 31, 2012 | 5,275 | 27.55 | |||||||||||
Restricted common stock issued | 5,688 | 48.66 | |||||||||||
Restrictions lapsed | (9,541 | ) | 36.99 | ||||||||||
Forfeited | — | — | |||||||||||
Outstanding at December 31, 2013 | 1,422 | 48.66 | |||||||||||
Employee Stock Purchase Plan | |||||||||||||
Effective July 1, 2012, we adopted an employee stock purchase plan which allows participating employees to purchase shares of our common stock at a discount through payroll deductions. The plan is available to all employees subject to certain eligibility requirements. Participating employees may purchase common stock, on a voluntary after tax basis, at a price that is the lower of 85% of the fair market value of one share of common stock at the beginning or end of each stock purchase period. The plan consists of two six-month offering periods, beginning on January 1 and July 1 of each calendar year. A total of 1.2 million shares of common stock are reserved for issuance under the plan. | |||||||||||||
For the offering periods in 2013, we withheld approximately $1.2 million from employees participating in the plan and we purchased 32,114 shares on their behalf. For the offering period in 2012, we withheld approximately $448,000 from employees participating in the plan and we purchased 17,332 shares on their behalf. | |||||||||||||
For the years ended December 31, 2013 and 2012, we recorded approximately $402,000 and $148,000 of stock-based compensation expense associated with the employee stock purchase plan. The fair value was estimated based on the market price of our common stock at the beginning of each offering period and using the Black-Scholes option pricing model with the following assumptions: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Expected volatility | 46% | 46% | |||||||||||
Expected dividend yield | — | — | |||||||||||
Expected life (in years) | 0.5 | 0.5 | |||||||||||
Risk-free interest rate | 0.09% - 0.12% | 0.15% |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Taxes | ' | ||||||||||||
NOTE K – Income Taxes | |||||||||||||
The provision (benefit) for income taxes was as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | 192 | 74 | 89 | ||||||||||
Foreign | 51 | 63 | — | ||||||||||
Deferred | |||||||||||||
Federal | 450 | 188 | (12,282 | ) | |||||||||
State | (7 | ) | (204 | ) | (426 | ) | |||||||
$ | 686 | $ | 121 | $ | (12,619 | ) | |||||||
A reconciliation of the provision (benefit) for income taxes to the statutory federal rate was as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected federal income tax at statutory rate | $ | 593 | $ | 459 | $ | 396 | |||||||
State income taxes, net of federal tax effect | 78 | 31 | 37 | ||||||||||
Tax impact of foreign activity | 44 | (8 | ) | 55 | |||||||||
Permanent book/tax differences | 106 | 23 | 100 | ||||||||||
Change in valuation allowance | 17 | (88 | ) | (1,310 | ) | ||||||||
Release of valuation allowance | — | — | (12,802 | ) | |||||||||
Section 382 limitation | — | — | 415 | ||||||||||
Change in state deferred rate | 53 | (162 | ) | — | |||||||||
Prior year true up | 4 | (135 | ) | 43 | |||||||||
General business credit | (202 | ) | — | — | |||||||||
State net operating loss adjustment | — | — | 413 | ||||||||||
Other | (7 | ) | 1 | 34 | |||||||||
Total provision (benefit) for income taxes | $ | 686 | $ | 121 | $ | (12,619 | ) | ||||||
The significant components of our deferred tax assets (liabilities) were as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Current | |||||||||||||
Current net operating loss and credit carryforwards | $ | 1,258 | $ | 1,615 | |||||||||
Accounts receivable allowance | 157 | 143 | |||||||||||
Stock-based compensation expense | 229 | 154 | |||||||||||
Accrued expenses | 790 | 643 | |||||||||||
Total current deferred tax asset | 2,434 | 2,555 | |||||||||||
Foreign operations | (53 | ) | — | ||||||||||
Deferred operations | (985 | ) | (784 | ) | |||||||||
Total current deferred tax liability | (1,038 | ) | (784 | ) | |||||||||
Valuation allowance | (124 | ) | (39 | ) | |||||||||
Net current deferred tax asset | $ | 1,272 | $ | 1,732 | |||||||||
Non-current | |||||||||||||
Net operating loss and credit carryforwards | $ | 6,145 | $ | 6,474 | |||||||||
Deferred operations | 3,029 | 2,533 | |||||||||||
Stock-based compensation expense | 1,561 | 1,332 | |||||||||||
Depreciation and amortization | 1,159 | 738 | |||||||||||
Other | 34 | 18 | |||||||||||
Total non-current deferred tax asset | 11,928 | 11,095 | |||||||||||
Valuation allowance | (1,058 | ) | (242 | ) | |||||||||
Net non-current deferred tax asset | $ | 10,870 | $ | 10,853 | |||||||||
As of December 31, 2013, we had net operating loss carryforwards of $71.3 million for U.S. federal tax purposes. We also had $30.3 million of various state net operating loss carryforwards. The loss carryforwards for federal tax purposes will expire between 2019 and 2034 if not utilized. The loss carryforwards for state tax purposes will expire between 2014 and 2034 if not utilized. | |||||||||||||
Section 382 of the U.S. Internal Revenue Code generally imposes an annual limitation on the amount of net operating loss carryforwards that might be used to offset taxable income when a corporation has undergone significant changes in stock ownership. We have performed a Section 382 analysis for the time period from our inception through December 8, 2010. During this time period it was determined that we had six separate ownership changes under Section 382. We have not updated the Section 382 analysis subsequent to December 8, 2010; however, we believe there have not been any events subsequent to that date that would materially impact the analysis. We believe that approximately $17.6 million of federal losses will expire unused due to Section 382 limitations. The maximum annual limitation of federal net operating losses under Section 382 is approximately $990,000. This limitation could be further restricted if any ownership changes occur in future years. | |||||||||||||
Our federal and state net operating losses at December 31, 2013 included $37.0 million and $10.2 million, respectively, of income tax deductions in excess of previously recorded tax benefits. Although these additional tax deductions are included in the net operating losses referenced above, the related tax benefit will not be recognized until the deductions reduce our income taxes payable. The tax benefit of these excess deductions will be reflected as a credit to additional paid in capital when recognized. Accordingly, our deferred tax assets are reported net of the excess tax deductions for stock compensation and Section 382 limitations. | |||||||||||||
As of December 31, 2013 we had federal research and development credit carryforwards, net of Section 383 limitations, of $322,000, which, if not utilized, will begin to expire in 2030. We had state research and development credit carryforwards of $82,000, which, if not utilized, will begin to expire in 2025. | |||||||||||||
As of December 31, 2013, we had a valuation allowance against our deferred tax assets of $1.2 million. The valuation allowance is established for various state net operating loss and credit carryforwards that we do not expect to utilize based on our current expectations of future state taxable income. | |||||||||||||
As of December 31, 2013 and 2012, we had income tax receivables of $26,000 and $72,000, respectively, which were included in prepaid expenses and other current assets on the consolidated balance sheets. | |||||||||||||
We are subject to income taxes in the U.S. federal and various state and international jurisdictions. We are generally subject to U.S. federal and state tax examinations for all prior tax years due to our net operating loss carryforwards and the utilization of the carryforwards in years still open under statute. As of December 31, 2013, we are not under any income tax audits by tax authorities. | |||||||||||||
As of December 31, 2013, we do not have any unrecognized tax benefits. It is our practice to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. We do not expect any material changes in our unrecognized tax positions over the next 12 months. |
Net_Income_Per_Share
