Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 24, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Trading Symbol | 'SPSC | ' |
Entity Registrant Name | 'SPS COMMERCE INC | ' |
Entity Central Index Key | '0001092699 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 16,203,384 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS | ' | ' |
Cash and cash equivalents | $134,603 | $131,294 |
Accounts receivable, less allowance for doubtful accounts of $233 and $237, respectively | 12,166 | 11,611 |
Deferred costs, current | 9,539 | 9,048 |
Deferred income taxes, current | 1,272 | 1,272 |
Prepaid expenses and other current assets | 2,797 | 2,850 |
Total current assets | 160,377 | 156,075 |
PROPERTY AND EQUIPMENT, net | 9,479 | 9,922 |
GOODWILL | 25,487 | 25,487 |
INTANGIBLE ASSETS, net | 16,365 | 17,082 |
OTHER ASSETS | ' | ' |
Deferred costs, net of current portion | 3,957 | 3,684 |
Deferred income taxes, net of current portion | 10,697 | 10,870 |
Other non-current assets | 197 | 210 |
Total assets | 226,559 | 223,330 |
CURRENT LIABILITIES | ' | ' |
Accounts payable | 2,243 | 1,798 |
Accrued compensation and benefits | 7,694 | 7,981 |
Accrued expenses and other current liabilities | 3,069 | 2,801 |
Deferred revenue, current | 6,493 | 6,335 |
Total current liabilities | 19,499 | 18,915 |
OTHER LIABILITIES | ' | ' |
Deferred revenue, less current portion | 9,201 | 8,785 |
Deferred rent | 2,762 | 2,857 |
Total liabilities | 31,462 | 30,557 |
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; 16,182,693 and 16,092,121 shares issued and outstanding, respectively | 16 | 16 |
Additional paid-in capital | 241,500 | 239,549 |
Accumulated deficit | -46,419 | -46,792 |
Total stockholders' equity | 195,097 | 192,773 |
Total liabilities and stockholder's equity | $226,559 | $223,330 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $233 | $237 |
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 | 16,182,693 | 16,092,121 |
Common stock, shares outstanding | 16,182,693 | 16,092,121 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement [Abstract] | ' | ' |
Revenues | $28,939 | $23,752 |
Cost of revenues | 9,255 | 7,066 |
Gross profit | 19,684 | 16,686 |
Operating expenses | ' | ' |
Sales and marketing | 10,884 | 9,225 |
Research and development | 2,974 | 2,503 |
General and administrative | 4,511 | 4,047 |
Amortization of intangible assets | 717 | 717 |
Total operating expenses | 19,086 | 16,492 |
Income from operations | 598 | 194 |
Other income (expense) | ' | ' |
Interest income | 49 | 23 |
Other expense | -56 | -84 |
Total other expense, net | -7 | -61 |
Income before income taxes | 591 | 133 |
Income tax (expense) benefit | -218 | 66 |
Net income | $373 | $199 |
Net income per share | ' | ' |
Basic | $0.02 | $0.01 |
Diluted | $0.02 | $0.01 |
Weighted average common shares used to compute net income per share | ' | ' |
Basic | 16,155 | 14,884 |
Diluted | 16,830 | 15,564 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities | ' | ' |
Net income | $373 | $199 |
Reconciliation of net income to net cash provided by operating activities | ' | ' |
Deferred income taxes | 173 | -72 |
Depreciation and amortization of property and equipment | 1,304 | 1,171 |
Amortization of intangible assets | 717 | 717 |
Provision for doubtful accounts | 157 | 80 |
Stock-based compensation | 1,339 | 924 |
Changes in assets and liabilities | ' | ' |
Accounts receivable | -712 | 72 |
Deferred costs | -764 | -778 |
Prepaid expenses and other current assets | 66 | 2,831 |
Accounts payable | 445 | 177 |
Accrued compensation and benefits | -287 | 659 |
Accrued expenses and other current liabilities | 255 | 214 |
Deferred rent | -82 | ' |
Deferred revenue | 574 | 355 |
Net cash provided by operating activities | 3,558 | 6,549 |
Cash flows from investing activities | ' | ' |
Purchases of property and equipment | -861 | -1,089 |
Net cash used in investing activities | -861 | -1,089 |
Cash flows from financing activities | ' | ' |
Net proceeds from exercise of options to purchase common stock | 587 | 1,049 |
Excess tax benefit from exercise of options to purchase common stock | 25 | ' |
Net cash provided by financing activities | 612 | 1,049 |
Net increase in cash and cash equivalents | 3,309 | 6,509 |
Cash and cash equivalents at beginning of period | 131,294 | 66,050 |
Cash and cash equivalents at end of period | $134,603 | $72,559 |
General
General | 3 Months Ended |
Mar. 31, 2014 | |
