Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 20, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
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 | 17,362,565 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 120,547 | $ 123,127 |
Short-term investments | 45,272 | 40,192 |
Accounts receivable, less allowance for doubtful accounts of $775 and $763, respectively | 25,948 | 24,897 |
Deferred costs | 31,318 | 29,966 |
Other current assets | 5,696 | 6,149 |
Total current assets | 228,781 | 224,331 |
PROPERTY AND EQUIPMENT, net | 17,304 | 16,856 |
GOODWILL | 51,030 | 51,613 |
INTANGIBLE ASSETS, net | 15,577 | 16,529 |
INVESTMENTS | 2,471 | 5,206 |
OTHER ASSETS | ||
Deferred costs | 10,239 | 9,967 |
Deferred income tax asset | 12,596 | 13,697 |
Other assets | 1,598 | 1,539 |
Total assets | 339,596 | 339,738 |
CURRENT LIABILITIES | ||
Accounts payable | 3,472 | 4,463 |
Accrued compensation | 11,617 | 15,228 |
Accrued expenses | 4,111 | 4,712 |
Deferred revenue | 21,583 | 17,863 |
Deferred rent | 1,313 | 1,679 |
Total current liabilities | 42,096 | 43,945 |
OTHER LIABILITIES | ||
Deferred revenue | 2,691 | 2,731 |
Deferred rent | 4,690 | 3,064 |
Deferred income tax liability | 1,768 | 1,887 |
Total liabilities | 51,245 | 51,627 |
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; 17,346,080 and 17,249,153 shares issued; and 17,109,949 and 17,127,006 outstanding, respectively | 17 | 17 |
Treasury stock, at cost; 236,131 and 122,147 shares, respectively | (11,686) | (5,815) |
Additional paid-in capital | 305,759 | 301,863 |
Accumulated deficit | (5,357) | (8,611) |
Accumulated other comprehensive (loss) income | (382) | 657 |
Total stockholders’ equity | 288,351 | 288,111 |
Total liabilities and stockholders’ equity | $ 339,596 | $ 339,738 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 775 | $ 763 |
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 | 17,346,080 | 17,249,153 |
Common stock, shares outstanding | 17,109,949 | 17,127,006 |
Treasury stock, shares | 236,131 | 122,147 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenues | $ 59,092 | $ 51,879 |
Cost of revenues | 19,758 | 17,330 |
Gross profit | 39,334 | 34,549 |
Operating expenses | ||
Sales and marketing | 18,647 | 17,023 |
Research and development | 5,132 | 5,105 |
General and administrative | 10,130 | 7,827 |
Amortization of intangible assets | 1,125 | 1,215 |
Total operating expenses | 35,034 | 31,170 |
Income from operations | 4,300 | 3,379 |
Other income (expense) | ||
Interest income, net | 414 | 191 |
Other income (expense), net | (154) | (60) |
Total other income, net | 260 | 131 |
Income before income taxes | 4,560 | 3,510 |
Income tax expense | 1,306 | 525 |
Net income | $ 3,254 | $ 2,985 |
Net income per share | ||
Basic | $ 0.19 | $ 0.17 |
Diluted | $ 0.19 | $ 0.17 |
Weighted average common shares used to compute net income per share | ||
Basic | 17,093 | 17,154 |
Diluted | 17,307 | 17,393 |
Other comprehensive income | ||
Foreign currency translation adjustments | $ (1,055) | $ 1,577 |
Unrealized gain (loss) on investments, net of tax of $13 and ($5) | 39 | (8) |
Reclassification of unrealized gain on investments into earnings, net of tax of ($8) and ($9) | (24) | (16) |
Comprehensive income | $ 2,214 | $ 4,538 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Unrealized gain (loss) on investments, tax | $ 13 | $ (5) |
Reclassification of unrealized gain on investments into earnings, tax | $ (8) | $ (9) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | ||
Net income | $ 3,254 | $ 2,985 |
Reconciliation of net income to net cash provided by operating activities | ||
Deferred income taxes | 1,020 | 299 |
Depreciation and amortization of property and equipment | 2,083 | 1,691 |
Amortization of intangible assets | 1,125 | 1,215 |
Provision for doubtful accounts | 410 | 332 |
Stock-based compensation | 3,533 | 2,300 |
Other, net | (32) | (25) |
Changes in assets and liabilities | ||
Accounts receivable | (1,520) | (2,201) |
Deferred costs | (1,628) | (1,343) |
Other current and non-current assets | 367 | 180 |
Accounts payable | 317 | 1,169 |
Accrued compensation | (3,939) | (1,870) |
Accrued expenses | (592) | 945 |
Deferred revenue | 3,680 | 5,041 |
Deferred rent | 1,271 | (319) |
Net cash provided by operating activities | 9,349 | 10,399 |
Cash flows from investing activities | ||
Purchases of property and equipment | (3,884) | (1,299) |
Purchases of investments | (19,927) | (4,995) |
Maturities of investments | 17,500 | 7,500 |
Acquisitions of businesses and intangible assets, net of cash acquired | (381) | (500) |
Net cash (used in) provided by investing activities | (6,692) | 706 |
Cash flows from financing activities | ||
Repurchases of common stock | (5,871) | |
Net proceeds from exercise of options to purchase common stock | 715 | 1,037 |
Net cash (used in) provided by financing activities | (5,156) | 1,037 |
Effect of foreign currency exchange rate changes | (81) | 688 |
Net (decrease) increase in cash and cash equivalents | (2,580) | 12,830 |
Cash and cash equivalents at beginning of period | 123,127 | 115,877 |
Cash and cash equivalents at end of period | $ 120,547 | $ 128,707 |
General
General | 3 Months Ended |
Mar. 31, 2018 | |
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 retailers, suppliers, distributors and logistics firms orchestrate the sourcing, set up of new vendors and items and fulfillment of products that consumers buy. 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 Effective January 1, 2018, we adopted the requirements of Accounting Standards Update ("ASU") No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606) 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. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09 which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance replaced most existing revenue recognition guidance in GAAP. Topic 606 also includes Subtopic 340-40, Other Assets and Deferred Costs – Contracts with Customers We adopted the new standard effective January 1, 2018, on a retrospective basis. The new standard did not impact our recognition of the recurring revenue received from customers for our cloud-based supply chain solutions; however, the adoption of the new standard impacted our accounting for certain upfront set-up fees, the periods over which the related revenues are recognized, and the timing of revenue recognition for these set-up fees. The adoption of the new standard also impacted our accounting for certain costs to obtain our contracts, specifically related to the periods over which commissions are recognized as well as the timing of cost recognition. Selected condensed consolidated balance sheet line items, which reflect the adoption of ASU 2014-09 are as follows (in thousands): December 31, 2017 As previously reported Adjustments As adjusted ASSETS Deferred costs $ 25,091 $ 4,875 $ 29,966 Deferred costs, non-current 6,770 3,197 9,967 Deferred income tax asset 17,551 (3,854 ) 13,697 LIABILITIES Accrued compensation 15,886 (658 ) 15,228 Deferred revenue 16,407 1,456 17,863 Deferred revenue, non-current 10,602 (7,871 ) 2,731 STOCKHOLDERS’ EQUITY Accumulated deficit (19,902 ) 11,291 (8,611 ) Selected unaudited condensed consolidated statement of operations line items, which reflect the adoption of ASU 2014-09 are as follows (in thousands): For the three months ended March 31, 2017 As previously reported Adjustments As adjusted Revenues 51,932 (53 ) 51,879 Operating expenses Sales and marketing 17,079 (56 ) 17,023 Income