Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 23, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HSTM | ||
Entity Registrant Name | HEALTHSTREAM INC | ||
Entity Central Index Key | 1,095,565 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 31,651,860 | ||
Entity Public Float | $ 768.8 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 82,010 | $ 81,995 |
Marketable securities | 66,976 | 38,973 |
Accounts receivable, net of allowance for doubtful accounts of $303 and $331 at December 31, 2015 and 2014, respectively | 36,348 | 33,167 |
Accounts receivable - unbilled | 1,998 | 1,678 |
Prepaid royalties, net of amortization | 14,036 | 13,030 |
Other prepaid expenses and other current assets | 8,169 | 5,768 |
Total current assets | 209,537 | 174,611 |
Property and equipment, net | 12,471 | 9,442 |
Capitalized software development, net of accumulated amortization of $24,130 and $18,114 at December 31, 2015 and 2014, respectively | 13,955 | 12,706 |
Goodwill | 83,073 | 41,914 |
Intangible assets, net of accumulated amortization of $8,685 and $13,834 at December 31, 2015 and 2014, respectively | 55,966 | 14,795 |
Non-marketable equity investments | 3,640 | 1,757 |
Other assets | 927 | 2,037 |
Total assets | 379,569 | 257,262 |
Current liabilities: | ||
Accounts payable | 4,616 | 4,753 |
Accrued royalties | 9,053 | 9,255 |
Accrued liabilities | 7,003 | 7,224 |
Accrued compensation and related expenses | 3,308 | 2,311 |
Deferred revenue | 65,098 | 53,716 |
Total current liabilities | 89,078 | 77,259 |
Deferred tax liabilities | 4,763 | 5,838 |
Deferred revenue, noncurrent | 4,350 | 3,657 |
Other long term liabilities | $ 1,058 | $ 2,649 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Common stock, no par value, 75,000 shares authorized; 31,647 and 27,677 shares issued and outstanding at December 31, 2015 and 2014, respectively | $ 278,799 | $ 174,926 |
Retained earnings (accumulated deficit) | 1,591 | (7,030) |
Accumulated other comprehensive loss | (70) | (37) |
Total shareholders' equity | 280,320 | 167,859 |
Total liabilities and shareholders' equity | $ 379,569 | $ 257,262 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts, net | $ 303 | $ 331 |
Accumulated amortization on capitalized software development | 24,130 | 18,114 |
Accumulated amortization on intangible assets | $ 8,685 | $ 13,834 |
Common stock, no par value | ||
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 31,647,000 | 27,677,000 |
Common stock, shares outstanding | 31,647,000 | 27,677,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Revenues, net | $ 209,002 | $ 170,690 | $ 132,274 |
Operating costs and expenses: | |||
Cost of revenues (excluding depreciation and amortization) | 89,386 | 74,145 | 55,605 |
Product development | 24,214 | 16,463 | 11,757 |
Sales and marketing | 35,589 | 29,867 | 24,052 |
Other general and administrative expenses | 29,259 | 22,909 | 18,342 |
Depreciation and amortization | 16,997 | 10,931 | 7,852 |
Total operating costs and expenses | 195,445 | 154,315 | 117,608 |
Operating income | 13,557 | 16,375 | 14,666 |
Other income, net | 162 | 146 | 176 |
Income before income tax provision | 13,719 | 16,521 | 14,842 |
Income tax provision | 5,098 | 6,127 | 6,424 |
Net income | $ 8,621 | $ 10,394 | $ 8,418 |
Net income per share: | |||
Basic | $ 0.29 | $ 0.38 | $ 0.31 |
Diluted | $ 0.28 | $ 0.37 | $ 0.30 |
Weighted average shares of common stock outstanding: | |||
Basic | 30,057 | 27,570 | 26,853 |
Diluted | 30,436 | 28,023 | 27,663 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 8,621 | $ 10,394 | $ 8,418 |
Other comprehensive income, net of taxes: | |||
Unrealized loss on marketable securities | (33) | (6) | (49) |
Total other comprehensive loss | (33) | (6) | (49) |
Comprehensive income | $ 8,588 | $ 10,388 | $ 8,369 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance at Dec. 31, 2012 | $ 132,196 | $ 158,020 | $ (25,842) | $ 18 |
Beginning balance, shares at Dec. 31, 2012 | 26,233 | |||
Net income | 8,418 | 8,418 | ||
Comprehensive loss | (49) | (49) | ||
Issuance of common stock in acquisition | 534 | $ 534 | ||
Issuance of common stock in acquisition, shares | 15 | |||
Stock based compensation | 1,458 | $ 1,458 | ||
Tax benefits from equity awards | 3,722 | 3,722 | ||
Common stock issued under stock plans, net of shares withheld for employee taxes | 3,154 | $ 3,154 | ||
Common stock issued under stock plans, net of shares withheld for employee taxes, shares | 1,079 | |||
Ending balance at Dec. 31, 2013 | 149,433 | $ 166,888 | (17,424) | (31) |
Ending balance, shares at Dec. 31, 2013 | 27,327 | |||
Net income | 10,394 | 10,394 | ||
Comprehensive loss | (6) | (6) | ||
Issuance of common stock in acquisition | 2,246 | $ 2,246 | ||
Issuance of common stock in acquisition, shares | 82 | |||
Stock based compensation | 1,625 | $ 1,625 | ||
Tax benefits from equity awards | 3,234 | 3,234 | ||
Common stock issued under stock plans, net of shares withheld for employee taxes | 933 | $ 933 | ||
Common stock issued under stock plans, net of shares withheld for employee taxes, shares | 268 | |||
Ending balance at Dec. 31, 2014 | $ 167,859 | $ 174,926 | (7,030) | (37) |
Ending balance, shares at Dec. 31, 2014 | 27,677 | 27,677 | ||
Net income | $ 8,621 | 8,621 | ||
Comprehensive loss | (33) | (33) | ||
Issuance of common stock | 98,014 | $ 98,014 | ||
Issuance of common stock, shares | 3,870 | |||
Stock donated to Company | 0 | $ 0 | 0 | 0 |
Stock donated to Company, shares | (54) | |||
Stock based compensation | 3,280 | $ 3,280 | ||
Tax benefits from equity awards | 3,008 | 3,008 | ||
Common stock issued under stock plans, net of shares withheld for employee taxes | (429) | $ (429) | ||
Common stock issued under stock plans, net of shares withheld for employee taxes, shares | 154 | |||
Ending balance at Dec. 31, 2015 | $ 280,320 | $ 278,799 | $ 1,591 | $ (70) |
Ending balance, shares at Dec. 31, 2015 | 31,647 | 31,647 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
OPERATING ACTIVITIES: | |||
Net income | $ 8,621 | $ 10,394 | $ 8,418 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 16,997 | 10,931 | 7,852 |
Deferred income taxes | 392 | 1,324 | 2,506 |
Stock based compensation expense | 3,280 | 1,625 | 1,458 |
Excess tax benefits from equity awards | (3,008) | (3,234) | (3,722) |
Provision for doubtful accounts | 284 | 237 | 115 |
Loss on non-marketable equity investments | 117 | 65 | 37 |
Gain on sale of long-lived assets | (72) | ||
Other | 1,401 | 1,394 | 1,660 |
Changes in assets and liabilities, net of business combinations: | |||
Accounts and unbilled receivables | (736) | (6,690) | (10,056) |
Prepaid royalties | (1,006) | (4,174) | (5,119) |
Other prepaid expenses and other current assets | (1,372) | (2,022) | (1,207) |
Other assets | 1,110 | (1,761) | 105 |
Accounts payable | (137) | 2,442 | 1,254 |
Accrued royalties | (202) | 820 | 3,399 |
Accrued liabilities, accrued compensation and related expenses, and other long-term liabilities | 3,075 | 5,434 | 5,593 |
Deferred revenue | 6,173 | 17,471 | 14,761 |
Net cash provided by operating activities | 34,917 | 34,256 | 27,054 |
INVESTING ACTIVITIES: | |||
Business combinations, net of cash acquired | (88,075) | (12,298) | (7,560) |
Proceeds from sales of marketable securities | 5,062 | ||
Proceeds from maturities of marketable securities | 54,799 | 52,625 | 82,661 |
Purchases of marketable securities | (84,228) | (44,341) | (86,139) |
Payments to acquire equity method investments | (1,000) | (325) | (300) |
Payments to acquire cost method investments | (1,000) | (1,000) | |
Payments associated with capitalized software development | (7,265) | (5,658) | (4,267) |
Purchases of property and equipment | (8,094) | (4,544) | (4,444) |
Net cash used in investing activities | (134,863) | (15,541) | (14,987) |
FINANCING ACTIVITIES: | |||
Proceeds from issuance of common stock | 98,014 | ||
Proceeds from exercise of stock options | 328 | 1,094 | 3,318 |
Proceeds from borrowings under revolving line of credit facility | 28,000 | ||
Repayments under revolving line of credit facility | (28,000) | ||
Taxes paid related to net settlement of equity awards | (756) | (161) | (164) |
Excess tax benefits from equity awards | 3,008 | 3,234 | 3,722 |
Payment of earn-outs related to business combinations | (633) | (424) | (771) |
Net cash provided by financing activities | 99,961 | 3,743 | 6,105 |
Net increase in cash and cash equivalents | 15 | 22,458 | 18,172 |
Cash and cash equivalents at beginning of year | 81,995 | 59,537 | 41,365 |
Cash and cash equivalents at end of year | 82,010 | 81,995 | 59,537 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Interest paid | 190 | 56 | 51 |
Income taxes paid | 2,648 | 1,641 | 371 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Receivable from sale of long-lived assets | $ 975 | ||
Issuance of common stock in connection with business combinations | $ 2,246 | $ 534 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting Entity and Segments HealthStream, Inc. (the “Company”) was incorporated in 1990 as a Tennessee corporation and is headquartered in Nashville, Tennessee. The Company operates in three segments: HealthStream Workforce Solutions, HealthStream Patient Experience Solutions, and HealthStream Provider Solutions. Workforce Solutions products consist of SaaS-based services and subscription-based solutions to meet the ongoing training, certification, assessment and development needs of the healthcare community. These solutions provide, deliver and track computer based education for our customers in the United States through our software-as-a-service (SaaS) model. Patient Experience products offer healthcare organizations a wide range of quality and satisfaction surveys, consulting services, analyses of survey results, and other research-based services. Provider Solutions products offer healthcare organizations software applications for administering and tracking provider credentialing, privileging, call center and enrollment. Change in Goodwill Impairment Testing Date During the quarter ended December 31, 2015, the Company voluntarily changed its annual goodwill impairment testing date from December 31 to October 1 of each year. This change provides additional time for the completion of the annual goodwill impairment testing prior to the end of the annual reporting period and results in further alignment with the Company’s annual strategic planning process. Accordingly, management considers this accounting change preferable. The Company is unable to objectively determine, without the use of hindsight, the assumptions that would have been used in earlier periods. Therefore, the change will be applied prospectively as retrospective application to prior periods is deemed impracticable. This change does not result in the delay, acceleration or avoidance of any potential impairment charge. Recently Adopted Accounting Standards The Company has adopted the provisions of Accounting Standards Update (ASU) 2015-17 — Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes Recognition of Revenue Revenues are derived from providing services through our SaaS-based workforce development platform products, courseware subscriptions, provision of survey and research services, sales of software licensing arrangements, software maintenance and support, professional services, custom courseware development and other education and training services. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when persuasive evidence of an arrangement exists, prices are fixed or determinable, services and products are provided to the customer and collectability is probable or reasonably assured. Revenue recognized from software and other arrangements is allocated to each element of the arrangement based on the relative fair values of the elements. While elements include software products and post contract customer support, the fair value of each element is based on vendor specific objective evidence (VSOE). If fair value cannot be determined for each element of the arrangement, all revenue from the arrangement is deferred until fair value can be determined or until all elements of the arrangement are delivered and customer acceptance has occurred. Sales of the Company’s SaaS-based workforce development platform products include customer support, implementation services, and training; therefore all revenues are deferred until the SaaS-based product is implemented, at which time revenues are recognized ratably over the subscription service period. In the event that circumstances occur, which give rise to uncertainty regarding the collectibility of contracted amounts, revenue recognition is suspended until such uncertainty is resolved. Fees for these services are billed on either a monthly, quarterly, or annual basis. Revenues derived from the delivery of services through the Company’s SaaS-based workforce development platform products and courseware subscriptions are recognized ratably over the term of the subscription service agreement or over the historical usage period, if usage typically differs from the subscription period. Other training revenues are generally recognized upon the completion of training. Revenues derived from the license of installed software products are recognized upon shipment or installation of the software, when VSOE of the fair value of the software license can be established. Software support and maintenance revenues are recognized ratably over the term of the related agreement. Revenues recognized from the Company’s survey and research services are determined using both the proportional performance method and the completed contract method. Revenues are generally earned over the estimated survey cycle, which typically ranges from less than one month to up to five months. The survey cycle is generally initiated based on the receipt of the first survey response and runs through provision of related survey reports to the customer. If survey results are not available to the customer during the survey fielding cycle, revenues are recognized at time of report delivery. Revenues for coaching and consulting engagements are recognized using the proportional performance method over the term of the underlying contract. Fees for survey services are billed upon initiation of the survey cycle, with progress billings made throughout the survey cycle. Fees for coaching and consulting engagements are billed upon initiation of the engagement with progress billings throughout the term of the contract. Revenues from professional services and courseware development services are recognized upon the completion of performance milestones and deliverables using the proportional performance method. All other revenues are recognized as the related services are performed or products are delivered. Fees for these services are generally billed at project initiation and upon completion of various milestones. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. inter-company Use of Estimates The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles. These accounting principles require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates and such differences could be material to the consolidated financial statements. Cash Equivalents The Company considers cash equivalents to be unrestricted, highly liquid investments with initial maturities of less than three months. Marketable Securities Marketable securities are classified as available for sale and are stated at fair market value, with the unrealized gains and losses, net of tax, reported in other comprehensive income (loss) on the accompanying consolidated balance sheets. Realized gains and losses and declines in market value judged to be other than temporary on investments in marketable securities are included in interest and other income on the accompanying consolidated statements of income. The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available for sale are included in other income (expense) on the accompanying consolidated statements of income. Premiums and discounts are amortized over the life of the related available for sale security as an adjustment to yield using the effective interest method. Accounts Receivable-Unbilled Accounts receivable-unbilled Deferred Revenue Deferred revenue represents amounts that have been billed or collected in advance of revenue recognition. The Company typically invoices customers in quarterly, bi-annual, or annual installments, and occasionally customers will pay for multi-year contracts in advance. Deferred revenue is recognized as the revenue recognition criteria are met. Prepaid Royalties Prepaid royalties represents advance payments associated with the sale of third party products, such as courseware subscriptions. Royalties are typically paid in advance at the commencement of the revenue cycle, or periodically throughout the revenue cycle, such as quarterly, bi-annual, or annual installments. Royalty payments are amortized over the term of the underlying contracts, which generally range from 12 to 36 months, in order to match the direct royalty costs to the same period the subscription revenue is recognized. Amortization of royalties is included under the caption “cost of revenues (excluding depreciation and amortization)” in the accompanying consolidated statements of income. Allowance for Doubtful Accounts The Company estimates its allowance for doubtful accounts using a specific identification method in which management considers the facts and circumstances surrounding each potentially uncollectible receivable. An allowance is also maintained for accounts that are not specifically identified that may become uncollectible in the future. Uncollectible receivables are written-off in the period management believes it has exhausted every opportunity to collect payment from the customer. Bad debt expense is recorded when events or circumstances indicate an additional allowance is required based on the Company’s specific identification approach. Changes in the allowance for doubtful accounts and the amounts charged to bad debt expense for the years ended December 31, were as follows (in thousands): Allowance Balance at Charged to Costs and Write-offs Allowance Balance at 2015 $ 331 $ 284 $ (312 ) $ 303 2014 $ 211 $ 237 $ (117 ) $ 331 2013 $ 142 $ 115 $ (46 ) $ 211 Capitalized Software Development Capitalized software development is stated on the basis of cost, and is presented net of accumulated amortization. The Company capitalizes costs incurred during the software development phase for projects when such costs are material. These assets are amortized using the straight-line method, generally ranging between three to five years. The Company capitalized approximately $7.3 million and $5.7 million during 2015 and 2014, respectively. Amortization of capitalized software development was approximately $6.2 million and $4.3 million during 2015 and 2014, respectively. Maintenance and operating costs are expensed as incurred. As of December 31, 2015 and 2014, there were no capitalized internal development costs for computer software developed for resale. Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used in measuring fair value. There are three levels to the fair value hierarchy based on the reliability of inputs, as follows: Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 – Unobservable inputs in which little or no market data exists, therefore requiring the Company to develop its own assumptions. The Company evaluates assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level at which to classify them for each reporting period. This determination requires significant judgments to be made by the Company. At December 31, 2015 and 2014, our assets measured at fair value on a recurring basis consisted of marketable securities, which are classified as available for sale (see Note 4 – Marketable Securities). The Company did not have any financial liabilities that were subject to fair value measurements as of such dates. Property and Equipment Property and equipment are stated on the basis of cost. Depreciation and amortization are provided on the straight-line Years Furniture and fixtures 5-10 Equipment 3-5 Goodwill and Intangible Assets Goodwill represents the excess of purchase price in a business combination over the fair value of the net identifiable assets acquired. The carrying amount of our goodwill is evaluated for impairment at least annually during the fourth quarter and whenever events or changes in facts or circumstances indicate that impairment may exist. In accordance with ASC 350, Intangibles – Goodwill and Other As of December 31, 2015, intangible assets with remaining unamortized balances include contract rights and customer relationships, internally-developed technology and patents, non-competition agreements, and trade names. These intangible assets are considered to have definite useful lives and are being amortized on a straight line basis over periods typically ranging between three and fifteen years. The weighted average amortization period for definite lived intangible assets as of December 31, 2015 was 11.3 years. Intangible assets are reviewed for impairment whenever events or changes in facts or circumstances indicate that the carrying amount of the assets may not be recoverable. There were no impairments identified or recorded for the years ended December 31, 2015, 2014, or 2013. Long-Lived Long-lived assets to be held for use are reviewed for events or changes in facts and circumstances, both internally and externally, which may indicate that an impairment of long-lived long-lived Non-Marketable Equity Investments Non-marketable equity investments are accounted for using the equity method when the Company can exercise significant influence over the investee. Investments for which the Company is not able to exercise significant influence over the investee are accounted for under the cost method. The proportionate share of income or loss from equity method investments are recorded under the caption “other income, net” in the accompanying consolidated statements of income. Financial Instruments The Company has various financial instruments, including cash and cash equivalents, accounts receivable, accounts receivable-unbilled, accounts payable, accrued liabilities, and deferred revenue. The carrying amounts of these financial instruments approximate fair value because of the short term maturity or short term nature of such instruments. The Company also has marketable securities, which are recorded at approximate fair value based on quoted market prices or alternative pricing sources (see Note 4 – Marketable Securities). Advertising The Company expenses the costs of advertising as incurred. Advertising expense for the years ended December 31, 2015, 2014, and 2013 was approximately $1.1 million, $0.7 million, and $0.4 million, respectively. Shipping and Handling Costs Shipping and handling costs that are associated with our products and services are included in cost of revenues. Income Taxes Income taxes are accounted for using the asset and liability method, whereby deferred tax assets and liabilities are determined based on the temporary differences between the financial statement and tax bases of assets and liabilities measured at tax rates that will be in effect for the year in which the differences are expected to affect taxable income. Management evaluates all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance is needed. Future realization of the tax benefit of an existing deductible temporary difference or carryforward ultimately depends on the existence of sufficient taxable income of the appropriate character within the carryback or carryforward period available under the tax law. There are four possible sources of taxable income that may be available under the tax law to realize a tax benefit for deductible temporary differences and carryforwards: 1) future reversals of existing taxable temporary differences, 2) future taxable income exclusive of reversing temporary differences and carryforwards, 3) taxable income in prior carryback year(s) if carryback is permitted under the tax law, and 4) tax-planning strategies that would, if necessary, be implemented to realize deductible temporary differences or carryforwards prior to their expiration. Management reviews the realizability of its deferred tax assets each reporting period to identify whether any significant changes in circumstances or assumptions have occurred that could materially affect the realizability of deferred tax assets. As of December 31, 2015, the Company had established a valuation allowance of $346,000 for the portion of its net deferred tax assets that are not more likely than not expected to be realized. The Company accounts for income tax uncertainties using a more-likely-than-not recognition threshold based on the technical merits of the tax position taken. Tax positions that meet the more-likely-than-not recognition threshold are measured in order to determine the tax benefit to be recognized in the financial statements. The Company expenses any penalties or interest associated with tax obligations as general and administrative expenses and interest expense, respectively. Earnings Per Share Basic earnings per share is computed by dividing the net income available to common shareholders for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing the net income for the period by the weighted average number of common and common equivalent shares outstanding during the period. Common equivalent shares are composed of incremental common shares issuable upon the exercise of stock options and restricted share units subject to vesting. The dilutive effect of common equivalent shares is included in diluted earnings per share by application of the treasury stock method. Common equivalent shares that have an anti-dilutive effect on diluted net income per share have been excluded from the calculation of diluted weighted average shares outstanding for the years ended December 31, 2015, 2014, and 2013. Concentrations of Credit Risk and Significant Customers The Company’s credit risks relate primarily to cash and cash equivalents, marketable securities and accounts receivable. The Company places its temporary excess cash investments in high quality, short-term The Company sells its products and services to various companies in the healthcare industry that are located in the United States. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral from customers. An allowance for doubtful accounts is maintained for potentially uncollectible accounts receivable. The Company did not have any single customer representing over 10% of net revenues during 2015, 2014, or 2013. Stock Based Compensation As of December 31, 2015, the Company maintains two stock based compensation plans, which are described in Note 11. The Company accounts for stock based compensation using the fair-value based method for costs related to share-based payments, including stock options and restricted share units. The Company uses the Black Scholes option pricing model for calculating the fair value of option awards issued under its stock based compensation plan. The Company measures compensation cost of restricted share units based on the closing fair market value of the Company’s stock on the date of grant. Stock based compensation cost is measured at the grant date, based on the fair value of the award that is ultimately expected to vest, and is recognized as an expense over the requisite service period. The Company recognizes tax benefits from stock based compensation if an excess tax benefit is realized. Excess tax benefits are recorded as an increase to common stock when realized. Newly Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Shareholders' Equity | 2. SHAREHOLDERS’ EQUITY Common Stock The Company is authorized to issue up to 75 million shares of common stock. The number of common shares issued and outstanding as of December 31, 2015 and 2014 was approximately 31.6 million and 27.7 million, respectively. The Company issued approximately 3.9 million shares of common stock in connection with an underwritten public offering, which was completed in May 2015, raising approximately $98.0 million of cash. Preferred Stock The Company is authorized to issue up to 10 million shares of preferred stock in one or more series, having the relative voting powers, designations, preferences, rights and qualifications, limitations or restrictions, and other terms as the Board of Directors may fix in providing for the issuance of such series, without any vote or action of the shareholders. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share for the three years ended December 31, 2015 (in thousands, except per share amounts): 2015 2014 2013 Numerator: Net income $ 8,621 $ 10,394 $ 8,418 Denominator: Weighted-average shares outstanding 30,057 27,570 26,853 Effect of dilutive shares 379 453 810 Weighted-average diluted shares 30,436 28,023 27,663 Basic earnings per share $ 0.29 $ 0.38 $ 0.31 Diluted earnings per share $ 0.28 $ 0.37 $ 0.30 Potentially dilutive shares representing approximately 16,000, 70,000, and 70,000 shares of common stock for 2015, 2014, and 2013, respectively, were excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive. |
Marketable Securities
Marketable Securities | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | 4. MARKETABLE SECURITIES At December 31, 2015 and 2014, the fair value of marketable securities, which were all classified as available for sale, included the following (in thousands): December 31, 2015 Adjusted Cost Unrealized Unrealized Fair Value Level 2: Certificates of deposit $ 1,000 $ — $ — $ 1,000 Corporate debt securities 66,046 — (70 ) 65,976 Total $ 67,046 $ — $ (70 ) $ 66,976 December 31, 2014 Adjusted Cost Unrealized Unrealized Fair Value Level 2: Certificates of deposit $ 6,278 $ — $ — $ 6,278 Corporate debt securities 32,732 — (37 ) 32,695 Total $ 39,010 $ — $ (37 ) $ 38,973 The carrying amounts of the marketable securities reported in the consolidated balance sheets approximate fair value based on quoted market prices or alternative pricing sources and models utilizing market observable inputs. As of December 31, 2015, the Company does not consider any of its marketable securities to be other than temporarily impaired. During the years ended December 31, 2015 and 2014, the Company did not reclassify any items out of accumulated other comprehensive income to net income. All investments in marketable securities are classified as a current asset on the balance sheet because the underlying securities mature within one year from the balance sheet date. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Combinations | 5. BUSINESS COMBINATIONS HealthLine Systems On March 16, 2015, the Company acquired all of the membership interests of HealthLine Systems, LLC (HLS), a San Diego, California based company that specializes in credentialing, privileging, call center, and quality management solutions for the healthcare industry. The acquisition of HLS enables the Company to provide a comprehensive solution set for healthcare provider credentialing, privileging, enrollment, referral, onboarding, and analytics in support of HealthStream’s approach to talent management for healthcare organizations. The consideration paid for HLS consisted of approximately $88.1 million in cash (taking into account an estimated closing working capital adjustment). The Company incurred approximately $1.3 million in transaction costs associated with the acquisition, of which $965,000 were incurred during the year ended December 31, 2015 and $329,000 were incurred during the year ended December 31, 2014. The transaction costs were recorded under the caption “other general and administrative” in the consolidated statements of income. The results of operations for HLS have been included in the Company’s consolidated financial statements from the date of acquisition, and are also included in the HealthStream Provider Solutions segment. A summary of the purchase price is as follows (in thousands): Cash paid at closing $ 81,379 Cash held in escrow 6,750 Total consideration paid $ 88,129 The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed as of the date of acquisition (in thousands): Cash $ 54 Accounts receivable, net 3,052 Prepaid assets 546 Property and equipment 200 Deferred tax assets 2,523 Goodwill 41,618 Intangible assets 47,200 Accounts payable and accrued liabilities (1,085 ) Deferred revenue (5,979 ) Preliminary net assets acquired $ 88,129 The excess of preliminary purchase price over the preliminary fair values of net tangible and intangible assets is recorded as goodwill. The preliminary fair values of tangible and identifiable intangible assets, deferred tax assets, deferred revenue, and other liabilities are based on management’s estimates and assumptions. The preliminary fair values of assets acquired and liabilities assumed are considered preliminary and are based on the information that was available at the time of the acquisition. The preliminary fair values of assets acquired and liabilities assumed are subject to change during the measurement period (up to one year from the acquisition date) as we finalize the valuation of tax liabilities and determine final working capital adjustments. Included in the preliminary assets and liabilities is an estimated indemnification asset of $300,000 and a contingent liability of $700,000, both of which are associated with tax liabilities. The contingent liability is measured based on management’s estimate of a range of probable outcomes. During the fourth quarter of 2015, the Company reduced the preliminary fair value for accounts receivable by $115,000, prepaid assets by $200,000, and accrued liabilities by $800,000. The goodwill balance is primarily attributed to the assembled workforce, additional market opportunities from offering HLS’s products, and expected synergies from integrating HLS with other products or other combined functional areas within the Company. The goodwill balance is deductible for U.S. income tax purposes. The net tangible assets include deferred revenue, which was adjusted down from a book value at the acquisition date of $15.0 million to an estimated fair value of $6.0 million. The $9.0 million write-down of deferred revenue will result in lower revenues than would have otherwise been recognized for such services. The following table sets forth the components of identifiable intangible assets and their estimated useful lives as of the acquisition date (in thousands): Preliminary Value Useful life Customer relationships $ 42,600 13 years Developed technology 3,700 5 years Trade names 900 6 years Total preliminary intangible assets subject to amortization $ 47,200 The weighted average amortization period for the identifiable intangible assets acquired is 12.2 years. The amounts of revenue and operating income (loss) of HLS included in the Company’s consolidated statements of income from the date of acquisition of March 16, 2015 to the period ending December 31, 2015 are as follows (in thousands): Total revenues $ 8,543 Operating loss $ (2,541 ) The following unaudited pro forma financial information summarizes the combined results of operations of the Company and HLS, which was significant for purposes of the unaudited pro forma financial information disclosure, as though the companies were combined as of January 1, 2014 (in thousands, except per share data): Year Ended December 31, 2015 2014 Total revenues $ 219,108 $ 182,548 Net income $ 13,551 $ 8,658 Basic earnings per share $ 0.45 $ 0.31 Diluted earnings per share $ 0.44 $ 0.31 These unaudited pro forma combined results of operations include certain adjustments arising from the acquisition such as adjustment for amortization of intangible assets, depreciation of property and equipment, fair value adjustments of acquired deferred revenue balances, and interest expense associated with borrowings under a revolving credit facility by the Company to partially fund the acquisition. The pro forma combined results for the year ended December 31, 2014 include nonrecurring adjustments of $4.2 million, which reduce net income due to the revaluation of HLS’s historic deferred revenue to fair value. The unaudited pro forma combined results of operations is for informational purposes only and is not indicative of what the Company’s results of operations would have been had such transactions occurred at the beginning of the period presented or to project the Company’s results of operations in any future period. The unaudited pro forma financial information for the years ended December 31, 2015 and 2014 combines the historical results of the Company and HLS for the years ended December 31, 2015 and 2014 and the pro forma adjustments listed above. Health Care Compliance Strategies On March 3, 2014, the Company acquired all of the stock of Health Care Compliance Strategies, Inc. (HCCS), a Jericho, New York based company that specializes in healthcare compliance solutions and services. The Company acquired HCCS to further advance its suite of workforce development solutions, including its offering of compliance solutions. The consideration paid for HCCS consisted of approximately $12.8 million in cash (taking into account a post-closing working capital adjustment) and 81,614 shares of our common stock. The Company made an additional payment of $750,000 during the second quarter of 2015, upon the achievement of certain performance milestones within one year post-closing. The Company incurred approximately $515,000 in transaction costs associated with the acquisition, of which $365,000 were incurred during the year ended December 31, 2014 and $150,000 were incurred during the year ended December 31, 2013. The transaction costs were recorded under the caption “other general and administrative” in the consolidated statements of income. In allocating the purchase price, the Company recorded approximately $6.2 million of goodwill, $8.4 million of identifiable intangible assets, $2.6 million of tangible assets, $625,000 of deferred tax assets, and $2.7 million of liabilities. Included in the recorded liabilities was an accrual for contingent consideration of approximately $600,000. The goodwill balance is primarily attributed to assembled workforce, additional market opportunities of HCCS’s compliance solutions, and expected synergies from integrating HCCS’s products into our platform. The goodwill balance is deductible for U.S. income tax purposes. The net tangible assets include deferred revenue, which was adjusted down from a book value at the acquisition date of $3.2 million to an estimated fair value of $1.7 million. The $1.5 million write-down of deferred revenue resulted in lower revenues than would have otherwise been recognized for such services. The results of operations for HCCS have been included in the Company’s consolidated financial statements from the date of acquisition, and are also included in the HealthStream Workforce Development Solutions segment. Baptist Leadership Group On September 9, 2013, the Company acquired substantially all of the assets of Baptist Leadership Group (BLG), a Pensacola, Florida based company that provides consulting services focused on patient-centered performance excellence in healthcare. The Company acquired BLG to strengthen its Patient Experience Solutions. The consideration paid for BLG consisted of approximately $7.4 million in cash (taking into account the working capital adjustment) and 15,230 shares of our common stock. The Company incurred approximately $145,000 in transaction costs associated with the acquisition, which are included on the accompanying consolidated statements of income under the caption “other general and administrative.” In allocating the purchase price, the Company recorded approximately $6.3 million of goodwill, $1.6 million of identifiable intangible assets, and $28,000 of net tangible assets. The goodwill balance is primarily attributed to the assembled workforce, additional market opportunities from BLG’s consulting services, and expected synergies from integrating BLG into the operations of the HealthStream Patient Experience Solutions segment. The goodwill balance is deductible for U.S. income tax purposes. The net tangible assets include deferred revenue, which was adjusted down from a book value of $508,000 to an estimated fair value of $254,000. The $254,000 write-down of deferred revenue resulted in lower revenues than would have otherwise been recognized for such services. The results of operations for BLG have been included in the Company’s consolidated financial statements from the date of acquisition, and are included in the HealthStream Patient Experience Solutions segment. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | 6. PROPERTY AND EQUIPMENT Property and equipment consist of the following: December 31, 2015 2014 Equipment $ 23,057 $ 25,133 Leasehold improvements 4,435 5,860 Furniture and fixtures 4,338 4,554 Gross property and equipment 31,830 35,547 Accumulated depreciation and amortization (19,359 ) (26,105 ) Property and equipment, net $ 12,471 $ 9,442 Depreciation of property and equipment totaled approximately $5.3 million and $4.1 million for the years ended December 31, 2015 and 2014, respectively. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 7. GOODWILL The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 are as follows (in thousands): Workforce Patient Provider Total Balance at January 1, 2015 $ 12,336 $ 24,154 $ 5,424 $ 41,914 Acquisition of HealthLine Systems, LLC — — 41,618 41,618 Disposal of long lived assets — — (459 ) (459 ) Balance at December 31, 2015 $ 12,336 $ 24,154 $ 46,583 $ 83,073 Workforce Patient Provider Total Balance at January 1, 2014 $ 6,168 $ 24,154 $ 5,424 $ 35,746 Acquisition of Health Care Compliance Strategies, Inc. 6,168 — — 6,168 Balance at December 31, 2014 $ 12,336 $ 24,154 $ 5,424 $ 41,914 During the quarter ended December 31, 2015, the Company disposed of certain long lived assets meeting the definition of a business. Accordingly, we have allocated approximately $459,000 of reporting unit goodwill to this disposition of assets pursuant to ASC 350, Intangibles – Goodwill and other. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | 8. INTANGIBLE ASSETS Intangible assets other than goodwill are considered to have finite useful lives. Customer related intangibles are amortized over their estimated useful lives ranging from five to thirteen years. Other intangible assets include non-competition agreements, technology and patents, and trade names, and are being amortized over periods ranging from three to nine years. During the quarter ended December 31, 2015, the Company retired approximately $10.7 million of fully amortized identifiable intangible assets. Gross amounts and related accumulated amortization presented below as of December 31, 2015 are reflective of such retirements. Such amounts are also inclusive of identifiable intangible assets recorded in relation to our acquisition of HealthLine Systems, LLC (see Note 5 – Business Combinations). Amortization of intangible assets was approximately $5.6 million and $2.4 million for the years ended December 31, 2015 and 2014, respectively. Identifiable intangible assets are comprised of the following (in thousands): As of December 31, 2015 As of December 31, 2014 Gross Amount Accumulated Net Gross Amount Accumulated Net Customer related $ 55,571 $ (6,068 ) $ 49,503 $ 23,329 $ (11,880 ) $ 11,449 Other 9,080 (2,617 ) 6,463 5,300 (1,954 ) 3,346 Total $ 64,651 $ (8,685 ) $ 55,966 $ 28,629 $ (13,834 ) $ 14,795 The expected future annual amortization expense for the years ending December 31, is as follows (in thousands): 2016 $ 6,400 2017 6,323 2018 6,211 2019 5,566 2020 4,913 Thereafter 26,553 Total $ 55,966 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Business Segments | 9. BUSINESS SEGMENTS The Company provides services to healthcare organizations and other members within the healthcare industry. The Company’s services are focused on the delivery of workforce development products and services (HealthStream Workforce Solutions), survey and research services (HealthStream Patient Experience Solutions), and provider credentialing, privileging, call center and enrollment products and services (HealthStream Provider Solutions). The Company measures segment performance based on operating income before income taxes and prior to the allocation of certain corporate overhead expenses, interest income, interest expense, gains and losses from equity investments, and depreciation. The Unallocated component below includes corporate functions, such as accounting, human resources, legal, investor relations, administrative and executive personnel, depreciation, a portion of amortization, and certain other expenses, which are not currently allocated in measuring segment performance. The following is the Company’s business segment information as of and for the years ended December 31, 2015, 2014 and 2013 (in thousands). Revenues, net: 2015 2014 2013 Workforce $ 161,289 $ 134,242 $ 99,963 Patient Experience 34,193 31,901 28,454 Provider 13,520 4,547 3,857 Total revenues, net $ 209,002 $ 170,690 $ 132,274 Operating income: 2015 2014 2013 Workforce $ 39,986 $ 35,374 $ 28,203 Patient Experience 1,548 810 2,819 Provider (2,559 ) 826 277 Unallocated (25,418 ) (20,635 ) (16,633 ) Total operating income $ 13,557 $ 16,375 $ 14,666 Assets * Purchases of long-lived assets Depreciation and amortization 2015 2014 2013 2015 2014 2013 2015 2014 2013 Workforce $ 82,375 $ 81,116 $ 48,514 $ 11,403 $ 7,179 $ 6,243 $ 6,693 $ 4,813 $ 2,829 Patient Experience 34,902 34,536 34,727 2,007 1,277 726 1,061 1,272 1,068 Provider 100,948 10,976 11,499 332 200 67 3,986 683 683 Unallocated 161,344 130,634 117,854 1,617 1,546 1,675 5,257 4,163 3,272 Total $ 379,569 $ 257,262 $ 212,594 $ 15,359 $ 10,202 $ 8,711 $ 16,997 $ 10,931 $ 7,852 * Segment assets include accounts and unbilled receivables, prepaid royalties, prepaid and other current assets, other assets, capitalized software development, certain property and equipment, and intangible assets. Cash and cash equivalents and marketable securities are not allocated to individual segments, and are included within Unallocated. A significant portion of property and equipment assets are included within Unallocated. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. INCOME TAXES The provision (benefit) for income taxes is comprised of the following (in thousands): Year Ended December 31, 2015 2014 2013 Current federal $ 3,608 $ 3,198 $ 2,474 Current state 1,098 1,605 1,444 Deferred federal 501 1,092 2,315 Deferred state (109 ) 232 191 Provision for income taxes $ 5,098 $ 6,127 $ 6,424 A reconciliation of income taxes at the statutory federal income tax rate to the provision for income taxes included in the accompanying consolidated statements of income is as follows (in thousands): Year Ended December 31, 2015 2014 2013 Federal tax provision at the statutory rate $ 4,802 $ 5,782 $ 5,194 State income tax provision, net of federal benefit 673 1,350 898 Tax credits (425 ) (1,160 ) (54 ) Change in state valuation allowance (8 ) 37 231 Other 56 118 155 Provision for income taxes $ 5,098 $ 6,127 $ 6,424 Management periodically evaluates the realizability of its deferred tax assets, and to the extent that a recovery is not likely, a valuation allowance is established to reduce the deferred tax asset to the amount estimated to be recoverable. At December 31, 2015, a valuation allowance of $346,000 exists. The Company adjusts deferred tax liabilities and assets in the period of enactment for the effect of an enacted change in tax laws or rates. Accordingly, the state income tax provision for the period ended December 31, 2015 is inclusive of a deferred tax benefit of $188,000 related to a change in state tax law that will be effective for the Company’s tax year beginning on or after January 1, 2017. As of December 31, 2015, the Company had state net operating loss carryforwards of $13.0 million. These loss carryforwards will expire in years 2016 through 2025. The Company is subject to income taxation at the federal and various state levels. The Company is subject to U.S. federal tax examinations for tax years 2012 through 2015. Loss carryforwards and credit carryforwards generated or utilized in years earlier than 2012 are also subject to examination and adjustment. The Company has examinations in process with the Internal Revenue Service for tax years 2013 and 2014. The Company has research and development tax credit carryforwards of $1.9 million that expire in varying amounts through 2035. As of December 31, 2015, the Company had alternative minimum tax credit carryforwards of $816,000 that are available to offset future regular tax liabilities and they do not expire. A reconciliation of the beginning and ending liability for gross unrecognized tax benefits at December 31, 2015 and 2014, are as follows (in thousands): December 31, 2015 2014 Balance at beginning of year $ 2,168 $ 167 Additions for tax positions in the current year 351 2,168 Reductions for tax positions of prior years (1,861 ) (167 ) Balance at end of year $ 658 $ 2,168 The Company recognized approximately $14,000 and $125,000 for interest and penalties related to unrecognized tax benefits within the provision for income taxes during the years ended December 31, 2015 and 2014, respectively. Unrecognized tax benefits included tax positions of approximately $278,000 at both December 31, 2015 and 2014 that if recognized would impact the Company’s effective tax rate. The reduction for tax positions of prior years reflected in the table above as of December 31, 2015 relates to a change in tax accounting method filed with the IRS for tangible property and deferred revenue. The Company estimates that it is reasonably possible the liability for unrecognized tax benefits could decrease up to $0.3 million within the next 12 months. Deferred federal and state income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred tax assets and deferred tax liabilities are as follows (in thousands): December 31, 2015 2014 Deferred tax assets: Allowance for doubtful accounts $ 122 $ 134 Accrued liabilities 2,062 1,565 Tax credits 816 791 Stock based compensation 1,107 1,015 Deferred revenue 1,563 616 Depreciation 348 715 Basis difference on investments 80 — Net operating loss carryforwards 407 355 Total deferred tax assets 6,505 5,191 Less: Valuation allowance (346 ) (355 ) Deferred tax assets, net of valuation allowance 6,159 4,836 Deferred tax liabilities: Deductible goodwill 2,646 2,369 Nondeductible intangible assets 1,806 2,171 Prepaid assets 1,911 1,602 Capitalized software development 4,559 3,836 Basis difference on investments — 343 Total deferred tax liabilities 10,922 10,321 Net deferred tax liabilities $ (4,763 ) $ (5,485 ) |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | 11. STOCK BASED COMPENSATION Stock Incentive Plans The Company’s 2010 Stock Incentive Plan (2010 Plan) and 2000 Stock Incentive Plan (2000 Plan; collectively, the 2010 Plan and the 2000 Plan referred to as the Plan) authorize the grant of options, restricted share units (RSU), or other forms of stock based compensation to employees, officers, directors and others, and such grants must be approved by the Compensation Committee of the Board of Directors. Options granted under the Plan have terms of no more than ten years, with certain restrictions. The Plan allows the Compensation Committee of the Board of Directors to determine the vesting period and parameters of each grant. The vesting period of the options and RSUs granted has historically ranged from immediate vesting to annual vesting up to four years, generally beginning one year after the grant date. As of December 31, 2015, approximately 487,000 shares of unissued common stock remained reserved for future stock incentive grants under the Plan. The Company issues new shares of common stock when options are exercised or when RSUs become vested. Stock Option Activity A summary of activity and various other information relative to stock options for the year ended December 31, 2015 is presented in the tables below (in thousands, except exercise price). Common Shares Weighted- Average Exercise Price Aggregate Intrinsic Value Outstanding at beginning of period 596 $ 6.18 Granted — — Exercised (76 ) 4.29 Expired — — Forfeited — — Outstanding at end of period 520 $ 6.45 $ 8,081 Exercisable at end of period. 520 $ 6.45 $ 8,081 The aggregate intrinsic value for stock options in the table above represents the total difference between the Company’s closing stock price on December 31, 2015 (the last trading day of the year) of $22.00 per share and the option exercise price, multiplied by the number of in-the-money options as of December 31, 2015. The weighted average remaining contractual term of options outstanding at December 31, 2015 was 2.5 years. Options exercisable at December 31, 2015 have a weighted average remaining contractual term of 2.5 years. Other information relative to option activity during the three years ended December 31, 2015 is as follows (in thousands): 2015 2014 2013 Total grant date fair value of stock options vested $ 232 $ 630 $ 723 Total intrinsic value of stock options exercised $ 1,662 $ 5,912 $ 25,846 Cash proceeds from exercise of stock options $ 328 $ 1,094 $ 3,318 Restricted Share Unit Activity A summary of activity relative to RSUs for the year ended December 31, 2015 is follows (in thousands, except weighted average grant date fair value): Number of RSU’s Weighted- Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding at beginning of period 164 $ 25.04 Granted 110 24.97 Vested (54 ) 24.17 Forfeited (2 ) 26.03 Outstanding at end of period 218 $ 25.21 $ 4,793 The aggregate fair value of RSU awards that vested in 2015 and 2014, as of the respective vesting dates, was approximately $1.4 million and $1.1 million, respectively. A portion of RSUs that vested in 2015 and 2014 were net-share settled such that the Company withheld shares with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. The total shares withheld for RSUs during 2015 and 2014 were 8,922 and 5,327, respectively, and were based on the value of the RSUs on their respective settlement dates as determined by the Company’s closing stock price. Total payments related to RSUs for the employees’ tax obligations to taxing authorities were approximately $230,000 in 2015 and $161,000 in 2014, and are reflected as a financing activity within the consolidated statements of cash flows. These net-share settlements had the effect of share repurchases by the Company as they reduced and retired the number of shares that would have otherwise been issued as a result of the vesting and did not represent an expense to the Company. Stock Based Compensation Total stock based compensation expense, which is recorded in our consolidated statements of income, recorded for the years ended December 31, is as follows (in thousands): Years Ended December 31, 2015 2014 2013 Cost of revenues (excluding depreciation and amortization) $ 824 $ 86 $ 81 Product development 569 201 144 Sales and marketing 547 224 175 Other general and administrative 1,340 1,114 1,058 Total stock based compensation expense $ 3,280 $ 1,625 $ 1,458 The Company amortizes the fair value of all stock based awards, net of estimated forfeitures, on a straight-line basis over the requisite service period, which generally is the vesting period. As of December 31, 2015, total unrecognized compensation expense related to non-vested stock options and RSUs was approximately $3.0 million, net of estimated forfeitures, with a weighted average expense recognition period remaining of 2.3 years. The Company realized approximately $3.0 million of excess tax benefits related to stock based awards during the year ended December 31, 2015, which was recorded as an increase to common stock. Stock based compensation cost for RSUs is measured based on the closing fair market value of the Company’s stock on the date of grant. Stock based compensation cost for stock options is estimated at the grant date based on the fair value calculated using the Black-Scholes Stock Awards During June 2015, the Company’s CEO, Robert A. Frist, Jr., entered into an agreement with the Company pursuant to which he contributed 54,241 of his personally owned shares of HealthStream, Inc. common stock to the Company, without any consideration paid to him. In connection with this contribution, the Company approved the grant of 49,310 shares of HealthStream, Inc. common stock to over 600 employees who were not otherwise eligible to receive equity awards and had at least one year of service with the Company. The Company recognized approximately $1.5 million of stock based compensation expense for these stock awards during the three months ended June 30, 2015 based on the closing fair market value of the Company’s stock on the date of the Company’s approval of these grants. In connection with these equity awards, effective in the second quarter of 2015, the Company withheld shares with value equivalent to the employees’ minimum statutory obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities. The total shares withheld were 17,279, and were based on the value of the stock awards on the date of the Company’s approval of these grants, as determined by the Company’s closing stock price on that date. Total payments related to the employees’ tax obligations to taxing authorities for these stock awards were approximately $526,000 and are reflected as a financing activity within the consolidated statements of cash flows for the year ended December 31, 2015. These share withholdings had the effect of share repurchases by the Company as they reduced and retired the number of shares otherwise issuable as a result of the stock awards and did not represent an expense to the Company. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | 12. EMPLOYEE BENEFIT PLAN 401(k) Plan The Company has a defined-contribution employee benefit plan (401(k) Plan) incorporating provisions of Section 401(k) of the Internal Revenue Code. Employees must have attained the age of 21 and have completed thirty days of service to be eligible to participate in the 401(k) Plan. Under the provisions of the 401(k) Plan, a plan member may make contributions, on a tax-deferred basis, subject to IRS limitations. The Company elected to provide eligible employees with matching contributions totaling approximately $645,000 and $274,000 for the years ended December 31, 2015 and 2014, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | 13. DEBT At December 31, 2015 and 2014, the Company had no debt outstanding. Revolving Credit Facility The Company maintains a Loan Agreement (the “Revolving Credit Facility”) with SunTrust Bank (“SunTrust”) in the aggregate principal amount of $50.0 million, which matures on November 24, 2017. Under the Revolving Credit Facility, the Company may borrow up to $50.0 million, which includes a $5.0 million swing line subfacility, as well as an accordion feature that allows the Company to increase the Revolving Credit Facility by a total of up to $25.0 million, subject to securing additional commitments from existing lenders or new lending institutions. The Revolving Credit Facility includes a $5.0 million letter of credit subfacility. The obligations under the Revolving Credit Facility are guaranteed by each of the Company’s subsidiaries. At the Company’s election, the borrowings under the Revolving Credit Facility bear interest at either (1) a rate per annum equal to the highest of SunTrust’s prime rate or 0.5% in excess of the Federal Funds Rate or 1.0% in excess of one-month LIBOR (the “Base Rate”), plus an applicable margin, or (2) the one, two, three, or six-month per annum LIBOR for deposits in the applicable currency (the “Eurocurrency Rate”), as selected by the Company, plus an applicable margin. The applicable margin for Eurocurrency Rate loans depends on the Company’s funded debt leverage ratio and varies from 1.50% to 2.00%. The applicable margin for Base Rate loans depends on the Company’s funded debt leverage ratio and varies from 0.50% to 1.50%. Commitment fees and letter of credit fees are also payable under the Revolving Credit Facility. Principal is payable in full at maturity on November 24, 2017, and there are no scheduled principal payments prior to maturity. The Company is required to pay a commitment fee ranging between 20 and 30 basis points per annum of the average daily unused portion of the Revolving Credit Facility, depending on the Company’s funded debt leverage ratio. The purpose of the Revolving Credit Facility is for general working capital needs, permitted acquisitions (as defined in the Loan Agreement), and for stock repurchase and/or redemption transactions that the Company may authorize. The Revolving Credit Facility contains certain covenants that, among other things, restrict additional indebtedness, liens and encumbrances, changes to the character of the Company’s business, acquisitions, asset dispositions, mergers and consolidations, sale or discount of receivables, creation or acquisitions of additional subsidiaries, and other matters customarily restricted in such agreements. As of December 31, 2015, the Company was in material compliance with all covenants. There were no balances outstanding on the Revolving Credit Facility as of December 31, 2015. During the three months ended March 31, 2015, the Company borrowed approximately $28.0 million under the Revolving Credit Facility. During the three months ended June 30, 2015, the Company repaid approximately $28.0 million of balances previously outstanding under the Revolving Credit Facility from proceeds received in the Company’s public offering of 3,869,750 shares which closed on May 28, 2015. The weighted average interest rate was 1.68% for borrowings under Revolving Credit Facility during the year ended December 31, 2015. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Leases | 14. LEASES The Company has non-cancellable operating leases primarily for office space, hosting facilities, and office equipment. Some lease agreements contain provisions for escalating rent payments over the initial terms of the lease. The Company accounts for these leases by recognizing rent expense on a straight-line straight-line Future rental payment commitments at December 31, 2015 under non-cancelable 2016 $ 3,876 2017 2,625 2018 1,365 2019 808 2020 810 Thereafter 2,604 Total minimum lease payments $ 12,088 |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | 15. LITIGATION In connection with its business, the Company is from time to time involved in various legal actions. The litigation process is inherently uncertain and it is possible that the resolution of such matters might have a material adverse effect upon the financial condition and/or results of operations of the Company. However, in the opinion of the Company’s management, matters currently pending or threatened against the Company are not expected to have a material adverse effect on the financial position or results of operations of the Company. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 16. RELATED PARTY TRANSACTIONS During the three months ended June 30, 2015, the Company’s CEO, Robert A. Frist, Jr., entered into an agreement with the Company pursuant to which he contributed 54,241 of his personally owned shares of HealthStream, Inc. common stock to the Company, without any consideration paid to him. In connection with this contribution, the Company approved the grant of 49,310 shares of common stock to over 600 employees, with a fair market value of approximately $1.5 million. Mr. Frist contributed 4,931 of the contributed shares noted above to take into account the estimated Company costs, such as administrative expenses and employer payroll taxes associated with the grants. (See Note 11). |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | 17. SUBSEQUENT EVENTS In February 2016, the Board of Directors authorized a share repurchase program for up to $25 million of the Company’s outstanding common stock. Repurchases will be made under the repurchase program in accordance with applicable securities laws and may be made at management’s discretion from time to time in the open market, through privately negotiated transactions, or otherwise. The share repurchase program will terminate on the earlier of December 31, 2016 or when the maximum dollar amount has been expended. The share repurchase program may be suspended or discontinued at any time. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Reporting Entity and Segments | Reporting Entity and Segments HealthStream, Inc. (the “Company”) was incorporated in 1990 as a Tennessee corporation and is headquartered in Nashville, Tennessee. The Company operates in three segments: HealthStream Workforce Solutions, HealthStream Patient Experience Solutions, and HealthStream Provider Solutions. Workforce Solutions products consist of SaaS-based services and subscription-based solutions to meet the ongoing training, certification, assessment and development needs of the healthcare community. These solutions provide, deliver and track computer based education for our customers in the United States through our software-as-a-service (SaaS) model. Patient Experience products offer healthcare organizations a wide range of quality and satisfaction surveys, consulting services, analyses of survey results, and other research-based services. Provider Solutions products offer healthcare organizations software applications for administering and tracking provider credentialing, privileging, call center and enrollment. |