Net Income Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Net Income Per Share | ' | ||||||||||||
NOTE L – Net Income Per Share | |||||||||||||
The following table presents the components of the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share amounts): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator | |||||||||||||
Net income | $ | 1,051 | $ | 1,222 | $ | 13,703 | |||||||
Denominator | |||||||||||||
Weighted average common shares outstanding, basic | 15,201 | 13,056 | 11,960 | ||||||||||
Options to purchase common stock | 676 | 826 | 784 | ||||||||||
Restricted stock units | 51 | 26 | — | ||||||||||
Employee stock purchase plan | 3 | 2 | — | ||||||||||
Weighted average common shares outstanding, diluted | 15,931 | 13,910 | 12,744 | ||||||||||
Net income per share | |||||||||||||
Basic | $ | 0.07 | $ | 0.09 | $ | 1.15 | |||||||
Diluted | $ | 0.07 | $ | 0.09 | $ | 1.08 | |||||||
For the year ended December 31, 2013, the effect of approximately 1,000 outstanding potential common shares was excluded from the calculation of diluted net income per share because they were anti-dilutive. For the years ended December 31, 2012 and 2011, the effect of all outstanding potential common shares was included in the calculation of diluted net income per share. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Compensation And Retirement Disclosure [Abstract] | ' |
Employee Benefit Plan | ' |
NOTE M – Employee Benefit Plan | |
We sponsor a 401(k) retirement savings plan for our employees. Employees can contribute up to 100% of their salaries. The company will match 25% of the employee’s contribution up to the first 6% of salary. Our matching contributions to the plan, which vest immediately, were $522,000, $372,000 and $287,000 for the years ended December 31, 2013, 2012 and 2011, respectively. |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | ' | ||||||||||||||||
NOTE N – Selected Quarterly Financial Data (Unaudited) | |||||||||||||||||
The following table presents our selected unaudited quarterly statements of income data (in thousands, except per share amounts): | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
2013 | 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||
Revenues | $ | 23,752 | $ | 25,658 | $ | 27,008 | $ | 27,973 | |||||||||
Gross profit | 16,686 | 17,715 | 18,759 | 19,450 | |||||||||||||
Income from operations | 194 | 483 | 371 | 724 | |||||||||||||
Net income | 199 | 288 | 270 | 294 | |||||||||||||
Diluted earnings per share | 0.01 | 0.02 | 0.02 | 0.02 | |||||||||||||
For the Three Months Ended | |||||||||||||||||
2012 | 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||
Revenues | $ | 16,534 | $ | 17,821 | $ | 20,267 | $ | 22,484 | |||||||||
Gross profit | 12,086 | 12,978 | 14,322 | 15,680 | |||||||||||||
Income from operations | 459 | 751 | 138 | 224 | |||||||||||||
Net income | 256 | 426 | 174 | 366 | |||||||||||||
Diluted earnings per share | 0.02 | 0.03 | 0.01 | 0.02 | |||||||||||||
General_Policies
General (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Business Description | ' |
Business Description | |
We are a leading provider of cloud-based supply chain management solutions, providing prewired, proven integrations and comprehensive retail performance analytics to thousands of customers worldwide. We provide our solutions through the SPS Commerce platform, a cloud-based software suite that improves the way suppliers, retailers, distributors and other customers manage and fulfill orders. We derive the majority of our revenues from thousands of monthly recurring subscriptions from businesses that utilize our solutions. | |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of SPS Commerce, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in the consolidated financial statements. | |
Use of Estimates | ' |
Use of Estimates | |
Preparing financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. | |
Business Combinations | ' |
Business Combinations | |
We recognize separately from goodwill the fair value of the assets acquired and the liabilities assumed at the acquisition date. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date amounts of the assets acquired and the liabilities assumed. Assets acquired include tangible and intangible assets. We determine the value and useful lives of purchased intangible assets with the assistance of an independent third-party valuation firm using certain estimates and assumptions. | |
While we use estimates and assumptions that we believe are reasonable as a part of the purchase price allocation process to accurately value the assets acquired and the liabilities assumed at the acquisition date, they are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we may record adjustments to the fair value of the assets acquired and the liabilities assumed. Any such adjustments would be recorded as an offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair values, whichever comes first, any subsequent adjustments would be recorded in our consolidated statements of income. | |
Segment Information | ' |
Segment Information | |
We operate in and report on one segment, supply chain management solutions. | |
Risk and Uncertainties | ' |
Risk and Uncertainties | |
We rely on hardware and software licensed from third parties to offer our on-demand solutions. Our management believes alternate sources are available; however, disruption or termination of these relationships could adversely affect our operating results in the near term. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
The carrying amounts of our financial instruments, which include cash and cash equivalents, accounts receivable, accounts payable and other accrued expenses, approximates fair value due to their short maturities. | |
Concentration of Credit Risk | ' |
Concentration of Credit Risk | |
Financial instruments that potentially subject us to concentrations of credit risk consist principally of temporary cash and cash equivalents in financial institutions in excess of federally insured limits and trade accounts receivable. Temporary cash investments are held with financial institutions that we believe are subject to minimal risk. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents consist of cash and highly liquid investments with original maturities when purchased of less than 90 days. | |
Accounts Receivable | ' |
Accounts Receivable | |
Accounts receivable are initially recorded upon the sale of solutions to customers. Credit is granted in the normal course of business without collateral. Accounts receivable are stated net of allowances for doubtful accounts, which represent estimated losses resulting from the inability of customers to make the required payments. Accounts that are outstanding longer than the contractual terms are considered past due. When determining the allowances for doubtful accounts, we take several factors into consideration including the overall composition of the accounts receivable aging, our prior history of accounts receivable write-offs, the type of customers and our day-to-day knowledge of specific customers. We write off accounts receivable when they become uncollectible. Changes in the allowances for doubtful accounts are recorded as bad debt expense and are included in general and administrative expense in our consolidated statements of income. | |
Property and Equipment | ' |
Property and Equipment | |
Property and equipment, including assets acquired under capital lease obligations, are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the shorter of the estimated useful lives of the individual assets or the lease term. The estimated useful lives are: | |
Computer equipment and purchased software: 2 to 5 years | |
Office equipment and furniture: 5 to 7 years | |
Leasehold improvements: 2 to 7 years | |
Significant additions or improvements extending asset lives beyond one year are capitalized, while repairs and maintenance are charged to expense as incurred. The assets and related accumulated depreciation and amortization accounts are adjusted for asset retirements and disposals with the resulting gain or loss included in net income. | |
Research and Development | ' |
Research and Development | |