from operations 3,376 3 3,379 Income tax expense 536 (11 ) 525 Net income $ 2,971 $ 14 $ 2,985 Net income per share Basic $ 0.17 $ — $ 0.17 Diluted $ 0.17 $ — $ 0.17 Selected unaudited condensed consolidated statement of cash flows line items, which reflect the adoption of ASU 2014-09 are as follows (in thousands): For the three months ended March 31, 2017 As previously reported Adjustments As adjusted Cash flows from operating activities Net income $ 2,971 $ 14 $ 2,985 Reconciliation of net income to net cash provided by operating activities Deferred income taxes 310 (11 ) 299 Changes in assets and liabilities Deferred costs (1,649 ) 306 (1,343 ) Accrued compensation (1,508 ) (362 ) (1,870 ) Deferred revenue 4,988 53 5,041 Net cash provided by operating activities 10,399 — 10,399 In March 2018, we adopted FASB ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 “Income Taxes” Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) Significant Accounting Policies Except for the accounting policies for revenue recognition and deferred commissions that were updated as a result of adopting ASU 2014-09, there were no material changes in our significant accounting policies during the three months ended March 31, 2018. See Note A to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC on February 26, 2018, for additional information regarding our significant accounting policies. Revenue Recognition We derive our revenues primarily from the following revenue streams: Three Months Ended March 31, 2018 2017 Recurring revenues: Fulfillment $ 45,364 $ 38,543 Analytics 8,259 8,235 Other 1,237 1,206 Recurring Revenues 54,860 47,984 One-time revenues 4,232 3,895 $ 59,092 $ 51,879 Revenues are recognized when our services are made available to our customers, in an amount that reflects the consideration we are contractually and legally entitled to in exchange for those services. We determine revenue recognition through the following steps: - Identification of the contract, or contracts, with a customer - Identification of the performance obligations in the contract - Determination of the transaction price - Allocation of the transaction price to the performance obligations in the contract - Recognition of revenue when, or as, we satisfy a performance obligation Recurring Revenues Recurring revenues consists of recurring subscriptions from customers that utilize our Fulfillment, Analytics, and Other cloud-based supply chain management solutions. Revenue for these solutions is generally recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our contracts with our recurring revenue customers are recurring in nature, ranging from monthly to annual, and generally allow the customer to cancel the contract for any reason with 30 to 90 days’ notice. Timing of billings varies by customer and by contract type and are either in advance or within 30 days of the service being performed. The deferred revenue liability for recurring revenue contracts are for one year or less and recognized on a ratable basis over the contract term. We have applied the optional exemption under ASC 606-10-50-14(a) and will not disclose information about the remaining performance obligations for contracts which have original durations of one year or less. One-time Revenues One-time revenues consist of set-up fees from customers and miscellaneous one-time fees. Set-up fees are specific for each connection a customer has with a trading partner and many of our customers have connections with numerous trading partners. Set-up fees related to our cloud-based supply chain management solutions are nonrefundable upfront fees that are necessary for our customers to utilize our cloud-based services. These set-up fees do not provide any standalone value to our customers. Except for our Analytics platform, we have determined the set-up fees represent a material renewal option right to our customers as they will not be incurred again upon renewal. These set-up fees and related costs are deferred and recognized ratably over two years, which is the estimated connection life between the customer and the trading partner. For our Analytics platform, we have determined the set-up fees do not represent a material customer renewal right and, as such, are deferred and recognized ratably over the estimated initial contract term, which is one year. The table below presents the activity of the portion of the deferred revenue liability relating to set-up fees: 2018 2017 Balances, January 1 $ 10,031 $ 9,995 Invoiced set-up fees 2,581 2,795 Amortized set-up fees (2,660 ) (2,674 ) Balances, March 31 $ 9,952 $ 10,116 The entire balance of set-up fees will be recognized within two years and, as such, current amounts will be recognized in the next 1-12 months and long-term amounts will be recognized in the next 13-24 months. Miscellaneous one-time fees consist of professional services and testing and certification. The deferred revenue liability for these one-time fees are for one year or less and recognized at the time service is provided. We have applied the optional exemption under ASC 606-10-50-14(a) and will not disclose information about the remaining performance obligations for contracts which have original durations of one year or less. Deferred Costs Deferred costs consist of costs to obtain customer contracts, such as commissions paid to sales personnel and to third-party partners for customer referrals, and costs to fulfill customer contracts, such as customer implementation costs. Sales commissions relating to recurring revenues are considered incremental and recoverable costs of obtaining a contract with our customer. These commissions are calculated based on estimated annual recurring revenue to be generated over the customer’s initial contract year. These costs are deferred and amortized over the expected period of benefit which we have determined to be two years. Amortization expense is included in sales and marketing expenses in the accompanying condensed consolidated statements of operations. Deferred costs were $41.6 million and $39.9 million as of March 31, 2018 and December 31, 2017, respectively. Amortization expense for deferred costs was $10.8 million and $10.7 million for the three months ended March 31, 2018 and 2017, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | |
Financial Instruments | NOTE B – Financial Instruments We invest primarily in money market funds, certificates of deposit, 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 investments. Investments with remaining maturities of more than one year from the balance sheet date are classified as long-term investments. Our short- and long-term marketable securities are 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 marketable securities are carried at fair value and unrealized gains and losses on these investments, net of taxes, are included in accumulated other comprehensive loss in the consolidated balance sheets. Realized gains or losses are included in other income (expense), net in the 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 consolidated statements of comprehensive income. Cash equivalents and short- and long-term investments consisted of the following (in thousands): March 31, 2018 Amortized Unrealized Fair Cost Gains (Losses) Value Cash equivalents: Money market funds $ 96,539 $ — $ 96,539 Certificate of deposit 7,680 0 7,680 Marketable securities: Corporate bonds 15,226 (55 ) 15,171 Commercial paper 12,459 (1 ) 12,458 U.S. treasury securities 12,381 53 12,434 $ 144,285 $ (3 ) $ 144,282 Due within one year $ 141,811 Due within two years 2,471 Total $ 144,282 December 31, 2017 Amortized Unrealized Fair Cost Gains (Losses) Value Cash equivalents: Money market funds $ 104,544 $ — $ 104,544 Certificate of deposit 7,814 — 7,814 Marketable securities: Corporate bonds 17,758 (57 ) 17,701 Commercial paper 7,456 20 7,476 U.S. treasury securities 12,381 26 12,407 $ 149,953 $ (11 ) $ 149,942 Due within one year $ 144,736 Due within two years 5,206 Total $ 149,942 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, 2018. We expect to receive the full principal and interest on all of these cash equivalents, certificate of deposit, 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. We obtain the fair values of our level 2 available-for-sale securities from a professional pricing service. • Level 3 – unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities. 