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 unaudited condensed consolidated financial statements include the accounts of SPS Commerce, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP. We have included all normal recurring adjustments considered necessary to give a fair statement of our financial position, results of operations and cash flows for the interim periods shown. Operating results for these interim periods are not necessarily indicative of the results to be expected for the full year. The December 31, 2013 condensed consolidated balance sheet data was derived from our audited financial statements at that date. For further information, refer to the consolidated financial statements and accompanying notes for the year ended December 31, 2013 included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on February 20, 2014. | |
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. | |
Significant Accounting Policies | |
During the three months ended March 31, 2014, there were no material changes in our significant accounting policies. See Note A to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission on February 20, 2014, for additional information regarding our significant accounting policies. | |
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. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets, net | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Goodwill and Intangible Assets, net | ' | ||||||||||||||||||||||||
NOTE B – Goodwill and Intangible Assets, net | |||||||||||||||||||||||||
There was no change in our goodwill for the three months ended March 31, 2014. | |||||||||||||||||||||||||
Intangible assets included the following (in thousands): | |||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | ||||||||||||||||||||||
Amount | Amortization | Net | Amount | Amortization | Net | ||||||||||||||||||||
Subscriber relationships | $ | 23,160 | $ | (7,007 | ) | $ | 16,153 | $ | 23,160 | $ | (6,376 | ) | $ | 16,784 | |||||||||||
Non-competition agreements | 1,710 | (1,498 | ) | 212 | 1,710 | (1,412 | ) | 298 | |||||||||||||||||
$ | 24,870 | $ | (8,505 | ) | $ | 16,365 | $ | 24,870 | $ | (7,788 | ) | $ | 17,082 | ||||||||||||
Amortization expense for intangible assets was $717,000 for each of the three months ended March 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
At March 31, 2014, future amortization expense for intangible assets was as follows (in thousands): | |||||||||||||||||||||||||
Remainder of 2014 | $ | 1,970 | |||||||||||||||||||||||
2015 | 2,578 | ||||||||||||||||||||||||
2016 | 2,578 | ||||||||||||||||||||||||
2017 | 2,557 | ||||||||||||||||||||||||
2018 | 2,062 | ||||||||||||||||||||||||
Thereafter | 4,620 | ||||||||||||||||||||||||
$ | 16,365 | ||||||||||||||||||||||||
Line_of_Credit
Line of Credit | 3 Months Ended |
Mar. 31, 2014 | |
Debt Disclosure [Abstract] | ' |
Line of Credit | ' |
NOTE C – 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. | |
There were no borrowings outstanding at March 31, 2014 and we were in compliance with all covenants under the revolving credit agreement as of that date. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||
Stock-Based Compensation | ' | ||||||||
NOTE D – 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 2014, 965,527 additional shares were reserved for future issuance under our 2010 Equity Incentive Plan. At March 31, 2014, there were approximately 2.6 million shares available for grant under approved equity compensation plans. | |||||||||
We recorded non-cash stock-based compensation expense of $1.3 million and $924,000 for the three months ended March 31, 2014 and 2013, respectively. This expense was allocated as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Cost of revenues | $ | 153 | $ | 103 | |||||
Operating expenses | |||||||||
Sales and marketing | 482 | 342 | |||||||
Research and development | 93 | 61 | |||||||
General and administrative | 611 | 418 | |||||||
Total stock-based compensation expense | $ | 1,339 | $ | 924 | |||||
As of March 31, 2014, there was approximately $11.5 million of unrecognized stock-based compensation expense under our equity compensation plans, which is expected to be recognized on a straight line basis over a weighted average period of 3.1 years. | |||||||||
Stock Options | |||||||||
Stock options generally vest over four years and have a contractual term of seven to ten years from the date of grant. Our stock option activity was as follows: | |||||||||
Weighted Average | |||||||||
Options | Exercise Price | ||||||||
(#) | ($/share) | ||||||||
Outstanding at December 31, 2013 | 1,097,223 | $ | 19.62 | ||||||
Granted | 119,143 | 65.95 | |||||||
Exercised | (65,077 | ) | 8.95 | ||||||
Forfeited | (9,067 | ) | 38.94 | ||||||
