Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 24, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | SPSC | |
Entity Registrant Name | SPS COMMERCE INC | |
Entity Central Index Key | 1,092,699 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,192,634 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 128,707 | $ 115,877 |
Short-term marketable securities | 25,550 | 23,076 |
Accounts receivable, less allowance for doubtful accounts of $597 and $515, respectively | 22,683 | 20,746 |
Deferred costs | 20,908 | 19,224 |
Other current assets | 6,992 | 7,010 |
Total current assets | 204,840 | 185,933 |
PROPERTY AND EQUIPMENT, net | 15,066 | 15,314 |
GOODWILL | 50,289 | 49,777 |
INTANGIBLE ASSETS, net | 19,389 | 19,788 |
MARKETABLE SECURITIES, non-current | 2,503 | 7,494 |
OTHER ASSETS | ||
Deferred costs, non-current | 6,051 | 6,086 |
Deferred income tax asset, non-current | 28,408 | 12,446 |
Other non-current assets | 1,372 | 1,527 |
Total assets | 327,918 | 298,365 |
CURRENT LIABILITIES | ||
Accounts payable | 3,580 | 2,302 |
Accrued compensation | 12,272 | 13,740 |
Accrued expenses | 4,459 | 3,508 |
Deferred revenue | 15,803 | 11,055 |
Deferred rent | 1,504 | 1,556 |
Total current liabilities | 37,618 | 32,161 |
OTHER LIABILITIES | ||
Deferred revenue, non-current | 11,087 | 10,847 |
Deferred rent, non-current | 3,912 | 4,179 |
Deferred income tax liability, non-current | 1,895 | 1,911 |
Total liabilities | 54,512 | 49,098 |
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; 17,200,526 and 17,081,145 shares issued and outstanding, respectively | 17 | 17 |
Additional paid-in capital | 289,652 | 286,315 |
Accumulated deficit | (14,490) | (33,739) |
Accumulated other comprehensive loss | (1,773) | (3,326) |
Total stockholders' equity | 273,406 | 249,267 |
Total liabilities and stockholders' equity | $ 327,918 | $ 298,365 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 597 | $ 515 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 55,000,000 | 55,000,000 |
Common stock, shares issued | 17,200,526 | 17,081,145 |
Common stock, shares outstanding | 17,200,526 | 17,081,145 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Revenues | $ 51,932 | $ 45,599 |
Cost of revenues | 17,330 | 14,881 |
Gross profit | 34,602 | 30,718 |
Operating expenses | ||
Sales and marketing | 17,079 | 15,889 |
Research and development | 5,105 | 5,069 |
General and administrative | 7,827 | 7,285 |
Amortization of intangible assets | 1,215 | 1,161 |
Total operating expenses | 31,226 | 29,404 |
Income from operations | 3,376 | 1,314 |
Other income (expense) | ||
Interest income, net | 191 | 145 |
Other income (expense), net | (60) | 293 |
Total other income (expense), net | 131 | 438 |
Income before income taxes | 3,507 | 1,752 |
Income tax expense | (536) | (708) |
Net income | $ 2,971 | $ 1,044 |
Net income per share | ||
Basic | $ 0.17 | $ 0.06 |
Diluted | $ 0.17 | $ 0.06 |
Weighted average common shares used to compute net income per share | ||
Basic | 17,154 | 16,783 |
Diluted | 17,393 | 17,029 |
Other comprehensive income (loss) | ||
Foreign currency translation adjustments | $ 1,577 | $ 2,821 |
Unrealized gain on investments (net of tax of ($5) and $47) | (8) | 76 |
Reclassification of gain on investments into earnings (net of tax of ($9) and $0) | (16) | (1) |
Comprehensive income (loss) | $ 4,524 | $ 3,940 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||
Tax on net unrealized gain (losses) on investment securities available for sale | $ (5) | $ 47 |
Reclassification of gain on investments into earnings, tax | $ (9) | $ 0 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities | ||
Net income | $ 2,971 | $ 1,044 |
Reconciliation of net income to net cash provided by operating activities | ||
Deferred income taxes | 310 | (302) |
Share-based earn-out liability | (365) | |
Depreciation and amortization of property and equipment | 1,691 | 1,626 |
Amortization of intangible assets | 1,215 | 1,161 |
Provision for doubtful accounts | 332 | 304 |
Stock-based compensation | 2,300 | 1,927 |
Other, net | (25) | |
Changes in assets and liabilities | ||
Accounts receivable | (2,201) | (2,189) |
Deferred costs | (1,649) | (765) |
Other current and non-current assets | 180 | 99 |
Accounts payable | 1,169 | 1,694 |
Accrued compensation | (1,508) | (319) |
Accrued expenses | 945 | (90) |
Deferred revenue | 4,988 | 3,019 |
Deferred rent | (319) | 67 |
Net cash provided by operating activities | 10,399 | 6,911 |
Cash flows from investing activities | ||
Purchases of property and equipment | (1,299) | (2,116) |
Purchases of marketable securities | (4,995) | (2,495) |
Maturities of marketable securities | 7,500 | 2,500 |
Acquisitions of businesses and intangible assets, net of cash acquired | (500) | (17,942) |
