Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 23, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ELLIE MAE INC | ||
Entity Central Index Key | 1,122,388 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 29,662,535 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 1,706,035,000 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 34,396 | $ 26,756 |
Short-term investments | 48,975 | 49,352 |
Accounts receivable, net of allowances for doubtful accounts of $124 and $66 as of December 31, 2015 and December 31, 2014, respectively | 28,568 | 20,403 |
Prepaid expenses and other current assets | 9,874 | 16,021 |
Total current assets | 121,813 | 112,532 |
Property and equipment, net | 81,360 | 28,694 |
Long-term investments | 55,473 | 58,679 |
Intangible assets, net | 22,810 | 21,452 |
Goodwill | 74,547 | 65,338 |
Deposits and other assets | 8,888 | 3,425 |
Total assets | 364,891 | 290,120 |
Current liabilities: | ||
Accounts payable | 9,911 | 6,726 |
Accrued and other current liabilities | 37,307 | 16,822 |
Acquisition holdback, net of discount | 0 | 522 |
Deferred revenue | 15,864 | 9,729 |
Total current liabilities | 63,082 | 33,799 |
Leases payable, net of current portion | 685 | 443 |
Other long-term liabilities | 10,273 | 2,994 |
Total liabilities | $ 74,040 | $ 37,236 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Common stock, $0.0001 par value per share; 140,000,000 authorized shares, 29,566,511 and 28,907,147 shares issued and outstanding as of December 31, 2015 and December 31, 2014, respectively | $ 3 | $ 3 |
Additional paid-in capital | 285,342 | 242,527 |
Accumulated other comprehensive loss | (257) | (95) |
Retained earnings | 5,763 | 10,449 |
Total stockholders’ equity | 290,851 | 252,884 |
Total liabilities and stockholders’ equity | $ 364,891 | $ 290,120 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances for doubtful accounts | $ 124 | $ 66 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 140,000,000 | 140,000,000 |
Common stock, shares issued | 29,566,511 | 28,907,147 |
Common stock, shares outstanding | 29,566,511 | 28,907,147 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Revenues | $ 64,867,000 | $ 68,939,000 | $ 65,942,000 | $ 54,189,000 | $ 46,577,000 | $ 42,798,000 | $ 39,984,000 | $ 32,178,000 | $ 253,937,000 | $ 161,537,000 | $ 128,481,000 |
Cost of revenues | 23,555,000 | 22,441,000 | 20,862,000 | 17,350,000 | 14,720,000 | 11,669,000 | 10,576,000 | 9,318,000 | 84,208,000 | 46,283,000 | 32,630,000 |
Gross profit | 41,312,000 | 46,498,000 | 45,080,000 | 36,839,000 | 31,857,000 | 31,129,000 | 29,408,000 | 22,860,000 | 169,729,000 | 115,254,000 | 95,851,000 |
Operating expenses: | |||||||||||
Sales and marketing | 10,562,000 | 9,082,000 | 8,804,000 | 9,760,000 | 7,753,000 | 6,245,000 | 6,451,000 | 6,095,000 | 38,208,000 | 26,544,000 | 21,331,000 |
Research and development | 11,734,000 | 11,138,000 | 9,282,000 | 8,297,000 | 8,880,000 | 6,456,000 | 6,077,000 | 6,815,000 | 40,451,000 | 28,228,000 | 24,695,000 |
General and administrative | 14,103,000 | 16,658,000 | 14,149,000 | 12,302,000 | 11,261,000 | 9,556,000 | 9,551,000 | 8,993,000 | 57,212,000 | 39,361,000 | 30,853,000 |
Total operating expenses | 36,399,000 | 36,878,000 | 32,235,000 | 30,359,000 | 27,894,000 | 22,257,000 | 22,079,000 | 21,903,000 | 135,871,000 | 94,133,000 | 76,879,000 |
Income from operations | 4,913,000 | 9,620,000 | 12,845,000 | 6,480,000 | 3,963,000 | 8,872,000 | 7,329,000 | 957,000 | 33,858,000 | 21,121,000 | 18,972,000 |
Other income, net | 180,000 | 154,000 | 153,000 | 132,000 | 145,000 | 134,000 | 109,000 | 100,000 | 619,000 | 488,000 | 460,000 |
Income before income taxes | 5,093,000 | 9,774,000 | 12,998,000 | 6,612,000 | 4,108,000 | 9,006,000 | 7,438,000 | 1,057,000 | 34,477,000 | 21,609,000 | 19,432,000 |
Income tax provision | 271,000 | 3,552,000 | 5,368,000 | 3,028,000 | (192,000) | 3,989,000 | 2,714,000 | 275,000 | 12,219,000 | 6,786,000 | 6,114,000 |
Net income | $ 4,822,000 | $ 6,222,000 | $ 7,630,000 | $ 3,584,000 | $ 4,300,000 | $ 5,017,000 | $ 4,724,000 | $ 782,000 | $ 22,258,000 | $ 14,823,000 | $ 13,318,000 |
Net income per share of common stock: | |||||||||||
Basic (USD per share) | $ 0.16 | $ 0.21 | $ 0.26 | $ 0.12 | $ 0.15 | $ 0.18 | $ 0.17 | $ 0.03 | $ 0.76 | $ 0.53 | $ 0.50 |
Diluted (USD per share) | $ 0.16 | $ 0.20 | $ 0.25 | $ 0.12 | $ 0.14 | $ 0.17 | $ 0.16 | $ 0.03 | $ 0.72 | $ 0.50 | $ 0.47 |
Weighted average common shares used in computing net income per share of common stock: | |||||||||||
Basic (in shares) | 29,483,605 | 29,363,621 | 29,092,149 | 28,768,144 | 28,457,087 | 28,007,770 | 27,617,142 | 27,339,394 | 29,179,352 | 27,858,828 | 26,581,962 |
Diluted (in shares) | 30,959,344 | 31,005,651 | 30,807,418 | 30,442,163 | 30,068,225 | 29,661,211 | 29,288,928 | 29,070,130 | 30,842,584 | 29,593,873 | 28,502,403 |
Net income | $ 4,822,000 | $ 6,222,000 | $ 7,630,000 | $ 3,584,000 | $ 4,300,000 | $ 5,017,000 | $ 4,724,000 | $ 782,000 | $ 22,258,000 | $ 14,823,000 | $ 13,318,000 |
Unrealized gain (loss) on investments | (319,000) | 27,000 | (41,000) | 171,000 | (58,000) | (75,000) | 75,000 | (3,000) | (162,000) | (61,000) | 31,000 |
Comprehensive income | $ 4,503,000 | $ 6,249,000 | $ 7,589,000 | $ 3,755,000 | $ 4,242,000 | $ 4,942,000 | $ 4,799,000 | $ 779,000 | $ 22,096,000 | $ 14,762,000 | $ 13,349,000 |
Consolidated Equity Statement
Consolidated Equity Statement - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] |
Balances, shares at Dec. 31, 2012 | 26,058,533 | ||||
Balances at Dec. 31, 2012 | $ 166,862,000 | $ 3,000 | $ 184,616,000 | $ (65,000) | $ (17,692,000) |
Issuance of common stock under stock incentive plans, shares | 1,462,566 | ||||
Issuance of common stock under stock incentive plans | 4,623,000 | 4,623,000 | |||
Shares withheld for employee taxes related to vested restricted stock units, shares | (6,344) | ||||
Shares withheld for employee taxes related to vested restricted stock units | (174,000) | (174,000) | |||
Issuance of common stock under employee stock purchase plan, shares | 109,270 | ||||
Shares withheld for employee taxes related to vested restricted stock units | 1,922,000 | $ 0 | 1,922,000 | ||
Stock-based compensation expense | 14,390,000 | 14,390,000 | |||
Excess tax benefit from exercise of stock options | 6,955,000 | 6,955,000 | |||
Unrealized gain (loss) on investments | 31,000 | 31,000 | |||
Net income | 13,318,000 | 13,318,000 | |||
Balances, shares at Dec. 31, 2013 | 27,624,025 | ||||
Balances at Dec. 31, 2013 | 207,927,000 | $ 3,000 | 212,332,000 | (34,000) | (4,374,000) |
Issuance of common stock under stock incentive plans, shares | 1,210,435 | ||||
Issuance of common stock under stock incentive plans | 7,537,000 | 7,537,000 | |||
Shares withheld for employee taxes related to vested restricted stock units, shares | (29,424) | ||||
Shares withheld for employee taxes related to vested restricted stock units | (902,000) | (902,000) | |||
Issuance of common stock under employee stock purchase plan, shares | 102,111 | ||||
Shares withheld for employee taxes related to vested restricted stock units | 2,624,000 | 2,624,000 | |||
Stock-based compensation expense | 15,084,000 | 15,084,000 | |||
Excess tax benefit from exercise of stock options | 5,852,000 | 5,852,000 | |||
Stock Repurchased During Period, Value | (75,000,000) | ||||
Unrealized gain (loss) on investments | (61,000) | (61,000) | |||
Net income | 14,823,000 | 14,823,000 | |||
Balances, shares at Dec. 31, 2014 | 28,907,147 | ||||
Balances at Dec. 31, 2014 | 252,884,000 | $ 3,000 | 242,527,000 | (95,000) | 10,449,000 |
Issuance of common stock under stock incentive plans, shares | 1,109,013 | ||||
Issuance of common stock under stock incentive plans | 10,094,000 | 10,094,000 | |||
Shares withheld for employee taxes related to vested restricted stock units, shares | (56,797) | ||||
Shares withheld for employee taxes related to vested restricted stock units | (3,552,000) | 3,552,000 | |||
Issuance of common stock under employee stock purchase plan, shares | 110,598 | ||||
Shares withheld for employee taxes related to vested restricted stock units | 4,105,000 | 4,105,000 | |||
Stock-based compensation expense | 25,367,000 | 25,367,000 | |||
Excess tax benefit from exercise of stock options | $ 11,387,000 | 11,387,000 | |||
Stock Repurchased During Period, Shares | (503,450) | (503,450) | |||
Stock Repurchased During Period, Value | $ (31,530,000) | (4,586,000) | (26,944,000) | ||
Unrealized gain (loss) on investments | (162,000) | 0 | (162,000) | ||
Net income | 22,258,000 | 22,258,000 | |||
Balances, shares at Dec. 31, 2015 | 29,566,511 | ||||
Balances at Dec. 31, 2015 | $ 290,851,000 | $ 3,000 | $ 285,342,000 | $ (257,000) | $ 5,763,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 22,258,000 | $ 14,823,000 | $ 13,318,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 10,842,000 | 5,605,000 | 4,727,000 |
Provision for uncollectible accounts receivable | 31,000 | 1,000 | 32,000 |
Amortization of intangible assets | 5,180,000 | 2,779,000 | 1,442,000 |
Impairment of Intangible Assets (Excluding Goodwill) | 562,000 | 1,968,000 | 0 |
Amortization of discount related to acquisition holdback | 0 | 36,000 | 106,000 |
Proceeds from Legal Settlements | 522,000 | 0 | 0 |
Stock-based compensation expense | 24,241,000 | 14,548,000 | 14,259,000 |
Excess tax benefit from exercise of stock options | (11,387,000) | (5,852,000) | (6,955,000) |
Impairment and loss on sale of property and equipment | 97,000 | 693,000 | 0 |
Deferred income taxes | 2,255,000 | 395,000 | (4,364,000) |
Amortization of investment premium | 1,033,000 | 1,280,000 | 1,614,000 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (7,974,000) | (8,380,000) | (2,303,000) |
Prepaid expenses and other current assets | 1,381,000 | (4,867,000) | 4,219,000 |
Deposits and other assets | (1,985,000) | (1,146,000) | (1,353,000) |
Accounts payable | 290,000 | 2,675,000 | 907,000 |
Accrued, other current and other liabilities | 35,079,000 | 13,436,000 | 3,437,000 |
Deferred revenue | 5,849,000 | 2,604,000 | (127,000) |
Net cash provided by operating activities | 87,230,000 | 40,598,000 | 28,959,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Acquisition of property and equipment | (24,768,000) | (6,813,000) | (1,823,000) |
Payments for Software | (27,608,000) | (13,021,000) | (4,269,000) |
Proceeds from Sale of Property, Plant, and Equipment | 58,000 | 0 | 0 |
Purchases of investments | (60,816,000) | (64,748,000) | (101,121,000) |
Maturities of investments | 63,204,000 | 57,986,000 | 56,899,000 |
Cash paid for acquisitions, net of cash acquired | (16,419,000) | (34,641,000) | (3,000,000) |
Other investing activities, net | 0 | 0 | 1,000,000 |
Net cash used in investing activities | (66,349,000) | (61,237,000) | (52,314,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Payment of capital lease obligations | (3,745,000) | (1,178,000) | (624,000) |
Proceeds from issuance of common stock under employee stock plans | 14,199,000 | 10,161,000 | 6,546,000 |
Payments for Repurchase of Common Stock | (31,530,000) | 0 | 0 |
Tax payments related to shares withheld for vested restricted stock units | (3,552,000) | (902,000) | (174,000) |
Excess tax benefit from stock-based compensation | 11,387,000 | 5,852,000 | 6,955,000 |
Net cash provided by (used in) financing activities | (13,241,000) | 13,933,000 | 12,703,000 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 7,640,000 | (6,706,000) | (10,652,000) |
CASH AND CASH EQUIVALENTS, Beginning of period | 26,756,000 | 33,462,000 | 44,114,000 |
CASH AND CASH EQUIVALENTS, End of period | 34,396,000 | 26,756,000 | 33,462,000 |
Supplemental disclosure of cash flow information: | |||
Cash paid for interest | 133,000 | 40,000 | 268,000 |
Cash paid for income taxes | 104,000 | 126,000 | 4,582,000 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Fixed asset purchases not yet paid | 3,662,000 | 921,000 | 884,000 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | 1,126,000 | 534,000 | 131,000 |
Acquisition of property and equipment under capital leases | $ 6,998,000 | $ 1,269,000 | $ 1,271,000 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | NOTE 1 — Description of Business Ellie Mae, Inc. (“Ellie Mae,” “the Company,” “we,” “our” or “us”) is a leading provider of innovative on-demand software solutions and services for the residential mortgage industry in the United States . The Company’s Encompass all-in-one mortgage management solution provides one system of record that allows banks, credit unions, and mortgage lenders to originate and fund mortgages and improve compliance, loan quality, and efficiency . |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | NOTE 2 — Basis of Presentation and Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of Ellie Mae and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. Applicable Accounting Guidance Any reference in these notes to applicable accounting guidance is meant to refer to the authoritative generally accepted accounting principles in the United States (“ U.S. GAAP ”), as found in the Financial Accounting Standards Board’s (“ FASB ”) Accounting Standards Codification (“ ASC ”). Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management evaluates estimates on a regular basis including those relating to revenue recognition, allowance for doubtful accounts, goodwill, intangible assets, valuation of deferred income taxes, stock-based compensation, and unrecognized tax benefits, among others. Actual results could differ from those estimates and such differences may have a material impact on the Company’s consolidated financial statements and footnotes. Cash and Cash Equivalents All highly liquid investments with original maturities of 90 days or less are considered to be cash equivalents. Cash equivalents are recorded at cost, which approximates fair value. Fair Value of Financial Instruments The fair values of the Company’s cash equivalents, accounts receivable, and accounts payable approximate their carrying values due to the short maturities of the instruments. The fair value of the Company’s capital lease obligations approximates the carrying value due to the terms continuing to approximate prevailing market terms. All of the Company’s investments that have maturities of greater than 90 days are classified as available-for-sale and are carried at fair value. The Company invests excess cash primarily in investment-grade interest-bearing securities, such as money market accounts, certificates of deposit, commercial paper, corporate bonds, municipal and government agency obligations, and guaranteed obligations of the U.S. government . Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates, and yield curves. The cost of available-for-sale marketable securities sold is based on the specific identification method. Unrealized gains and losses are reported in stockholders’ equity as accumulated other comprehensive (income) loss . Realized gains and losses are included in other income (expense), net . Interest and dividends are included in other income (expense), net when they are earned . Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable consist of amounts billed to customers in connection with sales of services. The Company analyzes individual trade accounts receivable by considering historical bad debts, customer creditworthiness, current economic trends, changes in customer payment terms, and collection trends when evaluating the adequacy of the allowance for doubtful accounts. Allowances for doubtful accounts are recognized in the period in which the associated receivable balance is not considered recoverable. Any change in the assumptions used in analyzing accounts receivable may result in changes to the allowance for doubtful accounts and is recognized in the period in which the change occurs. The Company writes off a receivable when all rights, remedies, and recourses against the account and its principals are exhausted and records a benefit when previously reserved accounts are collected. Concentration of Credit Risk The financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, investments, and accounts receivable. The Company’s cash and cash equivalents are deposited with major financial institutions in the United States. At times, such deposits may be in excess of federally insured limits. Management believes that the Company’s investments in cash equivalents and available-for-sale investments are financially sound. The Company’s accounts receivable are derived from revenue earned from customers located in the United States. The Company had no customers that represented 10% or more of revenues for the years ended December 31, 2015, 2014, and 2013 . No customer represented more than 10% of accounts receivable as of December 31, 2015 and 2014 . Software and Website Development Costs The Company capitalizes internal and external costs incurred to develop internal-use software and website applications. Capitalized internal costs include salaries, benefits, and stock-based compensation charges for employees that are directly involved in developing the software or website application, and depreciation of assets used in the development process. Capitalized external costs include third-party consultants involved in the development process, as well as other direct costs incurred therein. Capitalization of costs begins when the preliminary project stage has been completed, management authorizes and commits to funding a project and it is probable that the project will be completed and the software or website application will be used to perform the function intended. Internal and external costs incurred as part of the preliminary project stage are expensed as incurred. Capitalization ceases at the point at which the project is substantially complete and ready for its intended use. Internal and external training costs and maintenance costs during the post-implementation operation stage are expensed as incurred. Internal-developed core software is amortized on a straight-line basis over its estimated useful life, generally three to five years. Amortization of product related internal-use software and website applications is typically recorded to cost of revenues, and amortization of other internal-use software and website applications is typically recorded to the operating expense line to which it most closely relates. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. The capitalized costs are included in property and equipment, net in the accompanying consolidated balance sheets. For the years ended December 31, 2015 , 2014 and 2013 , the Company capitalized software and website application development costs of $29.4 million , $15.9 million , and $5.1 million , respectively. During the year ended December 31, 2014 , the Company recorded a $0.7 million impairment loss on the write-off of internal-use software. There were no such write-offs during the years ended December 31, 2015 and 2013 . Property and Equipment Property and equipment are stated at cost less accumulated depreciation and are depreciated on a straight-line basis over their estimated useful lives, which is generally three to seven years. Leasehold improvements are amortized on a straight-line basis over their estimated useful lives or over the term of the lease, whichever is shorter. Business Combinations The Company recognizes and measures the identifiable assets acquired in a business combination, the liabilities assumed and any non-controlling interest in the acquiree, at their fair values as of the acquisition date. The Company recognizes contingent consideration arrangements at their acquisition-date fair values with subsequent changes in fair value reflected in earnings, recognizes pre-acquisition loss and gain contingencies at their acquisition-date fair values (with certain exceptions), capitalizes in-process research and development assets and expenses acquisition-related transaction costs as incurred. Due to the inherent uncertainty in the estimates and assumptions used by the Company in its fair value measurements, recorded amounts may be subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of assets acquired and liabilities assumed, with the corresponding offset to goodwill. Any subsequent adjustments, including changes in accounting for deferred tax asset valuation allowances and acquired income tax uncertainties after the measurement period, are recognized in earnings rather than as an adjustment to the cost of the acquisition. Goodwill The Company records goodwill in a business combination when the consideration paid exceeds the fair value of the identifiable net assets acquired. Goodwill is not amortized, but is tested for impairment at least annually in the fourth quarter of the Company’s fiscal year, or whenever changes in circumstances indicate that the fair value of a reporting unit is less than its carrying amount, including goodwill. The annual test is performed at the reporting unit level using a fair-value based approach. The Company’s operations are organized as one reporting unit. In testing for a potential impairment of goodwill, the Company first compares the net aggregate carrying value of assets and liabilities to the aggregate estimated fair value of the Company. If estimated fair value is less than carrying value, then potential impairment exists. The amount of any impairment is then calculated by determining the implied fair value of goodwill using a hypothetical purchase price allocation. Impairment is equivalent to any excess of goodwill carrying value over its implied fair value. There were no impairment charges related to goodwill during the years ended December 31, 2015 , 2014 , and 2013 . The process of evaluating the potential impairment of goodwill requires significant judgment at many points during the analysis, including calculating fair value of the reporting unit based on estimated future cash flows and discount rates to be applied. Intangible Assets Intangible assets are stated at cost less accumulated amortization. Intangible assets include developed technology, trade names, and customer lists and contracts. Intangible assets with finite lives are amortized on a straight-line basis over the estimated periods of benefit, as follows: Developed technology 2-5 years Trade names with finite lives 2-3 years Customer lists and contracts 4-9 years The AllRegs tradename is the only intangible asset with an indefinite useful life. The Company evaluates the remaining useful life of indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support an indefinite useful life. The Company evaluates its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to future undiscounted net cash flows expected to be generated by the asset or asset group. If such assets or asset groups are considered to be impaired, the impairment loss to be recognized is measured by the amount by which the carrying amounts of the assets or asset groups exceed the fair value of the assets or asset groups. Assets to be disposed of are reported at the lower of the carrying amount and fair value less costs to sell. Except as described in Note 6 , there has been no loss on impairment or disposal of intangible assets. Impairment of Long-Lived Assets The Company evaluates its long-lived assets for indications of possible impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Except for the impairment losses recorded on internal-use software and intangible assets described elsewhere in this note, there has been no loss on impairment or disposal of long-lived assets. Revenue Recognition The Company generates revenue primarily from transaction-based fees and fees for software and related services. On-demand revenue is generated from company-hosted software subscriptions that customers access through the Internet and from customers that pay fees based on a per closed loan, or success, basis subject to monthly base fees, which the Company refers to as Success-Based Pricing. Additionally, on-demand revenue is comprised of software services sold transactionally; Ellie Mae Network transaction fees; education and training, loan product, and guideline data and analytics services under the AllRegs brand ; and professional services which include consulting, implementation, and training services. On-premise revenue is generated from maintenance services, sales of customer-hosted software licenses, and related professional services. Sales taxes assessed by governmental authorities are excluded from revenue. The Company commences revenue recognition when all of the following conditions are satisfied: • There is persuasive evidence of an arrangement; • The service has been or is being provided to the customer; • The collection of the fees is reasonably assured; and • The amount of fees to be paid by the customer is fixed or determinable. On-Demand Revenues Subscription Services and Usage-Based Fee Arrangements. Subscription services and usage-based fee arrangements generally include a combination of the Company’s products delivered as software-as-a-service (“SaaS”) and support services. These arrangements are generally non-cancelable and do not contain refund-type provisions. This revenue typically includes the following: SaaS Encompass Revenue. The Company offers web-based, on-demand access to Encompass software for a monthly recurring fee. The Company provides the right to access its loan origination software and handles the responsibility of managing the servers, providing security, backing up the data and applying updates. Customers under SaaS arrangements do not take possession of the software at any time during the term of the agreement. Subscription revenue is recognized ratably over the contract terms as subscription services are provided, beginning on the commencement date of each contract, which is the date the Company’s service is made available to customers. Contracts generally range from one year to five years . Alternatively, customers can elect to pay on a success basis. Success basis contracts generally have a term of one to five years and are subject to monthly base fees, which enable customers to close loans up to a contractually agreed-to minimum number of transactions, and additional closed loan fees, which are assessed for loans closed in excess of the minimum. Revenue is earned from both base fees and additional closed loan fees as the result of the customer’s usage of Encompass. Monthly base fees are recognized over the respective monthly service period as the subscription services are provided. Additional closed loans fees are recognized when the loans are reported as closed. This offering also includes Encompass CenterWise, Encompass Compliance Service, and Encompass Docs Solution as integrated components, which are combined elements of the arrangement that are delivered in conjunction with the SaaS Encompass offering and therefore are not accounted for separately. Encompass CenterWise Revenue. Encompass