Qualys (QLYS) 10-Q 5 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 30, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	QUALYS, INC.
Entity Central Index Key	1,107,843
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		34,194,842

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 94,763	$ 76,504
Short-term investments	79,382	50,714
Accounts receivable, net of allowance of $622 and $590 as of September 30, 2015 and December 31, 2014, respectively	37,876	32,993
Deferred tax assets, current	4,353	8,520
Prepaid expenses and other current assets	8,947	6,528
Total current assets	225,321	175,259
Long-term investments	25,732	39,448
Property and equipment, net	29,965	26,618
Deferred tax assets, net	13,180	14,119
Intangible assets, net	1,708	2,001
Goodwill	317	317
Other noncurrent assets	2,065	2,262
Total assets	298,288	260,024
Current liabilities:
Accounts payable	2,055	5,661
Accrued liabilities	11,358	10,353
Deferred revenues, current	91,939	81,147
Total current liabilities	105,352	97,161
Deferred revenues, noncurrent	9,884	10,064
Other noncurrent liabilities	1,154	972
Total liabilities	$ 116,390	$ 108,197
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock, $0.001 par value; 20,000,000 shares authorized, no shares issued and outstanding at September 30, 2015 and December 31, 2014	$ 0	$ 0
Common stock, $0.001 par value; 1,000,000,000 shares authorized; 34,166,512 and 33,594,285 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	34	34
Additional paid-in capital	214,736	195,133
Accumulated other comprehensive income	37	10
Accumulated deficit	(32,909)	(43,350)
Total stockholders’ equity	181,898	151,827
Total liabilities and stockholders’ equity	$ 298,288	$ 260,024

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 622	$ 590
Preferred stock, par or stated value per share (USD per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par or stated value per share (USD per share)	$ 0.001	$ 0.001
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	34,166,512	33,594,285
Common stock, shares outstanding	34,166,512	33,594,285

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues
Revenues	$ 42,469	$ 34,348	$ 119,839	$ 97,006
Cost of revenues	8,762	7,421	24,883	21,442
Gross profit	33,707	26,927	94,956	75,564
Operating expenses:
Research and development	7,564	6,490	21,919	19,305
Sales and marketing	12,282	11,774	36,501	36,111
General and administrative	6,983	5,156	19,426	15,112
Total operating expenses	26,829	23,420	77,846	70,528
Income from operations	6,878	3,507	17,110	5,036
Other income (expense), net:
Interest expense	0	(2)	(4)	(9)
Interest income	153	127	386	365
Other income (expense), net	(307)	(244)	(485)	(422)
Total other income (expense), net	(154)	(119)	(103)	(66)
Income before income taxes	6,724	3,388	17,007	4,970
Provision for income taxes	2,601	283	6,566	639
Net income	$ 4,123	$ 3,105	$ 10,441	$ 4,331
Net income per share:
Basic (USD per share)	$ 0.12	$ 0.09	$ 0.31	$ 0.13
Diluted (USD per share)	$ 0.11	$ 0.08	$ 0.27	$ 0.12
Weighted average shares used in computing net income per share:
Basic (shares)	34,119	33,120	33,967	32,820
Diluted (shares)	37,938	37,080	38,202	37,006

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net income	$ 4,123	$ 3,105	$ 10,441	$ 4,331
Available-for-sale investments:
Change in net unrealized gain (loss) on investments, net of tax	15	(44)	25	(11)
Less: reclassification adjustment for net realized gain (loss) included in net income	(5)	(27)	2	(28)
Net change, net of tax	10	(71)	27	(39)
Other comprehensive income (loss), net	10	(71)	27	(39)
Comprehensive income	$ 4,133	$ 3,034	$ 10,468	$ 4,292

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net income	$ 10,441	$ 4,331
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	10,424	8,826
Bad debt expense	629	346
Loss on disposal of property and equipment	9	1
Stock-based compensation	12,678	7,100
Amortization of premiums and accretion of discounts on investments	429	427
Excess tax benefits from stock-based compensation	(315)	(131)
Deferred income taxes	5,105	(47)
Changes in operating assets and liabilities:
Accounts receivable	(5,512)	(2,042)
Prepaid expenses and other assets	(2,143)	(1,177)
Accounts payable	(3,606)	(32)
Accrued liabilities	2,735	236
Deferred revenues	10,612	6,907
Other noncurrent liabilities	182	117
Net cash provided by operating activities	41,668	24,862
Cash flows from investing activities:
Purchases of investments	(88,694)	(117,279)
Sales and maturities of investments	73,340	144,218
Purchases of property and equipment	(14,865)	(10,196)
Capitalized software development costs	(99)	0
Net cash provided by (used in) investing activities	(30,318)	16,743
Cash flows from financing activities:
Proceeds from exercise of stock options	6,594	5,012
Excess tax benefits from stock-based compensation	315	131
Principal payments under capital lease obligations	0	(805)
Net cash provided by financing activities	6,909	4,338
Effect of exchange rate changes on cash and cash equivalents	0	(27)
Net increase in cash and cash equivalents	18,259	45,916
Cash and cash equivalents at beginning of period	76,504	42,369
Cash and cash equivalents at end of period	94,763	88,285
Non-cash investing and financing activities:
Vesting of early exercised common stock options	$ 16	$ 41

