Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 23, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
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 | 17,224,320 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 128,984 | $ 115,877 |
Short-term marketable securities | 34,869 | 23,076 |
Accounts receivable, less allowance for doubtful accounts of $878 and $515, respectively | 24,175 | 20,746 |
Deferred costs | 23,326 | 19,224 |
Other current assets | 5,853 | 7,010 |
Total current assets | 217,207 | 185,933 |
PROPERTY AND EQUIPMENT, net | 15,616 | 15,314 |
GOODWILL | 51,783 | 49,777 |
INTANGIBLE ASSETS, net | 17,720 | 19,788 |
MARKETABLE SECURITIES, non-current | 2,491 | 7,494 |
OTHER ASSETS | ||
Deferred costs, non-current | 6,475 | 6,086 |
Deferred income tax asset, non-current | 26,628 | 12,446 |
Other non-current assets | 1,101 | 1,527 |
Total assets | 339,021 | 298,365 |
CURRENT LIABILITIES | ||
Accounts payable | 3,089 | 2,302 |
Accrued compensation | 12,681 | 13,740 |
Accrued expenses | 3,991 | 3,508 |
Deferred revenue | 16,209 | 11,055 |
Deferred rent | 1,655 | 1,556 |
Total current liabilities | 37,625 | 32,161 |
OTHER LIABILITIES | ||
Deferred revenue, non-current | 10,625 | 10,847 |
Deferred rent, non-current | 3,498 | 4,179 |
Deferred income tax liability, non-current | 2,100 | 1,911 |
Total liabilities | 53,848 | 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; 17,224,060 and 17,081,145 shares issued and outstanding, respectively | 17 | 17 |
Additional paid-in capital | 294,943 | 286,315 |
Accumulated deficit | (10,800) | (33,739) |
Accumulated other comprehensive income (loss) | 1,013 | (3,326) |
Total stockholders’ equity | 285,173 | 249,267 |
Total liabilities and stockholders’ equity | $ 339,021 | $ 298,365 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 878 | $ 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 | 17,224,060 | 17,081,145 |
Common stock, shares outstanding | 17,224,060 | 17,081,145 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Revenues | $ 56,150 | $ 49,284 | $ 162,366 | $ 142,234 |
Cost of revenues | 18,645 | 16,171 | 54,166 | 47,024 |
Gross profit | 37,505 | 33,113 | 108,200 | 95,210 |
Operating expenses | ||||
Sales and marketing | 18,239 | 16,526 | 54,059 | 49,092 |
Research and development | 6,549 | 5,574 | 17,023 | 16,185 |
General and administrative | 8,744 | 7,149 | 24,709 | 21,516 |
Amortization of intangible assets | 1,128 | 1,194 | 3,460 | 3,553 |
Total operating expenses | 34,660 | 30,443 | 99,251 | 90,346 |
Income from operations | 2,845 | 2,670 | 8,949 | 4,864 |
Other income (expense) | ||||
Interest income, net | 272 | 112 | 704 | 408 |
Other income (expense), net | (195) | 947 | (356) | 866 |
Total other income (expense), net | 77 | 1,059 | 348 | 1,274 |
Income before income taxes | 2,922 | 3,729 | 9,297 | 6,138 |
Income tax expense | (1,058) | (1,220) | (2,636) | (2,233) |
Net income | $ 1,864 | $ 2,509 | $ 6,661 | $ 3,905 |
Net income per share | ||||
Basic | $ 0.11 | $ 0.15 | $ 0.39 | $ 0.23 |
Diluted | $ 0.11 | $ 0.14 | $ 0.38 | $ 0.23 |
Weighted average common shares used to compute net income per share | ||||
Basic | 17,223 | 17,001 | 17,192 | 16,916 |
Diluted | 17,410 | 17,341 | 17,394 | 17,185 |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustments | $ 1,779 | $ 443 | $ 4,291 | $ 2,408 |
Unrealized gain (loss) on investments (net of tax of $10, ($50), $0, $12) | 17 | (80) | 20 | |
Reclassification of unrealized gain on investments into earnings (net of tax of $44, $14, $29, $13) | 72 | 22 | 48 | 21 |
Comprehensive income | $ 3,732 | $ 2,894 | $ 11,000 | $ 6,354 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Income Statement [Abstract] | ||||
Tax on net unrealized gain (loss) on investment securities available for sale | $ 10 | $ (50) | $ 0 | $ 12 |
Reclassification of unrealized gain on investments into earnings, tax | $ 44 | $ 14 | $ 29 | $ 13 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities | ||
Net income | $ 6,661 | $ 3,905 |
Reconciliation of net income to net cash provided by operating activities | ||
Deferred income taxes | 1,968 | (818) |
Share-based earn-out liability | (1,103) | |
Depreciation and amortization of property and equipment | 5,261 | 4,883 |
Amortization of intangible assets | 3,460 | 3,553 |
Provision for doubtful accounts | 1,365 | 977 |
Stock-based compensation | 6,833 | 6,004 |
Other, net | (19) | |
Changes in assets and liabilities | ||
