Qualys (QLYS) 10-Q 5 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Apr. 30, 2016
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	Mar. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		34,920,134

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 112,471	$ 91,698
Short-term investments	93,238	87,268
Accounts receivable, net of allowance of $800 and $769 as of March 31, 2016 and December 31, 2015, respectively	42,414	42,325
Prepaid expenses and other current assets	7,448	7,945
Total current assets	255,571	229,236
Long-term investments	34,614	43,277
Property and equipment, net	31,786	31,329
Deferred tax assets, net	17,165	16,079
Intangible assets, net	1,267	1,360
Goodwill	317	317
Other noncurrent assets	1,942	1,916
Total assets	342,662	323,514
Current liabilities:
Accounts payable	4,393	2,368
Accrued liabilities	11,513	11,786
Deferred revenues, current	101,557	98,025
Total current liabilities	117,463	112,179
Deferred revenues, noncurrent	13,092	14,564
Other noncurrent liabilities	1,611	1,205
Total liabilities	$ 132,166	$ 127,948
Commitments and contingencies (Note 5)
Stockholders’ equity:
Preferred stock, $0.001 par value; 20,000,000 shares authorized, no shares issued and outstanding at March 31, 2016 and December 31, 2015	$ 0	$ 0
Common stock, $0.001 par value; 1,000,000,000 shares authorized; 34,882,368 and 34,414,631 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	35	34
Additional paid-in capital	233,133	223,228
Accumulated other comprehensive income (loss)	30	(211)
Accumulated deficit	(22,702)	(27,485)
Total stockholders’ equity	210,496	195,566
Total liabilities and stockholders’ equity	$ 342,662	$ 323,514

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 800	$ 769
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	34,882,368	34,414,631
Common stock, shares outstanding	34,882,368	34,414,631

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues
Revenues	$ 46,248	$ 37,493
Cost of revenues	9,416	7,964
Gross profit	36,832	29,529
Operating expenses:
Research and development	7,834	7,150
Sales and marketing	13,933	11,443
General and administrative	7,468	6,016
Total operating expenses	29,235	24,609
Income from operations	7,597	4,920
Other income (expense), net:
Interest expense	(13)	0
Interest income	250	101
Other expense, net	(69)	(178)
Total other income (expense), net	168	(77)
Income before income taxes	7,765	4,843
Provision for income taxes	2,982	1,841
Net income	$ 4,783	$ 3,002
Net income per share:
Basic (USD per share)	$ 0.14	$ 0.09
Diluted (USD per share)	$ 0.13	$ 0.08
Weighted average shares used in computing net income per share:
Basic (shares)	34,619	33,775
Diluted (shares)	37,838	38,235

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 4,783	$ 3,002
Available-for-sale investments:
Change in net unrealized gain (loss) on investments, net of tax	229	29
Less: reclassification adjustment for net realized gain (loss) included in net income	12	(4)
Net change, net of tax	241	25
Other comprehensive income, net	241	25
Comprehensive income	$ 5,024	$ 3,027

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income	$ 4,783	$ 3,002
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	3,834	3,182
Bad debt expense	80	175
Loss on disposal of property and equipment	0	4
Stock-based compensation	4,697	3,875
Amortization of premiums and accretion of discounts on investments	208	168
Excess tax benefits from stock-based compensation	(3,095)	(91)
Deferred income taxes	(1,086)	1,362
Changes in operating assets and liabilities:
Accounts receivable	(169)	(5,914)
Prepaid expenses and other assets	573	(670)
Accounts payable	2,026	(3,609)
Accrued liabilities	2,822	1,690
Deferred revenues	2,059	6,782
Other noncurrent liabilities	406	70
Net cash provided by operating activities	17,138	10,026
Cash flows from investing activities:
Purchases of investments	(49,450)	(31,781)
Sales and maturities of investments	52,176	25,977
Purchases of property and equipment	(4,181)	(6,148)
Capitalized software development costs	(118)	(99)
Net cash used in investing activities	(1,573)	(12,051)
Cash flows from financing activities:
Proceeds from exercise of stock options	2,113	3,448
Excess tax benefits from stock-based compensation	3,095	91
Net cash provided by financing activities	5,208	3,539
Net increase in cash and cash equivalents	20,773	1,514
Cash and cash equivalents at beginning of period	91,698	76,504
Cash and cash equivalents at end of period	112,471	78,018
Non-cash investing and financing activities:
Vesting of early exercised common stock options	$ 0	$ 6