CenterWise is a bundled offering of electronic document management (“EDM”) and websites used for customer relationship management. Generally, revenue is recognized for Encompass CenterWise after the service is rendered, except when Encompass CenterWise is automatically included as an integrated component of the SaaS Encompass offering, in which case the associated revenue is recognized as described above. Services Revenue. The Company provides a variety of mortgage-related and other business services, including automated documentation; fraud detection, valuation, validation, and risk analysis; income verification; marketing and customer relationship management; flood zone certifications; and compliance reports. Services revenue is recognized upon completion of the services. Transactional Revenue. The Company has entered into agreements with various lenders, service providers and certain government-sponsored entities participating in the mortgage origination process that provide them access to, and ability to interoperate with, mortgage originators on the Ellie Mae Network. Under these agreements, the Company earns transaction fees when transactions are processed through the Ellie Mae Network. Transaction revenue is recognized when there is evidence that the qualifying transactions have occurred on the Ellie Mae Network and collection of the resulting receivable is reasonably assured. Subscriptions to Online Research and Data Resources: The Company provides mortgage originators and underwriters with access to online databases of various federal and state laws and regulations and forms as well as mortgage investor product guidelines. Subscription fees are recognized ratably over the subscription term as subscription services are provided, which is typically one year. Professional Services Revenue: Professional services revenue is generally recognized when milestones are achieved for fixed price contracts or as the services are rendered for time and material contracts. The majority of the Company’s professional services contracts are on a fixed price basis. Training revenue is recognized as the services are rendered. On-Premise Revenue Revenue from the sale of software licenses is recognized in the month in which the required revenue recognition criteria are met, generally in the month in which the software is delivered. Revenue from the sale of maintenance services and professional services is recognized over the period in which the services are provided. Multiple Element Arrangements The Company has entered into both subscription services and software arrangements with multiple elements. For arrangements with multiple deliverables , the Company evaluates whether the individual deliverables qualify as separate units of accounting. In order to treat deliverables in a multiple-deliverable arrangement as separate units of accounting, the deliverables must have standalone value upon delivery. Subscription services agreements with multiple elements generally include multiple subscriptions and professional services. When such agreements involve multiple elements that qualify as separate units of accounting, the Company allocates arrangement consideration to all deliverables at the inception of an arrangement based on the relative selling price method in accordance with the selling price hierarchy, which includes: (i) vendor specific objective evidence (“VSOE”) if it is available; (ii) third-party evidence (“TPE”) if VSOE is not available; and (iii) the best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. VSOE. The Company determines VSOE based on its historical pricing and discounting practices for the specific product or service when sold separately. In determining VSOE, the Company requires that a substantial majority of the selling prices for these services fall within a reasonably narrow pricing range. The Company has not historically priced its subscription services within a narrow range. As a result, the Company has not been able to establish selling prices for subscription services based on VSOE. TPE. When VSOE cannot be established for deliverables in multiple element arrangements, the Company applies judgment with respect to whether it can establish a selling price based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, the Company’s go-to-market strategy differs from that of its peers and its offerings contain a significant level of differentiation such that the comparable pricing of services with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine what similar competitor services’ selling prices are on a standalone basis. As a result, the Company has not been able to establish selling prices based on TPE. BESP. When the Company is unable to establish a selling price using VSOE or TPE, the Company uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the service was sold on a standalone basis. When establishing BESP, the Company reviews company specific factors used to determine list price and makes adjustments as appropriate to reflect current market conditions and pricing behavior. The Company’s process for establishing list price includes assessing the cost to provide a particular product or service, surveying customers to determine market expectations, analyzing customer demographics, and taking into account similar products and services historically sold by the Company. The Company continues to review the factors used to establish list price and adjusts BESP as necessary. Because the Company has determined that neither VSOE nor TPE is available, it uses BESP to allocate the selling price to multiple elements in subscription services arrangements. The amount of revenue allocated to delivered items is limited by contingent revenue, if any. Subscription services have standalone value as such services are often sold separately. Additionally, the Company has concluded that professional services included in multiple element arrangements have standalone value. In establishing standalone value, the Company considered the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, and the timing of when the professional services contract was signed in comparison to the subscription service start date. For software arrangements with multiple elements (e.g., maintenance and support contracts bundled with licenses), revenue is allocated to the delivered elements of the arrangement when VSOE is determinable, using the residual value method based on objective evidence of the fair value of the undelivered elements, which is specific to the Company. When VSOE is not determinable, the entire arrangement is recognized ratably over the term of the contract. Revenue is recognized under this model upon receipt of cash payment from the customer if collectability is not reasonably assured and when other revenue recognition criteria have been met. The VSOE of fair value for maintenance and support obligations related to licenses is based upon the prices paid for the separate renewal of these services by customers. Maintenance revenues are recognized ratably over the period of the maintenance contract. Deferred Revenue Deferred revenue represents billings or payments received in advance of revenue recognition and is recognized as the revenue recognition criteria are met. Balances consist primarily of prepaid subscription services and professional, training, and maintenance services not yet provided as of the balance sheet date. Deferred revenue that will be recognized during the succeeding 12 month period is recorded as current deferred revenue, and the remaining portion is recorded as other long-term liabilities. Long-term deferred revenue at December 31, 2015 and 2014 was not material. Deferred Commission Expense Deferred commission expenses are the incremental costs that are directly associated with non-cancelable subscription contracts with customers and consist of sales commissions paid to our direct sales force. Commissions are calculated based on a percentage of the revenues for the non-cancelable term of subscription contracts, which are typically one to five years . The deferred commission expense amounts are recoverable through the future revenue streams under the non-cancelable customer contracts. The plans also include claw back provisions, which require repayment of a proportionate amount of commissions, should customers cancel their contracts prior to the end of the initial contractual term. During the years ended December 31, 2015 , 2014 , and 2013 , the Company deferred $3.6 million , $2.5 million , and $1.9 million of commission expense, respectively. At December 31, 2015 and 2014 , $5.3 million and $3.3 million of deferred commission remained on our consolidated balance sheets, respectively. Warranties and Indemnification The Company provides a warranty for its software products and services to its customers and accounts for its warranties as a contingent liability. The Company’s software is generally warranted to perform substantially as described in the associated product documentation and to satisfy defined levels of uptime reliability. The Company’s services are generally warranted to be performed consistent with industry standards. The Company has not provided for a warranty accrual as of December 31, 2015 or 2014 . To date, the Company’s product warranty expense has not been significant. The Company generally agrees to indemnify its customers against legal claims that the Company’s software products infringe certain third-party intellectual property rights and accounts for its indemnification obligations as a contingent liability. In addition, the Company may also incur liability under its contracts if it breaches its warranties as well as certain data security and/or confidentiality obligations. To date, the Company has not been required to make any payment resulting from either infringement claims asserted against its customers or from claims in connection with a breach of the data security and/or confidentiality obligations in the Company’s contracts. The Company has not recorded a liability for related costs as of December 31, 2015 or 2014 . The Company has obligations under certain circumstances to indemnify each executive officer and member of the Company’s board of directors against judgments, fines, settlements, and expenses related to claims against such executive officer or director and otherwise to the fullest extent permitted under Delaware law and the Company’s bylaws and certificate of incorporation. Cost of Revenues The Company’s cost of revenues consists primarily of salaries, benefits and related costs (including stock-based compensation), allocated facilities costs, customer support, data centers, expenses for document preparation, income verification, and compliance services, depreciation on computer equipment used in supporting the Ellie Mae Network , the Company’s SaaS Encompass and Encompass CenterWise offerings, amortization of acquired intangible assets and capitalized internal-use software and website applications directly involved in revenue producing activities and professional services associated with implementation of software. Research and Development Costs The Company’s research and development expenses consist primarily of: salaries and benefits, including bonuses and stock-based compensation expense; fees to contractors engaged in the development and support of the Ellie Mae Network , Encompass software and other products; and allocated facilities costs. Research and development costs that are not capitalized as internal-use software are expensed as they are incurred. Advertising Expenses The Company expenses advertising costs as incurred. Advertising expenses for the years ended December 31, 2015, 2014, and 2013 were $0.7 million , $0.4 million , and $0.4 million , respectively. Stock-Based Compensation The Company recognizes stock-based compensation related to awards granted under its 2009 Stock Option and Incentive Plan (the “ 2009 Plan ”), 2011 Equity Incentive Award Plan (the “ 2011 Plan ”), and Employee Stock Purchase Plan (“ ESPP ”). The Company recognizes compensation expense related to stock option grants that are ultimately expected to vest based on estimated fair values on the date of grant using the Black-Scholes option-pricing model. Such expense is recognized on a straight-line basis over the requisite service period of the award, which generally equals the vesting period. The Company recognizes compensation expense related to Restricted Stock Units (“ RSUs ”), Performance-Vesting Restricted Stock Units and Performance Awards (“ Performance Awards ”) based on the fair market value of the underlying shares of common stock as of the date of grant. Expense related to the RSUs is recognized on a straight-line basis over the requisite service period of the award, which generally equals the vesting period. Expense related to the Performance Awards and Performance-Vesting RSUs is recognized under the graded vesting method over the requisite service period of the award, which results in the recognition of a larger portion of the expense during the beginning of the vesting period than in the end of the vesting period. Management estimates the probable number of shares of common stock that will be granted until the achievement of the performance goals is known. The date of grant is the date at which the Company and the employee reach a mutual understanding of the key terms and conditions of the award, appropriate approvals are received by approval by the equity incentive committee of the board of directors and the Company becomes contingently obligated to issue equity instruments to the employee who renders the requisite service . The Company is required to estimate potential forfeitures of stock grants and adjust recorded compensation cost accordingly. The estimate of forfeitures is based on historical experience and is adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from the prior estimates. Changes in estimated forfeitures will be recognized in the period of change and will impact the amount of stock-based compensation expense to be recognized in future periods . All stock option awards to non-employees are accounted for at the fair value of the consideration received or the fair value of the equity instrument issued, as calculated using the Black-Scholes option-pricing model. The measurement of stock-based compensation for non-employees is subject to periodic adjustments based on changes in fair value as the options vest, and the expense is recognized over the period services are rendered. Other Income (Expense), Net Other income, net consisted of the following: Year ended December 31, 2015 2014 2013 (in thousands) Interest income $ 712 $ 556 $ 650 Net realized gain (loss) on investments — 1 (55 ) Interest expense (93 ) (69 ) (135 ) Total other income, net $ 619 $ 488 $ 460 Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of taxes payable or refundable for the current year, and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The measurement of current and deferred tax liabilities and assets is based on provisions of the enacted tax law; the effects of future changes in tax laws or rates are not anticipated. Valuation allowances are established when necessary to reduce deferred tax assets to the amount that the Company believes is more likely than not to be realized. The Company’s determination of its valuation allowance is based upon a number of assumptions, judgments, and estimates, including forecasted earnings, future taxable income, and the relative proportions of revenue and income before taxes in the various jurisdictions in which it operates. The Company operates in various tax jurisdictions and is subject to audit by various tax authorities. Tax positions are based upon their technical merits, relevant tax law, and the specific facts and circumstances as of each reporting period. Changes in facts and circumstances could result in material changes to the amounts recorded for such tax positions. A tax position is only recognized in the financial statements if it is “more likely than not” to be sustained based solely on its technical merits as of the reporting date. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments that could result in recognition of additional tax benefits or additional charges to the tax provision and may not accurately reflect actual outcomes. The Company has a policy to classify accrued interest and p |
Net Income Per Share of Common
Net Income Per Share of Common Stock | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net Income Per Share of Common Stock | Net Income Per Share of Common Stock Net income per share of common stock is calculated by dividing net income by the weighted average shares of common stock outstanding during the period. Diluted net income per share of common stock is calculated by dividing net income by the weighted average shares of common stock outstanding and potential shares of common stock during the period. Potential shares of common stock include dilutive shares attributable to the assumed exercise of stock options, restricted stock unit awards (“ RSUs ”), performing-vesting RSUs, performance share awards (“Performance Awards”), and Employee Stock Purchase Plan (“ESPP”) shares using the treasury stock method, if dilutive. The components of net income per share of common stock were as follows: Year ended December 31, 2015 2014 2013 (in thousands, except share and per share amounts) Net income $ 22,258 $ 14,823 $ 13,318 Basic shares: Weighted average common shares outstanding 29,179,352 27,858,828 26,581,962 Diluted shares: Weighted average shares used to compute basic net income per share 29,179,352 27,858,828 26,581,962 Effect of potentially dilutive securities: Employee stock options, RSUs, performance-vesting RSUs, Performance Awards and ESPP shares 1,663,232 1,735,045 1,920,441 Weighted average shares used to compute diluted net income per share 30,842,584 29,593,873 28,502,403 Net income per share: Basic $ 0.76 $ 0.53 $ 0.50 Diluted $ 0.72 $ 0.50 $ 0.47 The following potential weighted average common shares were excluded from the computation of diluted net income per share, as their effect would have been anti-dilutive: Year ended December 31, 2015 2014 2013 Employee stock options and awards 225,122 624,277 758,900 Performance-vesting RSUs and Performance Awards are included in the diluted shares outstanding for each period if the established performance criteria have been met at the end of the respective periods. However, if none of the required performance criteria have been met for such awards, the Company includes the number of shares that would be issuable if the end of the reporting period were the end of the contingency period. No shares were excluded from the dilutive shares outstanding for the years ended December 31, 2015 , 2014 or 2013 . |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Financial Instruments and Fair Value Measurements | NOTE 4 — Financial Instruments and Fair Value Measurements Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements are classified and disclosed in one of the following three categories: 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 assets or liabilities. The following tables set forth by level within the fair value hierarchy the Company’s financial assets that were accounted for at fair value on a recurring basis, according to the valuation techniques the Company used to determine their values: Fair Value at Fair Value Measurements Using Inputs Considered as December 31, 2015 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 6,788 $ 6,788 $ — $ — Corporate notes and obligations 28,205 — 28,205 — Certificates of deposit 12,928 — 12,928 — Municipal obligations 2,648 — 2,648 — U.S. government and government agency obligations 60,667 19,429 41,238 — $ 111,236 $ 26,217 $ 85,019 $ — Fair Value at Fair Value Measurements Using Inputs Considered as December 31, 2014 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 3,220 $ 3,220 $ — $ — Corporate notes and obligations 29,035 — 29,035 — Certificates of deposit 14,962 — 14,962 — Municipal obligations 3,155 — 3,155 — U.S. government and government agency obligations 60,879 16,946 43,933 — $ 111,251 $ 20,166 $ 91,085 $ — Financial instruments include cash, cash equivalents, and investments, including investment-grade interest-bearing securities, such as money market accounts, certificates of deposit, commercial paper, corporate bonds, municipal and government agency obligations, and guaranteed obligations of the U.S. government . The Company classifies its money market funds that are specifically backed by debt securities and U.S. government obligations as Level 1 instruments, due to the use of observable market prices for identical securities that are traded in active markets . When the Company uses observable market prices for identical securities that are traded in less active markets , the Company classifies its marketable financial instruments as Level 2. When observable market prices for identical securities are not available , the Company prices its marketable financial instruments using non-binding market consensus prices that are corroborated with observable market data; quoted market prices for similar instruments; or pricing models with all significant inputs derived from or corroborated with observable market data. Non-binding market consensus prices are based on the proprietary valuation models of pricing providers. These valuation models incorporate a number of inputs, including non-binding and binding broker quotes; observable market prices for identical or similar securities; and the internal assumptions of pricing providers or brokers that use observable market inputs and, to a lesser degree, unobservable market inputs . The Company corroborates non-binding market consensus prices with observable market data as such data exists . As of December 31, 2015 and December 31, 2014 , the Company did not have any assets or liabilities that were valued using Level 3 inputs. For the years ended December 31, 2015, 2014, and 2013 , there were no transfers of financial instruments among Level 1, Level 2 or Level 3 classifications. For the years ended December 31, 2015, 2014, and 2013 , the Company recognized interest income from financial instruments of $0.7 million , $0.6 million , and $0.7 million , respectively. Gross realized gains and gross realized losses from the sale of investments were not significant during the years ended December 31, 2015, 2014, and 2013 . The carrying amounts, gross unrealized gains and losses and estimated fair value of cash and cash equivalents and both short-term and long-term investments consisted of the following: December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Carrying or Fair Value (in thousands) Cash and cash equivalents: Cash $ 27,608 $ — $ — $ 27,608 Money market funds 6,788 — — 6,788 $ 34,396 $ — $ — $ 34,396 Investments: Corporate notes and obligations $ 28,314 $ 1 $ (110 ) $ 28,205 Certificates of deposit 12,945 5 (22 ) 12,928 Municipal obligations 2,647 1 — 2,648 U.S. government and government agency obligations 60,799 10 (142 ) 60,667 $ 104,705 $ 17 $ (274 ) $ 104,448 December 31, 2014 Amortized Cost Unrealized Gains Unrealized Losses Carrying or Fair Value (in thousands) Cash and cash equivalents: Cash $ 23,536 $ — $ — $ 23,536 Money market funds 3,220 — — 3,220 $ 26,756 $ — $ — $ 26,756 Investments: Corporate notes and obligations $ 29,071 $ 4 $ (40 ) $ 29,035 Certificates of deposit 14,972 11 (21 ) 14,962 Municipal obligations 3,149 6 — 3,155 U.S. government and government agency obligations 60,934 18 (73 ) 60,879 $ 108,126 $ 39 $ (134 ) $ 108,031 The following table shows the gross unrealized losses and the related fair values of the Company’s investments that have been in a continuous unrealized loss position: December 31, 2015 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) Corporate notes and obligations $ 23,969 $ (99 ) $ 2,514 $ (11 ) $ 26,483 $ (110 ) Certificates of deposit 9,284 (22 ) — — 9,284 (22 ) U.S. government, government agency, and municipal obligations 48,394 (139 ) 1,793 (3 ) 50,187 (142 ) $ 81,647 $ (260 ) $ 4,307 $ (14 ) $ 85,954 $ (274 ) December 31, 2014 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) Corporate notes and obligations $ 19,535 $ (40 ) $ — $ — $ 19,535 $ (40 ) Certificates of deposit 5,735 (21 ) — — 5,735 (21 ) U.S. government and government agency obligations 34,899 (73 ) — — 34,899 (73 ) $ 60,169 $ (134 ) $ — $ — $ 60,169 $ (134 ) The following table summarizes the maturities of the Company’s investments at December 31, 2015 : Carrying or Fair Value (in thousands) 2016 $ 48,975 2017 30,771 2018 24,702 Total $ 104,448 Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Mortgage Returns On October 23, 2015, the Company acquired substantially all the assets of Mortgage Returns, LLC (“Mortgage Returns”), a provider of on-demand customer relationship management, and marketing automation solutions for the mortgage industry. The Company acquired the Mortgage Returns business in order to add functionality to its product offerings. The transaction was accounted for as a business combination and, accordingly, the total purchase price was allocated to the assets acquired and liabilities assumed based on their respective fair values. The Company expensed all transaction costs, which were insignificant, in the period in which they were incurred. The total purchase consideration was $16.3 million in cash, of which $2.4 million was placed in escrow to cover closing capital settlement adjustments and any indemnity claims. Any amount remaining in escrow 18 months after the date of acquisition will be paid to the seller. The allocation of the consideration of $16.3 million to the identifiable tangible and intangible assets acquired and liabilities assumed under the purchase method of accounting, based on their estimated fair values as of the acquisition date, is summarized in the following table (in thousands): Current assets $ 503 Other assets 17 Property, plant, and equipment 423 Intangible assets: Developed technology 4,500 Order backlog 370 Customer relationships 2,200 Trade name 30 Current liabilities (324 ) Long-term liabilities (244 ) Deferred revenue (350 ) Goodwill 9,209 Total purchase consideration $ 16,334 Developed technology consists of the technology underlying Mortgage Returns’ existing products and has an estimated useful life of four years. The value of the developed technology was determined by discounting the estimated net future cash flows of these products. Customer relationships relate to the Company’s ability to sell existing and future versions of the Company’s products and services to existing Mortgage Returns customers and have an estimated useful life of seven years. The fair value of the customer relationships was determined by using an income approach, in which fair value was determined using discounted cash flows associated