The Company and Summary of Sign

The Company and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
The Company and Summary of Significant Accounting Policies	The Company and Summary of Significant Accounting Policies Description of Business Qualys, Inc. (the “Company”) was incorporated in the state of Delaware on December 30, 1999. The Company is headquartered in Redwood City, California and has majority-owned subsidiaries throughout the world. The Company is a pioneer and leading provider of cloud-based security and compliance solutions that enable organizations to identify security risks to their IT infrastructures, help protect their IT systems and applications from ever-evolving cyber-attacks and achieve compliance with internal policies and external regulations. The Company’s cloud solutions address the growing security and compliance complexities and risks that are amplified by the dissolving boundaries between internal and external IT infrastructures and web environments, the rapid adoption of cloud computing and the proliferation of geographically dispersed IT assets. Organizations can use the Company’s integrated suite of solutions delivered on its QualysGuard Cloud Platform to cost-effectively obtain a unified view of their security and compliance posture across globally-distributed IT infrastructures. Basis of Presentation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared by the Company in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information as well as the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of December 31, 2014 , included herein, was derived from the audited financial statements as of that date but does not include all disclosures, including notes required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. The results of operations for the three and nine month periods ended September 30, 2015 are not necessarily indicative of the results of operations expected for the entire year ending December 31, 2015 or for any other future annual or interim period. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 6, 2015. Certain prior year amounts related to income taxes have been reclassified to conform to the current year presentation. These reclassifications did not change previously reported total assets, liabilities, stockholders' equity, income from operations or net income. Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation. Correction of Immaterial Error During the fourth quarter of 2014, the Company identified an immaterial error in the financial statements of its foreign subsidiaries reporting in the applicable local foreign currencies as their functional currencies, resulting in translation adjustments included as a component of accumulated other comprehensive income (loss) in stockholders' equity. It was determined that the functional currency for the Company's local subsidiaries should be the U.S. dollar. Accordingly, remeasurement gains and losses on monetary assets and liabilities denominated in foreign currencies should be recorded to foreign exchange gains and losses in other income (expense) in the condensed consolidated statements of operations in accordance with GAAP. The Company reviewed the accounting error utilizing SEC Staff Accounting Bulletin No. 99, “Materiality” and SEC Staff Accounting Bulletin No. 108, “Effects of Prior Year Misstatements on Current Year Financial Statements.” Management evaluated the materiality of this error from a qualitative and quantitative perspective and determined the impact of the errors did not have a material impact on any individual prior period presentation or affect the trend of financial results. However, because the adjustment to correct the cumulative error on the consolidated balance sheets and statements of stockholders' equity would have had a material effect to the Company's consolidated statements of operations for the year ended December 31, 2014, the Company revised its previously reported financial statements for the 2012 and 2013 annual periods in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 6, 2015, to reflect the impact of the immaterial errors that had been corrected . The following table summarizes the correction of previously reported amounts for the three and nine month periods ended September 30, 2014 presented in the accompanying condensed consolidated financial statements (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 as reported as adjusted as reported as adjusted Condensed Consolidated Statements of Operations: Other income (expense), net $ (141 ) $ (244 ) $ (279 ) $ (422 ) Total other income (expense), net (16 ) (119 ) 77 (66 ) Net income 3,208 3,105 4,474 4,331 Net income per share: Basic 0.10 0.09 0.14 0.13 Diluted 0.09 0.08 0.12 0.12 Condensed Consolidated Statements of Comprehensive Income: Change in foreign currency translation loss, net of tax (101 ) — (142 ) — Comprehensive income 3,034 3,034 4,292 4,292 Nine Months Ended September 30, 2014 as reported as adjusted Condensed Consolidated Statements of Cash Flows: Net cash provided by operating activities $ 25,085 $ 24,862 Net cash provided by investing activities 16,687 16,743 Effect of exchange rate changes on cash and cash equivalents (228 ) (27 ) Net increase in cash and cash equivalents 45,916 45,916 Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported results of operations during the reporting period. The Company’s management regularly assesses these estimates, which primarily affect revenue recognition, the valuation of accounts receivable, goodwill and intangible assets, stock-based compensation and the provision for income taxes. Actual results could differ from those estimates and such differences may be material to the accompanying condensed consolidated financial statements. Concentration of Credit Risk The Company invests its cash and cash equivalents with major financial institutions. Cash balances with any one institution at times may be in excess of federally insured limits. Cash equivalents are invested in high-quality investment grade financial instruments and are diversified. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk. Credit risk with respect to accounts receivable is dispersed due to the large number of customers. Collateral is not required for accounts receivable. The Company maintains an allowance for potential credit losses based upon the expected collectability of accounts receivable. The Company writes off its receivables once collection efforts are unsuccessful. One channel partner accounted for more than 10% of the Company's accounts receivable balance as of September 30, 2015 . As of December 31, 2014 , no customer or channel partner accounted for more than 10% of the Company's accounts receivable balance. Cash, Cash Equivalents, Short-Term and Long-Term Investments Cash and cash equivalents include cash held in banks, highly liquid money market funds, commercial paper and fixed-income U.S. government agency securities, all with original maturities of three months or less when acquired. The Company’s investments consist of fixed-income U.S. government agency securities, corporate bonds, asset-backed securities, and commercial paper. Management determines the appropriate classification of the Company's investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company classifies its investments as either short-term or long-term based on each instrument's underlying contractual maturity date. Cash equivalents are stated at cost, which approximates fair market value. Short-term and long-term investments are classified as available-for-sale and are carried at fair value. Unrealized gains and losses in fair value are reported in other comprehensive income (loss). When the available-for-sale securities are sold, cost is based on the specific identification method, and the realized gains and losses are included in other income (expense) in the condensed consolidated statements of operations. Short-term and long-term investments are reviewed quarterly for impairment that is deemed to be other-than-temporary. An investment is considered other-than-temporarily impaired when its fair value is below its amortized cost and (1) there is an intent to sell the security, (2) it is “more likely than not” that the security will be sold before recovery of its amortized cost basis or (3) the present value of expected cash flows from the investment is not expected to recover the entire amortized cost basis. Declines in value that are considered to be other-than-temporary and adjustments to amortized cost for the amortization of premiums and the accretion of discounts are recorded in other income (expense). Interest and dividends are recorded in interest income as earned. Software Development Costs The Company capitalizes qualifying software costs developed or obtained for internal use. These costs generally include internal costs, such as payroll and benefits of those employees directly associated with the development of the software, and other consulting expenses. Total capitalized development costs are $0.4 million at September 30, 2015 and December 31, 2014. Recent Accounting Pronouncements Under the Jumpstart Our Business Startups Act (the "JOBS Act"), the Company meets the definition of an “emerging growth company.” The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required from non-emerging growth companies. In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update (“ASU”) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued an ASU to defer the effective date of ASU 2014-09 for all entities by one year. Thus, ASU 2014-09 will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, but entities will be permitted to early adopt the standard only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized on date of adoption. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In January 2015, the FASB issued an ASU eliminating from U.S. GAAP the concept of extraordinary items, which required that an entity separately classify, present, and disclose extraordinary events and transactions. T he guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of this ASU to be material to their consolidated financial statements. In April 2015, the FASB issued an ASU amending existing guidance which clarifies that software licenses contained in a cloud computing arrangement should be capitalized if the customer has the right to take possession of the software and the ability to run the software outside of the cloud computing arrangement. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract under existing guidelines. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For certain of the Company’s financial instruments, including certain cash equivalents, accounts receivable, accounts payable, and other current liabilities, the carrying amounts approximate their fair values due to the relatively short maturity of these balances. The Company measures and reports certain cash equivalents, investments and derivative foreign currency forward contracts at fair value in accordance with the provisions of the authoritative accounting guidance that addresses fair value measurements. This guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows: Level 1 —Valuations based on quoted prices in active markets for identical assets or liabilities. Level 2 —Valuations based on other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3— Valuations based on inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The Company's financial instruments consist of assets and liabilities measured using Level 1 and 2 inputs. Level 1 assets include highly liquid money market funds, which are valued using unadjusted quoted prices that are available in an active market for an identical asset. Level 2 assets include fixed-income U.S. government agency securities, commercial paper, corporate bonds, asset-backed securities and derivative financial instruments consisting of foreign currency forward contracts. The securities, bonds and commercial paper are valued using prices from independent pricing services based on quoted prices in active markets for similar instruments or on industry models using data inputs such as interest rates and prices that can be directly observed or corroborated in active markets. The foreign currency forward contracts are valued usi ng observable inputs, such as quotations on forward foreign exchange points and foreign interest rates. The Company's cash and cash equivalents, short-term investments, and long-term investments consist of the following: September 30, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Cash and cash equivalents: Cash $ 48,907 $ — $ — $ 48,907 Money market funds 3,612 — — 3,612 U.S. government agencies 2,400 — — 2,400 Commercial paper 39,841 3 — 39,844 Total 94,760 3 — 94,763 Short-term investments: Commercial paper 24,579 9 — 24,588 Corporate bonds 12,561 2 (3 ) 12,560 Asset-backed securities 537 — — 537 U.S. government agencies 41,675 22 — 41,697 Total 79,352 33 (3 ) 79,382 Long-term investments: Asset-backed securities 6,405 — (1 ) 6,404 U.S. government agencies 12,461 9 (2 ) 12,468 Corporate bonds 6,862 1 (3 ) 6,860 Total 25,728 10 (6 ) 25,732 Total $ 199,840 $ 46 $ (9 ) $ 199,877 December 31, 2014 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Cash and cash equivalents: Cash $ 36,024 $ — $ — $ 36,024 Money market funds 39,180 — — 39,180 U.S. government agencies 300 — — 300 Commercial paper 1,000 — — 1,000 Total 76,504 — — 76,504 Short-term investments: Commercial paper 4,998 1 — 4,999 Corporate bonds 12,438 6 (6 ) 12,438 U.S. government agencies 33,280 3 (6 ) 33,277 Total 50,716 10 (12 ) 50,714 Long-term investments: Asset-backed securities 16,092 5 (3 ) 16,094 U.S. government agencies 20,243 22 (10 ) 20,255 Corporate bonds 3,101 — (2 ) 3,099 Total 39,436 27 (15 ) 39,448 Total $ 166,656 $ 37 $ (27 ) $ 166,666 The following table sets forth by level within the fair value hierarchy the fair value of the Company's available-for-sale securities measured on a recurring basis, excluding cash and money market funds: September 30, 2015 Level 1 Level 2 Level 3 Fair Value (in thousands) Commercial paper $ — $ 64,432 $ — $ 64,432 U.S. government agencies — 56,565 — 56,565 Corporate bonds — 19,420 — 19,420 Asset-backed securities — 6,941 — 6,941 Total $ — $ 147,358 $ — $ 147,358 December 31, 2014 Level 1 Level 2 Level 3 Fair Value (in thousands) Commercial paper $ — $ 5,999 $ — $ 5,999 U.S. government agencies — 53,832 — 53,832 Corporate bonds — 15,537 — 15,537 Asset-backed securities — 16,094 — 16,094 Total $ — $ 91,462 $ — $ 91,462 There were no transfers between Level 1, Level 2 or Level 3 of the fair value hierarchy, as determined at the end of each reporting period. The following summarizes the fair value of securities classified as available-for-sale by contractual maturity: September 30, 2015 Mature within One Year After One Year through Two Years Over Two Years Fair Value (in thousands) Commercial paper $ 64,432 $ — $ — $ 64,432 U.S. government agencies 44,097 12,468 — 56,565 Corporate bonds 12,560 6,860 — 19,420 Asset-backed securities 537 4,203 2,201 6,941 Total $ 121,626 $ 23,531 $ 2,201 $ 147,358 December 31, 2014 Mature within One Year After One Year through Two Years Over Two Years Fair Value (in thousands) Commercial paper $ 5,999 $ — $ — $ 5,999 U.S. government agencies 33,577 20,255 — 53,832 Corporate bonds 12,438 3,099 — 15,537 Asset-backed securities — 7,327 8,767 16,094 Total $ 52,014 $ 30,681 $ 8,767 $ 91,462 Derivative Financial Instruments Derivative financial instruments are utilized by the Company to reduce foreign currency exchange risks. The Company uses foreign currency forward contracts to mitigate the impact of foreign currency fluctuations of certain non-U.S. dollar denominated asset positions, primarily cash and accounts receivable. These contracts are recorded within prepaid expenses and other current assets or accrued liabilities in the condensed consolidated balance sheets. Gains and losses resulting from currency exchange rate movements on these forward contracts are recognized in other income (expense) in the accompanying condensed consolidated statements of operations in the period in which the exchange rates change and offset the foreign currency gains and losses on the underlying exposure being hedged. The Company does not enter into derivative financial instruments for trading or speculative purposes. At September 30, 2015 , the Company had two outstanding forward contrac ts with notional amounts of 4.6 million Euros and 3.2 million British Pounds, which expired on October 31, 2015 . At December 31, 2014 , the Company had two outstanding forward contracts with notional amounts of 6.0 million Euros and 2.1 million British Pounds, which expired on January 31, 2015 . These forward contracts were entered into at the end of each month, and thus the fair value of these contracts was $0 at September 30, 2015 and December 31, 2014 . The Company recorded a gain of $0.1 million from these forward contracts, which was offset by other foreign currency transaction losses of $0.4 million for the three months ended September 30, 2015 . The Company recorded a net gain of $0.5 million , which was more than offset by other foreign currency transaction losses of $0.9 million during the nine months ended September 30, 2015 . For the three months ended September 30, 2014 , the Company recorded a gain of $0.5 million from these contracts, which were more than offset by other foreign currency losses of $0.8 million . For the nine months ended September 30, 2014 , the Company recorded a gain of $0.4 million from these forward contracts, which were more than offset by losses of $0.7 million in other foreign currency transactions. These derivatives did not meet the criteria to be designated as hedges. These instruments were valued using Level 2 inputs.