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 (in thousands): March 31, 2018 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 96,539 $ — $ — $ 96,539 Certificate of deposit 7,680 — — 7,680 Marketable securities: Corporate bonds — 15,171 — 15,171 Commercial paper — 12,458 — 12,458 U.S. treasury securities — 12,434 — 12,434 Total $ 104,219 $ 40,063 $ — $ 144,282 December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 104,544 $ — $ — $ 104,544 Certificate of deposit 7,814 — — 7,814 Marketable securities: Corporate bonds — 17,700 — 17,700 Commercial paper — 7,477 — 7,477 U.S. treasury securities — 12,407 — 12,407 Total $ 112,358 $ 37,584 $ — $ 149,942 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, net | NOTE C – Goodwill and Intangible Assets, net The changes in the net carrying amount of goodwill for the three months ended March 31, 2018 are as follows (in thousands): 2018 Balances, January 1 $ 51,613 Goodwill acquired during the period — Foreign currency translation adjustments (583 ) Balances, March 31 $ 51,030 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). Intangible assets, net included the following (in thousands): March 31, 2018 Foreign Carrying Accumulated Currency Amount Amortization Translation Net Subscriber relationships $ 35,512 $ (20,828 ) $ (111 ) $ 14,573 Non-competition agreements 2,560 (2,117 ) (12 ) 431 Technology and other 2,289 (1,697 ) (19 ) 573 $ 40,361 $ (24,642 ) $ (142 ) $ 15,577 December 31, 2017 Foreign Carrying Accumulated Currency Amount Amortization Translation Net Subscriber relationships $ 34,350 $ (19,592 ) $ 614 $ 15,372 Non-competition agreements 2,499 (2,058 ) 45 486 Technology and other 2,130 (1,518 ) 59 671 $ 38,979 $ (23,168 ) $ 718 $ 16,529 Total amortization expense for intangible assets during the three months ended March 31, 2018 and 2017 was $1.1 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 (in thousands): Remainder of 2018 $ 2,908 2019 3,740 2020 3,384 2021 2,542 2022 1,472 Thereafter 1,531 $ 15,577 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE D – Commitments and Contingencies Operating Leases At March 31, 2018, our future minimum payments under operating leases were as follows (in thousands): Remainder of 2018 $ 2,884 2019 3,836 2020 3,112 2021 3,616 2022 3,270 Thereafter 6,796 $ 23,514 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
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, restricted stock awards, restricted stock units and performance stock units to employees, non-employee directors and other consultants who provide services to us. We also provide an employee stock purchase plan and 401(k) stock match. Restricted stock awards result in the issuance of new shares when granted. For other stock-based awards, new shares are issued when the award is exercised, vested or released according to the terms of the agreement. In January 2018, 1,027,620 additional shares were reserved for future issuance under our 2010 Equity Incentive Plan. At March 31, 2018, there were approximately 5.4 million shares available for grant under approved equity compensation plans. We recognize stock-based compensation expense on a straight-line basis over the vesting period, except for expense relating to retirement-eligible employees which is recognized immediately upon the employee becoming retirement-eligible. We recorded stock-based compensation expense of $3.5 million and $2.3 million for the three months ended March 31, 2018 and 2017, respectively. This expense was allocated in the condensed consolidated statements of comprehensive income as follows (in thousands): Three Months Ended March 31, 2018 2017 Cost of revenues $ 548 $ 451 Operating expenses Sales and marketing 653 517 Research and development 329 229 General and administrative 2,003 1,103 Total stock-based compensation expense $ 3,533 $ 2,300 Stock-based compensation expense by plan type was as follows (in thousands): Three Months Ended March 31, 2018 2017 Stock options $ 1,254 $ 924 Performance share units 812 169 Restricted stock units 922 990 Restricted stock awards 80 80 Employee stock purchase plan 113 137 401(k) stock match 352 — Total stock-based compensation expense $ 3,533 $ 2,300 As of March 31, 2018, there was approximately $16.6 million of unrecognized stock-based compensation expense under our equity compensation plans, which is expected to be recognized on a straight-line basis over a weighted average period of 2.9 years. Stock Options Stock options generally vest over four years and have a contractual term of seven to ten years from the date of grant. Our stock option activity was as follows: Weighted Average Options Exercise Price (#) ($/share) Outstanding at December 31, 2017 1,097,331 $ 47.60 Granted 130,371 54.68 Exercised (15,500 ) 46.13 Forfeited (28,149 ) 57.56 Outstanding at March 31, 2018 1,184,053 48.16 Of the total outstanding options at March 31, 2018, 788,513 were exercisable with a weighted average exercise price of $45.32 per share. The total outstanding options had a weighted average remaining contractual life of 3.2 years. The weighted average grant date fair value of options granted during the first three months of 2018 was $18.56. This was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Volatility 35.7 % Dividend yield 0 % Life (in years) 4.6 Risk-free interest rate 2.50 % 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). The fair value is measured as the number of performance shares expected to be earned multiplied by the grant date fair value of our shares. The number of performance shares expected to vest during the current service period is estimated and the fair value of those shares is recognized over the remaining service period less any amounts already recognized. In February 2018, our executive officers were granted PSU awards with vesting contingent on the Company’s total shareholder return as compared to indexed total shareholder return over the course of a three-year performance period (fiscal years 2018 – 2020). The grant date fair value was estimated using a Monte Carlo simulation that utilizes multiple input variables that determine the probability of satisfying the performance conditions stipulated in the award and calculates the fair market value for the performance stock units granted. Expense is recognized on a straight-line basis over the vesting period, regardless of whether the market condition is satisfied. 