with lost revenue and lost profits over the life of the customer relationships. Trade name represents the right to use the Mortgage Returns’ name and has a useful life of one year. The fair value of the trade name was determined by estimating the benefit from owning the asset rather than paying a royalty to a third party for the use of the asset. Order backlog represents estimated net discounted future cash flows associated with service contracts that were outstanding as of the acquisition date and expected to be executed within four years. Goodwill, which is deductible for tax purposes, represents the excess of the purchase price over the fair value of the identifiable assets acquired. Among the factors that contributed to a purchase price in excess of the fair value of the identifiable assets was the acquisition of an assembled workforce and synergies between the Company’s products and Mortgage Return’s products. Mortgage Returns’ results of operations since the closing date of October 23, 2015, have been included in the Company’s consolidated statements of comprehensive income for the year ended December 31, 2015 . If the acquisition had occurred as of January 1, 2014, the impact on reported revenues and earnings of the Company for the years ended December 31, 2015 and 2014 would not have been significant. MortgageCEO On January 15, 2014, the Company acquired substantially all the assets of ARG Interactive, LLC (dba MortgageCEO) (“MortgageCEO”), a SaaS company specializing in customer relationship management and marketing solutions for the residential mortgage industry . The Company acquired the MortgageCEO business in order to add functionality to its product offerings. The transaction was accounted for as a business combination and, accordingly, the total purchase price was allocated to the assets acquired based on their respective fair values. The Company expensed all transaction costs, which were insignificant, in the period in which they were incurred. The total purchase consideration was $5.0 million in cash, of which $4.5 million was paid at the time of closing. The remaining $0.5 million (the “holdback funds”) was retained from the purchase consideration to cover working capital adjustments and any indemnity claims. The holdback amount was applied to an arbitration settlement reached with the founder of MortgageCEO resulting in a credit to general and administrative expenses in the consolidated statements of comprehensive income for the year ended December 31, 2015. See Note 8. The allocation of the consideration of $5.0 million to the identifiable tangible and intangible assets acquired and liabilities assumed under the purchase method of accounting, based on their estimated fair values as of the acquisition date, is summarized in the following table (in thousands): Amortizable intangible assets: Developed technology $ 2,927 Customer relationships 643 Trade name 41 Goodwill 1,409 Total purchase consideration $ 5,020 Developed technology consists of the technology underlying MortgageCEO’s existing products and had an estimated useful life of 5 years . The value of the developed technology was determined by discounting the estimated net future cash flows of these products. Customer relationships relate to the Company’s ability to sell existing and future versions of the Company’s products and services to existing MortgageCEO customers and have an estimated useful life of five years. The fair value of the customer relationships was determined by discounting the estimated future net cash flows from future sales to existing customers. Trade name represents the right to use the MortgageCEO name and has an estimated useful life of two years. The fair value of the trade name was determined by estimating the benefit from owning the asset rather than paying a royalty to a third party for the use of the asset. Goodwill, which is deductible for tax purposes , represents the excess of the purchase price over the fair value of the identifiable assets acquired. Among the factors that contributed to a purchase price in excess of the fair value of the identifiable assets was the acquisition of an assembled workforce and synergies between the Company’s products and MortgageCEO’s products. MortgageCEO’s results of operations since the closing date of January 15, 2014 have been included in the Company’s consolidated statements of comprehensive income for the year ended December 31, 2014. If the acquisition had occurred as of January 1, 2014, the revenue and earnings of the combined entity for the current reporting period would have been approximately the same. MortgageCEO’s revenues and earnings for the year ended December 31, 2014 were not significant. As described in Note 6 , the Company recorded a non-cash impairment charge of $0.3 million to customer relationships and $1.7 million to developed technology for the year ended December 31, 2014 and a non-cash impairment charge of $0.6 million to developed technology for the year ended December 31, 2015. AllRegs On October 1, 2014, the Company acquired substantially all the assets of Mortgage Resource Center, Inc. (dba AllRegs ) (“ AllRegs ”), a provider of research and reference, education, documentation, and data analytics products relating to the mortgage industry. The Company acquired the AllRegs business in order to strengthen the Company’s products through product integration and to introduce new products related to training, compliance management systems and product eligibility. The transaction was accounted for as a business combination and, accordingly, the total purchase price was allocated to the assets acquired based on their respective fair values. The Company expensed all transactions costs, which were insignificant, in the period in which they were incurred. The total purchase consideration was $28.1 million in cash, of which $3.0 million was placed in escrow to cover closing capital settlement adjustments and any indemnity claims. Any amount remaining in escrow 18 months after the date of acquisition will be paid to the seller. The allocation of the consideration of $28.1 million to the identifiable tangible and intangible assets acquired and liabilities assumed under the purchase method of accounting, based on their estimated fair values as of the acquisition date, is summarized in the following table (in thousands): Current assets $ 127 Property and equipment 494 Deposits and other assets 8 Intangible assets: Developed technology 3,256 In-process research and development 618 Customer relationships 9,585 Trade name 4,039 Current liabilities (383 ) Deferred revenue (2,484 ) Goodwill 12,878 Total purchase consideration $ 28,138 Developed technology consists of the technology underlying AllRegs’s existing products and has an estimated useful life of two years. The value of the developed technology was determined by estimating the cost to reproduce the technology. In-process research and development represents the fair value of incomplete AllRegs research and development projects that had not reached technological feasibility as of the date of acquisition. The value of the in-process research and development was determined by estimating the cost to reproduce the research and development projects. The research and development projects were assigned an indefinite useful life until the research and development efforts were completed in December 2014, at which point the Company determined that the completed project, now recorded as developed technology, had an estimated useful life of three years. Customer relationships relate to the Company’s ability to sell existing and future versions of the Company’s products and services to existing AllRegs customers and have an estimated useful life of six years. The fair value of the customer relationships was determined by discounting the estimated future net cash flows from future sales to these customers. Trade name represents the right to use the AllRegs name and has an indefinite useful life. The fair value of the trade name was determined by estimating the benefit from owning the asset rather than paying a royalty to a third party for the use of the asset. Goodwill, which is deductible for tax purposes , represents the excess of the purchase price over the fair value of the identifiable assets acquired. Among the factors that contributed to a purchase price in excess of the fair value of the identifiable assets was the acquisition of an assembled workforce and synergies between the Company’s products and AllRegs’s products. AllReg’s results of operations since the closing date of October 1, 2014, have been included in the Company’s consolidated statements of comprehensive income for the year ended December 31, 2014 including related revenues of approximately $2.0 million. The following unaudited pro forma combined results of operations give effect to the acquisition of AllRegs as if it had occurred on January 1, 2013. The unaudited pro forma combined results of operations are provided for informational purposes only and do not purport to represent the Company’s actual consolidated results of operations or consolidated financial position had the acquisition occurred on the dates assumed, nor are these financial statements necessarily indicative of the Company’s future consolidated results of operations or consolidated financial position. The Company expects to incur costs and realize benefits associated with integrating the operations of the Company and AllRegs. The unaudited pro forma combined results of operations do not reflect the costs of any integration activities or any benefits that may result from operating efficiencies or revenue synergies. The pro forma combined results of operations for the years ended December 31, 2014 and 2013 include non-recurring adjustments relating to the reduction of AllRegs deferred revenue to its estimated fair value as of the acquisition date and the corresponding impact on subsequently recognized revenue, direct acquisition costs and changes to AllRegs employee compensation subsequent to the date of acquisition. Year ended December 31, 2014 2013 (unaudited, in thousands, except per share amounts) Revenues $ 174,483 $ 138,751 Net income $ 15,982 $ 9,256 Net income per share: Basic $ 0.57 $ 0.35 Diluted $ 0.54 $ 0.32 |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Dec. 31, 2015 | |
Statement of Financial Position [Abstract] | |
Balance Sheet Components | Balance Sheet Components Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets consisted of the following: December 31, 2015 2014 (in thousands) Prepaid expenses $ 8,518 $ 5,667 Income tax receivable 509 1,892 Deferred tax assets, net — 5,132 Other receivables 847 3,330 $ 9,874 $ 16,021 Property and Equipment Property and equipment, net, consisted of the following: December 31, 2015 2014 (in thousands) Computer equipment and software (1) $ 55,928 $ 24,014 Furniture and fixtures 5,292 1,929 Leasehold improvements 14,405 2,289 Property and equipment 75,625 28,232 Accumulated depreciation and amortization (28,552 ) (17,838 ) Net property and equipment 47,073 10,394 Internal-use software and other assets not placed in service 34,287 18,300 $ 81,360 $ 28,694 ________ (1) Certain reclassifications of prior period amounts have been made to conform to the current period presentation, such reclassification did not materially change previously reported consolidated financial statements. At December 31, 2015 and 2014 , the Company had unamortized internal-use software costs of $47.0 million and $19.9 million , respectively. Amortization of internal-use software for the years ended December 31, 2015 , 2014 , and 2013 was $2.4 million , $0.7 million , and $0.1 million , respectively. The cost of property and equipment at December 31, 2015 included a total of $8.7 million of computer equipment and $1.5 million of software under capital leases. Accumulated amortization relating to computer equipment and software under capital leases totaled $3.4 million at December 31, 2015 . The cost of property and equipment at December 31, 2014 included a total of $2.0 million of computer equipment and $0.5 million of software under capital leases. Accumulated amortization relating to computer equipment and software under capital leases totaled $0.9 million at December 31, 2014 . Depreciation expense for the years ended December 31, 2015, 2014, and 2013 was $10.8 million , $5.6 million , and $4.7 million , respectively. Amortization of assets under capital leases, which is included in depreciation expense, was $2.5 million , $0.7 million , and $0.5 million for the years ended December 31, 2015 , 2014 , and 2013 . During the year ended December 31, 2015 , the Company recorded a $0.1 million loss on the sale of fixed assets. During the year ended December 31, 2014 , the Company recorded a $0.7 million impairment loss to general and administrative expenses on the write-off of internal-use software. There were no such write-offs during the year ended December 31, 2013 . Intangible Assets Intangible assets, net, consisted of the following: December 31, 2015 Gross carrying Accumulated Net intangibles Weighted Average Remaining Useful Life (in thousands) (in years) Assets subject to amortization: Developed technology $ 11,535 $ (5,668 ) $ 5,867 3.1 Trade names 331 (307 ) 24 0.8 Customer relationships 19,400 (6,875 ) 12,525 4.8 Order backlog 370 (15 ) 355 3.8 Total assets subject to amortization 31,636 (12,865 ) 18,771 4.2 Assets not subject to amortization: Trade name 4,039 4,039 $ 35,675 $ (12,865 ) $ 22,810 December 31, 2014 Gross carrying Accumulated Net intangibles Weighted Average Remaining Useful Life (in thousands) (in years) Assets subject to amortization: Developed technology $ 7,035 $ (2,759 ) $ 4,276 2.3 Trade names 301 (279 ) 22 1.1 Customer relationships 17,200 (4,085 ) 13,115 5.3 Total assets subject to amortization $ 24,536 $ (7,123 ) $ 17,413 4.6 Assets not subject to amortization: Trade name 4,039 4,039 $ 28,575 $ (7,123 ) $ 21,452 During the fourth quarter of 2014 , the Company identified certain indicators of impairment for both the customer relationships and developed technology acquired in the MortgageCEO acquisition. Specifically, the Company determined it would need to make additional investments in the Encompass CRM product in order to attract new customers (which were not expected and therefore not contemplated in the valuation of customer relationships and developed technology in the purchase price allocation at the acquisition date), which resulted in a significant delay in the Company’s ability to release an integrated Encompass CRM product to its customers. As a result, the Company determined it was necessary to assess the recoverability of the customer relationships and developed technology associated with generating Encompass CRM cash flows . The Company used an income approach to determine if the sum of the undiscounted cash flows expected to result from the use and eventual disposition of each asset exceeded the carrying amount of that asset. As a result of this assessment, it was determined that the sum of undiscounted cash flows was less than the carrying amount for each of the two assets. In order to determine the amount of impairment to each asset , the Company performed an analysis to determine the fair value of each asset, which was determined using the present value of expected future cash flows which were based on estimates, assumptions and judgments. These include the forecast of future cash flows related to each asset, the discount rate used in discounting those cash flows, and the expected remaining useful life of each asset . This analysis resulted in a non-cash impairment charge of $0.3 million to customer relationships and a non-cash impairment charge of $1.7 million to developed technology , which were included in sales and marketing expenses and research and development expenses, respectively, in the consolidated statements of comprehensive income for the year ended December 31, 2014 . In October 2015, the Company acquired Mortgage Returns. As a result of the acquisition, the Company will discontinue to utilize the acquired MortgageCEO technology and will migrate the existing customers to the Mortgage Returns CRM platform in 2016. The Company recorded a non-cash impairment charge of $0.6 million to developed technology, which were included in cost of revenues, in the consolidated statements of comprehensive income for the year ended December 31, 2015. Amortization expense associated with intangible assets was $5.2 million , $2.8 million , and $1.4 million for the years ended December 31, 2015, 2014, and 2013 , respectively. Minimum future amortization expense for intangible assets at December 31, 2015 was as follows: (in thousands) 2016 $ 5,521 2017 4,294 2018 3,443 2019 3,166 2020 1,778 Thereafter 569 $ 18,771 Goodwill The Company completed its annual impairment tests during the fourth quarters of 2015 , 2014 , and 2013 and determined that goodwill was not impaired. The changes in the carrying value of goodwill during the year ended December 31, 2015 were as follows (in thousands): Balance at January 1, 2015 $ 65,338 Addition: Mortgage Returns acquisition 9,209 Balance at December 31, 2015 $ 74,547 The changes in the carrying value of goodwill during the year ended December 31, 2014 were as follows (in thousands): Balance at January 1, 2014 $ 51,051 Addition: MortgageCEO acquisition 1,409 Addition: AllRegs acquisition 12,878 Balance at December 31, 2014 $ 65,338 Accrued and Other Current Liabilities Accrued and other current liabilities consisted of the following: December 31, 2015 2014 (in thousands) Accrued payroll and related expenses $ 23,938 $ 11,071 Accrued commissions 1,993 917 Accrued professional fees 223 362 Accrued royalties 1,546 919 Sales and other taxes 1,536 357 Current portion of leases payable 3,845 422 Other accrued expenses 4,226 2,774 $ 37,307 $ 16,822 Deferred Revenue Deferred revenues consisted of the following: December 31, 2015 2014 (in thousands) Software maintenance $ 386 $ 1,310 Professional services and training (1) 6,430 3,566 Subscriptions (1) 9,225 4,816 Other (1) 63 213 Total 16,104 9,905 Less portion included in other long-term liabilities (240 ) (176 ) $ 15,864 $ 9,729 ________ (1) Certain reclassifications of prior period amounts have been made to conform to the current period presentation, such reclassifications did not materially change previously reported consolidated financial statements. Other Long-Term Liabilities Other long-term liabilities consisted of the following: December 31, 2015 2014 (in thousands) Deferred revenue $ 240 $ 176 Deferred rent 8,256 317 Deferred tax liability 1,777 2,501 $ 10,273 $ 2,994 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the provision for income taxes were as follows: Year ended December 31, 2015 2014 2013 (in thousands) Current Federal $ 8,070 $ 5,761 $ 9,664 State 1,894 630 814 9,964 6,391 10,478 Deferred Federal 1,899 336 (4,236 ) State 356 59 (128 ) 2,255 395 (4,364 ) Income tax provision $ 12,219 $ 6,786 $ 6,114 The provision for income taxes differed from the amount of income taxes determined by applying the U.S. statutory federal income tax rate as follows: Year ended December 31, 2015 2014 2013 Tax at federal statutory rate 35 % 35 % 35 % Other non-deductible items 1 — — State taxes, net of federal benefit 5 3 3 Domestic production activities deduction — — (2 ) Valuation allowance — — — Stock-based compensation 1 1 1 Prior year true ups — — (2 ) Tax credits (7 ) (8 ) (4 ) Income tax provision 35 % 31 % 31 % Excess tax benefits associated with stock option exercises and other equity awards were credited to stockholders’ equity. The income tax benefits resulting from stock awards that were credited to stockholders’ equity were $11.4 million , $5.9 million , and $7.0 million for the years ended December 31, 2015 , 2014 , and 2013 . The components of net deferred tax assets (liabilities) were as follows: December 31, 2015 2014 (in thousands) Deferred tax assets Research and development credits $ 3,901 $ 2,897 Stock-based compensation 10,309 6,802 Reserves and accruals 8,779 3,613 Net operating loss carryforwards — 366 Total deferred tax assets 22,989 13,678 Valuation allowance (3,901 ) (2,897 ) Total deferred tax assets, net of valuation allowance 19,088 10,781 Deferred tax liabilities Depreciation and amortization (16,171 ) (6,026 ) Book/tax basis in acquired assets (697 ) (271 ) Total deferred tax liabilities (16,868 ) (6,297 ) Net deferred tax assets $ 2,220 $ 4,484 At December 31, 2015 , the Company had recorded $2.2 million of net long-term deferred tax assets in deposits and other assets on the consolidated balance sheet. At December 31, 2014 , the Company had recorded $5.1 million of net current deferred tax assets in prepaid expenses and other current assets and $0.6 million of net long-term deferred tax assets in deposits and other assets, and $1.3 million of net long-term deferred tax liabilities in other long-term liabilities on the consolidated balance sheet. The Company continues to maintain a valuation allowance against the deferred tax assets related to certain state research and development tax credits, the realization of which is uncertain as the Company expects to generate additional such credits at a faster rate than it is able to utilize them . The valuation allowance increased by $0.3 million and $0.8 million in 2013 and 2014 , respectively and increased by $1.0 million in 2015 . As of December 31, 2015 , the Company had $3.3 million of state net operating loss (“ NOL ”) carryforwards. The state NOL carryforwards will begin to expire commencing in 2016. If utilized, the related state tax benefit would be credited to additional paid-in capital. As of December 31, 2015 , the Company also had federal and state research and development tax credit carryforwards of $5.9 million and $6.9 million , respectively. If they were to be utilized, the related federal tax benefit of $5.9 million and state tax benefit of $0.9 million would be credited to additional paid-in capital. The federal tax credit carryforwards begin to expire commencing in 2035 . The state tax credit carryforwards may be carried forward indefinitely. Internal Revenue Code Section 382 places a limitation (the “Section 382 Limitation”) on the amount of taxable income that can be offset by NOL carryforwards after a change in control (generally greater than 50% change in ownership) of a loss corporation. California has similar rules. The Company’s capitalization as described herein may have created such a change. Generally, after a control change, a loss corporation cannot deduct NOL carryforwards in excess of the Section 382 Limitation. Due to these “change in ownership” provisions, utilization of the NOL carryforwards may be subject to an annual limitation regarding their utilization against taxable income in future periods. The Company has prepared a Section 382 Limitation analysis and does not believe that any of its NOL carryforwards are subject to expiration prior to utilization. Limitations have been imposed on the Company’s acquired subsidiaries. At December 31, 2015 , the Company had $3.4 million of cumulative unrecognized tax benefits. If the benefits were to be recognized, $1.8 million would affect the effective tax rate and $1.6 million would reverse the valuation allowance against the deferred tax assets. The Company does not expect a significant change to its unrecognized tax benefits over the next twelve months. The unrecognized tax benefits may increase or change during the year for items that arise in the ordinary course of business. A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: Year ended December 31, 2015 2014 2013 (in thousands) Beginning balance $ 2,408 $ 1,806 $ 1,262 Additions based on tax positions related to the current year 1,023 594 402 Additions based on tax positions related to prior years including acquisitions 9 8 142 Ending balance $ 3,440 $ 2,408 $ 1,806 The Company files income tax returns in the U.S. federal jurisdiction and various state jurisdictions. The Company’s tax years for 2007 and forward are subject to examination by the U.S. tax authorities and for 2000 and forward are subject to examination by the California tax authorities due to the carryforward of unutilized net operating losses and research and development credits. The Company believes that it has provided adequate reserves for its income tax uncertainties in all open tax years, and that it does not have any tax positions that it is reasonably possible would materially increase or decrease the gross unrecognized tax benefits within the next twelve months. The Company has a policy to classify accrued interest and penalties associated with uncertain tax positions together with the related liability, and the expenses incurred related to such accruals are included in the provision for income taxes. The Company did not incur any interest expense or penalties associated with unrecognized tax benefits during the years ended December 31, 2015, 2014, and 2013 . Enactment of the Protecting Americans from Tax Hikes Act of 2015 On December 18, 2015, the President signed into law the Protecting Americans from Tax Hikes Act of 2015. This legislation, effective retroactively to the beginning of 2015, makes the Research and Development Credit extension permanent. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases In July 2015, the Company entered into an amendment to the Company’s existing office lease in Pleasanton, California to expand its office space. The term of the lease for the expanded office space in Pleasanton, California commenced on January 1, 2016 and ends on December 31, 2024, with payments ranging from $79,000 per month to $103,500 per month. As of December 31, 2015 , the Company leased eight facilities under operating lease arrangements. The lease expiration dates range from January 2016 to December 2024. Certain leases contain escalation clauses calling for increased rents. The Company recognizes rent expense on a straight-line basis over the lease period and has recorded deferred rent for the difference between rent payments and rent expense recognized. Rent expense was $4.2 million , $2.1 million , and $1.6 million for the years ended December 31, 2015, 2014, and 2013 , respectively. The Company leases certain fixed assets under non-cancelable capital leases with various expiration dates. In January 2015, the Company entered into a lease agreement to finance the purchase of computer equipment for the Company’s data centers with payments of $0.3 million per month over the 24 month term of the agreement. Future minimum lease payments under non-cancelable operating and capital leases at December 31, 2015 consisted of the following: Capital Leases Operating Leases (in thousands) 2016 $ 3,899 $ 4,639 2017 619 4,934 2018 87 4,896 2019 — 4,844 2020 — 4,834 Thereafter — 20,407 Total minimum lease payments 4,605 $ 44,554 Less amount representing interest (75 ) Present value of minimum lease payments 4,530 Less current portion (3,845 ) Long-term portion of lease obligations $ 685 Purchase Commitments Commitments for the purchase of services, licenses of third-party software, and construction commitments totaled $13.6 million at December 31, 2015 and are to be paid as follows: $10.1 million in 2016 , $2.6 million in 2017 and $0.9 million in 2018 . Acquisition Holdback As of December 31, 2015 and 2014, the Company had an acquisition holdback liability of zero and $0.5 million , respectively related to the MortgageCEO acquisition. The Company was recently engaged in an arbitration proceeding with the founder of MortgageCEO. The proceeding involved an employment claim against the Company with respect to, among other things, the vesting of certain restricted stock units granted to the founder of MortgageCEO, and a breach of contract counterclaim and other causes of action. In December 2015, Ellie Mae and the founder of MortgageCEO signed a settlement agreement and agreed to a mutual release. As a settlement for this agreement, the founder of MortgageCEO agreed to pay Ellie Mae $1.2 million , of which $0.7 million will be settled in cash according to the settlement agreement and the $0.5 million holdback was released to the Company. At December 31, 2015, the Company collected $0.3 million in cash. The remaining $0.4 million will be paid in two equal installments of $0.2 million on December 31, 2016 and December 31, 2017. Legal Proceedings From time to time, the Company is involved in litigation that it believes is of the type common to companies engaged in the Company’s line of business, including commercial disputes and employment issues. As of February 25, 2016, the Company is not involved in any pending legal proceedings whose outcome the Company expects to have a material adverse effect on its financial position, results of operations or cash flows. However, litigation is unpredictable and excessive verdicts, both in the form of monetary damages and injunctions, could occur. In the future, litigation could result in substantial costs and diversion of resources and the Company could incur judgments or enter into settlements of claims that could have a material adverse effect on its business. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock The amended and restated certificate of incorporation of the Company authorizes 140,000,000 shares of common stock, $0.0001 par value per share and 10,000,000 shares of undesignated preferred stock, $0.0001 par value per share. In May 2014, the board of directors approved a repurchase program authorizing to repurchase up to $75.0 million of our common stock over a 36-month period. As of December 31, 2015, $43.5 million remained available for future stock repurchases under this repurchase program. The Company repurchased the following shares of common stock under the repurchase program: Shares Repurchased Weighted Average Purchase Price per Share Total Amount (in thousands) Year Ended 2015 503,450 $ 62.63 $ 31,530 The following number of shares of common stock were reserved and available for future issuance at December 31, 2015 : Reserved Shares Options and awards granted and outstanding under stock incentive plans 3,772,299 Shares available for future grant under the stock incentive plans 2,886,881 Shares available under the Employee Stock Purchase Plan 1,204,994 Total 7,864,174 |