The Company and Summary of Sign

The Company and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
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 Qualys 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, 2015 , 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 month periods ended March 31, 2016 are not necessarily indicative of the results of operations expected for the entire year ending December 31, 2016 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, 2015 filed with the SEC on February 26, 2016. 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. 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. As of March 31, 2016 and December 31, 2015 , 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 $0.6 million and $0.4 million at March 31, 2016 and December 31, 2015, respectively. Recent Accounting Pronouncements 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 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 adopted this ASU as of January 1, 2016, which had no impact on its consolidated financial statements. In January 2016, the FASB issued an ASU that will impact certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This guidance is effective for public business entities in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In February 2016, the FASB issued an ASU which requires, among other things, lease assets and lease liabilities arising from leases, including operating leases, to be recognized on the balance sheet. In addition, the ASU requires disclosing key information about leasing arrangements. This guidance supersedes existing lease guidance and is effective for public business entities in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In March 2016, the FASB issued an ASU intended to simplify and improve various aspects related to how employee-share based payment transactions are accounted for and presented in the financial statements. The ASU addresses income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. This guidance is effective for public business entities in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. 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	3 Months Ended
	Mar. 31, 2016
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 a highly liquid money market fund, which is 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: March 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Cash and cash equivalents: Cash $ 69,001 $ — $ — $ 69,001 Money market funds 31,872 — — 31,872 Commercial paper 11,597 1 — 11,598 Total 112,470 1 — 112,471 Short-term investments: Commercial paper 6,823 6 — 6,829 Corporate bonds 12,370 1 (2 ) 12,369 Asset-backed securities 678 — — 678 U.S. government agencies 73,357 23 (18 ) 73,362 Total 93,228 30 (20 ) 93,238 Long-term investments: Asset-backed securities 5,987 2 (5 ) 5,984 U.S. government agencies 24,016 30 (15 ) 24,031 Corporate bonds 4,592 11 (4 ) 4,599 Total 34,595 43 (24 ) 34,614 Total $ 240,293 $ 74 $ (44 ) $ 240,323 December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Cash and cash equivalents: Cash $ 61,372 $ — $ — $ 61,372 Money market funds 3,980 — — 3,980 U.S. government agencies 8,999 1 — 9,000 Commercial paper 17,345 1 — 17,346 Total 91,696 2 — 91,698 Short-term investments: Commercial paper 10,447 1 — 10,448 Corporate bonds 12,448 — (13 ) 12,435 U.S. government agencies 64,422 3 (40 ) 64,385 Total 87,317 4 (53 ) 87,268 Long-term investments: Asset-backed securities 7,007 — (18 ) 6,989 U.S. government agencies 32,683 — (142 ) 32,541 Corporate bonds 3,751 — (4 ) 3,747 Total 43,441 — (164 ) 43,277 Total $ 222,454 $ 6 $ (217 ) $ 222,243 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: March 31, 2016 Level 1 Level 2 Level 3 Fair Value (in thousands) Commercial paper $ — $ 18,427 $ — $ 18,427 U.S. government agencies — 97,393 — 97,393 Corporate bonds — 16,968 — 16,968 Asset-backed securities — 6,662 — 6,662 Total $ — $ 139,450 $ — $ 139,450 December 31, 2015 Level 1 Level 2 Level 3 Fair Value (in thousands) Commercial paper $ — $ 27,794 $ — $ 27,794 U.S. government agencies — 105,926 — 105,926 Corporate bonds — 16,182 — 16,182 Asset-backed securities — 6,989 — 6,989 Total $ — $ 156,891 $ — $ 156,891 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: March 31, 2016 Mature within One Year After One Year through Two Years Over Two Years Fair Value (in thousands) Commercial paper $ 18,427 $ — $ — $ 18,427 U.S. government agencies 73,362 24,031 — 97,393 Corporate bonds 16,968 — — 16,968 Asset-backed securities 678 1,193 4,791 6,662 Total $ 109,435 $ 25,224 $ 4,791 $ 139,450 December 31, 2015 Mature within One Year After One Year through Two Years Over Two Years Fair Value (in thousands) Commercial paper $ 27,794 $ — $ — $ 27,794 U.S. government agencies 73,385 32,541 — 105,926 Corporate bonds 12,435 3,747 — 16,182 Asset-backed securities — 3,411 3,578 6,989 Total $ 113,614 $ 39,699 $ 3,578 $ 156,891 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 March 31, 2016 , the Company had two outstanding forward contrac ts with notional amounts of 6.9 million Euros and 4.2 million British Pounds, which expired on April 30, 2016 . At December 31, 2015 , the Company had two outstanding forward contracts with notional amounts of 6.1 million Euros and 2.6 million British Pounds, which expired on January 31, 2016 . These forward contracts were entered into at the end of each month, and thus the fair value of these contracts was $0 at March 31, 2016 and December 31, 2015 . The Company recorded a loss of $0.4 million from these forward contracts, which offset other foreign currency transaction gains of $0.4 million for the three months ended March 31, 2016 . For the three months ended March 31, 2015 , the Company recorded a gain of $0.8 million from these forward contracts, which were more than offset by other foreign currency transaction losses of $0.9 million . 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	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	Property and Equipment, Net Property and equipment consists of the following: March 31, December 31, 2016 2015 (in thousands) Computer equipment $ 50,788 $ 48,192 Computer software 12,916 12,484 Furniture, fixtures and equipment 2,908 2,804 Scanner appliances 23,487 22,627 Leasehold improvements 3,571 3,367 Total property and equipment 93,670 89,474 Less: accumulated depreciation and amortization (61,884 ) (58,145 ) Property and equipment, net $ 31,786 $ 31,329 Physical scanner appliances and other computer equipment that are or will be subject to subscriptions by customers have a net carrying value of $9.0 million and $8.4 million at March 31, 2016 and December 31, 2015 , respectively, including assets that have not been placed in service of $1.6 million and $1.4 million, respectively. Other fixed assets not placed in service at March 31, 2016 and December 31, 2015 , included in computer equipment and leasehold improvements, are approximately $5.4 million and $4.3 million , respectively. Depreciation and amortization expense relating to property and equipment was $3.7 million and $3.1 million for the three months ended March 31, 2016 and 2015 , respectively.