Accounts receivable | (4,476) | (3,879) |
Deferred costs | (4,487) | (4,194) |
Other current and non-current assets | 1,135 | (2,840) |
Accounts payable | 632 | (90) |
Accrued compensation | (1,140) | 173 |
Accrued expenses | 469 | 126 |
Deferred revenue | 4,932 | 3,927 |
Deferred rent | (622) | (271) |
Net cash provided by operating activities | 21,972 | 10,353 |
Cash flows from investing activities | ||
Purchases of property and equipment | (5,242) | (5,972) |
Purchases of marketable securities | (29,819) | (18,137) |
Maturities of marketable securities | 23,029 | 12,500 |
Acquisitions of businesses and intangible assets, net of cash acquired | (500) | (18,062) |
Net cash used in investing activities | (12,532) | (29,671) |
Cash flows from financing activities | ||
Net proceeds from exercise of options to purchase common stock | 1,307 | 3,520 |
Excess tax benefits from exercise of options to purchase common stock | 2,710 | |
Net proceeds from employee stock purchase plan | 1,011 | 786 |
Net cash provided by financing activities | 2,318 | 7,016 |
Effect of foreign currency exchange rate changes | 1,349 | 399 |
Net increase (decrease) in cash and cash equivalents | 13,107 | (11,903) |
Cash and cash equivalents at beginning of period | 115,877 | 121,538 |
Cash and cash equivalents at end of period | $ 128,984 | $ 109,635 |
General
General | 9 Months Ended |
Sep. 30, 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 fulfillment, sourcing, and item assortment management solutions, along with 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 logistics firms orchestrate the sourcing, set up of new vendors and items, and fulfillment of the products that customers buy from retailers and suppliers. 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 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 nine months ended September 30, 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 nine months ended September 30, 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. Recent 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 | 9 Months Ended |
Sep. 30, 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 in the condensed consolidated statements of comprehensive income. Realized gains or losses are included in other income (expense) in the condensed consolidated statements of comprehensive income. 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. Cash equivalents and marketable securities, consisted of the following: September 30, 2017 Amortized Unrealized Fair Cost Gains (Losses) Value (Dollars in thousands) Cash equivalents: Money market funds $ 76,507 $ — $ 76,507 Marketable securities: Corporate bonds 15,033 (35 ) 14,998 Commercial paper 9,944 14 9,958 U.S. treasury securities 12,380 24 12,404 $ 113,864 $ 3 $ 113,867 Due within one year $ 111,376 Due within two years 2,491 Total $ 113,867 December 31, 2016 Amortized Unrealized Fair Cost Gains (Losses) 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 September 30, 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 table presents 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: September 30, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash equivalents: Money market funds $ 76,507 $ — $ — $ 76,507 Marketable securities: Corporate bonds — 14,998 — 14,998 Commercial paper — 9,958 — 9,958 U.S. treasury securities — 12,404 — 12,404 Total $ 76,507 $ 37,360 $ — $ 113,867 December 31, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash equivalents: Money market funds $ 75,375 $ — $ — $ 75,375 Marketable securities: Corporate bonds — 15,585 — 15,585 Commercial 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 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 | 9 Months Ended |
Sep. 30, 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 nine months ended September 30, 2017 are as follows: 2017 (Dollars in thousands) Balances, January 1 $ 49,777 Goodwill acquired during the period — Foreign currency translation adjustments 2,006 Balances, September 30 $ 51,783 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). Information regarding intangible assets included on our consolidated balance sheets is as follows: September 30, 2017 Foreign Carrying Accumulated Currency Amount Amortization Translation Net (Dollars in thousands) Subscriber relationships $ 34,350 $ (18,603 ) $ 679 $ 16,426 Non-competition agreements 2,499 (2,015 ) 49 533 Technology and other 2,130 (1,436 ) 67 761 $ 38,979 $ (22,054 ) $ 795 $ 17,720 December 31, 2016 Foreign Carrying Accumulated Currency Amount Amortization Translation 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 Total amortization expense for intangible assets during the three months ended September 30, 2017 and 2016 was $1.1 million and $1.2 million, respectively. Total amortization expense for intangible assets during the nine months ended September 30, 2017 and 2016 was $3.5 million and $3.6 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 $ 1,125 2018 4,035 2019 3,743 2020 3,375 2021 2,529 Thereafter 2,913 $ 17,720 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE D – Commitments and Contingencies Operating Leases At September 30, 2017, our future minimum payments under operating leases were as follows: (Dollars in thousands) Remainder of 2017 $ 897 2018 3,639 2019 3,678 2020 1,981 2021 1,077 Thereafter 1,173 $ 12,445 |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased 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 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 February 2017, 1,024,868 additional shares were reserved for future issuance under our 2010 Equity Incentive Plan. At September 30, 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 $6.8 million for the three and nine months ended September 30, 2017 and $2.0 million and $6.0 million for the three and nine months ended September 30 Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of revenues $ 494 $ 319 $ 1,414 $ 916 Operating expenses Sales and marketing 565 620 1,656 1,913 Research and development 241 143 698 422 General and administrative 1,047 930 3,065 2,753 Total stock-based compensation expense $ 2,347 $ 2,012 $ 6,833 $ 6,004 As of September 30, 2017, there was approximately $17.9 million of unrecognized stock-based compensation expense under our equity compensation plans, which is expected to be recognized on a straight-line basis over a weighted average period of 2.6 years. Stock Options Stock options generally vest over four years and have a contractual term of seven to ten years from the date of grant. Our stock option activity was as follows: Weighted Average Options Exercise Price (#) ($/share) Outstanding at December 31, 2016 1,016,012 $ 44.72 Granted 169,451 56.02 Exercised (62,854 ) 20.79 Forfeited (10,622 ) 56.12 Outstanding at September 30, 2017 1,111,987 47.69 Of the total outstanding options at September 30, 2017, 708,209 were exercisable with a weighted average exercise price of $43.91 per share. The total outstanding options had a weighted average remaining contractual life of 4.3 years. The weighted average grant date fair value of options granted during the first nine months of 2017 was $18.90 and this was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Volatility 37.4 % Dividend yield 0 % Life (in years) 4.5 Risk-free interest rate 1.85 % Performance Share Units and Restricted Stock Units and Awards 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, we recognized expense of $169,000 for PSU awards; and during the three months ended June 30, 2017 we recognized a reversing benefit of $169,000 as the probability of attainment was decreased. We recognized no expense for PSU awards during the three months ended September 30, 2017. Restricted stock units vest over four years and, upon vesting, the holder is entitled to receive shares of our common stock. With restricted stock awards, shares of our common stock are issued when the award is granted and the restrictions lapse over one year. Activity for our performance share units and restricted stock units was as follows: Performance Share and Weighted Average Restricted Stock Units Grant Date Fair Value (#) ($/share) Outstanding at December 31, 2016 189,042 $ 54.14 Granted 207,738 55.74 Vested and common stock issued (64,818 ) 53.63 Forfeited (4,805 ) 54.55 Outstanding at September 30, 2017 327,157 55.25 The number of restricted stock units outstanding at September 30, 2017 included 30,907 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, 2016 1,524 $ 52.28 Restricted common stock issued 5,454 58.29 Restrictions lapsed (4,248 ) 56.13 Forfeited — — Outstanding at September 30, 2017 2,730 58.30 Employee Stock Purchase Plan Our employee stock purchase plan a llows 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 1.0 million shares of common stock are reserved for issuance under the plan. For the offering