Stock Incentive Plans
Stock Incentive Plans | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentive Plans | Equity and Stock Incentive Plans The Company recognizes stock-based compensation related to awards granted under the 2009 Plan, the 2011 Plan, and ESPP . 2009 Stock Option and Incentive Plan and 2011 Equity Incentive Award Plan Stock Options In March 2011, the Company adopted the 2011 Plan , which was approved by the Company’s stockholders approved the 2011 Plan on March 24, 2011. Under the 2011 Plan , 2,666,666 shares of the Company’s common stock were initially reserved. Any shares of common stock that were available for issuance under prior plans, including the 2009 Plan, were transferred to the 2011 Plan . As of December 31, 2015 , 987,424 shares of the Company’s common stock previously available for issuance under the 2009 Plan were available for issuance under the 2011 Plan. The number of common shares reserved for issuance under the 2011 Plan increase automatically in January of each year by the least of (a) 1,666,666 shares, (b) five percent ( 5% ) of the shares of common stock outstanding on the last day of the immediately preceding fiscal year and (c) such smaller number of shares of common stock as determined by the Company’s board of directors; provided, however that no more than 23,333,333 shares of common stock may be issued upon the exercise of incentive stock options. The following table summarizes the Company’s stock option activity under the 2009 Plan and 2011 Plan: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Outstanding at December 31, 2012 3,461,255 $ 7.19 Granted 841,371 $ 23.39 Exercised (854,566 ) $ 5.39 Forfeited or expired (163,388 ) $ 20.10 Outstanding at December 31, 2013 3,284,672 $ 11.17 Granted 904,602 $ 28.76 Exercised (1,048,053 ) $ 7.19 Forfeited or expired (90,920 ) $ 22.46 Outstanding at December 31, 2014 3,050,301 $ 17.41 Granted 385,776 $ 55.30 Exercised (822,133 ) $ 12.28 Forfeited or expired (98,615 ) $ 30.12 Outstanding at December 31, 2015 2,515,329 $ 24.40 7.14 $ 90,818 Ending vested and expected to vest at December 31, 2015 2,443,198 $ 23.96 7.10 $ 89,268 Exercisable at December 31, 2015 1,474,236 $ 15.80 6.23 $ 65,601 Intrinsic value of an option is the difference between the fair value of the Company’s common stock at the time of exercise and the exercise price to be paid. The aggregate intrinsic value for options outstanding at December 31, 2015 in the table above represents the total intrinsic value, based on the Company’s closing stock price of $60.23 as of December 31, 2015 . Options outstanding that are expected to vest are net of estimated future option forfeitures. For the majority of stock options outstanding, the options vest over a four -year period and have a maximum contractual term of ten years. Following is additional information pertaining to the Company’s stock option activity: Year ended December 31, 2015 2014 2013 (in thousands except for per option data) Weighted average grant-date fair value per option granted $ 26.13 $ 14.43 $ 11.54 Grant-date fair value of options vested $ 8,285 $ 6,126 $ 3,775 Intrinsic value of options exercised $ 38,971 $ 26,277 $ 18,024 Proceeds received from options exercised $ 10,094 $ 7,537 $ 4,623 As of December 31, 2015 , total unrecognized compensation cost related to unvested stock options, adjusted for estimated forfeitures, was $15.3 million and is expected to be recognized over a weighted average period of 2.39 years. Restricted Stock Units, Performance-Vesting Restricted Stock Units, and Performance Awards The fair value of the Company’s RSUs and Performance Awards is measured based upon the closing price of its underlying common stock as of the grant date and is recognized over the vesting term. Upon vesting, RSUs convert into an equivalent number of shares of common stock. The Performance Awards granted represent the right to receive shares of the Company’s common stock, contingent upon the achievement of certain of the Company’s performance metrics during the performance period. Subsequent to the performance period, the Compensation Committee of the Board of Directors (the “ Compensation Committee ”) determines and approves the achievement of the performance goals (the “ Determination Date ”) and the earned shares are issued, with 25% of the shares vested upon issuance and the remaining shares to vest 25% on each of the first three anniversaries of the Determination Date , subject to the continuous employment of the participant through such dates. In February 2013 , the Company granted 113,000 Performance Awards (“2013 Performance Awards”) to designated participants under the 2011 Plan . The 2013 Performance Awards represent the right to receive shares of the Company’s common stock upon achievement of certain performance goals during the performance period of January 1, 2013 through December 31, 2013. In March 2014, after the Company filed its Annual Report on Form 10-K for the year ended December 31, 2013 with the SEC, the Compensation Committee determined the level of achievement of the performance goals (the “2013 Award Determination Date”), at which time it was determined that the designated participants had earned an aggregate of 124,300 shares of common stock. The earned shares were issued in April 2014, with 25% of the shares vested upon issuance and the remaining shares to vest 25% on each of the first three anniversaries of the 2013 Award Determination Date, subject to the continuous employment of the participant through such dates. In February 2014 , the Company granted 62,500 Performance Awards (“2014 Performance Awards”) to designated participants under the 2011 Plan. The 2014 Performance Awards represent the right to receive shares of the Company’s common stock upon achievement of certain performance goals during the performance period of January 1, 2014 through December 31, 2014. In March 2015, after the Company filed with the SEC its Annual Report on Form 10-K for the year ended December 31, 2014, the Compensation Committee determined the level of achievement of the performance goals (the “2014 Award Determination Date”), at which time it was determined that the designated participants had earned an aggregate of 107,350 shares of common stock. The earned shares were issued in April 2015, with 25% of the shares vested 30 days after determination dated and the remaining shares to vest 25% on each of the first three anniversaries of the 2014 Award Determination Date, subject to the continuous employment of the participant through such dates. In December 2014, the Company granted Sigmund Anderman, then Chief Executive Officer and current Chairman of the Board of Directors of the Company, an option to purchase 76,648 shares of Company common stock and 37,203 Performance-Vesting RSUs . In January 2015, the Company granted Mr. Anderman an option to purchase 71,648 shares of Company common stock and 34,714 Performance-Vesting RSUs . Each of the options have a four -year, employment-based vesting schedule with the first 25% total number of shares vested on the first anniversary of the grant date and 1/48th of the total number of options to vest monthly thereafter. The Performance-Vesting RSUs will vest based upon the achievement of the corporate goals applicable to the Company’s executive bonus plan for fiscal year 2015 and Mr. Anderman’s continued employment. On the date the board of directors or the compensation committee certifies the achievement of the Company’s corporate goals for fiscal year 2015 (the “ 2015 RSU Determination Date ”), Mr. Anderman may earn up to 2.0 shares of common stock for each of the Performance-Vesting RSUs . 25% of the total number of Performance-Vesting RSUs will vest and be issued on the 2015 RSU Determination Date , and the remaining shares will vest and be issued 25% on each of December 31, 2016, 2017 and 2018, subject to the continuous employment of Mr. Anderman through such dates. As of December 31, 2015, the Company expects that each performance-vesting RSU will convert to two shares of common stock on the 2015 RSU Determination Date. In February and March 2015, the Company granted 24,766 and 10,324 Performance Awards (“2015 Performance Awards”) to designated participants under the 2011 Plan. The 2015 Performance Awards represent the right to receive shares of the Company’s common stock upon achievement of certain performance goals during the performance period of January 1, 2015 through December 31, 2015. After the Company files its Annual Report on Form 10-K for the year ended December 31, 2015 with the SEC, the Compensation Committee will determine the level of achievement of the performance goals (the “2015 Award Determination Date”), at which time the designated participants may earn between zero and two shares of common stock for each 2015 Performance Award. Shares of common stock earned, if any, will be issued after the 2015 Award Determination Date with 25% of the shares to vest upon issuance and the remaining shares to vest 25% on each of the first three anniversaries of the 2015 Award Determination Date, subject to the continuous employment of the participant through such dates. As of December 31, 2015, the Company expects that each RSU will convert to two shares of common stock on the 2015 RSU Determination Date. In October 2015, in connection with the acquisition of Mortgage Returns the Company agreed to pay up to 29,006 of performance vesting RSUs for a total value of $2.0 million to the former Chief Executive Officer (CEO) of Mortgage Returns. The performance vesting RSUs granted represent the right to receive shares of the Company’s common stock upon achievement of certain performance criteria and a service requirement during the performance period of October 23, 2015 through October 23, 2019. The performance vesting RSUs will vest annually based on the achievement of the performance criteria and the service requirement. The following table summarizes the Company’s RSU, Performance Award, and performance-vesting RSU activity: RSUs Performance Awards and performance-vesting RSUs Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding at December 31, 2012 40,625 8.90 588,000 25.79 Granted 301,767 24.78 124,300 19.60 Released (20,000 ) 14.71 (147,000 ) 25.79 Forfeited or expired (65,014 ) 24.62 — — Outstanding at December 31, 2013 257,378 23.10 565,300 24.43 Granted 525,063 28.85 155,953 24.93 Released (84,682 ) 22.56 (178,076 ) 24.71 Forfeited or expired (111,901 ) 29.02 (58,000 ) 24.91 Outstanding at December 31, 2014 585,858 27.20 485,177 25.61 Granted 401,158 62.62 205,816 47.18 Released (179,530 ) 25.97 (182,711 ) 24.69 Forfeited or expired (58,798 ) 39.40 — — Outstanding at December 31, 2015 748,688 $ 45.52 508,282 $ 34.68 Ending vested and expected to vest at December 31, 2015 661,523 508,282 RSU s and Performance Awards that are expected to vest are net of estimated future forfeitures. RSU s released during the years ended December 31, 2015 and 2014 had an aggregate intrinsic value of $11.1 million and $2.6 million , respectively, and an aggregate grant-date fair value of $4.7 million and $1.9 million , respectively. Performance Awards released during the years ended December 31, 2015 and 2014 had an aggregate intrinsic value of $13.2 million and $5.9 million , respectively, and an aggregate grant-date fair value of $4.5 million and $4.4 million , respectively. The number of RSU s released includes shares that the Company withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements. As of December 31, 2015 , total unrecognized compensation expense related to unvested RSUs and Performance Awards was $32.2 million and is expected to be recognized over a weighted average period of 2.4 years. Stock Awards Issued to Non-employees During the years ended December 31, 2015 and 2014 , the Company granted 1,184 and 5,931 RSU s to individual consultants at a weighted average grant date fair value of $59.81 and $25.30 per share, respectively. The RSU s and options were granted in exchange for consulting services. The RSU s and options each vest quarterly over a period of two years. These awards were granted under the 2011 Plan and are included in the RSU and option tables above. The RSU s and options issued to consultants are re-measured to fair value at the end of each accounting period. The Company recorded expense related to the issuance of RSU s and options to consultants of $0.2 million , $0.2 million , and $0.2 million in each of the years ended December 31, 2015 , 2014 and 2013. Employee Stock Purchase Plan Under the ESPP , qualified employees are permitted to purchase the Company’s common stock at 85% of the fair market value of the common stock as of the commencement date of the offering period or as of the specified purchase date, whichever is lower. The ESPP is deemed compensatory and stock-based compensation is recognized in accordance with ASC 718 , Stock Compensation. The ESPP is designed to allow eligible employees and the eligible employees of the Company’s participating subsidiaries to purchase shares of common stock, at semi-annual intervals, with their accumulated payroll deductions. The maximum aggregate number of shares which may be issued over the term of the ESPP is the sum of (a) 666,666 shares of common stock plus (b) an annual increase on the first day of each year beginning in 2012 and ending in 2021, equal to the least of (i) 1,666,666 shares of common stock, (ii) one percent ( 1% ) of the shares of common stock outstanding (on an as converted basis) on the last day of the immediately preceding fiscal year and (iii) such smaller number of shares of common stock as determined by the board of directors, which may be either authorized but unissued common stock or reacquired common stock, including shares of common stock purchased on the open market. In addition, no participant shall be permitted to participate in the ESPP if: (i) immediately after his or her election to participate, the participant would control 5% or more of the total combined voting power or value of all classes of the stock of the Company or any of its affiliates, or (ii) under the terms of the ESPP , the rights of the participant to purchase the Company’s common stock under the ESPP and all of its other qualified employee stock purchase plans or those of the Company’s affiliates would accrue at a rate exceeding $25,000 of fair market value of the common stock for each calendar year for which such right is outstanding at any time. The weighted-average grant-date fair value of awards issued pursuant to the ESPP during the years ended December 31, 2015 and 2014 were $37.12 and $7.71 per share, respectively. For the years ended December 31, 2015 and 2014 , employees purchased 110,598 and 102,111 shares under the ESPP for a total of $4.1 million and $2.6 million , respectively. As of December 31, 2015 , unrecognized compensation cost related to the current ESPP period which ends on February 29, 2016 was approximately $0.3 million and is expected to be recognized over the next 2 months . Stock-Based Compensation Expense Total stock-based compensation expense recognized by the Company consisted of: Year ended December 31, 2015 2014 2013 (in thousands) Stock-based compensation by category of expense: Cost of revenues $ 3,218 $ 1,579 $ 745 Sales and marketing 2,752 1,562 1,041 Research and development 5,431 3,672 3,469 General and administrative 12,840 7,735 9,004 $ 24,241 $ 14,548 $ 14,259 The Company capitalized $1.1 million , $0.5 million , and $0.1 million of stock compensation costs as software and website application development costs for the years ended December 31, 2015 , 2014 , and 2013 , respectively. Valuation Information The fair value of stock options and stock purchase rights granted under the 2009 Plan, the 2011 Plan and the ESPP were estimated at the date of grant using the Black-Scholes option valuation model with the following weighted average assumptions: Year ended December 31, 2015 2014 2013 Stock option plans: Risk-free interest rate 1.50-1.96 % 1.55-2.02 % 0.95-1.87 % Expected life of options (in years) 5.00-6.08 5.27-6.08 5.27-6.08 Expected dividend yield — % — % — % Volatility 48-49 % 49-53 % 50-52 % Employee Stock Purchase Plan: Risk-free interest rate 0.13-0.24 % 0.05-0.08 % 0.05-0.13 % Expected life of options (in years) 0.5 0.5 0.5 Expected dividend yield — % — % — % Volatility 35-44 % 38-39 % 36-37 % Due to the Company’s limited trading history as a publicly held company, the simplified method was used to estimate the expected term of options granted by taking the average of the vesting term and the contractual term of the option. To estimate volatility, management identified a group of publicly traded peer companies that operate in a similar industry. An estimate was determined based on a weighted average of the historical volatilities of these peer companies and the Company’s common stock during the period of time since the Company’s initial public offering. The risk-free interest rate used was the Federal Reserve Bank’s constant maturities interest rate commensurate with the expected life of the options. The expected dividend yield was zero, as the Company does not anticipate paying a dividend within the relevant time frame. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2015 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
Employee Benefit Plan | Employee Benefit Plan The Company offers a qualified 401(k) defined contribution plan to substantially all of the Company’s employees. Eligible employees may contribute up to the annual amount allowed pursuant to the Internal Revenue Code. In the years ended December 31, 2015, 2014, and 2013 , the Company matched 50% of each dollar of employee contribution, up to a maximum match of three percent of the employee’s compensation. The Company’s contributions to the 401(k) plan for the years ended December 31, 2015, 2014, and 2013 were $2.0 million , $1.3 million , and $0.9 million , respectively, which were recognized as expense in the consolidated statements of comprehensive income. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions A related party is generally defined as (i) any person that holds 10% or more of the Company’s securities and their immediate families, (ii) the Company’s management, (iii) someone that directly or indirectly controls, is controlled by or is under common control with the Company, or (iv) anyone who can significantly influence the financial and operating decisions of the Company. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties. There were no related party transactions for the years ended December 31, 2015 , 2014, and 2013. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | NOTE 13 — Segment Information The Company has concluded that it operates in one industry—mortgage-related software and services. The Company’s chief operating decision maker is its chief executive officer, who reviews financial information presented on a consolidated basis. Accordingly, the Company has determined that it has a single reporting segment and operating unit structure, specifically technology-enabled solutions to help streamline and automate the mortgage origination process for its network participants. The Company is organized primarily on the basis of service lines. Supplemental disclosure of revenues by type is as follows: Year ended December 31, 2015 2014 2013 (in thousands) On-demand revenues $ 249,571 $ 154,315 $ 118,555 On-premise revenues 4,366 7,222 9,926 $ 253,937 $ 161,537 $ 128,481 |
Quarterly Results of Operations
Quarterly Results of Operations Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations Data | Quarterly Results of Operations Data (Unaudited) Three months ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, (unaudited, in thousands, except per share amounts) Revenues $ 64,867 $ 68,939 $ 65,942 $ 54,189 $ 46,577 $ 42,798 $ 39,984 $ 32,178 Cost of revenues (1) 23,555 22,441 20,862 17,350 14,720 11,669 10,576 9,318 Gross profit 41,312 46,498 45,080 36,839 31,857 31,129 29,408 22,860 Operating expenses Sales and marketing (1) 10,562 9,082 8,804 9,760 7,753 6,245 6,451 6,095 Research and development (1) 11,734 11,138 9,282 8,297 8,880 6,456 6,077 6,815 General and administrative (1) 14,103 16,658 14,149 12,302 11,261 9,556 9,551 8,993 Total operating expenses 36,399 36,878 32,235 30,359 27,894 22,257 22,079 21,903 Income from operations 4,913 9,620 12,845 6,480 3,963 8,872 7,329 957 Other income, net 180 154 153 132 145 134 109 100 Income before income taxes 5,093 9,774 12,998 6,612 4,108 9,006 7,438 1,057 Income tax provision (benefit) 271 3,552 5,368 3,028 (192 ) 3,989 2,714 275 Net income $ 4,822 $ 6,222 $ 7,630 $ 3,584 $ 4,300 $ 5,017 $ 4,724 $ 782 Net income per share Basic $ 0.16 $ 0.21 $ 0.26 $ 0.12 $ 0.15 $ 0.18 $ 0.17 $ 0.03 Diluted $ 0.16 $ 0.20 $ 0.25 $ 0.12 $ 0.14 $ 0.17 $ 0.16 $ 0.03 Weighted average common shares used in computing net income per share of common stock: Basic 29,484 29,364 29,092 28,768 28,457 28,008 27,617 27,339 Diluted 30,959 31,006 30,807 30,442 30,068 29,661 29,289 29,070 Net income $ 4,822 $ 6,222 $ 7,630 $ 3,584 $ 4,300 $ 5,017 $ 4,724 $ 782 Other comprehensive income, net of taxes Unrealized gain (loss) on investments (319 ) 27 (41 ) 171 (58 ) (75 ) 75 (3 ) Comprehensive income $ 4,503 $ 6,249 $ 7,589 $ 3,755 $ 4,242 $ 4,942 $ 4,799 $ 779 (1) Stock-based compensation included in the above line items: Three months ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, (unaudited, in thousands) Cost of revenues $ 1,029 $ 761 $ 813 $ 615 $ 514 $ 441 $ 386 $ 238 Sales and marketing 779 783 673 517 435 247 547 333 Research and development 1,470 1,438 1,376 1,147 1,062 1,038 836 736 General and administrative 3,359 3,538 3,215 2,728 1,997 1,326 2,409 2,003 Total $ 6,637 $ 6,520 $ 6,077 $ 5,007 $ 4,008 $ 3,052 $ 4,178 $ 3,310 |
SCHEDULE II VALUATION AND QUALI
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS FOR THE YEARS ENDED DECEMBER 31, 2015 , 2014 and 2013 (in thousands) Balance at Beginning of Period Charged (Credited) to Income Deductions and Other Balance at End of Period Allowance for Doubtful Accounts Year ended December 31, 2015 $ 66 $ 62 $ (4 ) $ 124 Year ended December 31, 2014 $ 81 $ (1 ) $ (14 ) (a) $ 66 Year ended December 31, 2013 $ 74 $ 32 $ (25 ) (a) $ 81 Income Tax Valuation Allowance Year ended December 31, 2015 $ 2,897 $ — $ 1,004 $ 3,901 Year ended December 31, 2014 $ 2,056 $ — $ 841 (b) $ 2,897 Year ended December 31, 2013 $ 1,760 $ — $ 296 (b) $ 2,056 (a) Accounts written off, net of recoveries. (b) Adjustments to offset changes in deferred tax assets. |
Basis of Presentation and Sig22
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Ellie Mae and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management evaluates estimates on a regular basis including those relating to revenue recognition, allowance for doubtful accounts, goodwill, intangible assets, valuation of deferred income taxes, stock-based compensation, and unrecognized tax benefits, among others. Actual results could differ from those estimates and such differences may have a material impact on the Company’s consolidated financial statements and footnotes. |