Change in Goodwill Impairment Testing Date | Change in Goodwill Impairment Testing Date During the quarter ended December 31, 2015, the Company voluntarily changed its annual goodwill impairment testing date from December 31 to October 1 of each year. This change provides additional time for the completion of the annual goodwill impairment testing prior to the end of the annual reporting period and results in further alignment with the Company’s annual strategic planning process. Accordingly, management considers this accounting change preferable. The Company is unable to objectively determine, without the use of hindsight, the assumptions that would have been used in earlier periods. Therefore, the change will be applied prospectively as retrospective application to prior periods is deemed impracticable. This change does not result in the delay, acceleration or avoidance of any potential impairment charge. |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards The Company has adopted the provisions of Accounting Standards Update (ASU) 2015-17 — Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes |
Recognition of Revenue | Recognition of Revenue Revenues are derived from providing services through our SaaS-based workforce development platform products, courseware subscriptions, provision of survey and research services, sales of software licensing arrangements, software maintenance and support, professional services, custom courseware development and other education and training services. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when persuasive evidence of an arrangement exists, prices are fixed or determinable, services and products are provided to the customer and collectability is probable or reasonably assured. Revenue recognized from software and other arrangements is allocated to each element of the arrangement based on the relative fair values of the elements. While elements include software products and post contract customer support, the fair value of each element is based on vendor specific objective evidence (VSOE). If fair value cannot be determined for each element of the arrangement, all revenue from the arrangement is deferred until fair value can be determined or until all elements of the arrangement are delivered and customer acceptance has occurred. Sales of the Company’s SaaS-based workforce development platform products include customer support, implementation services, and training; therefore all revenues are deferred until the SaaS-based product is implemented, at which time revenues are recognized ratably over the subscription service period. In the event that circumstances occur, which give rise to uncertainty regarding the collectibility of contracted amounts, revenue recognition is suspended until such uncertainty is resolved. Fees for these services are billed on either a monthly, quarterly, or annual basis. Revenues derived from the delivery of services through the Company’s SaaS-based workforce development platform products and courseware subscriptions are recognized ratably over the term of the subscription service agreement or over the historical usage period, if usage typically differs from the subscription period. Other training revenues are generally recognized upon the completion of training. Revenues derived from the license of installed software products are recognized upon shipment or installation of the software, when VSOE of the fair value of the software license can be established. Software support and maintenance revenues are recognized ratably over the term of the related agreement. Revenues recognized from the Company’s survey and research services are determined using both the proportional performance method and the completed contract method. Revenues are generally earned over the estimated survey cycle, which typically ranges from less than one month to up to five months. The survey cycle is generally initiated based on the receipt of the first survey response and runs through provision of related survey reports to the customer. If survey results are not available to the customer during the survey fielding cycle, revenues are recognized at time of report delivery. Revenues for coaching and consulting engagements are recognized using the proportional performance method over the term of the underlying contract. Fees for survey services are billed upon initiation of the survey cycle, with progress billings made throughout the survey cycle. Fees for coaching and consulting engagements are billed upon initiation of the engagement with progress billings throughout the term of the contract. Revenues from professional services and courseware development services are recognized upon the completion of performance milestones and deliverables using the proportional performance method. All other revenues are recognized as the related services are performed or products are delivered. Fees for these services are generally billed at project initiation and upon completion of various milestones. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. inter-company |
Use of Estimates | Use of Estimates The consolidated financial statements are prepared in accordance with U.S. generally accepted accounting principles. These accounting principles require management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates and such differences could be material to the consolidated financial statements. |
Cash Equivalents | Cash Equivalents The Company considers cash equivalents to be unrestricted, highly liquid investments with initial maturities of less than three months. |
Marketable Securities | Marketable Securities Marketable securities are classified as available for sale and are stated at fair market value, with the unrealized gains and losses, net of tax, reported in other comprehensive income (loss) on the accompanying consolidated balance sheets. Realized gains and losses and declines in market value judged to be other than temporary on investments in marketable securities are included in interest and other income on the accompanying consolidated statements of income. The cost of securities sold is based on the specific identification method. Interest and dividends on securities classified as available for sale are included in other income (expense) on the accompanying consolidated statements of income. Premiums and discounts are amortized over the life of the related available for sale security as an adjustment to yield using the effective interest method. |
Accounts Receivable-Unbilled | Accounts Receivable-Unbilled Accounts receivable-unbilled |
Deferred Revenue | Deferred Revenue Deferred revenue represents amounts that have been billed or collected in advance of revenue recognition. The Company typically invoices customers in quarterly, bi-annual, or annual installments, and occasionally customers will pay for multi-year contracts in advance. Deferred revenue is recognized as the revenue recognition criteria are met. |
Prepaid Royalties | Prepaid Royalties Prepaid royalties represents advance payments associated with the sale of third party products, such as courseware subscriptions. Royalties are typically paid in advance at the commencement of the revenue cycle, or periodically throughout the revenue cycle, such as quarterly, bi-annual, or annual installments. Royalty payments are amortized over the term of the underlying contracts, which generally range from 12 to 36 months, in order to match the direct royalty costs to the same period the subscription revenue is recognized. Amortization of royalties is included under the caption “cost of revenues (excluding depreciation and amortization)” in the accompanying consolidated statements of income. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company estimates its allowance for doubtful accounts using a specific identification method in which management considers the facts and circumstances surrounding each potentially uncollectible receivable. An allowance is also maintained for accounts that are not specifically identified that may become uncollectible in the future. Uncollectible receivables are written-off in the period management believes it has exhausted every opportunity to collect payment from the customer. Bad debt expense is recorded when events or circumstances indicate an additional allowance is required based on the Company’s specific identification approach. Changes in the allowance for doubtful accounts and the amounts charged to bad debt expense for the years ended December 31, were as follows (in thousands): Allowance Balance at Charged to Costs and Write-offs Allowance Balance at 2015 $ 331 $ 284 $ (312 ) $ 303 2014 $ 211 $ 237 $ (117 ) $ 331 2013 $ 142 $ 115 $ (46 ) $ 211 |
Capitalized Software Development | Capitalized Software Development Capitalized software development is stated on the basis of cost, and is presented net of accumulated amortization. The Company capitalizes costs incurred during the software development phase for projects when such costs are material. These assets are amortized using the straight-line method, generally ranging between three to five years. The Company capitalized approximately $7.3 million and $5.7 million during 2015 and 2014, respectively. Amortization of capitalized software development was approximately $6.2 million and $4.3 million during 2015 and 2014, respectively. Maintenance and operating costs are expensed as incurred. As of December 31, 2015 and 2014, there were no capitalized internal development costs for computer software developed for resale. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants at the measurement date. The fair value hierarchy prioritizes the inputs to valuation techniques used in measuring fair value. There are three levels to the fair value hierarchy based on the reliability of inputs, as follows: Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 – Unobservable inputs in which little or no market data exists, therefore requiring the Company to develop its own assumptions. The Company evaluates assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level at which to classify them for each reporting period. This determination requires significant judgments to be made by the Company. At December 31, 2015 and 2014, our assets measured at fair value on a recurring basis consisted of marketable securities, which are classified as available for sale (see Note 4 – Marketable Securities). The Company did not have any financial liabilities that were subject to fair value measurements as of such dates. |
Property and Equipment | Property and Equipment Property and equipment are stated on the basis of cost. Depreciation and amortization are provided on the straight-line Years Furniture and fixtures 5-10 Equipment 3-5 |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess of purchase price in a business combination over the fair value of the net identifiable assets acquired. The carrying amount of our goodwill is evaluated for impairment at least annually during the fourth quarter and whenever events or changes in facts or circumstances indicate that impairment may exist. In accordance with ASC 350, Intangibles – Goodwill and Other As of December 31, 2015, intangible assets with remaining unamortized balances include contract rights and customer relationships, internally-developed technology and patents, non-competition agreements, and trade names. These intangible assets are considered to have definite useful lives and are being amortized on a straight line basis over periods typically ranging between three and fifteen years. The weighted average amortization period for definite lived intangible assets as of December 31, 2015 was 11.3 years. Intangible assets are reviewed for impairment whenever events or changes in facts or circumstances indicate that the carrying amount of the assets may not be recoverable. There were no impairments identified or recorded for the years ended December 31, 2015, 2014, or 2013. |
Long-Lived Assets | Long-Lived Long-lived assets to be held for use are reviewed for events or changes in facts and circumstances, both internally and externally, which may indicate that an impairment of long-lived long-lived |
Non-Marketable Equity Investments | Non-Marketable Equity Investments Non-marketable equity investments are accounted for using the equity method when the Company can exercise significant influence over the investee. Investments for which the Company is not able to exercise significant influence over the investee are accounted for under the cost method. The proportionate share of income or loss from equity method investments are recorded under the caption “other income, net” in the accompanying consolidated statements of income. |
Financial Instruments | Financial Instruments The Company has various financial instruments, including cash and cash equivalents, accounts receivable, accounts receivable-unbilled, accounts payable, accrued liabilities, and deferred revenue. The carrying amounts of these financial instruments approximate fair value because of the short term maturity or short term nature of such instruments. The Company also has marketable securities, which are recorded at approximate fair value based on quoted market prices or alternative pricing sources (see Note 4 – Marketable Securities). |