Property and Equipment, Net

Property and Equipment, Net	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net Property and equipment consists of the following: September 30, December 31, 2015 2014 (in thousands) Computer equipment $ 44,979 $ 35,576 Computer software 12,524 10,899 Furniture, fixtures and equipment 2,831 2,931 Scanner appliances 21,380 19,861 Leasehold improvements 2,706 2,622 Total property and equipment 84,420 71,889 Less: accumulated depreciation and amortization (54,455 ) (45,271 ) Property and equipment, net $ 29,965 $ 26,618 Physical scanner appliances and other computer equipment that are or will be subject to subscriptions by customers have a net carrying value of $8.2 million and $6.0 million at September 30, 2015 and December 31, 2014 , respectively, including assets that have not been placed in service of $0.9 million and $1.4 million, respectively. Other fixed assets not placed in service at September 30, 2015 and December 31, 2014 , included in computer equipment and leasehold improvements, are approximately $1.7 million and $2.8 million, respectively. Depreciation and amortization expense relating to property and equipment was $3.7 million and $2.9 million for the three months ended September 30, 2015 and 2014 , respectively and $10.1 million and $8.5 million for the nine months ended September 30, 2015 and 2014, respectively.

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Net	Goodwill and Intangible Assets, Net Intangible assets consist primarily of existing technology, patent license and non-competition agreements acquired in business combinations. Acquired intangibles are amortized on a straight-line basis over the respective estimated useful lives of the assets. The carrying values of intangible assets are as follows (in thousands): September 30, 2015 December 31, 2014 Estimated Lives Cost Accumulated Amortization Net Book Value Accumulated Amortization Net Book Value Existing technology 7 years $ 1,910 $ (1,388 ) $ 522 $ (1,183 ) $ 727 Patent license 14 years 1,388 (497 ) 891 (422 ) 966 Non-competition agreements and other 3 years 171 (171 ) — (158 ) 13 Total intangibles subject to amortization $ 3,469 $ (2,056 ) 1,413 $ (1,763 ) 1,706 Intangible assets not subject to amortization 295 295 Total intangible assets, net $ 1,708 $ 2,001 Intangibles amortization expense was $0.1 million for the three months ended September 30, 2015 and 2014 and $0.3 million for the nine months ended September 30, 2015 and 2014 . As of September 30, 2015 , the Company expects amortization expense in future periods to be as follows (in thousands): Remainder of 2015 $ 93 2016 373 2017 282 2018 100 2019 100 2020 and thereafter 465 Total expected future amortization expense $ 1,413 Goodwill, which is not subject to amortization, totaled $0.3 million as of September 30, 2015 and December 31, 2014 .