Cash and Cash Equivalents | Cash and Cash Equivalents All highly liquid investments with original maturities of 90 days or less are considered to be cash equivalents. Cash equivalents are recorded at cost, which approximates fair value. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair values of the Company’s cash equivalents, accounts receivable, and accounts payable approximate their carrying values due to the short maturities of the instruments. The fair value of the Company’s capital lease obligations approximates the carrying value due to the terms continuing to approximate prevailing market terms. All of the Company’s investments that have maturities of greater than 90 days are classified as available-for-sale and are carried at fair value. The Company invests excess cash primarily in investment-grade interest-bearing securities, such as money market accounts, certificates of deposit, commercial paper, corporate bonds, municipal and government agency obligations, and guaranteed obligations of the U.S. government . Fair value is determined based on quoted market rates when observable or utilizing data points that are observable, such as quoted prices, interest rates, and yield curves. The cost of available-for-sale marketable securities sold is based on the specific identification method. Unrealized gains and losses are reported in stockholders’ equity as accumulated other comprehensive (income) loss . Realized gains and losses are included in other income (expense), net . Interest and dividends are included in other income (expense), net when they are earned . |
Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts Trade accounts receivable consist of amounts billed to customers in connection with sales of services. The Company analyzes individual trade accounts receivable by considering historical bad debts, customer creditworthiness, current economic trends, changes in customer payment terms, and collection trends when evaluating the adequacy of the allowance for doubtful accounts. Allowances for doubtful accounts are recognized in the period in which the associated receivable balance is not considered recoverable. Any change in the assumptions used in analyzing accounts receivable may result in changes to the allowance for doubtful accounts and is recognized in the period in which the change occurs. The Company writes off a receivable when all rights, remedies, and recourses against the account and its principals are exhausted and records a benefit when previously reserved accounts are collected. |
Concentration of Credit Risk | Concentration of Credit Risk The financial instruments that potentially expose the Company to concentrations of credit risk consist primarily of cash and cash equivalents, investments, and accounts receivable. The Company’s cash and cash equivalents are deposited with major financial institutions in the United States. At times, such deposits may be in excess of federally insured limits. Management believes that the Company’s investments in cash equivalents and available-for-sale investments are financially sound. The Company’s accounts receivable are derived from revenue earned from customers located in the United States. The Company had no customers that represented 10% or more of revenues for the years ended December 31, 2015, 2014, and 2013 . No customer represented more than 10% of accounts receivable as of December 31, 2015 and 2014 . |
Software and Web Site Development Costs | Software and Website Development Costs The Company capitalizes internal and external costs incurred to develop internal-use software and website applications. Capitalized internal costs include salaries, benefits, and stock-based compensation charges for employees that are directly involved in developing the software or website application, and depreciation of assets used in the development process. Capitalized external costs include third-party consultants involved in the development process, as well as other direct costs incurred therein. Capitalization of costs begins when the preliminary project stage has been completed, management authorizes and commits to funding a project and it is probable that the project will be completed and the software or website application will be used to perform the function intended. Internal and external costs incurred as part of the preliminary project stage are expensed as incurred. Capitalization ceases at the point at which the project is substantially complete and ready for its intended use. Internal and external training costs and maintenance costs during the post-implementation operation stage are expensed as incurred. Internal-developed core software is amortized on a straight-line basis over its estimated useful life, generally three to five years. Amortization of product related internal-use software and website applications is typically recorded to cost of revenues, and amortization of other internal-use software and website applications is typically recorded to the operating expense line to which it most closely relates. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. The capitalized costs are included in property and equipment, net in the accompanying consolidated balance sheets. For the years ended December 31, 2015 , 2014 and 2013 , the Company capitalized software and website application development costs of $29.4 million , $15.9 million , and $5.1 million , respectively. During the year ended December 31, 2014 , the Company recorded a $0.7 million impairment loss on the write-off of internal-use software. There were no such write-offs during the years ended December 31, 2015 and 2013 . |
Property and Equipment | Property and Equipment Property and equipment are stated at cost less accumulated depreciation and are depreciated on a straight-line basis over their estimated useful lives, which is generally three to seven years. Leasehold improvements are amortized on a straight-line basis over their estimated useful lives or over the term of the lease, whichever is shorter. |
Business Combinations | Business Combinations The Company recognizes and measures the identifiable assets acquired in a business combination, the liabilities assumed and any non-controlling interest in the acquiree, at their fair values as of the acquisition date. The Company recognizes contingent consideration arrangements at their acquisition-date fair values with subsequent changes in fair value reflected in earnings, recognizes pre-acquisition loss and gain contingencies at their acquisition-date fair values (with certain exceptions), capitalizes in-process research and development assets and expenses acquisition-related transaction costs as incurred. Due to the inherent uncertainty in the estimates and assumptions used by the Company in its fair value measurements, recorded amounts may be subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of assets acquired and liabilities assumed, with the corresponding offset to goodwill. Any subsequent adjustments, including changes in accounting for deferred tax asset valuation allowances and acquired income tax uncertainties after the measurement period, are recognized in earnings rather than as an adjustment to the cost of the acquisition. |
Goodwill and Other Intangible Assets | Goodwill The Company records goodwill in a business combination when the consideration paid exceeds the fair value of the identifiable net assets acquired. Goodwill is not amortized, but is tested for impairment at least annually in the fourth quarter of the Company’s fiscal year, or whenever changes in circumstances indicate that the fair value of a reporting unit is less than its carrying amount, including goodwill. The annual test is performed at the reporting unit level using a fair-value based approach. The Company’s operations are organized as one reporting unit. In testing for a potential impairment of goodwill, the Company first compares the net aggregate carrying value of assets and liabilities to the aggregate estimated fair value of the Company. If estimated fair value is less than carrying value, then potential impairment exists. The amount of any impairment is then calculated by determining the implied fair value of goodwill using a hypothetical purchase price allocation. Impairment is equivalent to any excess of goodwill carrying value over its implied fair value. There were no impairment charges related to goodwill during the years ended December 31, 2015 , 2014 , and 2013 . The process of evaluating the potential impairment of goodwill requires significant judgment at many points during the analysis, including calculating fair value of the reporting unit based on estimated future cash flows and discount rates to be applied. Intangible Assets Intangible assets are stated at cost less accumulated amortization. Intangible assets include developed technology, trade names, and customer lists and contracts. Intangible assets with finite lives are amortized on a straight-line basis over the estimated periods of benefit, as follows: Developed technology 2-5 years Trade names with finite lives 2-3 years Customer lists and contracts 4-9 years The AllRegs tradename is the only intangible asset with an indefinite useful life. The Company evaluates the remaining useful life of indefinite-lived intangible assets each reporting period to determine whether events and circumstances continue to support an indefinite useful life. The Company evaluates its finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset or asset group to future undiscounted net cash flows expected to be generated by the asset or asset group. If such assets or asset groups are considered to be impaired, the impairment loss to be recognized is measured by the amount by which the carrying amounts of the assets or asset groups exceed the fair value of the assets or asset groups. Assets to be disposed of are reported at the lower of the carrying amount and fair value less costs to sell. Except as described in Note 6 , there has been no loss on impairment or disposal of intangible assets. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates its long-lived assets for indications of possible impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Except for the impairment losses recorded on internal-use software and intangible assets described elsewhere in this note, there has been no loss on impairment or disposal of long-lived assets. |
Revenue Recognition | Revenue Recognition The Company generates revenue primarily from transaction-based fees and fees for software and related services. On-demand revenue is generated from company-hosted software subscriptions that customers access through the Internet and from customers that pay fees based on a per closed loan, or success, basis subject to monthly base fees, which the Company refers to as Success-Based Pricing. Additionally, on-demand revenue is comprised of software services sold transactionally; Ellie Mae Network transaction fees; education and training, loan product, and guideline data and analytics services under the AllRegs brand ; and professional services which include consulting, implementation, and training services. On-premise revenue is generated from maintenance services, sales of customer-hosted software licenses, and related professional services. Sales taxes assessed by governmental authorities are excluded from revenue. The Company commences revenue recognition when all of the following conditions are satisfied: • There is persuasive evidence of an arrangement; • The service has been or is being provided to the customer; • The collection of the fees is reasonably assured; and • The amount of fees to be paid by the customer is fixed or determinable. On-Demand Revenues Subscription Services and Usage-Based Fee Arrangements. Subscription services and usage-based fee arrangements generally include a combination of the Company’s products delivered as software-as-a-service (“SaaS”) and support services. These arrangements are generally non-cancelable and do not contain refund-type provisions. This revenue typically includes the following: SaaS Encompass Revenue. The Company offers web-based, on-demand access to Encompass software for a monthly recurring fee. The Company provides the right to access its loan origination software and handles the responsibility of managing the servers, providing security, backing up the data and applying updates. Customers under SaaS arrangements do not take possession of the software at any time during the term of the agreement. Subscription revenue is recognized ratably over the contract terms as subscription services are provided, beginning on the commencement date of each contract, which is the date the Company’s service is made available to customers. Contracts generally range from one year to five years . Alternatively, customers can elect to pay on a success basis. Success basis contracts generally have a term of one to five years and are subject to monthly base fees, which enable customers to close loans up to a contractually agreed-to minimum number of transactions, and additional closed loan fees, which are assessed for loans closed in excess of the minimum. Revenue is earned from both base fees and additional closed loan fees as the result of the customer’s usage of Encompass. Monthly base fees are recognized over the respective monthly service period as the subscription services are provided. Additional closed loans fees are recognized when the loans are reported as closed. This offering also includes Encompass CenterWise, Encompass Compliance Service, and Encompass Docs Solution as integrated components, which are combined elements of the arrangement that are delivered in conjunction with the SaaS Encompass offering and therefore are not accounted for separately. Encompass CenterWise Revenue. Encompass CenterWise is a bundled offering of electronic document management (“EDM”) and websites used for customer relationship management. Generally, revenue is recognized for Encompass CenterWise after the service is rendered, except when Encompass CenterWise is automatically included as an integrated component of the SaaS Encompass offering, in which case the associated revenue is recognized as described above. Services Revenue. The Company provides a variety of mortgage-related and other business services, including automated documentation; fraud detection, valuation, validation, and risk analysis; income verification; marketing and customer relationship management; flood zone certifications; and compliance reports. Services revenue is recognized upon completion of the services. Transactional Revenue. The Company has entered into agreements with various lenders, service providers and certain government-sponsored entities participating in the mortgage origination process that provide them access to, and ability to interoperate with, mortgage originators on the Ellie Mae Network. Under these agreements, the Company earns transaction fees when transactions are processed through the Ellie Mae Network. Transaction revenue is recognized when there is evidence that the qualifying transactions have occurred on the Ellie Mae Network and collection of the resulting receivable is reasonably assured. Subscriptions to Online Research and Data Resources: The Company provides mortgage originators and underwriters with access to online databases of various federal and state laws and regulations and forms as well as mortgage investor product guidelines. Subscription fees are recognized ratably over the subscription term as subscription services are provided, which is typically one year. Professional Services Revenue: Professional services revenue is generally recognized when milestones are achieved for fixed price contracts or as the services are rendered for time and material contracts. The majority of the Company’s professional services contracts are on a fixed price basis. Training revenue is recognized as the services are rendered. On-Premise Revenue Revenue from the sale of software licenses is recognized in the month in which the required revenue recognition criteria are met, generally in the month in which the software is delivered. Revenue from the sale of maintenance services and professional services is recognized over the period in which the services are provided. Multiple Element Arrangements The Company has entered into both subscription services and software arrangements with multiple elements. For arrangements with multiple deliverables , the Company evaluates whether the individual deliverables qualify as separate units of accounting. In order to treat deliverables in a multiple-deliverable arrangement as separate units of accounting, the deliverables must have standalone value upon delivery. Subscription services agreements with multiple elements generally include multiple subscriptions and professional services. When such agreements involve multiple elements that qualify as separate units of accounting, the Company allocates arrangement consideration to all deliverables at the inception of an arrangement based on the relative selling price method in accordance with the selling price hierarchy, which includes: (i) vendor specific objective evidence (“VSOE”) if it is available; (ii) third-party evidence (“TPE”) if VSOE is not available; and (iii) the best estimate of selling price (“BESP”) if neither VSOE nor TPE is available. VSOE. The Company determines VSOE based on its historical pricing and discounting practices for the specific product or service when sold separately. In determining VSOE, the Company requires that a substantial majority of the selling prices for these services fall within a reasonably narrow pricing range. The Company has not historically priced its subscription services within a narrow range. As a result, the Company has not been able to establish selling prices for subscription services based on VSOE. TPE. When VSOE cannot be established for deliverables in multiple element arrangements, the Company applies judgment with respect to whether it can establish a selling price based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately. Generally, the Company’s go-to-market strategy differs from that of its peers and its offerings contain a significant level of differentiation such that the comparable pricing of services with similar functionality cannot be obtained. Furthermore, the Company is unable to reliably determine what similar competitor services’ selling prices are on a standalone basis. As a result, the Company has not been able to establish selling prices based on TPE. BESP. When the Company is unable to establish a selling price using VSOE or TPE, the Company uses BESP in its allocation of arrangement consideration. The objective of BESP is to determine the price at which the Company would transact a sale if the service was sold on a standalone basis. When establishing BESP, the Company reviews company specific factors used to determine list price and makes adjustments as appropriate to reflect current market conditions and pricing behavior. The Company’s process for establishing list price includes assessing the cost to provide a particular product or service, surveying customers to determine market expectations, analyzing customer demographics, and taking into account similar products and services historically sold by the Company. The Company continues to review the factors used to establish list price and adjusts BESP as necessary. Because the Company has determined that neither VSOE nor TPE is available, it uses BESP to allocate the selling price to multiple elements in subscription services arrangements. The amount of revenue allocated to delivered items is limited by contingent revenue, if any. Subscription services have standalone value as such services are often sold separately. Additionally, the Company has concluded that professional services included in multiple element arrangements have standalone value. In establishing standalone value, the Company considered the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, and the timing of when the professional services contract was signed in comparison to the subscription service start date. For software arrangements with multiple elements (e.g., maintenance and support contracts bundled with licenses), revenue is allocated to the delivered elements of the arrangement when VSOE is determinable, using the residual value method based on objective evidence of the fair value of the undelivered elements, which is specific to the Company. When VSOE is not determinable, the entire arrangement is recognized ratably over the term of the contract. Revenue is recognized under this model upon receipt of cash payment from the customer if collectability is not reasonably assured and when other revenue recognition criteria have been met. The VSOE of fair value for maintenance and support obligations related to licenses is based upon the prices paid for the separate renewal of these services by customers. Maintenance revenues are recognized ratably over the period of the maintenance contract. |
Deferred Revenue | uses BESP to allocate the selling price to multiple elements in subscription services arrangements. The amount of revenue allocated to delivered items is limited by contingent revenue, if any. Subscription services have standalone value as such services are often sold separately. Additionally, the Company has concluded that professional services included in multiple element arrangements have standalone value. In establishing standalone value, the Company considered the following factors for each professional services agreement: availability of the services from other vendors, the nature of the professional services, and the timing of when the professional services contract was signed in comparison to the subscription service start date. For software arrangements with multiple elements (e.g., maintenance and support contracts bundled with licenses), revenue is allocated to the delivered elements of the arrangement when VSOE is determinable, using the residual value method based on objective evidence of the fair value of the undelivered elements, which is specific to the Company. When VSOE is not determinable, the entire arrangement is recognized ratably over the term of the contract. Revenue is recognized under this model upon receipt of cash payment from the customer if collectability is not reasonably assured and when other revenue recognition criteria have been met. The VSOE of fair value for maintenance and support obligations related to licenses is based upon the prices paid for the separate renewal of these services by customers. Maintenance revenues are recognized ratably over the period of the maintenance contract. Deferred Revenue Deferred revenue represents billings or payments received in advance of revenue recognition and is recognized as the revenue recognition criteria are met. Balances consist primarily of prepaid subscription services and professional, training, and maintenance services not yet provided as of the balance sheet date. Deferred revenue that will be recognized during the succeeding 12 month period is recorded as current deferred revenue, and the remaining portion is recorded as other long-term liabilities. Long-term deferred revenue at December 31, 2015 and 2014 was not material. |
Deferred Commission Expense | Deferred Commission Expense Deferred commission expenses are the incremental costs that are directly associated with non-cancelable subscription contracts with customers and consist of sales commissions paid to our direct sales force. Commissions are calculated based on a percentage of the revenues for the non-cancelable term of subscription contracts, which are typically one to five years . The deferred commission expense amounts are recoverable through the future revenue streams under the non-cancelable customer contracts. The plans also include claw back provisions, which require repayment of a proportionate amount of commissions, should customers cancel their contracts prior to the end of the initial contractual term. During the years ended December 31, 2015 , 2014 , and 2013 , the Company deferred $3.6 million , $2.5 million , and $1.9 million of commission expense, respectively. At December 31, 2015 and 2014 , $5.3 million and $3.3 million of deferred commission remained on our consolidated balance sheets, respectively. |
Warranties and Indemnification | Warranties and Indemnification The Company provides a warranty for its software products and services to its customers and accounts for its warranties as a contingent liability. The Company’s software is generally warranted to perform substantially as described in the associated product documentation and to satisfy defined levels of uptime reliability. The Company’s services are generally warranted to be performed consistent with industry standards. The Company has not provided for a warranty accrual as of December 31, 2015 or 2014 . To date, the Company’s product warranty expense has not been significant. The Company generally agrees to indemnify its customers against legal claims that the Company’s software products infringe certain third-party intellectual property rights and accounts for its indemnification obligations as a contingent liability. In addition, the Company may also incur liability under its contracts if it breaches its warranties as well as certain data security and/or confidentiality obligations. To date, the Company has not been required to make any payment resulting from either infringement claims asserted against its customers or from claims in connection with a breach of the data security and/or confidentiality obligations in the Company’s contracts. The Company has not recorded a liability for related costs as of December 31, 2015 or 2014 . The Company has obligations under certain circumstances to indemnify each executive officer and member of the Company’s board of directors against judgments, fines, settlements, and expenses related to claims against such executive officer or director and otherwise to the fullest extent permitted under Delaware law and the Company’s bylaws and certificate of incorporation. |
Cost of Revenues | Cost of Revenues The Company’s cost of revenues consists primarily of salaries, benefits and related costs (including stock-based compensation), allocated facilities costs, customer support, data centers, expenses for document preparation, income verification, and compliance services, depreciation on computer equipment used in supporting the Ellie Mae Network , the Company’s SaaS Encompass and Encompass CenterWise offerings, amortization of acquired intangible assets and capitalized internal-use software and website applications directly involved in revenue producing activities and professional services associated with implementation of software. |
Research and Development Costs | Research and Development Costs The Company’s research and development expenses consist primarily of: salaries and benefits, including bonuses and stock-based compensation expense; fees to contractors engaged in the development and support of the Ellie Mae Network , Encompass software and other products; and allocated facilities costs. Research and development costs that are not capitalized as internal-use software are expensed as they are incurred. |