Advertising | Advertising The Company expenses the costs of advertising as incurred. Advertising expense for the years ended December 31, 2015, 2014, and 2013 was approximately $1.1 million, $0.7 million, and $0.4 million, respectively. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs that are associated with our products and services are included in cost of revenues. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method, whereby deferred tax assets and liabilities are determined based on the temporary differences between the financial statement and tax bases of assets and liabilities measured at tax rates that will be in effect for the year in which the differences are expected to affect taxable income. Management evaluates all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance is needed. Future realization of the tax benefit of an existing deductible temporary difference or carryforward ultimately depends on the existence of sufficient taxable income of the appropriate character within the carryback or carryforward period available under the tax law. There are four possible sources of taxable income that may be available under the tax law to realize a tax benefit for deductible temporary differences and carryforwards: 1) future reversals of existing taxable temporary differences, 2) future taxable income exclusive of reversing temporary differences and carryforwards, 3) taxable income in prior carryback year(s) if carryback is permitted under the tax law, and 4) tax-planning strategies that would, if necessary, be implemented to realize deductible temporary differences or carryforwards prior to their expiration. Management reviews the realizability of its deferred tax assets each reporting period to identify whether any significant changes in circumstances or assumptions have occurred that could materially affect the realizability of deferred tax assets. As of December 31, 2015, the Company had established a valuation allowance of $346,000 for the portion of its net deferred tax assets that are not more likely than not expected to be realized. The Company accounts for income tax uncertainties using a more-likely-than-not recognition threshold based on the technical merits of the tax position taken. Tax positions that meet the more-likely-than-not recognition threshold are measured in order to determine the tax benefit to be recognized in the financial statements. The Company expenses any penalties or interest associated with tax obligations as general and administrative expenses and interest expense, respectively. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing the net income available to common shareholders for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing the net income for the period by the weighted average number of common and common equivalent shares outstanding during the period. Common equivalent shares are composed of incremental common shares issuable upon the exercise of stock options and restricted share units subject to vesting. The dilutive effect of common equivalent shares is included in diluted earnings per share by application of the treasury stock method. Common equivalent shares that have an anti-dilutive effect on diluted net income per share have been excluded from the calculation of diluted weighted average shares outstanding for the years ended December 31, 2015, 2014, and 2013. |
Concentrations of Credit Risk and Significant Customers | Concentrations of Credit Risk and Significant Customers The Company’s credit risks relate primarily to cash and cash equivalents, marketable securities and accounts receivable. The Company places its temporary excess cash investments in high quality, short-term The Company sells its products and services to various companies in the healthcare industry that are located in the United States. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral from customers. An allowance for doubtful accounts is maintained for potentially uncollectible accounts receivable. The Company did not have any single customer representing over 10% of net revenues during 2015, 2014, or 2013. |
Stock Based Compensation | Stock Based Compensation As of December 31, 2015, the Company maintains two stock based compensation plans, which are described in Note 11. The Company accounts for stock based compensation using the fair-value based method for costs related to share-based payments, including stock options and restricted share units. The Company uses the Black Scholes option pricing model for calculating the fair value of option awards issued under its stock based compensation plan. The Company measures compensation cost of restricted share units based on the closing fair market value of the Company’s stock on the date of grant. Stock based compensation cost is measured at the grant date, based on the fair value of the award that is ultimately expected to vest, and is recognized as an expense over the requisite service period. The Company recognizes tax benefits from stock based compensation if an excess tax benefit is realized. Excess tax benefits are recorded as an increase to common stock when realized. |
Newly Issued Accounting Standards | Newly Issued Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue Recognition |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Changes in the Allowance for Doubtful Accounts and the Amounts Charged to Bad Debt Expense | Changes in the allowance for doubtful accounts and the amounts charged to bad debt expense for the years ended December 31, were as follows (in thousands): Allowance Balance at Charged to Costs and Write-offs Allowance Balance at 2015 $ 331 $ 284 $ (312 ) $ 303 2014 $ 211 $ 237 $ (117 ) $ 331 2013 $ 142 $ 115 $ (46 ) $ 211 |
Estimated Useful Lives of Property and Equipment | Years Furniture and fixtures 5-10 Equipment 3-5 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the three years ended December 31, 2015 (in thousands, except per share amounts): 2015 2014 2013 Numerator: Net income $ 8,621 $ 10,394 $ 8,418 Denominator: Weighted-average shares outstanding 30,057 27,570 26,853 Effect of dilutive shares 379 453 810 Weighted-average diluted shares 30,436 28,023 27,663 Basic earnings per share $ 0.29 $ 0.38 $ 0.31 Diluted earnings per share $ 0.28 $ 0.37 $ 0.30 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Fair Value of Available for Sale Marketable Securities | At December 31, 2015 and 2014, the fair value of marketable securities, which were all classified as available for sale, included the following (in thousands): December 31, 2015 Adjusted Cost Unrealized Unrealized Fair Value Level 2: Certificates of deposit $ 1,000 $ — $ — $ 1,000 Corporate debt securities 66,046 — (70 ) 65,976 Total $ 67,046 $ — $ (70 ) $ 66,976 December 31, 2014 Adjusted Cost Unrealized Unrealized Fair Value Level 2: Certificates of deposit $ 6,278 $ — $ — $ 6,278 Corporate debt securities 32,732 — (37 ) 32,695 Total $ 39,010 $ — $ (37 ) $ 38,973 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Summary of Purchase Price | A summary of the purchase price is as follows (in thousands): Cash paid at closing $ 81,379 Cash held in escrow 6,750 Total consideration paid $ 88,129 |
Summary of Preliminary Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair value of the assets acquired and liabilities assumed as of the date of acquisition (in thousands): Cash $ 54 Accounts receivable, net 3,052 Prepaid assets 546 Property and equipment 200 Deferred tax assets 2,523 Goodwill 41,618 Intangible assets 47,200 Accounts payable and accrued liabilities (1,085 ) Deferred revenue (5,979 ) Preliminary net assets acquired $ 88,129 |
Components of Identifiable Intangible Assets and Estimated Useful Lives | The following table sets forth the components of identifiable intangible assets and their estimated useful lives as of the acquisition date (in thousands): Preliminary Value Useful life Customer relationships $ 42,600 13 years Developed technology 3,700 5 years Trade names 900 6 years Total preliminary intangible assets subject to amortization $ 47,200 |
Summary of Unaudited Proforma Financial Information | The amounts of revenue and operating income (loss) of HLS included in the Company’s consolidated statements of income from the date of acquisition of March 16, 2015 to the period ending December 31, 2015 are as follows (in thousands): Total revenues $ 8,543 Operating loss $ (2,541 ) The following unaudited pro forma financial information summarizes the combined results of operations of the Company and HLS, which was significant for purposes of the unaudited pro forma financial information disclosure, as though the companies were combined as of January 1, 2014 (in thousands, except per share data): Year Ended December 31, 2015 2014 Total revenues $ 219,108 $ 182,548 Net income $ 13,551 $ 8,658 Basic earnings per share $ 0.45 $ 0.31 Diluted earnings per share $ 0.44 $ 0.31 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment consist of the following: December 31, 2015 2014 Equipment $ 23,057 $ 25,133 Leasehold improvements 4,435 5,860 Furniture and fixtures 4,338 4,554 Gross property and equipment 31,830 35,547 Accumulated depreciation and amortization (19,359 ) (26,105 ) Property and equipment, net $ 12,471 $ 9,442 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 are as follows (in thousands): Workforce Patient Provider Total Balance at January 1, 2015 $ 12,336 $ 24,154 $ 5,424 $ 41,914 Acquisition of HealthLine Systems, LLC — — 41,618 41,618 Disposal of long lived assets — — (459 ) (459 ) Balance at December 31, 2015 $ 12,336 $ 24,154 $ 46,583 $ 83,073 Workforce Patient Provider Total Balance at January 1, 2014 $ 6,168 $ 24,154 $ 5,424 $ 35,746 Acquisition of Health Care Compliance Strategies, Inc. 6,168 — — 6,168 Balance at December 31, 2014 $ 12,336 $ 24,154 $ 5,424 $ 41,914 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Identifiable Intangible Assets | Identifiable intangible assets are comprised of the following (in thousands): As of December 31, 2015 As of December 31, 2014 Gross Amount Accumulated Net Gross Amount Accumulated Net Customer related $ 55,571 $ (6,068 ) $ 49,503 $ 23,329 $ (11,880 ) $ 11,449 Other 9,080 (2,617 ) 6,463 5,300 (1,954 ) 3,346 Total $ 64,651 $ (8,685 ) $ 55,966 $ 28,629 $ (13,834 ) $ 14,795 |
Expected Annual Amortization Expense | The expected future annual amortization expense for the years ending December 31, is as follows (in thousands): 2016 $ 6,400 2017 6,323 2018 6,211 2019 5,566 2020 4,913 Thereafter 26,553 Total $ 55,966 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Business Segment Information Based on Net Revenues | The following is the Company’s business segment information as of and for the years ended December 31, 2015, 2014 and 2013 (in thousands). Revenues, net: 2015 2014 2013 Workforce $ 161,289 $ 134,242 $ 99,963 Patient Experience 34,193 31,901 28,454 Provider 13,520 4,547 3,857 Total revenues, net $ 209,002 $ 170,690 $ 132,274 |
Business Segment Information Based on Operating Income | Operating income: 2015 2014 2013 Workforce $ 39,986 $ 35,374 $ 28,203 Patient Experience 1,548 810 2,819 Provider (2,559 ) 826 277 Unallocated (25,418 ) (20,635 ) (16,633 ) Total operating income $ 13,557 $ 16,375 $ 14,666 |
Business Segment Information Based on Assets | Assets * Purchases of long-lived assets Depreciation and amortization 2015 2014 2013 2015 2014 2013 2015 2014 2013 Workforce $ 82,375 $ 81,116 $ 48,514 $ 11,403 $ 7,179 $ 6,243 $ 6,693 $ 4,813 $ 2,829 Patient Experience 34,902 34,536 34,727 2,007 1,277 726 1,061 1,272 1,068 Provider 100,948 10,976 11,499 332 200 67 3,986 683 683 Unallocated 161,344 130,634 117,854 1,617 1,546 1,675 5,257 4,163 3,272 Total $ 379,569 $ 257,262 $ 212,594 $ 15,359 $ 10,202 $ 8,711 $ 16,997 $ 10,931 $ 7,852 * Segment assets include accounts and unbilled receivables, prepaid royalties, prepaid and other current assets, other assets, capitalized software development, certain property and equipment, and intangible assets. Cash and cash equivalents and marketable securities are not allocated to individual segments, and are included within Unallocated. A significant portion of property and equipment assets are included within Unallocated. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Provision (Benefit) for Income Taxes | The provision (benefit) for income taxes is comprised of the following (in thousands): Year Ended December 31, 2015 2014 2013 Current federal $ 3,608 $ 3,198 $ 2,474 Current state 1,098 1,605 1,444 Deferred federal 501 1,092 2,315 Deferred state (109 ) 232 191 Provision for income taxes $ 5,098 $ 6,127 $ 6,424 |
Reconciliation of Income Taxes at the Statutory Federal Income Tax Rate to the Provision for Income Taxes | A reconciliation of income taxes at the statutory federal income tax rate to the provision for income taxes included in the accompanying consolidated statements of income is as follows (in thousands): Year Ended December 31, 2015 2014 2013 Federal tax provision at the statutory rate $ 4,802 $ 5,782 $ 5,194 State income tax provision, net of federal benefit 673 1,350 898 Tax credits (425 ) (1,160 ) (54 ) Change in state valuation allowance (8 ) 37 231 Other 56 118 155 Provision for income taxes $ 5,098 $ 6,127 $ 6,424 |
Reconciliation of the Beginning and Ending liability for Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending liability for gross unrecognized tax benefits at December 31, 2015 and 2014, are as follows (in thousands): December 31, 2015 2014 Balance at beginning of year $ 2,168 $ 167 Additions for tax positions in the current year 351 2,168 Reductions for tax positions of prior years (1,861 ) (167 ) Balance at end of year $ 658 $ 2,168 |
Significant Components of Deferred Tax Assets and Deferred Tax Liabilities | Significant components of deferred tax assets and deferred tax liabilities are as follows (in thousands): December 31, 2015 2014 Deferred tax assets: Allowance for doubtful accounts $ 122 $ 134 Accrued liabilities 2,062 1,565 Tax credits 816 791 Stock based compensation 1,107 1,015 Deferred revenue 1,563 616 Depreciation 348 715 Basis difference on investments 80 — Net operating loss carryforwards 407 355 Total deferred tax assets 6,505 5,191 Less: Valuation allowance (346 ) (355 ) Deferred tax assets, net of valuation allowance 6,159 4,836 Deferred tax liabilities: Deductible goodwill 2,646 2,369 Nondeductible intangible assets 1,806 2,171 Prepaid assets 1,911 1,602 Capitalized software development 4,559 3,836 Basis difference on investments — 343 Total deferred tax liabilities 10,922 10,321 Net deferred tax liabilities $ (4,763 ) $ (5,485 ) |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Activity and Various Other Information Relative to Stock Options | A summary of activity and various other information relative to stock options for the year ended December 31, 2015 is presented in the tables below (in thousands, except exercise price). Common Shares Weighted- Average Exercise Price Aggregate Intrinsic Value Outstanding at beginning of period 596 $ 6.18 Granted — — Exercised (76 ) 4.29 Expired — — Forfeited — — Outstanding at end of period 520 $ 6.45 $ 8,081 Exercisable at end of period. 520 $ 6.45 $ 8,081 |
Other Information Relative to Option Activity | Other information relative to option activity during the three years ended December 31, 2015 is as follows (in thousands): 2015 2014 2013 Total grant date fair value of stock options vested $ 232 $ 630 $ 723 Total intrinsic value of stock options exercised $ 1,662 $ 5,912 $ 25,846 Cash proceeds from exercise of stock options $ 328 $ 1,094 $ 3,318 |
Summary of Activity Relative to RSU's | A summary of activity relative to RSUs for the year ended December 31, 2015 is follows (in thousands, except weighted average grant date fair value): Number of RSU’s Weighted- Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding at beginning of period 164 $ 25.04 Granted 110 24.97 Vested (54 ) 24.17 Forfeited (2 ) 26.03 Outstanding at end of period 218 $ 25.21 $ 4,793 |