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Leases The Company leases certain computer equipment and its corporate office and data center facilities under noncancellable operating leases for varying periods through 2019. The following are the minimum annual lease payments due under operating leases at September 30, 2015 : Operating Leases (in thousands) Remainder of 2015 $ 1,143 2016 3,577 2017 2,052 2018 601 2019 201 Total minimum lease payments $ 7,574 Rent expense was $1.6 million for each of the three months ended September 30, 2015 and 2014 , and $4.8 million and $4.6 million for the nine months ended September 30, 2015 and 2014, respectively. Although certain of the operating lease agreements provide for escalating rent payments over the terms of the leases, rent expense under these agreements is recognized on a straight-line basis. As of September 30, 2015 and December 31, 2014 , the Company has accrued $0.6 million and $0.5 million of deferred rent, respectively, related to these agreements, which is reflected in accrued liabilities and other noncurrent liabilities in the accompanying condensed consolidated balance sheets. In October 2015, the Company entered into a new five -year office lease, which has a total minimum lease commitment of approximately $1.7 million . Sales and Other Taxes The Company’s software-as-a-service solutions are subject to sales and other taxes in certain jurisdictions where the Company does business. The Company bills sales and other taxes to customers and remits these amounts to the respective government authorities. For those jurisdictions where the Company has not yet billed sales tax to its customers and believes it is probable it may have exposure and can reasonably estimate such exposure, it has recorded a liability of $0.4 million and $0.5 million at September 30, 2015 and December 31, 2014 , respectively, which is recorded within accrued liabilities in the condensed consolidated balance sheets. However, taxing jurisdictions have differing rules and regulations, which are subject to varying interpretations that may change over time. Other than the liability that the Company has accrued in its condensed consolidated balance sheets, the Company has been unable to assess the probability, or estimate the amount, of its sales tax exposure, if any. There are no pending reviews at September 30, 2015 of which the outcome is expected to result in sales and other taxes due in excess of accrued liabilities. Management does not anticipate that its sales tax exposure, if any, would have a material adverse effect on the financial position, results of operations or cash flows of the Company. Indemnifications The Company from time to time enters into certain types of contracts that contingently require it to indemnify various parties against claims from third parties. These contracts primarily relate to (i) the Company's by-laws, under which it must indemnify directors and executive officers, and may indemnify other officers and employees, for liabilities arising out of their relationship, (ii) contracts under which the Company must indemnify directors and certain officers for liabilities arising out of their relationship, and (iii) contracts under which the Company may be required to indemnify customers or resellers from certain liabilities arising from potential infringement of intellectual property rights, as well as potential damages caused by limited product defects. To date, the Company has not incurred and has not recorded any liability in connection with such indemnifications. The Company maintains director and officer insurance, which may cover certain liabilities arising from its obligation to indemnify its directors. Contingencies From time to time, the Company may have certain contingent liabilities that arise in the ordinary course of its business activities. The Company accrues a liability for such matters when it is probable a loss has been incurred and such loss can be reasonably estimated. At September 30, 2015 , the Company has not recorded any material liabilities in accordance with accounting for contingencies.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation	Stock-based Compensation Equity Incentive Plans 2012 Equity Incentive Plan Under the 2012 Equity Incentive Plan (the "2012 Plan"), the Company is authorized to grant to eligible participants incentive stock options (“ISOs”), non-statutory stock options (“NSOs”), stock appreciation rights ("SARs"), restricted stock awards ("RSAs"), restricted stock units ("RSUs"), performance units and performance shares equivalent to up to 6,348,478 shares of common stock. Options may be granted with an exercise price that is at least equal to the fair market value of the Company's stock at the date of grant and are exercisable when vested. As of September 30, 2015 , 1,848,947 shares were available for grant under the 2012 Plan. 2000 Equity Incentive Plan Under the 2000 Equity Incentive Plan (the "2000 Plan"), the Company was authorized to grant to eligible participants either ISOs or NSOs. The 2000 Plan was terminated in connection with the closing of the initial public offering ("IPO"), and accordingly, no shares are currently available for issuance under the 2000 Plan. The 2000 Plan continues to govern outstanding awards granted thereunder. Stock Options Employee Stock-based Compensation Stock-based compensation for employee option awards is included in the condensed consolidated statements of operations as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (in thousands) Cost of revenues $ 333 $ 175 $ 1,005 $ 482 Research and development 1,294 599 3,584 1,544 Sales and marketing 1,015 561 2,806 1,839 General and administrative 1,674 1,050 4,612 2,815 Total employee stock-based compensation $ 4,316 $ 2,385 $ 12,007 $ 6,680 Compensation cost is recognized on a straight-line basis over the service period. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. As of September 30, 2015 , the Company had $26.3 million of total unrecognized employee compensation cost related to unvested option awards that it expects to recognize over a weighted-average period of 2.2 years. The fair value of each option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model based on the following assumptions: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Expected term (in years) 4.9 to 5.9 5.3 to 5.9 4.9 to 5.9 5.3 to 5.9 Volatility 45% to 46% 48% to 50% 45% to 48% 48% to 52% Risk-free interest rate 1.62% 1.67% 1.3% to 1.65% 1.52% to 1.67% Dividend yield —% —% —% —% The expected term of the options is based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on the U.S. Treasury rates at the date of grant with maturity dates approximately equal to the expected term at the grant date. Volatility is based on historical volatility of several public entities that are similar to the Company, as the Company does not have sufficient historical transactions in its own shares on which to base expected volatility. The Company has not historically declared any dividends and does not expect to in the future. Non-Employee Stock-based Compensation The Company records compensation representing the fair value of stock options granted to non-employees. Stock-based non-employee compensation expense was a reduction to expense of $0.1 million and an expense of $0.1 million for the three months ended September 30, 2015 and 2014 , respectively, and expense of $0.5 million and $0.4 million , for the nine months ended September 30, 2015 and 2014 , respectively. Non-employee stock-based compensation is recognized over the vesting periods of the options. The value of options granted to non-employees is remeasured as they vest over a performance period. Stock Option Plan Activity A summary of the Company’s stock option activity is as follows: Outstanding Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) December 31, 2014 7,605,407 $ 12.93 6.5 $ 188,743 Granted 1,113,950 41.17 Exercised (567,227 ) 11.63 Canceled (560,025 ) 26.69 September 30, 2015 7,592,105 16.16 6.1 107,966 Vested and expected to vest - September 30, 2015 7,130,958 15.00 5.9 106,964 Exercisable - September 30, 2015 5,073,823 8.79 4.9 99,803 Restricted Stock Units and Restricted Stock Awards The terms and conditions of RSUs and RSAs, including vesting criteria and timing are set by the board of directors. The cost of RSUs and RSAs is determined using the fair value of the Company’s common stock on the date of the grant. Compensation cost is recognized on a straight-line basis over the requisite service period of each grant. During the three months ended September 30, 2015 , the Company granted 60,000 units of restricted stock with a grant price of $37.28 per unit and monthly vesting over a 2 year period. Compensation expense was $0.2 million for the three months ended September 30, 2015. The Company did not issue restricted stock units in the nine months ended September 30, 2014 . During the nine months ended September 30, 2014 , the Company granted 2,401 shares of restricted stock, which vested immediately and had no further restrictions or service period, and resulted in compensation expense of $51,000 . The Company did not issue restricted stock awards during the nine months ended September 30, 2015 .

Other Income (Expense), Net

Other Income (Expense), Net	9 Months Ended
	Sep. 30, 2015
Other Income and Expenses [Abstract]
Other Income (Expense), Net	Other Income (Expense), Net Other income (expense), net consists of the following: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (in thousands) Foreign exchange gain (loss) $ (268 ) $ (217 ) $ (392 ) $ (342 ) Other income (expense) (39 ) (27 ) (93 ) (80 ) Other income (expense), net $ (307 ) $ (244 ) $ (485 ) $ (422 )

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recorded a tax provision of $6.6 million and $0.6 million for the nine months ended September 30, 2015 and 2014 , respectively. The increase in the tax provision recorded for the nine month period ended September 30, 2015 is primarily due to taxes on its U.S. federal income, as well as certain states and foreign jurisdictions, and changes to unrecognized tax benefits related to uncertain tax positions. Prior to the fourth quarter of 2014, the Company maintained a valuation allowance on its U.S. federal and state deferred tax assets, and its taxes were primarily related to taxes in its foreign jurisdictions and certain states in the U.S, as well as changes to unrecognized tax benefits related to uncertain tax positions. The Company's effective income tax rate was approximately 38.6 % in the nine months ended September 30, 2015 . As of September 30, 2015 , the Company had unrecognized tax benefits of $3.5 million , of which $2.2 million , if recognized, would favorably impact the Company's effective tax rate. As of December 31, 2014 , the Company had unrecognized tax benefits of $3.3 million , of which $2.1 million , if recognized, would favorably impact the Company's effective tax rate.

Segment Information and Informa

Segment Information and Information about Geographic Area	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment Information and Information about Geographic Area	Segment Information and Information about Geographic Area The Company operates in one segment. The Company’s chief operating decision maker is the Chairman, President and Chief Executive Officer, who makes operating decisions, assesses performance and allocates resources on a consolidated basis. All of the Company’s principal operations and decision-making functions are located in the United States. Revenues by geographic area, based on the location of the customer, are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (in thousands) United States $ 29,993 $ 24,038 $ 84,463 $ 67,948 Other 12,476 10,310 35,376 29,058 Total revenues $ 42,469 $ 34,348 $ 119,839 $ 97,006 Property and equipment, net, by geographic area, are as follows: September 30, December 31, 2015 2014 (in thousands) United States $ 25,028 $ 23,650 Other 4,937 2,968 Total property and equipment, net $ 29,965 $ 26,618

Net Income Per Share

Net Income Per Share	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share The computations for basic and diluted net income per share are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (in thousands, except per share data) Numerator: Net income $ 4,123 $ 3,105 $ 10,441 $ 4,331 Denominator: Weighted-average shares used in computing net income per share: Basic 34,119 33,120 33,967 32,820 Effect of potentially dilutive securities: Common stock options 3,819 3,960 4,235 4,186 Diluted 37,938 37,080 38,202 37,006 Net income per share: Basic $ 0.12 $ 0.09 $ 0.31 $ 0.13 Diluted $ 0.11 $ 0.08 $ 0.27 $ 0.12 Potentially dilutive securities not included in the calculation of diluted net income per share because doing so would be antidilutive are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (in thousands) Common stock options 1,889 1,813 1,409 1,483