Advertising Expenses | Advertising Expenses The Company expenses advertising costs as incurred. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation related to awards granted under its 2009 Stock Option and Incentive Plan (the “ 2009 Plan ”), 2011 Equity Incentive Award Plan (the “ 2011 Plan ”), and Employee Stock Purchase Plan (“ ESPP ”). The Company recognizes compensation expense related to stock option grants that are ultimately expected to vest based on estimated fair values on the date of grant using the Black-Scholes option-pricing model. Such expense is recognized on a straight-line basis over the requisite service period of the award, which generally equals the vesting period. The Company recognizes compensation expense related to Restricted Stock Units (“ RSUs ”), Performance-Vesting Restricted Stock Units and Performance Awards (“ Performance Awards ”) based on the fair market value of the underlying shares of common stock as of the date of grant. Expense related to the RSUs is recognized on a straight-line basis over the requisite service period of the award, which generally equals the vesting period. Expense related to the Performance Awards and Performance-Vesting RSUs is recognized under the graded vesting method over the requisite service period of the award, which results in the recognition of a larger portion of the expense during the beginning of the vesting period than in the end of the vesting period. Management estimates the probable number of shares of common stock that will be granted until the achievement of the performance goals is known. The date of grant is the date at which the Company and the employee reach a mutual understanding of the key terms and conditions of the award, appropriate approvals are received by approval by the equity incentive committee of the board of directors and the Company becomes contingently obligated to issue equity instruments to the employee who renders the requisite service . The Company is required to estimate potential forfeitures of stock grants and adjust recorded compensation cost accordingly. The estimate of forfeitures is based on historical experience and is adjusted over the requisite service period to the extent that actual forfeitures differ, or are expected to differ, from the prior estimates. Changes in estimated forfeitures will be recognized in the period of change and will impact the amount of stock-based compensation expense to be recognized in future periods . All stock option awards to non-employees are accounted for at the fair value of the consideration received or the fair value of the equity instrument issued, as calculated using the Black-Scholes option-pricing model. The measurement of stock-based compensation for non-employees is subject to periodic adjustments based on changes in fair value as the options vest, and the expense is recognized over the period services are rendered. |
Income Taxes | Income Taxes The Company accounts for income taxes under the asset and liability method, which requires the recognition of taxes payable or refundable for the current year, and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The measurement of current and deferred tax liabilities and assets is based on provisions of the enacted tax law; the effects of future changes in tax laws or rates are not anticipated. Valuation allowances are established when necessary to reduce deferred tax assets to the amount that the Company believes is more likely than not to be realized. The Company’s determination of its valuation allowance is based upon a number of assumptions, judgments, and estimates, including forecasted earnings, future taxable income, and the relative proportions of revenue and income before taxes in the various jurisdictions in which it operates. The Company operates in various tax jurisdictions and is subject to audit by various tax authorities. Tax positions are based upon their technical merits, relevant tax law, and the specific facts and circumstances as of each reporting period. Changes in facts and circumstances could result in material changes to the amounts recorded for such tax positions. A tax position is only recognized in the financial statements if it is “more likely than not” to be sustained based solely on its technical merits as of the reporting date. The Company considers many factors when evaluating and estimating its tax positions and tax benefits, which may require periodic adjustments that could result in recognition of additional tax benefits or additional charges to the tax provision and may not accurately reflect actual outcomes. The Company has a policy to classify accrued interest and penalties associated with uncertain tax positions together with the related liability, and the expenses incurred related to such accruals are included in the provision for income taxes. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss) . Other comprehensive income (loss) includes certain changes in equity that are excluded from net income, specifically unrealized gains (losses) on available-for-sale investments. Except for net realized gain (loss) on investments which was not significant, there were no reclassifications out of accumulated other comprehensive income (loss) that affected net income during the years ended December 31, 2015 , 2014 , and 2013 . |
Geographical Information | Geographical Information The Company is domiciled in the United States and had no international operations or sales to customers outside of the United States for the years ended December 31, 2015, 2014, and 2013 . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“ FASB ”) issued Accounting Standards Update (“ ASU ”) No. 2014-09, Revenue from Contracts with Customers (“ ASU 2014-09 ”), which outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This standard also requires significantly expanded disclosures about revenue recognition. In August 2015, the FASB deferred the effective date of this standard by one year. The new effective date for public entities will be for fiscal years, and interim periods within those years, beginning after December 15, 2017, but entities will be permitted to early adopt the standard as of the original effective date. The Company has not yet developed an expectation of the impact that adoption will have on its consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles-Goodwill and Other-Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement (“ASU 2015-05”), which clarifies the circumstances under which a cloud computing customer would account for the arrangement as a license of internal-use software. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. The adoption of ASU 2015-05 is not expected to materially impact the Company’s consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments (“ASU 2015-16”), which requires that an acquirer recognize adjustments to estimated amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the estimated amounts, calculated as if the accounting had been completed at the acquisition date. The amendments also require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the estimated amounts had been recognized as of the acquisition date. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is allowed. The Company early adopted ASU 2015-16, which did not impact the Company’s consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes (“ASU 2015-17”), which eliminates the current requirement for organizations to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be required to classify all deferred tax assets and liabilities as noncurrent. This standard is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2016. Although ASU 2015-17 isn’t required for public companies to implement until fiscal years beginning after December 15, 2016, early adoption is allowed. The Company early adopted ASU 2015-17 effective December 31, 2015 and classified all of its deferred tax assets and liabilities, along with its valuation allowance as noncurrent on the balance sheet. The Company applied ASU 2015-17 prospectively and did not retroactively adjust any prior period. The adoption had no impact on Company’s consolidated statements of comprehensive income. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016-01”), which requires the following: • equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; • public business entities must use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; • a separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables); • the elimination of the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost. This standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017. The Company has not yet developed an expectation of the impact that adoption will have on its consolidated financial statements. |
Basis of Presentation and Sig23
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Schedule of Other Intangible Assets, Finite Lives | Intangible assets are stated at cost less accumulated amortization. Intangible assets include developed technology, trade names, and customer lists and contracts. Intangible assets with finite lives are amortized on a straight-line basis over the estimated periods of benefit, as follows: Developed technology 2-5 years Trade names with finite lives 2-3 years Customer lists and contracts 4-9 years |
Other income (expense), net | Other income, net consisted of the following: Year ended December 31, 2015 2014 2013 (in thousands) Interest income $ 712 $ 556 $ 650 Net realized gain (loss) on investments — 1 (55 ) Interest expense (93 ) (69 ) (135 ) Total other income, net $ 619 $ 488 $ 460 |
Net Income Per Share of Commo24
Net Income Per Share of Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of components of net income (loss) per share of common stock | Net income per share of common stock is calculated by dividing net income |
Schedule of common shares excluded from computation of diluted net income (loss) per share | The following potential weighted average common shares were excluded from the computation of diluted net income per share, as their effect would have been anti-dilutive: Year ended December 31, 2015 2014 2013 Employee stock options and awards 225,122 624,277 758,900 |
Financial Instruments and Fai25
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Financial Instruments and Fair Value Measurements [Abstract] | |
Fair value hierarchy of Company's financial assets on recurring basis | The following tables set forth by level within the fair value hierarchy the Company’s financial assets that were accounted for at fair value on a recurring basis, according to the valuation techniques the Company used to determine their values: Fair Value at Fair Value Measurements Using Inputs Considered as December 31, 2015 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 6,788 $ 6,788 $ — $ — Corporate notes and obligations 28,205 — 28,205 — Certificates of deposit 12,928 — 12,928 — Municipal obligations 2,648 — 2,648 — U.S. government and government agency obligations 60,667 19,429 41,238 — $ 111,236 $ 26,217 $ 85,019 $ — Fair Value at Fair Value Measurements Using Inputs Considered as December 31, 2014 Level 1 Level 2 Level 3 (in thousands) Money market funds $ 3,220 $ 3,220 $ — $ — Corporate notes and obligations 29,035 — 29,035 — Certificates of deposit 14,962 — 14,962 — Municipal obligations 3,155 — 3,155 — U.S. government and government agency obligations 60,879 16,946 43,933 — $ 111,251 $ 20,166 $ 91,085 $ — |
Carrying amounts and estimated fair value of cash and cash equivalents and short-term investments | The carrying amounts, gross unrealized gains and losses and estimated fair value of cash and cash equivalents and both short-term and long-term investments consisted of the following: December 31, 2015 Amortized Cost Unrealized Gains Unrealized Losses Carrying or Fair Value (in thousands) Cash and cash equivalents: Cash $ 27,608 $ — $ — $ 27,608 Money market funds 6,788 — — 6,788 $ 34,396 $ — $ — $ 34,396 Investments: Corporate notes and obligations $ 28,314 $ 1 $ (110 ) $ 28,205 Certificates of deposit 12,945 5 (22 ) 12,928 Municipal obligations 2,647 1 — 2,648 U.S. government and government agency obligations 60,799 10 (142 ) 60,667 $ 104,705 $ 17 $ (274 ) $ 104,448 December 31, 2014 Amortized Cost Unrealized Gains Unrealized Losses Carrying or Fair Value (in thousands) Cash and cash equivalents: Cash $ 23,536 $ — $ — $ 23,536 Money market funds 3,220 — — 3,220 $ 26,756 $ — $ — $ 26,756 Investments: Corporate notes and obligations $ 29,071 $ 4 $ (40 ) $ 29,035 Certificates of deposit 14,972 11 (21 ) 14,962 Municipal obligations 3,149 6 — 3,155 U.S. government and government agency obligations 60,934 18 (73 ) 60,879 $ 108,126 $ 39 $ (134 ) $ 108,031 |
Gross unrealized losses and the related fair values of investments in a continuous unrealized loss position | The following table shows the gross unrealized losses and the related fair values of the Company’s investments that have been in a continuous unrealized loss position: December 31, 2015 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) Corporate notes and obligations $ 23,969 $ (99 ) $ 2,514 $ (11 ) $ 26,483 $ (110 ) Certificates of deposit 9,284 (22 ) — — 9,284 (22 ) U.S. government, government agency, and municipal obligations 48,394 (139 ) 1,793 (3 ) 50,187 (142 ) $ 81,647 $ (260 ) $ 4,307 $ (14 ) $ 85,954 $ (274 ) December 31, 2014 Less than 12 Months 12 Months or Greater Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) Corporate notes and obligations $ 19,535 $ (40 ) $ — $ — $ 19,535 $ (40 ) Certificates of deposit 5,735 (21 ) — — 5,735 (21 ) U.S. government and government agency obligations 34,899 (73 ) — — 34,899 (73 ) $ 60,169 $ (134 ) $ — $ — $ 60,169 $ (134 ) |
Summary of the maturities of the Company's investments | The following table summarizes the maturities of the Company’s investments at December 31, 2015 : Carrying or Fair Value (in thousands) 2016 $ 48,975 2017 30,771 2018 24,702 Total $ 104,448 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Intangible Assets Acquired as Part of Business Combination | The allocation of the consideration of $5.0 million to the identifiable tangible and intangible assets acquired and liabilities assumed under the purchase method of accounting, based on their estimated fair values as of the acquisition date, is summarized in the following table (in thousands): Amortizable intangible assets: Developed technology $ 2,927 Customer relationships 643 Trade name 41 Goodwill 1,409 Total purchase consideration $ 5,020 |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Statement of Financial Position [Abstract] | |
Prepaid Expenses and Other Assets | Prepaid expenses and other current assets consisted of the following: December 31, 2015 2014 (in thousands) Prepaid expenses $ 8,518 $ 5,667 Income tax receivable 509 1,892 Deferred tax assets, net — 5,132 Other receivables 847 3,330 $ 9,874 $ 16,021 |
Property and Equipment | Property and equipment, net, consisted of the following: December 31, 2015 2014 (in thousands) Computer equipment and software (1) $ 55,928 $ 24,014 Furniture and fixtures 5,292 1,929 Leasehold improvements 14,405 2,289 Property and equipment 75,625 28,232 Accumulated depreciation and amortization (28,552 ) (17,838 ) Net property and equipment 47,073 10,394 Internal-use software and other assets not placed in service 34,287 18,300 $ 81,360 $ 28,694 |
Other Intangible Assets | Intangible assets, net, consisted of the following: December 31, 2015 Gross carrying Accumulated Net intangibles Weighted Average Remaining Useful Life (in thousands) (in years) Assets subject to amortization: Developed technology $ 11,535 $ (5,668 ) $ 5,867 3.1 Trade names 331 (307 ) 24 0.8 Customer relationships 19,400 (6,875 ) 12,525 4.8 Order backlog 370 (15 ) 355 3.8 Total assets subject to amortization 31,636 (12,865 ) 18,771 4.2 Assets not subject to amortization: Trade name 4,039 4,039 $ 35,675 $ (12,865 ) $ 22,810 December 31, 2014 Gross carrying Accumulated Net intangibles Weighted Average Remaining Useful Life (in thousands) (in years) Assets subject to amortization: Developed technology $ 7,035 $ (2,759 ) $ 4,276 2.3 Trade names 301 (279 ) 22 1.1 Customer relationships 17,200 (4,085 ) 13,115 5.3 Total assets subject to amortization $ 24,536 $ (7,123 ) $ 17,413 4.6 Assets not subject to amortization: Trade name 4,039 4,039 $ 28,575 $ (7,123 ) $ 21,452 |
Minimum future amortization expense for intangible assets | Minimum future amortization expense for intangible assets at December 31, 2015 was as follows: (in thousands) 2016 $ 5,521 2017 4,294 2018 3,443 2019 3,166 2020 1,778 Thereafter 569 $ 18,771 |
Accrued and Other Current Liabilities | Accrued and other current liabilities consisted of the following: December 31, 2015 2014 (in thousands) Accrued payroll and related expenses $ 23,938 $ 11,071 Accrued commissions 1,993 917 Accrued professional fees 223 362 Accrued royalties 1,546 919 Sales and other taxes 1,536 357 Current portion of leases payable 3,845 422 Other accrued expenses 4,226 2,774 $ 37,307 $ 16,822 |
Deferred Revenue | Deferred revenues consisted of the following: December 31, 2015 2014 (in thousands) Software maintenance $ 386 $ 1,310 Professional services and training (1) 6,430 3,566 Subscriptions (1) 9,225 4,816 Other (1) 63 213 Total 16,104 9,905 Less portion included in other long-term liabilities (240 ) (176 ) $ 15,864 $ 9,729 ________ (1) Certain reclassifications of prior period amounts have been made to conform to the current period presentation, such reclassifications did not materially change previously reported consolidated financial statements. Other Long-Term Liabilities Other long-term liabilities consisted of the following: December 31, 2015 2014 (in thousands) Deferred revenue $ 240 $ 176 Deferred rent 8,256 317 Deferred tax liability 1,777 2,501 $ 10,273 $ 2,994 |
Schedule of Goodwill [Table Text Block] | The Company completed its annual impairment tests during the fourth quarters of 2015 , 2014 , and 2013 and determined that goodwill was not impaired. The changes in the carrying value of goodwill during the year ended December 31, 2015 were as follows (in thousands): Balance at January 1, 2015 $ 65,338 Addition: Mortgage Returns acquisition 9,209 Balance at December 31, 2015 $ 74,547 The changes in the carrying value of goodwill during the year ended December 31, 2014 were as follows (in thousands): Balance at January 1, 2014 $ 51,051 Addition: MortgageCEO acquisition 1,409 Addition: AllRegs acquisition 12,878 Balance at December 31, 2014 $ 65,338 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for income taxes were as follows: Year ended December 31, 2015 2014 2013 (in thousands) Current Federal $ 8,070 $ 5,761 $ 9,664 State 1,894 630 814 9,964 6,391 10,478 Deferred Federal 1,899 336 (4,236 ) State 356 59 (128 ) 2,255 395 (4,364 ) Income tax provision $ 12,219 $ 6,786 $ 6,114 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes differed from the amount of income taxes determined by applying the U.S. statutory federal income tax rate as follows: Year ended December 31, 2015 2014 2013 Tax at federal statutory rate 35 % 35 % 35 % Other non-deductible items 1 — — State taxes, net of federal benefit 5 3 3 Domestic production activities deduction — — (2 ) Valuation allowance — — — Stock-based compensation 1 1 1 Prior year true ups — — (2 ) Tax credits (7 ) (8 ) (4 ) Income tax provision 35 % 31 % 31 % |
Schedule of Deferred Tax Assets and Liabilities | The components of net deferred tax assets (liabilities) were as follows: December 31, 2015 2014 (in thousands) Deferred tax assets Research and development credits $ 3,901 $ 2,897 Stock-based compensation 10,309 6,802 Reserves and accruals 8,779 3,613 Net operating loss carryforwards — 366 Total deferred tax assets 22,989 13,678 Valuation allowance (3,901 ) (2,897 ) Total deferred tax assets, net of valuation allowance 19,088 10,781 Deferred tax liabilities Depreciation and amortization (16,171 ) (6,026 ) Book/tax basis in acquired assets (697 ) (271 ) Total deferred tax liabilities (16,868 ) (6,297 ) Net deferred tax assets $ 2,220 $ 4,484 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of unrecognized tax benefits is as follows: Year ended December 31, 2015 2014 2013 (in thousands) Beginning balance $ 2,408 $ 1,806 $ 1,262 Additions based on tax positions related to the current year 1,023 594 402 Additions based on tax positions related to prior years including acquisitions 9 8 142 Ending balance $ 3,440 $ 2,408 $ 1,806 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital and Operating Leases | Future minimum lease payments under non-cancelable operating and capital leases at December 31, 2015 consisted of the following: Capital Leases Operating Leases (in thousands) 2016 $ 3,899 $ 4,639 2017 619 4,934 2018 87 4,896 2019 — 4,844 2020 — 4,834 Thereafter — 20,407 Total minimum lease payments 4,605 $ 44,554 Less amount representing interest (75 ) Present value of minimum lease payments 4,530 Less current portion (3,845 ) Long-term portion of lease obligations $ 685 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of shares of common stock reserved and available for future issuance | In May 2014, the board of directors approved a repurchase program authorizing to repurchase up to $75.0 million of our common stock over a 36-month period. As of December 31, 2015, $43.5 million remained available for future stock repurchases under this repurchase program. The Company repurchased the following shares of common stock under the repurchase program: Shares Repurchased Weighted Average Purchase Price per Share Total Amount (in thousands) Year Ended 2015 503,450 $ 62.63 $ 31,530 The following number of shares of common stock were reserved and available for future issuance at December 31, 2015 : Reserved Shares Options and awards granted and outstanding under stock incentive plans 3,772,299 Shares available for future grant under the stock incentive plans 2,886,881 Shares available under the Employee Stock Purchase Plan 1,204,994 Total 7,864,174 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Company's stock option activities | The following table summarizes the Company’s stock option activity under the 2009 Plan and 2011 Plan: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in years) (in thousands) Outstanding at December 31, 2012 3,461,255 $ 7.19 Granted 841,371 $ 23.39 Exercised (854,566 ) $ 5.39 Forfeited or expired (163,388 ) $ 20.10 Outstanding at December 31, 2013 3,284,672 $ 11.17 Granted 904,602 $ 28.76 Exercised (1,048,053 ) $ 7.19 Forfeited or expired (90,920 ) $ 22.46 Outstanding at December 31, 2014 3,050,301 $ 17.41 Granted 385,776 $ 55.30 Exercised (822,133 ) $ 12.28 Forfeited or expired (98,615 ) $ 30.12 Outstanding at December 31, 2015 2,515,329 $ 24.40 7.14 $ 90,818 Ending vested and expected to vest at December 31, 2015 2,443,198 $ 23.96 7.10 $ 89,268 Exercisable at December 31, 2015 1,474,236 $ 15.80 6.23 $ 65,601 |
Stock options activity, additional information | Following is additional information pertaining to the Company’s stock option activity: Year ended December 31, 2015 2014 2013 (in thousands except for per option data) Weighted average grant-date fair value per option granted $ 26.13 $ 14.43 $ 11.54 Grant-date fair value of options vested $ 8,285 $ 6,126 $ 3,775 Intrinsic value of options exercised $ 38,971 $ 26,277 $ 18,024 Proceeds received from options exercised $ 10,094 $ 7,537 $ 4,623 |
Summary of RSU activities | The following table summarizes the Company’s RSU, Performance Award, and performance-vesting RSU activity: RSUs Performance Awards and performance-vesting RSUs Number of Shares Weighted Average Grant Date Fair Value Per Share Number of Shares Weighted Average Grant Date Fair Value Per Share Outstanding at December 31, 2012 40,625 8.90 588,000 25.79 Granted 301,767 24.78 124,300 19.60 Released (20,000 ) 14.71 (147,000 ) 25.79 Forfeited or expired (65,014 ) 24.62 — — Outstanding at December 31, 2013 257,378 23.10 565,300 24.43 Granted 525,063 28.85 155,953 24.93 Released (84,682 ) 22.56 (178,076 ) 24.71 Forfeited or expired (111,901 ) 29.02 (58,000 ) 24.91 Outstanding at December 31, 2014 585,858 27.20 485,177 25.61 Granted 401,158 62.62 205,816 47.18 Released (179,530 ) 25.97 (182,711 ) 24.69 Forfeited or expired (58,798 ) 39.40 — — Outstanding at December 31, 2015 748,688 $ 45.52 508,282 $ 34.68 Ending vested and expected to vest at December 31, 2015 661,523 508,282 |
Stock-based compensation expense | Total stock-based compensation expense recognized by the Company consisted of: Year ended December 31, 2015 2014 2013 (in thousands) Stock-based compensation by category of expense: Cost of revenues $ 3,218 $ 1,579 $ 745 Sales and marketing 2,752 1,562 1,041 Research and development 5,431 3,672 3,469 General and administrative 12,840 7,735 9,004 $ 24,241 $ 14,548 $ 14,259 |
Schedule of Stock Options and Employee Stock Purchase Plan Valuation Assumptions | The fair value of stock options and stock purchase rights granted under the 2009 Plan, the 2011 Plan and the ESPP were estimated at the date of grant using the Black-Scholes option valuation model with the following weighted average assumptions: Year ended December 31, 2015 2014 2013 Stock option plans: Risk-free interest rate 1.50-1.96 % 1.55-2.02 % 0.95-1.87 % Expected life of options (in years) 5.00-6.08 5.27-6.08 5.27-6.08 Expected dividend yield — % — % — % Volatility 48-49 % 49-53 % 50-52 % Employee Stock Purchase Plan: Risk-free interest rate 0.13-0.24 % 0.05-0.08 % 0.05-0.13 % Expected life of options (in years) 0.5 0.5 0.5 Expected dividend yield — % — % — % Volatility 35-44 % 38-39 % 36-37 % |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Supplemental disclosure of revenue by service type | Supplemental disclosure of revenues by type is as follows: Year ended December 31, 2015 2014 2013 (in thousands) On-demand revenues $ 249,571 $ 154,315 $ 118,555 On-premise revenues 4,366 7,222 9,926 $ 253,937 $ 161,537 $ 128,481 |
Quarterly Results of Operatio33