Outstanding at March 31, 2014 | 1,142,222 | 24.91 | |||||||
Of the total outstanding options at March 31, 2014, 684,071 were exercisable with a weighted average exercise price of $15.74 per share. The total outstanding options had a weighted average remaining contractual life of 5.9 years. | |||||||||
The weighted average fair value per share of options granted during the first three months of 2014 was $26.24 and this was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: | |||||||||
Weighted-average volatility | 44.3 | % | |||||||
Expected dividend yield | 0 | % | |||||||
Expected life (in years) | 4.6 | ||||||||
Weighted-average risk-free interest rate | 1.43 | % | |||||||
Restricted Stock Units and Awards | |||||||||
Restricted stock units vest over four years and, upon vesting, the holder is entitled to receive shares of our common stock. With restricted stock awards, shares of our common stock are issued when the award is granted and the restrictions lapse over one year. | |||||||||
Our restricted stock units activity was as follows: | |||||||||
Restricted Stock | Weighted Average | ||||||||
Units | Grant Date Fair | ||||||||
(#) | Value ($/share) | ||||||||
Outstanding at December 31, 2013 | 102,644 | $ | 33.77 | ||||||
Granted | 38,236 | 65.95 | |||||||
Vested and common stock issued | (25,732 | ) | 32.46 | ||||||
Forfeited | (1,145 | ) | 35.42 | ||||||
Outstanding at March 31, 2014 | 114,003 | 44.84 | |||||||
The number of restricted stock units outstanding at March 31, 2014 included 4,942 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 December 31, 2013 | 1,422 | $ | 48.66 | ||||||
Restricted common stock issued | — | — | |||||||
Restrictions lapsed | (1,185 | ) | 48.66 | ||||||
Forfeited | (237 | ) | 48.66 | ||||||
Outstanding at March 31, 2014 | — | — | |||||||
Employee Stock Purchase Plan | |||||||||
Our employee stock purchase plan 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 period that began on January 1, 2014, we withheld approximately $369,000 from employees participating in the plan as of March 31, 2014. | |||||||||
For the three months ended March 31, 2014, we recorded approximately $106,000 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: | |||||||||
Expected volatility | 48.9 | % | |||||||
Expected dividend yield | 0 | % | |||||||
Expected life (in years) | 0.5 | ||||||||
Risk-free interest rate | 0.1 | % |
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
NOTE E – Income Taxes | |
We record our interim provision for income taxes by applying our estimated annual effective tax rate to our year-to-date pretax income and adjust the provision for discrete tax items recorded in the period. Differences between our effective tax rate and statutory tax rates are primarily due to the impact of meals and entertainment expense, employee stock purchase plan expense, as well as the federal R&D credit. | |
We recorded income tax expense of $218,000 for the three months ended March 31, 2014. We recorded an income tax benefit of $66,000 for the three months ended March 31, 2013. Our provisions for income taxes included current foreign and state income tax expense, as well as deferred tax expense. | |
We are subject to U.S federal income tax as well as income tax in various state and international jurisdictions. We are generally subject to tax examinations for all prior years due to our net operating loss carryforwards. As of March 31, 2014, we were not under any income tax audits by tax authorities. | |
As of March 31, 2014 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 | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Net Income Per Share | ' | ||||||||
NOTE F – 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 and restricted stock units. Potential common shares that are anti-dilutive are excluded from the calculation of 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): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Numerator | |||||||||
Net income | $ | 373 | $ | 199 | |||||
Denominator | |||||||||
Weighted average common shares outstanding, basic | 16,155 | 14,884 | |||||||
Options to purchase common stock | 616 | 627 | |||||||
Restricted stock units | 57 | 51 | |||||||
Employee stock purchase plan | 2 | 2 | |||||||
Weighted average common shares outstanding, diluted | 16,830 | 15,564 | |||||||
Net income per share | |||||||||
Basic | $ | 0.02 | $ | 0.01 | |||||
Diluted | $ | 0.02 | $ | 0.01 | |||||
The effect of approximately 120,000 and 201,000 outstanding potential common shares was excluded from the calculation of diluted net income per share for the three months ended March 31, 2014 and 2013, respectively. |