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, 2017 321,912 $ 55.16 Granted 112,181 57.94 Vested and common stock issued (81,427 ) 56.32 Forfeited (11,290 ) 54.52 Outstanding at March 31, 2018 341,376 55.82 The number of restricted stock units outstanding at March 31, 2018 included 5,981 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 Grant Awards (#) Date Fair Value ($/share) Outstanding at December 31, 2017 1,368 $ 58.29 Restricted common stock issued — — Restrictions lapsed (1,368 ) 58.29 Forfeited — — Outstanding at March 31, 2018 — — 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 periods that began on January 1, 2018 and January 1, 2017, we withheld approximately $0.5 million and $0.6 million, respectively, from employees participating in the 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 26.5 % Dividend yield 0 % Life (in years) 0.5 Risk-free interest rate 1.50 % 401(k) Stock Match We sponsor a 401(k) retirement savings plan for our U.S. employees where employees can contribute up to 100% of their compensation, subject to the limits established by law. In 2018, we increased our match to 50% of the employee’s elective deferrals, up to the first 6% of the employee’s pre-tax compensation for each pay period. A portion of our match is in company stock, which is purchased from the open market by our plan provider and immediately deposited into the employee’s 401(k) account. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
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 credits. Additionally, excess tax benefits generated upon settlement or exercise of stock awards are 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 March 31, 2018 we do not have any unrecognized tax benefits nor any accrued interest or tax penalties. Tax Act The Tax Act, which was enacted on December 22, 2017, includes broad and complex changes to the U.S tax code. The Tax Act reduces the corporate federal income tax rate to 21.0% effective January 1, 2018 and establishes a mandatory tax on previously untaxed foreign earnings and profits (“E&P”). The Tax Act expands the limitations for executive compensation under Section 162(m) and includes transition rules for previously awarded compensation. In January and April of 2018, the Internal Revenue Service (“IRS”) issued guidance which provides additional clarification on certain aspects of the transition tax calculation. We have applied this guidance for the first quarter of 2018 which did not result in a material adjustment to our previously calculated discrete income tax expense relating to the Tax Act. We anticipate additional IRS guidance relative to the impacts of the Tax Act will be forthcoming throughout 2018. We are continuing to evaluate the impact of the Tax Act on the taxation of previously untaxed foreign E&P and the deferred tax liability for withholding taxes on dividends. We are also continuing to evaluate the impact the expanded Section 162(m) limitations and related transition rules have on our deferred tax assets related to stock compensation. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 2017 Numerator Net income $ 3,254 $ 2,985 Denominator Weighted average common shares outstanding, basic 17,093 17,154 Options to purchase common stock 152 199 Restricted stock units 62 40 Weighted average common shares outstanding, diluted 17,307 17,393 Net income per share Basic $ 0.19 $ 0.17 Diluted $ 0.19 $ 0.17 Antidilutive shares (in thousands) 275 269 |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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 Effective January 1, 2018, we adopted the requirements of Accounting Standards Update ("ASU") No. 2014-09 (“ASU 2014-09”), Revenue from Contracts with Customers (Topic 606) |
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. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09 which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance replaced most existing revenue recognition guidance in GAAP. Topic 606 also includes Subtopic 340-40, Other Assets and Deferred Costs – Contracts with Customers We adopted the new standard effective January 1, 2018, on a retrospective basis. The new standard did not impact our recognition of the recurring revenue received from customers for our cloud-based supply chain solutions; however, the adoption of the new standard impacted our accounting for certain upfront set-up fees, the periods over which the related revenues are recognized, and the timing of revenue recognition for these set-up fees. The adoption of the new standard also impacted our accounting for certain costs to obtain our contracts, specifically related to the periods over which commissions are recognized as well as the timing of cost recognition. Selected condensed consolidated balance sheet line items, which reflect the adoption of ASU 2014-09 are as follows (in thousands): December 31, 2017 As previously reported Adjustments As adjusted ASSETS Deferred costs $ 25,091 $ 4,875 $ 29,966 Deferred costs, non-current 6,770 3,197 9,967 Deferred income tax asset 17,551 (3,854 ) 13,697 LIABILITIES Accrued compensation 15,886 (658 ) 15,228 Deferred revenue 16,407 1,456 17,863 Deferred revenue, non-current 10,602 (7,871 ) 2,731 STOCKHOLDERS’ EQUITY Accumulated deficit (19,902 ) 11,291 (8,611 ) Selected unaudited condensed consolidated statement of operations line items, which reflect the adoption of ASU 2014-09 are as follows (in thousands): For the three months ended March 31, 2017 As previously reported Adjustments As adjusted Revenues 51,932 (53 ) 51,879 Operating expenses Sales and marketing 17,079 (56 ) 17,023 Income from operations 3,376 3 3,379 Income tax expense 536 (11 ) 525 Net income $ 2,971 $ 14 $ 2,985 Net income per share Basic $ 0.17 $ — $ 0.17 Diluted $ 0.17 $ — $ 0.17 Selected unaudited condensed consolidated statement of cash flows line items, which reflect the adoption of ASU 2014-09 are as follows (in thousands): For the three months ended March 31, 2017 As previously reported Adjustments As adjusted Cash flows from operating activities Net income $ 2,971 $ 14 $ 2,985 Reconciliation of net income to net cash provided by operating activities Deferred income taxes 310 (11 ) 299 Changes in assets and liabilities Deferred costs (1,649 ) 306 (1,343 ) Accrued compensation (1,508 ) (362 ) (1,870 ) Deferred revenue 4,988 53 5,041 Net cash provided by operating activities 10,399 — 10,399 In March 2018, we adopted FASB ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 “Income Taxes” |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) |
Significant Accounting Policies | Significant Accounting Policies Except for the accounting policies for revenue recognition and deferred commissions that were updated as a result of adopting ASU 2014-09, there were no material changes in our significant accounting policies during the three months ended March 31, 2018. See Note A to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the SEC on February 26, 2018, for additional information regarding our significant accounting policies. |