Goodwill and Intangible Assets,

Goodwill and Intangible Assets, Net	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets, Net	Goodwill and Intangible Assets, Net Intangible assets consist primarily of existing technology and patent license 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): March 31, 2016 December 31, 2015 Estimated Lives Cost Accumulated Amortization Net Book Value Accumulated Amortization Net Book Value Existing technology 7 years $ 1,910 $ (1,524 ) $ 386 $ (1,456 ) $ 454 Patent license 14 years 1,388 (547 ) 841 (522 ) 866 Total intangibles subject to amortization $ 3,298 $ (2,071 ) 1,227 $ (1,978 ) 1,320 Intangible assets not subject to amortization 40 40 Total intangible assets, net $ 1,267 $ 1,360 Intangibles amortization expense was $0.1 million for the three months ended March 31, 2016 and 2015 . As of March 31, 2016 , the Company expects amortization expense in future periods to be as follows (in thousands): Remainder of 2016 $ 280 2017 282 2018 100 2019 100 2020 100 2021 and thereafter 365 Total expected future amortization expense $ 1,227 Goodwill, which is not subject to amortization, totaled $0.3 million as of March 31, 2016 and December 31, 2015 .

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
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 noncancelable operating leases for varying periods through 2022. The following are the minimum annual lease payments due under operating leases at March 31, 2016 (in thousands): Remainder of 2016 $ 3,169 2017 2,782 2018 1,296 2019 873 2020 647 2021 and thereafter 398 Total minimum lease payments $ 9,165 Rent expense was $1.7 million and $1.6 million the three months ended March 31, 2016 and 2015 , 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 March 31, 2016 and December 31, 2015 , the Company has accrued $0.5 million of deferred rent related to these agreements, which is reflected in accrued liabilities and other noncurrent liabilities in the accompanying condensed consolidated balance sheets. 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 March 31, 2016 , the Company has not recorded any material liabilities in accordance with accounting for contingencies.

Stock-based Compensation

Stock-based Compensation	3 Months Ended
	Mar. 31, 2016
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 8,069,184 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 March 31, 2016 , 3,075,341 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 March 31, 2016 2015 (in thousands) Cost of revenues $ 379 $ 328 Research and development 1,295 1,152 Sales and marketing 1,249 811 General and administrative 1,586 1,471 Total employee stock-based compensation $ 4,509 $ 3,762 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 March 31, 2016 , the Company had $23.1 million of total unrecognized employee compensation cost related to unvested option awards that it expects to recognize over a weighted-average period of 2.5 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 March 31, 2016 2015 Expected term (in years) 5.0 to 5.9 4.9 to 5.9 Volatility 45% 47% to 48% Risk-free interest rate 1.3% 1.3% 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 minimal and $0.1 million for the three months ended March 31, 2016 and 2015 , 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, 2015 7,579,058 $ 16.88 5.9 $ 131,345 Granted 549,700 $ 25.17 Exercised (462,737 ) $ 4.57 Canceled (258,628 ) $ 32.69 March 31, 2016 7,407,393 $ 17.71 5.8 $ 77,955 Vested and expected to vest - March 31, 2016 6,851,379 $ 16.57 5.5 $ 77,676 Exercisable - March 31, 2016 5,074,374 $ 11.54 4.9 $ 76,024 Restricted Stock 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 adjusted for estimated forfeitures. A summary of the Company’s RSU activity is as follows: Outstanding RSUs Weighted Average Fair Value December 31, 2015 47,500 $ 37.28 Granted 14,142 $ 25.17 Released (5,000 ) $ 37.28 Canceled (42,500 ) $ 37.28 March 31, 2016 14,142 $ 25.17 Outstanding and expected to vest 14,142 $ 25.17 The Company recorded compensation expense of $0.2 million for the three months ended March 31, 2016 . The Company did not record compensation expense for RSUs in the three months ended March 31, 2015 . As of March 31, 2016, the Company has $0.4 million of unrecognized compensation cost related to unvested awards that it expects to recognize over a weighted-average period of 2.9 years.