General_Policies
General (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
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 unaudited condensed consolidated financial statements include the accounts of SPS Commerce, Inc. and its subsidiaries. All intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these condensed consolidated financial statements do not include all of the information and notes required by GAAP. We have included all normal recurring adjustments considered necessary to give a fair statement of our financial position, results of operations and cash flows for the interim periods shown. Operating results for these interim periods are not necessarily indicative of the results to be expected for the full year. The December 31, 2013 condensed consolidated balance sheet data was derived from our audited financial statements at that date. For further information, refer to the consolidated financial statements and accompanying notes for the year ended December 31, 2013 included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on February 20, 2014. | |
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. | |
Significant Accounting Policies | ' |
Significant Accounting Policies | |
During the three months ended March 31, 2014, there were no material changes in our significant accounting policies. See Note A to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013, as filed with the Securities and Exchange Commission on February 20, 2014, for additional information regarding our significant accounting policies. | |
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. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets, net (Tables) | 3 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Intangible Assets | ' | ||||||||||||||||||||||||
Intangible assets included the following (in thousands): | |||||||||||||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | ||||||||||||||||||||||
Amount | Amortization | Net | Amount | Amortization | Net | ||||||||||||||||||||
Subscriber relationships | $ | 23,160 | $ | (7,007 | ) | $ | 16,153 | $ | 23,160 | $ | (6,376 | ) | $ | 16,784 | |||||||||||
Non-competition agreements | 1,710 | (1,498 | ) | 212 | 1,710 | (1,412 | ) | 298 | |||||||||||||||||
$ | 24,870 | $ | (8,505 | ) | $ | 16,365 | $ | 24,870 | $ | (7,788 | ) | $ | 17,082 | ||||||||||||
Future Amortization Expense for Intangible Assets | ' | ||||||||||||||||||||||||
At March 31, 2014, future amortization expense for intangible assets was as follows (in thousands): | |||||||||||||||||||||||||
Remainder of 2014 | $ | 1,970 | |||||||||||||||||||||||
2015 | 2,578 | ||||||||||||||||||||||||
2016 | 2,578 | ||||||||||||||||||||||||
2017 | 2,557 | ||||||||||||||||||||||||
2018 | 2,062 | ||||||||||||||||||||||||
Thereafter | 4,620 | ||||||||||||||||||||||||
$ | 16,365 | ||||||||||||||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Stock-Based Compensation Expense | ' | ||||||||
This expense was allocated as follows (in thousands): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Cost of revenues | $ | 153 | $ | 103 | |||||
Operating expenses | |||||||||
Sales and marketing | 482 | 342 | |||||||
Research and development | 93 | 61 | |||||||
General and administrative | 611 | 418 | |||||||
Total stock-based compensation expense | $ | 1,339 | $ | 924 | |||||
Stock Option Activity | ' | ||||||||
Our stock option activity was as follows: | |||||||||
Weighted Average | |||||||||
Options | Exercise Price | ||||||||
(#) | ($/share) | ||||||||
Outstanding at December 31, 2013 | 1,097,223 | $ | 19.62 | ||||||
Granted | 119,143 | 65.95 | |||||||
Exercised | (65,077 | ) | 8.95 | ||||||
Forfeited | (9,067 | ) | 38.94 | ||||||
Outstanding at March 31, 2014 | 1,142,222 | 24.91 | |||||||
Weighted Average Fair Value Per Share of Options Granted, Assumptions | ' | ||||||||
The weighted average fair value per share of options granted during the first three months of 2014 was $26.24 and this was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions: | |||||||||
Weighted-average volatility | 44.3 | % | |||||||
Expected dividend yield | 0 | % | |||||||
Expected life (in years) | 4.6 | ||||||||
Weighted-average risk-free interest rate | 1.43 | % | |||||||
Weighted Average Fair Value Per Share, Employee Stock Purchase Plan, Assumptions | ' | ||||||||
The fair value was estimated based on the market price of our common stock at the beginning of each offering period and using the Black-Scholes option pricing model with the following assumptions: | |||||||||
Expected volatility | 48.9 | % | |||||||
Expected dividend yield | 0 | % | |||||||