Net cash provided by (used in) investing activities | 706 | (20,053) |
Cash flows from financing activities | ||
Net proceeds from exercise of options to purchase common stock | 1,037 | 1,069 |
Excess tax benefits from exercise of options to purchase common stock | 1,021 | |
Net cash provided by financing activities | 1,037 | 2,090 |
Effect of foreign currency exchange rate changes | 688 | 403 |
Net increase (decrease) in cash and cash equivalents | 12,830 | (10,649) |
Cash and cash equivalents at beginning of period | 115,877 | 121,538 |
Cash and cash equivalents at end of period | $ 128,707 | $ 110,889 |
General
General | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | NOTE A – General Business Description We are a leading provider of cloud-based supply chain management solutions, providing network-proven integrations and comprehensive retail performance analytics to thousands of customers worldwide. We provide our solutions through the SPS Commerce platform, a cloud-based product 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 conformity with U.S. generally accepted accounting principles (“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, 2016 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, 2016 included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on February 27, 2017. 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, 2017, 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, 2016, as filed with the Securities and Exchange Commission on February 27, 2017, for additional information regarding our significant accounting policies. Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting We adopted ASU 2016-09 during the three months ended March 31, 2017. The impact to our consolidated balance sheet as of January 1, 2017 was a $16.3 million increase in deferred income tax assets, non-current and a corresponding $16.3 million decrease in accumulated deficit. This impact results from the cumulative-effect adjustment for previously unrecognized excess tax benefits using the modified retrospective method required by the new standard. We elected to adopt the changes in cash flow statement presentation prospectively to be consistent with the prospective transition for the treatment of excess tax benefits in the income statement. Accordingly, we no longer classify excess tax benefits as a financing activity subsequent to January 1, 2017. Recently Issued Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU 2016-02, Leases |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Financial Instruments | NOTE B – Financial Instruments We invest primarily in money market funds, highly liquid debt instruments of the U.S. government, and U.S. corporate debt securities. All highly liquid investments with original maturities of 90 days or less are classified as cash equivalents. All investments with original maturities greater than 90 days and remaining maturities less than one year from the balance sheet date are classified as short-term marketable securities. Investments with remaining maturities of more than one year from the balance sheet date are classified as marketable securities, non-current. Short-term marketable securities and marketable securities, non-current, are also classified as available-for-sale. We intend to hold marketable securities until maturity; however, we may sell these securities at any time for use in current operations or for other purposes. Consequently, we may or may not keep securities with stated holding periods to maturity. Our fixed income investments are carried at fair value and unrealized gains and losses on these investments are included in other comprehensive income (loss) in the condensed consolidated statements of comprehensive income (loss). Realized gains or losses are included in other income (expense) in the condensed consolidated statements of comprehensive income (loss). When a determination has been made that an other-than-temporary decline in fair value has occurred, the amount of the decline that is related to a credit loss is realized and is included in other income (expense), net in the condensed consolidated statements of comprehensive income (loss). Cash equivalents and marketable securities, consisted of the following: March 31, 2017 Amortized Unrealized Fair Value (Dollars in thousands) Cash equivalents: Money market funds $ 80,310 $ — $ 80,310 Marketable securities: Corporate bonds 15,681 (120 ) 15,561 Commercial paper 4,995 — 4,995 U.S. treasury securities 7,489 8 7,497 $ 108,475 $ (112 ) $ 108,363 Due within one year $ 105,860 Due within two years 2,503 Total $ 108,363 December 31, 2016 Amortized Unrealized Fair Value (Dollars in thousands) Cash equivalents: Money market funds $ 75,375 $ — $ 75,375 Marketable securities: Corporate bonds 15,681 (96 ) 15,585 Commercial paper 4,977 10 4,987 