Revenue Recognition | Revenue Recognition We derive our revenues primarily from the following revenue streams: Three Months Ended March 31, 2018 2017 Recurring revenues: Fulfillment $ 45,364 $ 38,543 Analytics 8,259 8,235 Other 1,237 1,206 Recurring Revenues 54,860 47,984 One-time revenues 4,232 3,895 $ 59,092 $ 51,879 Revenues are recognized when our services are made available to our customers, in an amount that reflects the consideration we are contractually and legally entitled to in exchange for those services. We determine revenue recognition through the following steps: - Identification of the contract, or contracts, with a customer - Identification of the performance obligations in the contract - Determination of the transaction price - Allocation of the transaction price to the performance obligations in the contract - Recognition of revenue when, or as, we satisfy a performance obligation Recurring Revenues Recurring revenues consists of recurring subscriptions from customers that utilize our Fulfillment, Analytics, and Other cloud-based supply chain management solutions. Revenue for these solutions is generally recognized on a ratable basis over the contract term beginning on the date that our service is made available to the customer. Our contracts with our recurring revenue customers are recurring in nature, ranging from monthly to annual, and generally allow the customer to cancel the contract for any reason with 30 to 90 days’ notice. Timing of billings varies by customer and by contract type and are either in advance or within 30 days of the service being performed. The deferred revenue liability for recurring revenue contracts are for one year or less and recognized on a ratable basis over the contract term. We have applied the optional exemption under ASC 606-10-50-14(a) and will not disclose information about the remaining performance obligations for contracts which have original durations of one year or less. One-time Revenues One-time revenues consist of set-up fees from customers and miscellaneous one-time fees. Set-up fees are specific for each connection a customer has with a trading partner and many of our customers have connections with numerous trading partners. Set-up fees related to our cloud-based supply chain management solutions are nonrefundable upfront fees that are necessary for our customers to utilize our cloud-based services. These set-up fees do not provide any standalone value to our customers. Except for our Analytics platform, we have determined the set-up fees represent a material renewal option right to our customers as they will not be incurred again upon renewal. These set-up fees and related costs are deferred and recognized ratably over two years, which is the estimated connection life between the customer and the trading partner. For our Analytics platform, we have determined the set-up fees do not represent a material customer renewal right and, as such, are deferred and recognized ratably over the estimated initial contract term, which is one year. The table below presents the activity of the portion of the deferred revenue liability relating to set-up fees: 2018 2017 Balances, January 1 $ 10,031 $ 9,995 Invoiced set-up fees 2,581 2,795 Amortized set-up fees (2,660 ) (2,674 ) Balances, March 31 $ 9,952 $ 10,116 The entire balance of set-up fees will be recognized within two years and, as such, current amounts will be recognized in the next 1-12 months and long-term amounts will be recognized in the next 13-24 months. Miscellaneous one-time fees consist of professional services and testing and certification. The deferred revenue liability for these one-time fees are for one year or less and recognized at the time service is provided. We have applied the optional exemption under ASC 606-10-50-14(a) and will not disclose information about the remaining performance obligations for contracts which have original durations of one year or less. |
Deferred Commissions | Deferred Costs Deferred costs consist of costs to obtain customer contracts, such as commissions paid to sales personnel and to third-party partners for customer referrals, and costs to fulfill customer contracts, such as customer implementation costs. Sales commissions relating to recurring revenues are considered incremental and recoverable costs of obtaining a contract with our customer. These commissions are calculated based on estimated annual recurring revenue to be generated over the customer’s initial contract year. These costs are deferred and amortized over the expected period of benefit which we have determined to be two years. Amortization expense is included in sales and marketing expenses in the accompanying condensed consolidated statements of operations. Deferred costs were $41.6 million and $39.9 million as of March 31, 2018 and December 31, 2017, respectively. Amortization expense for deferred costs was $10.8 million and $10.7 million for the three months ended March 31, 2018 and 2017, respectively. There was no impairment loss in relation to the costs capitalized for the periods presented. |
General (Tables)
General (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Summary of Revenues Primarily from Revenues Streams | We derive our revenues primarily from the following revenue streams: Three Months Ended March 31, 2018 2017 Recurring revenues: Fulfillment $ 45,364 $ 38,543 Analytics 8,259 8,235 Other 1,237 1,206 Recurring Revenues 54,860 47,984 One-time revenues 4,232 3,895 $ 59,092 $ 51,879 |
Summary of the Portion of the Deferred Revenue Liability | The table below presents the activity of the portion of the deferred revenue liability relating to set-up fees: 2018 2017 Balances, January 1 $ 10,031 $ 9,995 Invoiced set-up fees 2,581 2,795 Amortized set-up fees (2,660 ) (2,674 ) Balances, March 31 $ 9,952 $ 10,116 |
ASU 2014-09 [Member] | |
Adoption of Accounting Standard Changes on Financial Statements | Selected condensed consolidated balance sheet line items, which reflect the adoption of ASU 2014-09 are as follows (in thousands): December 31, 2017 As previously reported Adjustments As adjusted ASSETS Deferred costs $ 25,091 $ 4,875 $ 29,966 Deferred costs, non-current 6,770 3,197 9,967 Deferred income tax asset 17,551 (3,854 ) 13,697 LIABILITIES Accrued compensation 15,886 (658 ) 15,228 Deferred revenue 16,407 1,456 17,863 Deferred revenue, non-current 10,602 (7,871 ) 2,731 STOCKHOLDERS’ EQUITY Accumulated deficit (19,902 ) 11,291 (8,611 ) Selected unaudited condensed consolidated statement of operations line items, which reflect the adoption of ASU 2014-09 are as follows (in thousands): For the three months ended March 31, 2017 As previously reported Adjustments As adjusted Revenues 51,932 (53 ) 51,879 Operating expenses Sales and marketing 17,079 (56 ) 17,023 Income from operations 3,376 3 3,379 Income tax expense 536 (11 ) 525 Net income $ 2,971 $ 14 $ 2,985 Net income per share Basic $ 0.17 $ — $ 0.17 Diluted $ 0.17 $ — $ 0.17 Selected unaudited condensed consolidated statement of cash flows line items, which reflect the adoption of ASU 2014-09 are as follows (in thousands): For the three months ended March 31, 2017 As previously reported Adjustments As adjusted Cash flows from operating activities Net income $ 2,971 $ 14 $ 2,985 Reconciliation of net income to net cash provided by operating activities Deferred income taxes 310 (11 ) 299 Changes in assets and liabilities Deferred costs (1,649 ) 306 (1,343 ) Accrued compensation (1,508 ) (362 ) (1,870 ) Deferred revenue 4,988 53 5,041 Net cash provided by operating activities 10,399 — 10,399 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Financial Instruments Owned At Fair Value [Abstract] | |