Research and development costs primarily include maintenance and data conversion activities related to our cloud-based supply chain management solutions and are expensed as incurred. | |
Goodwill | ' |
Goodwill | |
Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. We test goodwill for impairment annually at December 31, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test is conducted by comparing the fair value of the net assets with the carrying value of the reporting unit. Fair value is determined using the direct market observation of market price and outstanding equity of the reporting unit at December 31. If the carrying value of the goodwill exceeds the fair value of the reporting unit, goodwill may be impaired. If this occurs, the fair value is then allocated to its assets and liabilities in a manner similar to a purchase price allocation in order to determine the implied fair value of goodwill. This implied fair value is then compared to the carrying amount of goodwill and, if it is less, we would recognize an impairment loss. | |
Intangible Assets | ' |
Intangible Assets | |
Assets acquired in business combinations may include identifiable intangible assets such as subscriber relationships and non-competition agreements. We recognize separately from goodwill the fair value of the identifiable intangible assets acquired. We have determined the fair value and useful lives of our purchased intangible assets with the assistance of a third-party valuation firm using certain estimates and assumptions. | |
The purchased intangible assets are being amortized on a straight-line basis over their estimated useful lives, which is three to nine years for subscriber relationships and two to five years for non-competition agreements. | |
Impairment of Long-Lived Assets | ' |
Impairment of Long-Lived Assets | |
We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The carrying amount of a long-lived asset is not recoverable if the carrying amount of an asset group exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the assets at the date it is tested for recoverability, whether in use or under development. An impairment loss is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. | |
Revenue Recognition | ' |
Revenue Recognition | |
We generate revenues by providing a number of solutions to our customers. These solutions include Trading Partner Integration, Trading Partner Enablement and Trading Partner Intelligence. All of our solutions are hosted applications that allow customers to meet their supply chain management requirements. Sales taxes are presented on a net basis within revenue. | |
Revenues are recorded when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred, (3) the fee is fixed or determinable, and (4) collectability is probable. If collection is not considered probable, revenues are recognized when the fees are collected. | |
Fees related to our Trading Partner Integration, Trading Partner Enablement and Trading Partner Intelligence solutions consist of two revenue sources: set-up fees and recurring monthly fees. Set-up fees are specific for each connection a customer has with a trading partner and most of our customers have connections with numerous trading partners. Set-up fees are nonrefundable upfront fees that do not have standalone value to our customer and are not separable from the recurring monthly fees. All set-up fees and related costs are deferred and recognized ratably over the average life of the connection between the customer and the trading partner, which is approximately two years. We begin recognizing set-up fee revenue once the connection is established. Set-up fees for which connections have not yet been established are classified as long-term. We continue to evaluate the length of the amortization period as more experience is gained with contract cancellations and technology changes requested by our customers. It is possible that, in the future, the period over which such subscription set-up fees and costs are amortized may be adjusted. Any change in our estimate of the average connection life will affect our future results of operations. The recurring monthly fees are comprised of both fixed and transaction-based fees that are recognized as earned. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
We recognize the cost of all share-based payments to employees, including grants of employee stock options, in the financial statements based on the grant date fair value of those awards. This cost is recognized over the period for which an employee is required to provide service in exchange for the award. Benefits associated with tax deductions in excess of recognized compensation expense are reported as a cash flow from financing activities. | |
We estimate the fair value of options granted using the Black-Scholes option pricing model. The estimation of stock awards that will ultimately vest requires judgment, and to the extent actual results differ from our estimates, such amounts will be recorded as an adjustment in the period estimates are revised. In valuing share-based awards, judgment is required in determining the expected volatility of common stock and the expected term individuals will hold their share-based awards prior to exercising. Expected volatility of the stock is based on a peer group in the industry in which we do business because we do not have sufficient historical volatility data for our own common stock. The expected term of the options is based on the simplified method which does not consider historical or expected employee exercise behavior. | |
Advertising Costs | ' |
Advertising Costs | |
Advertising costs are charged to expense as incurred. Advertising costs were approximately $61,000, $150,000 and $93,000 for the years ended December 31, 2013, 2012 and 2011, respectively. Advertising costs are included in sales and marketing expenses in our consolidated statements of income. | |
Income Taxes | ' |
Income Taxes | |
We account for income taxes using the liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when it is not “more likely than not” that the deferred tax asset will be utilized. | |
We assess our ability to realize our deferred tax assets on a regular and periodic basis. Realization of our deferred tax assets is contingent upon future taxable earnings. Accordingly, this assessment requires significant estimates and judgment. If the estimates of future taxable income vary from actual results, our assessment regarding the realization of these deferred tax assets could change. Future changes in the estimated amount of deferred taxes expected to be realized will be reflected in our consolidated financial statements in the period the estimate is changed, with a corresponding adjustment to our operating results. | |
We recognize the financial statement benefit of a tax position only after determining that the relevant tax authority would “more likely than not” sustain the position following an audit. For tax positions meeting the “more likely than not” threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. | |
Net Income Per Share | ' |
Net Income Per Share | |
Basic net income per share has been computed using the weighted average number of shares of common stock outstanding during each period. Diluted net income per share also includes the impact of our outstanding potential common shares, including options, restricted stock units and awards. Potential common shares that are anti-dilutive are excluded from the calculation of diluted net income per share. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
We have evaluated all recent accounting pronouncements and believe that none of them will have a material effect on our consolidated financial statements. |
Business_Acquisitions_Tables
Business Acquisitions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Business Purchase Price | ' | ||||||||
The purchase price consisted of the following (in thousands): | |||||||||
Cash | $ | 26,275 | |||||||
SPS Commerce, Inc. common stock | 11,396 | ||||||||
$ | 37,671 | ||||||||
Edifice [Member] | ' | ||||||||
Estimated Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date | ' | ||||||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): | |||||||||