Expected life (in years) | 0.5 | ||||||||
Risk-free interest rate | 0.1 | % | |||||||
Restricted Stock Units [Member] | ' | ||||||||
Restricted Stock Units and Restricted Stock Awards | ' | ||||||||
Our restricted stock units activity was as follows: | |||||||||
Restricted Stock | Weighted Average | ||||||||
Units | Grant Date Fair | ||||||||
(#) | Value ($/share) | ||||||||
Outstanding at December 31, 2013 | 102,644 | $ | 33.77 | ||||||
Granted | 38,236 | 65.95 | |||||||
Vested and common stock issued | (25,732 | ) | 32.46 | ||||||
Forfeited | (1,145 | ) | 35.42 | ||||||
Outstanding at March 31, 2014 | 114,003 | 44.84 | |||||||
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 December 31, 2013 | 1,422 | $ | 48.66 | ||||||
Restricted common stock issued | — | — | |||||||
Restrictions lapsed | (1,185 | ) | 48.66 | ||||||
Forfeited | (237 | ) | 48.66 | ||||||
Outstanding at March 31, 2014 | — | — | |||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
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): | |||||||||
Three Months Ended | |||||||||
March 31, | |||||||||
2014 | 2013 | ||||||||
Numerator | |||||||||
Net income | $ | 373 | $ | 199 | |||||
Denominator | |||||||||
Weighted average common shares outstanding, basic | 16,155 | 14,884 | |||||||
Options to purchase common stock | 616 | 627 | |||||||
Restricted stock units | 57 | 51 | |||||||
Employee stock purchase plan | 2 | 2 | |||||||
Weighted average common shares outstanding, diluted | 16,830 | 15,564 | |||||||
Net income per share | |||||||||
Basic | $ | 0.02 | $ | 0.01 | |||||
Diluted | $ | 0.02 | $ | 0.01 | |||||
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets, Net - Intangible Assets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Carrying Amount | $24,870 | $24,870 |
Accumulated Amortization | -8,505 | -7,788 |
Net | 16,365 | 17,082 |
Subscriber relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Carrying Amount | 23,160 | 23,160 |
Accumulated Amortization | -7,007 | -6,376 |
Net | 16,153 | 16,784 |
Non-competition agreements [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Carrying Amount | 1,710 | 1,710 |
Accumulated Amortization | -1,498 | -1,412 |
Net | $212 | $298 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets, Net - Additional Information (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' |
Amortization of intangible assets | $717 | $717 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets, Net - Future Amortization Expense for Intangible Assets (Detail) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ' |
Remainder of 2014 | $1,970 | ' |
2015 | 2,578 | ' |
2016 | 2,578 | ' |
2017 | 2,557 | ' |
2018 | 2,062 | ' |
Thereafter | 4,620 | ' |
Net | $16,365 | $17,082 |
Line_of_Credit_Additional_Info
Line of Credit - Additional Information (Detail) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Line of Credit Facility [Line Items] | ' |
Revolving credit facility, amount | $20 |
Revolving credit facility, maturity date | 30-Sep-16 |
Revolving Credit Facility [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Borrowings outstanding revolving credit agreement | $0 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Jan. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | |
OfferingPeriods | Employee Stock Purchase Plan [Member] | Equity Incentive Plan 2010 [Member] | Restricted Stock Units [Member] | Restricted Stock Award [Member] | Maximum [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares were authorized under 2010 Equity Incentive Plan | ' | ' | ' | 965,527 | ' | ' | ' | ' |
Shares available for grant | 2,600,000 | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation expense | $1,339,000 | $924,000 | $106,000 | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation expense | 11,500,000 | ' | ' | ' | ' | ' | ' | ' |
Unrecognized stock-based compensation, expected to be recognized, weighted average period | '3 years 1 month 6 days | ' | ' | ' | ' | ' | ' | ' |
Stock options contractual term Range | ' | ' | ' | ' | ' | ' | '10 years | '7 years |
Stock options vest, period | '4 years | ' | ' | ' | '4 years | ' | ' | ' |
Stock options contractual term, from the date of grant | 'Seven to ten years | ' | ' | ' | ' | ' | ' | ' |
Stock options exercisable | 684,071 | ' | ' | ' | ' | ' | ' | ' |
Weighted average exercise price | $15.74 | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual life | '5 years 10 months 24 days | ' | ' | ' | ' | ' | ' | ' |
Weighted average fair value per share of options granted | $26.24 | ' | ' | ' | ' | ' | ' | ' |
Restricted stock awards units vest over, period | ' | ' | ' | ' | ' | '1 year | ' | ' |