The Company and Summary of Si17

The Company and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements and condensed footnotes have been prepared by the Company in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") for interim financial information as well as the instructions to Form 10-Q and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and note disclosures normally included in the financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The condensed consolidated balance sheet as of December 31, 2014 , included herein, was derived from the audited financial statements as of that date but does not include all disclosures, including notes required by U.S. GAAP. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. The results of operations for the three and nine month periods ended September 30, 2015 are not necessarily indicative of the results of operations expected for the entire year ending December 31, 2015 or for any other future annual or interim period. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 6, 2015.
Reclassification	Certain prior year amounts related to income taxes have been reclassified to conform to the current year presentation. These reclassifications did not change previously reported total assets, liabilities, stockholders' equity, income from operations or net income.
Principles of Consolidation	Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its majority-owned subsidiaries. All significant intercompany transactions and balances have been eliminated upon consolidation.
Correction of Immaterial Error	Correction of Immaterial Error During the fourth quarter of 2014, the Company identified an immaterial error in the financial statements of its foreign subsidiaries reporting in the applicable local foreign currencies as their functional currencies, resulting in translation adjustments included as a component of accumulated other comprehensive income (loss) in stockholders' equity. It was determined that the functional currency for the Company's local subsidiaries should be the U.S. dollar. Accordingly, remeasurement gains and losses on monetary assets and liabilities denominated in foreign currencies should be recorded to foreign exchange gains and losses in other income (expense) in the condensed consolidated statements of operations in accordance with GAAP. The Company reviewed the accounting error utilizing SEC Staff Accounting Bulletin No. 99, “Materiality” and SEC Staff Accounting Bulletin No. 108, “Effects of Prior Year Misstatements on Current Year Financial Statements.” Management evaluated the materiality of this error from a qualitative and quantitative perspective and determined the impact of the errors did not have a material impact on any individual prior period presentation or affect the trend of financial results. However, because the adjustment to correct the cumulative error on the consolidated balance sheets and statements of stockholders' equity would have had a material effect to the Company's consolidated statements of operations for the year ended December 31, 2014, the Company revised its previously reported financial statements for the 2012 and 2013 annual periods in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 6, 2015, to reflect the impact of the immaterial errors that had been corrected .
Use of Estimates	Use of Estimates The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported results of operations during the reporting period. The Company’s management regularly assesses these estimates, which primarily affect revenue recognition, the valuation of accounts receivable, goodwill and intangible assets, stock-based compensation and the provision for income taxes. Actual results could differ from those estimates and such differences may be material to the accompanying condensed consolidated financial statements.
Concentration of Credit Risk	Concentration of Credit Risk The Company invests its cash and cash equivalents with major financial institutions. Cash balances with any one institution at times may be in excess of federally insured limits. Cash equivalents are invested in high-quality investment grade financial instruments and are diversified. The Company has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk. Credit risk with respect to accounts receivable is dispersed due to the large number of customers. Collateral is not required for accounts receivable. The Company maintains an allowance for potential credit losses based upon the expected collectability of accounts receivable. The Company writes off its receivables once collection efforts are unsuccessful.
Cash, Cash Equivalents, Short-Term and Long-Term Investments	Cash, Cash Equivalents, Short-Term and Long-Term Investments Cash and cash equivalents include cash held in banks, highly liquid money market funds, commercial paper and fixed-income U.S. government agency securities, all with original maturities of three months or less when acquired. The Company’s investments consist of fixed-income U.S. government agency securities, corporate bonds, asset-backed securities, and commercial paper. Management determines the appropriate classification of the Company's investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company classifies its investments as either short-term or long-term based on each instrument's underlying contractual maturity date. Cash equivalents are stated at cost, which approximates fair market value. Short-term and long-term investments are classified as available-for-sale and are carried at fair value. Unrealized gains and losses in fair value are reported in other comprehensive income (loss). When the available-for-sale securities are sold, cost is based on the specific identification method, and the realized gains and losses are included in other income (expense) in the condensed consolidated statements of operations. Short-term and long-term investments are reviewed quarterly for impairment that is deemed to be other-than-temporary. An investment is considered other-than-temporarily impaired when its fair value is below its amortized cost and (1) there is an intent to sell the security, (2) it is “more likely than not” that the security will be sold before recovery of its amortized cost basis or (3) the present value of expected cash flows from the investment is not expected to recover the entire amortized cost basis. Declines in value that are considered to be other-than-temporary and adjustments to amortized cost for the amortization of premiums and the accretion of discounts are recorded in other income (expense). Interest and dividends are recorded in interest income as earned.
Software Development Costs	Software Development Costs The Company capitalizes qualifying software costs developed or obtained for internal use. These costs generally include internal costs, such as payroll and benefits of those employees directly associated with the development of the software, and other consulting expenses.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Under the Jumpstart Our Business Startups Act (the "JOBS Act"), the Company meets the definition of an “emerging growth company.” The Company has irrevocably elected to opt out of the extended transition period for complying with new or revised accounting standards pursuant to Section 107(b) of the JOBS Act. As a result, the Company will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required from non-emerging growth companies. In May 2014, the Financial Accounting Standards Board (“FASB”) issued an Accounting Standard Update (“ASU”) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In August 2015, the FASB issued an ASU to defer the effective date of ASU 2014-09 for all entities by one year. Thus, ASU 2014-09 will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, but entities will be permitted to early adopt the standard only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized on date of adoption. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In January 2015, the FASB issued an ASU eliminating from U.S. GAAP the concept of extraordinary items, which required that an entity separately classify, present, and disclose extraordinary events and transactions. T he guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company does not expect the adoption of this ASU to be material to their consolidated financial statements. In April 2015, the FASB issued an ASU amending existing guidance which clarifies that software licenses contained in a cloud computing arrangement should be capitalized if the customer has the right to take possession of the software and the ability to run the software outside of the cloud computing arrangement. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract under existing guidelines. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. Early adoption is permitted. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. For certain of the Company’s financial instruments, including certain cash equivalents, accounts receivable, accounts payable, and other current liabilities, the carrying amounts approximate their fair values due to the relatively short maturity of these balances. The Company measures and reports certain cash equivalents, investments and derivative foreign currency forward contracts at fair value in accordance with the provisions of the authoritative accounting guidance that addresses fair value measurements. This guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The hierarchy is broken down into three levels based on the reliability of inputs as follows: Level 1 —Valuations based on quoted prices in active markets for identical assets or liabilities. Level 2 —Valuations based on other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3— Valuations based on inputs that are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability. The Company's financial instruments consist of assets and liabilities measured using Level 1 and 2 inputs. Level 1 assets include highly liquid money market funds, which are valued using unadjusted quoted prices that are available in an active market for an identical asset. Level 2 assets include fixed-income U.S. government agency securities, commercial paper, corporate bonds, asset-backed securities and derivative financial instruments consisting of foreign currency forward contracts. The securities, bonds and commercial paper are valued using prices from independent pricing services based on quoted prices in active markets for similar instruments or on industry models using data inputs such as interest rates and prices that can be directly observed or corroborated in active markets. The foreign currency forward contracts are valued usi ng observable inputs, such as quotations on forward foreign exchange points and foreign interest rates.

The Company and Summary of Si18

The Company and Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Correction of Immaterial Error	The following table summarizes the correction of previously reported amounts for the three and nine month periods ended September 30, 2014 presented in the accompanying condensed consolidated financial statements (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, 2014 September 30, 2014 as reported as adjusted as reported as adjusted Condensed Consolidated Statements of Operations: Other income (expense), net $ (141 ) $ (244 ) $ (279 ) $ (422 ) Total other income (expense), net (16 ) (119 ) 77 (66 ) Net income 3,208 3,105 4,474 4,331 Net income per share: Basic 0.10 0.09 0.14 0.13 Diluted 0.09 0.08 0.12 0.12 Condensed Consolidated Statements of Comprehensive Income: Change in foreign currency translation loss, net of tax (101 ) — (142 ) — Comprehensive income 3,034 3,034 4,292 4,292 Nine Months Ended September 30, 2014 as reported as adjusted Condensed Consolidated Statements of Cash Flows: Net cash provided by operating activities $ 25,085 $ 24,862 Net cash provided by investing activities 16,687 16,743 Effect of exchange rate changes on cash and cash equivalents (228 ) (27 ) Net increase in cash and cash equivalents 45,916 45,916