U.S. treasury securities 7,489 10 7,499 U.S. agency obligations 2,497 3 2,500 $ 106,019 $ (73 ) $ 105,946 Due within one year $ 98,452 Due within two years 7,494 Total $ 105,946 We do not believe any of the unrealized losses represent an other-than-temporary impairment based on our valuation of available evidence as of March 31, 2017. We expect to receive the full principal and interest on all of these cash equivalents and marketable securities. Fair Value Measurements We measure certain financial assets at fair value on a recurring basis based on a fair value hierarchy that requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs that may be used to measure fair value are: • Level 1 – quoted prices in active markets for identical assets or liabilities • Level 2 – observable inputs other than Level 1 prices, such as (a) quoted prices for similar assets or liabilities, (b) quoted prices in markets with insufficient volume or infrequent transactions (less active markets), or (c) model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 – unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. Level 1 Measurements Our cash equivalents held in money market funds are measured at fair value using level 1 inputs. Level 2 Measurements Our available-for-sale U.S. treasury securities, U.S. agency obligations, commercial paper and corporate debt securities are measured at fair value using level 2 inputs. We obtain the fair values of our level 2 available-for-sale securities from a professional pricing service. The following tables present information about our financial assets that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: March 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents: Money market funds $ 80,310 $ — $ — $ 80,310 Marketable securities: Corporate bonds — 15,561 — 15,561 Commerical paper — 4,995 — 4,995 U.S. treasury securities — 7,497 — 7,497 Total $ 80,310 $ 28,053 $ — $ 108,363 December 31, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents: Money market funds $ 75,375 $ — $ — $ 75,375 Marketable securities: Corporate bonds — 15,585 — 15,585 Commerical paper — 4,987 — 4,987 U.S. treasury securities — 7,499 — 7,499 U.S. agency obligations — 2,500 — 2,500 Total $ 75,375 $ 30,571 $ — $ 105,946 We classify our cash and cash equivalents and marketable securities within Level 1 or Level 2 because we use quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, net | NOTE C – Goodwill and Intangible Assets, net Changes in the carrying amount of goodwill for the three months ended March 31, 2017 and 2016 are as follows: 2017 (Dollars in thousands) Balances, January 1 $ 49,777 Goodwill acquired during the period — Foreign currency translation adjustments 512 Balances, March 31 $ 50,289 Intangible assets subject to amortization primarily include subscriber relationships, non-competition agreements and acquired technology and are amortized over their respective useful lives (ranging from 1 to 9 years). March 31, 2017 Carrying Amount Accumulated Foreign Currency Net (Dollars in thousands) Subscriber relationships $ 34,350 $ (16,633 ) $ 187 $ 17,904 Non-competition agreements 2,499 (1,910 ) 17 606 Technology and other 2,131 (1,264 ) 12 879 $ 38,980 $ (19,807 ) $ 216 $ 19,389 December 31, 2016 Carrying Amount Accumulated Foreign Currency Net (Dollars in thousands) Subscriber relationships $ 33,736 $ (15,708 ) $ 295 $ 18,323 Non-competition agreements 2,234 (1,818 ) 17 433 Technology and other 2,089 (1,120 ) 63 1,032 $ 38,059 $ (18,646 ) $ 375 $ 19,788 Information regarding intangible assets included on our consolidated balance sheets is as follows: Total amortization expense for intangible assets during the three months ended March 31, 2017 and 2016 was $1.2 million and $1.2 million, respectively. The estimated annual amortization expense related to intangible assets subject to amortization for the next five years is as follows: (Dollars in thousands) Remainder of 2017 $ 3,322 2018 3,927 2019 3,636 2020 3,290 2021 2,453 Thereafter 2,761 $ 19,389 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE D – Commitments and Contingencies Operating Leases At March 31, 2017, our future minimum payments under operating leases were as follows: (Dollars in thousands) Remainder of 2017 $ 2,438 2018 3,128 2019 3,217 2020 1,814 2021 1,035 Thereafter 1,174 $ 12,806 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | NOTE E – 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, restricted stock units and performance share 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 February 2017, 1,024,868 additional shares were reserved for future issuance under our 2010 Equity Incentive Plan. As of March 31, 2017, there were approximately 4.5 million shares available for grant under approved equity compensation plans. We recorded stock-based