Other Income (Expense), Net

Other Income (Expense), Net	3 Months Ended
	Mar. 31, 2016
Other Income and Expenses [Abstract]
Other Income (Expense), Net	Other Income (Expense), Net Other income (expense), net consists of the following: Three Months Ended March 31, 2016 2015 (in thousands) Foreign exchange losses $ (31 ) $ (151 ) Other income (expense) (38 ) (27 ) Other income (expense), net $ (69 ) $ (178 )

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company recorded an income tax provision of $3.0 million and $1.8 million for the three months ended March 31, 2016 and 2015 , respectively. The effective income tax rate was approximately 38.4 % and 38.0% for the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016 , the Company had unrecognized tax benefits of $4.0 million , of which $2.4 million , if recognized, would favorably impact the Company's effective tax rate. As of December 31, 2015 , the Company had unrecognized tax benefits of $3.5 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	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 2015 (in thousands) United States $ 32,689 $ 26,341 Foreign 13,559 11,152 Total revenues $ 46,248 $ 37,493 Property and equipment, net, by geographic area, are as follows: March 31, December 31, 2016 2015 (in thousands) United States $ 25,736 $ 25,623 Foreign 6,050 5,706 Total property and equipment, net $ 31,786 $ 31,329

Net Income Per Share

Net Income Per Share	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 2015 (in thousands, except per share data) Numerator: Net income $ 4,783 $ 3,002 Denominator: Weighted-average shares used in computing net income per share: Basic 34,619 33,775 Effect of potentially dilutive securities: Common stock options 3,219 4,460 Diluted 37,838 38,235 Net income per share: Basic $ 0.14 $ 0.09 Diluted $ 0.13 $ 0.08 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 March 31, 2016 2015 (in thousands) Common stock options 3,115 535

The Company and Summary of Si17

The Company and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Description Of Business	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 Qualys Cloud Platform to cost-effectively obtain a unified view of their security and compliance posture across globally-distributed IT infrastructures.
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, 2015 , 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 month periods ended March 31, 2016 are not necessarily indicative of the results of operations expected for the entire year ending December 31, 2016 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, 2015 filed with the SEC on February 26, 2016.
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.
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 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 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 adopted this ASU as of January 1, 2016, which had no impact on its consolidated financial statements. In January 2016, the FASB issued an ASU that will impact certain aspects of recognition, measurement, presentation and disclosure of financial instruments. This guidance is effective for public business entities in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In February 2016, the FASB issued an ASU which requires, among other things, lease assets and lease liabilities arising from leases, including operating leases, to be recognized on the balance sheet. In addition, the ASU requires disclosing key information about leasing arrangements. This guidance supersedes existing lease guidance and is effective for public business entities in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements. In March 2016, the FASB issued an ASU intended to simplify and improve various aspects related to how employee-share based payment transactions are accounted for and presented in the financial statements. The ASU addresses income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and forfeiture rate calculations. This guidance is effective for public business entities in fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. 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 a highly liquid money market fund, which is 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.

Fair Value of Financial Instr18

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
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: March 31, 2016 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Cash and cash equivalents: Cash $ 69,001 $ — $ — $ 69,001 Money market funds 31,872 — — 31,872 Commercial paper 11,597 1 — 11,598 Total 112,470 1 — 112,471 Short-term investments: Commercial paper 6,823 6 — 6,829 Corporate bonds 12,370 1 (2 ) 12,369 Asset-backed securities 678 — — 678 U.S. government agencies 73,357 23 (18 ) 73,362 Total 93,228 30 (20 ) 93,238 Long-term investments: Asset-backed securities 5,987 2 (5 ) 5,984 U.S. government agencies 24,016 30 (15 ) 24,031 Corporate bonds 4,592 11 (4 ) 4,599 Total 34,595 43 (24 ) 34,614 Total $ 240,293 $ 74 $ (44 ) $ 240,323 December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Fair Value (in thousands) Cash and cash equivalents: Cash $ 61,372 $ — $ — $ 61,372 Money market funds 3,980 — — 3,980 U.S. government agencies 8,999 1 — 9,000 Commercial paper 17,345 1 — 17,346 Total 91,696 2 — 91,698 Short-term investments: Commercial paper 10,447 1 — 10,448 Corporate bonds 12,448 — (13 ) 12,435 U.S. government agencies 64,422 3 (40 ) 64,385 Total 87,317 4 (53 ) 87,268 Long-term investments: Asset-backed securities 7,007 — (18 ) 6,989 U.S. government agencies 32,683 — (142 ) 32,541 Corporate bonds 3,751 — (4 ) 3,747 Total 43,441 — (164 ) 43,277 Total $ 222,454 $ 6 $ (217 ) $ 222,243
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: March 31, 2016 Level 1 Level 2 Level 3 Fair Value (in thousands) Commercial paper $ — $ 18,427 $ — $ 18,427 U.S. government agencies — 97,393 — 97,393 Corporate bonds — 16,968 — 16,968 Asset-backed securities — 6,662 — 6,662 Total $ — $ 139,450 $ — $ 139,450 December 31, 2015 Level 1 Level 2 Level 3 Fair Value (in thousands) Commercial paper $ — $ 27,794 $ — $ 27,794 U.S. government agencies — 105,926 — 105,926 Corporate bonds — 16,182 — 16,182 Asset-backed securities — 6,989 — 6,989 Total $ — $ 156,891 $ — $ 156,891
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: March 31, 2016 Mature within One Year After One Year through Two Years Over Two Years Fair Value (in thousands) Commercial paper $ 18,427 $ — $ — $ 18,427 U.S. government agencies 73,362 24,031 — 97,393 Corporate bonds 16,968 — — 16,968 Asset-backed securities 678 1,193 4,791 6,662 Total $ 109,435 $ 25,224 $ 4,791 $ 139,450 December 31, 2015 Mature within One Year After One Year through Two Years Over Two Years Fair Value (in thousands) Commercial paper $ 27,794 $ — $ — $ 27,794 U.S. government agencies 73,385 32,541 — 105,926 Corporate bonds 12,435 3,747 — 16,182 Asset-backed securities — 3,411 3,578 6,989 Total $ 113,614 $ 39,699 $ 3,578 $ 156,891