period that began on January 1, 2017 and ended on June 30, 2017, we withheld approximately $1,021,000 from employees participating in the plan. On June 30, 2017, approximately $1,011,000 of these funds were used to purchase 18,655 shares on behalf of the employees participating in the plan. The remaining funds were refunded to employees pursuant to the requirements of the plan. For the offering period that began on July 1, 2017 and will end on December 31, 2017, we have withheld approximately $599,000 as of September 30, 2017 from employees participating in the plan. For the three and nine months ended September 30, 2017 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 | 9 Months Ended |
Sep. 30, 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, 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 include current foreign and state income tax expense, as well as deferred tax expense. As of September 30, 2017 we do not have any unrecognized tax benefits nor any accrued interest or tax penalties. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Sep. 30, 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net income $ 1,864 $ 2,509 $ 6,661 $ 3,905 Net income per share Basic $ 0.11 $ 0.15 $ 0.39 $ 0.23 Diluted $ 0.11 $ 0.14 $ 0.38 $ 0.23 Weighted average common shares outstanding, basic 17,223 17,001 17,192 16,916 Options to purchase common stock 152 295 169 253 Restricted stock units 35 44 33 16 Employee stock purchase plan — 1 — — Weighted average common shares outstanding, diluted 17,410 17,341 17,394 17,185 Antidilutive shares 267 265 267 276 |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
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 |
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 nine months ended September 30, 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/Recent 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 nine months ended September 30, 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. Recent 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) | 9 Months Ended |
Sep. 30, 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: September 30, 2017 Amortized Unrealized Fair Cost Gains (Losses) Value (Dollars in thousands) Cash equivalents: Money market funds $ 76,507 $ — $ 76,507 Marketable securities: Corporate bonds 15,033 (35 ) 14,998 Commercial paper 9,944 14 9,958 U.S. treasury securities 12,380 24 12,404 $ 113,864 $ 3 $ 113,867 Due within one year $ 111,376 Due within two years 2,491 Total $ 113,867 December 31, 2016 Amortized Unrealized Fair Cost Gains (Losses) 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 table presents 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: September 30, 2017 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash equivalents: Money market funds $ 76,507 $ — $ — $ 76,507 Marketable securities: Corporate bonds — 14,998 — 14,998 Commercial paper — 9,958 — 9,958 U.S. treasury securities — 12,404 — 12,404 Total $ 76,507 $ 37,360 $ — $ 113,867 December 31, 2016 Level 1 Level 2 Level 3 Total (Dollars in thousands) Assets: Cash equivalents: Money market funds $ 75,375 $ — $ — $ 75,375 Marketable securities: Corporate bonds — 15,585 — 15,585 Commercial 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) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the nine months ended September 30, 2017 are as follows: 2017 (Dollars in thousands) Balances, January 1 $ 49,777 Goodwill acquired during the period — Foreign currency translation adjustments 2,006 Balances, September 30 $ 51,783 |
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). Information regarding intangible assets included on our consolidated balance sheets is as follows: September 30, 2017 Foreign Carrying Accumulated Currency Amount Amortization Translation Net (Dollars in thousands) Subscriber relationships $ 34,350 $ (18,603 ) $ 679 $ 16,426 Non-competition agreements 2,499 (2,015 ) 49 533 Technology and other 2,130 (1,436 ) 67 761 $ 38,979 $ (22,054 ) $ 795 $ 17,720 December 31, 2016 Foreign Carrying Accumulated Currency Amount Amortization Translation 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 $ 1,125 2018 4,035 2019 3,743 2020 3,375 2021 2,529 Thereafter 2,913 $ 17,720 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Payments Under Operating Leases | At September 30, 2017, our future minimum payments under operating leases were as follows: (Dollars in thousands) Remainder of 2017 $ 897 2018 3,639 2019 3,678 2020 1,981 2021 1,077 Thereafter 1,173 $ 12,445 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stock-Based Compensation Expense | This expense was allocated in the consolidated statements of comprehensive income as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Cost of revenues $ 494 $ 319 $ 1,414 $ 916 Operating expenses Sales and marketing 565 620 1,656 1,913 Research and development 241 143 698 422 General and administrative 1,047 930 3,065 2,753 Total stock-based compensation expense $ 2,347 $ 2,012 $ 6,833 $ 6,004 |