Current assets | $ | 1,457 | |||||||
Property and equipment | 1,456 | ||||||||
Goodwill | 19,634 | ||||||||
Intangible assets | 16,240 | ||||||||
Other assets | 116 | ||||||||
Current liabilities | (1,232 | ) | |||||||
$ | 37,671 | ||||||||
Estimated Fair Value of Purchased Intangible Assets and Estimated Useful Lives | ' | ||||||||
The following table summarizes the estimated fair value of the purchased intangible assets and their estimated useful lives: | |||||||||
Purchased Intangible Assets | Estimated | Estimated | |||||||
Fair Value | Life | ||||||||
(in thousands) | (in years) | ||||||||
Subscriber relationships | $ | 15,980 | 9 | ||||||
Non-competition agreements | 260 | 5 | |||||||
Total | $ | 16,240 | |||||||
Unaudited Pro Forma Financial Information | ' | ||||||||
Year Ended | |||||||||
December 31, | |||||||||
(in thousands, except per share data) | 2012 | 2011 | |||||||
Pro forma total revenue | $ | 83,478 | $ | 68,543 | |||||
Pro forma net income | 1,055 | 12,757 | |||||||
Pro forma net income per share | |||||||||
Basic | 0.08 | 1.04 | |||||||
Diluted | 0.07 | 0.97 | |||||||
Direct EDI [Member] | ' | ||||||||
Estimated Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date | ' | ||||||||
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands): | |||||||||
Current assets | $ | 195 | |||||||
Property and equipment | 42 | ||||||||
Intangible assets | 6,120 | ||||||||
Goodwill | 4,688 | ||||||||
Current liabilities | (204 | ) | |||||||
Total purchase price | $ | 10,841 | |||||||
Estimated Fair Value of Purchased Intangible Assets and Estimated Useful Lives | ' | ||||||||
The following table summarizes the estimated fair value of the purchased intangible assets and their estimated useful lives: | |||||||||
Purchased Intangible Assets | Estimated | Estimated | |||||||
Fair Value | Life | ||||||||
(in thousands) | (in years) | ||||||||
Subscriber relationships | $ | 5,250 | 7 | ||||||
Non-competition agreements | 870 | 3 | |||||||
Total | $ | 6,120 | |||||||
Unaudited Pro Forma Financial Information | ' | ||||||||
(in thousands, except per share data) | Year Ended | ||||||||
December 31, | |||||||||
2011 | |||||||||
Pro forma total revenue | $ | 59,815 | |||||||
Pro forma net income | 13,576 | ||||||||
Pro forma net income per share | |||||||||
Basic | 1.14 | ||||||||
Diluted | 1.07 |
Accounts_Receivable_net_Tables
Accounts Receivable, net (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Receivables [Abstract] | ' | ||||||||||||
Schedule of Allowance for Doubtful Activity Including in Accounts Receivable Net | ' | ||||||||||||
The allowance for doubtful accounts activity, included in accounts receivable, net, was as follows (in thousands): | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Balances, January 1 | $ | 227 | $ | 222 | $ | 209 | |||||||
Provision for doubtful accounts | 479 | 383 | 425 | ||||||||||
Write-offs | (504 | ) | (426 | ) | (436 | ) | |||||||
Recoveries | 35 | 48 | 24 | ||||||||||
Balances, December 31 | $ | 237 | $ | 227 | $ | 222 |
Property_and_Equipment_net_Tab
Property and Equipment, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Schedule of Property and equipment, net | ' | ||||||||
Property and equipment, net included the following (in thousands): | |||||||||
December 31, | |||||||||
2013 | 2012 | ||||||||
Computer equipment and purchased software | $ | 18,368 | $ | 13,154 | |||||
Office equipment and furniture | 3,828 | 2,975 | |||||||
Leasehold improvements | 2,682 | 1,784 | |||||||
24,878 | 17,913 | ||||||||
Less: accumulated depreciation and amortization | (14,956 | ) | (10,243 | ) | |||||
$ | 9,922 | $ | 7,670 | ||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets, net (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||||||
Intangible assets, net included the following (in thousands): | |||||||||||||||||||||||||
December 31, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Carrying | Accumulated | Net | Carrying | Accumulated | Net | ||||||||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||||||||||
Subscriber relationships | $ | 23,160 | $ | (6,376 | ) | $ | 16,784 | $ | 23,160 | $ | (3,850 | ) | $ | 19,310 | |||||||||||
Non-competition agreements | 1,710 | (1,412 | ) | 298 | 1,710 | (780 | ) | 930 | |||||||||||||||||
$ | 24,870 | $ | (7,788 | ) | $ | 17,082 | $ | 24,870 | $ | (4,630 | ) | $ | 20,240 | ||||||||||||
Future Amortization Expense for Intangible Assets | ' | ||||||||||||||||||||||||
At December 31, 2013, future amortization expense for intangible assets was as follows (in thousands): | |||||||||||||||||||||||||
2014 | $ | 2,688 | |||||||||||||||||||||||
2015 | 2,578 | ||||||||||||||||||||||||
2016 | 2,577 | ||||||||||||||||||||||||
2017 | 2,557 | ||||||||||||||||||||||||
2018 | 2,062 | ||||||||||||||||||||||||
Thereafter | 4,620 | ||||||||||||||||||||||||
$ | 17,082 | ||||||||||||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments And Contingencies Disclosure [Abstract] | ' | ||||
Future Minimum Payments Under Operating Leases | ' | ||||
At December 31, 2013, our future minimum payments under operating leases were as follows (in thousands): | |||||
2014 | $ | 1,965 | |||
2015 | 2,055 | ||||
2016 | 1,648 | ||||
2017 | 1,677 | ||||
2018 | 1,748 | ||||
Thereafter | 2,444 | ||||
$ | 11,537 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Stock-Based Compensation Expense | ' | ||||||||||||
This expense was allocated as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Cost of revenues | $ | 475 | $ | 382 | $ | 255 | |||||||
Operating expenses | |||||||||||||
Sales and marketing | 1,481 | 895 | 471 | ||||||||||
Research and development | 266 | 140 | 56 | ||||||||||
General and administrative | 1,981 | 1,338 | 986 | ||||||||||
Total stock-based compensation expense | $ | 4,203 | $ | 2,755 | $ | 1,768 | |||||||
Stock Option Activity | ' | ||||||||||||
Our stock option activity was as follows: | |||||||||||||
Options | Weighted Average | ||||||||||||
(#) | Exercise Price | ||||||||||||
($/share) | |||||||||||||
Outstanding at January 1, 2011 | 1,549,344 | $ | 4.59 | ||||||||||
Granted | 431,790 | 17.04 | |||||||||||
Exercised | (289,286 | ) | 2.15 | ||||||||||
Forfeited | (22,439 | ) | 11.38 | ||||||||||
Outstanding at December 31, 2011 | 1,669,409 | 8.14 | |||||||||||
Granted | 240,831 | 26.38 | |||||||||||
Exercised | (468,717 | ) | 3.35 | ||||||||||
Forfeited | (71,382 | ) | 19.25 | ||||||||||
Outstanding at December 31, 2012 | 1,370,141 | 12.41 | |||||||||||
Granted | 225,439 | 40.64 | |||||||||||
Exercised | (469,225 | ) | 7.96 | ||||||||||
Forfeited | (29,132 | ) | 30.93 | ||||||||||
Outstanding at December 31, 2013 | 1,097,223 | 19.62 | |||||||||||
Weighted Average Fair Value Per Share of Options Granted, Assumptions | ' | ||||||||||||
The fair values of the options granted was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted-average volatility | 41% | 46% | 45% | ||||||||||
Expected dividend yield | — | — | — | ||||||||||
Expected life (in years) | 4.75 | 4.75 | 6.25 | ||||||||||
Risk-free interest rate | 0.68% - 1.37% | 0.61% - 0.82% | 1.58% - 3.05% | ||||||||||
Weighted Average Fair Value Per Share, Employee Stock Purchase Plan, Assumptions | ' | ||||||||||||
The fair value was estimated based on the market price of our common stock at the beginning of each offering period and using the Black-Scholes option pricing model with the following assumptions: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Expected volatility | 46% | 46% | |||||||||||
Expected dividend yield | — | — | |||||||||||
Expected life (in years) | 0.5 | 0.5 | |||||||||||
Risk-free interest rate | 0.09% - 0.12% | 0.15% | |||||||||||
Restricted Stock Units [Member] | ' | ||||||||||||
Restricted Stock Units and Restricted Stock Awards | ' | ||||||||||||
Our restricted stock units activity was as follows: | |||||||||||||
Restricted Stock | Weighted Average | ||||||||||||
Units (#) | Grant Date Fair | ||||||||||||
Value ($/share) | |||||||||||||
Outstanding at January 1, 2012 | — | $ | — | ||||||||||
Granted | 75,873 | 26.25 | |||||||||||
Vested and common stock issued | — | — | |||||||||||
Forfeited | (7,632 | ) | 25.32 | ||||||||||