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	3 Months Ended
	Mar. 31, 2016
Property, Plant and Equipment [Abstract]
Property and equipment, net	Property and equipment consists of the following: March 31, December 31, 2016 2015 (in thousands) Computer equipment $ 50,788 $ 48,192 Computer software 12,916 12,484 Furniture, fixtures and equipment 2,908 2,804 Scanner appliances 23,487 22,627 Leasehold improvements 3,571 3,367 Total property and equipment 93,670 89,474 Less: accumulated depreciation and amortization (61,884 ) (58,145 ) Property and equipment, net $ 31,786 $ 31,329

Goodwill and Intangible Asset20

Goodwill and Intangible Assets, Net (Tables)	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Carrying value of intangible assets	The carrying values of intangible assets are as follows (in thousands): March 31, 2016 December 31, 2015 Estimated Lives Cost Accumulated Amortization Net Book Value Accumulated Amortization Net Book Value Existing technology 7 years $ 1,910 $ (1,524 ) $ 386 $ (1,456 ) $ 454 Patent license 14 years 1,388 (547 ) 841 (522 ) 866 Total intangibles subject to amortization $ 3,298 $ (2,071 ) 1,227 $ (1,978 ) 1,320 Intangible assets not subject to amortization 40 40 Total intangible assets, net $ 1,267 $ 1,360
Intangible assets future periods amortization expense	As of March 31, 2016 , the Company expects amortization expense in future periods to be as follows (in thousands): Remainder of 2016 $ 280 2017 282 2018 100 2019 100 2020 100 2021 and thereafter 365 Total expected future amortization expense $ 1,227

Commitments and Contingencies (

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 (in thousands): Remainder of 2016 $ 3,169 2017 2,782 2018 1,296 2019 873 2020 647 2021 and thereafter 398 Total minimum lease payments $ 9,165

Stock-based Compensation (Table

Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 2015 (in thousands) Cost of revenues $ 379 $ 328 Research and development 1,295 1,152 Sales and marketing 1,249 811 General and administrative 1,586 1,471 Total employee stock-based compensation $ 4,509 $ 3,762
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 March 31, 2016 2015 Expected term (in years) 5.0 to 5.9 4.9 to 5.9 Volatility 45% 47% to 48% Risk-free interest rate 1.3% 1.3% 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, 2015 7,579,058 $ 16.88 5.9 $ 131,345 Granted 549,700 $ 25.17 Exercised (462,737 ) $ 4.57 Canceled (258,628 ) $ 32.69 March 31, 2016 7,407,393 $ 17.71 5.8 $ 77,955 Vested and expected to vest - March 31, 2016 6,851,379 $ 16.57 5.5 $ 77,676 Exercisable - March 31, 2016 5,074,374 $ 11.54 4.9 $ 76,024
Restricted stock units activity	A summary of the Company’s RSU activity is as follows: Outstanding RSUs Weighted Average Fair Value December 31, 2015 47,500 $ 37.28 Granted 14,142 $ 25.17 Released (5,000 ) $ 37.28 Canceled (42,500 ) $ 37.28 March 31, 2016 14,142 $ 25.17 Outstanding and expected to vest 14,142 $ 25.17