Stock Option Activity | Our stock option activity was as follows: Weighted Average Options Exercise Price (#) ($/share) Outstanding at December 31, 2016 1,016,012 $ 44.72 Granted 169,451 56.02 Exercised (62,854 ) 20.79 Forfeited (10,622 ) 56.12 Outstanding at September 30, 2017 1,111,987 47.69 |
Weighted Average Grant Date Fair Value of Options Granted, Assumptions | The weighted average grant date fair value of options granted during the first nine months of 2017 was $18.90 and this was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Volatility 37.4 % Dividend yield 0 % Life (in years) 4.5 Risk-free interest rate 1.85 % |
Fair Value Estimation of Common Stock Using Black-Scholes Option Pricing Model, Assumptions | The fair value was estimated based on the market price of our common stock at the beginning of the offering period using the Black-Scholes option pricing model with the following assumptions: Volatility 26.0 % Dividend yield 0 % Life (in years) 0.5 Risk-free interest rate 0.62 % |
Performance Share Units and Restricted Stock Units [Member] | |
Performance Share Units and Restricted Stock Units and Restricted Stock Awards | Activity for our performance share units and restricted stock units was as follows: Performance Share and Weighted Average Restricted Stock Units Grant Date Fair Value (#) ($/share) Outstanding at December 31, 2016 189,042 $ 54.14 Granted 207,738 55.74 Vested and common stock issued (64,818 ) 53.63 Forfeited (4,805 ) 54.55 Outstanding at September 30, 2017 327,157 55.25 |
Restricted Stock Award [Member] | |
Performance Share Units and 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, 2016 1,524 $ 52.28 Restricted common stock issued 5,454 58.29 Restrictions lapsed (4,248 ) 56.13 Forfeited — — Outstanding at September 30, 2017 2,730 58.30 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended September 30, September 30, 2017 2016 2017 2016 Net income $ 1,864 $ 2,509 $ 6,661 $ 3,905 Net income per share Basic $ 0.11 $ 0.15 $ 0.39 $ 0.23 Diluted $ 0.11 $ 0.14 $ 0.38 $ 0.23 Weighted average common shares outstanding, basic 17,223 17,001 17,192 16,916 Options to purchase common stock 152 295 169 253 Restricted stock units 35 44 33 16 Employee stock purchase plan — 1 — — Weighted average common shares outstanding, diluted 17,410 17,341 17,394 17,185 Antidilutive shares 267 265 267 276 |
General - Additional Informatio
General - Additional Information (Detail) - ASU 2016-09 [Member] $ in Millions | Jan. 01, 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 | Sep. 30, 2017 | Dec. 31, 2016 |
Cash Equivalents and Marketable Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due within one year | $ 111,376 | $ 98,452 |
Amortized Cost | 113,864 | 106,019 |
Due within two years | 2,491 | 7,494 |
Unrealized Gains (Losses) | 3 | (73) |
Fair Value | 113,867 | 105,946 |
Money Market Funds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 76,507 | 75,375 |
Fair Value | 76,507 | 75,375 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 15,033 | 15,681 |
Unrealized Gains (Losses) | (35) | (96) |
Fair Value | 14,998 | 15,585 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 9,944 | 4,977 |
Unrealized Gains (Losses) | 14 | 10 |
Fair Value | 9,958 | 4,987 |
U.S. Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,380 | 7,489 |
Unrealized Gains (Losses) | 24 | 10 |
Fair Value | $ 12,404 | 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) | Sep. 30, 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 | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | $ 113,867 | $ 105,946 |
Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 76,507 | 75,375 |
Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 14,998 | 15,585 |
Commercial Paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 9,958 | 4,987 |