Fair Value of Financial Instr19

Fair Value of Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Schedule of Cash and Cash Equivalents, Available-for-sale Securities Reconciliation	The Company's cash and cash equivalents, short-term investments, and long-term investments consist of the following: September 30, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Cash and cash equivalents: Cash $ 48,907 $ — $ — $ 48,907 Money market funds 3,612 — — 3,612 U.S. government agencies 2,400 — — 2,400 Commercial paper 39,841 3 — 39,844 Total 94,760 3 — 94,763 Short-term investments: Commercial paper 24,579 9 — 24,588 Corporate bonds 12,561 2 (3 ) 12,560 Asset-backed securities 537 — — 537 U.S. government agencies 41,675 22 — 41,697 Total 79,352 33 (3 ) 79,382 Long-term investments: Asset-backed securities 6,405 — (1 ) 6,404 U.S. government agencies 12,461 9 (2 ) 12,468 Corporate bonds 6,862 1 (3 ) 6,860 Total 25,728 10 (6 ) 25,732 Total $ 199,840 $ 46 $ (9 ) $ 199,877 December 31, 2014 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Cash and cash equivalents: Cash $ 36,024 $ — $ — $ 36,024 Money market funds 39,180 — — 39,180 U.S. government agencies 300 — — 300 Commercial paper 1,000 — — 1,000 Total 76,504 — — 76,504 Short-term investments: Commercial paper 4,998 1 — 4,999 Corporate bonds 12,438 6 (6 ) 12,438 U.S. government agencies 33,280 3 (6 ) 33,277 Total 50,716 10 (12 ) 50,714 Long-term investments: Asset-backed securities 16,092 5 (3 ) 16,094 U.S. government agencies 20,243 22 (10 ) 20,255 Corporate bonds 3,101 — (2 ) 3,099 Total 39,436 27 (15 ) 39,448 Total $ 166,656 $ 37 $ (27 ) $ 166,666
Schedule of Assets Measured on Recurring Basis	The following table sets forth by level within the fair value hierarchy the fair value of the Company's available-for-sale securities measured on a recurring basis, excluding cash and money market funds: September 30, 2015 Level 1 Level 2 Level 3 Fair Value (in thousands) Commercial paper $ — $ 64,432 $ — $ 64,432 U.S. government agencies — 56,565 — 56,565 Corporate bonds — 19,420 — 19,420 Asset-backed securities — 6,941 — 6,941 Total $ — $ 147,358 $ — $ 147,358 December 31, 2014 Level 1 Level 2 Level 3 Fair Value (in thousands) Commercial paper $ — $ 5,999 $ — $ 5,999 U.S. government agencies — 53,832 — 53,832 Corporate bonds — 15,537 — 15,537 Asset-backed securities — 16,094 — 16,094 Total $ — $ 91,462 $ — $ 91,462
Schedule of Available-for-Sale Securities by Contractual Maturity	The following summarizes the fair value of securities classified as available-for-sale by contractual maturity: September 30, 2015 Mature within One Year After One Year through Two Years Over Two Years Fair Value (in thousands) Commercial paper $ 64,432 $ — $ — $ 64,432 U.S. government agencies 44,097 12,468 — 56,565 Corporate bonds 12,560 6,860 — 19,420 Asset-backed securities 537 4,203 2,201 6,941 Total $ 121,626 $ 23,531 $ 2,201 $ 147,358 December 31, 2014 Mature within One Year After One Year through Two Years Over Two Years Fair Value (in thousands) Commercial paper $ 5,999 $ — $ — $ 5,999 U.S. government agencies 33,577 20,255 — 53,832 Corporate bonds 12,438 3,099 — 15,537 Asset-backed securities — 7,327 8,767 16,094 Total $ 52,014 $ 30,681 $ 8,767 $ 91,462

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2015
Property, Plant and Equipment [Abstract]
Property and equipment, net	Property and equipment consists of the following: September 30, December 31, 2015 2014 (in thousands) Computer equipment $ 44,979 $ 35,576 Computer software 12,524 10,899 Furniture, fixtures and equipment 2,831 2,931 Scanner appliances 21,380 19,861 Leasehold improvements 2,706 2,622 Total property and equipment 84,420 71,889 Less: accumulated depreciation and amortization (54,455 ) (45,271 ) Property and equipment, net $ 29,965 $ 26,618

Goodwill and Intangible Asset21

Goodwill and Intangible Assets, Net (Tables)	9 Months Ended
	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Carrying value of intangible assets	The carrying values of intangible assets are as follows (in thousands): September 30, 2015 December 31, 2014 Estimated Lives Cost Accumulated Amortization Net Book Value Accumulated Amortization Net Book Value Existing technology 7 years $ 1,910 $ (1,388 ) $ 522 $ (1,183 ) $ 727 Patent license 14 years 1,388 (497 ) 891 (422 ) 966 Non-competition agreements and other 3 years 171 (171 ) — (158 ) 13 Total intangibles subject to amortization $ 3,469 $ (2,056 ) 1,413 $ (1,763 ) 1,706 Intangible assets not subject to amortization 295 295 Total intangible assets, net $ 1,708 $ 2,001
Intangible assets future periods amortization expense	As of September 30, 2015 , the Company expects amortization expense in future periods to be as follows (in thousands): Remainder of 2015 $ 93 2016 373 2017 282 2018 100 2019 100 2020 and thereafter 465 Total expected future amortization expense $ 1,413

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Lease Payments for Operating Leases	The following are the minimum annual lease payments due under operating leases at September 30, 2015 : Operating Leases (in thousands) Remainder of 2015 $ 1,143 2016 3,577 2017 2,052 2018 601 2019 201 Total minimum lease payments $ 7,574

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Employee stock-based compensation	Stock-based compensation for employee option awards is included in the condensed consolidated statements of operations as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (in thousands) Cost of revenues $ 333 $ 175 $ 1,005 $ 482 Research and development 1,294 599 3,584 1,544 Sales and marketing 1,015 561 2,806 1,839 General and administrative 1,674 1,050 4,612 2,815 Total employee stock-based compensation $ 4,316 $ 2,385 $ 12,007 $ 6,680
Fair value assumptions of options granted to employees	The fair value of each option granted to employees is estimated on the date of grant using the Black-Scholes option-pricing model based on the following assumptions: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Expected term (in years) 4.9 to 5.9 5.3 to 5.9 4.9 to 5.9 5.3 to 5.9 Volatility 45% to 46% 48% to 50% 45% to 48% 48% to 52% Risk-free interest rate 1.62% 1.67% 1.3% to 1.65% 1.52% to 1.67% Dividend yield —% —% —% —%
Stock option activity	A summary of the Company’s stock option activity is as follows: Outstanding Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (in thousands) December 31, 2014 7,605,407 $ 12.93 6.5 $ 188,743 Granted 1,113,950 41.17 Exercised (567,227 ) 11.63 Canceled (560,025 ) 26.69 September 30, 2015 7,592,105 16.16 6.1 107,966 Vested and expected to vest - September 30, 2015 7,130,958 15.00 5.9 106,964 Exercisable - September 30, 2015 5,073,823 8.79 4.9 99,803

Other Income (Expense), Net (Ta

Other Income (Expense), Net (Tables)	9 Months Ended
	Sep. 30, 2015
Other Income and Expenses [Abstract]
Schedule of Other Nonoperating Income (Expense)	Other income (expense), net consists of the following: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (in thousands) Foreign exchange gain (loss) $ (268 ) $ (217 ) $ (392 ) $ (342 ) Other income (expense) (39 ) (27 ) (93 ) (80 ) Other income (expense), net $ (307 ) $ (244 ) $ (485 ) $ (422 )

Segment Information and Infor25

Segment Information and Information about Geographic Area (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Revenues and property and equipment, net, by geographic area	Revenues by geographic area, based on the location of the customer, are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (in thousands) United States $ 29,993 $ 24,038 $ 84,463 $ 67,948 Other 12,476 10,310 35,376 29,058 Total revenues $ 42,469 $ 34,348 $ 119,839 $ 97,006 Property and equipment, net, by geographic area, are as follows: September 30, December 31, 2015 2014 (in thousands) United States $ 25,028 $ 23,650 Other 4,937 2,968 Total property and equipment, net $ 29,965 $ 26,618

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The computations for basic and diluted net income per share are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (in thousands, except per share data) Numerator: Net income $ 4,123 $ 3,105 $ 10,441 $ 4,331 Denominator: Weighted-average shares used in computing net income per share: Basic 34,119 33,120 33,967 32,820 Effect of potentially dilutive securities: Common stock options 3,819 3,960 4,235 4,186 Diluted 37,938 37,080 38,202 37,006 Net income per share: Basic $ 0.12 $ 0.09 $ 0.31 $ 0.13 Diluted $ 0.11 $ 0.08 $ 0.27 $ 0.12
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	Potentially dilutive securities not included in the calculation of diluted net income per share because doing so would be antidilutive are as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 (in thousands) Common stock options 1,889 1,813 1,409 1,483