compensation expense of $2.3 million and $1.9 million for the three months ended March 31, 2017 and 2016, respectively. This expense was allocated as follows: Three Months Ended 2017 2016 (Dollars in thousands) Cost of revenues $ 451 $ 280 Operating expenses Sales and marketing 517 654 Research and development 229 138 General and administrative 1,103 855 Total stock-based compensation expense $ 2,300 $ 1,927 As of March 31, 2017, there was approximately $23.4 million of unrecognized stock-based compensation expense under our equity compensation plans, which is expected to be recognized on a straight-line basis over a weighted average period of 3.0 years. Stock Options Stock options generally vest over four years and have a contractual term of seven to ten years from the date of grant. Our stock option activity was as follows: Options Weighted Average (#) ($/share) Outstanding at December 31, 2016 1,016,012 $ 44.72 Granted 147,848 55.70 Exercised (54,564 ) 18.99 Forfeited (5,267 ) 54.03 Outstanding at March 31, 2017 1,104,029 47.42 Of the total outstanding options at March 31, 2017, 630,995 were exercisable with a weighted average exercise price of $42.11 per share. The total outstanding options had a weighted average remaining contractual life of 4.73 years. The weighted average grant date fair value of options granted during the first three months of 2017 was $55.70 and this was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Volatility 37.5 % Dividend yield 0 % Life (in years) 4.6 Risk-free interest rate 1.88 % Performance Share Units In February 2017, our executive officers were granted performance share unit (“PSU”) awards with vesting contingent on successful attainment of pre-determined revenue targets over the course of a three-year performance period (fiscal years 2017 – 2019). During the three months ended March 31, 2017, expense of $169,000 was recognized for PSU awards. Restricted Stock Units and Awards Restricted stock units vest over four years and, upon vesting, the holder is entitled to receive shares of our common stock. With restricted stock awards, shares of our common stock are issued when the award is granted and the restrictions lapse over one year. Activity for our restricted stock units and PSUs was as follows: Restricted Stock Weighted Average (#) ($/share) Outstanding at December 31, 2016 189,042 $ 54.14 Granted 203,680 55.70 Vested and common stock issued (64,818 ) 53.63 Forfeited (2,052 ) 54.00 Outstanding at March 31, 2017 325,852 55.22 The number of restricted stock units outstanding at March 31, 2017 included 4,316 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 (#) ($/share) Outstanding at December 31, 2016 1,524 $ 52.28 Restricted common stock issued — — Restrictions lapsed (1,524 ) 52.28 Forfeited — — Outstanding at March 31, 2017 — — 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, respectively. A total of 1.1 million shares of common stock are reserved for issuance under the plan. For the offering period that began on January 1, 2017, we withheld approximately $616,000 from employees participating in the plan as of March 31, 2017. For the three months ended March 31, 2017, we recorded approximately $138,000 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 the offering period using the Black-Scholes option pricing model with the following assumptions: Volatility 26.0 % Dividend yield 0 % Life (in years) 0.5 Risk-free interest rate 0.62 % |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE F – 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 permanently non-deductible expenses partially offset by the federal research and development credit. Additionally, under ASU 2016-09, excess tax benefits generated upon settlement or exercise of stock awards are now recognized as a reduction to income tax expense as a discrete tax item in the quarter that the event occurs creating potentially significant fluctuation in tax expense by quarter and by year. Our provisions for income taxes included current federal, foreign and state income tax expense, as well as deferred tax expense. As of March 31, 2017 we do not have any unrecognized tax benefits nor any accrued interest or tax penalties. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | NOTE G – 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 2017 2016 Numerator Net income $ 2,971 $ 1,044 Denominator Weighted average common shares outstanding, basic 17,154 16,783 Options to purchase common stock 199 244 Restricted stock units 40 — Employee stock purchase plan — 2 Weighted average common shares outstanding, diluted 17,393 17,029 Net income per share Basic $ 0.17 $ 0.06 Diluted $ 0.17 $ 0.06 The effect of approximately 269,000 and 325,000 outstanding potential common shares was excluded from the calculation of diluted net income per share for the three months ended March 31, 2017 and 2016, respectively, as they were anti-dilutive. |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description | Business Description We are a leading provider of cloud-based supply chain management solutions, providing network-proven integrations and comprehensive retail performance analytics to thousands of customers worldwide. We provide our solutions through the SPS Commerce platform, a cloud-based product 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 conformity with U.S. generally accepted accounting principles (“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, 2016 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, 2016 included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission on February 27, 2017. |
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, 2017, 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, 2016, as filed with the Securities and Exchange Commission on February 27, 2017, for additional information regarding our significant accounting policies. |
Recently Adopted/Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting We adopted ASU 2016-09 during the three months ended March 31, 2017. The impact to our consolidated balance sheet as of January 1, 2017 was a $16.3 million increase in deferred income tax assets, non-current and a corresponding $16.3 million decrease in accumulated deficit. This impact results from the cumulative-effect adjustment for previously unrecognized excess tax benefits using the modified retrospective method required by the new standard. We elected to adopt the changes in cash flow statement presentation prospectively to be consistent with the prospective transition for the treatment of excess tax benefits in the income statement. Accordingly, we no longer classify excess tax benefits as a financing activity subsequent to January 1, 2017. Recently Issued Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, the FASB issued ASU 2016-02, Leases |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investment in Cash Equivalents and Marketable Securities | Cash equivalents and marketable securities, consisted of the following: March 31, 2017 Amortized Unrealized Fair Value (Dollars in thousands) Cash equivalents: Money market funds $ 80,310 $ — $ 80,310 Marketable securities: Corporate bonds 15,681 (120 ) 15,561 Commercial paper 4,995 — 4,995 U.S. treasury securities 7,489 8 7,497 $ 108,475 $ (112 ) $ 108,363 Due within one year $ 105,860 Due within two years 2,503 Total $ 108,363 December 31, 2016 Amortized Unrealized Fair Value (Dollars in thousands) Cash equivalents: Money market funds $ 75,375 $ — $ 75,375 Marketable securities: Corporate bonds 15,681 (96 ) 15,585 Commercial paper 4,977 10 4,987 U.S. treasury securities 7,489 10 7,499 U.S. agency obligations 2,497 3 2,500 $ 106,019 $ (73 ) $ 105,946 Due within one year $ 98,452 Due within two years 7,494 Total $ 105,946 |
Summary of Financial Assets Measured at Fair Value on a Recurring Basis | The following tables present information about our financial assets that are measured at fair value on a recurring basis and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: March 31, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents: Money market funds $ 80,310 $ — $ — $ 80,310 Marketable securities: Corporate bonds — 15,561 — 15,561 Commerical paper — 4,995 — 4,995 U.S. treasury securities — 7,497 — 7,497 Total $ 80,310 $ 28,053 $ — $ 108,363 December 31, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash and cash equivalents: Money market funds $ 75,375 $ — $ — $ 75,375 Marketable securities: Corporate bonds — 15,585 — 15,585 Commerical paper — 4,987 — 4,987 U.S. treasury securities — 7,499 — 7,499 U.S. agency obligations — 2,500 — 2,500 Total $ 75,375 $ 30,571 $ — $ 105,946 |
Goodwill and Intangible Asset16
Goodwill and Intangible Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the three months ended March 31, 2017 and 2016 are as follows: 2017 (Dollars in thousands) Balances, January 1 $ 49,777 Goodwill acquired during the period — Foreign currency translation adjustments 512 Balances, March 31 $ 50,289 |
Intangible Assets Subject to Amortization | Intangible assets subject to amortization primarily include subscriber relationships, non-competition agreements and acquired technology and are amortized over their respective useful lives (ranging from 1 to 9 years). March 31, 2017 Carrying Amount Accumulated Foreign Currency Net (Dollars in thousands) Subscriber relationships $ 34,350 $ (16,633 ) $ 187 $ 17,904 Non-competition agreements 2,499 (1,910 ) 17 606 Technology and other 2,131 (1,264 ) 12 879 $ 38,980 $ (19,807 ) $ 216 $ 19,389 December 31, 2016 Carrying Amount Accumulated Foreign Currency Net (Dollars in thousands) Subscriber relationships $ 33,736 $ (15,708 ) $ 295 $ 18,323 Non-competition agreements 2,234 (1,818 ) 17 433 Technology and other 2,089 (1,120 ) 63 1,032 $ 38,059 $ (18,646 ) $ 375 $ 19,788 |