U.S. Treasury Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 12,404 | 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 | 76,507 | 75,375 |
Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 76,507 | 75,375 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 37,360 | 30,571 |
Level 2 [Member] | Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 14,998 | 15,585 |
Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 9,958 | 4,987 |
Level 2 [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | $ 12,404 | 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 | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Balances, January 1 | $ 49,777 |
Goodwill acquired during the period | 0 |
Foreign currency translation adjustments | 2,006 |
Balances, September 30 | $ 51,783 |
Goodwill and Intangible Asset25
Goodwill and Intangible Assets, net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 1,128 | $ 1,194 | $ 3,460 | $ 3,553 |
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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | $ 38,979 | $ 38,059 |
Accumulated Amortization | (22,054) | (18,646) |
Foreign Currency Translation | 795 | 375 |
Net | 17,720 | 19,788 |
Subscriber Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 34,350 | 33,736 |
Accumulated Amortization | (18,603) | (15,708) |
Foreign Currency Translation | 679 | 295 |
Net | 16,426 | 18,323 |
Non-competition Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 2,499 | 2,234 |
Accumulated Amortization | (2,015) | (1,818) |
Foreign Currency Translation | 49 | 17 |
Net | 533 | 433 |
Technology and Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 2,130 | 2,089 |
Accumulated Amortization | (1,436) | (1,120) |
Foreign Currency Translation | 67 | 63 |
Net | $ 761 | $ 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 | Sep. 30, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2017 | $ 1,125 | |
2,018 | 4,035 | |
2,019 | 3,743 | |
2,020 | 3,375 | |
2,021 | 2,529 | |
Thereafter | 2,913 | |
Net | $ 17,720 | $ 19,788 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Payments Under Operating Leases (Detail) $ in Thousands | Sep. 30, 2017USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remainder of 2017 | $ 897 |
2,018 | 3,639 |
2,019 | 3,678 |
2,020 | 1,981 |
2,021 | 1,077 |
Thereafter | 1,173 |
Operating leases, total | $ 12,445 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) | Jun. 30, 2017USD ($)shares | Feb. 28, 2017shares | Sep. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)OfferingPeriod$ / sharesshares | Sep. 30, 2016USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for grant | shares | 4,500,000 | 4,500,000 | ||||||
Stock-based compensation expense | $ 2,347,000 | $ 2,012,000 | $ 6,833,000 | $ 6,004,000 | ||||
Unrecognized stock-based compensation expense | $ 17,900,000 | $ 17,900,000 | ||||||
Unrecognized stock-based compensation, expected to be recognized, weighted average period | 2 years 7 months 7 days | |||||||
Stock options exercisable | shares | 708,209 | 708,209 | ||||||
Weighted average exercise price | $ / shares | $ 43.91 | $ 43.91 | ||||||
Weighted average remaining contractual life | 4 years 3 months 19 days | |||||||
Weighted average fair value per share of options granted | $ / shares | $ 18.90 | |||||||
Number of offerings per year | OfferingPeriod | 2 | |||||||
Net proceeds from employee stock purchase plan | $ 1,011,000 | $ 786,000 | ||||||
Employee Stock Purchase Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ 152,000 | $ 444,000 | ||||||
Percentage of common stock on fair market value | 85.00% | |||||||
Common stock reserved for future issuance | shares | 1,000,000 | 1,000,000 | ||||||
Employee stock purchase plan, employees contribution | $ 1,021,000 | $ 599,000 | $ 1,021,000 | $ 599,000 | ||||
Net proceeds from employee stock purchase plan | $ 1,011,000 | |||||||
Employee stock purchase plan, shares purchased | shares | 18,655 | |||||||
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] | ||||||||
Stock options vest, period | 4 years | |||||||
Stock options contractual term, from the date of grant | seven to ten years | |||||||
Stock Options [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options contractual term range | 7 years | |||||||
Stock Options [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options contractual term range | 10 years | |||||||
Performance Share Unit [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation expense | $ 0 | $ 169,000 | ||||||