Number of RSU's vested and not issued during the period | 4,942 | ' | ' | ' | ' | ' | ' | ' |
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 | $369,000 | ' | ' | ' | ' | ' | ' | ' |
StockBased_Compensation_StockB
Stock-Based Compensation - Stock-Based Compensation Expense (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | $1,339 | $924 |
Cost of revenues [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 153 | 103 |
Sales and marketing [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 482 | 342 |
Research and development [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | 93 | 61 |
General and administrative [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Stock-based compensation expense | $611 | $418 |
StockBased_Compensation_Stock_
Stock-Based Compensation - Stock Option Activity (Detail) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' |
Options Outstanding, Beginning balance | 1,097,223 |
Options, Granted | 119,143 |
Options, Exercised | -65,077 |
Options, Forfeited | -9,067 |
Options Outstanding, Ending balance | 1,142,222 |
Weighted Average Exercise Price, Outstanding, Beginning Balance | $19.62 |
Weighted Average Exercise Price, Granted | $65.95 |
Weighted Average Exercise Price, Exercised | $8.95 |
Weighted Average Exercise Price, Forfeited | $38.94 |
Weighted Average Exercise Price, Outstanding, Ending Balance | $24.91 |
StockBased_Compensation_Weight
Stock-Based Compensation - Weighted Average Fair Value Per Share of Options Granted, Assumptions (Detail) (Stock Options [Member]) | 3 Months Ended |
Mar. 31, 2014 | |
Stock Options [Member] | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' |
Weighted-average volatility | 44.30% |
Expected dividend yield | 0.00% |
Expected life (in years) | '4 years 7 months 6 days |
Weighted-average risk-free interest rate | 1.43% |
StockBased_Compensation_Restri
Stock-Based Compensation - Restricted Stock Units (Detail) (Restricted Stock Units [Member], USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Restricted Stock Units [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Stock awards, Outstanding, Beginning Balance | 102,644 |
Granted, stock units | 38,236 |
Vested, stock units | -25,732 |
Forfeited, stock units | -1,145 |
Stock awards, Outstanding, Ending Balance | 114,003 |
Weighted average grant date fair value, Outstanding, Beginning Balance | $33.77 |
Granted, Weighted Average Grant Date Fair Value | $65.95 |
Vested, Weighted Average Grant Date Fair Value | $32.46 |
Forfeited, Weighted Average Grant Date Fair Value | $35.42 |
Weighted average grant date fair value, Outstanding, Ending Balance | $44.84 |
StockBased_Compensation_Restri1
Stock-Based Compensation - Restricted Stock Awards (Detail) (Restricted Stock Award [Member], USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Restricted Stock Award [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Stock awards, Outstanding, Beginning Balance | 1,422 |
Restricted common stock issued, stock awards | ' |
Restrictions lapsed, stock awards | -1,185 |
Forfeited, stock awards | -237 |
Weighted average grant date fair value, Outstanding, Beginning Balance | $48.66 |
Restricted common stock issued, Weighted Average Grant Date Fair Value | ' |
Restrictions lapsed, Weighted Average Grant Date Fair Value | $48.66 |
Forfeited, Weighted Average Grant Date Fair Value | $48.66 |
Weighted average grant date fair value, Outstanding, Ending Balance | ' |
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]) | 3 Months Ended |
Mar. 31, 2014 | |
Employee Stock Purchase Plan [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected volatility | 48.90% |
Expected dividend yield | 0.00% |
Expected life (in years) | '6 months |
Risk-free interest rate | 0.10% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Income tax benefit (expense) | ($218,000) | $66,000 |
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 | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Numerator | ' | ' |
Net income | $373 | $199 |
Denominator | ' | ' |
Weighted average common shares outstanding, basic | 16,155 | 14,884 |
Options to purchase common stock | 616 | 627 |
Restricted stock units | 57 | 51 |
Employee stock purchase plan | 2 | 2 |
Weighted average common shares outstanding, diluted | 16,830 | 15,564 |
Net income per share | ' | ' |
Basic | $0.02 | $0.01 |
Diluted | $0.02 | $0.01 |
Net_Income_Per_Share_Additiona
Net Income Per Share - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Outstanding potential common shares excluded from computation of net income per share | 120,000 | 201,000 |