The Company and Summary of Si27

The Company and Summary of Significant Accounting Policies Correction of Immaterial Error (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Other income (expense), net	$ (307)	$ (244)	$ (485)	$ (422)
Total other income (expense), net	(154)	(119)	(103)	(66)
Net income	$ 4,123	$ 3,105	$ 10,441	$ 4,331
Basic (USD per share)	$ 0.12	$ 0.09	$ 0.31	$ 0.13
Diluted (USD per share)	$ 0.11	$ 0.08	$ 0.27	$ 0.12
Comprehensive income	$ 4,133	$ 3,034	$ 10,468	$ 4,292
Net cash provided by operating activities			41,668	24,862
Net cash provided by (used in) investing activities			(30,318)	16,743
Effect of exchange rate changes on cash and cash equivalents			0	(27)
Net increase in cash and cash equivalents			$ 18,259	45,916
As Reported
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Other income (expense), net		(141)		(279)
Total other income (expense), net		(16)		77
Net income		$ 3,208		$ 4,474
Basic (USD per share)		$ 0.10		$ 0.14
Diluted (USD per share)		$ 0.09		$ 0.12
Change in foreign currency translation loss, net of tax		$ (101)		$ (142)
Comprehensive income		3,034		4,292
Net cash provided by operating activities				25,085
Net cash provided by (used in) investing activities				16,687
Effect of exchange rate changes on cash and cash equivalents				(228)
Net increase in cash and cash equivalents				45,916
As Adjusted
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Other income (expense), net		(244)		(422)
Total other income (expense), net		(119)		(66)
Net income		$ 3,105		$ 4,331
Basic (USD per share)		$ 0.09		$ 0.13
Diluted (USD per share)		$ 0.08		$ 0.12
Change in foreign currency translation loss, net of tax		$ 0		$ 0
Comprehensive income		$ 3,034		4,292
Net cash provided by operating activities				24,862
Net cash provided by (used in) investing activities				16,743
Effect of exchange rate changes on cash and cash equivalents				(27)
Net increase in cash and cash equivalents				$ 45,916

The Company and Summary of Si28

The Company and Summary of Significant Accounting Policies (Details) $ in Millions	Sep. 30, 2015USD ($)customer	Dec. 31, 2014USD ($)customer
Software Development Costs
Software development cost capitalized	$ 0.4	$ 0.4
Accounts Receivable | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, number of customers | customer	1	0

Fair Value of Financial Instr29

Fair Value of Financial Instruments - Cash and Cash Equivalents, Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	$ 199,840	$ 166,656
Unrealized Gains	46	37
Unrealized Losses	(9)	(27)
Fair Value	199,877	166,666
Cash and cash equivalents
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	94,760	76,504
Unrealized Gains	3	0
Unrealized Losses	0	0
Fair Value	94,763	76,504
Short-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	79,352	50,716
Unrealized Gains	33	10
Unrealized Losses	(3)	(12)
Fair Value	79,382	50,714
Long-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	25,728	39,436
Unrealized Gains	10	27
Unrealized Losses	(6)	(15)
Fair Value	25,732	39,448
Cash | Cash and cash equivalents
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	48,907	36,024
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	48,907	36,024
Money market funds | Cash and cash equivalents
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	3,612	39,180
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	3,612	39,180
Commercial paper | Cash and cash equivalents
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	39,841	1,000
Unrealized Gains	3	0
Unrealized Losses	0	0
Fair Value	39,844	1,000
Commercial paper | Short-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	24,579	4,998
Unrealized Gains	9	1
Unrealized Losses	0	0
Fair Value	24,588	4,999
Corporate bonds | Short-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	12,561	12,438
Unrealized Gains	2	6
Unrealized Losses	(3)	(6)
Fair Value	12,560	12,438
Corporate bonds | Long-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	6,862	3,101
Unrealized Gains	1	0
Unrealized Losses	(3)	(2)
Fair Value	6,860	3,099
Asset backed securities | Short-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	537
Unrealized Gains	0
Unrealized Losses	0
Fair Value	537
Asset backed securities | Long-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	6,405	16,092
Unrealized Gains	0	5
Unrealized Losses	(1)	(3)
Fair Value	6,404	16,094
US government agencies | Cash and cash equivalents
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	2,400	300
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	2,400	300
US government agencies | Short-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	41,675	33,280
Unrealized Gains	22	3
Unrealized Losses	0	(6)
Fair Value	41,697	33,277
US government agencies | Long-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	12,461	20,243
Unrealized Gains	9	22
Unrealized Losses	(2)	(10)
Fair Value	$ 12,468	$ 20,255

Fair Value of Financial Instr30

Fair Value of Financial Instruments - Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	$ 147,358	$ 91,462
Level 1 | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	0	0
Level 2 | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	147,358	91,462
Level 3 | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	0	0
Commercial paper
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	64,432	5,999
Commercial paper | Level 1 | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	0	0
Commercial paper | Level 2 | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	64,432	5,999
Commercial paper | Level 3 | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	0	0
US government agencies
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	56,565	53,832
US government agencies | Level 1 | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	0	0
US government agencies | Level 2 | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	56,565	53,832
US government agencies | Level 3 | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	0	0
Corporate bonds
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	19,420	15,537
Corporate bonds | Level 1 | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	0	0
Corporate bonds | Level 2 | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	19,420	15,537
Corporate bonds | Level 3 | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	0	0
Asset backed securities
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	6,941	16,094
Asset backed securities | Level 1 | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	0	0
Asset backed securities | Level 2 | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	6,941	16,094
Asset backed securities | Level 3 | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	0	0
Fair Value | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	147,358	91,462
Fair Value | Commercial paper | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	64,432	5,999
Fair Value | US government agencies | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	56,565	53,832
Fair Value | Corporate bonds | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	19,420	15,537
Fair Value | Asset backed securities | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	$ 6,941	$ 16,094

Fair Value of Financial Instr31

Fair Value of Financial Instruments - Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Mature within One Year	$ 121,626	$ 52,014
After One Year through Two Years	23,531	30,681
Over Two Years	2,201	8,767
Fair Value	147,358	91,462
Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Mature within One Year	64,432	5,999
After One Year through Two Years	0	0
Over Two Years	0	0
Fair Value	64,432	5,999
US government agencies
Schedule of Available-for-sale Securities [Line Items]
Mature within One Year	44,097	33,577
After One Year through Two Years	12,468	20,255
Over Two Years	0	0
Fair Value	56,565	53,832
Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Mature within One Year	12,560	12,438
After One Year through Two Years	6,860	3,099
Over Two Years	0	0
Fair Value	19,420	15,537
Asset backed securities
Schedule of Available-for-sale Securities [Line Items]
Mature within One Year	537	0
After One Year through Two Years	4,203	7,327
Over Two Years	2,201	8,767
Fair Value	$ 6,941	$ 16,094

Fair Value of Financial Instr32

Fair Value of Financial Instruments - Derivatives (Details) € in Millions, £ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015GBP (£)contract	Sep. 30, 2015EUR (€)contract	Sep. 30, 2015USD ($)contract	Dec. 31, 2014GBP (£)contract	Dec. 31, 2014EUR (€)contract	Dec. 31, 2014USD ($)contract
Derivatives, Fair Value [Line Items]
Foreign currency contract, asset, fair value disclosure										$ 0
Forward Contracts
Derivatives, Fair Value [Line Items]
Derivative, number of instruments held | contract					2	2	2	2	2	2
Derivative, notional amount					£ 3.2	€ 4.6		£ 2.1	€ 6
Foreign currency contract, asset, fair value disclosure							$ 0
Derivative instruments not designated as hedging instruments, gain	$ 100,000	$ 500,000	$ 500,000	$ 400,000
Foreign currency transaction loss	$ 400,000	$ 800,000	$ 900,000	$ 700,000