Other Income (Expense), Net (Ta

Other Income (Expense), Net (Tables)	3 Months Ended
	Mar. 31, 2016
Other Income and Expenses [Abstract]
Schedule of Other Nonoperating Income (Expense)	Other income (expense), net consists of the following: Three Months Ended March 31, 2016 2015 (in thousands) Foreign exchange losses $ (31 ) $ (151 ) Other income (expense) (38 ) (27 ) Other income (expense), net $ (69 ) $ (178 )

Segment Information and Infor24

Segment Information and Information about Geographic Area (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 2015 (in thousands) United States $ 32,689 $ 26,341 Foreign 13,559 11,152 Total revenues $ 46,248 $ 37,493 Property and equipment, net, by geographic area, are as follows: March 31, December 31, 2016 2015 (in thousands) United States $ 25,736 $ 25,623 Foreign 6,050 5,706 Total property and equipment, net $ 31,786 $ 31,329

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 2015 (in thousands, except per share data) Numerator: Net income $ 4,783 $ 3,002 Denominator: Weighted-average shares used in computing net income per share: Basic 34,619 33,775 Effect of potentially dilutive securities: Common stock options 3,219 4,460 Diluted 37,838 38,235 Net income per share: Basic $ 0.14 $ 0.09 Diluted $ 0.13 $ 0.08
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 March 31, 2016 2015 (in thousands) Common stock options 3,115 535

The Company and Summary of Si26

The Company and Summary of Significant Accounting Policies (Details) $ in Millions	Mar. 31, 2016USD ($)customer	Dec. 31, 2015USD ($)customer
Software Development Costs
Software development cost capitalized | $	$ 0.6	$ 0.4
Accounts Receivable | Customer Concentration Risk
Concentration Risk [Line Items]
Concentration risk, number of customers | customer	0	0

Fair Value of Financial Instr27

Fair Value of Financial Instruments - Cash and Cash Equivalents, Available-for-sale Securities Reconciliation (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	$ 240,293	$ 222,454
Unrealized Gains	74	6
Unrealized Losses	(44)	(217)
Fair Value	240,323	222,243
Cash and cash equivalents
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	112,470	91,696
Unrealized Gains	1	2
Unrealized Losses	0	0
Fair Value	112,471	91,698
Short-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	93,228	87,317
Unrealized Gains	30	4
Unrealized Losses	(20)	(53)
Fair Value	93,238	87,268
Long-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	34,595	43,441
Unrealized Gains	43	0
Unrealized Losses	(24)	(164)
Fair Value	34,614	43,277
Cash | Cash and cash equivalents
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	69,001	61,372
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	69,001	61,372
Money market funds | Cash and cash equivalents
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	31,872	3,980
Unrealized Gains	0	0
Unrealized Losses	0	0
Fair Value	31,872	3,980
Commercial paper | Cash and cash equivalents
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	11,597	17,345
Unrealized Gains	1	1
Unrealized Losses	0	0
Fair Value	11,598	17,346
Commercial paper | Short-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	6,823	10,447
Unrealized Gains	6	1
Unrealized Losses	0	0
Fair Value	6,829	10,448
Corporate bonds | Short-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	12,370	12,448
Unrealized Gains	1	0
Unrealized Losses	(2)	(13)
Fair Value	12,369	12,435
Corporate bonds | Long-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	4,592	3,751
Unrealized Gains	11	0
Unrealized Losses	(4)	(4)
Fair Value	4,599	3,747
Asset backed securities | Short-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	678
Unrealized Gains	0
Unrealized Losses	0
Fair Value	678
Asset backed securities | Long-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	5,987	7,007
Unrealized Gains	2	0
Unrealized Losses	(5)	(18)
Fair Value	5,984	6,989
US government agencies | Cash and cash equivalents
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost		8,999
Unrealized Gains		1
Unrealized Losses		0
Fair Value		9,000
US government agencies | Short-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	73,357	64,422
Unrealized Gains	23	3
Unrealized Losses	(18)	(40)
Fair Value	73,362	64,385
US government agencies | Long-term investments
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Amortized Cost	24,016	32,683
Unrealized Gains	30	0
Unrealized Losses	(15)	(142)
Fair Value	$ 24,031	$ 32,541

Fair Value of Financial Instr28

Fair Value of Financial Instruments - Fair Value Hierarchy (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	$ 139,450	$ 156,891
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	139,450	156,891
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	18,427	27,794
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	18,427	27,794
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	97,393	105,926
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	97,393	105,926
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	16,968	16,182
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	16,968	16,182
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	6,662	6,989
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	6,662	6,989
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	139,450	156,891
Fair Value | Commercial paper | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	18,427	27,794
Fair Value | US government agencies | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	97,393	105,926
Fair Value | Corporate bonds | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	16,968	16,182
Fair Value | Asset backed securities | Recurring Basis
Assets, Fair Value Disclosure [Abstract]
Available-for-sale securities, fair value	$ 6,662	$ 6,989