Outstanding at December 31, 2012 | 68,241 | 26.35 | |||||||||||
Granted | 59,695 | 40.06 | |||||||||||
Vested and common stock issued | (17,060 | ) | 26.09 | ||||||||||
Forfeited | (8,232 | ) | 33.85 | ||||||||||
Outstanding at December 31, 2013 | 102,644 | 33.77 | |||||||||||
Restricted Stock Award [Member] | ' | ||||||||||||
Restricted Stock Units and Restricted Stock Awards | ' | ||||||||||||
Our restricted stock awards activity was as follows: | |||||||||||||
Restricted Stock | Weighted Average | ||||||||||||
Awards (#) | Grant Date Fair | ||||||||||||
Value ($/share) | |||||||||||||
Outstanding at January 1, 2012 | — | $ | — | ||||||||||
Restricted common stock issued | 6,330 | 27.55 | |||||||||||
Restrictions lapsed | — | — | |||||||||||
Forfeited | (1,055 | ) | 27.55 | ||||||||||
Outstanding at December 31, 2012 | 5,275 | 27.55 | |||||||||||
Restricted common stock issued | 5,688 | 48.66 | |||||||||||
Restrictions lapsed | (9,541 | ) | 36.99 | ||||||||||
Forfeited | — | — | |||||||||||
Outstanding at December 31, 2013 | 1,422 | 48.66 | |||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Provision (Benefit) for Income Taxes | ' | ||||||||||||
The provision (benefit) for income taxes was as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Current | |||||||||||||
Federal | $ | — | $ | — | $ | — | |||||||
State | 192 | 74 | 89 | ||||||||||
Foreign | 51 | 63 | — | ||||||||||
Deferred | |||||||||||||
Federal | 450 | 188 | (12,282 | ) | |||||||||
State | (7 | ) | (204 | ) | (426 | ) | |||||||
$ | 686 | $ | 121 | $ | (12,619 | ) | |||||||
Reconciliation of the Provision (Benefit) for Income Taxes to the Statutory Federal Rate | ' | ||||||||||||
A reconciliation of the provision (benefit) for income taxes to the statutory federal rate was as follows (in thousands): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Expected federal income tax at statutory rate | $ | 593 | $ | 459 | $ | 396 | |||||||
State income taxes, net of federal tax effect | 78 | 31 | 37 | ||||||||||
Tax impact of foreign activity | 44 | (8 | ) | 55 | |||||||||
Permanent book/tax differences | 106 | 23 | 100 | ||||||||||
Change in valuation allowance | 17 | (88 | ) | (1,310 | ) | ||||||||
Release of valuation allowance | — | — | (12,802 | ) | |||||||||
Section 382 limitation | — | — | 415 | ||||||||||
Change in state deferred rate | 53 | (162 | ) | — | |||||||||
Prior year true up | 4 | (135 | ) | 43 | |||||||||
General business credit | (202 | ) | — | — | |||||||||
State net operating loss adjustment | — | — | 413 | ||||||||||
Other | (7 | ) | 1 | 34 | |||||||||
Total provision (benefit) for income taxes | $ | 686 | $ | 121 | $ | (12,619 | ) | ||||||
Significant Components of Deferred Tax Assets (Liabilities) | ' | ||||||||||||
The significant components of our deferred tax assets (liabilities) were as follows (in thousands): | |||||||||||||
December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Current | |||||||||||||
Current net operating loss and credit carryforwards | $ | 1,258 | $ | 1,615 | |||||||||
Accounts receivable allowance | 157 | 143 | |||||||||||
Stock-based compensation expense | 229 | 154 | |||||||||||
Accrued expenses | 790 | 643 | |||||||||||
Total current deferred tax asset | 2,434 | 2,555 | |||||||||||
Foreign operations | (53 | ) | — | ||||||||||
Deferred operations | (985 | ) | (784 | ) | |||||||||
Total current deferred tax liability | (1,038 | ) | (784 | ) | |||||||||
Valuation allowance | (124 | ) | (39 | ) | |||||||||
Net current deferred tax asset | $ | 1,272 | $ | 1,732 | |||||||||
Non-current | |||||||||||||
Net operating loss and credit carryforwards | $ | 6,145 | $ | 6,474 | |||||||||
Deferred operations | 3,029 | 2,533 | |||||||||||
Stock-based compensation expense | 1,561 | 1,332 | |||||||||||
Depreciation and amortization | 1,159 | 738 | |||||||||||
Other | 34 | 18 | |||||||||||
Total non-current deferred tax asset | 11,928 | 11,095 | |||||||||||
Valuation allowance | (1,058 | ) | (242 | ) | |||||||||
Net non-current deferred tax asset | $ | 10,870 | $ | 10,853 | |||||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Components of Computation of Basic and Diluted Net Income Per Share | ' | ||||||||||||
The following table presents the components of the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share amounts): | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator | |||||||||||||
Net income | $ | 1,051 | $ | 1,222 | $ | 13,703 | |||||||
Denominator | |||||||||||||
Weighted average common shares outstanding, basic | 15,201 | 13,056 | 11,960 | ||||||||||
Options to purchase common stock | 676 | 826 | 784 | ||||||||||
Restricted stock units | 51 | 26 | — | ||||||||||
Employee stock purchase plan | 3 | 2 | — | ||||||||||
Weighted average common shares outstanding, diluted | 15,931 | 13,910 | 12,744 | ||||||||||
Net income per share | |||||||||||||
Basic | $ | 0.07 | $ | 0.09 | $ | 1.15 | |||||||
Diluted | $ | 0.07 | $ | 0.09 | $ | 1.08 | |||||||
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Unaudited Quarterly Statements of Income Data | ' | ||||||||||||||||
The following table presents our selected unaudited quarterly statements of income data (in thousands, except per share amounts): | |||||||||||||||||
For the Three Months Ended | |||||||||||||||||
2013 | 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||
Revenues | $ | 23,752 | $ | 25,658 | $ | 27,008 | $ | 27,973 | |||||||||
Gross profit | 16,686 | 17,715 | 18,759 | 19,450 | |||||||||||||
Income from operations | 194 | 483 | 371 | 724 | |||||||||||||
Net income | 199 | 288 | 270 | 294 | |||||||||||||
Diluted earnings per share | 0.01 | 0.02 | 0.02 | 0.02 | |||||||||||||
For the Three Months Ended | |||||||||||||||||
2012 | 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||
Revenues | $ | 16,534 | $ | 17,821 | $ | 20,267 | $ | 22,484 | |||||||||
Gross profit | 12,086 | 12,978 | 14,322 | 15,680 | |||||||||||||
Income from operations | 459 | 751 | 138 | 224 | |||||||||||||
Net income | 256 | 426 | 174 | 366 | |||||||||||||
Diluted earnings per share | 0.02 | 0.03 | 0.01 | 0.02 | |||||||||||||
General_Additional_Information
General - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment | |||
Schedule Of Accounting Policies [Line Items] | ' | ' | ' |
Number of reportable segments | 1 | ' | ' |
Expected life of customer relationship period | '2 years | ' | ' |
Advertising costs | $61,000 | $150,000 | $93,000 |
Computer equipment and purchased software [Member] | Maximum [Member] | ' | ' | ' |
Schedule Of Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of property and equipment | '5 years | ' | ' |
Computer equipment and purchased software [Member] | Minimum [Member] | ' | ' | ' |
Schedule Of Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of property and equipment | '2 years | ' | ' |
Office equipment and furniture [Member] | Maximum [Member] | ' | ' | ' |
Schedule Of Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of property and equipment | '7 years | ' | ' |
Office equipment and furniture [Member] | Minimum [Member] | ' | ' | ' |
Schedule Of Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of property and equipment | '5 years | ' | ' |
Leasehold improvements [Member] | Maximum [Member] | ' | ' | ' |
Schedule Of Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of property and equipment | '7 years | ' | ' |
Leasehold improvements [Member] | Minimum [Member] | ' | ' | ' |
Schedule Of Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of property and equipment | '2 years | ' | ' |
Subscriber relationships [Member] | Maximum [Member] | ' | ' | ' |
Schedule Of Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of intangible assets | '9 years | ' | ' |
Subscriber relationships [Member] | Minimum [Member] | ' | ' | ' |
Schedule Of Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of intangible assets | '3 years | ' | ' |
Non-competition agreements [Member] | Maximum [Member] | ' | ' | ' |
Schedule Of Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of intangible assets | '5 years | ' | ' |
Non-competition agreements [Member] | Minimum [Member] | ' | ' | ' |
Schedule Of Accounting Policies [Line Items] | ' | ' | ' |
Estimated useful lives of intangible assets | '2 years | ' | ' |
Business_Acquisitions_Addition