Summary of Cash Equivalents and Short and Long-term Investments | Cash equivalents and short- and long-term investments consisted of the following (in thousands): March 31, 2018 Amortized Unrealized Fair Cost Gains (Losses) Value Cash equivalents: Money market funds $ 96,539 $ — $ 96,539 Certificate of deposit 7,680 0 7,680 Marketable securities: Corporate bonds 15,226 (55 ) 15,171 Commercial paper 12,459 (1 ) 12,458 U.S. treasury securities 12,381 53 12,434 $ 144,285 $ (3 ) $ 144,282 Due within one year $ 141,811 Due within two years 2,471 Total $ 144,282 December 31, 2017 Amortized Unrealized Fair Cost Gains (Losses) Value Cash equivalents: Money market funds $ 104,544 $ — $ 104,544 Certificate of deposit 7,814 — 7,814 Marketable securities: Corporate bonds 17,758 (57 ) 17,701 Commercial paper 7,456 20 7,476 U.S. treasury securities 12,381 26 12,407 $ 149,953 $ (11 ) $ 149,942 Due within one year $ 144,736 Due within two years 5,206 Total $ 149,942 |
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 (in thousands): March 31, 2018 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 96,539 $ — $ — $ 96,539 Certificate of deposit 7,680 — — 7,680 Marketable securities: Corporate bonds — 15,171 — 15,171 Commercial paper — 12,458 — 12,458 U.S. treasury securities — 12,434 — 12,434 Total $ 104,219 $ 40,063 $ — $ 144,282 December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 104,544 $ — $ — $ 104,544 Certificate of deposit 7,814 — — 7,814 Marketable securities: Corporate bonds — 17,700 — 17,700 Commercial paper — 7,477 — 7,477 U.S. treasury securities — 12,407 — 12,407 Total $ 112,358 $ 37,584 $ — $ 149,942 |
Goodwill and Intangible Asset17
Goodwill and Intangible Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Net Carrying Amount of Goodwill | The changes in the net carrying amount of goodwill for the three months ended March 31, 2018 are as follows (in thousands): 2018 Balances, January 1 $ 51,613 Goodwill acquired during the period — Foreign currency translation adjustments (583 ) Balances, March 31 $ 51,030 |
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). Intangible assets, net included the following (in thousands): March 31, 2018 Foreign Carrying Accumulated Currency Amount Amortization Translation Net Subscriber relationships $ 35,512 $ (20,828 ) $ (111 ) $ 14,573 Non-competition agreements 2,560 (2,117 ) (12 ) 431 Technology and other 2,289 (1,697 ) (19 ) 573 $ 40,361 $ (24,642 ) $ (142 ) $ 15,577 December 31, 2017 Foreign Carrying Accumulated Currency Amount Amortization Translation Net Subscriber relationships $ 34,350 $ (19,592 ) $ 614 $ 15,372 Non-competition agreements 2,499 (2,058 ) 45 486 Technology and other 2,130 (1,518 ) 59 671 $ 38,979 $ (23,168 ) $ 718 $ 16,529 |
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 (in thousands): Remainder of 2018 $ 2,908 2019 3,740 2020 3,384 2021 2,542 2022 1,472 Thereafter 1,531 $ 15,577 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future Minimum Payments Under Operating Leases | At March 31, 2018, our future minimum payments under operating leases were as follows (in thousands): Remainder of 2018 $ 2,884 2019 3,836 2020 3,112 2021 3,616 2022 3,270 Thereafter 6,796 $ 23,514 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Stock-Based Compensation Expense | This expense was allocated in the condensed consolidated statements of comprehensive income as follows (in thousands): Three Months Ended March 31, 2018 2017 Cost of revenues $ 548 $ 451 Operating expenses Sales and marketing 653 517 Research and development 329 229 General and administrative 2,003 1,103 Total stock-based compensation expense $ 3,533 $ 2,300 Stock-based compensation expense by plan type was as follows (in thousands): Three Months Ended March 31, 2018 2017 Stock options $ 1,254 $ 924 Performance share units 812 169 Restricted stock units 922 990 Restricted stock awards 80 80 Employee stock purchase plan 113 137 401(k) stock match 352 — Total stock-based compensation expense $ 3,533 $ 2,300 |
Stock Option Activity | 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, 2017 1,097,331 $ 47.60 Granted 130,371 54.68 Exercised (15,500 ) 46.13 Forfeited (28,149 ) 57.56 Outstanding at March 31, 2018 1,184,053 48.16 |
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 2018 was $18.56. This was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions: Volatility 35.7 % Dividend yield 0 % Life (in years) 4.6 Risk-free interest rate 2.50 % |
Fair Value Estimation of Common Stock Using Black-Scholes Option Pricing Model, Assumptions | The fair value was estimated based on the market price of our common stock at the beginning of the offering period using the Black-Scholes option pricing model with the following assumptions: Volatility 26.5 % Dividend yield 0 % Life (in years) 0.5 Risk-free interest rate 1.50 % |
Performance Share Units and Restricted Stock Units [Member] | |
Performance Share Units and Restricted Stock Units and Restricted Stock Awards | Activity for our performance share units and restricted stock units was as follows: Performance Share and Weighted Average Restricted Stock Units Grant Date Fair Value (#) ($/share) Outstanding at December 31, 2017 321,912 $ 55.16 Granted 112,181 57.94 Vested and common stock issued (81,427 ) 56.32 Forfeited (11,290 ) 54.52 Outstanding at March 31, 2018 341,376 55.82 |
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 Grant Awards (#) Date Fair Value ($/share) Outstanding at December 31, 2017 1,368 $ 58.29 Restricted common stock issued — — Restrictions lapsed (1,368 ) 58.29 Forfeited — — Outstanding at March 31, 2018 — — |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Components of Computation of Basic and Diluted Net Income Per Share | The following table presents the components of the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share amounts): Three Months Ended March 31, 2018 2017 Numerator Net income $ 3,254 $ 2,985 Denominator Weighted average common shares outstanding, basic 17,093 17,154 Options to purchase common stock 152 199 Restricted stock units 62 40 Weighted average common shares outstanding, diluted 17,307 17,393 Net income per share Basic $ 0.19 $ 0.17 Diluted $ 0.19 $ 0.17 Antidilutive shares (in thousands) 275 269 |
General - Condensed Consolidate
General - Condensed Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Deferred costs | $ 31,318 | $ 29,966 |
Deferred costs, non-current | 10,239 | 9,967 |
Deferred income tax asset | 13,697 | |
LIABILITIES | ||
Accrued compensation | 11,617 | 15,228 |
Deferred revenue | 21,583 | 17,863 |
Deferred revenue, non-current | 2,691 | 2,731 |
STOCKHOLDERS’ EQUITY | ||
Accumulated deficit | $ (5,357) | (8,611) |
ASU 2014-09 [Member] | As Previously Reported [Member] | ||
ASSETS | ||
Deferred costs | 25,091 | |
Deferred costs, non-current | 6,770 | |
Deferred income tax asset | 17,551 | |
LIABILITIES | ||
Accrued compensation | 15,886 | |
Deferred revenue | 16,407 | |
Deferred revenue, non-current | 10,602 | |
STOCKHOLDERS’ EQUITY | ||
Accumulated deficit | (19,902) | |
ASU 2014-09 [Member] | Adjustments [Member] | ||
ASSETS | ||
Deferred costs | 4,875 | |
Deferred costs, non-current | 3,197 | |
Deferred income tax asset | (3,854) | |
LIABILITIES | ||
Accrued compensation | (658) | |
Deferred revenue | 1,456 | |
Deferred revenue, non-current | (7,871) | |
STOCKHOLDERS’ EQUITY | ||
Accumulated deficit | $ 11,291 |
General - Unaudited Condensed C
General - Unaudited Condensed Consolidated Statement of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues | $ 59,092 | $ 51,879 |
Operating expenses | ||
Sales and marketing | 18,647 | 17,023 |
Income from operations | 4,300 | 3,379 |
Income tax expense | 1,306 | 525 |
Net income | $ 3,254 | $ 2,985 |
Net income per share | ||
Basic | $ 0.19 | $ 0.17 |
Diluted | $ 0.19 | $ 0.17 |
ASU 2014-09 [Member] | As Previously Reported [Member] | ||
Revenues | $ 51,932 | |
Operating expenses | ||
Sales and marketing | 17,079 | |
Income from operations | 3,376 | |