Stock options vest, period | 3 years | |||||||
Stock-based compensation reversing benefit | $ 169,000 | |||||||
Restricted Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options vest, period | 4 years | |||||||
Number of RSU's vested and not issued during the period | shares | 30,907 | |||||||
Restricted Stock Award [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Restricted stock awards units vest over, period | 1 year |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 2,347 | $ 2,012 | $ 6,833 | $ 6,004 |
Cost of Revenues [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 494 | 319 | 1,414 | 916 |
Sales and Marketing [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 565 | 620 | 1,656 | 1,913 |
Research and Development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | 241 | 143 | 698 | 422 |
General and Administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Stock-based compensation expense | $ 1,047 | $ 930 | $ 3,065 | $ 2,753 |
Stock-Based Compensation - St31
Stock-Based Compensation - Stock Option Activity (Detail) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Options Outstanding, Beginning balance | shares | 1,016,012 |
Options, Granted | shares | 169,451 |
Options, Exercised | shares | (62,854) |
Options, Forfeited | shares | (10,622) |
Options Outstanding, Ending balance | shares | 1,111,987 |
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 44.72 |
Weighted Average Exercise Price, Granted | $ / shares | 56.02 |
Weighted Average Exercise Price, Exercised | $ / shares | 20.79 |
Weighted Average Exercise Price, Forfeited | $ / shares | 56.12 |
Weighted Average Exercise Price, Outstanding, Ending Balance | $ / shares | $ 47.69 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted Average Grant Date Fair Value of Options Granted, Assumptions (Detail) - Stock Options [Member] | 9 Months Ended |
Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 37.40% |
Dividend yield | 0.00% |
Life (in years) | 4 years 6 months |
Risk-free interest rate | 1.85% |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Share Units and Restricted Stock Units (Detail) - Performance Share Units and Restricted Stock Units [Member] | 9 Months Ended |
Sep. 30, 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 | 207,738 |
Vested, stock units | shares | (64,818) |
Forfeited, stock units | shares | (4,805) |
Stock awards, Outstanding, Ending Balance | shares | 327,157 |
Weighted average grant date fair value, Outstanding, Beginning Balance | $ / shares | $ 54.14 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 55.74 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 53.63 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 54.55 |
Weighted average grant date fair value, Outstanding, Ending Balance | $ / shares | $ 55.25 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Awards (Detail) - Restricted Stock Award [Member] | 9 Months Ended |
Sep. 30, 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 | 5,454 |
Restrictions lapsed, stock awards | shares | (4,248) |
Forfeited, stock awards | shares | 0 |
Stock awards, Outstanding, Ending Balance | shares | 2,730 |
Weighted average grant date fair value, Outstanding, Beginning Balance | $ / shares | $ 52.28 |
Restricted common stock issued, Weighted Average Grant Date Fair Value | $ / shares | 58.29 |
Restrictions lapsed, Weighted Average Grant Date Fair Value | $ / shares | 56.13 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 0 |
Weighted average grant date fair value, Outstanding, Ending Balance | $ / shares | $ 58.30 |
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] | 9 Months Ended |
Sep. 30, 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) | Sep. 30, 2017USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 0 |
Accrued interest or tax penalties | $ 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 | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 1,864 | $ 2,509 | $ 6,661 | $ 3,905 |
Net income per share | ||||
Basic | $ 0.11 | $ 0.15 | $ 0.39 | $ 0.23 |
Diluted | $ 0.11 | $ 0.14 | $ 0.38 | $ 0.23 |
Weighted average common shares outstanding, basic | 17,223 | 17,001 | 17,192 | 16,916 |
Options to purchase common stock | 152 | 295 | 169 | 253 |
Restricted stock units | 35 | 44 | 33 | 16 |
Employee stock purchase plan | 1 | |||
Weighted average common shares outstanding, diluted | 17,410 | 17,341 | 17,394 | 17,185 |
Antidilutive shares | 267 | 265 | 267 | 276 |