Business Acquisitions - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 5 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||
Aug. 07, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 06, 2012 | Aug. 06, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | 17-May-11 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Edifice [Member] | Edifice [Member] | Edifice [Member] | Edifice [Member] | Edifice [Member] | Direct EDI [Member] | Direct EDI [Member] | Direct EDI [Member] | Direct EDI [Member] | ||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets acquired in cash | ' | ' | ' | ' | ' | $26,300,000 | ' | ' | $26,275,000 | ' | $10,800,000 | ' | ' | ' |
Number of Shares of common stock issued for acquisition | 347,852 | ' | ' | ' | ' | ' | 347,852 | ' | ' | ' | ' | ' | ' | ' |
Amount borrowed from existing line of credit for payment of business acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,000,000 | ' | ' | ' | ' |
Amortization expense | ' | ' | 3,158,000 | 1,767,000 | 643,000 | ' | ' | 727,000 | 1,800,000 | 1,800,000 | ' | 1,000,000 | 1,000,000 | 643,000 |
Acquisition-related cost included in consolidated statements | ' | ' | ' | ' | ' | ' | ' | ' | ' | 212,000 | ' | ' | ' | 232,000 |
Revenues derived from customers | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | 2,700,000 |
Statutory blended income tax rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36.50% | ' | ' | ' | ' |
Purchase price adjustment related to working capital | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional annual compensation expense related to arrangements | ' | ' | $280,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business_Acquisitions_Business
Business Acquisitions - Business Purchase Price (Detail) (Edifice [Member], USD $) | 0 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Aug. 06, 2012 | Dec. 31, 2013 |
Edifice [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Cash | $26,300 | $26,275 |
SPS Commerce, Inc. common stock | ' | 11,396 |
Total purchase price | ' | $37,671 |
Business_Acquisitions_Estimate
Business Acquisitions - Estimated Fair Values of the Assets Acquired and Liabilities Assumed at the Acquisition Date (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule Of Business Acquisitions Purchase Price Allocation [Line Items] | ' | ' |
GOODWILL | $25,487 | $25,487 |
Edifice [Member] | ' | ' |
Schedule Of Business Acquisitions Purchase Price Allocation [Line Items] | ' | ' |
Current assets | 1,457 | ' |
Property and equipment | 1,456 | ' |
GOODWILL | 19,634 | ' |
Intangible assets | 16,240 | ' |
Other assets | 116 | ' |
Current liabilities | -1,232 | ' |
Total purchase price | 37,671 | ' |
Direct EDI [Member] | ' | ' |
Schedule Of Business Acquisitions Purchase Price Allocation [Line Items] | ' | ' |
Current assets | 195 | ' |
Property and equipment | 42 | ' |
GOODWILL | 4,688 | ' |
Intangible assets | 6,120 | ' |
Current liabilities | -204 | ' |
Total purchase price | $10,841 | ' |
Business_Acquisitions_Estimate1
Business Acquisitions - Estimated Fair Value of Purchased Intangible Assets and Estimated Useful Lives (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Edifice [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Estimated Fair Value | $16,240 |
Edifice [Member] | Subscriber relationships [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Estimated Life (in years) | '9 years |
Estimated Fair Value | 15,980 |
Edifice [Member] | Non-competition agreements [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Estimated Life (in years) | '5 years |
Estimated Fair Value | 260 |
Direct EDI [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Estimated Fair Value | 6,120 |
Direct EDI [Member] | Subscriber relationships [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Estimated Life (in years) | '7 years |
Estimated Fair Value | 5,250 |
Direct EDI [Member] | Non-competition agreements [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Estimated Life (in years) | '3 years |
Estimated Fair Value | $870 |
Business_Acquisitions_Unaudite
Business Acquisitions - Unaudited Pro Forma Financial Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 |
Edifice [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Pro forma total revenue | $83,478 | $68,543 |
Pro forma net income | 1,055 | 12,757 |
Pro forma net income per share, Basic | $0.08 | $1.04 |
Pro forma net income per share, Diluted | $0.07 | $0.97 |
Direct EDI [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Pro forma total revenue | ' | 59,815 |
Pro forma net income | ' | $13,576 |
Pro forma net income per share, Basic | ' | $1.14 |
Pro forma net income per share, Diluted | ' | $1.07 |
Accounts_Receivable_Net_Schedu
Accounts Receivable, Net - Schedule of Allowance for Doubtful Activity Included in Accounts Receivable Net (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Receivables [Abstract] | ' | ' | ' |
Beginning Balance | $227 | $222 | $209 |
Provision for doubtful accounts | 479 | 383 | 425 |
Write-offs | -504 | -426 | -436 |
Recoveries | 35 | 48 | 24 |
Ending Balance | $237 | $227 | $222 |
Property_and_Equipment_Net_Sch
Property and Equipment, Net - Schedule of Property and Equipment, Net (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $24,878 | $17,913 |
Less: accumulated depreciation and amortization | -14,956 | -10,243 |
Net, Total | 9,922 | 7,670 |
Computer equipment and purchased software [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 18,368 | 13,154 |
Office equipment and furniture [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | 3,828 | 2,975 |
Leasehold improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross | $2,682 | $1,784 |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property Plant And Equipment Useful Life And Values [Abstract] | ' | ' |
Property and equipment, net | $71,000 | $59,000 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets, Net - Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Carrying Amount | $24,870 | $24,870 |
Accumulated Amortization | -7,788 | -4,630 |
Net | 17,082 | 20,240 |
Subscriber relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Carrying Amount | 23,160 | 23,160 |
Accumulated Amortization | -6,376 | -3,850 |
Net | 16,784 | 19,310 |
Non-competition agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Carrying Amount | 1,710 | 1,710 |
Accumulated Amortization | -1,412 | -780 |
Net | $298 | $930 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets, Net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Amortization of intangible assets | $3,158,000 | $1,767,000 | $643,000 |
Impairment of non-competition agreements | $290,000 | ' | ' |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets, Net - Future Amortization Expense for Intangible Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' |
2014 | $2,688 | ' |
2015 | 2,578 | ' |
2016 | 2,577 | ' |
2017 | 2,557 | ' |
2018 | 2,062 | ' |
Thereafter | 4,620 | ' |
Net | $17,082 | $20,240 |
Line_of_Credit_Additional_Info
Line of Credit - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Revolving credit facility, amount | $20,000,000 | ' | ' | ' |
Revolving credit facility, maturity date | 30-Sep-16 | ' | ' | ' |
Cash and cash equivalents | 131,294,000 | 66,050,000 | 31,985,000 | 40,473,000 |
Borrowings outstanding revolving credit agreement | 0 | ' | ' | ' |
Revolving Credit Facility [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Interest rate description | 'Interest on amounts borrowed under the credit facility is based on (i) an Adjusted LIBO Rate (as defined in the revolving credit agreement) plus an applicable margin of 175 to 225 basis points based on our net working capital, or (ii) JPMorgan's prime rate (provided it is not less than the Adjusted One Month LIBO Rate (as defined in the revolving credit agreement)) plus an applicable margin of -25 to 25 basis points based on our net working capital. | ' | ' | ' |
Borrowing base in compliance with eligible monthly recurring revenue | 250.00% | ' | ' | ' |
Cash and cash equivalents | 10,000,000 | ' | ' | ' |
Applicable interest rate | 2.00% | ' | ' | ' |
Amount borrowed from line of credit to fund cash paid for business acquisition | 11,000,000 | ' | ' | ' |