Stock Based Compensation Expense Recorded in Consolidated Statements of Income | Total stock based compensation expense, which is recorded in our consolidated statements of income, recorded for the years ended December 31, is as follows (in thousands): Years Ended December 31, 2015 2014 2013 Cost of revenues (excluding depreciation and amortization) $ 824 $ 86 $ 81 Product development 569 201 144 Sales and marketing 547 224 175 Other general and administrative 1,340 1,114 1,058 Total stock based compensation expense $ 3,280 $ 1,625 $ 1,458 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Leases [Abstract] | |
Future Rental Payment Commitments under Non-Cancelable Operating Leases | Future rental payment commitments at December 31, 2015 under non-cancelable 2016 $ 3,876 2017 2,625 2018 1,365 2019 808 2020 810 Thereafter 2,604 Total minimum lease payments $ 12,088 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Additional Information (Detail) | Dec. 31, 2015USD ($)Plans | Dec. 31, 2015USD ($)SegmentSourcesofTaxableIncome | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) |
Business And Basis Of Presentation [Line Items] | ||||
Number of operating segments | Segment | 3 | |||
Maturity of unrestricted cash equivalent | Less than three months | |||
Capitalized software development amount | $ 7,265,000 | $ 5,658,000 | $ 4,267,000 | |
Amortization of capitalized software development | 6,200,000 | 4,300,000 | ||
Capitalized internal development costs for computer software developed for resale | $ 0 | 0 | 0 | |
Impairments identified or recorded | 0 | 0 | 0 | |
Impairments identified or recorded for long-lived assets | 0 | 0 | 0 | |
Advertising expense | $ 1,100,000 | 700,000 | $ 400,000 | |
Number of sources of taxable income | SourcesofTaxableIncome | 4 | |||
Valuation allowance | $ 346,000 | $ 346,000 | $ 355,000 | |
Concentration risk, customer | The Company did not have any single customer representing over 10% of net revenues during 2015, 2014, or 2013. | |||
Number of stock based compensation plans | Plans | 2 | |||
Minimum [Member] | ||||
Business And Basis Of Presentation [Line Items] | ||||
Revenues earned over the estimated survey cycle, period | 1 month | |||
Royalty payments amortization period | 12 months | |||
Assets amortized cost | 3 years | |||
Finite lived intangible assets amortization period | 3 years | |||
Maximum [Member] | ||||
Business And Basis Of Presentation [Line Items] | ||||
Revenues earned over the estimated survey cycle, period | 5 months | |||
Royalty payments amortization period | 36 months | |||
Assets amortized cost | 5 years | |||
Finite lived intangible assets amortization period | 15 years | |||
Weighted Average [Member] | ||||
Business And Basis Of Presentation [Line Items] | ||||
Finite lived intangible assets amortization period | 11 years 3 months 18 days |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Changes in the Allowance for Doubtful Accounts and the Amounts Charged to Bad Debt Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Allowance Balance at Beginning of Period | $ 331 | $ 211 | $ 142 |
Charged to Costs and Expenses | 284 | 237 | 115 |
Write-offs | (312) | (117) | (46) |
Allowance Balance at End of Period | $ 303 | $ 331 | $ 211 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 5 years |
Minimum [Member] | Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 3 years |
Maximum [Member] | Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 10 years |
Maximum [Member] | Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment useful life | 5 years |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | ||
Common stock, shares authorized | 75,000,000 | 75,000,000 |
Common stock, shares issued | 31,647,000 | 27,677,000 |
Common stock, shares outstanding | 31,647,000 | 27,677,000 |
Proceeds from issuance of common stock | $ 98,014 | |
Underwritten Public Offering [Member] | ||
Class of Stock [Line Items] | ||
Common stock, shares issued | 3,900,000 | |
Proceeds from issuance of common stock | $ 98,000 | |
Maximum [Member] | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized | 75,000,000 | |
Preferred stock, shares authorized | 10,000,000 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: | |||
Net income | $ 8,621 | $ 10,394 | $ 8,418 |
Denominator: | |||
Weighted-average shares outstanding | 30,057 | 27,570 | 26,853 |
Effect of dilutive shares | 379 | 453 | 810 |
Weighted-average diluted shares | 30,436 | 28,023 | 27,663 |
Basic earnings per share | $ 0.29 | $ 0.38 | $ 0.31 |
Diluted earnings per share | $ 0.28 | $ 0.37 | $ 0.30 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||
Total number of common equivalent shares excluded from the calculations of diluted earnings per share | 16,000 | 70,000 | 70,000 |
Marketable Securities - Fair Va
Marketable Securities - Fair Value of Available for Sale Marketable Securities (Detail) - Level 2 [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Adjusted Cost | $ 67,046 | $ 39,010 |
Available for sale securities, Unrealized Gains | 0 | 0 |
Available for sale securities, Unrealized Losses | (70) | (37) |
Available for sale securities, Fair Value | 66,976 | 38,973 |
Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Adjusted Cost | 1,000 | 6,278 |
Available for sale securities, Unrealized Gains | 0 | 0 |
Available for sale securities, Fair Value | 1,000 | 6,278 |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale securities, Adjusted Cost | 66,046 | 32,732 |
Available for sale securities, Unrealized Gains | 0 | 0 |
Available for sale securities, Unrealized Losses | (70) | (37) |
Available for sale securities, Fair Value | $ 65,976 | $ 32,695 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | 15 Months Ended | 24 Months Ended | |||
Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | |||||||
Weighted average amortization period for identifiable intangible assets | 12 years 2 months 12 days | ||||||
Purchase price allocation for goodwill | $ 83,073,000 | $ 83,073,000 | $ 41,914,000 | $ 35,746,000 | $ 41,914,000 | ||
Purchase price allocation for identifiable intangible assets | 47,200,000 | $ 47,200,000 | |||||
HealthLine Systems LLC [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition date of assets | Mar. 16, 2015 | ||||||
Consideration paid for acquisition in cash | $ 88,129,000 | ||||||
Transaction costs associated with the acquisition | $ 965,000 | 329,000 | $ 1,300,000 | ||||
Preliminary purchase price allocation measurement period | 1 year | ||||||
Net tangible assets include deferred revenue book value at acquisition date | 15,000,000 | $ 15,000,000 | |||||
Net tangible assets include deferred revenue estimated fair value | 5,979,000 | 5,979,000 | |||||
Decrease in preliminary fair value for accounts receivable | 115,000 | ||||||
Decrease in preliminary fair value for prepaid assets | 200,000 | ||||||
Decrease in preliminary fair value for accrued liabilities | 800,000 | ||||||
Write-down of deferred revenue | 9,000,000 | ||||||
Estimated indemnification asset | 300,000 | 300,000 | |||||
Contingent liability | 700,000 | 700,000 | |||||
Net income | 13,551,000 | 8,658,000 | |||||
Purchase price allocation for goodwill | 41,618,000 | 41,618,000 | |||||
Purchase price allocation for identifiable intangible assets | 47,200,000 | 47,200,000 | |||||
Purchase price allocation for net tangible assets | 200,000 | $ 200,000 | |||||
HealthLine Systems LLC [Member] | Fair Value Adjustment to Deferred Revenue[Member] | |||||||
Business Acquisition [Line Items] | |||||||
Net income | 4,200,000 | ||||||
Health Care Compliance Strategies, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition date of assets | Mar. 3, 2014 | ||||||
Consideration paid for acquisition in cash | $ 12,800,000 | ||||||
Transaction costs associated with the acquisition | $ 365,000 | $ 150,000 | $ 515,000 | ||||
Net tangible assets include deferred revenue book value at acquisition date | 3,200,000 | 3,200,000 | |||||
Net tangible assets include deferred revenue estimated fair value | 1,700,000 | 1,700,000 | |||||
Write-down of deferred revenue | $ 1,500,000 | ||||||
Consideration paid for acquisition in shares | 81,614 | ||||||
Payments related to achievement of certain performance milestones | $ 750,000 | ||||||
Contingent upon achievement of certain financial targets and business outcome, term | 1 year | ||||||
Purchase price allocation for goodwill | 6,200,000 | $ 6,200,000 | |||||
Purchase price allocation for identifiable intangible assets | 8,400,000 | 8,400,000 | |||||
Purchase price allocation for net tangible assets | 2,600,000 | 2,600,000 | |||||
Purchase price allocation for liabilities | 2,700,000 | 2,700,000 | |||||
Purchase price allocation for deferred tax assets | 625,000 | 625,000 | |||||
Accrual for contingent consideration | 600,000 | $ 600,000 | |||||
Baptist Leadership Group [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition date of assets | Sep. 9, 2013 | ||||||
Consideration paid for acquisition in cash | $ 7,400,000 | ||||||
Net tangible assets include deferred revenue book value at acquisition date | 508,000 | 508,000 | |||||
Net tangible assets include deferred revenue estimated fair value | 254,000 | 254,000 | |||||
Write-down of deferred revenue | $ 254,000 | ||||||
Consideration paid for acquisition in shares | 15,230 | ||||||
Purchase price allocation for goodwill | 6,300,000 | $ 6,300,000 | |||||
Purchase price allocation for identifiable intangible assets | 1,600,000 | 1,600,000 | |||||
Transaction related costs | 145,000 | 145,000 | |||||
Purchase price allocation for net tangible assets | $ 28,000 | $ 28,000 |
Business Combinations - Summary
Business Combinations - Summary of Purchase Price (Detail) - HealthLine Systems LLC [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | |
Total consideration paid | $ 88,129 |
Cash Paid at Closing [Member] | |
Business Acquisition [Line Items] | |
Total consideration paid | 81,379 |
Cash Held in Escrow [Member] | |
Business Acquisition [Line Items] | |
Total consideration paid | $ 6,750 |
Business Combinations - Summa46
Business Combinations - Summary of Preliminary Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||
Goodwill | $ 83,073 | $ 41,914 | $ 35,746 |
Intangible assets | 47,200 | ||
HealthLine Systems LLC [Member] | |||
Business Acquisition [Line Items] | |||
Cash | 54 | ||
Accounts receivable, net | 3,052 | ||
Prepaid assets | 546 | ||
Property and equipment | 200 | ||
Deferred tax assets | 2,523 | ||
Goodwill | 41,618 | ||
Intangible assets | 47,200 | ||
Accounts payable and accrued liabilities | (1,085) | ||
Deferred revenue | (5,979) | ||
Preliminary net assets acquired | $ 88,129 |
Business Combinations - Compone
Business Combinations - Components of Identifiable Intangible Assets and Estimated Useful Lives (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Preliminary intangible assets subject to amortization | $ 47,200 |
Estimated useful lives | 12 years 2 months 12 days |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Preliminary intangible assets subject to amortization | $ 42,600 |
Estimated useful lives | 13 years |
Developed Technology [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Preliminary intangible assets subject to amortization | $ 3,700 |
Estimated useful lives | 5 years |
Trade Names [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Preliminary intangible assets subject to amortization | $ 900 |
Estimated useful lives | 6 years |
Business Combinations - Summa48
Business Combinations - Summary of Unaudited Proforma Financial Information (Detail) - HealthLine Systems LLC [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 8,543 | |
Operating loss | (2,541) | |
Total revenues | 219,108 | $ 182,548 |
Net income | $ 13,551 | $ 8,658 |
Basic earnings per share | $ 0.45 | $ 0.31 |
Diluted earnings per share | $ 0.44 | $ 0.31 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 31,830 | $ 35,547 |
Accumulated depreciation and amortization | (19,359) | (26,105) |
Property and equipment, net | 12,471 | 9,442 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 23,057 | 25,133 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | 4,435 | 5,860 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property and equipment | $ 4,338 | $ 4,554 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation of property and equipment | $ 5.3 | $ 4.1 |
Goodwill - Changes in Carrying
Goodwill - Changes in Carrying Amount of Goodwill (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Line Items] | |||
Goodwill, beginning balance | $ 41,914,000 | $ 35,746,000 | |
Disposal of long lived assets | $ (459,000) | (459,000) | |
Goodwill, ending balance | 83,073,000 | 83,073,000 | 41,914,000 |
HealthLine Systems LLC [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquired | 41,618,000 | ||
Goodwill, ending balance | 41,618,000 | 41,618,000 | |
Health Care Compliance Strategies, Inc. [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquired | 6,168,000 | ||
Goodwill, ending balance | 6,200,000 | 6,200,000 | |
Workforce [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning balance | 12,336,000 | 6,168,000 | |
Goodwill, ending balance | 12,336,000 | 12,336,000 | 12,336,000 |
Workforce [Member] | Health Care Compliance Strategies, Inc. [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquired | 6,168,000 | ||
Patient Experience [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning balance | 24,154,000 | 24,154,000 | |
Goodwill, ending balance | 24,154,000 | 24,154,000 | 24,154,000 |
Provider [Member] | |||
Goodwill [Line Items] | |||
Goodwill, beginning balance | 5,424,000 | 5,424,000 | |
Disposal of long lived assets | (459,000) | ||
Goodwill, ending balance | $ 46,583,000 | 46,583,000 | $ 5,424,000 |
Provider [Member] | HealthLine Systems LLC [Member] | |||
Goodwill [Line Items] | |||
Goodwill acquired | $ 41,618,000 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Disposal of long lived assets | $ 459,000 | $ 459,000 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | $ 10.7 | $ 5.6 | $ 2.4 |
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of intangible assets | 3 years | ||
Minimum [Member] | Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of intangible assets | 5 years | ||
Minimum [Member] | Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of intangible assets | 3 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of intangible assets | 15 years | ||
Maximum [Member] | Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of intangible assets | 13 years | ||
Maximum [Member] | Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Estimated useful life of intangible assets | 9 years |
Intangible Assets - Identifiabl
Intangible Assets - Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | $ 64,651 | $ 28,629 |
Accumulated Amortization | (8,685) | (13,834) |
Total | 55,966 | 14,795 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 55,571 | 23,329 |
Accumulated Amortization | (6,068) | (11,880) |
Total | 49,503 | 11,449 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Amount | 9,080 | 5,300 |
Accumulated Amortization | (2,617) | (1,954) |
Total | $ 6,463 | $ 3,346 |
Intangible Assets - Expected An
Intangible Assets - Expected Annual Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2,016 | $ 6,400 | |
2,017 | 6,323 | |
2,018 | 6,211 | |
2,019 | 5,566 | |
2,020 | 4,913 | |
Thereafter | 26,553 | |
Total | $ 55,966 | $ 14,795 |
Business Segments - Business Se
Business Segments - Business Segment Information Based on Net Revenues and Operating Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues, net | |||
Revenues, net | $ 209,002 | $ 170,690 | $ 132,274 |
Operating income | |||
Operating income | 13,557 | 16,375 | 14,666 |
Operating Segments [Member] | Workforce [Member] | |||
Revenues, net | |||
Revenues, net | 161,289 | 134,242 | 99,963 |
Operating income | |||
Operating income | 39,986 | 35,374 | 28,203 |
Operating Segments [Member] | Patient Experience [Member] | |||
Revenues, net | |||
Revenues, net | 34,193 | 31,901 | 28,454 |