Quarterly Results of Operations Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Three months ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, (unaudited, in thousands, except per share amounts) Revenues $ 64,867 $ 68,939 $ 65,942 $ 54,189 $ 46,577 $ 42,798 $ 39,984 $ 32,178 Cost of revenues (1) 23,555 22,441 20,862 17,350 14,720 11,669 10,576 9,318 Gross profit 41,312 46,498 45,080 36,839 31,857 31,129 29,408 22,860 Operating expenses Sales and marketing (1) 10,562 9,082 8,804 9,760 7,753 6,245 6,451 6,095 Research and development (1) 11,734 11,138 9,282 8,297 8,880 6,456 6,077 6,815 General and administrative (1) 14,103 16,658 14,149 12,302 11,261 9,556 9,551 8,993 Total operating expenses 36,399 36,878 32,235 30,359 27,894 22,257 22,079 21,903 Income from operations 4,913 9,620 12,845 6,480 3,963 8,872 7,329 957 Other income, net 180 154 153 132 145 134 109 100 Income before income taxes 5,093 9,774 12,998 6,612 4,108 9,006 7,438 1,057 Income tax provision (benefit) 271 3,552 5,368 3,028 (192 ) 3,989 2,714 275 Net income $ 4,822 $ 6,222 $ 7,630 $ 3,584 $ 4,300 $ 5,017 $ 4,724 $ 782 Net income per share Basic $ 0.16 $ 0.21 $ 0.26 $ 0.12 $ 0.15 $ 0.18 $ 0.17 $ 0.03 Diluted $ 0.16 $ 0.20 $ 0.25 $ 0.12 $ 0.14 $ 0.17 $ 0.16 $ 0.03 Weighted average common shares used in computing net income per share of common stock: Basic 29,484 29,364 29,092 28,768 28,457 28,008 27,617 27,339 Diluted 30,959 31,006 30,807 30,442 30,068 29,661 29,289 29,070 Net income $ 4,822 $ 6,222 $ 7,630 $ 3,584 $ 4,300 $ 5,017 $ 4,724 $ 782 Other comprehensive income, net of taxes Unrealized gain (loss) on investments (319 ) 27 (41 ) 171 (58 ) (75 ) 75 (3 ) Comprehensive income $ 4,503 $ 6,249 $ 7,589 $ 3,755 $ 4,242 $ 4,942 $ 4,799 $ 779 (1) Stock-based compensation included in the above line items: Three months ended Dec 31, Sep 30, Jun 30, Mar 31, Dec 31, Sep 30, Jun 30, Mar 31, (unaudited, in thousands) Cost of revenues $ 1,029 $ 761 $ 813 $ 615 $ 514 $ 441 $ 386 $ 238 Sales and marketing 779 783 673 517 435 247 547 333 Research and development 1,470 1,438 1,376 1,147 1,062 1,038 836 736 General and administrative 3,359 3,538 3,215 2,728 1,997 1,326 2,409 2,003 Total $ 6,637 $ 6,520 $ 6,077 $ 5,007 $ 4,008 $ 3,052 $ 4,178 $ 3,310 |
Basis of Presentation and Sig34
Basis of Presentation and Significant Accounting Policies (Other income (expense), net) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Interest and Dividend Income, Securities, Operating | $ 712,000 | $ 556,000 | |
Interest income | $ 650,000 | ||
Net realized gain (loss) on investments | 0 | 1,000 | (55,000) |
Interest expense | (93,000) | (69,000) | (135,000) |
Total other income, net | $ 619,000 | $ 488,000 | $ 460,000 |
Basis of Presentation and Sig35
Basis of Presentation and Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basis of Presentation and Significant Accounting Policies [Line Items] | ||||||||||||
Capitalized computer software and website development costs, amortization cost | $ 2,400,000 | $ 700,000 | $ 100,000 | |||||||||
Capitalized Computer Software, Additions | 29,400,000 | 15,900,000 | 5,100,000 | |||||||||
Commission expenses deferred | 3,600,000 | 2,500,000 | 1,900,000 | |||||||||
Deferred commission balance | $ 5,300,000 | $ 3,300,000 | 3,300,000 | |||||||||
Advertising expense | 700,000 | 400,000 | 400,000 | |||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | $ 0 | ||||||||||
Revenues | $ 64,867,000 | $ 68,939,000 | $ 65,942,000 | 54,189,000 | $ 46,577,000 | $ 42,798,000 | $ 39,984,000 | 32,178,000 | 253,937,000 | 161,537,000 | 128,481,000 | |
Impairment and loss on sale of property and equipment | $ 97,000 | $ 693,000 | $ 0 | |||||||||
Foreign [Member] | ||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | ||||||||||||
Revenues | $ 0 | $ 0 | $ 0 | |||||||||
Minimum [Member] | ||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | ||||||||||||
Property and equipment, useful life | 3 years | |||||||||||
SaaS contract agreements maturity period | 1 year | |||||||||||
Success basis contract period | 1 year | |||||||||||
Maximum [Member] | ||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | ||||||||||||
Property and equipment, useful life | 7 years | |||||||||||
SaaS contract agreements maturity period | 5 years | |||||||||||
Success basis contract period | 5 years | |||||||||||
Software [Member] | Minimum [Member] | ||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | ||||||||||||
Intangible asset, useful life | 2 years | |||||||||||
Software [Member] | Maximum [Member] | ||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | ||||||||||||
Intangible asset, useful life | 5 years | |||||||||||
Trade name | Minimum [Member] | ||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | ||||||||||||
Intangible asset, useful life | 2 years | |||||||||||
Trade name | Maximum [Member] | ||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | ||||||||||||
Intangible asset, useful life | 3 years | |||||||||||
Customer Lists and Contracts [Member] | Minimum [Member] | ||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | ||||||||||||
Intangible asset, useful life | 4 years | |||||||||||
Customer Lists and Contracts [Member] | Maximum [Member] | ||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | ||||||||||||
Intangible asset, useful life | 9 years | |||||||||||
Internal-use software | Minimum [Member] | ||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | ||||||||||||
Property and equipment, useful life | 3 years | |||||||||||
Internal-use software | Maximum [Member] | ||||||||||||
Basis of Presentation and Significant Accounting Policies [Line Items] | ||||||||||||
Property and equipment, useful life | 5 years |
Basis of Presentation and Sig36
Basis of Presentation and Significant Accounting Policies Cash Flows Adjustments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net income | $ 4,822,000 | $ 6,222,000 | $ 7,630,000 | $ 3,584,000 | $ 4,300,000 | $ 5,017,000 | $ 4,724,000 | $ 782,000 | $ 22,258,000 | $ 14,823,000 | $ 13,318,000 |
Depreciation | 10,842,000 | 5,605,000 | 4,727,000 | ||||||||
Excess tax benefit from exercise of stock options | (11,387,000) | (5,852,000) | (6,955,000) | ||||||||
Deferred income taxes | 2,255,000 | 395,000 | (4,364,000) | ||||||||
Prepaid expenses and other current assets | 1,381,000 | (4,867,000) | 4,219,000 | ||||||||
Accrued, other current and other liabilities | 35,079,000 | 13,436,000 | 3,437,000 | ||||||||
Net cash provided by operating activities | 87,230,000 | 40,598,000 | 28,959,000 | ||||||||
Excess tax benefit from stock-based compensation | 11,387,000 | 5,852,000 | 6,955,000 | ||||||||
Net cash provided by (used in) financing activities | $ (13,241,000) | $ 13,933,000 | $ 12,703,000 |
Net Income Per Share of Commo37
Net Income Per Share of Common Stock (Components of Net Income Per Share) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Components of net income (loss) per share of common stock | |||||||||||
Net income | $ 4,822,000 | $ 6,222,000 | $ 7,630,000 | $ 3,584,000 | $ 4,300,000 | $ 5,017,000 | $ 4,724,000 | $ 782,000 | $ 22,258,000 | $ 14,823,000 | $ 13,318,000 |
Basic shares: | |||||||||||
Weighted average common shares outstanding | 29,483,605 | 29,363,621 | 29,092,149 | 28,768,144 | 28,457,087 | 28,007,770 | 27,617,142 | 27,339,394 | 29,179,352 | 27,858,828 | 26,581,962 |
Diluted shares: | |||||||||||
Weighted average common shares outstanding | 29,483,605 | 29,363,621 | 29,092,149 | 28,768,144 | 28,457,087 | 28,007,770 | 27,617,142 | 27,339,394 | 29,179,352 | 27,858,828 | 26,581,962 |
Effect of potentially dilutive securities: | |||||||||||
Warrants to purchase common stock, employee stock options, RSUs and convertible preferred stock | 1,663,232 | 1,735,045 | 1,920,441 | ||||||||
Weighted average shares used to compute diluted net income per share | 30,959,344 | 31,005,651 | 30,807,418 | 30,442,163 | 30,068,225 | 29,661,211 | 29,288,928 | 29,070,130 | 30,842,584 | 29,593,873 | 28,502,403 |
Net income (loss) per share: | |||||||||||
Basic (USD per share) | $ 0.16 | $ 0.21 | $ 0.26 | $ 0.12 | $ 0.15 | $ 0.18 | $ 0.17 | $ 0.03 | $ 0.76 | $ 0.53 | $ 0.50 |
Diluted (USD per share) | $ 0.16 | $ 0.20 | $ 0.25 | $ 0.12 | $ 0.14 | $ 0.17 | $ 0.16 | $ 0.03 | $ 0.72 | $ 0.50 | $ 0.47 |
Net Income Per Share of Commo38
Net Income Per Share of Common Stock (Anti-Dilutive Shares) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Performance Based Awards [Member] | |||
Antidilutive securities excluded from computation of earning per share | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 0 | 0 | |
Employee stock options and awards [Member] | |||
Antidilutive securities excluded from computation of earning per share | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 225,122 | 624,277 | 758,900 |
Net Income Per Share of Commo39
Net Income Per Share of Common Stock (Details Textual) - shares | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Performance-based awards [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings per share amount | 0 | 0 |
Financial Instruments and Fai40
Financial Instruments and Fair Value Measurements (Fair Value Hierarchy) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | $ 111,236 | $ 111,251 |
Level 1 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 26,217 | 20,166 |
Level 2 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 85,019 | 91,085 |
Level 3 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 0 | 0 |
Money market funds | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 6,788 | 3,220 |
Money market funds | Level 1 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 6,788 | 3,220 |
Money market funds | Level 2 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 0 | 0 |
Money market funds | Level 3 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 0 | 0 |
Corporate notes and obligations | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 28,205 | 29,035 |
Corporate notes and obligations | Level 1 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 0 | 0 |
Corporate notes and obligations | Level 2 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 28,205 | 29,035 |
Corporate notes and obligations | Level 3 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 0 | 0 |
Certificates of deposit | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 12,928 | 14,962 |
Certificates of deposit | Level 1 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 0 | 0 |
Certificates of deposit | Level 2 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 12,928 | 14,962 |
Certificates of deposit | Level 3 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 0 | 0 |
Municipal obligations | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 2,648 | 3,155 |
Municipal obligations | Level 1 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 0 | 0 |
Municipal obligations | Level 2 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 2,648 | 3,155 |
Municipal obligations | Level 3 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 0 | 0 |
U.S. government and government agency obligations | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 60,667 | 60,879 |
U.S. government and government agency obligations | Level 1 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 19,429 | 16,946 |
U.S. government and government agency obligations | Level 2 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | 41,238 | 43,933 |
U.S. government and government agency obligations | Level 3 | ||
Fair value hierarchy of Company's financial assets on recurring basis | ||
Assets, Fair Value | $ 0 | $ 0 |
Financial Instruments and Fai41
Financial Instruments and Fair Value Measurements (Carrying Amounts and Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash and cash equivalents | $ 34,396 | $ 26,756 | $ 33,462 | $ 44,114 |
Carrying or fair value | 48,975 | 49,352 | ||
Fair Value, Measurements, Recurring | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Cash | 27,608 | 23,536 | ||
Money market funds | 6,788 | 3,220 | ||
Cash and cash equivalents | 34,396 | 26,756 | ||
Amortized Cost Basis | 104,705 | 108,126 | ||
Gross Unrealized Gains | 17 | 39 | ||
Gross Unrealized Losses | (274) | (134) | ||
Carrying or fair value | 104,448 | 108,031 | ||
Fair Value, Measurements, Recurring | Corporate notes and obligations | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 28,314 | 29,071 | ||
Gross Unrealized Gains | 1 | 4 | ||
Gross Unrealized Losses | (110) | (40) | ||
Carrying or fair value | 28,205 | 29,035 | ||
Fair Value, Measurements, Recurring | Certificates of deposit | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 12,945 | 14,972 | ||
Gross Unrealized Gains | 5 | 11 | ||
Gross Unrealized Losses | (22) | (21) | ||
Carrying or fair value | 12,928 | 14,962 | ||
Fair Value, Measurements, Recurring | Municipal obligations | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 2,647 | 3,149 | ||
Gross Unrealized Gains | 1 | 6 | ||
Gross Unrealized Losses | 0 | 0 | ||
Carrying or fair value | 2,648 | 3,155 | ||
Fair Value, Measurements, Recurring | U.S. government and government agency obligations | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost Basis | 60,799 | 60,934 | ||
Gross Unrealized Gains | 10 | 18 | ||
Gross Unrealized Losses | (142) | (73) | ||
Carrying or fair value | $ 60,667 | $ 60,879 |
Financial Instruments and Fai42
Financial Instruments and Fair Value Measurements (Continuous Unrealized Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Interest and Dividend Income, Securities, Operating | $ 712 | $ 556 | |
Continuous Unrealized Loss Position [Abstract] | |||
Less than Twelve Months, Fair Value | 81,647 | 60,169 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 260 | 134 | |
Twelve Months or Longer, Fair Value | 4,307 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 14 | 0 | |
Fair Value | 85,954 | 60,169 | |
Unrealized Losses | 274 | 134 | |
Interest income, Other | $ 650 | ||
Corporate notes and obligations | |||
Continuous Unrealized Loss Position [Abstract] | |||
Fair Value | 26,483 | 19,535 | |
Unrealized Losses | 110 | 40 | |
Certificates of deposit | |||
Continuous Unrealized Loss Position [Abstract] | |||
Fair Value | 9,284 | 5,735 | |
Unrealized Losses | 22 | 21 | |
Corporate notes and obligations | |||
Continuous Unrealized Loss Position [Abstract] | |||
Less than Twelve Months, Fair Value | 23,969 | 19,535 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 99 | 40 | |
Twelve Months or Longer, Fair Value | 2,514 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 11 | 0 | |
Certificates of deposit | |||
Continuous Unrealized Loss Position [Abstract] | |||
Less than Twelve Months, Fair Value | 9,284 | 5,735 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 22 | 21 | |
Twelve Months or Longer, Fair Value | 0 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 0 | 0 | |
U.S. government and government agency obligations | |||
Continuous Unrealized Loss Position [Abstract] | |||
Less than Twelve Months, Fair Value | 48,394 | 34,899 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 139 | 73 | |
Twelve Months or Longer, Fair Value | 1,793 | 0 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 3 | 0 | |
Fair Value | 50,187 | 34,899 | |
Unrealized Losses | $ 142 | $ 73 |
Financial Instruments and Fai43
Financial Instruments and Fair Value Measurements (Summary of Investment Maturities) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Maturities of the Company's investments | |
2,015 | $ 48,975 |
2,016 | 30,771 |
2,017 | 24,702 |
Total | $ 104,448 |
Acquisitions (Purchase Price Al
Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Thousands | Oct. 23, 2015 | Oct. 01, 2014 | Jan. 15, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 74,547 | $ 65,338 | $ 51,051 | |||
ALLRegs [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Payments to Acquire Businesses, Gross | $ 28,100 | |||||
Current assets | 127 | |||||
Deposits and other assets | 8 | |||||
Property and equipment | 494 | |||||
Change to goodwill | 12,878 | |||||
Current liabilities | (383) | |||||
Deferred revenue | (2,484) | |||||
Total purchase consideration | 28,138 | |||||
Escrow Deposit | 3,000 | |||||
ALLRegs [Member] | Developed technology | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets: | 3,256 | |||||
ALLRegs [Member] | In-process research and development | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets: | 618 | |||||
ALLRegs [Member] | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets: | 9,585 | |||||
Mortgage Returns, LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Payments to Acquire Businesses, Gross | $ 16,300 | |||||
Current assets | 503 | |||||
Business Combination, Contingent Consideration, Asset, Noncurrent | 17 | |||||
Property and equipment | 423 | |||||
Change to goodwill | $ 9,209 | |||||
Current liabilities | (324) | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities | 244 | |||||
Deferred revenue | (350) | |||||
Total purchase consideration | 16,334 | |||||
Escrow Deposit | 2,400 | |||||
Mortgage Returns, LLC [Member] | Developed technology | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets: | 4,500 | |||||
Mortgage Returns, LLC [Member] | Order or Production Backlog [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets: | 370 | |||||
Mortgage Returns, LLC [Member] | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets: | 2,200 | |||||
ARG Interactive, LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Payments to Acquire Businesses, Gross | $ 4,500 | |||||
Change to goodwill | $ 1,409 | |||||
Total purchase consideration | 5,020 | |||||
ARG Interactive, LLC [Member] | Developed technology | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets: | 2,927 | |||||
ARG Interactive, LLC [Member] | Customer relationships | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets: | 643 | |||||
ARG Interactive, LLC [Member] | Trade name | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets: | $ 41 | |||||
Trade name | ALLRegs [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 4,039 | |||||
Trade name | Mortgage Returns, LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | $ 30 |
Acquisitions (Details Textual)
Acquisitions (Details Textual) - USD ($) $ in Thousands | Oct. 01, 2014 | Jan. 15, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||||||||||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 562 | $ 1,968 | $ 0 | ||||||||||
Goodwill | $ 74,547 | $ 65,338 | 74,547 | 65,338 | 51,051 | ||||||||
Revenues | $ 64,867 | $ 68,939 | $ 65,942 | $ 54,189 | $ 46,577 | $ 42,798 | $ 39,984 | $ 32,178 | $ 253,937 | 161,537 | $ 128,481 | ||
Developed technology | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Impairment of Intangible Assets (Excluding Goodwill) | 1,700 | ||||||||||||
Customer relationships | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 300 | ||||||||||||
ARG Interactive, LLC [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Payments to Acquire Businesses, Gross | $ 4,500 | ||||||||||||
Total purchase consideration | 5,000 | ||||||||||||
Cost of acquired entity, holdback amount | $ 500 | ||||||||||||
ARG Interactive, LLC [Member] | Customer lists and contracts [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquired intangible assets, useful life | 5 years | ||||||||||||
ARG Interactive, LLC [Member] | Developed technology | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquired intangible assets, useful life | 5 years | ||||||||||||
ARG Interactive, LLC [Member] | Trade name | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquired intangible assets, useful life | 2 years | ||||||||||||
ALLRegs [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Payments to Acquire Businesses, Gross | $ 28,100 | ||||||||||||
Escrow Deposit | $ 3,000 | ||||||||||||
Revenues | $ 174,483 | $ 138,751 | |||||||||||
ALLRegs [Member] | Developed technology | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquired intangible assets, useful life | 2 years | ||||||||||||
ALLRegs [Member] | In-process research and development | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquired intangible assets, useful life | 3 years | ||||||||||||
ALLRegs [Member] | Customer relationships | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquired intangible assets, useful life | 6 years |
Acquisitions (Pro Forma Informa
Acquisitions (Pro Forma Information) (Details) - ALLRegs [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Business Acquisition [Line Items] | ||
Revenues | $ 174,483 | $ 138,751 |
Net income | $ 15,982 | $ 9,256 |
Basic | $ 0.57 | $ 0.35 |
Diluted | $ 0.54 | $ 0.32 |
Balance Sheet Components (Prepa
Balance Sheet Components (Prepaid Expenses and Other) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Prepaid Expense and Other Assets [Abstract] | ||
Prepaid expenses | $ 8,518 | $ 5,667 |
Income tax receivable | 509 | 1,892 |
Deferred tax assets, net | 0 | 5,132 |
Other receivables | 847 | 3,330 |
Prepaid expenses and other | $ 9,874 | $ 16,021 |
Balance Sheet Components (Prope
Balance Sheet Components (Property and Equipment) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Capitalized Computer Software, Net | $ 47,000,000 | $ 19,900,000 | |
Capitalized Computer Software, Amortization | 2,400,000 | 700,000 | $ 100,000 |
Property and equipment, gross | 75,625,000 | 28,232,000 | |
Accumulated depreciation and amortization | (28,552,000) | (17,838,000) | |
Depreciable Property, Plant Equipment | 47,073,000 | 10,394,000 | |
Property and equipment, net | 81,360,000 | 28,694,000 | |
Finite-Lived Intangible Assets, Net | 34,287,000 | 18,300,000 | |
Depreciation | 10,842,000 | 5,605,000 | 4,727,000 |
Capital Leases, Income Statement, Amortization Expense | 2,500,000 | 700,000 | 500,000 |
Impairment and loss on sale of property and equipment | 97,000 | 693,000 | $ 0 |
Computer equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 55,928,000 | 24,014,000 | |
Property and equipment under capital leases | 8,700,000 | 2,000,000 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 5,292,000 | 1,929,000 | |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment under capital leases | 1,500,000 | 500,000 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 14,405,000 | 2,289,000 | |
Computer equipment and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation related to capital leased assets | $ (3,371,000) | $ (900,000) |
Balance Sheet Components (Other
Balance Sheet Components (Other Intangibles) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | $ 562 | $ 1,968 | $ 0 |
Gross Carrying Amount | 31,636 | 24,536 | |
Accumulated Amortization | (12,865) | (7,123) | |
Finite-Lived Intangible Assets, Net | 18,771 | 17,413 | |
Other intangible assets, net | $ 22,810 | $ 21,452 | |
Weighted average remaining useful life | 50 months 29 days | 54 months 24 days | |
Intangible Assets, Gross (Excluding Goodwill) | $ 35,675 | $ 28,575 | |
Amortization of intangible assets | 5,180 | 2,779 | $ 1,442 |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | 300 | ||
Developed technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets (Excluding Goodwill) | 1,700 | ||
Gross Carrying Amount | 11,535 | 7,035 | |
Accumulated Amortization | (5,668) | (2,759) | |
Other intangible assets, net | $ 5,867 | $ 4,276 | |
Weighted average remaining useful life | 36 months 24 days | 27 months 14 days | |
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 331 | $ 301 | |
Accumulated Amortization | (307) | (279) | |
Other intangible assets, net | $ 24 | $ 22 | |
Weighted average remaining useful life | 10 months | 13 months | |
Customer Relationships and Contracts [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 19,400 | $ 17,200 | |
Accumulated Amortization | (6,875) | (4,085) | |
Other intangible assets, net | $ 12,525 | $ 13,115 | |
Weighted average remaining useful life | 57 months 26 days | 63 months 24 days | |
Order or Production Backlog [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 370 | ||
Accumulated Amortization | (15) | ||
Other intangible assets, net | $ 355 | ||
Weighted average remaining useful life | 46 months | ||
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | $ 4,039 | $ 4,039 |
Balance Sheet Components (Futur
Balance Sheet Components (Future Amortization Expense for Other Intangibles) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 5,521 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 4,294 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 1,778 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 3,443 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 3,166 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $ 569 |
Balance Sheet Components (Chang
Balance Sheet Components (Changes in Carrying Value of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Line Items] | |||
Goodwill | $ 74,547 | $ 65,338 | $ 51,051 |
Mortgage Returns, LLC [Member] | |||
Goodwill [Roll Forward] | |||
Change to goodwill | $ 9,209 | ||
ALLRegs [Member] | |||
Goodwill [Roll Forward] | |||
Change to goodwill | $ 12,878 |
Balance Sheet Components (Accru
Balance Sheet Components (Accrued and Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued and Other Current Liabilities: | ||
Accrued payroll and related expenses | $ 23,938 | $ 11,071 |
Accrued commissions | 1,993 | 917 |
Accrued professional fees | 223 | 362 |
Accrued royalties | 1,546 | 919 |
Sales and other taxes | 1,536 | 357 |
Capital Lease Obligations, Current | 3,845 | 422 |
Other accrued expenses | 4,226 | 2,774 |
Accrued and other current liabilities | $ 37,307 | $ 16,822 |
Balance Sheet Components (Defer
Balance Sheet Components (Deferred Revenue) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 16,104 | $ 9,905 |
Less portion included in long-term other liabilities | (240) | (176) |
Deferred revenue, current | 15,864 | 9,729 |
Software maintenance [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 386 | 1,310 |
Professional services and training [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 6,430 | 3,566 |
Subscriptions [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | 9,225 | 4,816 |
Other [Member] | ||
Deferred Revenue Arrangement [Line Items] | ||
Deferred revenue | $ 63 | $ 213 |
Balance Sheet Components Other
Balance Sheet Components Other long-term liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Deferred revenue | $ 240 | $ 176 |
Deferred rent | 8,256 | 317 |
Deferred tax liability | 1,777 | 2,501 |
Other Liabilities, Noncurrent | $ 10,273 | $ 2,994 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ||||
Excess tax benefit from exercise of stock options | $ 11,387 | $ 5,852 | $ 6,955 | |
Deferred tax assets, net | 0 | 5,132 | ||
Net long-term deferred tax assets | 2,200 | 600 | 1,300 | |
Decrease in valuation allowance | (1,000) | (800) | (300) | |
Unrecognized tax benefits | 3,440 | $ 2,408 | $ 1,806 | $ 1,262 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 1,800 | |||
Unrecognized tax benefits netted against deferred tax assets subject to full valuation allowance | $ 1,600 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||
Current federal tax expense (benefit) | $ 8,070 | $ 5,761 | $ 9,664 | ||||||||
Current state and local tax expense (benefit) | 1,894 | 630 | 814 | ||||||||
Current income tax expense (benefit) | 9,964 | 6,391 | 10,478 | ||||||||
Deferred federal income tax expense (benefit) | 1,899 | 336 | (4,236) | ||||||||
Deferred state and local income tax expense (benefit) | 356 | 59 | (128) | ||||||||
Deferred income tax expense (benefit) | 2,255 | 395 | (4,364) | ||||||||
Income tax provision (benefit) | $ 271 | $ 3,552 | $ 5,368 | $ 3,028 | $ (192) | $ 3,989 | $ 2,714 | $ 275 | $ 12,219 | $ 6,786 | $ 6,114 |
Income Taxes (Effective Income
Income Taxes (Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | 35.00% | 35.00% | 35.00% |