Borrowings outstanding revolving credit agreement | 0 | ' | ' | ' |
Borrowings available revolving credit agreement | $20,000,000 | ' | ' | ' |
Minimum [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Fixed Charge Coverage Ratio | 1.2 | ' | ' | ' |
Minimum [Member] | Revolving Credit Facility [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Fixed Charge Coverage Ratio | 1.2 | ' | ' | ' |
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Applicable margin based on net working capital | 1.75% | ' | ' | ' |
Minimum [Member] | Prime Rate [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Applicable margin based on net working capital | -0.25% | ' | ' | ' |
Maximum [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Fixed Charge Coverage Ratio | 1 | ' | ' | ' |
Maximum [Member] | Revolving Credit Facility [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Fixed Charge Coverage Ratio | 1 | ' | ' | ' |
Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Applicable margin based on net working capital | 2.25% | ' | ' | ' |
Maximum [Member] | Prime Rate [Member] | ' | ' | ' | ' |
Line of Credit Facility [Line Items] | ' | ' | ' | ' |
Applicable margin based on net working capital | 0.25% | ' | ' | ' |
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities - Additional Information (Detail) (Software And Licenses [Member], USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Software And Licenses [Member] | ' |
Accrued Expenses And Other Current Liabilities [Line Items] | ' |
Future payments for next fiscal year | $1.40 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
OptionPlan | |||
Commitments And Contingencies Disclosure [Abstract] | ' | ' | ' |
Previously leased capital leases, interest rate | 10.75% | ' | ' |
Rent expense charged to operations | $2,800,000 | $1,600,000 | $963,000 |
Lease agreement expires, date | 30-Apr-20 | ' | ' |
Number of options to extend term of the lease | 2 | ' | ' |
Options to extend the term of the lease, number of years | '3 years | ' | ' |
Landlord cash or an irrevocable letter of credit | $172,000 | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies - Future Minimum Payments Under Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Commitments And Contingencies Disclosure [Abstract] | ' |
2014 | $1,965 |
2015 | 2,055 |
2016 | 1,648 |
2017 | 1,677 |
2018 | 1,748 |
Thereafter | 2,444 |
Operating leases, total | $11,537 |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Nov. 25, 2013 | Sep. 11, 2012 | Aug. 07, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity [Abstract] | ' | ' | ' | ' | ' | ' |
Common stock issued and sold | 750,000 | 1,840,000 | ' | 16,092,121 | 14,812,759 | ' |
Issue price of shares | $67 | $33.50 | ' | ' | ' | ' |
Net proceeds from issue of shares | $47,600 | $57,800 | ' | $47,738 | $57,940 | ' |
Underwriting discounts and commissions and legal, accounting and other fees | $2,700 | $3,800 | ' | $169 | $132 | $108 |
Shares issued to underwriters under over allotment options | ' | 240,000 | ' | ' | ' | ' |
Common Stock, Shares, Issued | ' | ' | 347,852 | ' | ' | ' |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
OfferingPeriods | Restricted Stock Units [Member] | Restricted Stock Award [Member] | Maximum [Member] | Minimum [Member] | Equity Incentive Plan 2010 [Member] | Employee Stock Purchase Plan [Member] | Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares were authorized under 2010 Equity Incentive Plan | ' | ' | ' | ' | ' | ' | ' | 888,765 | ' | ' |
Shares available for grant | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | $4,203,000 | $2,755,000 | $1,768,000 | ' | ' | ' | ' | ' | $402,000 | $148,000 |
Unrecognized stock-based compensation expense | 7,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation, expected to be recognized, weighted average period | '2 years 7 months 6 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options contractual term Range | ' | ' | ' | ' | ' | '10 years | '7 years | ' | ' | ' |
Stock options vest, period | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options contractual term, from the date of grant | 'Seven to ten years | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock options exercisable | 642,928 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price | $12.98 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual life | '5 years 9 months 18 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of options vested | 2,600,000 | 2,300,000 | 1,300,000 | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of options exercised | 20,700,000 | 12,100,000 | 4,900,000 | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of options outstanding | 50,100,000 | 34,100,000 | 29,700,000 | ' | ' | ' | ' | ' | ' | ' |
Weighted average fair value per share of options granted | $14.60 | $10.43 | $8.25 | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units vest over, period | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' |
Restricted stock awards units vest over, period | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' |
Number of RSU's vested and not issued during the period | 11,001 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of common stock on fair market value | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of offerings per year | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock reserved for future issuance | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' |
Employee stock purchase plan, employees contribution | $1,200,000 | $448,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Employee stock purchase plan, shares purchased | 32,114 | 17,332 | ' | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_StockB
Stock-Based Compensation - Stock-Based Compensation Expense (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | $4,203 | $2,755 | $1,768 |
Cost of revenues [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 475 | 382 | 255 |
Sales and marketing [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 1,481 | 895 | 471 |
Research and development [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | 266 | 140 | 56 |
General and administrative [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Stock-based compensation expense | $1,981 | $1,338 | $986 |
StockBased_Compensation_Stock_
Stock-Based Compensation - Stock Option Activity (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Options Outstanding, Beginning balance | 1,370,141 | 1,669,409 | 1,549,344 |
Options, Granted | 225,439 | 240,831 | 431,790 |
Options, Exercised | -469,225 | -468,717 | -289,286 |
Options, Forfeited | -29,132 | -71,382 | -22,439 |
Options Outstanding, Ending balance | 1,097,223 | 1,370,141 | 1,669,409 |
Weighted Average Exercise Price, Outstanding, Beginning Balance | $12.41 | $8.14 | $4.59 |
Weighted Average Exercise Price, Granted | $40.64 | $26.38 | $17.04 |
Weighted Average Exercise Price, Exercised | $7.96 | $3.35 | $2.15 |
Weighted Average Exercise Price, Forfeited | $30.93 | $19.25 | $11.38 |
Weighted Average Exercise Price, Outstanding, Ending Balance | $19.62 | $12.41 | $8.14 |
StockBased_Compensation_Weight
Stock-Based Compensation - Weighted Average Fair Value Per Share of Options Granted (Detail) (Stock Options [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Weighted-average volatility | 41.00% | 46.00% | 45.00% |
Expected dividend yield | ' | ' | ' |
Expected life (in years) | '4 years 9 months | '4 years 9 months | '6 years 3 months |
Minimum [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Risk-free interest rate | 0.68% | 0.61% | 1.58% |
Maximum [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Risk-free interest rate | 1.37% | 0.82% | 3.05% |
StockBased_Compensation_Restri
Stock-Based Compensation - Restricted Stock Units (Detail) (Restricted Stock Units [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock Units [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock awards, Outstanding, Beginning Balance | 68,241 | ' |
Granted, stock units | 59,695 | 75,873 |
Vested, stock units | -17,060 | ' |
Forfeited, stock units | -8,232 | -7,632 |
Stock awards, Outstanding, Ending Balance | 102,644 | 68,241 |