Income tax expense | 536 | |
Net income | $ 2,971 | |
Net income per share | ||
Basic | $ 0.17 | |
Diluted | $ 0.17 | |
ASU 2014-09 [Member] | Adjustments [Member] | ||
Revenues | $ (53) | |
Operating expenses | ||
Sales and marketing | (56) | |
Income from operations | 3 | |
Income tax expense | (11) | |
Net income | $ 14 |
General - Unaudited Condensed23
General - Unaudited Condensed Consolidated Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities | ||
Net income | $ 3,254 | $ 2,985 |
Reconciliation of net income to net cash provided by operating activities | ||
Deferred income taxes | 1,020 | 299 |
Changes in assets and liabilities | ||
Deferred costs | (1,628) | (1,343) |
Accrued compensation | (3,939) | (1,870) |
Deferred revenue | 3,680 | 5,041 |
Net cash provided by operating activities | $ 9,349 | 10,399 |
ASU 2014-09 [Member] | As Previously Reported [Member] | ||
Cash flows from operating activities | ||
Net income | 2,971 | |
Reconciliation of net income to net cash provided by operating activities | ||
Deferred income taxes | 310 | |
Changes in assets and liabilities | ||
Deferred costs | (1,649) | |
Accrued compensation | (1,508) | |
Deferred revenue | 4,988 | |
Net cash provided by operating activities | 10,399 | |
ASU 2014-09 [Member] | Adjustments [Member] | ||
Cash flows from operating activities | ||
Net income | 14 | |
Reconciliation of net income to net cash provided by operating activities | ||
Deferred income taxes | (11) | |
Changes in assets and liabilities | ||
Deferred costs | 306 | |
Accrued compensation | (362) | |
Deferred revenue | $ 53 |
General - Summary of Revenues P
General - Summary of Revenues Primarily from Revenues Streams (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue Recognition [Line Items] | ||
Revenues | $ 59,092 | $ 51,879 |
Fulfillment [Member] | ||
Revenue Recognition [Line Items] | ||
Revenues | 45,364 | 38,543 |
One-time Revenues [Member] | ||
Revenue Recognition [Line Items] | ||
Revenues | 4,232 | 3,895 |
Analytics [Member] | ||
Revenue Recognition [Line Items] | ||
Revenues | 8,259 | 8,235 |
Other [Member] | ||
Revenue Recognition [Line Items] | ||
Revenues | 1,237 | 1,206 |
Recurring Revenues [Member] | ||
Revenue Recognition [Line Items] | ||
Revenues | $ 54,860 | $ 47,984 |
General - Additional Informatio
General - Additional Information (Detail) - USD ($) | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Schedule Of Accounting Policies [Line Items] | |||
Timing of billings discription | in advance | ||
Timing of billings | 30 days | ||
Estimated connection life between customer and trading partner | 2 years | ||
Performance obligation estimated initial contract and analytics set up fees recognized period | 1 year | ||
Set up fees recognized period | 2 years | ||
Deferred commission expected amortization period | 2 years | ||
Deferred costs | $ 41,600,000 | $ 39,900,000 | |
Amortization expense for deferred costs | 10,800,000 | $ 10,700,000 | |
Impairment loss in relation to costs capitalized | $ 0 | $ 0 | |
Minimum [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Customer contract cancellation period | 30 days | ||
Current amount recognition period of set up fees | 1 month | ||
Long term amount recognition period of set up fees | 13 months | ||
Maximum [Member] | |||
Schedule Of Accounting Policies [Line Items] | |||
Customer contract cancellation period | 90 days | ||
Deferred revenue recognition period | 1 year | ||
Remaining performance obligations for contracts which have original durations | 1 year | ||
Current amount recognition period of set up fees | 12 months | ||
Long term amount recognition period of set up fees | 24 months |
General - Summary of the Portio
General - Summary of the Portion of the Deferred Revenue Liability (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Deferred Revenue [Abstract] | ||
Balances, January 1 | $ 10,031 | $ 9,995 |
Invoiced set-up fees | 2,581 | 2,795 |
Amortized set-up fees | (2,660) | (2,674) |
Balances, March 31 | $ 9,952 | $ 10,116 |
Financial Instruments - Summary
Financial Instruments - Summary of Cash Equivalents and Short and Long-term Investments (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financial Instruments [Member] | ||
Schedule of Financial Instruments [Line Items] | ||
Due within one year | $ 141,811 | $ 144,736 |
Amortized Cost | 144,285 | 149,953 |
Due within two years | 2,471 | 5,206 |
Unrealized Gains (Losses) | (3) | (11) |
Fair Value | 144,282 | 149,942 |
Money Market Funds [Member] | ||
Schedule of Financial Instruments [Line Items] | ||
Amortized Cost | 96,539 | 104,544 |
Fair Value | 96,539 | 104,544 |
Certificate of Deposit [Member] | ||
Schedule of Financial Instruments [Line Items] | ||
Amortized Cost | 7,680 | 7,814 |
Fair Value | 7,680 | 7,814 |
Corporate Bonds [Member] | ||
Schedule of Financial Instruments [Line Items] | ||
Amortized Cost | 15,226 | 17,758 |
Unrealized Gains (Losses) | (55) | (57) |
Fair Value | 15,171 | 17,701 |
Commercial Paper [Member] | ||
Schedule of Financial Instruments [Line Items] | ||
Amortized Cost | 12,459 | 7,456 |
Unrealized Gains (Losses) | (1) | 20 |
Fair Value | 12,458 | 7,476 |
U.S. Treasury Securities [Member] | ||
Schedule of Financial Instruments [Line Items] | ||
Amortized Cost | 12,381 | 12,381 |
Unrealized Gains (Losses) | 53 | 26 |
Fair Value | $ 12,434 | $ 12,407 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Detail) | Mar. 31, 2018USD ($) |
Money Market Funds [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Unrealized Losses | $ 0 |
Financial Instruments - Summa29
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, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | $ 144,282 | $ 149,942 |
Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 96,539 | 104,544 |
Certificate of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 7,680 | 7,814 |
Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 15,171 | 17,700 |
Commercial Paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 12,458 | 7,477 |
U.S. Treasury Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 12,434 | 12,407 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 104,219 | 112,358 |
Level 1 [Member] | Money Market Funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 96,539 | 104,544 |
Level 1 [Member] | Certificate of Deposit [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 7,680 | 7,814 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 40,063 | 37,584 |
Level 2 [Member] | Corporate Bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 15,171 | 17,700 |
Level 2 [Member] | Commercial Paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | 12,458 | 7,477 |
Level 2 [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Assets fair value | $ 12,434 | $ 12,407 |
Goodwill and Intangible Asset30
Goodwill and Intangible Assets, net - Schedule of Changes in Net Carrying Amount of Goodwill (Detail) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Balances, January 1 | $ 51,613 |
Foreign currency translation adjustments | (583) |
Balances, March 31 | $ 51,030 |
Goodwill and Intangible Asset31
Goodwill and Intangible Assets, net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense | $ 1,125 | $ 1,215 |
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 Asset32
Goodwill and Intangible Assets, net - Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | $ 40,361 | $ 38,979 |
Accumulated Amortization | (24,642) | (23,168) |
Foreign Currency Translation | (142) | 718 |
Net | 15,577 | 16,529 |