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property and equipment	$ 84,420		$ 84,420		$ 71,889
Less: accumulated depreciation and amortization	(54,455)		(54,455)		(45,271)
Property and equipment, net	29,965		29,965		26,618
Depreciation and amortization expense	3,700	$ 2,900	10,100	$ 8,500
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment	44,979		44,979		35,576
Computer software
Property, Plant and Equipment [Line Items]
Property and equipment	12,524		12,524		10,899
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property and equipment	2,831		2,831		2,931
Scanner appliances
Property, Plant and Equipment [Line Items]
Property and equipment	21,380		21,380		19,861
Scanner appliances and other computer equipment subject to subscription
Property, Plant and Equipment [Line Items]
Property and equipment, net	8,200		8,200		6,000
Scanner appliances and other computer equipment not placed in service
Property, Plant and Equipment [Line Items]
Property and equipment	900		900		1,400
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	2,706		2,706		2,622
Other fixed assets not placed in service
Property, Plant and Equipment [Line Items]
Property and equipment	$ 1,700		$ 1,700		$ 2,800

Goodwill and Intangible Asset34

Goodwill and Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Schedule of Goodwill and Intangible Assets [Line Items]
Cost	$ 3,469		$ 3,469		$ 3,469
Accumulated Amortization	(2,056)		(2,056)		(1,763)
Net Book Value	1,413		1,413		1,706
Intangible assets not subject to amortization	295		295		295
Total intangible assets, net	1,708		1,708		2,001
Amortization of intangible assets	100	$ 100	300	$ 300
Goodwill	317		$ 317		317
Existing technology
Schedule of Goodwill and Intangible Assets [Line Items]
Estimated Lives			7 years
Cost	1,910		$ 1,910		1,910
Accumulated Amortization	(1,388)		(1,388)		(1,183)
Net Book Value	522		$ 522		727
Patent license
Schedule of Goodwill and Intangible Assets [Line Items]
Estimated Lives			14 years
Cost	1,388		$ 1,388		1,388
Accumulated Amortization	(497)		(497)		(422)
Net Book Value	891		$ 891		966
Non-competition agreements and other
Schedule of Goodwill and Intangible Assets [Line Items]
Estimated Lives			3 years
Cost	171		$ 171		171
Accumulated Amortization	(171)		(171)		(158)
Net Book Value	$ 0		$ 0		$ 13

Goodwill and Intangible Asset35

Goodwill and Intangible Assets, Net Future Amortization (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2015	$ 93
2,016	373
2,017	282
2,018	100
2,019	100
2020 and thereafter	465
Net Book Value	$ 1,413	$ 1,706

Commitments and Contingencies

Commitments and Contingencies - Lease Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Oct. 31, 2015	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Subsequent Event [Line Items]
Lease commitment		$ 7,574		$ 7,574
Rent expense		1,600	$ 1,600	4,800	$ 4,600
Deferred rent credit		$ 600		$ 600		$ 500
Subsequent Event
Subsequent Event [Line Items]
Lease term	5 years
Lease commitment	$ 1,700

Commitments and Contingencies37

Commitments and Contingencies - Schedule of Leases (Details) $ in Thousands	Sep. 30, 2015USD ($)
Operating Leases
Remainder of 2015	$ 1,143
2,016	3,577
2,017	2,052
2,018	601
2,019	201
Total minimum lease payments	$ 7,574

Commitments and Contingencies38

Commitments and Contingencies - Sales and Other Taxes (Details) - USD ($) $ in Millions	Sep. 30, 2015	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Sales and other taxes accrual, current	$ 0.4	$ 0.5

Stock-based Compensation - Sto

Stock-based Compensation - Stock Options (Details) - 2012 Equity Incentive Plan	Sep. 30, 2015shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	6,348,478
Number of shares available for grant	1,848,947

Stock-based Compensation - Exp

Stock-based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation	$ 4,316	$ 2,385	$ 12,007	$ 6,680
Unrecognized employee compensation cost	26,300		$ 26,300
Unrecognized employee compensation cost, period for recognition			2 years 2 months 12 days
Non-employee share-based compensation expense	(100)	100	$ 500	400
Cost of revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation	333	175	1,005	482
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation	1,294	599	3,584	1,544
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation	1,015	561	2,806	1,839
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation	$ 1,674	$ 1,050	$ 4,612	$ 2,815

Stock-based Compensation - Fai

Stock-based Compensation - Fair Value Assumptions, Stock Options (Details) - Stock Options	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	4 years 10 months 24 days	5 years 3 months 24 days	4 years 10 months 24 days	5 years 3 months 24 days
Volatility	45.00%	48.00%	45.00%	48.00%
Risk-free interest rate	1.62%	1.67%	1.30%	1.52%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	5 years 10 months 24 days	5 years 10 months 24 days	5 years 10 months 24 days	5 years 10 months 24 days
Volatility	46.00%	50.00%	48.00%	52.00%
Risk-free interest rate			1.65%	1.67%

Stock-based Compensation - S42

Stock-based Compensation - Stock Option Plan Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Outstanding Shares
Beginning balance (in shares)	7,605,407
Granted (in shares)	1,113,950
Exercised (in shares)	(567,227)
Canceled (in shares)	(560,025)
Ending balance (in shares)	7,592,105	7,605,407
Vested and expected to vest (in shares)	7,130,958
Exercisable (in shares)	5,073,823
Weighted Average Exercise Price
Weighted average exercise price, Beginning balance (in dollars per share)	$ 12.93
Weighted average exercise price, granted (in dollars per share)	41.17
Weighted average exercise price, exercised (in dollars per share)	11.63
Weighted average exercise price, canceled (in dollars per share)	26.69
Weighted average exercise price, Ending balance (in dollars per share)	16.16	$ 12.93
Weighted average exercise price, Vested and expected to vest (in dollars per share)	15
Weighted average exercise price, Exercisable (in dollars per share)	$ 8.79
Weighted Average Remaining Contractual Life
Weighted average remaining contractual life (in years)	6 years 1 month 12 days	6 years 6 months 7 days
Weighted average remaining contractual life, Vested and expected to vest (in years)	5 years 10 months 12 days
Weighted average remaining contractual life, Exercisable (in years)	4 years 10 months 12 days
Aggregate Intrinsic Value
Aggregate intrinsic value	$ 107,966	$ 188,743
Aggregate intrinsic value, Vested and expected to vest	106,964
Aggregate intrinsic value, Exercisable	$ 99,803

Stock-based Compensation - Res

Stock-based Compensation - Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total employee stock-based compensation	$ 4,316	$ 2,385	$ 12,007	$ 6,680
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted	60,000
Share Price	$ 37.28		$ 37.28
Award vesting period	2 years
Total employee stock-based compensation	$ 200
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted	0		0	2,401
Total employee stock-based compensation				$ 51

Other Income (Expense), Net (De

Other Income (Expense), Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Other Income and Expenses [Abstract]
Foreign exchange gain (loss)	$ (268)	$ (217)	$ (392)	$ (342)
Other income (expense)	(39)	(27)	(93)	(80)
Other income (expense), net	$ (307)	$ (244)	$ (485)	$ (422)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 2,601	$ 283	$ 6,566	$ 639
Effective income tax rate			38.60%
Unrecognized tax benefits	3,500		$ 3,500		$ 3,300
Unrecognized tax benefits that would impact effective tax rate	$ 2,200		$ 2,200		$ 2,100

Segment Information and Infor46

Segment Information and Information about Geographic Area (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)segment	Sep. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Segment Reporting Information [Line Items]
Number of operating segments | segment			1
Revenues	$ 42,469	$ 34,348	$ 119,839	$ 97,006
Property and equipment, net	29,965		29,965		$ 26,618
United States
Segment Reporting Information [Line Items]
Revenues	29,993	24,038	84,463	67,948
Property and equipment, net	25,028		25,028		23,650
Other
Segment Reporting Information [Line Items]
Revenues	12,476	$ 10,310	35,376	$ 29,058
Property and equipment, net	$ 4,937		$ 4,937		$ 2,968

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Numerator:
Net income	$ 4,123	$ 3,105	$ 10,441	$ 4,331
Denominator:
Basic (shares)	34,119	33,120	33,967	32,820
Common stock options (shares)	3,819	3,960	4,235	4,186
Diluted (shares)	37,938	37,080	38,202	37,006
Basic (USD per share)	$ 0.12	$ 0.09	$ 0.31	$ 0.13
Diluted (USD per share)	$ 0.11	$ 0.08	$ 0.27	$ 0.12
Stock Options
Antidilutive Securities
Antidilutive securities (shares)	1,889	1,813	1,409	1,483