Fair Value of Financial Instr29

Fair Value of Financial Instruments - Contractual Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Mature within One Year	$ 109,435	$ 113,614
After One Year through Two Years	25,224	39,699
Over Two Years	4,791	3,578
Fair Value	139,450	156,891
Commercial paper
Schedule of Available-for-sale Securities [Line Items]
Mature within One Year	18,427	27,794
After One Year through Two Years	0	0
Over Two Years	0	0
Fair Value	18,427	27,794
US government agencies
Schedule of Available-for-sale Securities [Line Items]
Mature within One Year	73,362	73,385
After One Year through Two Years	24,031	32,541
Over Two Years	0	0
Fair Value	97,393	105,926
Corporate bonds
Schedule of Available-for-sale Securities [Line Items]
Mature within One Year	16,968	12,435
After One Year through Two Years	0	3,747
Over Two Years	0	0
Fair Value	16,968	16,182
Asset backed securities
Schedule of Available-for-sale Securities [Line Items]
Mature within One Year	678	0
After One Year through Two Years	1,193	3,411
Over Two Years	4,791	3,578
Fair Value	$ 6,662	$ 6,989

Fair Value of Financial Instr30

Fair Value of Financial Instruments - Derivatives (Details) € in Millions, £ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)	Mar. 31, 2015USD ($)	Mar. 31, 2016GBP (£)contract	Mar. 31, 2016EUR (€)contract	Mar. 31, 2016USD ($)contract	Dec. 31, 2015GBP (£)contract	Dec. 31, 2015EUR (€)contract	Dec. 31, 2015USD ($)contract
Derivatives, Fair Value [Line Items]
Foreign currency contract, asset, fair value disclosure								$ 0
Foreign currency transaction gains (losses)	$ (31,000)	$ (151,000)
Forward Contracts
Derivatives, Fair Value [Line Items]
Derivative, number of instruments held | contract			2	2	2	2	2	2
Derivative, notional amount			£ 4.2	€ 6.9		£ 2.6	€ 6.1
Foreign currency contract, asset, fair value disclosure					$ 0
Derivative instruments not designated as hedging instruments, gain	(400,000)	800,000
Foreign currency transaction gains (losses)	$ 400,000	$ (900,000)

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment	$ 93,670		$ 89,474
Less: accumulated depreciation and amortization	(61,884)		(58,145)
Property and equipment, net	31,786		31,329
Depreciation and amortization expense	3,700	$ 3,100
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment	50,788		48,192
Computer software
Property, Plant and Equipment [Line Items]
Property and equipment	12,916		12,484
Furniture, fixtures and equipment
Property, Plant and Equipment [Line Items]
Property and equipment	2,908		2,804
Scanner appliances
Property, Plant and Equipment [Line Items]
Property and equipment	23,487		22,627
Scanner appliances and other computer equipment subject to subscription
Property, Plant and Equipment [Line Items]
Property and equipment, net	9,000		8,400
Scanner appliances and other computer equipment not placed in service
Property, Plant and Equipment [Line Items]
Property and equipment	1,600		1,400
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment	3,571		3,367
Other fixed assets not placed in service
Property, Plant and Equipment [Line Items]
Property and equipment	$ 5,400		$ 4,300

Goodwill and Intangible Asset32

Goodwill and Intangible Assets, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Schedule of Goodwill and Intangible Assets [Line Items]
Cost	$ 3,298		$ 3,298
Accumulated Amortization	(2,071)		(1,978)
Net Book Value	1,227		1,320
Intangible assets not subject to amortization	40		40
Total intangible assets, net	1,267		1,360
Amortization of intangible assets	100	$ 100
Goodwill	$ 317		317
Existing technology
Schedule of Goodwill and Intangible Assets [Line Items]
Estimated Lives	7 years
Cost	$ 1,910		1,910
Accumulated Amortization	(1,524)		(1,456)
Net Book Value	$ 386		454
Patent license
Schedule of Goodwill and Intangible Assets [Line Items]
Estimated Lives	14 years
Cost	$ 1,388		1,388
Accumulated Amortization	(547)		(522)
Net Book Value	$ 841		$ 866

Goodwill and Intangible Asset33

Goodwill and Intangible Assets, Net Future Amortization (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2016	$ 280
2,017	282
2,018	100
2,019	100
2,020	100
2021 and thereafter	365
Net Book Value	$ 1,227	$ 1,320

Commitments and Contingencies

Commitments and Contingencies - Lease Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 1.7	$ 1.6
Deferred rent credit	$ 0.5		$ 0.5

Commitments and Contingencies35

Commitments and Contingencies - Schedule of Leases (Details) $ in Thousands	Mar. 31, 2016USD ($)
Operating Leases
Remainder of 2016	$ 3,169
2,017	2,782
2,018	1,296
2,019	873
2,020	647
2021 and thereafter	398
Total minimum lease payments	$ 9,165