Subscriber Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 35,512 | 34,350 |
Accumulated Amortization | (20,828) | (19,592) |
Foreign Currency Translation | (111) | 614 |
Net | 14,573 | 15,372 |
Non-competition Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 2,560 | 2,499 |
Accumulated Amortization | (2,117) | (2,058) |
Foreign Currency Translation | (12) | 45 |
Net | 431 | 486 |
Technology and Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Carrying Amount | 2,289 | 2,130 |
Accumulated Amortization | (1,697) | (1,518) |
Foreign Currency Translation | (19) | 59 |
Net | $ 573 | $ 671 |
Goodwill and Intangible Asset33
Goodwill and Intangible Assets, net - Estimated Annual Amortization Expense Related to Intangible Assets Subject to Amortization (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2018 | $ 2,908 | |
2,019 | 3,740 | |
2,020 | 3,384 | |
2,021 | 2,542 | |
2,022 | 1,472 | |
Thereafter | 1,531 | |
Net | $ 15,577 | $ 16,529 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Payments Under Operating Leases (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Remainder of 2018 | $ 2,884 |
2,019 | 3,836 |
2,020 | 3,112 |
2,021 | 3,616 |
2,022 | 3,270 |
Thereafter | 6,796 |
Operating leases, total | $ 23,514 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Feb. 28, 2018 | Feb. 28, 2017 | Mar. 31, 2018USD ($)Offering$ / sharesshares | Mar. 31, 2017USD ($) | Jan. 31, 2018shares | Dec. 31, 2017USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for grant | shares | 5,400,000 | |||||
Stock-based compensation expense | $ 3,533 | $ 2,300 | ||||
Unrecognized stock-based compensation expense | $ 16,600 | |||||
Unrecognized stock-based compensation, expected to be recognized, weighted average period | 2 years 10 months 24 days | |||||
Employee Stock Purchase Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional shares reserved for issuance under the plan | shares | 1,000,000 | |||||
Purchase price as a percentage of fair market value | 85.00% | |||||
Number of offerings per year | Offering | 2 | |||||
Amount withheld from employees | $ 500 | $ 600 | ||||
Equity Incentive Plan [Member] | 2010 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional shares reserved for issuance under the plan | shares | 1,027,620 | |||||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 1,254 | 924 | ||||
Vesting period | 4 years | |||||
Stock options exercisable | shares | 788,513 | |||||
Weighted average exercise price | $ / shares | $ 45.32 | |||||
Weighted average remaining contractual life | 3 years 2 months 12 days | |||||
Weighted average fair value per share of options granted | $ / shares | $ 18.56 | |||||
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] | ||||||
Vesting period | 3 years | 3 years | ||||
Restricted Stock Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 922 | 990 | ||||
Vesting period | 4 years | |||||
Number of RSU's vested and not issued during the period | shares | 5,981 | |||||
Restricted Stock Award [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 80 | $ 80 | ||||
Restricted stock awards units vest over, period | 1 year | |||||
401(k) Stock Match [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 352 | |||||
Maximum allowable contribution by employee percentage | 100.00% | |||||
Defined benefit plan employer matching contribution percent | 50.00% | |||||
Maximum annual contribution per employee, percent | 6.00% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 3,533 | $ 2,300 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 1,254 | 924 |
Performance Share Unit [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 812 | 169 |
Restricted Stock Units [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 922 | 990 |
Restricted Stock Award [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 80 | 80 |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 113 | 137 |
401(k) Stock Match [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 352 | |
Cost of Revenues [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 548 | 451 |
Sales and Marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 653 | 517 |
Research and Development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | 329 | 229 |
General and Administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Stock-based compensation expense | $ 2,003 | $ 1,103 |
Stock-Based Compensation - St37
Stock-Based Compensation - Stock Option Activity (Detail) | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Options Outstanding, Beginning balance | shares | 1,097,331 |
Options, Granted | shares | 130,371 |
Options, Exercised | shares | (15,500) |
Options, Forfeited | shares | (28,149) |
Options Outstanding, Ending balance | shares | 1,184,053 |
Weighted Average Exercise Price, Outstanding, Beginning Balance | $ / shares | $ 47.60 |
Weighted Average Exercise Price, Granted | $ / shares | 54.68 |
Weighted Average Exercise Price, Exercised | $ / shares | 46.13 |
Weighted Average Exercise Price, Forfeited | $ / shares | 57.56 |
Weighted Average Exercise Price, Outstanding, Ending Balance | $ / shares | $ 48.16 |
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, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 35.70% |
Dividend yield | 0.00% |
Life (in years) | 4 years 7 months 6 days |
Risk-free interest rate | 2.50% |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Share Units and Restricted Stock Units (Detail) - Performance Share Units and Restricted Stock Units [Member] | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock awards, Outstanding, Beginning Balance | shares | 321,912 |
Granted, stock units | shares | 112,181 |
Vested, stock units | shares | (81,427) |
Forfeited, stock units | shares | (11,290) |
Stock awards, Outstanding, Ending Balance | shares | 341,376 |
Weighted average grant date fair value, Outstanding, Beginning Balance | $ / shares | $ 55.16 |
Granted, Weighted Average Grant Date Fair Value | $ / shares | 57.94 |
Vested, Weighted Average Grant Date Fair Value | $ / shares | 56.32 |
Forfeited, Weighted Average Grant Date Fair Value | $ / shares | 54.52 |
Weighted average grant date fair value, Outstanding, Ending Balance | $ / shares | $ 55.82 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Awards (Detail) - Restricted Stock Award [Member] | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock awards, Outstanding, Beginning Balance | shares | 1,368 |
Restrictions lapsed, stock awards | shares | (1,368) |
Forfeited, stock awards | shares | 0 |
Weighted average grant date fair value, Outstanding, Beginning Balance | $ / shares | $ 58.29 |
Restrictions lapsed, Weighted Average Grant Date Fair Value | $ / shares | 58.29 |
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, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Volatility | 26.50% |
Dividend yield | 0.00% |
Life (in years) | 6 months |
Risk-free interest rate | 1.50% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 0 |
Accrued interest or tax penalties | $ 0 |
Corporate federal income tax rate | 21.00% |
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, 2018 | Mar. 31, 2017 | |
Numerator | ||
Net income | $ 3,254 | $ 2,985 |
Denominator | ||
Weighted average common shares outstanding, basic | 17,093 | 17,154 |
Options to purchase common stock | 152 | 199 |
Restricted stock units | 62 | 40 |
Weighted average common shares outstanding, diluted | 17,307 | 17,393 |
Net income per share | ||
Basic | $ 0.19 | $ 0.17 |
Diluted | $ 0.19 | $ 0.17 |
Antidilutive shares (in thousands) | 275 | 269 |