Estimated Annual Amortization Expense Related to Intangible Assets Subject to Amortization | The estimated annual amortization expense related to intangible assets subject to amortization for the next five years is as follows: (Dollars in thousands) Remainder of 2017 $ 3,322 2018 3,927 2019 3,636 2020 3,290 2021 2,453 Thereafter 2,761 $ 19,389 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments Under Operating Leases | At March 31, 2017, our future minimum payments under operating leases were as follows: (Dollars in thousands) Remainder of 2017 $ 2,438 2018 3,128 2019 3,217 2020 1,814 2021 1,035 Thereafter 1,174 $ 12,806 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stock-Based Compensation Expense | This expense was allocated as follows: Three Months Ended 2017 2016 (Dollars in thousands) Cost of revenues $ 451 $ 280 Operating expenses Sales and marketing 517 654 Research and development 229 138 General and administrative 1,103 855 Total stock-based compensation expense $ 2,300 $ 1,927 |
Stock Option Activity | Our stock option activity was as follows: Options Weighted Average (#) ($/share) Outstanding at December 31, 2016 1,016,012 $ 44.72 Granted 147,848 55.70 Exercised (54,564 ) 18.99 Forfeited (5,267 ) 54.03 Outstanding at March 31, 2017 1,104,029 47.42 |
Weighted Average Grant Date Fair Value of Options Granted, Assumptions | The weighted average grant date fair value of options granted during the first three months of 2017 was $55.70 and this was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Volatility 37.5 % Dividend yield 0 % Life (in years) 4.6 Risk-free interest rate 1.88 % |
Fair Value Estimation of Common Stock Using Black-Scholes Option Pricing Model, Assumptions | The fair value was estimated based on the market price of our common stock at the beginning of the offering period using the Black-Scholes option pricing model with the following assumptions: Volatility 26.0 % Dividend yield 0 % Life (in years) 0.5 Risk-free interest rate 0.62 % |
Restricted Stock Units and Performance Share Units [Member] | |
Restricted Stock Units, Restricted Stock Awards and PSUs | Activity for our restricted stock units and PSUs was as follows: Restricted Stock Weighted Average (#) ($/share) Outstanding at December 31, 2016 189,042 $ 54.14 Granted 203,680 55.70 Vested and common stock issued (64,818 ) 53.63 Forfeited (2,052 ) 54.00 Outstanding at March 31, 2017 325,852 55.22 |
Restricted Stock Award [Member] | |
Restricted Stock Units, Restricted Stock Awards and PSUs | Our restricted stock awards activity was as follows: Restricted Stock Weighted Average (#) ($/share) Outstanding at December 31, 2016 1,524 $ 52.28 Restricted common stock issued — — Restrictions lapsed (1,524 ) 52.28 Forfeited — — Outstanding at March 31, 2017 — — |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 2017 2016 Numerator Net income $ 2,971 $ 1,044 Denominator Weighted average common shares outstanding, basic 17,154 16,783 Options to purchase common stock 199 244 Restricted stock units 40 — Employee stock purchase plan — 2 Weighted average common shares outstanding, diluted 17,393 17,029 Net income per share Basic $ 0.17 $ 0.06 Diluted $ 0.17 $ 0.06 |
General - Additional Informatio
General - Additional Information (Detail) - ASU 2016-09 [Member] $ in Millions | Mar. 31, 2017USD ($) |
Deferred Income Tax Assets, Non-Current [Member] | |
Schedule Of Accounting Policies [Line Items] | |
Cumulative effect of change due to new accounting pronouncement | $ 16.3 |
Accumulated Deficit [Member] | |
Schedule Of Accounting Policies [Line Items] | |
Cumulative effect of change due to new accounting pronouncement | $ 16.3 |
Financial Instruments - Summary
Financial Instruments - Summary of Investment in Cash Equivalents and Marketable Securities (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Cash Equivalents and Marketable Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due within one year | $ 105,860 | $ 98,452 |
Amortized Cost | 108,475 | 106,019 |
Due within two years | 2,503 | 7,494 |
Unrealized Gains (Losses) | (112) | (73) |
Fair Value | 108,363 | 105,946 |
Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 80,310 | 75,375 |
Fair Value | 80,310 | 75,375 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 15,681 | 15,681 |
Unrealized Gains (Losses) | (120) | (96) |
Fair Value | 15,561 | 15,585 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 4,995 | 4,977 |
Unrealized Gains (Losses) | 10 | |
Fair Value | 4,995 | 4,987 |
U.S. Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,489 | 7,489 |
Unrealized Gains (Losses) | 8 | 10 |
Fair Value | $ 7,497 | 7,499 |