Other non-deductible items | 1.00% | 0.00% | 0.00% |
State taxes, net of federal benefit | 5.00% | 3.00% | 3.00% |
Effective Income Tax Rate Reconciliation, Deduction, Qualified Production Activity, Percent | (0.00%) | (0.00%) | (2.00%) |
Valuation allowance | 0.00% | 0.00% | 0.00% |
Stock-based compensation | 1.00% | 1.00% | 1.00% |
Effective Income Tax Rate Reconciliation, Prior Year Income Taxes, Percent | 0.00% | 0.00% | (2.00%) |
Tax credits | (7.00%) | (8.00%) | (4.00%) |
Income tax provision (benefit) | 35.00% | 31.00% | 31.00% |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets | ||
Research and development credits | $ 3,901 | $ 2,897 |
Stock-based compensation | 10,309 | 6,802 |
Reserves and accruals | 8,779 | 3,613 |
Net operating loss carryforwards | 0 | 366 |
Gross deferred tax assets | 22,989 | 13,678 |
Valuation allowance | (3,901) | (2,897) |
Net deferred tax assets | 19,088 | 10,781 |
Deferred tax liabilities | ||
Depreciation and amortization | (16,171) | (6,026) |
Book/tax basis in acquired assets | (697) | (271) |
Total deferred tax liabilities | (16,868) | (6,297) |
Net deferred tax assets (liabilities) | $ 2,220 | $ 4,484 |
Income Taxes (Operating Loss Ca
Income Taxes (Operating Loss Carryforwards) (Details) $ in Millions | Dec. 31, 2015USD ($) |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Operating loss carryforwards | $ 3.3 |
Income Taxes (Tax Credit Carryf
Income Taxes (Tax Credit Carryforwards) (Details) $ in Millions | Dec. 31, 2015USD ($) |
Federal [Member] | Research and Development Tax Credit Carryforward [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforward | $ 5.9 |
State [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforward | 0.9 |
State [Member] | Research and Development Tax Credit Carryforward [Member] | |
Tax Credit Carryforward [Line Items] | |
Tax credit carryforward | $ 6.9 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits, beginning balance | $ 2,408 | $ 1,806 | $ 1,262 |
(Deductions) additions based on tax positions related to the current year | 1,023 | 594 | 402 |
Additions based on tax positions related to prior years including acquisitions | 9 | 8 | 142 |
Unrecognized tax benefits, ending balance | $ 3,440 | $ 2,408 | $ 1,806 |
Commitments and Contingencies62
Commitments and Contingencies (Details Textual) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 31, 2015USD ($) | Dec. 31, 2015USD ($)Facilities | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jan. 15, 2014USD ($) | |
Commitments and Contingencies (Textual) [Abstract] | |||||
Facilities under operating lease arrangements | Facilities | 8 | ||||
Rent expense | $ 4,200 | $ 2,100 | $ 1,600 | ||
Total purchase commitments | 13,600 | ||||
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months | 10,100 | ||||
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 2,600 | ||||
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 900 | ||||
Capital Leases, Future Minimum Payments Due | 4,605 | ||||
Acquisition Holdback, Net of Discounts, Current | 0 | 522 | |||
Proceeds from Legal Settlements | $ (522) | $ 0 | $ 0 | ||
ARG Interactive, LLC [Member] | |||||
Commitments and Contingencies (Textual) [Abstract] | |||||
Cost of acquired entity, holdback amount | $ 500 | ||||
Computer equipment [Member] | |||||
Commitments and Contingencies (Textual) [Abstract] | |||||
Capital Leases, Future Minimum Payments Due | $ 300 | ||||
Capital Lease Term in Months | 24 months |
Commitments and Contingencies63
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||
Unrecorded Unconditional Purchase Obligation, Due in Next Twelve Months | $ 10,100 | |
Unrecorded Unconditional Purchase Obligation, Due within Two Years | 2,600 | |
Unrecorded Unconditional Purchase Obligation, Due within Three Years | 900 | |
Capital Leases | ||
2,015 | 3,899 | |
2,016 | 619 | |
2,017 | 87 | |
2,018 | 0 | |
2,019 | 0 | |
Total minimum lease payments | 4,605 | |
Less amount representing interest | (75) | |
Present value of minimum lease payments | 4,530 | |
Less current portion | (3,845) | $ (422) |
Long-term portion of lease obligations | 685 | $ 443 |
Operating Leases | ||
2,015 | 4,639 | |
2,016 | 4,934 | |
2,017 | 4,896 | |
2,018 | 4,844 | |
2,019 | 4,834 | |
Total minimum lease payments | 44,554 | |
Capital Leases, Future Minimum Payments Due Thereafter | 0 | |
Operating Leases, Future Minimum Payments, Due Thereafter | $ 20,407 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Apr. 20, 2011 | |
Class of Stock [Line Items] | |||
Stock Repurchased During Period, Shares | 503,450 | ||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 140,000,000 | 140,000,000 | 140,000,000 |
Preferred stock, shares authorized | 10,000,000 | ||
Preferred stock, par value | $ 0.0001 | ||
Shares of common stock reserved and available for future issuance | 7,864,174 | ||
Stock Repurchased During Period, Value | $ 31,530 | $ 75,000 | |
Options and Awards Outstanding [Member] | |||
Class of Stock [Line Items] | |||
Shares of common stock reserved and available for future issuance | 3,772,299 | ||
Shares Available for Future Grant [Member] | |||
Class of Stock [Line Items] | |||
Shares of common stock reserved and available for future issuance | 2,886,881 | ||
Shares Available Under Employee Stock Purchase Plan [Member] | |||
Class of Stock [Line Items] | |||
Shares of common stock reserved and available for future issuance | 1,204,994 | ||
Share Repurchase Program [Domain] | |||
Class of Stock [Line Items] | |||
Stock Repurchased During Period, Value | $ 31,530 |
Stock Incentive Plans (Summary
Stock Incentive Plans (Summary of Company's Stock Option Activities) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at beginning of the period, Share | 3,050,301 | 3,284,672 | 3,461,255 |
Options granted, Shares | 904,602 | 841,371 | |
Options exercised, Shares | (822,133) | (1,048,053) | (854,566) |
Options forfeited or expired, Shares | (98,615) | (90,920) | (163,388) |
Outstanding at end of the period, Shares | 2,515,329 | 3,050,301 | 3,284,672 |
Ending vested and expected to vest, Number of Shares at End of Period | 2,443,198 | ||
Stock options exercisable at End of Period, Shares | 1,474,236 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding at beginning of the period, weighted average exercise price | $ 17.41 | $ 11.17 | $ 7.19 |
Options granted, weighted average exercise price | 55.30 | 28.76 | 23.39 |
Options exercised, weighted average exercise price | 12.28 | 7.19 | 5.39 |
Options forfeited or expired, weighted average exercise price | 30.12 | 22.46 | 20.10 |
Outstanding at end of the period, weighted average exercise price | 24.40 | 17.41 | $ 11.17 |
Ending vested and expected to vest at December 31, 2012, Weighted Average Exercise Price | 23.96 | ||
Stock option exercisable at June 30, 2012, weighted average exercise price, Ending Balance | $ 15.80 | ||
Weighted average remaining contractual term at December 31, 2012 | 7 years 51 days | ||
Ending vested and expected to vest, Weighted Average Remaining Contractual Term at December 31, 2012 | 7 years 36 days | ||
Stock option exercisable, weighted average remaining Contractual term, Ending balance | 6 years 84 days | ||
Aggregate Intrinsic value at December 31, 2012 | $ 90,818 | ||
Ending vested and expected to vest, Aggregate Intrinsic Value at December 31, 2012 | 89,268 | ||
Exercisable aggregate Intrinsic Value | $ 65,601 | ||
2011 Equity Incentive Award Plan [Member] | Consultant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Grant Date Fair Value Granted | $ 59.81 | $ 25.30 | |
Maximum [Member] | 2011 Equity Incentive Award Plan [Member] | Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common shares reserved for issuance | 23,333,333 |
Stock Incentive Plans (Addition
Stock Incentive Plans (Additional Information Pertaining to Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock options activity, additional information | |||
Weighted average grant-date fair value per option granted | $ 26.13 | $ 14.43 | $ 11.54 |
Grant-date fair value of options vested | $ 8,285 | $ 6,126 | $ 3,775 |
Intrinsic value of options exercised | 38,971 | 26,277 | 18,024 |
Proceeds received from options exercised | $ 10,094 | $ 7,537 | $ 4,623 |
Stock Incentive Plans (RSU and
Stock Incentive Plans (RSU and Performance Award Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Feb. 27, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | Feb. 28, 2014 | Feb. 28, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary of RSU activities | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | 4 years | ||||||
Employee Stock Option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 71,648 | 76,648 | 385,776 | |||||
Summary of RSU activities | ||||||||
Ending vested and expected to vest at December 31, 2012 | 2,443,198 | |||||||
Performance-vestingRSUs [Member] | ||||||||
Summary of RSU activities | ||||||||
Performance Shares granted | 34,714 | 37,203 | ||||||
RSUs [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 4.7 | $ 1.9 | ||||||
Summary of RSU activities | ||||||||
Outstanding at December 31, 2011 | 585,858 | 585,858 | 257,378 | 40,625 | ||||
Granted | 401,158 | 525,063 | 301,767 | |||||
Released | (179,530) | (84,682) | (20,000) | |||||
Forfeited or expired | (58,798) | (111,901) | (65,014) | |||||
Outstanding at December 31, 2012 | 585,858 | 748,688 | 585,858 | 257,378 | ||||
Ending vested and expected to vest at December 31, 2012 | 661,523 | |||||||
Weighted Average Grant Date Fair Value Outstanding at December 31, 2011 | $ 27.20 | $ 27.20 | $ 23.10 | $ 8.90 | ||||
Weighted Average Grant Date Fair Value Granted | 62.62 | 28.85 | 24.78 | |||||
Weighted Average Grant Date Fair Value Released | 25.97 | 22.56 | 14.71 | |||||
Weighted Average Grant Date Fair Value Forfeited | 39.40 | 29.02 | 24.62 | |||||
Weighted Average Grant Date Fair Value Outstanding at December 31, 2012 | $ 27.20 | $ 45.52 | $ 27.20 | $ 23.10 | ||||
Performance Shares [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 4.5 | $ 4.4 | ||||||
Summary of RSU activities | ||||||||
Outstanding at December 31, 2011 | 485,177 | 485,177 | 565,300 | 588,000 | ||||
Granted | 205,816 | 155,953 | 124,300 | |||||
Released | (182,711) | (178,076) | (147,000) | |||||
Forfeited or expired | 0 | (58,000) | 0 | |||||
Outstanding at December 31, 2012 | 485,177 | 508,282 | 485,177 | 565,300 | ||||
Ending vested and expected to vest at December 31, 2012 | 508,282 | |||||||
Weighted Average Grant Date Fair Value Outstanding at December 31, 2011 | $ 25.61 | $ 25.61 | $ 24.43 | $ 25.79 | ||||
Weighted Average Grant Date Fair Value Granted | 47.18 | 24.93 | 19.60 | |||||
Weighted Average Grant Date Fair Value Released | 24.69 | 24.71 | 25.79 | |||||
Weighted Average Grant Date Fair Value Forfeited | 0 | 24.91 | 0 | |||||
Weighted Average Grant Date Fair Value Outstanding at December 31, 2012 | $ 25.61 | $ 34.68 | $ 25.61 | $ 24.43 | ||||
Performance Shares granted | 24,766 | 62,500 | 113,000 | |||||
Upon Issuance [Domain] | Performance-vestingRSUs [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% |
Stock Incentive Plans (Stock-Ba
Stock Incentive Plans (Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-based compensation expense | |||||||||||
Stock-based compensation by category of expense | $ 6,637 | $ 6,520 | $ 6,077 | $ 5,007 | $ 4,008 | $ 3,052 | $ 4,178 | $ 3,310 | $ 24,241 | $ 14,548 | $ 14,259 |
Cost of revenues [Member] | |||||||||||
Stock-based compensation expense | |||||||||||
Stock-based compensation by category of expense | 1,029 | 761 | 813 | 615 | 514 | 441 | 386 | 238 | 3,218 | 1,579 | 745 |
Sales and marketing [Member] | |||||||||||
Stock-based compensation expense | |||||||||||
Stock-based compensation by category of expense | 779 | 783 | 673 | 517 | 435 | 247 | 547 | 333 | 2,752 | 1,562 | 1,041 |
Research and development [Member] | |||||||||||
Stock-based compensation expense | |||||||||||
Stock-based compensation by category of expense | 1,470 | 1,438 | 1,376 | 1,147 | 1,062 | 1,038 | 836 | 736 | 5,431 | 3,672 | 3,469 |
General and administrative [Member] | |||||||||||
Stock-based compensation expense | |||||||||||
Stock-based compensation by category of expense | $ 3,359 | $ 3,538 | $ 3,215 | $ 2,728 | $ 1,997 | $ 1,326 | $ 2,409 | $ 2,003 | $ 12,840 | $ 7,735 | $ 9,004 |
Stock Incentive Plans (Valuatio
Stock Incentive Plans (Valuation Assumptions) (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Employee Stock Option [Member] | Minimum [Member] | ||||
Schedule of Stock Options and Employee Stock Purchase Plan Valuation Assumptions | ||||
Risk-free interest rate | 1.50% | 1.55% | 0.95% | |
Expected Life of options (in years) | 5 years | 5 years 3 months 7 days | 5 years 3 months 7 days | |
Volatility | 48.00% | 49.00% | 52.00% | |
Employee Stock Option [Member] | Maximum [Member] | ||||
Schedule of Stock Options and Employee Stock Purchase Plan Valuation Assumptions | ||||
Risk-free interest rate | 1.96% | 2.00% | 1.90% | |
Expected Life of options (in years) | 6 years 29 days | 6 years 29 days | 6 years 29 days | |
Volatility | 49.00% | 53.00% | 59.00% | |
Employee Stock Purchase Plan [Member] | ||||
Schedule of Stock Options and Employee Stock Purchase Plan Valuation Assumptions | ||||
Expected Life of options (in years) | 182 days | 6 months | 6 months | |
Expected dividend yield | 0.00% | 0.00% | 0.00% | |
Employee Stock Purchase Plan [Member] | Minimum [Member] | ||||
Schedule of Stock Options and Employee Stock Purchase Plan Valuation Assumptions | ||||
Risk-free interest rate | 0.13% | 0.05% | 0.05% | |
Volatility | 35.00% | 38.00% | 36.00% | |
Employee Stock Purchase Plan [Member] | Maximum [Member] | ||||
Schedule of Stock Options and Employee Stock Purchase Plan Valuation Assumptions | ||||
Risk-free interest rate | 0.24% | 0.08% | 0.13% | |
Volatility | 44.00% | 39.00% | 37.00% |
Stock Incentive Plans (Details
Stock Incentive Plans (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||
Feb. 27, 2015 | Jan. 31, 2015 | Dec. 31, 2014 | Feb. 28, 2014 | Feb. 28, 2013 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Stock-based compensation expense | $ (6,637,000) | $ (6,520,000) | $ (6,077,000) | $ (5,007,000) | $ (4,008,000) | $ (3,052,000) | $ (4,178,000) | $ (3,310,000) | $ (24,241,000) | $ (14,548,000) | $ (14,259,000) | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | 4 years | ||||||||||||||||
Maximum expected term of options (in years) | 10 years | |||||||||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | $ 1,126,000 | 534,000 | 131,000 | |||||||||||||||
Purchase price of ESPP shares | $ 4,105,000 | $ 2,624,000 | 1,922,000 | |||||||||||||||
2011 Equity Incentive Award Plan [Member] | Consultant [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Weighted Average Grant Date Fair Value Granted | $ 59.81 | $ 25.30 | ||||||||||||||||
Grants, other than options | 1,184 | 5,931 | ||||||||||||||||
Stock-based compensation expense | $ (200,000) | $ (200,000) | $ (200,000) | |||||||||||||||
2009 Plan [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Options outstanding | 987,424 | 987,424 | ||||||||||||||||
Employee Stock [Member] | Employee Stock Purchase Plan [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Annual automatic increase in common shares reserved for issuance, shares | 1,666,666 | 1,666,666 | ||||||||||||||||
Annual automatic increase in common shares reserved for issuance, as a percent of common stock outstanding | 1.00% | 1.00% | ||||||||||||||||
Ineligibility threshold, percentage of value or voting power | 5.00% | 5.00% | ||||||||||||||||
Ineligibility threshold, rights to purchase common stock accrue at an annual rate not to exceed | $ 25,000 | $ 25,000 | ||||||||||||||||
Weighted Average Grant Date Fair Value Granted | $ 37.12 | $ 7.71 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | |||||||||||||||||
Number of shares purchased under ESPP | 110,598 | 102,111 | ||||||||||||||||
Purchase price of ESPP shares | $ 4,100,000 | $ 2,600,000 | ||||||||||||||||
Unrecognized compensation cost related to employee stock purchase plan | $ 300,000 | $ 300,000 | ||||||||||||||||
Expected recognized period under employee stock purchase plan | 2 months | |||||||||||||||||
Employee Stock [Member] | Employee Stock Purchase Plan [Member] | Minimum [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Common shares reserved for issuance | 666,666 | 666,666 | ||||||||||||||||
Stock Option Plans [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 71,648 | 76,648 | 385,776 | |||||||||||||||
Stock options exercised | 822,133 | 1,048,053 | 854,566 | |||||||||||||||
Options outstanding | 3,050,301 | 2,515,329 | 3,050,301 | 2,515,329 | 3,050,301 | 3,284,672 | 3,461,255 | |||||||||||
Company's closing stock price | $ 60.23 | $ 60.23 | ||||||||||||||||
Unrecognized Compensation Cost Related to unvested Stock option | $ 15,300,000 | $ 15,300,000 | ||||||||||||||||
Expected to be recognized over a weighted average period | 2 years 142 days | |||||||||||||||||
Stock Option Plans [Member] | First Anniversary [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||
Stock Option Plans [Member] | 2011 Equity Incentive Award Plan [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Annual automatic increase in common shares reserved for issuance, shares | 1,666,666 | 1,666,666 | ||||||||||||||||
Annual automatic increase in common shares reserved for issuance, as a percent of common stock outstanding | 5.00% | 5.00% | ||||||||||||||||
Stock Option Plans [Member] | 2011 Equity Incentive Award Plan [Member] | Minimum [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Common shares reserved for issuance | 2,666,666 | 2,666,666 | ||||||||||||||||
Stock Option Plans [Member] | 2011 Equity Incentive Award Plan [Member] | Maximum [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Common shares reserved for issuance | 23,333,333 | 23,333,333 | ||||||||||||||||
Performance-vestingRSUs [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Performance Shares granted | 34,714 | 37,203 | ||||||||||||||||
Performance-vestingRSUs [Member] | Upon Issuance [Domain] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||
Performance-vestingRSUs [Member] | 2011 Equity Incentive Award Plan [Member] | Maximum [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Shares of common stock issuable per award | 2 | |||||||||||||||||
RSUs [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 11,100,000 | $ 2,600,000 | ||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Weighted Average Grant Date Fair Value Granted | $ 62.62 | $ 28.85 | $ 24.78 | |||||||||||||||
Grants, other than options | 401,158 | 525,063 | 301,767 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 4,700,000 | $ 1,900,000 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 58,798 | 111,901 | 65,014 | |||||||||||||||
Performance Shares [Member] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 13,200,000 | $ 5,900,000 | ||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Weighted Average Grant Date Fair Value Granted | $ 47.18 | $ 24.93 | $ 19.60 | |||||||||||||||
Grants, other than options | 205,816 | 155,953 | 124,300 | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 4,500,000 | $ 4,400,000 | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | 58,000 | 0 | |||||||||||||||
Performance Shares granted | 24,766 | 62,500 | 113,000 | |||||||||||||||
Performance Shares [Member] | First Anniversary [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||||||||
Performance Shares [Member] | Second Anniversary [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | 25.00% | ||||||||||||||||
Performance Shares [Member] | Third Anniversary [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | 25.00% | ||||||||||||||||
Performance Shares [Member] | December 31, 2016 [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | 25.00% | ||||||||||||||||
Performance Shares [Member] | December 31, 2017 [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | 25.00% | ||||||||||||||||
Performance Shares [Member] | December 31, 2018 [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | 25.00% | ||||||||||||||||
Performance Shares [Member] | 2011 Equity Incentive Award Plan [Member] | Minimum [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Shares of common stock issuable per award | 0 | |||||||||||||||||
Performance Shares [Member] | 2011 Equity Incentive Award Plan [Member] | Maximum [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Shares of common stock issuable per award | 2 | |||||||||||||||||
Restricted Stock Units and Performance Awards [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Unrecognized Compensation Cost Related to unvested Stock option | $ 32,200,000 | $ 32,200,000 | ||||||||||||||||
Expected to be recognized over a weighted average period | 2 years 153 days | |||||||||||||||||
December 2001 Option Repricing [Member] | ||||||||||||||||||
Stock Incentive Plans (Textual) [Abstract] | ||||||||||||||||||
Stock-based compensation expense | $ 0 |
Employee Benefit Plan (Details)
Employee Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Employee benefit plan, employer contribution percentage of employee contribution | 50.00% | 50.00% | 50.00% |
Employee benefit plan, maximum annual contribution per employee, percent of employees compensation | 3.00% | 3.00% | 3.00% |
Employee benefit plan, employer contribution amount | $ 2 | $ 1.3 | $ 0.9 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2015USD ($)industry | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of operating industries | industry | 1 | ||||||||||
Segment Reporting Information Revenue | |||||||||||
Revenues | $ 64,867 | $ 68,939 | $ 65,942 | $ 54,189 | $ 46,577 | $ 42,798 | $ 39,984 | $ 32,178 | $ 253,937 | $ 161,537 | $ 128,481 |
On-demand revenues | |||||||||||
Segment Reporting Information Revenue | |||||||||||
Revenues | 249,571 | 154,315 | 118,555 | ||||||||
On-premise revenues | |||||||||||
Segment Reporting Information Revenue | |||||||||||
Revenues | $ 4,366 | $ 7,222 | $ 9,926 |
Quarterly Results of Operatio73
Quarterly Results of Operations Data (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 64,867,000 | $ 68,939,000 | $ 65,942,000 | $ 54,189,000 | $ 46,577,000 | $ 42,798,000 | $ 39,984,000 | $ 32,178,000 | $ 253,937,000 | $ 161,537,000 | $ 128,481,000 |
Cost of revenues | 23,555,000 | 22,441,000 | 20,862,000 | 17,350,000 | 14,720,000 | 11,669,000 | 10,576,000 | 9,318,000 | 84,208,000 | 46,283,000 | 32,630,000 |
Gross profit | 41,312,000 | 46,498,000 | 45,080,000 | 36,839,000 | 31,857,000 | 31,129,000 | 29,408,000 | 22,860,000 | 169,729,000 | 115,254,000 | 95,851,000 |
Sales and marketing | 10,562,000 | 9,082,000 | 8,804,000 | 9,760,000 | 7,753,000 | 6,245,000 | 6,451,000 | 6,095,000 | 38,208,000 | 26,544,000 | 21,331,000 |
Research and development | 11,734,000 | 11,138,000 | 9,282,000 | 8,297,000 | 8,880,000 | 6,456,000 | 6,077,000 | 6,815,000 | 40,451,000 | 28,228,000 | 24,695,000 |
General and administrative | 14,103,000 | 16,658,000 | 14,149,000 | 12,302,000 | 11,261,000 | 9,556,000 | 9,551,000 | 8,993,000 | 57,212,000 | 39,361,000 | 30,853,000 |
Total operating expenses | 36,399,000 | 36,878,000 | 32,235,000 | 30,359,000 | 27,894,000 | 22,257,000 | 22,079,000 | 21,903,000 | 135,871,000 | 94,133,000 | 76,879,000 |
Income from operations | 4,913,000 | 9,620,000 | 12,845,000 | 6,480,000 | 3,963,000 | 8,872,000 | 7,329,000 | 957,000 | 33,858,000 | 21,121,000 | 18,972,000 |
Operating income (loss), net | 180,000 | 154,000 | 153,000 | 132,000 | 145,000 | 134,000 | 109,000 | 100,000 | 619,000 | 488,000 | 460,000 |
Income before income taxes | 5,093,000 | 9,774,000 | 12,998,000 | 6,612,000 | 4,108,000 | 9,006,000 | 7,438,000 | 1,057,000 | 34,477,000 | 21,609,000 | 19,432,000 |
Income tax (benefit) provision | 271,000 | 3,552,000 | 5,368,000 | 3,028,000 | (192,000) | 3,989,000 | 2,714,000 | 275,000 | 12,219,000 | 6,786,000 | 6,114,000 |
Net income | $ 4,822,000 | $ 6,222,000 | $ 7,630,000 | $ 3,584,000 | $ 4,300,000 | $ 5,017,000 | $ 4,724,000 | $ 782,000 | $ 22,258,000 | $ 14,823,000 | $ 13,318,000 |
Earnings Per Share [Abstract] | |||||||||||
Basic (USD per share) | $ 0.16 | $ 0.21 | $ 0.26 | $ 0.12 | $ 0.15 | $ 0.18 | $ 0.17 | $ 0.03 | $ 0.76 | $ 0.53 | $ 0.50 |
Diluted (USD per share) | $ 0.16 | $ 0.20 | $ 0.25 | $ 0.12 | $ 0.14 | $ 0.17 | $ 0.16 | $ 0.03 | $ 0.72 | $ 0.50 | $ 0.47 |
Weighted average common shares outstanding | 29,483,605 | 29,363,621 | 29,092,149 | 28,768,144 | 28,457,087 | 28,007,770 | 27,617,142 | 27,339,394 | 29,179,352 | 27,858,828 | 26,581,962 |
Weighted average common shares outstanding, diluted | 30,959,344 | 31,005,651 | 30,807,418 | 30,442,163 | 30,068,225 | 29,661,211 | 29,288,928 | 29,070,130 | 30,842,584 | 29,593,873 | 28,502,403 |
Unrealized losses on investments | $ (319,000) | $ 27,000 | $ (41,000) | $ 171,000 | $ (58,000) | $ (75,000) | $ 75,000 | $ (3,000) | $ (162,000) | $ (61,000) | $ 31,000 |
Comprehensive income (loss) | 4,503,000 | 6,249,000 | 7,589,000 | 3,755,000 | 4,242,000 | 4,942,000 | 4,799,000 | 779,000 | 22,096,000 | 14,762,000 | 13,349,000 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Stock-based compensation expense | 6,637,000 | 6,520,000 | 6,077,000 | 5,007,000 | 4,008,000 | 3,052,000 | 4,178,000 | 3,310,000 | 24,241,000 | 14,548,000 | 14,259,000 |
Cost of revenues [Member] | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Stock-based compensation expense | 1,029,000 | 761,000 | 813,000 | 615,000 | 514,000 | 441,000 | 386,000 | 238,000 | 3,218,000 | 1,579,000 | 745,000 |
Sales and marketing [Member] | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Stock-based compensation expense | 779,000 | 783,000 | 673,000 | 517,000 | 435,000 | 247,000 | 547,000 | 333,000 | 2,752,000 | 1,562,000 | 1,041,000 |
Research and development [Member] | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Stock-based compensation expense | 1,470,000 | 1,438,000 | 1,376,000 | 1,147,000 | 1,062,000 | 1,038,000 | 836,000 | 736,000 | 5,431,000 | 3,672,000 | 3,469,000 |
General and administrative [Member] | |||||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||||
Stock-based compensation expense | $ 3,359,000 | $ 3,538,000 | $ 3,215,000 | $ 2,728,000 | $ 1,997,000 | $ 1,326,000 | $ 2,409,000 | $ 2,003,000 | $ 12,840,000 | $ 7,735,000 | $ 9,004,000 |
SCHEDULE II VALUATION AND QUA74
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Allowance for Doubtful Accounts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 66 | $ 81 | $ 74 | |
Charged (Credited) to Income | 62 | 1 | 32 | |
Deductions and Other | (4) | (14) | [1] | (25) |
Balance at End of Period | 124 | 66 | 81 | |
Income Tax Valuation Allowance [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | 2,897 | 2,056 | 1,760 | |
Charged (Credited) to Income | 3,901 | |||
Deductions and Other | $ (1,004) | (841) | [2] | (296) |
Balance at End of Period | $ 2,897 | $ 2,056 | ||
[1] | Accounts written off, net of recoveries. | |||
[2] | Adjustments to offset changes in deferred tax assets. |