Stock-based Compensation - Sto

Stock-based Compensation - Stock Options (Details) - 2012 Equity Incentive Plan	Mar. 31, 2016shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	8,069,184
Number of shares available for grant	3,075,341

Stock-based Compensation - Exp

Stock-based Compensation - Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation	$ 4,509	$ 3,762
Non-employee share-based compensation expense		100
Stock Options
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Unrecognized employee compensation cost	$ 23,100
Unrecognized employee compensation cost, period for recognition	2 years 6 months
Cost of revenues
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation	$ 379	328
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation	1,295	1,152
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation	1,249	811
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Total employee stock-based compensation	$ 1,586	$ 1,471

Stock-based Compensation - Fai

Stock-based Compensation - Fair Value Assumptions, Stock Options (Details)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility	45.00%
Risk-free interest rate	1.30%	1.30%
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	0.00%	0.00%
Minimum | Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	5 years	4 years 10 months 24 days
Volatility		47.00%
Maximum | Stock Options
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
Volatility		48.00%

Stock-based Compensation - S39

Stock-based Compensation - Stock Option Plan Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Outstanding Shares
Beginning balance (in shares)	7,579,058
Granted (in shares)	549,700
Exercised (in shares)	(462,737)
Canceled (in shares)	(258,628)
Ending balance (in shares)	7,407,393
Vested and expected to vest (in shares)	6,851,379
Exercisable (in shares)	5,074,374
Weighted Average Exercise Price
Weighted average exercise price, Beginning balance (in dollars per share)	$ 16.88
Weighted average exercise price, granted (in dollars per share)	25.17
Weighted average exercise price, exercised (in dollars per share)	4.57
Weighted average exercise price, canceled (in dollars per share)	32.69
Weighted average exercise price, Ending balance (in dollars per share)	17.71
Weighted average exercise price, Vested and expected to vest (in dollars per share)	16.57
Weighted average exercise price, Exercisable (in dollars per share)	$ 11.54
Weighted Average Remaining Contractual Life
Weighted average remaining contractual life (in years)	5 years 9 months 18 days	5 years 10 months 24 days
Weighted average remaining contractual life, Vested and expected to vest (in years)	5 years 6 months
Weighted average remaining contractual life, Exercisable (in years)	4 years 10 months 24 days
Aggregate Intrinsic Value
Aggregate intrinsic value	$ 77,955		$ 131,345
Aggregate intrinsic value, Vested and expected to vest	77,676
Aggregate intrinsic value, Exercisable	$ 76,024

Stock-based Compensation - Res

Stock-based Compensation - Restricted Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Weighted Average Fair Value
Total employee stock-based compensation	$ 4,509	$ 3,762
Restricted Stock Units
Outstanding RSUs
Beginning balance (in shares)	47,500
Granted (in shares)	14,142
Released (in shares)	(5,000)
Canceled (in shares)	(42,500)
Ending balance (in shares)	14,142
Outstanding and expected to vest (in shares)	14,142
Weighted Average Fair Value
Beginning balance (usd per share)	$ 37.28
Granted (usd per share)	25.17
Released (usd per share)	37.28
Canceled (usd per share)	37.28
Ending balance (usd per share)	25.17
Outstanding and expected to vest (usd per share)	$ 25.17
Total employee stock-based compensation	$ 200
Unrecognized employee compensation cost	$ 400
Unrecognized employee compensation cost, period for recognition	2 years 10 months 24 days

Other Income (Expense), Net (De

Other Income (Expense), Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Other Income and Expenses [Abstract]
Foreign exchange losses	$ (31)	$ (151)
Other income (expense)	(38)	(27)
Other income (expense), net	$ (69)	$ (178)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Provision for income taxes	$ 2,982	$ 1,841
Effective income tax rate	38.40%	38.00%
Unrecognized tax benefits	$ 4,000		$ 3,500
Unrecognized tax benefits that would impact effective tax rate	$ 2,400		$ 2,100

Segment Information and Infor43

Segment Information and Information about Geographic Area (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)segment	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Segment Reporting Information [Line Items]
Number of operating segments (in segment) | segment	1
Revenues	$ 46,248	$ 37,493
Property and equipment, net	31,786		$ 31,329
United States
Segment Reporting Information [Line Items]
Revenues	32,689	26,341
Property and equipment, net	25,736		25,623
Other
Segment Reporting Information [Line Items]
Revenues	13,559	$ 11,152
Property and equipment, net	$ 6,050		$ 5,706

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Numerator:
Net income	$ 4,783	$ 3,002
Denominator:
Basic (shares)	34,619	33,775
Common stock options (shares)	3,219	4,460
Diluted (shares)	37,838	38,235
Basic (USD per share)	$ 0.14	$ 0.09
Diluted (USD per share)	$ 0.13	$ 0.08
Stock Options
Antidilutive Securities
Antidilutive securities (shares)	3,115	535