U.S. Agency Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,497 | |
Unrealized Gains (Losses) | 3 | |
Fair Value | $ 2,500 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) | Mar. 31, 2017USD ($) |
Money Market Funds [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Unrealized Losses | $ 0 |
Financial Instruments - Summa23
Financial Instruments - Summary of Financial Assets Measured at Fair Value on a Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | $ 108,363 | $ 105,946 |
Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 80,310 | 75,375 |
Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 15,561 | 15,585 |
Commercial Paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 4,995 | 4,987 |
U.S. Treasury Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 7,497 | 7,499 |
U.S. Agency Obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 2,500 | |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 80,310 | 75,375 |
Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 80,310 | 75,375 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 28,053 | 30,571 |
Level 2 [Member] | Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 15,561 | 15,585 |
Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 4,995 | 4,987 |
Level 2 [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | $ 7,497 | 7,499 |
Level 2 [Member] | U.S. Agency Obligations [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | $ 2,500 |
Goodwill and Intangible Asset24
Goodwill and Intangible Assets, net - Schedule of Changes in Carrying Amount of Goodwill (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Balances, January 1 | $ 49,777 |
Goodwill acquired during the period | 0 |
Foreign currency translation adjustments | 512 |
Balances, March 31 | $ 50,289 |
Goodwill and Intangible Asset25
Goodwill and Intangible Assets, net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 1,215 | $ 1,161 |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets useful life | 1 year | |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets useful life | 9 years |
Goodwill and Intangible Asset26
Goodwill and Intangible Assets, net - Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | $ 38,980 | $ 38,059 |
Accumulated Amortization | (19,807) | (18,646) |
Foreign Currency Translation | 216 | 375 |
Net | 19,389 | 19,788 |
Subscriber Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 34,350 | 33,736 |
Accumulated Amortization | (16,633) | (15,708) |
Foreign Currency Translation | 187 | 295 |
Net | 17,904 | 18,323 |
Non-competition Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 2,499 | 2,234 |
Accumulated Amortization | (1,910) | (1,818) |
Foreign Currency Translation | 17 | 17 |
Net | 606 | 433 |
Technology and Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 2,131 | 2,089 |
Accumulated Amortization | (1,264) | (1,120) |
Foreign Currency Translation | 12 | 63 |
Net | $ 879 | $ 1,032 |
Goodwill and Intangible Asset27
Goodwill and Intangible Assets, net - Estimated Annual Amortization Expense Related to Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2017 | $ 3,322 | |
2,018 | 3,927 | |
2,019 | 3,636 | |
2,020 | 3,290 | |
2,021 | 2,453 | |
Thereafter | 2,761 | |
Net | $ 19,389 | $ 19,788 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Payments Under Operating Leases (Detail) $ in Thousands | Mar. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2017 | $ 2,438 |
2,018 | 3,128 |
2,019 | 3,217 |
2,020 | 1,814 |
2,021 | 1,035 |
Thereafter | 1,174 |
Operating leases, total | $ 12,806 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2017shares | Mar. 31, 2017USD ($)OfferingPeriods$ / sharesshares | Mar. 31, 2016USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant | shares | 4,500,000 | ||
Stock-based compensation expense | $ | $ 2,300,000 | $ 1,927,000 | |
Unrecognized stock-based compensation expense | $ | $ 23,400,000 | ||
Unrecognized stock-based compensation, expected to be recognized, weighted average period | 3 years | ||
Stock options vest, period | 4 years | ||
Stock options contractual term, from the date of grant | Seven to ten years | ||
Stock options exercisable | shares | 630,995 | ||
Weighted average exercise price | $ / shares | $ 42.11 | ||
Weighted average remaining contractual life | 4 years 8 months 23 days | ||
Weighted average fair value per share of options granted | $ / shares | $ 55.70 | ||
Number of RSU's vested and not issued during the period | shares | 4,316 | ||
Percentage of common stock on fair market value | 85.00% | ||
Number of offerings per year | OfferingPeriods | 2 | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ | $ 138,000 | ||
Common stock reserved for future issuance | shares | 1,100,000 | ||
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vest, period | 4 years | ||