Operating income | |||
Operating income | 1,548 | 810 | 2,819 |
Operating Segments [Member] | Provider [Member] | |||
Revenues, net | |||
Revenues, net | 13,520 | 4,547 | 3,857 |
Operating income | |||
Operating income | (2,559) | 826 | 277 |
Unallocated [Member] | |||
Operating income | |||
Operating income | $ (25,418) | $ (20,635) | $ (16,633) |
Business Segments - Business 57
Business Segments - Business Segment Information Based on Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||
Total assets | $ 379,569 | $ 257,262 | $ 212,594 |
Purchases of long-lived assets | 15,359 | 10,202 | 8,711 |
Depreciation and amortization | 16,997 | 10,931 | 7,852 |
Operating Segments [Member] | Workforce [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 82,375 | 81,116 | 48,514 |
Purchases of long-lived assets | 11,403 | 7,179 | 6,243 |
Depreciation and amortization | 6,693 | 4,813 | 2,829 |
Operating Segments [Member] | Patient Experience [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 34,902 | 34,536 | 34,727 |
Purchases of long-lived assets | 2,007 | 1,277 | 726 |
Depreciation and amortization | 1,061 | 1,272 | 1,068 |
Operating Segments [Member] | Provider [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 100,948 | 10,976 | 11,499 |
Purchases of long-lived assets | 332 | 200 | 67 |
Depreciation and amortization | 3,986 | 683 | 683 |
Unallocated [Member] | |||
Segment Reporting Information [Line Items] | |||
Total assets | 161,344 | 130,634 | 117,854 |
Purchases of long-lived assets | 1,617 | 1,546 | 1,675 |
Depreciation and amortization | $ 5,257 | $ 4,163 | $ 3,272 |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Current federal | $ 3,608 | $ 3,198 | $ 2,474 |
Current state | 1,098 | 1,605 | 1,444 |
Deferred federal | 501 | 1,092 | 2,315 |
Deferred state | (109) | 232 | 191 |
Provision for income taxes | $ 5,098 | $ 6,127 | $ 6,424 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Taxes at the Statutory Federal Income Tax Rate to the Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal tax provision at the statutory rate | $ 4,802 | $ 5,782 | $ 5,194 |
State income tax provision, net of federal benefit | 673 | 1,350 | 898 |
Tax credits | (425) | (1,160) | (54) |
Change in state valuation allowance | (8) | 37 | 231 |
Other | 56 | 118 | 155 |
Provision for income taxes | $ 5,098 | $ 6,127 | $ 6,424 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes Disclosure [Line Items] | ||
Valuation allowance | $ 346,000 | $ 355,000 |
Research and development tax credit carryforward expiration year | Dec. 31, 2035 | |
Alternative minimum tax credit carryforward | $ 816,000 | |
Accrued interest and penalties | 14,000 | 125,000 |
Unrecognized tax benefits | 278,000 | $ 278,000 |
Decrease in unrecognized tax benefits | $ 300,000 | |
Earliest Tax Year [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Loss carryforwards will expire in years | Dec. 31, 2016 | |
Latest Tax Year [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Loss carryforwards will expire in years | Dec. 31, 2025 | |
Federal [Member] | Latest Tax Year [Member] | ||
Income Taxes Disclosure [Line Items] | ||
U.S. federal tax examinations for tax period | 2,015 | |
Federal [Member] | Tax Year 2012 [Member] | ||
Income Taxes Disclosure [Line Items] | ||
U.S. federal tax examinations for tax period | 2,012 | |
Federal [Member] | Tax Year 2013 [Member] | ||
Income Taxes Disclosure [Line Items] | ||
U.S. federal tax examinations for tax period | 2,013 | |
Federal [Member] | Tax Year 2014 [Member] | ||
Income Taxes Disclosure [Line Items] | ||
U.S. federal tax examinations for tax period | 2,014 | |
State [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Deferred tax benefit | $ 188,000 | |
Net operating loss carryforwards | 13,000,000 | |
Research and Development [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Research and development tax credit carryforward | $ 1,900,000 |
Income Taxes - Reconciliation61
Income Taxes - Reconciliation of the Beginning and Ending Liability for Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Balance at beginning of year | $ 2,168 | $ 167 |
Additions for tax positions in the current year | 351 | 2,168 |
Reductions for tax positions of prior years | (1,861) | (167) |
Balance at end of year | $ 658 | $ 2,168 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Deferred Tax Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Allowance for doubtful accounts | $ 122 | $ 134 |
Accrued liabilities | 2,062 | 1,565 |
Tax credits | 816 | 791 |
Stock based compensation | 1,107 | 1,015 |
Deferred revenue | 1,563 | 616 |
Depreciation | 348 | 715 |
Basis difference on investments | 80 | |
Net operating loss carryforwards | 407 | 355 |
Total deferred tax assets | 6,505 | 5,191 |
Less: Valuation allowance | (346) | (355) |
Deferred tax assets, net of valuation allowance | 6,159 | 4,836 |
Deferred tax liabilities: | ||
Deductible goodwill | 2,646 | 2,369 |
Nondeductible intangible assets | 1,806 | 2,171 |
Prepaid assets | 1,911 | 1,602 |
Capitalized software development | 4,559 | 3,836 |
Basis difference on investments | 343 | |
Total deferred tax liabilities | 10,922 | 10,321 |
Net deferred tax liabilities | $ (4,763) | $ (5,485) |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015Employeesshares | Jun. 30, 2015USD ($)Employeesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unissued common stock reserved for future stock option grants | shares | 487,000 | ||||
Closing stock price | $ / shares | $ 22 | ||||
Weighted average remaining contractual term of options, outstanding | 2 years 6 months | ||||
Weighted average remaining contractual term of options, exercisable | 2 years 6 months | ||||
Payments related to RSUs and stock options for the employees' tax obligations to taxing authorities | $ 756,000 | $ 161,000 | $ 164,000 | ||
Weighted average expense recognition period | 2 years 3 months 18 days | ||||
Excess tax benefits related to stock based awards | $ 3,000,000 | ||||
Stock based compensation expense | 3,280,000 | 1,625,000 | $ 1,458,000 | ||
RSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Aggregate fair value of RSU awards that vested | $ 1,400,000 | $ 1,100,000 | |||
Shares withheld for RSUs | shares | 8,922 | 5,327 | |||
Payments related to RSUs and stock options for the employees' tax obligations to taxing authorities | $ 230,000 | $ 161,000 | |||
Total unrecognized compensation expense related to non-vested stock options | $ 3,000,000 | ||||
Number of common shares granted to employees | shares | 110,000 | ||||
Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of employees eligible to receive common stock | Employees | 600 | ||||
Minimum eligible period of service required for the employees to receive common stock | 1 year | ||||
Stock based compensation expense | $ 1,500,000 | ||||
Common stock issued under stock plans, number of shares withheld | shares | 17,279 | ||||
Total payments to taxing authorities for stock awards | $ 526,000 | ||||
Chief Executive Officer [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common stock contributed | shares | 54,241 | ||||
Number of common shares granted to employees | shares | 49,310 | ||||
Number of employees eligible to receive common stock | Employees | 600 | ||||
Stock based compensation expense | $ 1,500,000 | ||||
Chief Executive Officer [Member] | Stock Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of common stock contributed | shares | 54,241 | ||||
Number of common shares granted to employees | shares | 49,310 | ||||
Maximum [Member] | RSUs [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period of the options and RSU's granted | 4 years | ||||
Maximum [Member] | Stock Options [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Term of options granted | 10 years |
Stock Based Compensation - Summ
Stock Based Compensation - Summary of Activity and Various Other Information Relative to Stock Options (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Outstanding at beginning of period, Common Shares | shares | 596 |
Granted, Common Shares | shares | 0 |
Exercised, Common Shares | shares | (76) |
Expired, Common Shares | shares | 0 |
Forfeited, Common Shares | shares | 0 |
Outstanding at end of period, Common Shares | shares | 520 |
Exercisable at end of period, Common Shares | shares | 520 |
Outstanding at beginning of period, Weighted-Average Exercise Price | $ / shares | $ 6.18 |
Granted, Weighted-Average Exercise Price | $ / shares | 0 |
Exercised, Weighted-Average Exercise Price | $ / shares | 4.29 |
Expired, Weighted-Average Exercise Price | $ / shares | 0 |
Forfeited, Weighted-Average Exercise Price | $ / shares | 0 |
Outstanding at end of period, Weighted-Average Exercise Price | $ / shares | 6.45 |
Exercisable at end of period, Weighted-Average Exercise Price | $ / shares | $ 6.45 |
Outstanding at end of period, Aggregate Intrinsic Value | $ | $ 8,081 |
Exercisable at end of period, Aggregate Intrinsic Value | $ | $ 8,081 |
Stock Based Compensation - Othe
Stock Based Compensation - Other Information Relative to Option Activity (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Total grant date fair value of stock options vested | $ 232 | $ 630 | $ 723 |
Total intrinsic value of stock options exercised | 1,662 | 5,912 | 25,846 |
Cash proceeds from exercise of stock options | $ 328 | $ 1,094 | $ 3,318 |
Stock Based Compensation - Su66
Stock Based Compensation - Summary of Activity Relative to RSU's (Detail) - RSUs [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Outstanding at beginning of period, shares | shares | 164 |
Granted | shares | 110 |
Vested | shares | (54) |
Forfeited | shares | (2) |
Outstanding at end of period, shares | shares | 218 |
Outstanding at beginning of period, Weighted-Average Grant Date Fair Value | $ / shares | $ 25.04 |
Granted, Weighted-Average Grant Date Fair Value | $ / shares | 24.97 |
Vested, Weighted-Average Grant Date Fair Value | $ / shares | 24.17 |
Forfeited, Weighted-Average Grant Date Fair Value | $ / shares | 26.03 |
Outstanding at end of period, Weighted-Average Grant Date Fair Value | $ / shares | $ 25.21 |
Aggregate intrinsic Value | $ | $ 4,793 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Based Compensation Expense Recorded in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation expense | $ 3,280 | $ 1,625 | $ 1,458 |
Cost of Revenues (Excluding Depreciation and Amortization) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation expense | 824 | 86 | 81 |
Product Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation expense | 569 | 201 | 144 |
Sales and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation expense | 547 | 224 | 175 |
Other General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total stock based compensation expense | $ 1,340 | $ 1,114 | $ 1,058 |
Employee Benefit Plan - Additio
Employee Benefit Plan - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Sale Of Subsidiary [Abstract] | ||
Employees minimum age eligibility to participate in plan | 21 years | |
Minimum number of days required to be eligible for participation in plan | 30 days | |
Defined contribution plan, employer matching contribution amount | $ 645,000 | $ 274,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | ||||
Debt outstanding | $ 0 | $ 0 | ||
Repayment of balances outstanding on the revolving credit facility | $ 28,000,000 | |||
SunTrust Bank [Member] | Maximum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee paid per annum | 0.30% | |||
SunTrust Bank [Member] | Minimum [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee paid per annum | 0.20% | |||
Revolving Credit Facility [Member] | SunTrust Bank [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Aggregate principal amount of loan agreement | $ 50,000,000 | |||
Maturity date of Loan agreement | Nov. 24, 2017 | |||
Maximum borrowing capacity under credit facility | $ 50,000,000 | |||
Increase in revolving credit facility | $ 25,000,000 | |||
Line of Credit Facility, Interest Rate During Period | 1.68% | |||
Interest rate under credit facility | The borrowings under the Revolving Credit Facility bear interest at either (1) a rate per annum equal to the highest of SunTrust’s prime rate or 0.5% in excess of the Federal Funds Rate or 1.0% in excess of one-month LIBOR (the “Base Rate”), plus an applicable margin, or (2) the one, two, three, or six-month per annum LIBOR for deposits in the applicable currency (the “Eurocurrency Rate”), as selected by the Company, plus an applicable margin. The applicable margin for Eurocurrency Rate loans depends on the Company’s funded debt leverage ratio and varies from 1.50% to 2.00%. The applicable margin for Base Rate loans depends on the Company’s funded debt leverage ratio and varies from 0.50% to 1.50% | |||
Principal payments prior to maturity | $ 0 | |||
Balances outstanding on the revolving credit facility | 0 | $ 28,000,000 | ||
Repayment of balances outstanding on the revolving credit facility | $ 28,000,000 | |||
Shares issued during period, public offering | 3,869,750 | |||
Revolving Credit Facility [Member] | SunTrust Bank [Member] | Swingline Sub Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity under credit facility | 5,000,000 | |||
Revolving Credit Facility [Member] | SunTrust Bank [Member] | Letter of Credit Subfacility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum borrowing capacity under credit facility | $ 5,000,000 | |||
Revolving Credit Facility [Member] | SunTrust Bank [Member] | Federal Funds Effective Swap Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Interest Rate During Period | 0.50% | |||
Revolving Credit Facility [Member] | SunTrust Bank [Member] | Base Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Interest Rate During Period | 1.00% | |||
Revolving Credit Facility [Member] | SunTrust Bank [Member] | Maximum [Member] | Base Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Applicable margin for loans | 1.50% | |||
Revolving Credit Facility [Member] | SunTrust Bank [Member] | Maximum [Member] | Eurodollar [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Applicable margin for loans | 2.00% | |||
Revolving Credit Facility [Member] | SunTrust Bank [Member] | Minimum [Member] | Base Rate [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Applicable margin for loans | 0.50% | |||
Revolving Credit Facility [Member] | SunTrust Bank [Member] | Minimum [Member] | Eurodollar [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Applicable margin for loans | 1.50% |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Leases [Abstract] | |||
Total rent expense under all operating leases | $ 4.3 | $ 3.1 | $ 2.4 |
Leases - Future Rental Payment
Leases - Future Rental Payment Commitments under Non-Cancelable Operating Leases (Detail) $ in Thousands | Dec. 31, 2015USD ($) |
Leases [Abstract] | |
2,016 | $ 3,876 |
2,017 | 2,625 |
2,018 | 1,365 |
2,019 | 808 |
2,020 | 810 |
Thereafter | 2,604 |
Total minimum lease payments | $ 12,088 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($)Employeesshares | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Related Party Transaction [Line Items] | ||||
Stock based compensation expense | $ | $ 3,280 | $ 1,625 | $ 1,458 | |
Chief Executive Officer [Member] | ||||
Related Party Transaction [Line Items] | ||||
Number of common stock contributed | 54,241 | |||
Number of common shares granted to employees | 49,310 | |||
Number of employees eligible to receive common stock | Employees | 600 | |||
Stock based compensation expense | $ | $ 1,500 | |||
Common stock unissued shares treated as expense | 4,931 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Feb. 29, 2016 | |
Subsequent Event [Line Items] | ||
Share repurchase program, termination date | Dec. 31, 2016 | |
Maximum [Member] | Common Stock [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Share repurchase program, authorized amount | $ 25,000,000 |