Weighted average grant date fair value, Outstanding, Beginning Balance | $26.35 | ' |
Granted, Weighted Average Grant Date Fair Value | $40.06 | $26.25 |
Vested, Weighted Average Grant Date Fair Value | $26.09 | ' |
Forfeited, Weighted Average Grant Date Fair Value | $33.85 | $25.32 |
Weighted average grant date fair value, Outstanding, Ending Balance | $33.77 | $26.35 |
StockBased_Compensation_Restri1
Stock-Based Compensation - Restricted Stock Awards (Detail) (Restricted Stock Award [Member], USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock Award [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Stock awards, Outstanding, Beginning Balance | 5,275 | ' |
Restricted common stock issued, stock awards | 5,688 | 6,330 |
Restrictions lapsed, stock awards | -9,541 | ' |
Forfeited, stock awards | ' | -1,055 |
Stock awards, Outstanding, Ending Balance | 1,422 | 5,275 |
Weighted average grant date fair value, Outstanding, Beginning Balance | $27.55 | ' |
Restricted common stock issued, Weighted Average Grant Date Fair Value | $48.66 | $27.55 |
Restrictions lapsed, Weighted Average Grant Date Fair Value | $36.99 | ' |
Forfeited, Weighted Average Grant Date Fair Value | ' | $27.55 |
Weighted average grant date fair value, Outstanding, Ending Balance | $48.66 | $27.55 |
StockBased_Compensation_Fair_V
Stock-Based Compensation - Fair Value Estimation of Common Stock Using Black-Scholes Option Pricing Model, Assumptions (Detail) (Employee Stock Purchase Plan [Member]) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Expected volatility | 46.00% | 46.00% |
Expected dividend yield | ' | ' |
Expected life (in years) | '6 months | '6 months |
Risk-free interest rate | ' | 0.15% |
Minimum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk-free interest rate | 0.09% | ' |
Maximum [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk-free interest rate | 0.12% | ' |
Income_Taxes_Schedule_of_Provi
Income Taxes - Schedule of Provision (Benefit) for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current | ' | ' | ' |
Federal | ' | ' | ' |
State | 192 | 74 | 89 |
Foreign | 51 | 63 | ' |
Deferred | ' | ' | ' |
Federal | 450 | 188 | -12,282 |
State | -7 | -204 | -426 |
Total provision (benefit) for income taxes | $686 | $121 | ($12,619) |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Provision (Benefit) for Income Taxes to Statutory Federal Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Expected federal income tax at statutory rate | $593 | $459 | $396 |
State income taxes, net of federal tax effect | 78 | 31 | 37 |
Tax impact of foreign activity | 44 | -8 | 55 |
Permanent book/tax differences | 106 | 23 | 100 |
Change in valuation allowance | 17 | -88 | -1,310 |
Release of valuation allowance | ' | ' | -12,802 |
Section 382 limitation | ' | ' | 415 |
Change in state deferred rate | 53 | -162 | ' |
Prior year true up | 4 | -135 | 43 |
General business credit | -202 | ' | ' |
State net operating loss adjustment | ' | ' | 413 |
Other | -7 | 1 | 34 |
Total provision (benefit) for income taxes | $686 | $121 | ($12,619) |
Income_Taxes_Significant_Compo
Income Taxes - Significant Components of Deferred Tax Assets (Liabilities) (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current | ' | ' |
Current net operating loss and credit carryforwards | $1,258 | $1,615 |
Accounts receivable allowance | 157 | 143 |
Stock-based compensation expense | 229 | 154 |
Accrued expenses | 790 | 643 |
Total current deferred tax asset | 2,434 | 2,555 |
Foreign operations | -53 | ' |
Deferred operations | -985 | -784 |
Total current deferred tax liability | -1,038 | -784 |
Valuation allowance | -124 | -39 |
Net current deferred tax asset | 1,272 | 1,732 |
Non-current | ' | ' |
Net operating loss and credit carryforwards | 6,145 | 6,474 |
Deferred operations | 3,029 | 2,533 |
Stock-based compensation expense | 1,561 | 1,332 |
Depreciation and amortization | 1,159 | 738 |
Other | 34 | 18 |
Total non-current deferred tax asset | 11,928 | 11,095 |
Valuation allowance | -1,058 | -242 |
Net non-current deferred tax asset | $10,870 | $10,853 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Domestic Tax Authority [Member] | Domestic Tax Authority [Member] | Domestic Tax Authority [Member] | State and Local Jurisdiction [Member] | State and Local Jurisdiction [Member] | State and Local Jurisdiction [Member] | |||
Research and Development [Member] | Maximum [Member] | Research and Development [Member] | Maximum [Member] | |||||
Income Tax Expense Benefit [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Net operating loss carry forwards for U. S. federal tax | ' | ' | $71,300,000 | ' | ' | $30,300,000 | ' | ' |
Expiration of net operating loss carryforwards | ' | ' | ' | ' | 'Loss carryforwards for federal tax purposes will expire between 2019 and 2034 if not utilized | ' | ' | 'Loss carryforwards for state tax purposes will expire between 2014 and 2034 if not utilized |
Unused federal losses that will expire | ' | ' | 17,600,000 | ' | ' | ' | ' | ' |
Maximum annual limitation of federal net operating losses | ' | ' | 990,000 | ' | ' | ' | ' | ' |
Federal net operating losses | ' | ' | 37,000,000 | ' | ' | 10,200,000 | ' | ' |
Research and development credit carryforwards | ' | ' | ' | 322,000 | ' | ' | 82,000 | ' |
Research and development credit expire date | ' | ' | ' | '2030 | ' | ' | '2025 | ' |
Valuation allowance against our deferred tax assets | 1,200,000 | ' | ' | ' | ' | ' | ' | ' |
Income tax receivable included in prepaid expenses and other current assets | 26,000 | 72,000 | ' | ' | ' | ' | ' | ' |
Unrecognized tax benefits | 0 | ' | ' | ' | ' | ' | ' | ' |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $0 | ' | ' | ' | ' | ' | ' | ' |
Net_Income_Per_Share_Component
Net Income Per Share - Components of Computation of Basic and Diluted Net 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 |
Numerator | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $294 | $270 | $288 | $199 | $366 | $174 | $426 | $256 | $1,051 | $1,222 | $13,703 |
Denominator | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average common shares outstanding, basic | ' | ' | ' | ' | ' | ' | ' | ' | 15,201 | 13,056 | 11,960 |
Options to purchase common stock | ' | ' | ' | ' | ' | ' | ' | ' | 676 | 826 | 784 |
Restricted stock units | ' | ' | ' | ' | ' | ' | ' | ' | 51 | 26 | ' |
Employee stock purchase plan | ' | ' | ' | ' | ' | ' | ' | ' | 3 | 2 | ' |
Weighted average common shares outstanding, diluted | ' | ' | ' | ' | ' | ' | ' | ' | 15,931 | 13,910 | 12,744 |
Net income per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | ' | ' | ' | ' | ' | ' | ' | ' | $0.07 | $0.09 | $1.15 |
Diluted | $0.02 | $0.02 | $0.02 | $0.01 | $0.02 | $0.01 | $0.03 | $0.02 | $0.07 | $0.09 | $1.08 |
Net_Income_Per_Share_Additiona
Net Income Per Share - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Earnings Per Share [Abstract] | ' |
Outstanding potential common shares excluded from computation of net income per share | 1,000 |
Employee_Benefit_Plan_Addition
Employee Benefit Plan - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Defined Contribution Pension And Other Postretirement Plans Disclosure [Abstract] | ' | ' | ' |
Maximum allowable contribution by employee percentage | 100.00% | ' | ' |
Defined benefit plan employer matching contribution percent | 25.00% | ' | ' |
Maximum annual contribution per employee, percent | 6.00% | ' | ' |
Employer matching contribution Amount | $522,000 | $372,000 | $287,000 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) - Summary of Unaudited Quarterly Statements of Income Data (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 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $27,973 | $27,008 | $25,658 | $23,752 | $22,484 | $20,267 | $17,821 | $16,534 | $104,391 | $77,106 | $57,969 |
Gross profit | 19,450 | 18,759 | 17,715 | 16,686 | 15,680 | 14,322 | 12,978 | 12,086 | 72,610 | 55,066 | 42,603 |
Income from operations | 724 | 371 | 483 | 194 | 224 | 138 | 751 | 459 | 1,772 | 1,572 | 1,135 |
Net income | $294 | $270 | $288 | $199 | $366 | $174 | $426 | $256 | $1,051 | $1,222 | $13,703 |
Diluted earnings per share | $0.02 | $0.02 | $0.02 | $0.01 | $0.02 | $0.01 | $0.03 | $0.02 | $0.07 | $0.09 | $1.08 |