Restricted Stock Award [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock awards units vest over, period | 1 year | ||
Equity Incentive Plan [Member] | 2010 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Additional shares were authorized under 2010 Equity Incentive Plan | shares | 1,024,868 | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee stock purchase plan, employees contribution | $ | $ 616,000 | ||
Performance Share Unit [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ | $ 169,000 | ||
Stock options vest, period | 3 years | ||
Maximum [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options contractual term range | 10 years | ||
Minimum [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options contractual term range | 7 years |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 2,300 | $ 1,927 |
Cost of Revenues [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 451 | 280 |
Sales and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 517 | 654 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 229 | 138 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 1,103 | $ 855 |
Stock-Based Compensation - St31
Stock-Based Compensation - Stock Option Activity (Detail) | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Options Outstanding, Beginning balance | shares | 1,016,012 |
Options, Granted | shares | 147,848 |
Options, Exercised | shares | (54,564) |
Options, Forfeited | shares | (5,267) |
Options Outstanding, Ending balance | shares | 1,104,029 |
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 44.72 |
Weighted Average Exercise Price, Granted | $ / shares | 55.70 |
Weighted Average Exercise Price, Exercised | $ / shares | 18.99 |
Weighted Average Exercise Price, Forfeited | $ / shares | 54.03 |
Weighted Average Exercise Price, Outstanding, Ending Balance | $ / shares | $ 47.42 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Grant Date Fair Value of Options Granted, Assumptions (Detail) - Stock Options [Member] | 3 Months Ended |
Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 37.50% |
Dividend yield | 0.00% |
Life (in years) | 4 years 7 months 6 days |
Risk-free interest rate | 1.88% |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units and PSUs (Detail) - Restricted Stock Units and Performance Share Units [Member] | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock awards, Outstanding, Beginning Balance | shares | 189,042 |
Granted, stock units | shares | 203,680 |
Vested, stock units | shares | (64,818) |
Forfeited, stock units | shares | (2,052) |
Stock awards, Outstanding, Ending Balance | shares | 325,852 |
Weighted average grant date fair value, Outstanding, Beginning Balance | $ / shares | $ 54.14 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 55.70 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 53.63 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 54 |
Weighted average grant date fair value, Outstanding, Ending Balance | $ / shares | $ 55.22 |
Stock-Based Compensation - Re34
Stock-Based Compensation - Restricted Stock Awards (Detail) - Restricted Stock Award [Member] | 3 Months Ended |
Mar. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock awards, Outstanding, Beginning Balance | shares | 1,524 |
Restricted common stock issued, stock awards | shares | 0 |
Restrictions lapsed, stock awards | shares | (1,524) |
Forfeited, stock awards | shares | 0 |
Weighted average grant date fair value, Outstanding, Beginning Balance | $ / shares | $ 52.28 |
Restricted common stock issued, Weighted Average Grant Date Fair Value | $ / shares | 0 |
Restrictions lapsed, Weighted Average Grant Date Fair Value | $ / shares | 52.28 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | $ 0 |
Stock-Based Compensation - Fair
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, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 26.00% |
Dividend yield | 0.00% |
Life (in years) | 6 months |
Risk-free interest rate | 0.62% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | Mar. 31, 2017USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 0 |
Net Income Per Share - Componen
Net Income Per Share - Components of Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Numerator | ||
Net income | $ 2,971 | $ 1,044 |
Denominator | ||
Weighted average common shares outstanding, basic | 17,154 | 16,783 |
Options to purchase common stock | 199 | 244 |
Restricted stock units | 40 | |
Employee stock purchase plan | 2 | |
Weighted average common shares outstanding, diluted | 17,393 | 17,029 |
Net income per share | ||
Basic | $ 0.17 | $ 0.06 |
Diluted | $ 0.17 | $ 0.06 |
Net Income Per Share - Addition
Net Income Per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Outstanding potential common shares excluded from computation of net income per share | 269,000 | 325,000 |